Congressional Record, Volume 141 Issue 129 (Friday, August 4, 1995)

[Congressional Record Volume 141, Number 129 (Friday, August 4, 1995)]
[House]
[Pages H8425-H8460]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

COMMUNICATIONS ACT OF 1995

The SPEAKER pro tempore (Mr. Bunn). Pursuant to House Resolution 207
and rule XXIII, the Chair declares the House in the Committee of the
Whole House on the State of the Union for the further consideration of
the bill, H.R. 1555.

{time} 0802

In the Committee of the Whole

Accordingly the House resolved itself into the Committee of the Whole
House on the State of the Union for the further consideration of the
bill (H.R. 1555) to promote competition and reduce regulation in order
to secure lower prices and higher quality services for American
telecommunications consumers and encourage the rapid deployment of new
telecommunications technologies, with Mr. Kolbe in the chair.
The Clerk read the title of the bill.
The CHAIRMAN (Mr. Kolbe). When the Committee of the Whole House rose
on Wednesday, August 2, 1995, all time for general debate had expired.
Pursuant to the rule, the amendment in the nature of a substitute
printed in the bill is considered as an original bill for the purpose
of amendment and is considered read.

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[[Page H 8426]]

The text of the committee amendment in the nature of a substitute is
as follows:
H.R. 1555

Be it enacted by the Senate and House of Representatives of
the United States of America in Congress assembled,
SECTION 1. SHORT TITLE; REFERENCES; TABLE OF CONTENTS.

(a) Short Title.--This Act may be cited as the
``Communications Act of 1995''.
(b) References.--References in this Act to ``the Act'' are
references to the Communications Act of 1934.
(c) Table of Contents.--

Sec. 1. Short title; table of contents.

TITLE I--DEVELOPMENT OF COMPETITIVE TELECOMMUNICATIONS MARKETS

Sec. 101. Establishment of part II of title II.

``Part II--Development of Competitive Markets

``Sec. 241. Interconnection.
``Sec. 242. Equal access and interconnection to the local loop for
competing providers.
``Sec. 243. Preemption.
``Sec. 244. Statements of terms and conditions for access and
interconnection.
``Sec. 245. Bell operating company entry into interLATA services.
``Sec. 246. Competitive safeguards.
``Sec. 247. Universal service.
``Sec. 248. Pricing flexibility and abolition of rate-of-return
regulation.
``Sec. 249. Network functionality and accessibility.
``Sec. 250. Market entry barriers.
``Sec. 251. Illegal changes in subscriber carrier selections.
``Sec. 252. Study.
``Sec. 253. Territorial exemption.''.
Sec. 102. Competition in manufacturing, information services, alarm
services, and pay phone services.

``Part III--Special and Temporary Provisions

``Sec. 271. Manufacturing by Bell operating companies.
``Sec. 272. Electronic publishing by Bell operating companies.
``Sec. 273. Alarm monitoring and telemessaging services by Bell
operating companies.
``Sec. 274. Provision of payphone service.''.
Sec. 103. Forbearance from regulation.
``Sec. 230. Forbearance from regulation.''.
Sec. 104. Privacy of customer information.
``Sec. 222. Privacy of customer proprietary network information.''.
Sec. 105. Pole attachments.
Sec. 106. Preemption of franchising authority regulation of
telecommunications services.
Sec. 107. Facilities siting; radio frequency emission standards.
Sec. 108. Mobile service access to long distance carriers.
Sec. 109. Freedom from toll fraud.
Sec. 110. Report on means of restricting access to unwanted material in
interactive telecommunications systems.
Sec. 111. Authorization of appropriations.

TITLE II--CABLE COMMUNICATIONS COMPETITIVENESS

Sec. 201. Cable service provided by telephone companies.

``Part V--Video Programming Services Provided by Telephone Companies

``Sec. 651. Definitions.
``Sec. 652. Separate video programming affiliate.
``Sec. 653. Establishment of video platform.
``Sec. 654. Authority to prohibit cross-subsidization.
``Sec. 655. Prohibition on buy outs.
``Sec. 656. Applicability of parts I through IV.
``Sec. 657. Rural area exemption.''.
Sec. 202. Competition from cable systems.
Sec. 203. Competitive availability of navigation devices.
``Sec. 713. Competitive availability of navigation devices.''.
Sec. 204. Video programming accessibility.
Sec. 205. Technical amendments.

TITLE III--BROADCAST COMMUNICATIONS COMPETITIVENESS

Sec. 301. Broadcaster spectrum flexibility.
``Sec. 336. Broadcast spectrum flexibility.''.
Sec. 302. Broadcast ownership.
``Sec. 337. Broadcast ownership.''.
Sec. 303. Foreign investment and ownership.
Sec. 304. Term of licenses.
Sec. 305. Broadcast license renewal procedures.
Sec. 306. Exclusive Federal jurisdiction over direct broadcast
satellite service.
Sec. 307. Automated ship distress and safety systems.
Sec. 308. Restrictions on over-the-air reception devices.
Sec. 309. DBS signal security.

TITLE IV--EFFECT ON OTHER LAWS

Sec. 401. Relationship to other laws.
Sec. 402. Preemption of local taxation with respect to DBS services.

TITLE V--DEFINITIONS

Sec. 501. Definitions.

TITLE VI--SMALL BUSINESS COMPLAINT PROCEDURE

Sec. 601. Complaint procedure.
TITLE I--DEVELOPMENT OF COMPETITIVE TELECOMMUNICATIONS MARKETS

SEC. 101. ESTABLISHMENT OF PART II OF TITLE II.

(a) Amendment.--Title II of the Act is amended by inserting
after section 229 (47 U.S.C. 229) the following new part:

``PART II--DEVELOPMENT OF COMPETITIVE MARKETS

``SEC. 241. INTERCONNECTION.

``The duty of a common carrier under section 201(a)
includes the duty to interconnect with the facilities and
equipment of other providers of telecommunications services
and information services.

``SEC. 242. EQUAL ACCESS AND INTERCONNECTION TO THE LOCAL
LOOP FOR COMPETING PROVIDERS.

``(a) Openness and Accessibility Obligations.--The duty
under section 201(a) of a local exchange carrier includes the
following duties:
``(1) Interconnection.--The duty to provide, in accordance
with subsection (b), equal access to and interconnection with
the facilities of the carrier's networks to any other carrier
or person offering (or seeking to offer) telecommunications
services or information services reasonably requesting such
equal access and interconnection, so that such networks are
fully interoperable with such telecommunications services and
information services. For purposes of this paragraph, a
request is not reasonable unless it contains a proposed plan,
including a reasonable schedule, for the implementation of
the requested access or interconnection.
``(2) Unbundling of network elements.--The duty to offer
unbundled services, elements, features, functions, and
capabilities whenever technically feasible, at just,
reasonable, and nondiscriminatory prices and in accordance
with subsection (b)(4).
``(3) Resale.--The duty to offer services, elements,
features, functions, and capabilities for resale at
economically feasible rates to the reseller, recognizing
pricing structures for telephone exchange service in the
State, and the duty not to prohibit, and not to impose
unreasonable or discriminatory conditions or limitations on,
the resale, on a bundled or unbundled basis, of services,
elements, features, functions, and capabilities in
conjunction with the furnishing of a telecommunications
service or an information service.
``(4) Number portability.--The duty to provide, to the
extent technically feasible, number portability in accordance
with requirements prescribed by the Commission.
``(5) Dialing parity.--The duty to provide, in accordance
with subsection (c), dialing parity to competing providers of
telephone exchange service and telephone toll service.
``(6) Access to rights-of-way.--The duty to afford access
to the poles, ducts, conduits, and rights-of-way of such
carrier to competing providers of telecommunications services
in accordance with section 224(d).
``(7) Network functionality and accessibility.--The duty
not to install network features, functions, or capabilities
that do not comply with any standards established pursuant to
section 249.
``(8) Good faith negotiation.--The duty to negotiate in
good faith, under the supervision of State commissions, the
particular terms and conditions of agreements to fulfill the
duties described in paragraphs (1) through (7). The other
carrier or person requesting interconnection shall also be
obligated to negotiate in good faith the particular terms and
conditions of agreements to fulfill the duties described in
paragraphs (1) through (7).
``(b) Interconnection, Compensation, and Equal Access.--
``(1) Interconnection.--A local exchange carrier shall
provide access to and interconnection with the facilities of
the carrier's network at any technically feasible point
within the carrier's network on just and reasonable terms and
conditions, to any other carrier or person offering (or
seeking to offer) telecommunications services or information
services requesting such access.
``(2) Intercarrier compensation between facilities-based
carriers.--
``(A) In general.--For the purposes of paragraph (1), the
terms and conditions for interconnection of the network
facilities of a competing provider of telephone exchange
service shall not be considered to be just and reasonable
unless--
``(i) such terms and conditions provide for the mutual and
reciprocal recovery by each carrier of costs associated with
the termination on such carrier's network facilities of calls
that originate on the network facilities of the other
carrier;
``(ii) such terms and conditions determine such costs on
the basis of a reasonable approximation of the additional
costs of terminating such calls; and
``(iii) the recovery of costs permitted by such terms and
conditions are reasonable in relation to the prices for
termination of calls that would prevail in a competitive
market.
``(B) Rules of construction.--This paragraph shall not be
construed--
``(i) to preclude arrangements that afford such mutual
recovery of costs through the offsetting of reciprocal
obligations, including arrangements that waive mutual
recovery (such as bill-and-keep arrangements); or
``(ii) to authorize the Commission or any State commission
to engage in any rate regulation proceeding to establish with
particularity the additional costs of terminating calls, or
to require carriers to maintain records with respect to the
additional costs of terminating calls.
``(3) Equal access.--A local exchange carrier shall afford,
to any other carrier or person offering (or seeking to offer)
a telecommunications service or an information service,
reasonable and nondiscriminatory access on an unbundled
basis--
``(A) to databases, signaling systems, billing and
collection services, poles, ducts, conduits, and rights-of-
way owned or controlled by a

