[Congressional Record Volume 141, Number 99 (Friday, June 16, 1995)]
[Senate]
[Pages S8570-S8594]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




         TELECOMMUNICATIONS COMPETI- TION AND DEREGULATION ACT

  The text of the bill (S. 652) entitled the ``Telecommunications 
Competition and Deregulation Act,'' as passed by the Senate on June 15, 
1995, is as follows:

                                 S. 652

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

     SECTION 1. SHORT TITLE.

       This Act may be cited as the ``Telecommunications 
     Competition and Deregulation Act of 1995''.

     SEC. 2. TABLE OF CONTENTS.

       The table of contents for this Act is as follows:

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

                   TITLE I--TRANSITION TO COMPETITION

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

            TITLE II--REMOVAL OF RESTRICTIONS TO COMPETITION

                  Subtitle A--Removal of Restrictions

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

       Subtitle B--Termination of Modification of Final Judgment

Sec. 221. Removal of long distance restrictions.
Sec. 222. Removal of manufacturing restrictions.
Sec. 223. Existing activities.
Sec. 224. Enforcement.
Sec. 225. Alarm monitoring services.
Sec. 226. Nonapplicability of Modification of Final Judgment.

                    TITLE III--AN END TO REGULATION

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

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

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

                 TITLE V--PARENTAL CHOICE IN TELEVISION

Sec. 501. Short title.
Sec. 502. Findings.
Sec. 503. Rating code for violence and other objectionable content on 
              television.
Sec. 504. Requirement for manufacture of televisions that block 
              programs.
Sec. 505. Shipping or importing of televisions that block programs.

      TITLE VI--NATIONAL EDUCATION TECHNOLOGY FUNDING CORPORATION

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

                  TITLE VII--MISCELLANEOUS PROVISIONS

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

     SEC. 3. PURPOSE.

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

     SEC. 4. GOALS.

       This Act is intended to establish a national policy 
     framework designed to accelerate rapidly the private sector 
     deployment of advanced telecommunications and information 
     technologies and services to all Americans by opening all 
     telecommunications markets to competition, and to meet the 
     following goals:
       (1) To promote and encourage advanced telecommunications 
     networks, capable of enabling users to originate and receive 
     affordable, high-quality voice, data, image, graphic, and 
     video telecommunications services.
     
[[Page S8571]]

       (2) To improve international competitiveness markedly.
       (3) To spur economic growth, create jobs, and increase 
     productivity.
       (4) To deliver a better quality of life through the 
     preservation and advancement of universal service to allow 
     the more efficient delivery of educational, health care, and 
     other social services.

     SEC. 5. FINDINGS.

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

     SEC. 6. AMENDMENT OF COMMUNICATIONS ACT OF 1934.

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

     SEC. 7. EFFECT ON OTHER LAW.

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

     SEC. 8. DEFINITIONS.

       (a) Terms Used In This Act.--As used in this Act--
       (1) Commission.--The term ``Commission'' means the Federal 
     Communications Commission.
       (2) Modification of final judgment.--The term 
     ``Modification of Final Judgment'' means the decree entered 
     on August 24, 1982, in United States v. Western Electric 
     Civil Action No. 82-0192 (United States District Court, 
     District of Columbia), and includes any judgment or order 
     with respect to such action entered on or after August 24, 
     1982, and before the date of enactment of this Act.
       (3) GTE consent decree.--The term ``GTE Consent Decree'' 
     means the order entered on December 21, 1984, as restated 
     January 11, 1985, in United States v. GTE Corporation, Civil 
     Action No. 83-1298 (United States District Court, District of 
     Columbia), and includes any judgment or order with respect to 
     such action entered on or after January 11, 1985, and before 
     the date of enactment of this Act.
       (4) Integrated telecommunications service provider.--The 
     term ``integrated telecommunications service provider'' means 
     any person engaged in the provision of multiple services, 
     such as voice, data, image, graphics, and video services, 
     which make common use of all or part of the same transmission 
     facilities, switches, signalling, or control devices.
       (b) Terms Used in the Communications Act of 1934.--Section 
     3 (47 U.S.C. 153) is amended by adding at the end thereof the 
     following:
       ``(gg) `Modification of Final Judgment' means the decree 
     entered on August 24, 1982, in United States v. Western 
     Electric Civil Action No. 82-0192 (United States District 
     Court, District of Columbia), and includes any judgment or 
     order with respect to such action entered on or after August 
     24, 1982, and before the date of enactment of the 
     Telecommunications Competition and Deregulation Act of 1995.
       ``(hh) `Bell operating company' means any company listed in 
     appendix A of the Modification of Final Judgment to the 
     extent such company provides telephone exchange service or 
     exchange access service, and includes any successor or assign 
     of any such company, but does not include any affiliate of 
     such company.
       ``(ii) `Affiliate' means a person that (directly or 
     indirectly) owns or controls, is owned or controlled by, or 
     is under common ownership or control with, another person. 
     For purposes of this paragraph, the term `own' means to own 
     an equity interest (or the equivalent thereof) of more than 
     10 percent.
       ``(jj) `Telecommunications Act of 1995' means the 
     Telecommunications Competition and Deregulation Act of 1995.
       ``(kk) `Local exchange carrier' means a provider of 
     telephone exchange service or exchange access service.
       ``(ll) `Telecommunications' means the transmission, between 
     or among points specified by the user, of information of the 
     user's choosing, including voice, data, image, graphics, and 
     video, without change in the form or content of the 
     information, as sent and received, with or without benefit of 
     any closed transmission medium.
       ``(mm) `Telecommunications service' means the offering of 
     telecommunications for a fee directly to the public, or to 
     such classes of users as to be effectively available directly 
     to the public, regardless of the facilities used to transmit 
     the telecommunications service.
       ``(nn) `Telecommunications carrier' means any provider of 
     telecommunications services, except that such term does not 
     include hotels, motels, hospitals, and other aggregators of 
     telecommunications services (as defined in section 226). A 
     telecommunications carrier shall only be treated as a common 
     carrier under this Act to the extent that it is engaged in 
     providing telecommunications services for voice, data, image, 
     graphics, or video that it does not own, control, or select, 
     except that the Commission shall continue to determine 
     whether the provision of fixed and mobile satellite service 
     shall be treated as common carriage.
     
[[Page S8572]]

       ``(oo) `Telecommunications number portability' means the 
     ability of users of telecommunications services to retain, at 
     the same location, existing telecommunications numbers 
     without impairment of quality, reliability, or convenience 
     when switching from one telecommunications carrier to 
     another.
       ``(pp) `Information service' means the offering of services 
     that--
       ``(1) employ computer processing applications that act on 
     the format, content, code, protocol, or similar aspects of 
     the subscriber's transmitted information;
       ``(2) provide the subscriber additional, different, or 
     restructured information; or
       ``(3) involve subscriber interaction with stored 
     information.
       ``(qq) `Cable service' means cable service as defined in 
     section 602.
       ``(rr) `Rural telephone company' means a telecommunications 
     carrier operating entity to the extent that such entity 
     provides telephone exchange service, including access service 
     subject to part 69 of the Commission's rules (47 C.F.R. 69.1 
     et seq.), to--
       ``(1) any service area that does not include either--
       ``(A) any incorporated place of 10,000 inhabitants or more, 
     or any part thereof, based on the most recent population 
     statistics of the Bureau of the Census; or
       ``(B) any territory, incorporated or unincorporated, 
     included in an urbanized area, as defined by the Bureau of 
     the Census as of January 1, 1995; or
       ``(2) fewer than 100,000 access lines within a State.
       ``(ss) `Service area' means a geographic area established 
     by the Commission and the States for the purpose of 
     determining universal service obligations and support 
     mechanisms. In the case of an area served by a rural 
     telephone company, `service area' means such company's `study 
     area' unless and until the Commission and the States, after 
     taking into account recommendations of a Federal-State Joint 
     Board instituted under section 410(c), establish a different 
     definition of service area for such company.
       ``(tt) `LATA' means a local access and transport area as 
     defined in United States v. Western Electric Co., 569 F. 
     Supp. 990 (U. S. District Court, District of Columbia) and 
     subsequent judicial orders relating thereto, except that, 
     with respect to commercial mobile services, the term `LATA' 
     means the geographic areas defined or used by the Commission 
     in issuing licenses for such services: Provided however, That 
     in the case of a Bell operating company cellular affiliate, 
     such geographic area shall be no smaller than the LATA area 
     for such affiliate on the date of enactment of the 
     Telecommunications Act of 1995.''.

                   TITLE I--TRANSITION TO COMPETITION

     SEC. 101. INTERCONNECTION REQUIREMENTS.

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

              ``Part II--Competition in Telecommunications

     ``SEC. 251. INTERCONNECTION.

       ``(a) Duty to Provide Interconnection.--
       ``(1) In general.--A local exchange carrier, or class of 
     local exchange carriers, determined by the Commission to have 
     market power in providing telephone exchange service or 
     exchange access service has a duty under this Act, upon 
     request--
       ``(A) to enter into good faith negotiations with any 
     telecommunications carrier requesting interconnection between 
     the facilities and equipment of the requesting 
     telecommunications carrier and the carrier, or class of 
     carriers, of which the request was made for the purpose of 
     permitting the telecommunications carrier to provide 
     telephone exchange or exchange access service; and
       ``(B) to provide such interconnection, at rates that are 
     reasonable and nondiscriminatory, according to the terms of 
     the agreement and in accordance with the requirements of this 
     section.
       ``(2) Initiation.--A local exchange carrier, or class of 
     carriers, described in paragraph (1) shall commence good 
     faith negotiations to conclude an agreement, whether through 
     negotiation under subsection (c) or arbitration or 
     intervention under subsection (d), within 15 days after 
     receiving a request from any telecommunications carrier 
     seeking to provide telephone exchange or exchange access 
     service. Nothing in this Act shall prohibit multilateral 
     negotiations between or among a local exchange carrier or 
     class of carriers and a telecommunications carrier or class 
     of carriers seeking interconnection under subsection (c) or 
     subsection (d). At the request of any of the parties to a 
     negotiation, a State may participate in the negotiation of 
     any portion of an agreement under subsection (c).
       ``(3) Market power.--For the purpose of determining whether 
     a carrier has market power under paragraph (1), the relevant 
     market shall include all providers of telephone exchange or 
     exchange access services in a local area, regardless of the 
     technology used by any such provider.
       ``(b) Minimum Standards.--An interconnection agreement 
     entered into under this section shall, if requested by a 
     telecommunications carrier requesting interconnection, 
     provide for--
       ``(1) nondiscriminatory access on an unbundled basis to the 
     network functions and services of the local exchange 
     carrier's telecommunications network (including switching 
     software, to the extent defined in implementing regulations 
     by the Commission);
       ``(2) nondiscriminatory access on an unbundled basis to any 
     of the local exchange carrier's telecommunications facilities 
     and information, including databases and signaling, necessary 
     to the transmission and routing of any telephone exchange 
     service or exchange access service and the interoperability 
     of both carriers' networks;
       ``(3) interconnection to the local exchange carrier's 
     telecommunications facilities and services at any technically 
     feasible point within the carrier's network;
       ``(4) interconnection that is at least equal in type, 
     quality, and price (on a per unit basis or otherwise) to that 
     provided by the local exchange carrier to itself or to any 
     subsidiary, affiliate, or any other party to which the 
     carrier provides interconnection;
       ``(5) nondiscriminatory access to the poles, ducts, 
     conduits, and rights-of-way owned or controlled by the local 
     exchange carrier at just and reasonable rates;
       ``(6) the local exchange carrier to take whatever action 
     under its control is necessary, as soon as is technically 
     feasible, to provide telecommunications number portability 
     and local dialing parity in a manner that--
       ``(A) permits consumers to be able to dial the same number 
     of digits when using any telecommunications carrier providing 
     telephone exchange service or exchange access service in the 
     market served by the local exchange carrier;
       ``(B) permits all such carriers to have nondiscriminatory 
     access to telephone numbers, operator services, directory 
     assistance, and directory listing with no unreasonable 
     dialing delays; and
       ``(C) provides for a reasonable allocation of costs among 
     the parties to the agreement;
       ``(7) telecommunications services and network functions of 
     the local exchange carrier to be available to the 
     telecommunications carrier on an unbundled basis without any 
     unreasonable conditions on the resale or sharing of those 
     services or functions, including the origination, transport, 
     and termination of such telecommunications services, other 
     than reasonable conditions required by a State; and for 
     purposes of this paragraph, it is not an unreasonable 
     condition for a State to limit the resale--
       ``(A) of services included in the definition of universal 
     service to a telecommunications carrier who resells that 
     service to a category of customers different from the 
     category of customers being offered that universal service by 
     such carrier if the State orders a carrier to provide the 
     same service to different categories of customers at 
     different prices necessary to promote universal service; or
       ``(B) of subsidized universal service in a manner that 
     allows companies to charge another carrier rates which 
     reflect the actual cost of providing those services to that 
     carrier, exclusive of any universal service support received 
     for providing such services in accordance with section 
     214(d)(5);
       ``(8) reciprocal compensation arrangements for the 
     origination and termination of telecommunications;
       ``(9) reasonable public notice of changes in the 
     information necessary for the transmission and routing of 
     services using that local exchange carrier's facilities or 
     networks, as well as of any other changes that would affect 
     the interoperability of those facilities and networks; and
       ``(10) a schedule of itemized charges and conditions for 
     each service, facility, or function provided under the 
     agreement.
       ``(c) Agreements Arrived at Through Negotiation.--Upon 
     receiving a request for interconnection, a local exchange 
     carrier may meet its interconnection obligations under this 
     section by negotiating and entering into a binding agreement 
     with the telecommunications carrier seeking interconnection 
     without regard to the standards set forth in subsection (b). 
     The agreement shall include a schedule of itemized charges 
     for each service, facility, or function included in the 
     agreement. The agreement, including any interconnection 
     agreement negotiated before the date of enactment of the 
     Telecommunications Act of 1995, shall be submitted to the 
     State under subsection (e).
       ``(d) Agreements Arrived at Through Arbitration or 
     Intervention.--
       ``(1) In general.--Any party negotiating an interconnection 
     agreement under this section may, at any point in the 
     negotiation, ask a State to participate in the negotiation 
     and to arbitrate any differences arising in the course of the 
     negotiation. The refusal of any other party to the 
     negotiation to participate further in the negotiations, to 
     cooperate with the State in carrying out its function as a 
     arbitrator, or to continue to negotiate in good faith in the 
     presence, or with the assistance, of the State shall be 
     considered a failure to negotiate in good faith.
       ``(2) Intervention.--If any issues remain open in a 
     negotiation commenced under this section more than 135 days 
     after the date upon which the local exchange carrier received 
     the request for such negotiation, then the carrier or any 
     other party to the negotiation may petition a State to 
     intervene in the negotiations for purposes of resolving any 
     such remaining open issues. Any such request must be made 
     during the 25-day period that begins 135 days after the 
     carrier receives the request for such negotiation and ends 
     160 days after that date.
       ``(3) Duty of petitioner.-- 
     
[[Page S8573]]

       ``(A) A party that petitions a State under paragraph (2) 
     shall, at the same time as it submits the petition, provide 
     the State all relevant documentation concerning the 
     negotiations necessary to understand--
       ``(i) the unresolved issues;
       ``(ii) the position of each of the parties with respect to 
     those issues; and
       ``(iii) any other issue discussed and resolved by the 
     parties.
       ``(B) A party petitioning a State under paragraph (2) shall 
     provide a copy of the petition and any documentation to the 
     other party not later than the day on which the State 
     receives the petition.
       ``(4) Opportunity to respond.--A party to a negotiation 
     under this section with respect to which the other party has 
     petitioned a State under paragraph (2) may respond to the 
     other party's petition and provide such additional 
     information as it wishes within 25 days after the State 
     receives the petition.
       ``(5) Action by state.--
       ``(A) A State proceeding to consider a petition under this 
     subsection shall be conducted in accordance with the rules 
     promulgated by the Commission under subsection (i). The State 
     shall limit its consideration of any petition under paragraph 
     (2) (and any response thereto) to the issues set forth in the 
     petition and in the response, if any, filed under paragraph 
     (4).
       ``(B) The State may require the petitioning party and the 
     responding party to provide such information as may be 
     necessary for the State to reach a decision on the unresolved 
     issues. If either party refuses or fails unreasonably to 
     respond on a timely basis to any reasonable request from the 
     State, then the State may proceed on the basis of the best 
     information available to it from whatever source derived.
       ``(C) The State shall resolve each issue set forth in the 
     petition and the response, if any, by imposing appropriate 
     conditions upon the parties to the agreement, and shall 
     conduct the review of the agreement (including the issues 
     resolved by the State) not later than 10 months after the 
     date on which the local exchange carrier received the request 
     for interconnection under this section.
       ``(D) In resolving any open issues and imposing conditions 
     upon the parties to the agreement, a State shall ensure that 
     the requirements of this section are met by the solution 
     imposed by the State and are consistent with the Commission's 
     rules defining minimum standards.
       ``(6) Charges.--If the amount charged by a local exchange 
     carrier, or class of local exchange carriers, for an 
     unbundled element of the interconnection provided under 
     subsection (b) is determined by arbitration or intervention 
     under this subsection, then the charge--
       ``(A) shall be
       ``(i) based on the cost (determined without reference to a 
     rate-of-return or other rate-based proceeding) of providing 
     the unbundled element,
       ``(ii) nondiscriminatory, and
       ``(iii) individually priced to the smallest element that is 
     technically feasible and economically reasonable to provide; 
     and
       ``(B) may include a reasonable profit.
       ``(e) Approval by State.--Any interconnection agreement 
     under this section shall be submitted for approval to the 
     State. A State to which an agreement is submitted shall 
     approve or reject the agreement, with written findings as to 
     any deficiencies. The State may only reject--
       ``(1) an agreement under subsection (c) if it finds that 
     the agreement discriminates against a telecommunications 
     carrier not a party to the agreement; and
       ``(2) an agreement under subsection (d) if it finds that--
       ``(B) the agreement does not meet the standards set forth 
     in subsection (b), or
       ``(B) the implementation of the agreement is not in the 
     public interest.

     If the State does not act to approve or reject the agreement 
     within 90 days after receiving the agreement, or 30 days in 
     the case of an agreement negotiated under subsection (c), the 
     agreement shall be deemed approved. No State court shall have 
     jurisdiction to review the action of a State in approving or 
     rejecting an agreement under this section.
       ``(f) Filing Required.--A State shall make a copy of each 
     agreement approved under subsection (e) available for public 
     inspection and copying within 10 days after the agreement is 
     approved. The State may charge a reasonable and 
     nondiscriminatory fee to the parties to the agreement to 
     cover the costs of approving and filing such agreement.
       ``(g) Availability to Other Telecommunications Carriers.--A 
     local exchange carrier shall make available any service, 
     facility, or function provided under an interconnection 
     agreement to which it is a party to any other 
     telecommunications carrier that requests such interconnection 
     upon the same terms and conditions as those provided in the 
     agreement.
       ``(h) Collocation.--A State may require telecommunications 
     carriers to provide for actual collocation of equipment 
     necessary for interconnection at the premises of the carrier 
     at reasonable charges, if the State finds actual collocation 
     to be in the public interest.
       ``(i) Implementation.--
       ``(1) Rules and standards.--The Commission shall promulgate 
     rules to implement the requirements of this section within 6 
     months after the date of enactment of the Telecommunications 
     Act of 1995. In establishing the standards for determining 
     what facilities and information are necessary for purposes of 
     subsection (b)(2), the Commission shall consider, at a 
     minimum, whether--
       ``(A) access to such facilities and information that are 
     proprietary in nature is necessary; and
       ``(B) the failure to provide access to such facilities and 
     information would impair the ability of the 
     telecommunications carrier seeking interconnection to provide 
     the services that it seeks to offer.
       ``(2) Commission to act if state will not act.--If a State, 
     through action or inaction, fails to carry out its 
     responsibility under this section in accordance with the 
     rules prescribed by the Commission under paragraph (1) in any 
     proceeding or other matter under this section, then the 
     Commission shall issue an order preempting the State's 
     jurisdiction of that proceeding or matter within 90 days 
     after being notified (or taking notice) of such failure, and 
     shall assume the responsibility of the State under this 
     section with respect to the proceeding or matter and act for 
     the State.
       ``(3) Waivers and modifications for rural carriers.--The 
     Commission or a State shall, upon petition or on its own 
     initiative, waive or modify the requirements of subsection 
     (b) for a rural telephone company or companies, and may waive 
     or modify the requirements of subsection (b) for local 
     exchange carriers with fewer than 2 percent of the Nation's 
     subscriber lines installed in the aggregate nationwide, to 
     the extent that the Commission or a State determines that 
     such requirements would result in unfair competition, impose 
     a significant adverse economic impact on users of 
     telecommunications services, be technically infeasible, or 
     otherwise not be in the public interest. The Commission or a 
     State shall act upon any petition filed under this paragraph 
     within 180 days of receiving such petition. Pending such 
     action, the Commission or a State may suspend enforcement of 
     the requirement or requirements to which the petition applies 
     with respect to the petitioning carrier or carriers.
       ``(j) State Requirements.--Nothing in this section 
     precludes a State from imposing requirements on a 
     telecommunications carrier for intrastate services that are 
     necessary to further competition in the provision of 
     telephone exchange service or exchange access service, as 
     long as the State's requirements are not inconsistent with 
     the Commission's regulations to implement this section.
       ``(k) Access Charge Rules.--Nothing in this section shall 
     affect the Commission's interexchange-to-local exchange 
     access charge rules for local exchange carriers or 
     interexchange carriers in effect on the date of enactment of 
     the Telecommunications Act of 1995.
       ``(l) Review of Interconnection Standards.--Beginning 3 
     years after the date of enactment of the Telecommunications 
     Act of 1995 and every 3 years thereafter, the Commission 
     shall review the standards and requirements for 
     interconnection established under subsection (b). The 
     Commission shall complete each such review within 180 days 
     and may modify or waive any requirements or standards 
     established under subsection (b) if it determines that the 
     modification or waiver meets the requirements of section 260.
       ``(m) Commercial Mobile Service Providers.--The 
     requirements of this section shall not apply to commercial 
     mobile services provided by a wireline local exchange carrier 
     unless the Commission determines under subsection (a)(3) that 
     such carrier has market power in the provision of commercial 
     mobile service.''.
       (c) Technical Amendments.--
       (1) Title II (47 U.S.C. 201 et seq.) is amended by 
     inserting before section 201 the following:

                    ``Part I--General Provisions''.

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

     SEC. 102. SEPARATE AFFILIATE AND SAFEGUARD REQUIREMENTS.

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

     ``SEC. 252. SEPARATE AFFILIATE; SAFEGUARDS.

       ``(a) Separate Affiliate Required For Competitive 
     Activities.--
       ``(1) In general.--A Bell operating company (including any 
     affiliate) which is a local exchange carrier that is subject 
     to the requirements of section 251(a) may not provide any 
     service described in paragraph (2) unless it provides that 
     service through one or more affiliates that--
       ``(A) are separate from any operating company entity that 
     is subject to the requirements of section 251(a); and
       ``(B) meet the requirements of subsection (b).
       ``(2) Services for which a separate affiliate is 
     required.--The services for which a separate affiliate is 
     required by paragraph (1) are:
       ``(A) Information services, including cable services and 
     alarm monitoring services, other than any information service 
     a Bell operating company was authorized to provide before 
     July 24, 1991.
       ``(B) Manufacturing services.
       ``(C) InterLATA services other than--
       ``(i) incidental services, not including information 
     services;
       ``(ii) out-of-region services; or
       ``(iii) services authorized under an order entered by the 
     United States District Court 

[[Page S8574]]
     for the District of Columbia pursuant to the Modification of Final 
     Judgment before the date of enactment of the 
     Telecommunications Act of 1995.
       ``(b) Structural and Transactional Requirements.--The 
     separate affiliate required by this section--
       ``(1) shall maintain books, records, and accounts in the 
     manner prescribed by the Commission which shall be separate 
     from the books, records, and accounts maintained by the Bell 
     operating company of which it is an affiliate;
       ``(2) shall have separate officers, directors, and 
     employees from the Bell operating company of which it is an 
     affiliate;
       ``(3) may not obtain credit under any arrangement that 
     would permit a creditor, upon default, to have recourse to 
     the assets of the Bell operating company; and
       ``(4) shall conduct all transactions with the Bell 
     operating company of which it is an affiliate on an arm's 
     length basis with any such transactions reduced to writing 
     and available for public inspection.
       ``(c) Nondiscrimination Safeguards.--In its dealings with 
     its affiliate described in subsection (a) a Bell operating 
     company--
       ``(1) may not discriminate between that company or 
     affiliate and any other entity in the provision or 
     procurement of goods, services, facilities, and information, 
     or in the establishment of standards;
       ``(2) may not provide any goods, services, facilities, or 
     information to such company or affiliate unless the goods, 
     services, facilities, or information are made available to 
     other persons on reasonable and nondiscriminatory terms and 
     conditions, unbundled to the smallest element that is 
     technically feasible and economically reasonable to provide, 
     and at just and reasonable rates that are not higher on a 
     per-unit basis than those charged for such services to any 
     affiliate of such company; and
       ``(3) shall account for all transactions with an affiliate 
     described in subsection (a) in accordance with generally 
     accepted accounting principles.
       ``(d) Biennial Audit.--
       ``(1) General requirement.--A company required to operate a 
     separate affiliate under this section shall obtain and pay 
     for a joint Federal/State audit every 2 years conducted by an 
     independent auditor selected by the Commission, and working 
     at the direction of, the Commission and the State commission 
     of each State in which such company provides service, to 
     determine whether such company has complied with this section 
     and the regulations promulgated under this section, and 
     particularly whether such company has complied with the 
     separate accounting requirements under subsection (b).
       ``(2) Results submitted to commission; state commissions.--
     The auditor described in paragraph (1) shall submit the 
     results of the audit to the Commission and to the State 
     commission of each State in which the company audited 
     provides service, which shall make such results available for 
     public inspection. Any party may submit comments on the final 
     audit report.
       ``(3) Access to documents.--For purposes of conducting 
     audits and reviews under this subsection--
       ``(A) the independent auditor, the Commission, and the 
     State commission shall have access to the financial accounts 
     and records of each company and of its affiliates necessary 
     to verify transactions conducted with that company that are 
     relevant to the specific activities permitted under this 
     section and that are necessary for the regulation of rates;
       ``(B) the Commission and the State commission shall have 
     access to the working papers and supporting materials of any 
     auditor who performs an audit under this section; and
       ``(C) the State commission shall implement appropriate 
     procedures to ensure the protection of any proprietary 
     information submitted to it under this section.
       ``(e) Joint Marketing.--
       ``(1) A Bell operating company affiliate required by this 
     section may not market or sell telephone exchange services 
     provided by the Bell operating company unless that company 
     permits other entities offering the same or similar service 
     to market and sell its telephone exchange services.
       ``(2) A Bell operating company may not market or sell any 
     service provided by an affiliate required by this section 
     until that company has been authorized to provide interLATA 
     services under section 255.
       ``(3) The joint marketing and sale of services permitted 
     under this subsection shall not be considered to violate the 
     nondiscrimination provisions of subsection (c).
       ``(f) Additional Requirements for Provision of InterLATA 
     Services.--A Bell operating company--
       ``(1) shall fulfill any requests from an unaffiliated 
     entity for exchange access service within a period no longer 
     than that in which it provides such exchange access service 
     to itself or to its affiliates;
       ``(2) shall fulfill any such requests with exchange access 
     service of a quality that meets or exceeds the quality of 
     exchange access service provided by the Bell operating 
     company to itself or its affiliate;
       ``(3) shall provide exchange access service to all carriers 
     at rates that are just, reasonable, not unreasonably 
     discriminatory, and based on costs;
       ``(4) shall not provide any facilities, services, or 
     information concerning its provision of exchange access 
     service to the affiliate described in subsection (a) unless 
     such facilities, services, or information are made available 
     to other providers of interLATA services in that market on 
     the same terms and conditions;
       ``(5) shall charge the affiliate described in subsection 
     (a), and impute to itself or any intraLATA interexchange 
     affiliate, the same rates for access to its telephone 
     exchange service and exchange access service that it charges 
     unaffiliated interexchange carriers for such service; and
       ``(6) may provide any interLATA or intraLATA facilities or 
     services to its interLATA affiliate if such services or 
     facilities are made available to all carriers at the same 
     rates and on the same terms and conditions so long as the 
     costs are appropriately allocated.
       ``(g) Proprietary Information.--
       ``(1) In general.--In complying with the requirements of 
     this section, each Bell operating company and any affiliate 
     of such company has a duty to protect the confidentiality of 
     propriety information relating to other common carriers, to 
     equipment manufacturers, and to customers. A Bell operating 
     company may not share customer proprietary information in 
     aggregate form with its affiliates unless such aggregate 
     information is available to other carriers or persons under 
     the same terms and conditions. Individually identifiable 
     customer proprietary information and other proprietary 
     information may be--
       ``(A) shared with any affiliated entity required by this 
     section or with any unaffiliated entity only with the consent 
     of the person to which such information relates or from which 
     it was obtained (including other carriers); or
       ``(B) disclosed to appropriate authorities pursuant to 
     court order.
       ``(2) Exceptions.--Paragraph (1) does not limit the 
     disclosure of individually identifiable customer proprietary 
     information by each Bell operating company as necessary--
       ``(A) to initiate, render, bill, and collect for telephone 
     exchange service, interexchange service, or 
     telecommunications service requested by a customer; or
       ``(B) to protect the rights or property of the carrier, or 
     to protect users of any of those services and other carriers 
     from fraudulent, abusive, or unlawful use of, or subscription 
     to, any such service.
       ``(3) Subscriber list information.--For purposes of this 
     subsection, the term `customer proprietary information' does 
     not include subscriber list information.
       ``(h) Commission May Grant Exceptions.--The Commission may 
     grant an exception from compliance with any requirement of 
     this section upon a showing that the exception is necessary 
     for the public interest, convenience, and necessity.
       ``(i) Application to Utility Companies.--
       ``(1) Registered public utility holding company.--A 
     registered company may provide telecommunications services 
     only through a separate subsidiary company that is not a 
     public utility company.
       ``(2) Other utility companies.--Each State shall determine 
     whether a holding company subject to its jurisdiction--
       ``(A) that is not a registered holding company, and
       ``(B) that provides telecommunications service,
     is required to provide that service through a separate 
     subsidiary company.
       ``(3) Savings provision.--Nothing in this subsection or the 
     Telecommunications Act of 1995 prohibits a public utility 
     company from engaging in any activity in which it is legally 
     engaged on the date of enactment of the Telecommunications 
     Act of 1995; provided it complies with the terms of any 
     applicable authorizations.
       ``(4) Definitions.--For purposes of this subsection, the 
     terms `public utility company', `associate company', `holding 
     company', `subsidiary company', `registered holding company', 
     and `State commission' have the same meaning as they have in 
     section 2 of the Public Utility Holding Company Act of 
     1935.''.
       (b) Implementation.--The Commission shall promulgate any 
     regulations necessary to implement section 252 of the 
     Communications Act of 1934 (as added by subsection (a)) not 
     later than one year after the date of enactment of this Act. 
     Any separate affiliate established or designated for purposes 
     of section 252(a) of the Communications Act of 1934 before 
     the regulations have been issued in final form shall be 
     restructured or otherwise modified, if necessary, to meet the 
     requirements of those regulations.
       (c) Effective Date.--The amendment made by subsection (a) 
     shall take effect on the date of enactment of this Act.

     SEC. 103. UNIVERSAL SERVICE.