[[Page H 8427]]
local exchange carrier, or other facilities, functions, or information
(including subscriber numbers) integral to the efficient
transmission, routing, or other provision of telephone
exchange services or exchange access;
``(B) that is equal in type and quality to the access which
the carrier affords to itself or to any other person, and is
available at nondiscriminatory prices; and
``(C) that is sufficient to ensure the full
interoperability of the equipment and facilities of the
carrier and of the person seeking such access.
``(4) Commission action required.--
``(A) In general.--Within 15 months after the date of
enactment of this part, the Commission shall complete all
actions necessary (including any reconsideration) to
establish regulations to implement the requirements of this
section. The Commission shall establish such regulations
after consultation with the Joint Board established pursuant
to section 247.
``(B) Collocation.--Such regulations shall provide for
actual collocation of equipment necessary for interconnection
for telecommunications services at the premises of a local
exchange carrier, except that the regulations shall provide
for virtual collocation where the local exchange carrier
demonstrates that actual collocation is not practical for
technical reasons or because of space limitations.
``(C) User payment of costs.--Such regulations shall
require that the costs that a carrier incurs in offering
access, interconnection, number portability, or unbundled
services, elements, features, functions, and capabilities
shall be borne by the users of such access, interconnection,
number portability, or services, elements, features,
functions, and capabilities.
``(D) Imputed charges to carrier.--Such regulations shall
require the carrier, to the extent it provides a
telecommunications service or an information service that
requires access or interconnection to its network facilities,
to impute such access and interconnection charges to itself.
``(c) Number Portability and Dialing Parity.--
``(1) Availability.--A local exchange carrier shall ensure
that--
``(A) number portability shall be available on request in
accordance with subsection (a)(4); and
``(B) dialing parity shall be available upon request,
except that, in the case of a Bell operating company, such
company shall ensure that dialing parity for intraLATA
telephone toll service shall be available not later than the
date such company is authorized to provide interLATA
services.
``(2) Number administration.--The Commission shall
designate one or more impartial entities to administer
telecommunications numbering and to make such numbers
available on an equitable basis. The Commission shall have
exclusive jurisdiction over those portions of the North
American Numbering Plan that pertain to the United States.
Nothing in this paragraph shall preclude the Commission from
delegating to State commissions or other entities any portion
of such jurisdiction.
``(d) Joint Marketing of Resold Elements.--
``(1) Restriction.--Except as provided in paragraph (2), no
service, element, feature, function, or capability that is
made available for resale in any State by a Bell operating
company may be jointly marketed directly or indirectly with
any interLATA telephone toll service until such Bell
operating company is authorized pursuant to section 245(d) to
provide interLATA services in such State.
``(2) Existing providers.--Paragraph (1) shall not prohibit
joint marketing of services, elements, features, functions,
or capabilities acquired from a Bell operating company by
another provider if that provider jointly markets services,
elements, features, functions, and capabilities acquired from
a Bell operating company anywhere in the telephone service
territory of such Bell operating company, or in the telephone
service territory of any affiliate of such Bell operating
company that provides telephone exchange service, pursuant to
any agreement, tariff, or other arrangement entered into or
in effect before the date of enactment of this part.
``(e) Modifications and Waivers.--The Commission may modify
or waive the requirements of this section for any local
exchange carrier (or class or category of such carriers) that
has, in the aggregate nationwide, fewer than 500,000 access
lines installed, to the extent that the Commission determines
that compliance with such requirements (without such
modification) would be unduly economically burdensome,
technologically infeasible, or otherwise not in the public
interest.
``(f) Waiver for Rural Telephone Companies.--A State
commission may waive the requirements of this section with
respect to any rural telephone company.
``(g) Exemption for Certain Rural Telephone Companies.--
Subsections (a) through (d) of this section shall not apply
to a carrier that has fewer than 50,000 access lines in a
local exchange study area, if such carrier does not provide
video programming services over its telephone exchange
facilities in such study area, except that a State commission
may terminate the exemption under this subsection if the
State commission determines that the termination of such
exemption is consistent with the public interest,
convenience, and necessity.
``(h) Avoidance of Redundant Regulations.--Nothing in this
section shall be construed to prohibit the Commission or any
State commission from enforcing regulations prescribed prior
to the date of enactment of this part in fulfilling the
requirements of this section, to the extent that such
regulations are consistent with the provisions of this
section.

``SEC. 243. PREEMPTION.

``(a) Removal of Barriers to Entry.--Except as provided in
subsection (b) of this section, no State or local statute,
regulation, or other legal requirement shall--
``(1) effectively prohibit any carrier or other person from
entering the business of providing interstate or intrastate
telecommunications services or information services; or
``(2) effectively prohibit any carrier or other person
providing (or seeking to provide) interstate or intrastate
telecommunications services or information services from
exercising the access and interconnection rights provided
under this part.
``(b) State and Local Authority.--Nothing in this section
shall affect the ability of State or local officials to
impose, on a nondiscriminatory basis, requirements necessary
to preserve and advance universal service, protect the public
safety and welfare, ensure the continued quality of
telecommunications services, ensure that a provider's
business practices are consistent with consumer protection
laws and regulations, and ensure just and reasonable rates,
provided that such requirements do not effectively prohibit
any carrier or person from providing interstate or intrastate
telecommunications services or information services.
``(c) Construction Permits.--Subsection (a) shall not be
construed to prohibit a local government from requiring a
person or carrier to obtain ordinary and usual construction
or similar permits for its operations if--
``(1) such permit is required without regard to the nature
of the business; and
``(2) requiring such permit does not effectively prohibit
any person or carrier from providing any interstate or
intrastate telecommunications service or information service.
``(d) Exception.--In the case of commercial mobile
services, the provisions of section 332(c)(3) shall apply in
lieu of the provisions of this section.
``(e) Parity of Franchise and Other Charges.--
Notwithstanding section 2(b), no local government may impose
or collect any franchise, license, permit, or right-of-way
fee or any assessment, rental, or any other charge or
equivalent thereof as a condition for operating in the
locality or for obtaining access to, occupying, or crossing
public rights-of-way from any provider of telecommunications
services that distinguishes between or among providers of
telecommunications services, including the local exchange
carrier. For purposes of this subsection, a franchise,
license, permit, or right-of-way fee or an assessment,
rental, or any other charge or equivalent thereof does not
include any imposition of general applicability which does
not distinguish between or among providers of
telecommunications services, or any tax.

``SEC. 244. STATEMENTS OF TERMS AND CONDITIONS FOR ACCESS AND
INTERCONNECTION.

``(a) In General.--Within 18 months after the date of
enactment of this part, and from time to time thereafter, a
local exchange carrier shall prepare and file with a State
commission statements of the terms and conditions that such
carrier generally offers within that State with respect to
the services, elements, features, functions, or capabilities
provided to comply with the requirements of section 242 and
the regulations thereunder. Any such statement pertaining to
the charges for interstate services, elements, features,
functions, or capabilities shall be filed with the
Commission.
``(b) Review.--
``(1) State commission review.--A State commission to which
a statement is submitted under subsection (a) shall review
such statement in accordance with State law. A State
commission may not approve such statement unless such
statement complies with section 242 and the regulations
thereunder. Except as provided in section 243, nothing in
this section shall prohibit a State commission from
establishing or enforcing other requirements of State law in
its review of such statement, including requiring compliance
with intrastate telecommunications service quality standards
or requirements.
``(2) FCC review.--The Commission shall review such
statements to ensure that--
``(A) the charges for interstate services, elements,
features, functions, or capabilities are just, reasonable,
and nondiscriminatory; and
``(B) the terms and conditions for such interstate services
or elements unbundle any separable services, elements,
features, functions, or capabilities in accordance with
section 242(a)(2) and any regulations thereunder.
``(c) Time for Review.--
``(1) Schedule for review.--The Commission and the State
commission to which a statement is submitted shall, not later
than 60 days after the date of such submission--
``(A) complete the review of such statement under
subsection (b) (including any reconsideration thereof),
unless the submitting carrier agrees to an extension of the
period for such review; or
``(B) permit such statement to take effect.
``(2) Authority to continue review.--Paragraph (1) shall
not preclude the Commission or a State commission from
continuing to review a statement that has been permitted to
take effect under subparagraph (B) of such paragraph.
``(d) Effect of Agreements.--Nothing in this section shall
prohibit a carrier from filing an agreement to provide
services, elements, features, functions, or capabilities
affording access and interconnection as a statement of terms
and conditions that the carrier generally offers for purposes
of this section. An agreement affording access and
interconnection shall not be approved under this section
unless the agreement contains a plan, including a reasonable
schedule, for the implementation of the requested access or
interconnection. The approval of a statement under this
section shall not operate to prohibit a carrier from entering
into subsequent

[[Page H 8428]]
agreements that contain terms and conditions that differ from those
contained in a statement that has been reviewed and approved
under this section, but--
``(1) each such subsequent agreement shall be filed under
this section; and
``(2) such carrier shall be obligated to offer access to
such services, elements, features, functions, or capabilities
to other carriers and persons (including carriers and persons
covered by previously approved statements) requesting such
access on terms and conditions that, in relation to the terms
and conditions in such subsequent agreements, are not
discriminatory.
``(e) Sunset.--The provisions of this section shall cease
to apply in any local exchange market, defined by geographic
area and class or category of service, that the Commission
and the State determines has become subject to full and open
competition.
``SEC. 245. BELL OPERATING COMPANY ENTRY INTO INTERLATA
SERVICES.

``(a) Verification of Access and Interconnection
Compliance.--At any time after 18 months after the date of
enactment of this part, a Bell operating company may provide
to the Commission verification by such company with respect
to one or more States that such company is in compliance with
the requirements of this part. Such verification shall
contain the following:
``(1) Certification.--A certification by each State
commission of such State or States that such carrier has
fully implemented the conditions described in subsection (b),
except as provided in subsection (d)(2).
``(2) Agreement or statement.--For each such State, either
of the following:
``(A) Presence of a facilities-based competitor.--An
agreement that has been approved under section 244 specifying
the terms and conditions under which the Bell operating
company is providing access and interconnection to its
network facilities in accordance with section 242 for an
unaffiliated competing provider of telephone exchange service
that is comparable in price, features, and scope and that is
provided over the competitor's own network facilities to
residential and business subscribers.
``(B) Failure to request access.--If no such provider has
requested such access and interconnection before the date
which is 3 months before the date the company makes its
submission under this subsection, a statement of the terms
and conditions that the carrier generally offers to provide
such access and interconnection that has been approved or
permitted to take effect by the State commission under
section 243.