       (a) Findings.--The Congress finds that--
       (1) the existing system of universal service has evolved 
     since 1930 through an ongoing dialogue between industry, 
     various Federal-State Joint Boards, the Commission, and the 
     courts;
       (2) this system has been predicated on rates established by 
     the Commission and the States that require implicit cost 
     shifting by monopoly providers of telephone exchange service 
     through both local rates and access charges to interexchange 
     carriers;
       (3) the advent of competition for the provision of 
     telephone exchange service has led to industry requests that 
     the existing system be modified to make support for universal 
     service explicit and to require that all telecommunications 
     carriers participate in the modified system on a 
     competitively neutral basis; and 
     
[[Page S8575]]

       (4) modification of the existing system is necessary to 
     promote competition in the provision of telecommunications 
     services and to allow competition and new technologies to 
     reduce the need for universal service support mechanisms.
       (b) Federal-State Joint Board on Universal Service.--
       (1) Within one month after the date of enactment of this 
     Act, the Commission shall institute and refer to a Federal-
     State Joint Board under section 410(c) of the Communications 
     Act of 1934 a proceeding to recommend rules regarding the 
     implementation of section 253 of that Act, including the 
     definition of universal service. The Joint Board shall, after 
     notice and public comment, make its recommendations to the 
     Commission no later than 9 months after the date of enactment 
     of this Act.
       (2) The Commission may periodically, but no less than once 
     every 4 years, institute and refer to the Joint Board a 
     proceeding to review the implementation of section 253 of 
     that Act and to make new recommendations, as necessary, with 
     respect to any modifications or additions that may be needed. 
     As part of any such proceeding the Joint Board shall review 
     the definition of, and adequacy of support for, universal 
     service and shall evaluate the extent to which universal 
     service has been protected and advanced.
       (c) Commission Action.--The Commission shall initiate a 
     single proceeding to implement recommendations from the 
     initial Joint Board required by subsection (a) and shall 
     complete such proceeding within 1 year after the date of 
     enactment of this Act. Thereafter, the Commission shall 
     complete any proceeding to implement recommendations from any 
     further Joint Board required under subsection (b) within one 
     year after receiving such recommendations.
       (d) Separations Rules.--Nothing in the amendments made by 
     this Act to the Communications Act of 1934 shall affect the 
     Commission's separations rules for local exchange carriers or 
     interexchange carriers in effect on the date of enactment of 
     this Act.
       (e) Amendment of Communications Act.--Part II of title II 
     (47 U.S.C. 251 et seq.), as added by this Act, is amended by 
     inserting after section 252 the following new section:

     ``SEC. 253. UNIVERSAL SERVICE.

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

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

       ``(a) The Commission shall prohibit any telecommunications 
     carrier from excluding from any of such carrier's services 
     any high-cost area, or any area on the basis of the rural 
     location or the income of the residents of such area: 
     Provided, That a carrier may exclude an area in which the 
     carrier can demonstrate that--
       ``(1) there will be insufficient consumer demand for the 
     carrier to earn some return over the long term on the capital 
     invested to provide such service to such area, and--
       ``(2) providing a service to such area will be less 
     profitable for the carrier than providing the service in 
     areas to which the carrier is already providing or has 
     proposed to provide the service.
       ``(b) The Commission shall provide for public comment on 
     the adequacy of the carrier's proposed service area on the 
     basis of the requirements of this section.''.
     
[[Page S8576]]


     SEC. 104. ESSENTIAL TELECOMMUNICATIONS CARRIERS.

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

     SEC. 105. FOREIGN INVESTMENT AND OWNERSHIP REFORM.

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

     SEC. 106. INFRASTRUCTURE SHARING.

       (a) Regulations Required.--The Commission shall prescribe, 
     within one year after 

[[Page S8577]]
     the date of enactment of this Act, regulations that require local 
     exchange carriers that were subject to Part 69 of the 
     Commission's rules on or before that date to make available 
     to any qualifying carrier such public switched network 
     infrastructure, technology, information, and 
     telecommunications facilities and functions as may be 
     requested by such qualifying carrier for the purpose of 
     enabling such qualifying carrier to provide 
     telecommunications services, or to provide access to 
     information services, in the service area in which such 
     qualifying carrier has requested and obtained designation as 
     an essential telecommunications carrier under section 214(d) 
     and provides universal service by means of its own 
     facilities.
       (b) Terms and Conditions of Regulations.--The regulations 
     prescribed by the Commission pursuant to this section shall--
       (1) not require a local exchange carrier to which this 
     section applies to take any action that is economically 
     unreasonable or that is contrary to the public interest;
       (2) permit, but shall not require, the joint ownership or 
     operation of public switched network infrastructure and 
     services by or among such local exchange carrier and a 
     qualifying carrier;
       (3) ensure that such local exchange carrier will not be 
     treated by the Commission or any State as a common carrier 
     for hire or as offering common carrier services with respect 
     to any infrastructure, technology, information, facilities, 
     or functions made available to a qualifying carrier in 
     accordance with regulations issued pursuant to this section;
       (4) ensure that such local exchange carrier makes such 
     infrastructure, technology, information, facilities, or 
     functions available to a qualifying carrier on just and 
     reasonable terms and conditions that permit such qualifying 
     carrier to fully benefit from the economies of scale and 
     scope of such local exchange carrier, as determined in 
     accordance with guidelines prescribed by the Commission in 
     regulations issued pursuant to this section;
       (5) establish conditions that promote cooperation between 
     local exchange carriers to which this section applies and 
     qualifying carriers;
       (6) not require a local exchange carrier to which this 
     section applies to engage in any infrastructure sharing 
     agreement for any services or access which are to be provided 
     or offered to consumers by the qualifying carrier in such 
     local exchange carrier's telephone exchange area; and
       (7) require that such local exchange carrier file with the 
     Commission or State for public inspection, any tariffs, 
     contracts, or other arrangements showing the rates, terms, 
     and conditions under which such carrier is making available 
     public switched network infrastructure and functions under 
     this section.
       (c) Information Concerning Deployment of New Services and 
     Equipment.--A local exchange carrier to which this section 
     applies that has entered into an infrastructure sharing 
     agreement under this section shall provide to each party to 
     such agreement timely information on the planned deployment 
     of telecommunications services and equipment, including any 
     software or upgrades of software integral to the use or 
     operation of such telecommunications equipment.
       (d) Definitions.--For purposes of this section--
       (1) Qualifying carrier.--The term ``qualifying carrier'' 
     means a telecommunications carrier that--
       (A) lacks economies of scale or scope, as determined in 
     accordance with regulations prescribed by the Commission 
     pursuant to this section; and
       (B) is a common carrier which offers telephone exchange 
     service, exchange access service, and any other service that 
     is included in universal service, to all consumers without 
     preference throughout the service area for which such carrier 
     has been designated as an essential telecommunications 
     carrier under section 214(d) of the Communications Act of 
     1934.
       (2) Other terms.--Any term used in this section that is 
     defined in the Communications Act of 1934 has the same 
     meaning as it has in that Act.

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

       (a) In General.--To promote nondiscriminatory access to 
     telecommunications networks by the broadest number of users 
     and vendors of communications products and services through--
       (1) coordinated telecommunications network planning and 
     design by common carriers and other providers of 
     telecommunications services, and
       (2) interconnection of telecommunications networks, and of 
     devices with such networks, to ensure the ability of users 
     and information providers to seamlessly and transparently 
     transmit and receive information between and across 
     telecommunications networks,

     the Commission may participate, in a manner consistent with 
     its authority and practice prior to the date of enactment of 
     this Act, in the development by appropriate voluntary 
     industry standards-setting organizations to promote 
     telecommunications network-level interoperability.
       (b) Definition of telecommunications network-level 
     interoperability.--As used in this section, the term 
     ``telecommunications network-level interoperability'' means 
     the ability of 2 or more telecommunications networks to 
     communicate and interact in concert with each other to 
     exchange information without degeneration.
       (c) Commission's Authority Not Limited.--Nothing in this 
     section shall be construed as limiting the existing authority 
     of the Commission.

            TITLE II--REMOVAL OF RESTRICTIONS TO COMPETITION

                  Subtitle A--Removal of Restrictions

     SEC. 201. REMOVAL OF ENTRY BARRIERS.

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

     ``SEC. 254. REMOVAL OF BARRIERS TO ENTRY.

       ``(a) In General.--No State or local statute or regulation, 
     or other State or local legal requirement, may prohibit or 
     have the effect of prohibiting the ability of any entity to 
     provide any interstate or intrastate telecommunications 
     services.
       ``(b) State Regulatory Authority.--Nothing in this section 
     shall affect the ability of a State to impose, on a 
     competitively neutral basis and consistent with section 253, 
     requirements necessary to preserve and advance universal 
     service, protect the public safety and welfare, ensure the 
     continued quality of telecommunications services, and 
     safeguard the rights of consumers.
       ``(c) State and Local Government Authority.--Nothing in 
     this section affects the authority of a State or local 
     government to manage the public rights-of-way or to require 
     fair and reasonable compensation from telecommunications 
     providers, on a competitively neutral and nondiscriminatory 
     basis, for use of public rights-of-way on a nondiscriminatory 
     basis, if the compensation required is publicly disclosed by 
     such government.
       ``(d) Preemption.--If, after notice and an opportunity for 
     public comment, the Commission determines that a State or 
     local government has permitted or imposed any statute, 
     regulation, or legal requirement that violates subsection (a) 
     or (b), the Commission shall preempt the enforcement of such 
     statute, regulation, or legal requirement to the extent 
     necessary to correct such violation or inconsistency.
       ``(e) Commercial mobile services providers.--Nothing in 
     this section shall affect the application of section 
     332(c)(3) to commercial mobile services providers.''.
       (b) Provision of Telecommunications Services by a Cable 
     Operator.--
       (1) Jurisdiction of franchising authority.--Section 621(b) 
     (47 U.S.C. 541(b)) is amended by adding at the end thereof 
     the following new paragraph:
       ``(3)(A) To the extent that a cable operator or affiliate 
     thereof is engaged in the provision of telecommunications 
     services--
       ``(i) such cable operator or affiliate shall not be 
     required to obtain a franchise under this title for the 
     provision of telecommunications services; and
       ``(ii) the provisions of this title shall not apply to such 
     cable operator or affiliate for the provision of 
     telecommunications services.
       ``(B) A franchising authority may not order a cable 
     operator or affiliate thereof to discontinue the provision of 
     a telecommunications service.
       ``(C) A franchising authority may not require a cable 
     operator to provide any telecommunications service or 
     facilities as a condition of the initial grant of a 
     franchise, franchise renewal, or transfer of a franchise.
       ``(D) Nothing in this paragraph affects existing Federal or 
     State authority with respect to telecommunications 
     services.''.
       (2) Franchise fees.--Section 622(b) (47 U.S.C. 542(b)) is 
     amended by inserting ``to provide cable services'' 
     immediately before the period at the end of the first 
     sentence.
       (c) State and Local Tax Laws.--Except as provided in 
     section 202, nothing in this Act (or in the Communications 
     Act of 1934 as amended by this Act) shall be construed to 
     modify, impair, or supersede, or authorize the modification, 
     impairment, or supersession of, any State or local law 
     pertaining to taxation that is consistent with the 
     requirements of the Constitution of the United States, this 
     Act, the Communications Act of 1934, or any other applicable 
     Federal law.
       (d) Effective Date.--The amendments made by this section 
     take effect on the date of enactment of this Act.

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

       (a) In General.--Section 613(b) (47 U.S.C. 533(b)) is 
     amended to read as follows:
       ``(b) Video Programming and Cable Services.--
       ``(1) Distinction between video platform and cable 
     service.--To the extent that any telecommunications carrier 
     carries video programming provided by others, or provides 
     video programming that it owns, controls, or selects directly 
     to subscribers, through a common carrier video platform, 
     neither the telecommunications carrier nor any video 
     programming provider making use of such platform shall be 
     deemed to be a cable operator providing cable service. To the 
     extent that any telecommunications carrier provides video 
     programming directly to subscribers through a cable system, 
     the carrier shall be deemed to be a cable operator providing 
     cable service.
       ``(2) Bell operating company activities.--
     
[[Page S8578]]

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

[[Page S8579]]
     seek any other remedy available under the law.
       (e) Effective Dates.--The amendment made by subsection (a) 
     takes effect on the date of enactment of this Act. The 
     amendment made by subsection (b) takes effect 1 year after 
     that date.

     SEC. 203. CABLE ACT REFORM.

       (a) Change in Definition of Cable System.--Section 602(7) 
     (47 U.S.C. 522(7)) is amended by striking out ``(B) a 
     facility that serves only subscribers in 1 or more multiple 
     unit dwellings under common ownership, control, or 
     management, unless such facility or facilities uses any 
     public right-of-way;'' and inserting ``(B) a facility that 
     serves subscribers without using any public right-of-way;''.
       (b) Rate Deregulation.--
       (1) Section 623(c) (47 U.S.C. 543(c)) is amended--
       (A) by striking ``subscriber,'' and the comma after 
     ``authority'' in paragraph (1)(B);
       (B) by striking paragraph (2) and inserting the following:
       ``(2) Standard for unreasonable rates.--The Commission may 
     only consider a rate for cable programming services to be 
     unreasonable if it substantially exceeds the national average 
     rate for comparable cable programming services provided by 
     cable systems other than small cable systems, determined on a 
     per-channel basis as of June 1, 1995, and redetermined, and 
     adjusted if necessary, every 2 years thereafter.''.
       (2) Section 623(l)(1) (47 U.S.C. 543(l)(1)) is amended--
       (A) by striking ``or'' at the end of subparagraph (B);
       (B) by striking the period at the end of subparagraph (C) 
     and inserting a semicolon and ``or''; and
       (C) by adding at the end the following:
       ``(D) a local exchange carrier offers video programming 
     services directly to subscribers, either over a common 
     carrier video platform or as a cable operator, in the 
     franchise area of an unaffiliated cable operator which is 
     providing cable service in that franchise area, but only if 
     the video programming services offered by the carrier in that 
     area are comparable to the video programming services 
     provided by the unaffiliated cable operator in that area.''.
       (c) Greater Deregulation for Smaller Cable Companies.--
     Section 623 (47 U.S.C. 543) is amended by adding at the end 
     thereof the following:
       ``(m) Special Rules for Small Companies.--
       ``(1) In general.--Subsection (a), (b), or (c) does not 
     apply to a small cable operator with respect to--
       ``(A) cable programming services, or
       ``(B) a basic service tier that was the only service tier 
     subject to regulation as of December 31, 1994,

     in any franchise area in which that operator serves 35,000 or 
     fewer subscribers.
       ``(2) Definition of small cable operator.--For purposes of 
     this subsection, the term `small cable operator' means a 
     cable operator that, directly or through an affiliate, serves 
     in the aggregate fewer than 1 percent of all subscribers in 
     the United States and is not affiliated with any entity or 
     entities whose gross annual revenues in the aggregate exceed 
     $250,000,000.''.
       (d) Program Access.--Section 628 (47 U.S.C. 628) is amended 
     by adding at the end the following:
       ``(j) Common Carriers.--Any provision that applies to a 
     cable operator under this section shall apply to a 
     telecommunications carrier or its affiliate that provides 
     video programming by any means directly to subscribers. Any 
     such provision that applies to a satellite cable programming 
     vendor in which a cable operator has an attributable interest 
     shall apply to any satellite cable programming vendor in 
     which such common carrier has an attributable interest.''.
       (e) Expedited Decision-Making for Market Determinations 
     Under Section 614.--
       (1) In general.--Section 614(h)(1)(C)(iv) (47 U.S.C. 
     614(h)(1)(C)(iv)) is amended to read as follows:
       ``(iv) Within 120 days after the date on which a request is 
     filed under this subparagraph, the Commission shall grant or 
     deny the request.''.
       (2) Application to pending requests.--The amendment made by 
     paragraph (1) shall apply to--
       (A) any request pending under section 614(h)(1)(C) of the 
     Communications Act of 1934 (47 U.S.C. 614(h)(1)(C)) on the 
     date of enactment of this Act; and
       (B) any request filed under that section after that date.
       (f) Effective Date.--The amendments made by this section 
     take effect on the date of enactment of this Act.

     SEC. 204. POLE ATTACHMENTS.

       Section 224 (47 U.S.C. 224) is amended--
       (1) by inserting the following after subsection (a)(4):
       ``(5) The term `telecommunications carrier' shall have the 
     meaning given such term in subsection 3(nn) of this Act, 
     except that, for purposes of this section, the term shall not 
     include any person classified by the Commission as a dominant 
     provider of telecommunications services as of January 1, 
     1995.'';
       (2) by inserting after ``conditions'' in subsection (c)(1) 
     a comma and the following: ``or access to poles, ducts, 
     conduits, and rights-of-way as provided in subsection (f),'';
       (3) by inserting after subsection (d)(2) the following:
       ``(3) This subsection shall apply to the rate for any pole 
     attachment used by a cable television system solely to 
     provide cable service. Until the effective date of the 
     regulations required under subsection (e), this subsection 
     shall also apply to the pole attachment rates for cable 
     television systems (or for any telecommunications carrier 
     that was not a party to any pole attachment agreement prior 
     to the date of enactment of the Telecommunications Act of 
     1995) to provide any telecommunications service or any other 
     service subject to the jurisdiction of the Commission.''; and
       (4) by adding at the end thereof the following:
       ``(e)(1) The Commission shall, no later than 2 years after 
     the date of enactment of the Telecommunications Act of 1995, 
     prescribe regulations in accordance with this subsection to 
     govern the charges for pole attachments by telecommunications 
     carriers. Such regulations shall ensure that utilities charge 
     just and reasonable and non-discriminatory rates for pole 
     attachments.
       ``(2) A utility shall apportion the cost of providing space 
     on a pole, duct, conduit, or right-of-way other than the 
     usable space among entities so that such apportionment equals 
     the sum of--
       ``(A) two-thirds of the costs of providing space other than 
     the usable space that would be allocated to such entity under 
     an equal apportionment of such costs among all attachments, 
     plus
       ``(B) the percentage of usable space required by each such 
     entity multiplied by the costs of space other than the usable 
     space;

     but in no event shall such proportion exceed the amount that 
     would be allocated to such entity under an equal 
     apportionment of such costs among all attachments.
       ``(3) A utility shall apportion the cost of providing 
     usable space among all entities according to the percentage 
     of usable space required for each entity. Costs shall be 
     apportioned between the usable space and the space on a pole, 
     duct, conduit, or right-of-way other than the usable space on 
     a proportionate basis.
       ``(4) The regulations required under paragraph (1) shall 
     become effective 5 years after the date of enactment of the 
     Telecommunications Act of 1995. Any increase in the rates for 
     pole attachments that result from the adoption of the 
     regulations required by this subsection shall be phased in 
     equal annual increments over a period of 5 years beginning on 
     the effective date of such regulations.
       ``(f)(1) A utility shall provide a cable television system 
     or any telecommunications carrier with nondiscriminatory 
     access to any pole, duct, conduit, or right-of-way owned or 
     controlled by it.
       ``(2) Notwithstanding paragraph (1), a utility providing 
     electric service may deny a cable television system or 
     telecommunications carrier access to its poles, ducts, 
     conduits, or rights-of-way, on a non-discriminatory basis 
     where there is insufficient capacity and for reasons of 
     safety, reliability, and generally applicable engineering 
     purposes.
       ``(g) A utility that engages in the provision of 
     telecommunications services shall impute to its costs of 
     providing such services (and charge any affiliate, 
     subsidiary, or associate company engaged in the provision of 
     such services) an amount equal to the pole attachment rate 
     for which such company would be liable under this section.''.

     SEC. 205. ENTRY BY UTILITY COMPANIES.

       (a) In General.--
       (1) Authorized activities of utilities.--Notwithstanding 
     any other provision of law to the contrary (including the 
     Public Utility Holding Company Act of 1935 (15 U.S.C. 79a et 
     seq.)), an electric, gas, water, or steam utility, and any 
     subsidiary company, affiliate, or associate company of such a 
     utility, other than a public utility company that is an 
     associate company of a registered holding company, may 
     engage, directly or indirectly, in any activity whatsoever, 
     wherever located, necessary or appropriate to the provision 
     of--
       (A) telecommunications services,
       (B) information services,
       (C) other services or products subject to the jurisdiction 
     of the Federal Communications Commission under the 
     Communications Act of 1934 (47 U.S.C. 151 et seq.), or
       (D) products or services that are related or incidental to 
     a product or service described in subparagraph (A), (B), or 
     (C).
       (2) Removal of sec jurisdiction.--The Securities and 
     Exchange Commission has no jurisdiction under the Public 
     Utility Holding Company Act of 1935 (15 U.S.C. 79a et seq.) 
     over a holding company, or a subsidiary company, affiliate, 
     or associate company of a holding company, to grant any 
     authorization to enforce any requirement with respect to, or 
     approve or otherwise review, any activity described in 
     paragraph (1), including financing, investing in, acquiring, 
     or maintaining any interest in, or entering into affiliate 
     transactions or contracts, and any authority over audits or 
     access to books and records.
       (3) Applicability of Telecommunications Regulation.--
     Nothing in this section shall affect the authority of the 
     Federal Communications Commission under the Communications 
     Act of 1934, or the authority of State commissions under 
     State laws concerning the provision of telecommunications 
     services, to regulate the activities of an associate company 
     engaged in activities described in paragraph (1).
       (4) Commission rules.--The Commission shall consider and 
     adopt, as necessary, rules 

[[Page S8580]]
     to protect the customers of a public utility company that is a 
     subsidiary company of a registered holding company against 
     potential detriment from the telecommunications activities of 
     any other subsidiary of such registered holding company.
       (b) Prohibition of Cross-Subsidization.--Nothing in the 
     Public Utility Holding Company Act of 1935 shall preclude the 
     Federal Energy Regulatory Commission or a State commission 
     from exercising its jurisdiction under otherwise applicable 
     law to determine whether a public utility company may recover 
     in rates the costs of any activity described in subsection 
     (a)(1) which is performed by an associate company regardless 
     of whether such costs are incurred through the direct or 
     indirect purchase of goods and services from such associate 
     company.
       (c) Assumption of Liabilities.--Any public utility company 
     that is an associate company of a registered holding company 
     and that is subject to the jurisdiction of a State commission 
     with respect to its retail electric or gas rates shall not 
     issue any security for the purpose of financing the 
     acquisition, ownership, or operation of an associate company 
     engaged in activities described in subsection (a)(1) without 
     the prior approval of the State commission. Any public 
     utility company that is an associate company of a registered 
     holding company and that is subject to the jurisdiction of a 
     State commission with respect to its retail electric or gas 
     rates shall not assume any obligation or liability as 
     guarantor, endorser, surety, or otherwise by the public 
     utility in respect of any security of an associate company 
     engaged in activities described in subsection (a)(1) without 
     the prior approval of the State commission.
       (d) Pledging or Mortgaging Utility Assets.--Any public 
     utility company that is an associate company of a registered 
     holding company and that is subject to the jurisdiction of a 
     State commission with respect to its retail electric or gas 
     rates shall not pledge, mortgage, or otherwise use as 
     collateral any utility assets of the public utility or 
     utility assets of any subsidiary company thereof for the 
     benefit of an associate company engaged in activities 
     described in subsection (a)(1) without the prior approval of 
     the State commission.
       (e) Books and Records.--An associate company engaged in 
     activities described in subsection (a)(1) which is an 
     associate company of a registered holding company shall 
     maintain books, records, and accounts separate from the 
     registered holding company which identify all transactions 
     with the registered holding company and its other associate 
     companies, and provide access to books, records, and accounts 
     to State commissions and the Federal Energy Regulatory 
     Commission under the same terms of access, disclosure, and 
     procedures as provided in section 201(g) of the Federal Power 
     Act.
       (f) Independent Audit Authority for State Commissions.--
       (1) State may order audit.--Any State commission with 
     jurisdiction over a public utility company that--
       (A) is an associate company of a registered holding 
     company, and
       (B) transacts business, directly or indirectly, with a 
     subsidiary company, affiliate, or associate company of that 
     holding company engaged in any activity described in 
     subsection (a)(1),

     may order an independent audit to be performed, no more 
     frequently than on an annual basis, of all matters deemed 
     relevant by the selected auditor that reasonably relate to 
     retail rates: Provided, That such matters relate, directly or 
     indirectly, to transactions or transfers between the public 
     utility company subject to its jurisdiction and the 
     subsidiary company, affiliate, or associate company engaged 
     in that activity.
       (2) Selection of firm to conduct audit.--
       (A) If a State commission orders an audit in accordance 
     with paragraph (1), the public utility company and the State 
     commission shall jointly select within 60 days a firm to 
     perform the audit. The firm selected to perform the audit 
     shall possess demonstrated qualifications relating to:
       (i) competency, including adequate technical training and 
     professional proficiency in each discipline necessary to 
     carry out the audit, and
       (ii) independence and objectivity, including that the firm 
     be free from personal or external impairments to 
     independence, and should assume an independent position with 
     the State commission and auditee, making certain that the 
     audit is based upon an impartial consideration of all 
     pertinent facts and responsible opinions.
       (B) The public utility company and the company engaged in 
     activities under subsection (a)(1) shall cooperate fully with 
     all reasonable requests necessary to perform the audit and 
     the public utility company shall bear all costs of having the 
     audit performed.
       (3) Availability of auditor's report.--The auditor's report 
     shall be provided to the State commission within 6 months 
     after the selection of the auditor, and provided to the 
     public utility company 60 days thereafter.
       (g) Required Notices.--
       (1) Affiliate contracts.--A State commission may order any 
     public utility company that is an associate company of a 
     registered holding company and that is subject to the 
     jurisdiction of the State commission to provide quarterly 
     reports listing any contracts, leases, transfers, or other 
     transactions with an associate company engaged in activities 
     described in subsection (a)(1).
       (2) Acquisition of an interest in associate companies.--
     Within 10 days after the acquisition by a registered holding 
     company of an interest in an associate company that will 
     engage in activities described in subsection (a)(1), any 
     public utility company that is an associate company of such 
     company shall notify each State commission having 
     jurisdiction over the retail rates of such public utility 
     company of such acquisition. In the notice an officer on 
     behalf of the public utility company shall attest that, based 
     on then current information, such acquisition and related 
     financing will not materially impair the ability of such 
     public utility company to meet its public service 
     responsibility, including its ability to raise necessary 
     capital.
       (h) Definitions.--Any term used in this section that is 
     defined in the Public Utility Holding Company Act of 1935 (15 
     U.S.C. 79a et seq.) has the same meaning as it has in that 
     Act. The terms ``telecommunications service'' and 
     ``information service'' shall have the same meanings as those 
     terms have in the Communications Act of 1934.
       (i) Implementation.--Not later than 1 year after the date 
     of enactment of this Act, the Federal Communications 
     Commission shall promulgate such regulations as may be 
     necessary to implement this section.
       (j) Effective Date.--This section takes effect on the date 
     of enactment of this Act.

     SEC. 206. BROADCAST REFORM.

       (a) Spectrum Reform.--
       (1) Advanced television spectrum services.--If the 
     Commission by rule permits licensees to provide advanced 
     television services, then--
       (A) it shall adopt regulations that allow such licensees to 
     make use of the advanced television spectrum for the 
     transmission of ancillary or supplementary services if the 
     licensees provide without charge to the public at least one 
     advanced television program service as prescribed by the 
     Commission that is intended for and available to the general 
     public on the advanced television spectrum; and
       (B) it shall apply similar rules to use of existing 
     television spectrum.
       (2) Commission to collect fees.--To the extent that a 
     television broadcast licensee provides ancillary or 
     supplementary services using existing or advanced television 
     spectrum--
       (A) for which payment of a subscription fee is required in 
     order to receive such services, or
       (B) for which the licensee directly or indirectly receives 
     compensation from a third party in return for transmitting 
     material furnished by such third party, other than payments 
     to broadcast stations by third parties for transmission of 
     program material or commercial advertising,

     the Commission may collect from each such licensee an annual 
     fee to the extent the existing or advanced television 
     spectrum is used for such ancillary or supplementary 
     services. In determining the amount of such fees, the 
     Commission shall take into account the portion of the 
     licensee's total existing or advanced television spectrum 
     which is used for such services and the amount of time such 
     services are provided. The amount of such fees to be 
     collected for any such service shall not, in any event, 
     exceed an amount equivalent on an annualized basis to the 
     amount paid by providers of a competing service on spectrum 
     subject to auction under section 309(j) of the Communications 
     Act of 1934 (47 U.S.C. 309(j)).
       (3) Public interest requirement.--Nothing in this section 
     shall be construed as relieving a television broadcasting 
     station from its obligation to serve the public interest, 
     convenience, and necessity. In the Commission's review of any 
     application for renewal of a broadcast license for a 
     television station that provides ancillary or supplementary 
     services, the television licensee shall establish that all of 
     its program services on the existing or advanced television 
     spectrum are in the public interest. Any violation of the 
     Commission rules applicable to ancillary or supplementary 
     services shall reflect upon the licensee's qualifications for 
     renewal of its license.
       (4) Definitions.--As used in this subsection--
       (A) The term ``advanced television services'' means 
     television services provided using digital or other advanced 
     technology to enhance audio quality and video resolution.
       (B) The term ``existing'' means spectrum generally in use 
     for television broadcast purposes on the date of enactment of 
     this Act.
       (b) Ownership Reform.--
       (1) In general.--The Commission shall modify its rules for 
     multiple ownership set forth in 47 CFR 73.3555 by--
       (A) eliminating the restrictions on the number of 
     television stations owned under subdivisions (e)(1) (ii) and 
     (iii); and
       (B) changing the percentage set forth in subdivision 
     (e)(2)(ii) from 25 percent to 35 percent.
       (2) Radio Ownership.--The Commission shall modify its rules 
     set forth in 47 CFR 73.3555 by eliminating any provisions 
     limiting the number of AM or FM broadcast stations which may 
     be owned or controlled by one entity either nationally or in 
     a particular market. The Commission may refuse to approve the 
     transfer or issuance of an AM or FM broadcast license to a 
     particular entity if it finds that the entity would thereby 
     obtain an undue concentration of control or 

[[Page S8581]]
     would thereby harm competition. Nothing in this section shall require 
     or prevent the Commission from modifying its rules contained 
     in 47 CFR 73.3555(c) governing the ownership of both a radio 
     and television broadcast stations in the same market.
       (3) Local marketing agreement.--Nothing in this Act shall 
     be construed to prohibit the continuation or renewal of any 
     television local marketing agreement that is in effect on the 
     date of enactment of this Act and that is in compliance with 
     the Commission's regulations.
       (4) Statutory restrictions.--Section 613 (47 U.S.C. 533) is 
     amended by striking subsection (a) and inserting the 
     following:
       ``(a) The Commission shall review its ownership rules 
     biennially as part of its regulatory reform review under 
     section 259.''.
       (5) Conforming changes.--The Commission shall amend its 
     rules to make any changes necessary to reflect the effect of 
     this section on its rules.
       (6) Effective date.--The Commission shall make the 
     modifications required by paragraphs (1) and (2) effective on 
     the date of enactment of this Act.
       (c) Term of Licenses.--Section 307(c) (47 U.S.C. 307(c)) is 
     amended by striking the first four sentences and inserting 
     the following:
       ``No license shall be granted for a term longer than 10 
     years. Upon application, a renewal of such license may be 
     granted from time to time for a term of not to exceed 10 
     years, if the Commission finds that the public interest, 
     convenience, and necessity would be served thereby.''.
       (d) Broadcast License Renewal Procedures.--
       (1) Section 309 (47 U.S.C. 309) is amended by adding at the 
     end thereof the following:
       ``(k)(1)(A) Notwithstanding subsections (c) and (d), if the 
     licensee of a broadcast station submits an application to the 
     Commission for renewal of such license, the Commission shall 
     grant the application if it finds, after notice and 
     opportunity for comment, with respect to that station during 
     the preceding term of its license, that--
       ``(i) the station has served the public interest, 
     convenience, and necessity;
       ``(ii) there have been no serious violations by the 
     licensee of this Act or the rules and regulations of the 
     Commission; and
       ``(iii) there have been no other violations by the licensee 
     of this Act or the rules and regulations of the Commission 
     which, taken together, would constitute a pattern of abuse.
       ``(B) If any licensee of a broadcast station fails to meet 
     the requirements of this subsection, the Commission may deny 
     the application for renewal in accordance with paragraph (2), 
     or grant such application on appropriate terms and 
     conditions, including renewal for a term less than the 
     maximum otherwise permitted.
       ``(2) If the Commission determines, after notice and 
     opportunity for a hearing, that a licensee has failed to meet 
     the requirements specified in paragraph (1)(A) and that no 
     mitigating factors justify the imposition of lesser 
     sanctions, the Commission shall--
       ``(A) issue an order denying the renewal application filed 
     by such licensee under section 308; and
       ``(B) only thereafter accept and consider such applications 
     for a construction permit as may be filed under section 308 
     specifying the channel or broadcasting facilities of the 
     former licensee.
       ``(3) In making the determinations specified in paragraphs 
     (1) or (2)(A), the Commission shall not consider whether the 
     public interest, convenience, and necessity might be served 
     by the grant of a license to a person other than the renewal 
     applicant.''.
       (2) Section 309(d) (47 U.S.C. 309(d)) is amended by 
     inserting ``(or subsection (k) in the case of renewal of any 
     broadcast station license)'' after ``with subsection (a)'' 
     each place it appears.
       (3) The amendments made by this subsection apply to 
     applications filed after May 31, 1995.
       (4) This section shall operate only if the Commission shall 
     amend its ``Application for renewal of License for AM, FM, 
     TV, Translator or LPTV Station'' (FCC Form 303-S) to require 
     that, for commercial TV applicants only, the applicant attach 
     as an exhibit to the application a summary of written 
     comments and suggestions received from the public and 
     maintained by the licensee in accordance with section 73.1202 
     of title 47, Code of Federal Regulations, that comment on the 
     applicant's programming, if any, characterized by the 
     commentor as constituting violent programming.