For purposes of subparagraph (B), a Bell operating company
shall be considered not to have received any request for
access or interconnection if the State commission of such
State or States certifies that the only provider or providers
making such request have (i) failed to bargain in good faith
under the supervision of such State commission pursuant to
section 242(a)(8), or (ii) have violated the terms of their
agreement by failure to comply, within a reasonable period of
time, with the implementation schedule contained in such
agreement.
``(b) Certification of Compliance With Part II.--For the
purposes of subsection (a)(1), a Bell operating company shall
submit to the Commission a certification by a State
commission of compliance with each of the following
conditions in any area where such company provides local
exchange service or exchange access in such State:
``(1) Interconnection.--The Bell operating company provides
access and interconnection in accordance with subsections
(a)(1) and (b) of section 242 to any other carrier or person
offering telecommunications services requesting such access
and interconnection, and complies with the Commission
regulations pursuant to such section concerning such access
and interconnection.
``(2) Unbundling of network elements.--The Bell operating
company provides unbundled services, elements, features,
functions, and capabilities in accordance with subsection
(a)(2) of section 242 and the regulations prescribed by the
Commission pursuant to such section.
``(3) Resale.--The Bell operating company offers services,
elements, features, functions, and capabilities for resale in
accordance with section 242(a)(3), and neither the Bell
operating company, nor any unit of State or local government
within the State, imposes any restrictions on resale or
sharing of telephone exchange service (or unbundled services,
elements, features, or functions of telephone exchange
service) in violation of section 242(a)(3).
``(4) Number portability.--The Bell operating company
provides number portability in compliance with the
Commission's regulations pursuant to subsections (a)(4) and
(c) of section 242.
``(5) Dialing parity.--The Bell operating company provides
dialing parity in accordance with subsections (a)(5) and (c)
of section 242, and will, not later than the effective date
of its authority to commence providing interLATA services,
take such actions as are necessary to provide dialing parity
for intraLATA telephone toll service in accordance with such
subsections.
``(6) Access to conduits and rights of way.--The poles,
ducts, conduits, and rights of way of such Bell operating
company are available to competing providers of
telecommunications services in accordance with the
requirements of sections 242(a)(6) and 224(d).
``(7) Elimination of franchise limitations.--No unit of the
State or local government in such State or States enforces
any prohibition or limitation in violation of section 243.
``(8) Network functionality and accessibility.--The Bell
operating company will not install network features,
functions, or capabilities that do not comply with the
standards established pursuant to section 249.
``(9) Negotiation of terms and conditions.--The Bell
operating company has negotiated in good faith, under the
supervision of the State commission, in accordance with the
requirements of section 242(a)(8) with any other carrier or
person requesting access or interconnection.
``(c) Application for Interim InterLATA Authority.--
``(1) Application submission and contents.--At any time
after the date of enactment of this part, and prior to the
completion by the Commission of all actions necessary to
establish regulations under section 242, a Bell operating
company may apply to the Commission for interim authority to
provide interLATA services. Such application shall specify
the LATA or LATAs for which the company is requesting
authority to provide interim interLATA services. Such
application shall contain, with respect to each LATA within a
State for which authorization is requested, the following:
``(A) Presence of a facilities-based competitor.--An
agreement that the State commission has determined complies
with section 242 (without regard to any regulations
thereunder) and that specifies the terms and conditions under
which the Bell operating company is providing access and
interconnection to its network facilities for an unaffiliated
competing provider of telephone exchange service that is
comparable in price, features, and scope and that is provided
over the competitor's own network facilities to residential
and business subscribers.
``(B) Certification.--A certification by the State
commission of the State within which such LATA is located
that such company is in compliance with State laws, rules,
and regulations providing for the implementation of the
standards described in subsection (b) as of the date of
certification, including certification that such company is
offering services, elements, features, functions, and
capabilities for resale at economically feasible rates to the
reseller, recognizing pricing structures for telephone
exchange service in such State.
``(2) State to participate.--The company shall serve a copy
of the application on the relevant State commission within 5
days of filing its application. The State shall file comments
to the Commission on the company's application within 40 days
of receiving a copy of the company's application.
``(3) Deadlines for commission action.--The Commission
shall make a determination on such application not more than
90 days after such application is filed.
``(4) Expiration of interim authority.--Any interim
authority granted pursuant to this subsection shall cease to
be effective 180 days after the completion by the Commission
of all actions necessary to establish regulations under
section 242.
``(d) Commission Review.--
``(1) Review of state decisions and certifications.--The
Commission shall review any verification submitted by a Bell
operating company pursuant to subsection (a). The Commission
may require such company to submit such additional
information as is necessary to validate any of the items of
such verification.
``(2) De novo review.--If--
``(A) a State commission does not have the jurisdiction or
authority to make the certification required by subsection
(b);
``(B) the State commission has failed to act within 90 days
after the date a request for such certification is filed with
such State commission; or
``(C) the State commission has sought to impose a term or
condition in violation of section 243;

the local exchange carrier may request the Commission to
certify the carrier's compliance with the conditions
specified in subsection (b).
``(3) Time for decision; public comment.--Unless such Bell
operating company consents to a longer period of time, the
Commission shall approve, disapprove, or approve with
conditions such verification within 90 days after the date of
its submission. During such 90 days, the Commission shall
afford interested persons an opportunity to present
information and evidence concerning such verification.
``(4) Standard for decision.--The Commission shall not
approve such verification unless the Commission determines
that--
``(A) the Bell operating company meets each of the
conditions required to be certified under subsection (b); and
``(B) the agreement or statement submitted under subsection
(a)(2) complies with the requirements of section 242 and the
regulations thereunder.
``(e) Enforcement of Conditions.--
``(1) Commission authority.--If at any time after the
approval of a verification under subsection (d), the
Commission determines that a Bell operating company has
ceased to meet any of the conditions required to be certified
under subsection (b), the Commission may, after notice and
opportunity for a hearing--
``(A) issue an order to such company to correct the
deficiency;
``(B) impose a penalty on such company pursuant to title V;
or
``(C) suspend or revoke such approval.
``(2) Receipt and review of complaints.--The Commission
shall establish procedures for the review of complaints
concerning failures by Bell operating companies to meet
conditions required to be certified under subsection (b).
Unless the parties otherwise agree, the Commission shall act
on such complaint within 90 days.
``(3) State authority.--The authority of the Commission
under this subsection shall not be construed to preempt any
State commission from taking actions to enforce the
conditions required to be certified under subsection (b).
``(f) Authority To Provide InterLATA Services.--

[[Page H 8429]]

``(1) Prohibition.--Except as provided in paragraph (2) and
subsections (g) and (h), a Bell operating company or
affiliate thereof may not provide interLATA services.
``(2) Authority subject to certification.--A Bell operating
company or affiliate thereof may, in any States to which its
verification under subsection (a) applies, provide interLATA
services--
``(A) during any period after the effective date of the
Commission's approval of such verification pursuant to
subsection (d), and
``(B) until the approval of such verification is suspended
or revoked by the Commission pursuant to subsection (d).
``(g) Exception for Previously Authorized Activities.--
Subsection (f) shall not prohibit a Bell operating company or
affiliate from engaging, at any time after the date of the
enactment of this part, in any activity as 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--
``(1) such order was entered on or before the date of the
enactment of this part, or
``(2) a request for such authorization was pending before
such court on the date of the enactment of this part.
``(h) Exceptions for Incidental Services.--Subsection (f)
shall not prohibit a Bell operating company or affiliate
thereof, at any time after the date of the enactment of this
part, from providing interLATA services for the purpose of--
``(1)(A) providing audio programming, video programming, or
other programming services to subscribers to such services of
such company;
``(B) providing the capability for interaction by such
subscribers to select or respond to such audio programming,
video programming, or other programming services; or
``(C) providing to distributors audio programming or video
programming that such company owns or controls, or is
licensed by the copyright owner of such programming (or by an
assignee of such owner) to distribute;
``(2) providing a telecommunications service, using the
transmission facilities of a cable system that is an
affiliate of such company, between local access and transport
areas within a cable system franchise area in which such
company is not, on the date of the enactment of this part, a
provider of wireline telephone exchange service;
``(3) providing commercial mobile services in accordance
with section 332(c) of this Act and with the regulations
prescribed by the Commission pursuant to paragraph (8) of
such section;
``(4) providing a service that permits a customer that is
located in one local access and transport area to retrieve
stored information from, or file information for storage in,
information storage facilities of such company that are
located in another local access and transport area;
``(5) providing signaling information used in connection
with the provision of telephone exchange services to a local
exchange carrier that, together with any affiliated local
exchange carriers, has aggregate annual revenues of less than
$100,000,000; or
``(6) providing network control signaling information to,
and receiving such signaling information from, common
carriers offering interLATA services at any location within
the area in which such Bell operating company provides
telephone exchange services or exchange access.
``(i) IntraLATA Toll Dialing Parity.--Neither the
Commission nor any State may order any Bell operating company
to provide dialing parity for intraLATA telephone toll
service in any State before the date such company is
authorized to provide interLATA services in such State
pursuant to this section.
``(j) Forbearance.--The Commission may not, pursuant to
section 230, forbear from applying any provision of this
section or any regulation thereunder until at least 5 years
after the date of enactment of this part.
``(k) Sunset.--The provisions of this section shall cease
to apply in any local exchange market, defined by geographic
area and class or category of service, that the Commission
and the State determines has become subject to full and open
competition.
``(l) Definitions.--As used in this section--
``(1) Audio programming.--The term `audio programming'
means programming provided by, or generally considered
comparable to programming provided by, a radio broadcast
station.
``(2) Video programming.--The term `video programming' has
the meaning provided in section 602.
``(3) Other programming services.--The term `other
programming services' means information (other than audio
programming or video programming) that the person who offers
a video programming service makes available to all
subscribers generally. For purposes of the preceding
sentence, the terms `information' and `makes available to all
subscribers generally' have the same meaning such terms have
under section 602(13) of this Act.
``SEC. 246. COMPETITIVE SAFEGUARDS.