       Subtitle B--Termination of Modification of Final Judgment

     SEC. 221. REMOVAL OF LONG DISTANCE RESTRICTIONS.

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

     ``SEC. 255. INTEREXCHANGE TELECOMMUNICATIONS SERVICES.

       ``(a) In General.--Notwithstanding any restriction or 
     obligation imposed before the date of enactment of the 
     Telecommunications Act of 1995 under section II(D) of the 
     Modification of Final Judgment, a Bell operating company, or 
     any subsidiary or affiliate of a Bell operating company, that 
     meets the requirements of this section may provide--
       ``(1) interLATA telecommunications services originating in 
     any region in which it is the dominant provider of wireline 
     telephone exchange service or exchange access service after 
     the Commission determines that it has fully implemented the 
     competitive checklist found in subsection (b)(2) in the area 
     in which it seeks to provide interLATA telecommunications 
     services, in accordance with the provisions of subsection 
     (c);
       ``(2) interLATA telecommunications services originating in 
     any area where that company is not the dominant provider of 
     wireline telephone exchange service or exchange access 
     service in accordance with the provisions of subsection (d); 
     and
       ``(3) interLATA services that are incidental services in 
     accordance with the provisions of subsection (e).
       ``(b) Specific InterLATA Interconnection Requirements.--
       ``(1) In general.--A Bell operating company may provide 
     interLATA services in accordance with this section only if 
     that company has reached an interconnection agreement under 
     section 251 and that agreement provides, at a minimum, for 
     interconnection that meets the competitive checklist 
     requirements of paragraph (2).
       ``(2) Competitive checklist.--Interconnection provided by a 
     Bell operating company to other telecommunications carriers 
     under section 251 shall include:
       ``(A) Nondiscriminatory access on an unbundled basis to the 
     network functions and services of the Bell operating 
     company's telecommunications network that is at least equal 
     in type, quality, and price to the access the Bell operating 
     company affords to itself or any other entity.
       ``(B) The capability to exchange telecommunications between 
     customers of the Bell operating company and the 
     telecommunications carrier seeking interconnection.
       ``(C) Nondiscriminatory access to the poles, ducts, 
     conduits, and rights-of-way owned or controlled by the Bell 
     operating company at just and reasonable rates where it has 
     the legal authority to permit such access.
       ``(D) Local loop transmission from the central office to 
     the customer's premises, unbundled from local switching or 
     other services.
       ``(E) Local transport from the trunk side of a wireline 
     local exchange carrier switch unbundled from switching or 
     other services.
       ``(F) Local switching unbundled from transport, local loop 
     transmission, or other services.
       ``(G) Nondiscriminatory access to--
       ``(i) 911 and E911 services;
       ``(ii) directory assistance services to allow the other 
     carrier's customers to obtain telephone numbers; and
       ``(iii) operator call completion services.
       ``(H) White pages directory listings for customers of the 
     other carrier's telephone exchange service.
       ``(I) Until the date by which neutral telephone number 
     administration guidelines, plan, or rules are established, 
     nondiscriminatory access to telephone numbers for assignment 
     to the other carrier's telephone exchange service customers. 
     After that date, compliance with such guidelines, plan, or 
     rules.
       ``(J) Nondiscriminatory access to databases and associated 
     signaling, including signaling links, signaling service 
     control points, and signaling service transfer points, 
     necessary for call routing and completion.
       ``(K) Until the date by which the Commission determines 
     that final telecommunications number portability is 
     technically feasible and must be made available, interim 
     telecommunications number portability through remote call 
     forwarding, direct inward dialing trunks, or other comparable 
     arrangements, with as little impairment of functioning, 
     quality, reliability, and convenience as possible. After that 
     date, full compliance with final telecommunications number 
     portability.
       ``(L) Nondiscriminatory access to whatever services or 
     information may be necessary to allow the requesting carrier 
     to implement local dialing parity in a manner that permits 
     consumers to be able to dial the same number of digits when 
     using any telecommunications carrier providing telephone 
     exchange service or exchange access service.
       ``(M) Reciprocal compensation arrangements on a 
     nondiscriminatory basis for the origination and termination 
     of telecommunications.
       ``(N) Telecommunications services and network functions 
     provided on an unbundled basis without any conditions or 
     restrictions on the resale or sharing of those services or 
     functions, including both origination and termination of 
     telecommunications services, other than reasonable conditions 
     required by the Commission or a State. For purposes of this 
     subparagraph, it is not an unreasonable condition for the 
     Commission or a State to limit the resale--
       ``(i) of services included in the definition of universal 
     service to a telecommunications carrier who intends to resell 
     that service to a category of customers different from the 
     category of customers being offered that universal service by 
     such carrier if the Commission or State orders a carrier to 
     provide the same service to different categories of customers 
     at different prices necessary to promote universal service; 
     or
       ``(ii) of subsidized universal service in a manner that 
     allows companies to charge another carrier rates which 
     reflect the actual cost of providing those services to that 
     carrier, exclusive of any universal service support received 
     for providing such services in accordance with section 
     214(d)(5).
       ``(3) Joint marketing of local and long distance 
     services.--Until a Bell operating 

[[Page S8582]]
     company is authorized to provide interLATA services in a telephone 
     exchange area where that company is the dominant provider of 
     wireline telephone exchange service or exchange access 
     service, or until 36 months have passed since the enactment 
     of the Telecommunications Act of 1995, whichever is earlier, 
     a telecommunications carrier that serves greater than 5 
     percent of the Nation's presubscribed access lines may not 
     jointly market in such telephone exchange area telephone 
     exchange service purchased from such company with interLATA 
     services offered by that telecommunications carrier.
       ``(4) Commission may not expand competitive checklist.--The 
     Commission may not, by rule or otherwise, limit or extend the 
     terms used in the competitive checklist.
       ``(c) In-Region Services.--
       ``(1) Application.--Upon the enactment of the 
     Telecommunications Act of 1995, a Bell operating company or 
     its affiliate may apply to the Commission for authorization 
     notwithstanding the Modification of Final Judgment to provide 
     interLATA telecommunications service originating in any area 
     where such Bell operating company is the dominant provider of 
     wireline telephone exchange service or exchange access 
     service. The application shall describe with particularity 
     the nature and scope of the activity and of each product 
     market or service market, and each geographic market for 
     which authorization is sought.
       ``(2) Determination by commission.--
       ``(A) Determination.--Not later than 90 days after 
     receiving an application under paragraph (1), the Commission 
     shall issue a written determination, on the record after a 
     hearing and opportunity for comment, granting or denying the 
     application in whole or in part. Before making any 
     determination under this subparagraph, the Commission shall 
     consult with the Attorney General regarding the application. 
     In consulting with the Commission under this subparagraph, 
     the Attorney General may apply any appropriate standard.
       ``(B) Approval.--The Commission may only approve the 
     authorization requested in an application submitted under 
     paragraph (1) if it finds that--
       ``(i) the petitioning Bell operating company has fully 
     implemented the competitive checklist found in subsection 
     (b)(2); and
       ``(ii) the requested authority will be carried out in 
     accordance with the requirements of section 252,

     and if the Commission determines that the requested 
     authorization is consistent with the public interest, 
     convenience, and necessity. If the Commission does not 
     approve an application under this subparagraph, it shall 
     state the basis for its denial of the application.
       ``(3) Publication.--Not later than 10 days after issuing a 
     determination under paragraph (2), the Commission shall 
     publish in the Federal Register a brief description of the 
     determination.
       ``(4) Judicial review.--
       ``(A) Commencement of action.--Not later than 45 days after 
     a determination by the Commission is published under 
     paragraph (3), the Bell operating company or its subsidiary 
     or affiliate that applied to the Commission under paragraph 
     (1), or any person who would be threatened with loss or 
     damage as a result of the determination regarding such 
     company's engaging in the activity described in its 
     application, may commence an action in any United States 
     Court of Appeals against the Commission for judicial review 
     of the determination regarding the application.
       ``(B) Judgment.--
       ``(i) The Court shall enter a judgment after reviewing the 
     determination in accordance with section 706 of title 5 of 
     the United State Code.
       ``(ii) A judgment--

       ``(I) affirming any part of the determination that approves 
     granting all or part of the requested authorization, or
       ``(II) reversing any part of the determination that denies 
     all or part of the requested authorization,

     shall describe with particularity the nature and scope of the 
     activity, and of each product market or service market, and 
     each geographic market, to which the affirmance or reversal 
     applies.
       ``(5) Requirements relating to separate affiliate; 
     safeguards; and intralata toll dialing parity.--
       ``(A) Separate affiliate; safeguards.--Other than interLATA 
     services authorized by an order entered by the United States 
     District Court for the District of Columbia pursuant to the 
     Modification of Final Judgment before the date of enactment 
     of the Telecommunications Act of 1995, a Bell operating 
     company, or any affiliate of such a company, providing 
     interLATA services authorized under this subsection may 
     provide such interLATA services in that market only in 
     accordance with the requirements of section 252.
       ``(B) Intralata toll dialing parity.--
       ``(i) A Bell operating company granted authority to provide 
     interLATA services under this subsection shall provide 
     intraLATA toll dialing parity throughout that market 
     coincident with its exercise of that authority. If the 
     Commission finds that such a Bell operating company has 
     provided interLATA service authorized under this clause 
     before its implementation of intraLATA toll dialing parity 
     throughout that market, or fails to maintain intraLATA toll 
     dialing parity throughout that market, the Commission, except 
     in cases of inadvertent interruptions or other events beyond 
     the control of the Bell operating company, shall suspend the 
     authority to provide interLATA service for that market until 
     the Commission determines that intraLATA toll dialing parity 
     is implemented or reinstated.
       ``(ii) Except for single-LATA States and States which have 
     issued an order by June 1, 1995 requiring a Bell operating 
     company to implement toll dialing parity, a State may not 
     require a Bell operating company to implement toll dialing 
     parity in an intraLATA area before a Bell operating company 
     has been granted authority under this subsection to provide 
     interLATA services in that area or before three years after 
     the date of enactment of the Telecommunications Act of 1995, 
     whichever is earlier. Nothing in this clause precludes a 
     State from issuing an order requiring toll dialing parity in 
     an intraLATA area prior to either such date so long as such 
     order does not take effect until after the earlier of either 
     such dates.
       ``(iii) In any State in which intraLATA toll dialing parity 
     has been implemented prior to the earlier date specified in 
     clause (ii), no telecommunications carrier that serves 
     greater than five percent of the Nation's presubscribed 
     access lines may jointly market interLATA telecommunications 
     services and intraLATA toll telecommunications services in a 
     telephone exchange area in such State until a Bell operating 
     company is authorized under this subsection to provide 
     interLATA services in such telephone exchange area or until 
     three years after the date of enactment of the 
     Telecommunications Act of 1995, whichever is earlier.
       ``(d) Out-of-Region Services.--Effective on the date of 
     enactment of the Telecommunications Act of 1995, a Bell 
     operating company or its affiliate may provide interLATA 
     telecommunications services originating in any area where 
     such company is not the dominant provider of wireline 
     telephone exchange service or exchange access service.
       ``(e) Incidental Services.--
       ``(1) In general.--Effective on the date of enactment of 
     the Telecommunications Act of 1995, a Bell operating company 
     or its affiliate may provide interLATA services that are 
     incidental to--
       ``(A)(i) providing audio programming, video programming, or 
     other programming services to subscribers of such company,
       ``(ii) providing the capability for interaction by such 
     subscribers to select or respond to such audio programming, 
     video programming, or other programming services, to order, 
     or control transmission of the programming, polling or 
     balloting, and ordering other goods or services,
       ``(iii) providing to distributors audio programming or 
     video programming that such company owns, controls, or is 
     licensed by the copyright owner of such programming, or by an 
     assignee of such owner, to distribute, or
       ``(iv) providing alarm monitoring services,
       ``(B) providing--
       ``(i) a telecommunications service, using the transmission 
     facilities of a cable system that is an affiliate of such 
     company, between LATAs within a cable system franchise area 
     in which such company is not, on the date of enactment of the 
     Telecommunications Act of 1995, a provider of wireline 
     telephone exchange service, or
       ``(ii) two-way interactive video services or Internet 
     services over dedicated facilities to or for elementary and 
     secondary schools as defined in section 264(d),
       ``(C) providing a service that permits a customer that is 
     located in one LATA to retrieve stored information from, or 
     file information for storage in, information storage 
     facilities of such company that are located in another LATA 
     area, so long as the customer acts affirmatively to initiate 
     the storage or retrieval of information, except that--
       ``(i) such service shall not cover any service that 
     establishes a direct connection between end users or any 
     real-time voice and data transmission,
       ``(ii) such service shall not include voice, data, or 
     facsimile distribution services in which the Bell operating 
     company or affiliate forwards customer-supplied information 
     to customer- or carrier-selected recipients,
       ``(iii) such service shall not include any service in which 
     the Bell operating company or affiliate searches for and 
     connects with the intended recipient of information, or any 
     service in which the Bell operating company or affiliate 
     automatically forwards stored voicemail or other information 
     to the intended recipient, and
       ``(iv) customers of such service shall not be billed a 
     separate charge for the interLATA telecommunications 
     furnished in conjunction with the provision of such service,
       ``(D) providing signaling information used in connection 
     with the provision of telephone exchange service or exchange 
     access service to another local exchange carrier; or
       ``(E) providing network control signaling information to, 
     and receiving such signaling information from, interexchange 
     carriers at any location within the area in which such 
     company provides telephone exchange service or exchange 
     access service.
       ``(2) Limitations.--The provisions of paragraph (1) are 
     intended to be narrowly construed. The transmission 
     facilities used by a Bell operating company or affiliate 
     thereof to provide interLATA telecommunications under 
     paragraph (1)(C) and subsection (f) shall be leased by that 
     company from unaffiliated entities on terms and conditions 
     (including price) no more favorable than those 

[[Page S8583]]
     available to the competitors of that company until that Bell operating 
     company receives authority to provide interLATA services 
     under subsection (c). The interLATA services provided under 
     paragraph (1)(A) are limited to those interLATA transmissions 
     incidental to the provision by a Bell operating company or 
     its affiliate of video, audio, and other programming services 
     that the company or its affiliate is engaged in providing to 
     the public. A Bell operating company may not provide 
     telecommunications services not described in paragraph (1) 
     without receiving the approvals required by subsection (c). 
     The provision of services authorized under this subsection by 
     a Bell operating company or its affiliate shall not adversely 
     affect telephone exchange ratepayers or competition in any 
     telecommunications market.
       ``(f) Commercial Mobile Service.--A Bell operating company 
     may provide interLATA commercial mobile service except where 
     such service is a replacement for land line telephone 
     exchange service for a substantial portion of the land line 
     telephone exchange service in a State in accordance with 
     section 322(c) and with the regulations prescribed by the 
     Commission.
       ``(g) Definitions.--As used in this section--
       ``(1) Audio programming services.--The term `audio 
     programming services' means programming provided by, or 
     generally considered to be comparable to programming provided 
     by, a radio broadcast station.
       ``(2) Video programming services; other programming 
     services.--The terms `video programming service' and `other 
     programming services' have the same meanings as such terms 
     have under section 602 of this Act.
       ``(h) Certain Service Applications Treated As In-Region 
     Service Applications.--For purposes of this section, a Bell 
     operating company application to provide 800 service, private 
     line service, or their equivalents that--
       ``(1) terminate in an area where the Bell operating company 
     is the dominant provider of wireline telephone exchange 
     service or exchange access service, and
       ``(2) allow the called party to determine the interLATA 
     carrier,

     shall be considered an in-region service subject to the 
     requirements of subsection (c) and not of subsection (d).''.
       (b) Long Distance Access for Commercial Mobile Services.--
       (1) In General.--Notwithstanding any restriction or 
     obligation imposed pursuant to the Modification of final 
     Judgment or other consent decree or proposed consent decree 
     prior to the date of enactment of this Act, a person engaged 
     in the provision of commercial mobile services (as defined in 
     section 332(d)(1) of the Communications Act of 1934), insofar 
     as such person is so engaged, shall not be required by court 
     order or otherwise to provide equal access to interexchange 
     telecommunications carriers, except as provided by this 
     section. Such a person shall ensure that its subscribers can 
     obtain unblocked access to the provider of interexchange 
     services of the subscriber's choice through the use of an 
     interexchange carrier identification code assigned to such 
     provider, except that the requirements for unblocking shall 
     not apply to mobile satellite services unless the Commission 
     finds it to be in the public interest.
       (2) Equal access requirement conditions.--The Commission 
     may only require a person engaged in the provision of 
     commercial mobile services to provide equal access to 
     interexchange carriers if--
       (A) such person, insofar as such person is so engaged, is 
     subject to the interconnection obligations of section 251(a) 
     of the Communications Act of 1934, and
       (B) the Commission finds that such requirement is in the 
     public interest.

     SEC. 222. REMOVAL OF MANUFACTURING RESTRICTIONS.

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

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

       ``(a) Authorization.--
       ``(1) In general.--Notwithstanding any restriction or 
     obligation imposed before the date of enactment of the 
     Telecommunications Act of 1995 pursuant to the Modification 
     of Final Judgment on the lines of business in which a Bell 
     operating company may engage, if the Commission authorizes a 
     Bell operating company to provide interLATA services under 
     section 255, then that company may be authorized by the 
     Commission to manufacture and provide telecommunications 
     equipment, and to manufacture customer premises equipment, at 
     any time after that determination is made, subject to the 
     requirements of this section and the regulations prescribed, 
     except that neither a Bell operating company nor any of its 
     affiliates may engage in such manufacturing in conjunction 
     with a Bell operating company not so affiliated or any of its 
     affiliates.
       ``(2) Certain research and design arrangements; royalty 
     agreements.--Upon adoption of rules by the Commission under 
     section 252, a Bell operating company may--
       ``(A) engage in research and design activities related to 
     manufacturing, and
       ``(B) enter into royalty agreements with manufacturers of 
     telecommunications equipment.
       ``(b) Separate Affiliate; Safeguards.--Any manufacturing or 
     provision of equipment authorized under subsection (a) shall 
     be conducted in accordance with the requirements of section 
     252.
       ``(c) Protection of Small Telephone Company Interests.--
       ``(1) Equipment to be made available to others.--A 
     manufacturing affiliate of a Bell operating company shall 
     make available, without discrimination or self-preference as 
     to price, delivery, terms, or conditions, to all local 
     exchange carriers, for use with the public telecommunications 
     network, any telecommunications equipment, including software 
     integral to such telecommunications equipment, including 
     upgrades, manufactured by such affiliate if each such 
     purchasing carrier--
       ``(A) does not manufacture telecommunications equipment or 
     have an affiliate which manufactures telecommunications 
     equipment; or
       ``(B) agrees to make available, to the Bell operating 
     company that is the parent of the manufacturing affiliate or 
     any of the local exchange carrier affiliates of such Bell 
     company, any telecommunications equipment, including software 
     integral to such telecommunications equipment, including 
     upgrades, manufactured for use with the public 
     telecommunications network by such purchasing carrier or by 
     any entity or organization with which such purchasing carrier 
     is affiliated.
       ``(2) Non-discrimination standards.--
       ``(A) A Bell operating company and any entity acting on its 
     behalf shall make procurement decisions and award all supply 
     contracts for equipment, services, and software on the basis 
     of open, competitive bidding, and an objective assessment of 
     price, quality, delivery, and other commercial factors.
       ``(B) A Bell operating company and any entity it owns or 
     otherwise controls, or which is acting on its behalf or on 
     behalf of its affiliate, shall permit any person to 
     participate fully on a non-discriminatory basis in the 
     process of establishing standards and certifying equipment 
     used in or interconnected to the public telecommunications 
     network.
       ``(C) A Bell operating company shall, consistent with the 
     antitrust laws, engage in joint network planning and design 
     with local exchange carriers operating in the same area of 
     interest. No participant in such planning shall be allowed to 
     delay the introduction of new technology or the deployment of 
     facilities to provide telecommunications services, and 
     agreement with such other carriers shall not be required as a 
     prerequisite for such introduction or deployment. A Bell 
     operating company shall provide, to other local exchange 
     carriers operating in the same area of interest, timely 
     information on the planned deployment of telecommunications 
     equipment, including software integral to such 
     telecommunications equipment and upgrades of that software.
       ``(D) A manufacturing affiliate of a Bell operating company 
     may not restrict sales to any local exchange carrier of 
     telecommunications equipment, including software integral to 
     the operation of such equipment and related upgrades.
       ``(E) A Bell operating company and any entity it owns or 
     otherwise controls shall protect the proprietary information 
     submitted with contract bids and in the standards and 
     certification processes from release not specifically 
     authorized by the owner of such information.
       ``(d) Collaboration with Other Manufacturers.--A Bell 
     operating company and its affiliates may engage in close 
     collaboration with any manufacturer of customer premises 
     equipment or telecommunications equipment not affiliated with 
     a Bell operating company during the design and development of 
     hardware, software, or combinations thereof relating to such 
     equipment.
       ``(e) Information on Protocols and Technical 
     Requirements.--The Commission shall prescribe regulations to 
     require that each Bell operating company shall maintain and 
     file with the Commission full and complete information with 
     respect to the protocols and technical requirements for 
     connection with and use of its telephone exchange service 
     facilities. Such regulations shall require each such Bell 
     company to report promptly to the Commission any material 
     changes or planned changes to such protocols and 
     requirements, and the schedule for implementation of such 
     changes or planned changes.
       ``(f) Additional Rules and Regulations.--The Commission may 
     prescribe such additional rules and regulations as the 
     Commission determines are necessary to carry out the 
     provisions of this section, and otherwise to prevent 
     discrimination and cross-subsidization in a Bell operating 
     company's dealings with its affiliate and with third parties.
       ``(g) Administration and Enforcement.--
       ``(1) Commission authority.--For the purposes of 
     administering and enforcing the provisions of this section 
     and the regulations prescribed under this section, the 
     Commission shall have the same authority, power, and 
     functions with respect to any Bell operating company as the 
     Commission has in administering and enforcing the provisions 
     of this title with respect to any common carrier subject to 
     this Act.
       ``(2) Civil actions by injured parties.--Any party injured 
     by an act or omission of a Bell operating company or its 
     manufacturing affiliate which violates the requirements of 
     paragraph (1) or (2) of subsection (c), or the Commission's 
     regulations implementing such paragraphs, may initiate an 
     action in a 

[[Page S8584]]
     district court of the United States to recover the full amount of 
     damages sustained in consequence of any such violation and 
     obtain such orders from the court as are necessary to 
     terminate existing violations and to prevent future 
     violations; or such party may seek relief from the Commission 
     pursuant to sections 206 through 209.
       ``(h) Application to Bell Communications Research.--Nothing 
     in this section--
       ``(1) provides any authority for Bell Communications 
     Research, or any successor entity, to manufacture or provide 
     telecommunications equipment or to manufacture customer 
     premises equipment; or
       ``(2) prohibits Bell Communications Research, or any 
     successor entity, from engaging in any activity in which it 
     is lawfully engaged on the date of enactment of the 
     Telecommunications Act of 1995, including providing a 
     centralized organization for the provision of engineering, 
     administrative, and other services (including serving as a 
     single point of contact for coordination of the Bell 
     operating companies to meet national security and emergency 
     preparedness requirements).
       ``(i) Definitions.--As used in this section--
       ``(1) The term `customer premises equipment' means 
     equipment employed on the premises of a person (other than a 
     carrier) to originate, route, or terminate 
     telecommunications.
       ``(2) The term `manufacturing' has the same meaning as such 
     term has in the Modification of Final Judgment.
       ``(3) The term `telecommunications equipment' means 
     equipment, other than customer premises equipment, used by a 
     carrier to provide telecommunications services.''.
       (b) Effect on Pre-existing Manufacturing Authority.--
     Nothing in this section, or in section 256 of the 
     Communications Act of 1934 as added by this section, 
     prohibits any Bell operating company from engaging, directly 
     or through any affiliate, in any manufacturing activity in 
     which any Bell operating company or affiliate was authorized 
     to engage on the date of enactment of this Act.

     SEC. 223. EXISTING ACTIVITIES.

       Nothing in this Act, or any amendment made by this Act, 
     prohibits a Bell operating company from engaging, at any time 
     after the date of enactment of this Act, in any activity 
     authorized by an order entered by the United States District 
     Court for the District of Columbia pursuant to section VII or 
     VIII(C) of the Modification of Final Judgment, if such order 
     was entered on or before the date of enactment of this Act.

     SEC. 224. ENFORCEMENT.

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

     ``SEC. 257. ENFORCEMENT.

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

     SEC. 225. ALARM MONITORING SERVICES.

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

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

       ``(a) In General.--Except as provided in this section, a 
     Bell operating company, or any affiliate of that company, may 
     not provide alarm monitoring services for the protection of 
     life, safety, or property. A Bell operating company may 
     transport alarm monitoring service signals on a common 
     carrier basis only.
       ``(b) Authority To Provide Alarm Monitoring Services.--
     Beginning 4 years after the date of enactment of the 
     Telecommunications Act of 1995, a Bell operating company may 
     provide alarm monitoring services for the protection of life, 
     safety, or property if it has been authorized to provide 
     interLATA services under section 255 unless the Commission 
     finds that the provision of alarm monitoring services by such 
     company is not in the public interest. The Commission may not 
     find that provision of alarm monitoring services by a Bell 
     operating company is in the public interest until it finds 
     that it has the capability effectively to enforce any 
     requirements, limitations, or conditions that may be placed 
     upon a Bell operating company in the provision of alarm 
     monitoring services, including the regulations prescribed 
     under subsection (c).
       ``(c) Regulations Required.--
       ``(1) Not later than 1 year after the date of enactment of 
     the Telecommunications Act of 1995, the Commission shall 
     prescribe regulations--
       ``(A) to establish such requirements, limitations, or 
     conditions as are--
       ``(i) necessary and appropriate in the public interest with 
     respect to the provision of alarm monitoring services by Bell 
     operating companies and their affiliates, and
       ``(ii) effective at such time as a Bell operating company 
     or any of its subsidiaries or affiliates is authorized to 
     provide alarm monitoring services; and
       ``(B) to establish procedures for the receipt and review of 
     complaints concerning violations by such companies of such 
     regulations, or of any other provision of this Act or the 
     regulations thereunder, that result in material financial 
     harm to a provider of alarm monitoring services.
       ``(2) A Bell operating company, its affiliates, and any 
     local exchange carrier are prohibited from recording or using 
     in any fashion the occurrence or contents of calls received 
     by providers of alarm monitoring services for the purposes of 
     marketing such services on behalf of the Bell operating 
     company, any of its affiliates, the local exchange carrier, 
     or any other entity. Any regulations necessary to enforce 
     this paragraph shall be issued initially within 6 months 
     after the date of enactment of the Telecommunications Act of 
     1995.
       ``(d) Expedited Consideration Of Complaints.--The 
     procedures established under subsection (c) shall ensure that 
     the Commission will make a final determination with respect 
     to any complaint described in such subsection within 120 days 
     after receipt of the complaint. If the complaint contains an 
     appropriate showing that the alleged violation occurred, as 
     determined by the Commission in accordance with such 
     regulations, the Commission shall, within 60 days after 
     receipt of the complaint, issue a cease and desist order to 
     prevent the Bell operating company and its subsidiaries and 
     affiliates from continuing to engage in such violation 
     pending such final determination.
       ``(e) Remedies.--The Commission may use any remedy 
     available under title V of this Act to terminate and to 
     impose sanctions on violations described in subsection (c). 
     Such remedies may include, if the Commission determines that 
     such violation was willful or repeated, ordering the Bell 
     operating company or its affiliate to cease offering alarm 
     monitoring services.
       ``(f) Savings Provision.--Subsections (a) and (b) do not 
     prohibit or limit the provision of alarm monitoring services 
     by a Bell operating company or an affiliate that was engaged 
     in providing those services as of June 1, 1995, to the extent 
     that such company--
       ``(1) continues to provide those services through the 
     affiliate through which it was providing them on that date; 
     and
       ``(2) does not acquire, directly or indirectly, an equity 
     interest in another entity engaged in providing alarm 
     monitoring services.
       ``(g) Alarm Monitoring Services Defined.--As used in this 
     section, the term `alarm monitoring services' means services 
     that detect threats to life, safety, or property by burglary, 
     fire, vandalism, bodily injury, or other emergency through 
     the use of devices that transmit signals to a central point 
     in a customer's residence, place of business, or other fixed 
     premises which-- 
     
[[Page S8585]]

       ``(1) retransmits such signals to a remote monitoring 
     center by means of telecommunications facilities of the Bell 
     operating company and any subsidiary or affiliate; and
       ``(2) serves to alert persons at the monitoring center of 
     the need to inform customers, other persons, or police, fire, 
     rescue, or other security or public safety personnel of the 
     threat at such premises.

     Such term does not include medical monitoring devices 
     attached to individuals for the automatic surveillance of 
     ongoing medical conditions.''.

     SEC. 226. NONAPPLICABILITY OF MODIFICATION OF FINAL JUDGMENT.

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

                    TITLE III--AN END TO REGULATION

     SEC. 301. TRANSITION TO COMPETITIVE PRICING.

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

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

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

     ``SEC. 259. REGULATORY REFORM.