``(a) In General.--In accordance with the requirements of
this section and the regulations adopted thereunder, a Bell
operating company or any affiliate thereof providing any
interLATA telecommunications or information service, shall do
so through a subsidiary that is separate from the Bell
operating company or any affiliate thereof that provides
telephone exchange service.
``(b) Transaction Requirements.--Any transaction between
such a subsidiary and a Bell operating company and any other
affiliate of such company shall be conducted on an arm's-
length basis, in the same manner as the Bell operating
company conducts business with unaffiliated persons, and
shall not be based upon any preference or discrimination in
favor of the subsidiary arising out of the subsidiary's
affiliation with such company.
``(c) Separate Operation and Property.--A subsidiary
required by this section shall--
``(1) operate independently from the Bell operating company
or any affiliate thereof,
``(2) have separate officers, directors, and employees who
may not also serve as officers, directors,
or employees of the Bell operating company or any affiliate
thereof,
``(3) not enter into any joint venture activities or
partnership with a Bell operating company or any affiliate
thereof,
``(4) not own any telecommunications transmission or
switching facilities in common with the Bell operating
company or any affiliate thereof, and
``(5) not jointly own or share the use of any other
property with the Bell operating company or any affiliate
thereof.
``(d) Books, Records, and Accounts.--Any subsidiary
required by this section shall maintain books, records, and
accounts in a manner prescribed by the Commission which shall
be separate from the books, records, and accounts maintained
by a Bell operating company or any affiliate thereof.
``(e) Provision of Services and Information.--A Bell
operating company or any affiliate thereof may not
discriminate between a subsidiary required by this section
and any other person in the provision or procurement of
goods, services, facilities, or information, or in the
establishment of standards, and shall not provide any goods,
services, facilities or information to a subsidiary required
by this section unless such goods, services, facilities or
information are made available to others on reasonable,
nondiscriminatory terms and conditions.
``(f) Prevention of Cross-Subsidies.--A Bell operating
company or any affiliate thereof required to maintain a
subsidiary under this section shall establish and administer,
in accordance with the requirements of this section and the
regulations prescribed thereunder, a cost allocation system
that prohibits any cost of providing interLATA
telecommunications or information services from being
subsidized by revenue from telephone exchange services and
telephone exchange access services. The cost allocation
system shall employ a formula that ensures that--
``(1) the rates for telephone exchange services and
exchange access are no greater than they would have been in
the absence of such investment in interLATA
telecommunications or information services (taking into
account any decline in the real costs of providing such
telephone exchange services and exchange access); and
``(2) such interLATA telecommunications or information
services bear a reasonable share of the joint and common
costs of facilities used to provide telephone exchange,
exchange access, and competitive services.
``(g) Assets.--The Commission shall, by regulation, ensure
that the economic risks associated with the provision of
interLATA telecommunications or information services by a
Bell operating company or any affiliate thereof (including
any increases in such company's cost of capital that occur as
a result of the provision of such services) are not borne by
customers of telephone exchange services and exchange access
in the event of a business loss or failure. Investments or
other expenditures assigned to interLATA telecommunications
or information services shall not be reassigned to telephone
exchange service or exchange access.
``(h) Debt.--A subsidiary required by this section shall
not obtain credit under any arrangement that would--
``(1) permit a creditor, upon default, to have resource to
the assets of a Bell operating company; or
``(2) induce a creditor to rely on the tangible or
intangible assets of a Bell operating company in extending
credit.
``(i) Fulfillment of Certain Requests.--A Bell operating
company or an affiliate thereof shall--
``(1) fulfill any requests from an unaffiliated entity for
telephone exchange service and exchange access within a
period no longer than the period in which it provides such
telephone exchange service and exchange access to itself or
to its affiliates;
``(2) fulfill any such requests with telephone exchange
service and exchange access of a quality that meets or
exceeds the quality of telephone exchange services and
exchange access provided by the Bell operating company or its
affiliates to itself or its affiliates; and
``(3) provide telephone exchange service and exchange
access to all providers of intraLATA or interLATA telephone
toll services and interLATA information services at cost-
based rates that are not unreasonably discriminatory.
``(j) Charges for Access Services.--A Bell operating
company or an affiliate thereof shall charge the subsidiary
required by this section an amount for telephone exchange
services, exchange access, and other necessary associated
inputs no less than the rate charged to any unaffiliated
entity for such access and inputs.
``(k) Sunset.--The provisions of this section shall cease
to apply in any local exchange market 3 years after the date
of enactment of this part.

``SEC. 247. UNIVERSAL SERVICE.

``(a) Joint Board To Preserve Universal Service.--Within 30
days after the date of enactment of this
part, the Commission shall convene a Federal-State Joint
Board under section 410(c) for the purpose of recommending
actions to the Commission and State commissions for the
preservation of universal service in furtherance of the
purposes set forth in section 1 of this Act. In addition
to the members required under section 410(c), one member
of the Joint Board shall be a State-appointed utility
consumer advocate

[[Page H 8430]]
nominated by a national organization of State utility consumer
advocates.
``(b) Principles.--The Joint Board shall base policies for
the preservation of universal service on the following
principles:
``(1) Just and reasonable rates.--A plan adopted by the
Commission and the States should ensure the continued
viability of universal service by maintaining quality
services at just and reasonable rates.
``(2) Definitions of included services; comparability in
urban and rural areas.--Such plan should recommend a
definition of the nature and extent of the services
encompassed within carriers' universal service obligations.
Such plan should seek to promote access to advanced
telecommunications services and capabilities, and to promote
reasonably comparable services for the general public in
urban and rural areas, while maintaining just and reasonable
rates.
``(3) Adequate and sustainable support mechanisms.--Such
plan should recommend specific and predictable mechanisms to
provide adequate and sustainable support for universal
service.
``(4) Equitable and nondiscriminatory contributions.--All
providers of telecommunications services should make an
equitable and nondiscriminatory contribution to the
preservation of universal service.
``(5) Educational access to advanced telecommunications
services.--To the extent that a common carrier establishes
advanced telecommunications services, such plan should
include recommendations to ensure access to advanced
telecommunications services for students in elementary and
secondary schools.
``(6) Additional principles.--Such other principles as the
Board determines are necessary and appropriate for the
protection of the public interest, convenience, and necessity
and consistent with the purposes of this Act.
``(c) Definition of Universal Service.--In recommending a
definition of the nature and extent of the services
encompassed within carriers' universal service obligations
under subsection (b)(2), the Joint Board shall consider the
extent to which--
``(1) a telecommunications service has, through the
operation of market choices by customers, been subscribed to
by a substantial majority of residential customers;
``(2) such service or capability is essential to public
health, public safety, or the public interest;
``(3) such service has been deployed in the public switched
telecommunications network; and
``(4) inclusion of such service within carriers' universal
service obligations is otherwise consistent with the public
interest, convenience, and necessity.

The Joint Board may, from time to time, recommend to the
Commission modifications in the definition proposed under
subsection (b).
``(d) Report; Commission Response.--The Joint Board
convened pursuant to subsection (a) shall report its
recommendations within 270 days after the date of enactment
of this part. The Commission shall complete any proceeding to
act upon such recommendations and to comply with the
principles set forth in subsection (b) within one year after
such date of enactment.
``(e) State Authority.--Nothing in this section shall be
construed to restrict the authority of any State to adopt
regulations imposing universal service obligations on the
provision of intrastate telecommunications services.
``(f) Sunset.--The Joint Board established by this section
shall cease to exist 5 years after the date of enactment of
this part.
``SEC. 248. PRICING FLEXIBILITY AND ABOLITION OF RATE-OF-
RETURN REGULATION.

``(a) Pricing Flexibility.--
``(1) Commission criteria.--Within 270 days after the date
of enactment of this part, the Commission shall complete all
actions necessary (including any reconsideration) to
establish--
``(A) criteria for determining whether a telecommunications
service or provider of such service has become, or is
substantially certain to become, subject to competition,
either within a geographic area or within a class or category
of service; and
``(B) appropriate flexible pricing procedures that afford a
regulated provider of a service described in subparagraph (A)
the opportunity to respond fairly to such competition and
that are consistent with the protection of subscribers and
the public interest, convenience, and necessity.
``(2) State selection.--A State commission may utilize the
flexible pricing procedures or procedures (established under
paragraph (1)(B)) that are appropriate in light of the
criteria established under paragraph (1)(A).
``(3) Determinations.--The Commission, with respect to
rates for interstate or foreign communications, and State
commissions, with respect to rates for intrastate
communications, shall, upon application--
``(A) render determinations in accordance with the criteria
established under paragraph (1)(A) concerning the services or
providers that are the subject of such application; and
``(B) upon a proper showing, implement appropriate flexible
pricing procedures consistent with paragraphs (1)(B) and (2)
with respect to such services or providers.

The Commission and such State commission shall approve or
reject any such application within 180 days after the date of
its submission.
``(b) Abolition of Rate-of-Return Regulation.--
Notwithstanding any other provision of law, to the extent
that a carrier has complied with sections 242 and 244 of this
part, the Commission, with respect to rates for interstate or
foreign communications, and State commissions, with respect
to rates for intrastate communications, shall not require
rate-of-return regulation.
``(c) Termination of Price and Other Regulation.--
Notwithstanding any other provision of law, to the extent
that a carrier has complied with sections 242 and 244 of this
part, the Commission, with respect to interstate or foreign
communications, and State commissions, with respect to
intrastate communications, shall not, for any service that is
determined, in accordance with the criteria established under
subsection (a)(1)(A), to be subject to competition that
effectively prevents prices for such service that are unjust
or unreasonable or unjustly or unreasonably discriminatory--
``(1) regulate the prices for such service;
``(2) require the filing of a schedule of charges for such
service;
``(3) require the filing of any cost or revenue projections
for such service;
``(4) regulate the depreciation charges for facilities used
to provide such service; or
``(5) require prior approval for the construction or
extension of lines or other equipment for the provision of
such service.
``(d) Ability To Continue Affordable Voice-Grade Service.--
Notwithstanding subsections (a), (b), and (c), each State
commission shall, for a period of not more than 3 years,
permit residential subscribers to continue to receive only
basic voice-grade local telephone service equivalent to the
service generally available to residential subscribers on the
date of enactment of this part, at just, reasonable, and
affordable rates. Determinations concerning the affordability
of rates for such services shall take into account the rates
generally available to residential subscribers on such date
of enactment and the pricing rules established by the States.
Any increases in the rates for such services for residential
subscribers that are not attributable to changes in consumer
prices generally shall be permitted in any proceeding
commenced after the date of enactment of this section upon a
showing that such increase is necessary to ensure the
continued availability of universal service, prevent economic
disadvantages for one or more service providers, and is in
the public interest. Such increase in rates shall be
minimized to the greatest extent practical and shall be
implemented over a time period of not more than 3 years after
the the date of enactment of this section. The requirements
of this subsection shall not apply to any rural telephone
company if the rates for basic voice-grade local telephone
service of that company are not subject to regulation by a
State commission on the date of enactment of this part.
``(e) Interstate Interexchange Service.--The rates charged
by providers of interstate interexchange telecommunications
service to customers in rural and high cost areas shall be
maintained at levels no higher than those charged by each
such provider to its customers in urban areas.
``(f) Exception.--In the case of commercial mobile
services, the provisions of section 332(c)(1) shall apply in
lieu of the provisions of this section.
``(g) Avoidance of Redundant Regulations.--Nothing in this
section shall be construed to prohibit the Commission or a
State commission from enforcing regulations prescribed prior
to the date of enactment of this part in fulfilling the
requirements of this section, to the extent that such
regulations are consistent with the provisions of this
section.

``SEC. 249. NETWORK FUNCTIONALITY AND ACCESSIBILITY.

``(a) Functionality and Accessibility.--The duty of a
common carrier under section 201(a) to furnish communications
service includes the duty to furnish that service in
accordance with any standards established pursuant to this
section.
``(b) Coordination for
Interconnectivity.--The
Commission--
``(1) shall establish procedures for Commission oversight
of coordinated network planning by common carriers and other
providers of telecommunications services for the effective
and efficient interconnection of public switched networks;
and
``(2) may participate, in a manner consistent with its
authority and practice prior to the date of enactment of this
section, in the development by appropriate industry
standards-setting organizations of interconnection standards
that promote access to--
``(A) network capabilities and services by individuals with
disabilities; and
``(B) information services by subscribers to telephone
exchange service furnished by a rural telephone company.
``(c) Accessibility for Individuals With Disabilities.--
``(1) Accessibility.--Within 1 year after the date of
enactment of this section, the Commission shall prescribe
such regulations as are necessary to ensure that, if readily
achievable, advances in network services deployed by common
carriers, and telecommunications equipment and customer
premises equipment manufactured for use in conjunction with
network services, shall be accessible and usable by
individuals with disabilities, including individuals with
functional limitations of hearing, vision, movement,
manipulation, speech, and interpretation of information. Such
regulations shall permit the use of both standard and special
equipment, and seek to minimize the need of individuals to
acquire additional devices beyond those used by the general
public to obtain such access. Throughout the process of
developing such regulations, the Commission shall coordinate
and consult with representatives of individuals with
disabilities and interested equipment and service providers
to ensure their concerns and interests are given full
consideration in such process.
``(2) Compatibility.--Such regulations shall require that
whenever an undue burden or adverse competitive impact would
result from the requirements in paragraph (1), the local
exchange carrier that deploys the network service

[[Page H 8431]]
shall ensure that the network service in question is compatible with
existing peripheral devices or specialized customer premises
equipment commonly used by persons with disabilities to
achieve access, unless doing so would result in an undue
burden or adverse competitive impact.
``(3) Undue burden.--The term `undue burden' means
significant difficulty or expense. In determining whether the
activity necessary to comply with the requirements of this
subsection would result in an undue burden, the factors to be
considered include the following:
``(A) The nature and cost of the activity.
``(B) The impact on the operation of the facility involved
in the deployment of the network service.
``(C) The financial resources of the local exchange
carrier.
``(D) The type of operations of the local exchange carrier.
``(4) Adverse competitive impact.--In determining whether
the activity necessary to comply with the requirements of
this subsection would result in adverse competitive impact,
the following factors shall be considered:
``(A) Whether such activity would raise the cost of the
network service in question beyond the level at which there
would be sufficient consumer demand by the general population
to make the network service profitable.
``(B) Whether such activity would, with respect to the
network service in question, put the local exchange carrier
at a competitive disadvantage. This factor may be considered
so long as competing network service providers are not held
to the same obligation with respect to access by persons with
disabilities.
``(5) Effective date.--The regulations required by this
subsection shall become effective 18 months after the date of
enactment of this part.
``(d) Private Rights of Actions Prohibited.--Nothing in
this section shall be construed to authorize any private
right of action to enforce any requirement of this section or
any regulation thereunder. The Commission shall have
exclusive jurisdiction with respect to any complaint under
this section.
``SEC. 250. MARKET ENTRY BARRIERS.

``(a) Elimination of Barriers.--Within 15 months after the
date of enactment of this part, the Commission shall complete
a proceeding for the purpose of identifying and eliminating,
by regulations pursuant to its authority under this Act
(other than this section), market entry barriers for
entrepreneurs and other small businesses in the provision and
ownership of telecommunications services and information
services, or in the provision of parts or services to
providers of telecommunications services and information
services.
``(b) National Policy.--In carrying out subsection (a), the
Commission shall seek to promote the policies and purposes of
this Act favoring diversity of points of view, vigorous
economic competition, technological advancement, and
promotion of the public interest, convenience, and necessity.
``(c) Periodic Review.--Every 3 years following the
completion of the proceeding required by subsection (a), the
Commission shall review and report to Congress on--
``(1) any regulations prescribed to eliminate barriers
within its jurisdiction that are identified under subsection
(a) and that can be prescribed consistent with the public
interest, convenience, and necessity; and
``(2) the statutory barriers identified under subsection
(a) that the Commission recommends be eliminated, consistent
with the public interest, convenience, and necessity.
``SEC. 251. ILLEGAL CHANGES IN SUBSCRIBER CARRIER SELECTIONS.

``No common carrier shall submit or execute a change in a
subscriber's selection of a provider of telephone exchange
service or telephone toll service except in accordance with
such verification procedures as the Commission shall
prescribe. Nothing in this section shall preclude any State
commission from enforcing such procedures with respect to
intrastate services.

``SEC. 252. STUDY.

``At least once every three years, the Commission shall
conduct a study that--
``(1) reviews the definition of, and the adequacy of
support for, universal service, and evaluates the extent to
which universal service has been protected and access to
advanced services has been facilitated pursuant to this part
and the plans and regulations thereunder;
``(2) evaluates the extent to which access to advanced
telecommunications services for students in elementary and
secondary school classrooms has been attained pursuant to
section 247(b)(5); and
``(3) determines whether the regulations established under
section 249(c) have ensured that advances in network services
by providers of telecommunications services and information
services are accessible and usable by individuals with
disabilities.
``SEC. 253. TERRITORIAL EXEMPTION.

``Until 5 years after the date of enactment of this part,
the provisions of this part shall not apply to any local
exchange carrier in any territory of the United States if (1)
the local exchange carrier is owned by the government of such
territory, and (2) on the date of enactment of this part, the
number of households in such territory subscribing to
telephone service is less than 85 percent of the total
households located in such territory.''.
(b) Consolidated Rulemaking Proceeding.--The Commission
shall conduct a single consolidated rulemaking proceeding to
prescribe or amend regulations necessary to implement the
requirements of--
(1) part II of title II of the Act as added by subsection
(a) of this section;
(2) section 222 as amended by section 104 of this Act; and
(3) section 224 as amended by section 105 of this Act.
(c) Designation of Part I.--Title II of the Act is further
amended by inserting before the heading of section 201 the
following new heading:

``PART I--REGULATION OF DOMINANT COMMON CARRIERS''.
(d) Sylistic Consistency.--The Act is amended so that--
(1) the designation and heading of each title of the Act
shall be in the form and typeface of the designation and
heading of this title of this Act; and
(2) the designation and heading of each part of each title
of the Act shall be in the form and typeface of the
designation and heading of part I of title II of the Act, as
amended by subsection (c).
(e) Conforming Amendments.--
(1) Federal-state jurisdiction.--Section 2(b) of the Act
(47 U.S.C. 152(b)) is amended by inserting ``part II of title
II,'' after ``227, inclusive,''.
(2) Forfeitures.--Sections 503(b)(1) and 504(b) of such Act
(47 U.S.C. 503(b)) are each amended by inserting ``part I
of'' before ``title II''.
SEC. 102. COMPETITION IN MANUFACTURING, INFORMATION SERVICES,
ALARM SERVICES, AND PAY-PHONE SERVICES.

(a) Competition in Manufacturing, Information Services, and
Alarm Services.--Title II of the Act is amended by adding at
the end of part II (as added by section 101) the following
new part:

``PART III--SPECIAL AND TEMPORARY PROVISIONS
``SEC. 271. MANUFACTURING BY BELL OPERATING COMPANIES.

``(a) Access and Interconnection.--It shall be unlawful for
a Bell operating company, directly or through an affiliate,
to manufacture telecommunications equipment or customer
premises equipment, until the Commission has approved under
section 245(c) verifications that such Bell operating
company, and each Bell operating company with which it is
affiliated, are in compliance with the access and
interconnection requirements of part II of this title.
``(b) Collaboration.--Subsection (a) shall not prohibit a
Bell operating company from engaging in close collaboration
with any manufacturer of customer premises equipment or
telecommunications equipment during the design and
development of hardware, software, or combinations thereof
related to such equipment.
``(c) Information Requirements.--
``(1) Information on protocols and technical
requirements.--Each Bell operating company shall, in
accordance with regulations prescribed by the Commission,
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. Each such company shall 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.
``(2) Disclosure of information.--A Bell operating company
shall not disclose any information required to be filed under
paragraph (1) unless that information has been filed
promptly, as required by regulation by the Commission.
``(3) Access by competitors to information.--The Commission
may prescribe such additional regulations under this
subsection as may be necessary to ensure that manufacturers
have access to the information with respect to the protocols
and technical requirements for connection with and use of
telephone exchange service facilities that a Bell operating
company makes available to any manufacturing affiliate or any
unaffiliated manufacturer.
``(4) Planning information.--Each Bell operating company
shall provide, to contiguous common carriers providing
telephone exchange service, timely information on the planned
deployment of telecommunications equipment.
``(d) Manufacturing Limitations for Standard-Setting
Organizations.--
``(1) Bell communications research.--The Bell
Communications Research Corporation, or any successor entity,
shall not engage in manufacturing telecommunications
equipment or customer premises equipment so long as--
``(A) such Corporation or entity is owned, in whole or in
part, by one or more Bell operating companies; or
``(B) such Corporation or entity engages in establishing
standards for telecommunications equipment, customer premises
equipment, or telecommunications services, or any product
certification activities with respect to telecommunications
equipment or customer premises equipment.
``(2) Participation in standard setting; protection of
proprietary information.--Any entity (including such
Corporation) that engages in establishing standards for--
``(A) telecommunications equipment, customer premises
equipment, or telecommunications services, or
``(B) any product certification activities with respect to
telecommunications equipment or customer premises equipment,
for one or more Bell operating companies shall allow any
other person to participate fully in such activities on a
nondiscriminatory basis. Any such entity shall protect
proprietary information submitted for review in the
standards-setting and certification processes from release
not specifically authorized by the owner of such information,
even after such entity ceases to be so engaged.
``(e) Bell Operating Company Equipment Procurement and
Sales.--
``(1) Objective basis.--Each Bell operating company and any
entity acting on behalf of a

[[Page H 8432]]
Bell operating company shall make procurement decisions and award all
supply contracts for equipment, services, and software on the
basis of an objective assessment of price, quality, delivery,
and other commercial factors.
``(2) Sales restrictions.--A Bell operating company engaged
in manufacturing may not restrict sales to any local exchange
carrier of telecommunications equipment, including software
integral to the operation of such equipment and related
upgrades.
``(3) Protection of proprietary information.--A Bell
operating company and any entity it owns or otherwise
controls shall protect the proprietary information submitted
for procurement decisions from release not specifically
authorized by the owner of such information.
``(f) Administration and Enforcement Authority.--For the
purposes of administering and enforcing the provisions of
this section and the regulations prescribed thereunder, the
Commission shall have the same authority, power, and
functions with respect to any Bell operating company or any
affiliate thereof as the Commission has in administering and
enforcing the provisions of this title with respect to any
common carrier subject to this Act.
``(g) Exception for Previously Authorized Activities.--
Nothing in this section shall prohibit a Bell operating
company or affiliate from engaging, at any time after the
date of the enactment of this part, in any activity as
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--
``(1) such order was entered on or before the date of the
enactment of this part, or
``(2) a request for such authorization was pending before
such court on the date of the enactment of this part.
``(h) Antitrust Laws.--Nothing in this section shall be
construed to modify, impair, or supersede the applicability
of any of the antitrust laws.
``(i) Definition.--As used in this section, the term
`manufacturing' has the same meaning as such term has under
the Modification of Final Judgment.
``SEC. 272. ELECTRONIC PUBLISHING BY BELL OPERATING
COMPANIES.