       ``(a) Biennial Review of Regulations.--In every odd-
     numbered year (beginning with 1997), the Commission, with 
     respect to its regulations under this Act, and a Federal-
     State Joint Board established under section 410, for State 
     regulations--
       ``(1) shall review all regulations issued under this Act, 
     or under State law, in effect 

[[Page S8586]]
     at the time of the review that apply to operations or activities of 
     providers of any telecommunications services; and
       ``(2) shall determine whether any such regulation is no 
     longer necessary in the public interest as the result of 
     meaningful economic competition between the providers of such 
     service.
       ``(b) Effect of Determination.--The Commission shall repeal 
     any regulation it determines to be no longer necessary in the 
     public interest. The Joint Board shall notify the Governor of 
     any State of any State regulation it determines to be no 
     longer necessary in the public interest.
       ``(c) Classification of Carriers.--In classifying carriers 
     according to 47 CFR 32.11 and in establishing reporting 
     requirements pursuant to 47 CFR part 43 and 47 CFR 64.903, 
     the Commission shall adjust the revenue requirements to 
     account for inflation as of the release date of the 
     Commission's Report and Order in CC Docket No. 91-141, and 
     annually thereafter. This subsection shall take effect on the 
     date of enactment of the Telecommunications Act of 1995.''.
       (b) Elimination of Unnecessary Commission Regulations and 
     Functions.--
       (1) Repeal setting of depreciation rates.--The first 
     sentence of section 220(b) (47 U.S.C. 220(b)) is amended by 
     striking ``shall prescribe for such carriers'' and inserting 
     ``may prescribe, for such carriers as it determines to be 
     appropriate,''.
       (2) Use of independent auditors.--Section 220(c) (47 U.S.C. 
     220(c)) is amended by adding at the end thereof the 
     following: ``The Commission may obtain the services of any 
     person licensed to provide public accounting services under 
     the law of any State to assist with, or conduct, audits under 
     this section. While so employed or engaged in conducting an 
     audit for the Commission under this section, any such person 
     shall have the powers granted the Commission under this 
     subsection and shall be subject to subsection (f) in the same 
     manner as if that person were an employee of the 
     Commission.''.
       (3) Simplification of federal-state coordination process.--
     The Commission shall simplify and expedite the Federal-State 
     coordination process under section 410 of the Communications 
     Act of 1934.
       (4) Privatization of ship radio inspections.--Section 385 
     (47 U.S.C. 385) is amended by adding at the end thereof the 
     following: ``In accordance with such other provisions of law 
     as apply to Government contracts, the Commission may enter 
     into contracts with any person for the purpose of carrying 
     out such inspections and certifying compliance with those 
     requirements, and may, as part of any such contract, allow 
     any such person to accept reimbursement from the license 
     holder for travel and expense costs of any employee 
     conducting an inspection or certification.''.
       (5) Modification of construction permit requirement.--
     Section 319(d) (47 U.S.C. 319(d)) is amended by striking the 
     third sentence and inserting the following: ``The Commission 
     may waive the requirement for a construction permit with 
     respect to a broadcasting station in circumstances in which 
     it deems prior approval to be unnecessary. In those 
     circumstances, a broadcaster shall file any related license 
     application within 10 days after completing construction.''.
       (6) Limitation on silent station authorizations.--Section 
     312 (47 U.S.C. 312) is amended by adding at the end the 
     following:
       ``(g) If a broadcasting station fails to transmit broadcast 
     signals for any consecutive 12-month period, then the station 
     license granted for the operation of that broadcast station 
     expires at the end of that period, notwithstanding any 
     provision, term, or condition of the license to the 
     contrary.''.
       (7) Expediting instructional television fixed service 
     processing.--The Commission shall delegate, under section 
     5(c) of the Communications Act of 1934, the conduct of 
     routine instructional television fixed service cases to its 
     staff for consideration and final action.
       (8) Delegation of equipment testing and certification to 
     private laboratories.--Section 302 (47 U.S.C. 302) is amended 
     by adding at the end the following:
       ``(e) The Commission may--
       ``(1) authorize the use of private organizations for 
     testing and certifying the compliance of devices or home 
     electronic equipment and systems with regulations promulgated 
     under this section;
       ``(2) accept as prima facie evidence of such compliance the 
     certification by any such organization; and
       ``(3) establish such qualifications and standards as it 
     deems appropriate for such private organizations, testing, 
     and certification.''.
       (9) Making license modification uniform.--Section 303(f) 
     (47 U.S.C. 303(f)) is amended by striking ``unless, after a 
     public hearing,'' and inserting ``unless''.
       (10) Permit operation of domestic ship and aircraft radios 
     without license.--Section 307(e) (47 U.S.C. 307(e)) is 
     amended by--
       (A) striking ``service and the citizens band radio 
     service'' in paragraph (1) and inserting ``service, citizens 
     band radio service, domestic ship radio service, domestic 
     aircraft radio service, and personal radio service''; and
       (B) striking ``service' and `citizens band radio service''' 
     in paragraph (3) and inserting ``service', `citizens band 
     radio service', `domestic ship radio service', `domestic 
     aircraft radio service', and `personal radio service'''.
       (11) Expedited licensing for fixed microwave service.--
     Section 309(b)(2) (47 U.S.C. 309(b)(2)) is amended by 
     striking subparagraph (A) and redesignating subparagraphs (B) 
     through (G) as (A) through (F), respectively.
       (12) Eliminate fcc jurisdiction over government-owned ship 
     radio stations.--
       (A) Section 305 (47 U.S.C. 305) is amended by striking 
     subsection (b) and redesignating subsections (c) and (d) as 
     (b) and (c), respectively.
       (B) Section 382(2) (47 U.S.C. 382(2)) is amended by 
     striking ``except a vessel of the United States Maritime 
     Administration, the Inland and Coastwise Waterways Service, 
     or the Panama Canal Company,''.
       (13) Modification of amateur radio examination 
     procedures.--
       (A) Section 4(f)(H)(N) (47 U.S.C. 4(f)(4)(B)) is amended by 
     striking ``transmissions, or in the preparation or 
     distribution of any publication used in preparation for 
     obtaining amateur station operator licenses,'' and inserting 
     ``transmission''.
       (B) The Commission shall modify its rules governing the 
     amateur radio examination process by eliminating burdensome 
     record maintenance and annual financial certification 
     requirements.
       (14) Streamline non-broadcast radio license renewals.--The 
     Commission shall modify its rules under section 309 of the 
     Communications Act of 1934 (47 U.S.C. 309) relating to 
     renewal of nonbroadcast radio licenses so as to streamline or 
     eliminate comparative renewal hearings where such hearings 
     are unnecessary or unduly burdensome.

     SEC. 303. REGULATORY FORBEARANCE.

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

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

       ``(a) Regulatory flexibility.--Notwithstanding section 
     332(c)(1)(A) of this Act, the Commission shall forbear from 
     applying any regulation or any provision of this Act to a 
     telecommunications carrier or service, or class of carriers 
     or services, in any or some of its or their geographic 
     markets if the Commission determines that--
       ``(1) enforcement of such regulation or provision is not 
     necessary to ensure that the charges, practices, 
     classifications, or regulations by, for, or in connection 
     with that carrier or service are just and reasonable and are 
     not unjustly or unreasonably discriminatory;
       ``(2) enforcement of such regulation or provision is not 
     necessary for the protection of consumers or the preservation 
     and advancement of universal service; and
       ``(3) forbearance from applying such regulation or 
     provision is consistent with the public interest.
       ``(b) Competitive Effect to Be Weighed.--In making the 
     determination under subsection (a)(3), the Commission shall 
     consider whether forbearance from enforcing the regulation or 
     provision will promote competitive market conditions, 
     including the extent to which such forbearance will enhance 
     competition among providers of telecommunications services. 
     If the Commission determines that such forbearance will 
     promote competition among providers of telecommunications 
     services, that determination may be the basis for a 
     Commission finding that forbearance is in the public 
     interest.
       ``(c) End of Regulation Process.--Any telecommunications 
     carrier, or class of telecommunications carriers, may submit 
     a petition to the Commission requesting that the Commission 
     exercise the authority granted under this section with 
     respect to that carrier or those carriers, or any service 
     offered by that carrier or carriers. Any such petition shall 
     be deemed granted if the Commission does not deny the 
     petition for failure to meet the requirements for 
     forebearance under subsection (a) within 90 days after the 
     Commission receives it, unless the 90-day period is extended 
     by the Commission. The Commission may extend the initial 90-
     day period by an additional 60 days if the Commission finds 
     that an extension is necessary to meet the requirements of 
     subsection (a). The Commission may grant or deny a petition 
     in whole or in part and shall explain its decision in 
     writing.
       ``(d) Limitation.--Except as provided in section 251(i)(3), 
     the Commission may not waive the unbundling requirements of 
     section 251(b) or 255(b)(2) under subsection (a) until it 
     determines that those requirements have been fully 
     implemented.''.

     SEC. 304. ADVANCED TELECOMMUNICATIONS INCENTIVES.

       (a) In General.--The Commission and each State commission 
     with regulatory jurisdiction over telecommunications services 
     shall encourage the deployment on a reasonable and timely 
     basis of advanced telecommunications capability to all 
     Americans (including, in particular, elementary and secondary 
     schools and classrooms) by utilizing, in a manner consistent 
     with the public interest, convenience, and necessity, price 
     cap regulation, regulatory forbearance, or other regulating 
     methods that remove barriers to infrastructure investment.
       (b) Inquiry.--The Commission shall, within 2 years after 
     the date of enactment of this Act, and regularly thereafter, 
     initiate a notice of inquiry concerning the availability of 
     advanced telecommunications capability to all Americans 
     (including, in particular, elementary and secondary schools 
     and classrooms) and shall complete the inquiry within 180 
     days after its initiation. In the inquiry, the Commission 
     shall determine whether advanced telecommunications 
     capability is 

[[Page S8587]]
     being deployed to all Americans in a reasonable and timely fashion. If 
     the Commission's determination is negative, it shall take 
     immediate action under this section, and it may preempt State 
     commissions that fail to act to ensure such availability.
       (c) Definitions.--For purposes of this section--
       (1) Communications act terms.--Any term used in this 
     section which is defined in the Communications Act of 1934 
     shall have the same meaning as it has in that Act.
       (2) Advanced telecommunications capability.--The term 
     ``advanced telecommunications capability'' means high-speed, 
     switched, broadband telecommunications capability that 
     enables users to originate and receive high-quality voice, 
     data, graphics, and video telecommunications.
       (3) Elementary and secondary schools.--The term 
     ``elementary and secondary schools'' means elementary schools 
     and secondary schools, as defined in paragraphs (14) and 
     (25), respectively, of section 14101 of the Elementary and 
     Secondary Education Act of 1965 (20 U.S.C. 8801).

     SEC. 305. REGULATORY PARITY.

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

     SEC. 306. AUTOMATED SHIP DISTRESS AND SAFETY SYSTEMS.

       Notwithstanding any provision of the Communications Act of 
     1934 or any other provision of law or regulation, a ship 
     documented under the laws of the United States operating in 
     accordance with the Global Maritime Distress and Safety 
     System provisions of the Safety of Life at Sea Convention 
     shall not be required to be equipped with a radio telegraphy 
     station operated by one or more radio officers or operators. 
     This section shall take effect for each vessel upon a 
     determination by the United States Coast Guard that such 
     vessel has the equipment required to implement the Global 
     Maritime Distress and Safety System installed and operating 
     in good working condition.

     SEC. 307. TELECOMMUNICATIONS NUMBERING ADMINISTRATION.

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

     ``SEC. 261. TELECOMMUNICATIONS NUMBERING ADMINISTRATION.

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

     SEC. 308. ACCESS BY PERSONS WITH DISABILITIES.

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

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

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

     SEC. 309. RURAL MARKETS.

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

     ``SEC. 263. RURAL MARKETS.

       ``(a) State Authority in Rural Markets.--Except as provided 
     in section 251(i)(3), a State may not waive or modify any 
     requirements of section 251, but may adopt statutes or 
     regulations that are no more restrictive than--
       ``(1) to require an enforceable commitment by each 
     competing provider of telecommunications service to offer 
     universal service comparable to that offered by the rural 
     telephone company currently providing service in that service 
     area, and to make such service available within 24 months of 
     the approval date to all consumers throughout that service 
     area on a common carrier basis, either using the applicant's 
     facilities or 

[[Page S8588]]
     through its own facilities and resale of services using another 
     carrier's facilities (including the facilities of the rural 
     telephone company), and subject to the same terms, 
     conditions, and rate structure requirements as those 
     applicable to the rural telephone company currently providing 
     universal service;
       ``(2) to require that the State must approve an application 
     by a competing telecommunications carrier to provide services 
     in a market served by a rural telephone company and that 
     approval be based on sufficient written public findings and 
     conclusions to demonstrate that such approval is in the 
     public interest and that there will not be a significant 
     adverse impact on users of telecommunications services or on 
     the provision of universal service;
       ``(3) to encourage the development and deployment of 
     advanced telecommunications and information infrastructure 
     and services in rural areas; or
       ``(4) to protect the public safety and welfare, ensure the 
     continued quality of telecommunications and information 
     services, or safeguard the rights of consumers.
       ``(b) Preemption.--Upon a proper showing, the Commission 
     may preempt any State statute or regulation that the 
     Commission finds to be inconsistent with the Commission's 
     regulations implementing this section, or an arbitrary or 
     unreasonably discriminatory application of such statute or 
     regulation. The Commission shall act upon any bona fide 
     petition filed under this subsection within 180 days of 
     receiving such petition. Pending such action, the Commission 
     may, in the public interest, suspend or modify application of 
     any statute or regulation to which the petition applies.''.

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

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

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

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

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

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

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

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

     SEC. 312. DIRECT BROADCAST SATELLITE.

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

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

     SEC. 401. SHORT TITLE.

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

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

       (a) Offenses.--Section 223 (47 U.S.C. 223) is amended--
       ``(1) by striking subsection (a) and inserting in lieu 
     thereof:
       ``(a) Whoever--
       ``(1) in the District of Columbia or in interstate or 
     foreign communications--
       ``(A) by means of telecommunications device knowingly--
       ``(i) makes, creates, or solicits, and
     
[[Page S8589]]

       ``(ii) initiates the transmission of,

     any comment, request, suggestion, proposal, image, or other 
     communication which is obscene, lewd, lascivious, filthy, or 
     indecent, with intent to annoy, abuse, threaten, or harass 
     another person;
       ``(B) makes a telephone call or utilizes a 
     telecommunications device, whether or not conversation or 
     communication ensues, without disclosing his identity and 
     with intent to annoy, abuse, threaten, or harass any person 
     at the called number or who receives the communications;
       ``(C) makes or causes the telephone of another repeatedly 
     or continuously to ring, with intent to harass any person at 
     the called number; or
       ``(D) makes repeated telephone calls or repeatedly 
     initiates communication with a telecommunications device, 
     during which conversation or communication ensues, solely to 
     harass any person at the called number or who receives the 
     communication;
       ``(2) knowingly permits any telecommunications facility 
     under his control to be used for any activity prohibited by 
     paragraph (1) with the intent that it be used for such 
     activity,

     shall be fined not more than $100,000 or imprisoned not more 
     than two years, or both.''; and
       (2) by adding at the end the following new subsections:
       ``(d) Whoever--
       ``(1) knowingly within the United States or in foreign 
     communications with the United States by means of 
     telecommunications device makes or makes available any 
     obscene communication in any form including any comment, 
     request, suggestion, proposal, or image regardless of whether 
     the maker of such communication placed the call or initiated 
     the communications; or
       ``(2) knowingly permits any telecommunications facility 
     under such person's control to be used for an activity 
     prohibited by subsection (d)(1) with the intent that it be 
     used for such activity;

     shall be fined not more than $100,000 or imprisoned not more 
     than two years, or both.
       ``(e) Whoever--
       ``(1) knowingly within the United States or in foreign 
     communications with the United States by means of 
     telecommunications device makes or makes available any 
     indecent communication in any form including any comment, 
     request, suggestion, proposal, image, to any person under 18 
     years of age regardless of whether the maker of such 
     communication placed the call or initiated the communication; 
     or
       ``(2) knowingly permits any telecommunications facility 
     under such person's control to be used for an activity 
     prohibited by paragraph (1) with the intent that it be used 
     for such activity,