``(a) Limitations.--No Bell operating company or any
affiliate may engage in the provision of electronic
publishing that is disseminated by means of such Bell
operating company's or any of its affiliates' basic telephone
service, except that nothing in this section shall prohibit a
separated affiliate or electronic publishing joint venture
operated in accordance with this section from engaging in the
provision of electronic publishing.
``(b) Separated Affiliate or Electronic Publishing Joint
Venture Requirements.--A separated affiliate or electronic
publishing joint venture shall be operated independently from
the Bell operating company. Such separated affiliate or joint
venture and the Bell operating company with which it is
affiliated shall--
``(1) maintain separate books, records, and accounts and
prepare separate financial statements;
``(2) not incur debt in a manner that would permit a
creditor of the separated affiliate or joint venture upon
default to have recourse to the assets of the Bell operating
company;
``(3) carry out transactions (A) in a manner consistent
with such independence, (B) pursuant to written contracts or
tariffs that are filed with the Commission and made publicly
available, and (C) in a manner that is auditable in
accordance with generally accepted auditing standards;
``(4) value any assets that are transferred directly or
indirectly from the Bell operating company to a separated
affiliate or joint venture, and record any transactions by
which such assets are transferred, in accordance with such
regulations as may be prescribed by the Commission or a State
commission to prevent improper cross subsidies;
``(5) between a separated affiliate and a Bell operating
company--
``(A) have no officers, directors, and employees in common
after the effective date of this section; and
``(B) own no property in common;
``(6) not use for the marketing of any product or service
of the separated affiliate or joint venture, the name,
trademarks, or service marks of an existing Bell operating
company except for names, trademarks, or service marks that
are or were used in common with the entity that owns or
controls the Bell operating company;
``(7) not permit the Bell operating company--
``(A) to perform hiring or training of personnel on behalf
of a separated affiliate;
``(B) to perform the purchasing, installation, or
maintenance of equipment on behalf of a separated affiliate,
except for telephone service that it provides under tariff or
contract subject to the provisions of this section; or
``(C) to perform research and development on behalf of a
separated affiliate;
``(8) each have performed annually a compliance review--
``(A) that is conducted by an independent entity for the
purpose of determining compliance during the preceding
calendar year with any provision of this section; and
``(B) the results of which are maintained by the separated
affiliate or joint venture and the Bell operating company for
a period of 5 years subject to review by any lawful
authority;
``(9) within 90 days of receiving a review described in
paragraph (8), file a report of any exceptions and corrective
action with the Commission and allow any person to inspect
and copy such report subject to reasonable safeguards to
protect any proprietary information contained in such report
from being used for purposes other than to enforce or pursue
remedies under this section.
``(c) Joint Marketing.--
``(1) In general.--Except as provided in paragraph (2)--
``(A) a Bell operating company shall not carry out any
promotion, marketing, sales, or advertising for or in
conjunction with a separated affiliate; and
``(B) a Bell operating company shall not carry out any
promotion, marketing, sales, or advertising for or in
conjunction with an affiliate that is related to the
provision of electronic publishing.
``(2) Permissible joint activities.--
``(A) Joint telemarketing.--A Bell operating company may
provide inbound telemarketing or referral services related to
the provision of electronic publishing for a separated
affiliate, electronic publishing joint venture, affiliate, or
unaffiliated electronic publisher, provided that if such
services are provided to a separated affiliate, electronic
publishing joint venture, or affiliate, such services shall
be made available to all electronic publishers on request, on
nondiscriminatory terms.
``(B) Teaming arrangements.--A Bell operating company may
engage in nondiscriminatory teaming or business arrangements
to engage in electronic publishing with any separated
affiliate or with any other electronic publisher if (i) the
Bell operating company only provides facilities, services,
and basic telephone service information as authorized by this
section, and (ii) the Bell operating company does not own
such teaming or business arrangement.
``(C) Electronic publishing joint ventures.--A Bell
operating company or affiliate may participate on a
nonexclusive basis in electronic publishing joint ventures
with entities that are not any Bell operating company,
affiliate, or separated affiliate to provide electronic
publishing services, if the Bell operating company or
affiliate has not more than a 50 percent direct or indirect
equity interest (or the equivalent thereof) or the right to
more than 50 percent of the gross revenues under a revenue
sharing or royalty agreement in any electronic publishing
joint venture. Officers and employees of a Bell operating
company or affiliate participating in an electronic
publishing joint venture may not have more than 50 percent of
the voting control over the electronic publishing joint
venture. In the case of joint ventures with small, local
electronic publishers, the Commission for good cause shown
may authorize the Bell operating company or affiliate to have
a larger equity interest, revenue share, or voting control
but not to exceed 80 percent. A Bell operating company
participating in an electronic publishing joint venture may
provide promotion, marketing, sales, or advertising personnel
and services to such joint venture.
``(d) Private Right of Action.--
``(1) Damages.--Any person claiming that any act or
practice of any Bell operating company, affiliate, or
separated affiliate constitutes a violation of this
section may file a complaint with the Commission or bring
suit as provided in section 207 of this Act, and such Bell
operating company, affiliate, or separated affiliate shall
be liable as provided in section 206 of this Act; except
that damages may not be awarded for a violation that is
discovered by a compliance review as required by
subsection (b)(7) of this section and corrected within 90
days.
``(2) Cease and desist orders.--In addition to the
provisions of paragraph (1), any person claiming that any act
or practice of any Bell operating company, affiliate, or
separated affiliate constitutes a violation of this section
may make application to the Commission for an order to cease
and desist such violation or may make application in any
district court of the United States of competent jurisdiction
for an order enjoining such acts or practices or for an order
compelling compliance with such requirement.
``(e) Separated Affiliate Reporting Requirement.--Any
separated affiliate under this section shall file with the
Commission annual reports in a form substantially equivalent
to the Form 10-K required by regulations of the Securities
and Exchange Commission.
``(f) Effective Dates.--
``(1) Transition.--Any electronic publishing service being
offered to the public by a Bell operating company or
affiliate on the date of enactment of this section shall have
one year from such date of enactment to comply with the
requirements of this section.
``(2) Sunset.--The provisions of this section shall not
apply to conduct occurring after June 30, 2000.
``(g) Definition of Electronic Publishing.--
``(1) In general.--The term `electronic publishing' means
the dissemination, provision, publication, or sale to an
unaffiliated entity or person, of any one or more of the
following: news (including sports); entertainment (other than
interactive games); business, financial, legal, consumer, or
credit materials; editorials, columns, or features;
advertising; photos or images; archival or research material;
legal notices or public records; scientific, educational,
instructional, technical, professional, trade, or other
literary materials; or other like or similar information.
``(2) Exceptions.--The term `electronic publishing' shall
not include the following services:
``(A) Information access, as that term is defined by the
Modification of Final Judgment.
``(B) The transmission of information as a common carrier.
``(C) The transmission of information as part of a gateway
to an information service that does not involve the
generation or alteration of the content of information,
including data transmission, address translation, protocol
conversion, billing management, introductory information
content, and navigational systems that enable users to access
electronic publishing services, which do not affect the
presentation of such electronic publishing services to users.

[[Page H 8433]]

``(D) Voice storage and retrieval services, including voice
messaging and electronic mail services.
``(E) Data processing or transaction processing services
that do not involve the generation or alteration of the
content of information.
``(F) Electronic billing or advertising of a Bell operating
company's regulated telecommunications services.
``(G) Language translation or data format conversion.
``(H) The provision of information necessary for the
management, control, or operation
of a telephone company telecommunications system.
``(I) The provision of directory assistance that provides
names, addresses, and telephone numbers and does not include
advertising.
``(J) Caller identification services.
``(K) Repair and provisioning databases and credit card and
billing validation for telephone company operations.
``(L) 911-E and other emergency assistance databases.
``(M) Any other network service of a type that is like or
similar to these network services and that does not involve
the generation or alteration of the content of information.
``(N) Any upgrades to these network services that do not
involve the generation or alteration of the content of
information.
``(O) Video programming or full motion video entertainment
on demand.
``(h) Additional Definitions.--As used in this section--
``(1) The term `affiliate' means any entity that, directly
or indirectly, owns or controls, is owned or controlled by,
or is under common ownership or control with, a Bell
operating company. Such term shall not include a separated
affiliate.
``(2) The term `basic telephone service' means wireline
telephone exchange service provided by a Bell operating
company in a telephone exchange area, except that such term
does not include--
``(A) a competitive wireline telephone exchange service
provided in a telephone exchange area where another entity
provides a wireline telephone exchange service that was
provided on January 1, 1984, and
``(B) a commercial mobile service.
``(3) The term `basic telephone service information' means
network and customer information of a Bell operating company
and other information acquired by a Bell operating company as
a result of its engaging in the provision of basic telephone
service.
``(4) The term `control' has the meaning that it has in 17
C.F.R. 240.12b-2, the regulations promulgated by the
Securities and Exchange Commission pursuant to the Securities
Exchange Act of 1934 (15 U.S.C. 78a et seq.) or any successor
provision to such section.
``(5) The term `electronic publishing joint venture' means
a joint venture owned by a Bell operating company or
affiliate that engages in the provision of electronic
publishing which is disseminated by means of such Bell
operating company's or any of its affiliates' basic telephone
service.
``(6) The term `entity' means any organization, and
includes corporations, partnerships, sole proprietorships,
associations, and joint ventures.
``(7) The term `inbound telemarketing' means the marketing
of property, goods, or services by telephone to a customer or
potential customer who initiated the call.
``(8) The term `own' with respect to an entity means to
have a direct or indirect equity interest (or the equivalent
thereof) of more than 10 percent of an entity, or the right
to more than 10 percent of the gross revenues of an entity
under a revenue sharing or royalty agreement.
``(9) The term `separated affiliate' means a corporation
under common ownership or control with a Bell operating
company that does not own or control a Bell operating company
and is not owned or controlled by a Bell operating company
and that engages in the provision of electronic publishing
which is disseminated by means of such Bell operating
company's or any of its affiliates' basic telephone service.
``(10) The term `Bell operating company' has the meaning
provided in section 3, except that such term includes any
entity or corporation that is owned or controlled by such a
company (as so defined) but does not include an electronic
publishing joint venture owned by such an entity or
corporation.
``SEC. 273. ALARM MONITORING AND TELEMESSAGING SERVICES BY
BELL OPERATING COMPANIES.