     shall be fined not more than $100,000 or imprisoned not more 
     than two years, or both.
       ``(f) Defenses to the subsections (a), (d), and (e), 
     restrictions on access, judicial remedies respecting 
     restrictions for persons providing information services and 
     access to information services--
       ``(1) No person shall be held to have violated subsections 
     (a), (d), or (e) solely for providing access or connection to 
     or from a facility, system, or network over which that person 
     has no control, including related capabilities which are 
     incidental to providing access or connection. This subsection 
     shall not be applicable to a person who is owned or 
     controlled by, or a conspirator with, an entity actively 
     involved in the creation, editing or knowing distribution of 
     communications which violate this section.
       ``(2) No employer shall be held liable under this section 
     for the actions of an employee or agent unless the employee's 
     or agent's conduct is within the scope of his employment or 
     agency and the employer has knowledge of, authorizes, or 
     ratifies the employee's or agent's conduct.
       ``(3) It is a defense to prosecution under subsection (a), 
     (d)(2), or (e) that a person has taken reasonable, effective 
     and appropriate actions in good faith to restrict or prevent 
     the transmission of, or access to a communication specified 
     in such subsections, or complied with procedures as the 
     Commission may prescribe in furtherance of this section. 
     Until such regulations become effective, it is a defense to 
     prosecution that the person has complied with the procedures 
     prescribed by regulation pursuant to subsection (b)(3). 
     Nothing in this subsection shall be construed to treat 
     enhanced information services as common carriage.
       ``(4) No cause of action may be brought in any court or 
     administrative agency against any person on account of any 
     activity which is not in violation of any law punishable by 
     criminal or civil penalty, which activity the person has 
     taken in good faith to implement a defense authorized under 
     this section or otherwise to restrict or prevent the 
     transmission of, or access to, a communication specified in 
     this section.
       ``(g) No State or local government may impose any liability 
     for commercial activities or actions by commercial entities 
     in connection with an activity or action which constitutes a 
     violation described in subsection (a)(2), (d)(2), or (e)(2) 
     that is inconsistent with the treatment of those activities 
     or actions under this section: Provided, however, That 
     nothing herein shall preclude any State or local government 
     from enacting and enforcing complementary oversight, 
     liability, and regulatory systems, procedures, and 
     requirements, so long as such systems, procedures, and 
     requirements govern only intrastate services and do not 
     result in the imposition of inconsistent rights, duties or 
     obligations on the provision of interstate services. Nothing 
     in this subsection shall preclude any State or local 
     government from governing conduct not covered by this 
     section.
       ``(h) Nothing in subsection (a), (d), (e), or (f) or in the 
     defenses to prosecution under (a), (d), or (e) shall be 
     construed to affect or limit the application or enforcement 
     of any other Federal law.
       ``(i) The use of the term `telecommunications device' in 
     this section shall not impose new obligations on (one-way) 
     broadcast radio or (one-way) broadcast television operators 
     licensed by the Commission or (one-way) cable service 
     registered with the Federal Communications Commission and 
     covered by obscenity and indecency provisions elsewhere in 
     this Act.
       ``(j) Within two years from the date of enactment and every 
     two years thereafter, the Commission shall report on the 
     effectiveness of this section.''.

     SEC. 403. OBSCENE PROGRAMMING ON CABLE TELEVISION.

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

     SEC. 404. BROADCASTING OBSCENE LANGUAGE ON RADIO.

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

     SEC. 405. SEPARABILITY.

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

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

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

     SEC. 407. SCRAMBLING OF CABLE CHANNELS FOR NONSUBSCRIBERS.

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

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

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

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

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

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

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

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

       (a) Public, Educational, and Governmental Channels.--
     Section 611(e) (47 U.S.C. 531(e)) is amended by inserting 
     before the period the following: ``, except a cable operator 
     may refuse to transmit any public access program or portion 
     of a public access program which contains obscenity, 
     indecency, or nudity''.
     
[[Page S8590]]

       (b) Cable Channels for Commercial Use.--Section 612(c)(2) 
     (47 U.S.C. 532(c)(2)) is amended by striking ``an operator'' 
     and inserting ``a cable operator may refuse to transmit any 
     leased access program or portion of a leased access program 
     which contains obscenity, indecency, or nudity''.

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

       (a) Availability of Tag Information.--In order--
       (1) to encourage the voluntary use of tags in the names, 
     addresses, or text of electronic files containing obscene, 
     indecent, or mature text or graphics that are made available 
     to the public through public information networks in order to 
     ensure the ready identification of files containing such text 
     or graphics;
       (2) to encourage developers of computer software that 
     provides access to or interface with a public information 
     network to develop software that permits users of such 
     software to block access to or interface with text or 
     graphics identified by such tags; and
       (3) to encourage the telecommunications industry and the 
     providers and users of public information networks to take 
     practical actions (including the establishment of a board 
     consisting of appropriate members of such industry, 
     providers, and users) to develop a highly effective means of 
     preventing the access of children through public information 
     networks to electronic files that contain such text or 
     graphics,

     the Secretary of Commerce shall take appropriate steps to 
     make information on the tags established and utilized in 
     voluntary compliance with this subsection available to the 
     public through public information networks.
       (b) Report.--Not later than 1 year after the date of the 
     enactment of this Act, the Comptroller General shall submit 
     to Congress a report on the tags established and utilized in 
     voluntary compliance with this section. The report shall--
       (1) describe the tags so established and utilized;
       (2) assess the effectiveness of such tags in preventing the 
     access of children to electronic files that contain obscene, 
     indecent, or mature text or graphics through public 
     information networks; and
       (3) provide recommendations for additional means of 
     preventing such access.
       (c) Definitions.--In this section:
       (1) The term ``public information network'' means the 
     Internet, electronic bulletin boards, and other electronic 
     information networks that are open to the public.
       (2) The term ``tag'' means a part or segment of the name, 
     address, or text of an electronic file.

                 TITLE V--PARENTAL CHOICE IN TELEVISION

     SEC. 501. SHORT TITLE.

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

     SEC. 502. FINDINGS.

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

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

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

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

       (a) Requirement.--Section 303 (47 U.S.C. 303), as amended 
     by this Act, is further amended by adding at the end the 
     following:
       ``(w) Require, in the case of apparatus designed to receive 
     television signals that are manufactured in the United States 
     or imported for use in the United States and that have a 
     picture screen 13 inches or greater in size (measured 
     diagonally), that such apparatus--
     
[[Page S8591]]

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

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

       (a) Regulations.--Section 330 (47 U.S.C. 330) is amended--
       (1) by redesignating subsection (c) as subsection (d); and
       (2) by adding after subsection (b) the following new 
     subsection (c):
       ``(c)(1) Except as provided in paragraph (2), no person 
     shall ship in interstate commerce, manufacture, assemble, or 
     import from any foreign country into the United States any 
     apparatus described in section 303(w) of this Act except in 
     accordance with rules prescribed by the Commission pursuant 
     to the authority granted by that section.
       ``(2) This subsection shall not apply to carriers 
     transporting apparatus referred to in paragraph (1) without 
     trading it.
       ``(3) The rules prescribed by the Commission under this 
     subsection shall provide performance standards for blocking 
     technology. Such rules shall require that all such apparatus 
     be able to receive transmitted rating signals which conform 
     to the signal and blocking specifications established by the 
     Commission.
       ``(4) As new video technology is developed, the Commission 
     shall take such action as the Commission determines 
     appropriate to ensure that blocking service continues to be 
     available to consumers.''.
       (b) Conforming Amendment.--Section 330(d), as redesignated 
     by subsection (a)(1), is amended by striking ``section 
     303(s), and section 303(u)'' and inserting in lieu thereof 
     ``and sections 303(s), 303(u), and 303(w)''.

      TITLE VI--NATIONAL EDUCATION TECHNOLOGY FUNDING CORPORATION

     SEC. 601. SHORT TITLE.

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

     SEC. 602. FINDINGS; PURPOSE.

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

     SEC. 603. DEFINITIONS.

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

     SEC. 604. ASSISTANCE FOR EDUCATION TECHNOLOGY PURPOSES.

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

     SEC. 605. AUDITS

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

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

       (a) Annual Report.--Not later than April 30 of each year, 
     the Corporation shall publish an annual report for the 
     preceding fiscal 

[[Page S8592]]
     year and submit that report to the President and the Congress. The 
     report shall include a comprehensive and detailed evaluation 
     of the Corporation's operations, activities, financial 
     condition, and accomplishments under this title and may 
     include such recommendations as the Corporation deems 
     appropriate.
       (b) Testimony Before Congress.--The members of the Board of 
     Directors, and officers, of the Corporation shall be 
     available to testify before appropriate committees of the 
     Congress with respect to the report described in subsection 
     (a), the report of any audit made by the Comptroller General 
     pursuant to this title, or any other matter which any such 
     committee may determine appropriate.

                  TITLE VII--MISCELLANEOUS PROVISIONS

     SEC. 701. SPECTRUM AUCTIONS.

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

[[Page S8593]]
     the date of enactment of this Act, the Commission shall allocate the 
     4635-4685 megahertz band transferred to the Commission under 
     section 113(b) of the National Telecommunications and 
     Information Administration Organization Act (47 U.S.C. 
     923(b)) for broadcast auxiliary uses.
       (2) Mandatory relocation of broadcast auxiliary uses.--
     Within 7 years after the date of enactment of this Act, all 
     licensees of broadcast auxiliary spectrum in the 2025-2075 
     megahertz band shall relocate into spectrum allocated by the 
     Commission under paragraph (1). The Commission shall assign 
     and grant licenses for use of the spectrum allocated under 
     paragraph (1)--
       (A) in a manner sufficient to permit timely completion of 
     relocation; and
       (B) without using a competitive bidding process.
       (3) Assigning recovered spectrum.--Within 5 years after the 
     date of enactment of this Act, the Commission shall allocate 
     the spectrum recovered in the 2025-2075 megahertz band under 
     paragraph (2) for use by new licensees for commercial mobile 
     services or other similar services after the relocation of 
     broadcast auxiliary licensees, and shall assign such licenses 
     by competitive bidding.

     SEC. 702. RENEWED EFFORTS TO REGULATE VIOLENT PROGRAMMING.

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

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

       (a) Findings.--Congress makes the following findings:
       (1) Reforms required by the Telephone Disclosure and 
     Dispute Resolution Act of 1992 have improved the reputation 
     of the pay-per-call industry and resulted in regulations that 
     have reduced the incidence of misleading practices that are 
     harmful to the public interest.
       (2) Among the successful reforms is a restriction on 
     charges being assessed for calls to 800 telephone numbers or 
     other telephone numbers advertised or widely understood to be 
     toll free.
       (3) Nevertheless, certain interstate pay-per-call 
     businesses are taking advantage of an exception in the 
     restriction on charging for information conveyed during a 
     call to a ``toll-free'' number to continue to engage in 
     misleading practices. These practices are not in compliance 
     with the intent of Congress in passing the Telephone 
     Disclosure and Dispute Resolution Act.
       (4) It is necessary for Congress to clarify that its intent 
     is that charges for information provided during a call to an 
     800 number or other number widely advertised and understood 
     to be toll free shall not be assessed to the calling party 
     unless the calling party agrees to be billed according to the 
     terms of a written subscription agreement or by other 
     appropriate means.
       (b) Prevention of Unfair Billing Practices.--
       (1) In general.--Section 228(c) (47 U.S.C. 228(c)) is 
     amended--
       (A) by striking out subparagraph (C) of paragraph (7) and 
     inserting in lieu thereof the following:
       ``(C) the calling party being charged for information 
     conveyed during the call unless--
       ``(i) the calling party has a written agreement (including 
     an agreement transmitted through electronic medium) that 
     meets the requirements of paragraph (8); or
       ``(ii) the calling party is charged for the information in 
     accordance with paragraph (9); or''; and
       (B) by adding at the end the following new paragraphs:
       ``(8) Subscription agreements for billing for information 
     provided via toll-free calls.--
       ``(A) In general.--For purposes of paragraph (7)(C), a 
     written subscription does not meet the requirements of this 
     paragraph unless the agreement specifies the material terms 
     and conditions under which the information is offered and 
     includes--
       ``(i) the rate at which charges are assessed for the 
     information;
       ``(ii) the information provider's name;
       ``(iii) the information provider's business address;
       ``(iv) the information provider's regular business 
     telephone number;
       ``(v) the information provider's agreement to notify the 
     subscriber of all future changes in the rates charged for the 
     information; and
       ``(vi) the subscriber's choice of payment method, which may 
     be by direct remit, debit, prepaid account, phone bill or 
     credit or calling card.
       ``(B) Billing arrangements.--If a subscriber elects, 
     pursuant to subparagraph (A)(vi), to pay by means of a phone 
     bill--
       ``(i) the agreement shall clearly explain that charges for 
     the service will appear on the subscriber's phone bill;
       ``(ii) the phone bill shall include, in prominent type, the 
     following disclaimer:

       `Common carriers may not disconnect local or long distance 
     telephone service for failure to pay disputed charges for 
     information services.'; and

       ``(iii) the phone bill shall clearly list the 800 number 
     dialed.
       ``(C) Use of pins to prevent unauthorized use.--A written 
     agreement does not meet the requirements of this paragraph 
     unless it requires the subscriber to use a personal 
     identification number to obtain access to the information 
     provided, and includes instructions on its use.
       ``(D) Exceptions.--Notwithstanding paragraph (7)(C), a 
     written agreement that meets the requirements of this 
     paragraph is not required--
       ``(i) for calls utilizing telecommunications devices for 
     the deaf;
       ``(ii) for services provided pursuant to a tariff that has 
     been approved or permitted to take effect by the Commission 
     or a State commission; or
       ``(iii) for any purchase of goods or of services that are 
     not information services.
       ``(E) Termination of service.--On receipt by a common 
     carrier of a complaint by any person that an information 
     provider is in violation of the provisions of this section, a 
     carrier shall--
       ``(i) promptly investigate the complaint; and
       ``(ii) if the carrier reasonably determines that the 
     complaint is valid, it may terminate the provision of service 
     to an information provider unless the provider supplies 
     evidence of a written agreement that meets the requirements 
     of this section.
       ``(F) Treatment of remedies.--The remedies provided in this 
     paragraph are in addition to any other remedies that are 
     available under title V of this Act.
       ``(9) Charges in absence of agreement.--A calling party is 
     charged for a call in accordance with this paragraph if the 
     provider of the information conveyed during the call--
       ``(A) clearly states to the calling party the total cost 
     per minute of the information provided during the call and 
     for any other information or service provided by the provider 
     to which the calling party requests connection during the 
     call; and
       ``(B) receives from the calling party--
       ``(i) an agreement to accept the charges for any 
     information or services provided by the provider during the 
     call; and
       ``(ii) a credit, calling, or charge card number or 
     verification of a prepaid account to which such charges are 
     to be billed.
       ``(10) Definition.--As used in paragraphs (8) and (9), the 
     term `calling card' means an identifying number or code 
     unique to the individual, that is issued to the individual by 
     a common carrier and enables the individual to be charged by 
     means of a phone bill for charges incurred independent of 
     where the call originates.''
       (2) Regulations.--The Federal Communications Commission 
     shall revise its regulations to comply with the amendment 
     made by paragraph (1) not later than 180 days after the date 
     of the enactment of this Act.
       (3) Effective date.--The amendments made by paragraph (1) 
     shall take effect on the date of the enactment of this Act.
       (c) Clarification of ``Pay-Per-Call Services'' Under 
     Telephone Disclosure and Dispute Resolution Act.--Section 
     204(1) of the Telephone Disclosure and Dispute Resolution Act 
     (15 U.S.C. 5714(1)) is amended to read as follows:
       ``(1) The term `pay-per-call services' has the meaning 
     provided in section 228(j)(1) of the Communications Act of 
     1934, except that the Commission by rule may, notwithstanding 
     subparagraphs (B) and (C) of such section, extend such 
     definition to other similar services providing audio 
     information or audio entertainment if the Commission 
     determines that such services are susceptible 

[[Page S8594]]
     to the unfair and deceptive practices that are prohibited by the rules 
     prescribed pursuant to section 201(a).''.

     SEC. 704. DISCLOSURE OF CERTAIN RECORDS FOR INVESTIGATIONS OF 
                   TELE- MARKETING FRAUD.

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

     SEC. 705. TELECOMMUTING PUBLIC INFORMATION PROGRAM.

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

     SEC. 706. AUTHORITY TO ACQUIRE CABLE SYSTEMS.

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

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