``(a) Delayed Entry Into Alarm Monitoring.--
``(1) Prohibition.--No Bell operating company or affiliate
thereof shall engage in the provision of alarm monitoring
services before the date which is 6 years after the date of
enactment of this part.
``(2) Existing activities.--Paragraph (1) shall not apply
to any provision of alarm monitoring services in which a Bell
operating company or affiliate is lawfully engaged as of
January 1, 1995, except that such Bell operating company or
any affiliate may not acquire or otherwise obtain control of
additional entities providing alarm monitoring services after
such date.
``(b) Nondiscrimination.--A common carrier engaged in the
provision of alarm monitoring services or telemessaging
services shall--
``(1) provide nonaffiliated entities, upon reasonable
request, with the network services it provides to its own
alarm monitoring or telemessaging operations, on
nondiscriminatory terms and conditions; and
``(2) not subsidize its alarm monitoring services or its
telemessaging services either directly or indirectly from
telephone exchange service operations.
``(c) Expedited Consideration of Complaints.--The
Commission shall establish procedures for the receipt and
review of complaints concerning violations of subsection (b)
or the regulations thereunder that result in material
financial harm to a provider of alarm monitoring service or
telemessaging service. Such procedures shall ensure that the
Commission will make a final determination with respect to
any such complaint 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, order the common carrier and its affiliates to
cease engaging in such violation pending such final
determination.
``(d) Definitions.--As used in this section:
``(1) Alarm monitoring service.--The term `alarm monitoring
service' means a service that uses a device located at a
residence, place of business, or other fixed premises--
``(A) to receive signals from other devices located at or
about such premises regarding a possible threat at such
premises to life, safety, or property, from burglary, fire,
vandalism, bodily injury, or other emergency, and
``(B) to transmit a signal regarding such threat by means
of transmission facilities of a Bell operating company or one
of its affiliates to a remote monitoring center to alert a
person at such center of the need to inform the customer or
another person or police, fire, rescue, security, or public
safety personnel of such threat,
but does not include a service that uses a medical monitoring
device attached to an individual for the automatic
surveillance of an ongoing medical condition.
``(2) Telemessaging services.--The term `telemessaging
services' means voice mail and voice storage and retrieval
services provided over telephone lines for telemessaging
customers and any live operator services used to answer,
record, transcribe, and relay messages (other than
telecommunications relay services) from incoming telephone
calls on behalf of the telemessaging customers (other than
any service incidental to directory assistance).
``SEC. 274. PROVISION OF PAYPHONE SERVICE.

``(a) Nondiscrimination Safeguards.--After the effective
date of the rules prescribed pursuant to subsection (b), any
Bell operating company that provides payphone service--
``(1) shall not subsidize its payphone 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 it
payphone service.
``(b) Regulations.--
``(1) Contents of regulations.--In order to promote
competition among payphone service providers and promote the
widespread deployment of payphone services to the benefit of
the general public, within 9 months after the date of
enactment of this section, the Commission shall take all
actions necessary (including any reconsideration) to
prescribe regulations that--
``(A) establish a per call compensation plan to ensure that
all payphone services providers
are fairly compensated for each and every completed
intrastate and interstate call using their payphone,
except that emergency calls and telecommunications relay
service calls for hearing disabled individuals shall not
be subject to such compensation;
``(B) discontinue the intrastate and interstate carrier
access charge payphone service elements and payments in
effect on the date of enactment of this section, and all
intrastate and interstate payphone subsidies from basic
exchange and exchange access revenues, in favor of a
compensation plan as specified in subparagraph (A);
``(C) prescribe a set of nonstructural safeguards for Bell
operating company payphone service to implement the
provisions of paragraphs (1) and (2) of subsection (a), which
safeguards shall, at a minimum, include the nonstructural
safeguards equal to those adopted in the Computer Inquiry-III
CC Docket No. 90-623 proceeding; and
``(D) provide for Bell operating company payphone service
providers to have the same right that independent payphone
providers have to negotiate with the location provider on
selecting and contracting with, and, subject to the terms of
any agreement with the location provider, to select and
contract with the carriers that carry interLATA calls from
their payphones, and provide for all payphone service
providers to have the right to negotiate with the location
provider on selecting and contracting with, and, subject to
the terms of any agreement with the location provider, to
select and contract with the carriers that carry intraLATA
calls from their payphones.
``(2) Public interest telephones.--In the rulemaking
conducted pursuant to paragraph (1), the Commission shall
determine whether public interest payphones, which are
provided in the interest of public health, safety, and
welfare, in locations where there would otherwise not be a
payphone, should be maintained, and if so, ensure that such
public interest payphones are supported fairly and equitably.
``(3) Existing contracts.--Nothing in this section shall
affect any existing contracts between location providers and
payphone service providers or interLATA or intraLATA carriers
that are in force and effect as of the date of the enactment
of this Act.
``(c) State Preemption.--To the extent that any State
requirements are inconsistent with the Commission's
regulations, the Commission's regulations on such matters
shall preempt State requirements.
``(d) Definition.--As used in this section, the term
`payphone service' means the provision of public or semi-
public pay telephones, the provision of inmate telephone
service in correctional institutions, and any ancillary
services.''.

[[Page H 8434]]

SEC. 103. FORBEARANCE FROM REGULATION.

Part I of title II of the Act (as redesignated by section
101(c) of this Act) is amended by inserting after section 229
(47 U.S.C. 229) the following new section:

``SEC. 230. FORBEARANCE FROM REGULATION.

``(a) Authority to Forbear.--The Commission shall forbear
from applying any provision of this part or part II (other
than sections 201, 202, 208, 243, and 248), or any regulation
thereunder, to a common 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 provision or regulation is not
necessary to ensure that the charges, practices,
classifications, or regulations by, for, or in connection
with that carrier or service are just and reasonable and are
not unjustly or unreasonably discriminatory;
``(2) enforcement of such regulation or provision is not
necessary for the protection of consumers; and
``(3) forbearance from applying such provision or
regulation 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 provision or
regulation 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.''.

SEC. 104. PRIVACY OF CUSTOMER INFORMATION.

(a) Privacy of Customer Proprietary Network Information.--
Title II of the Act is amended by inserting after section 221
(47 U.S.C. 221) the following new section:

``SEC. 222. PRIVACY OF CUSTOMER PROPRIETARY NETWORK
INFORMATION.
``(a) Subscriber List Information.--Notwithstanding
subsections (b), (c), and (d), a carrier that provides local
exchange service shall provide subscriber list information
gathered in its capacity as a provider of such service on a
timely and unbundled basis, under nondiscriminatory and
reasonable rates, terms, and conditions, to any person upon
request for the purpose of publishing directories in any
format.
``(b) Privacy Requirements for Common Carriers.--A
carrier--
``(1) shall not, except as required by law or with the
approval of the customer to which the information relates--
``(A) use customer proprietary network information in the
provision of any service except to the extent necessary (i)
in the provision of common carrier services, (ii) in the
provision of a service necessary to or used in the provision
of common carrier services, including the publishing of
directories, or (iii) to continue to provide a particular
information service that the carrier provided as of May 1,
1995, to persons who were customers of such service on that
date;
``(B) use customer proprietary network information in the
identification or solicitation of potential customers for any
service other than the telephone exchange service or
telephone toll service from which such information is
derived;
``(C) use customer proprietary network information in the
provision of customer premises equipment; or
``(D) disclose customer proprietary network information to
any person except to the extent necessary to permit such
person to provide services or products that are used in and
necessary to the provision by such carrier of the services
described in subparagraph (A);
``(2) shall disclose customer proprietary network
information, upon affirmative written request by the
customer, to any person designated by the customer;
``(3) shall, whenever such carrier provides any aggregate
information, notify the Commission of the availability of
such aggregate information and shall provide such aggregate
information on reasonable terms and conditions to any other
service or equipment provider upon reasonable request
therefor; and
``(4) except for disclosures permitted by paragraph (1)(D),
shall not unreasonably discriminate between affiliated and
unaffiliated service or equipment providers in providing
access to, or in the use and
disclosure of, individual and aggregate information made
available consistent with this subsection.
``(c) Rule of Construction.--This section shall not be
construed to prohibit the use or disclosure of customer
proprietary network information as necessary--
``(1) to render, bill, and collect for the services
identified in subsection (b)(1)(A);
``(2) to render, bill, and collect for any other service
that the customer has requested;
``(3) to protect the rights or property of the carrier;
``(4) to protect users of any of those services and other
carriers from fraudulent, abusive, or unlawful use of or
subscription to such service; or
``(5) to provide any inbound telemarketing, referral, or
administrative services to the customer for the duration of
the call if such call was initiated by the customer and the
customer approves of the use of such information to provide
such service.
``(d) Exemption Permitted.--The Commission may, by rule,
exempt from the requirements of subsection (b) carriers that
have, together with any affiliated carriers, in the aggregate
nationwide, fewer than 500,000 access lines installed if the
Commission determines that such exemption is in the public
interest or if compliance with the requirements would impose
an undue economic burden on the carrier.
``(e) Definitions.--As used in this section:
``(1) Customer proprietary network information.--The term
`customer proprietary network information' means--
``(A) information which relates to the quantity, technical
configuration, type, destination, and amount of use of
telephone exchange service or telephone toll service
subscribed to by any customer of a carrier, and is made
available to the carrier by the customer solely by virtue of
the carrier-customer relationship;
``(B) information contained in the bills pertaining to
telephone exchange service or telephone toll service received
by a customer of a carrier; and
``(C) such other information concerning the customer as is
available to the local exchange carrier by virtue of the
customer's use of the carrier's telephone exchange service or
telephone toll services, and specified as within the
definition of such term by such rules as the Commission shall
prescribe consistent with the public interest;
except that such term does not include subscriber list
information.
``(2) Subscriber list information.--The term `subscriber
list information' means any information--
``(A) identifying the listed names of subscribers of a
carrier and such subscribers' telephone numbers, addresses,
or primary advertising classifications (as such
classifications are assigned at the time of the establishment
of such service), or any combination of such listed names,
numbers, addresses, or classifications; and
``(B) that the carrier or an affiliate has published,
caused to be published, or accepted for publication in any
directory format.
``(3) Aggregate information.--The term `aggregate
information' means collective data that relates to a group or
category of services or customers, from which individual
customer identities and characteristics have been removed.''.
(b) Converging Communications Technologies and Consumer
Privacy.--
(1) Commission examination.--Within one year after the date
of enactment of this Act, the Commission shall commence a
proceeding--
(A) to examine the impact of the integration into
interconnected communications networks of wireless telephone,
cable, satellite, and other technologies on the privacy
rights and remedies of the consumers of those technologies;
(B) to examine the impact that the globalization of such
integrated communications networks has on the international
dissemination of consumer information and the privacy rights
and remedies to protect consumers;
(C) to propose changes in the Commission's regulations to
ensure that the effect on consumer privacy rights is
considered in the introduction of new telecommunications
services and that the protection of such privacy rights is
incorporated as necessary in the design of such services or
the rules regulating such services;
(D) to propose changes in the Commission's regulations as
necessary to correct any defects identified pursuant to
subparagraph (A) in such rights and remedies; and
(E) to prepare recommendations to the Congress for any
legislative changes required to correct such defects.
(2) Subjects for examination.--In conducting the
examination required by paragraph (1), the Commission shall
determine whether consumers are able, and, if not, the
methods by which consumers may be enabled--
(A) to have knowledge that consumer information is being
collected about them through their utilization of various
communications technologies;
(B) to have notice that such information could be used, or
is intended to be used, by the entity collecting the data for
reasons unrelated to the original communications, or that
such information could be sold (or is intended to be sold) to
other companies or entities; and
(C) to stop the reuse or sale of that information.
(3) Schedule for commission responses.--The Commission
shall, within 18 months after the date of enactment of this
Act--
(A) complete any rulemaking required to revise Commission
regulations to correct defects in such regulations identified
pursuant to paragraph (1); and
(B) submit to the Congress a report containing the
recommendations required by paragraph (1)(C).
SEC. 105. POLE ATTACHMENTS.

Section 224 of the Act (47 U.S.C. 224) is amended--
(1) in subsection (a)(4)--
(A) by inserting after ``system'' the following: ``or a
provider of telecommunications service''; and
(B) by inserting after ``utility'' the following: ``, which
attachment may be used by such entities to provide cable
service or any telecommunications service'';
(2) in subsection (c)(2)(B), by striking ``cable television
services'' and inserting ``the services offered via such
attachments'';
(3) by redesignating subsection (d)(2) as subsection
(d)(4); and
(4) by striking subsection (d)(1) and inserting the
following:
``(d)(1) For purposes of subsection (b) of this section,
the Commission shall, no later than 1 year after the date of
enactment of the Communications Act of 1995, prescribe
regulations for ensuring that utilities charge just and
reasonable and nondiscriminatory rates for pole
attachments provided to all providers of
telecommunications services, including such attachments
used by cable television systems to provide
telecommunications services (as defined in section 3 of
this Act). Such regulations shall--
``(A) recognize that the entire pole, duct, conduit, or
right-of-way other than the usable space is of equal benefit
all entities attaching to the pole and therefore apportion
the cost of the

[[Page H 8435]]
space other than the usable space equally among all such attachments;
``(B) recognize that the usable space is of proportional
benefit to all entities attaching to the pole, duct, conduit
or right-of-way and therefore apportion the cost of the
usable space according to the percentage of usable space
required for each entity; and
``(C) allow for reasonable terms and conditions relating to
health, safety, and the provision of reliable utility
service.
``(2) The final regulations prescribed by the Commission
pursuant to paragraph (1) shall not apply to a cable
television system that solely provides cable service as
defined in section 602(6) of this Act; instead, the pole
attachment rate for such systems shall assure a utility the
recovery of not less than the additional costs of providing
pole attachments, nor more than an amount determined by
multiplying the percentage of the total usable space, or the
percentage of the total duct or conduit capacity, which is
occupied by the pole attachment by the sum of the operating
expenses and actual capital costs of the utility attributable
to the entire pole, duct, conduit, or right-of-way.
``(3) Whenever the owner of a conduit or right-of-way
intends to modify or alter such conduit or right-of-way, the
owner shall provide written notification of such action to
any entity that has obtained an attachment to such conduit or
right-of-way so that such entity may have a reasonable
opportunity to add to or modify its existing attachment. Any
entity that adds to or modifies its existing attachment after
receiving such notification shall bear a proportionate share
of the costs incurred by the owner in making such conduit or
right-of-way accessible.''.
SEC. 106. PREEMPTION OF FRANCHISING AUTHORITY REGULATION OF
TELECOMMUNICATIONS SERVICES.

(a) Telecommunications Services.--Section 621(b) of the Act
(47 U.S.C. 541(c)) is amended by adding at the end thereof
the following new paragraph:
``(3)(A) To the extent that a cable operator or affiliate
thereof is engaged in the provision of telecommunications
services--
``(i) such cable operator or affiliate shall not be
required to obtain a franchise under this title; and
``(ii) the provisions of this title shall not apply to such
cable operator or affiliate.
``(B) A franchising authority may not impose any
requirement that has the purpose or effect of prohibiting,
limiting, restricting, or conditioning the provision of a
telecommunications service by a cable operator or an
affiliate thereof.
``(C) A franchising authority may not order a cable
operator or affiliate thereof--
``(i) to discontinue the provision of a telecommunications
service, or
``(ii) to discontinue the operation of a cable system, to
the extent such cable system is used for the provision of a
telecommunications service, by reason of the failure of such
cable operator or affiliate thereof to obtain a franchise or
franchise renewal under this title with respect to the
provision of such telecommunications service.
``(D) 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
or a franchise renewal.''.
(b) Franchise Fees.--Section 622(b) of the Act (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 thereof.
SEC. 107. FACILITIES SITING; RADIO FREQUENCY EMISSION
STANDARDS.

(a) National Wireless Telecommunications Siting Policy.--
Section 332(c) of the Act (47 U.S.C. 332(c)) is amended by
adding at the end the following new paragraph:
``(7) Facilities siting policies.--(A) Within 180 days
after enactment of this paragraph, the Commission shall
prescribe and make effective a policy regarding State and
local regulation of the placement, construction,
modification, or operation of facilities for the provision of
commercial mobile services.
``(B) Pursuant to subchapter III of chapter 5, title 5,
United States Code, the Commission shall establish a
negotiated rulemaking committee to negotiate and develop a
proposed policy to comply with the requirements of this
paragraph. Such committee shall include representatives from
State and local governments, affected industries, and public
safety agencies. In negotiating and developing such a policy,
the committee shall take into account--
``(i) the desirability of enhancing the coverage and
quality of commercial mobile services and fostering
competition in the provision of such services;
``(ii) the legitimate interests of State and local
governments in matters of exclusively local concern;
``(iii) the effect of State and local regulation of
facilities siting on interstate commerce; and
``(iv) the administrative costs to State and local
governments of reviewing requests for authorization to locate
facilities for the provision of commercial mobile services.
``(C) The policy prescribed pursuant to this paragraph
shall ensure that--
``(i) regulation of the placement, construction, and
modification of facilities for the provision of commercial
mobile services by any State or local government or
instrumentality thereof--
``(I) is reasonable, nondiscriminatory, and limited to the
minimum necessary to accomplish the State or local
government's legitimate purposes; and
``(II) does not prohibit or have the effect of precluding
any commercial mobile service; and
``(ii) a State or local government or instrumentality
thereof shall act on any request for authorization to locate,
construct, modify, or operate facilities for the provision of
commercial mobile services within a reasonable period of time
after the request is fully filed with such government or
instrumentality; and
``(iii) any decision by a State or local government or
instrumentality thereof to deny a request for authorization
to locate, construct, modify, or operate facilities for the
provision of commercial mobile services shall be in writing
and shall be supported by substantial evidence contained in a
written record.
``(D) The policy prescribed pursuant to this paragraph
shall provide that no State or local government or any
instrumentality thereof may regulate the placement,
construction, modification, or operation of such facilities
on the basis of the environmental effects of radio frequency
emissions, to the extent that such facilities comply with the
Commission's regulations concerning such emissions.
``(E) In accordance with subchapter III of chapter 5, title
5, United States Code, the Commission shall periodically
establish a negotiated rulemaking committee to review the
policy prescribed by the Commission under this paragraph and
to recommend revisions to such policy.''.
(b) Radio Frequency Emissions.--Within 180 days after the
enactment of this Act, the Commission shall complete action
in ET Docket 93-62 to prescribe and make effective rules
regarding the environmental effects of radio frequency
emissions.
(c) Availability of Property.--Within 180 days of the
enactment of this Act, the Commission shall prescribe
procedures by which Federal departments and agencies may make
available on a fair, reasonable, and nondiscriminatory basis,
property, rights-of-way, and easements under their control
for the placement of new telecommunications facilities by
duly licensed providers of telecommunications services that
are dependent, in whole or in part, upon the utilization of
Federal spectrum rights for the transmission or reception of
such services. These procedures may establish a presumption
that requests for the use of property, rights-of-way, and
easements by duly authorized providers should be granted
absent unavoidable direct conflict with the department or
agency's mission, or the current or planned use of the
property, rights-of-way, and easements in question.
Reasonable cost-based fees may be charged to providers of
such telecommunications services for use of property, rights-
of-way, and easements. The Commission shall provide technical
support to States to encourage them to make property, rights-
of-way, and easements under their jurisdiction available for
such purposes.
SEC. 108. MOBILE SERVICE ACCESS TO LONG DISTANCE CARRIERS.

(a) Amendment.--Section 332(c) of the Act (47 U.S.C.
332(c)) is amended by adding at the end the following new
paragraph:
``(8) Mobile services access.--(A) The Commission shall
prescribe regulations to afford subscribers of two-way
switched voice commercial mobile radio services access to a
provider of telephone toll service of the subscriber's
choice, except to the extent that the commercial mobile radio
service is provided by satellite. The Commission may exempt
carriers or classes of carriers from the requirements of such
regulations to the extent the Commission determines such
exemption is consistent with the public interest,
convenience, and necessity. For purposes of this paragraph,
`access' shall mean access to a provider of telephone toll
service through the use of carrier identification codes
assigned to each such provider.
``(B) The regulations prescribed by the Commission pursuant
to subparagraph (A) shall supersede any inconsistent
requirements imposed by the Modification of Final Judgment or
any order in United States v. AT&T Corp. and McCaw Cellular
Communications, Inc., Civil Action No. 94-01555 (United
States District Court, District of Columbia).''.
(b) Effective Date Conforming Amendment.--Section
6002(c)(2)(B) of the Omnibus Budget Reconciliation Act of
1993 is amended by striking ``section 332(c)(6)'' and
inserting ``paragraphs (6) and (8) of section 332(c)''.
SEC. 109. FREEDOM FROM TOLL FRAUD.

(a) Amendment.--Section 228(c) of the Act (47 U.S.C.
228(c)) is amended--
(1) by striking subparagraph (C) of paragraph (7) and
inserting the following:
``(C) the calling party being charged for information
conveyed during the call unless--
``(i) the calling party has a written subscription
agreement with the information provider that meets the
requirements of paragraph (8); or
``(ii) the calling party is charged in accordance with
paragraph (9); or''; and
(2) 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)(i), a
written subscription agreement shall specify the terms and
conditions under which the information is offered and
include--
``(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 at least 30 days in advance of all future changes
in the rates charged for the information;
``(vi) the signature of a legally competent subscriber
agreeing to the terms of the agreement; and
``(vii) the subscriber's choice of payment method, which
may be by phone bill or credit, prepaid, or calling card.
``(B) Billing arrangements.--If a subscriber elects,
pursuant to subparagraph (A)(vii), to pay by means of a phone
bill--

[[Page H 8436]]

``(i) the agreement shall clearly explain that the
subscriber will be assessed for calls made to the information
service from the subscriber's phone line;
``(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 pin's to prevent unauthorized use.--A written
agreement does not meet the requirements of this paragraph
unless it provides the subscriber 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 services provided pursuant to a tariff that has
been approved or permitted to take effect by the Commission
or a State commission; or
``(ii) for any purchase of goods or of services that are
not information services.
``(E) Termination of service.--On complaint by any person,
a carrier 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. The remedies provided in this paragraph are in
addition to any other remedies that are available under title
V of this Act.
``(9) Charges by credit, prepaid, or calling card in
absence of agreement.--For purposes of paragraph (7)(C)(ii),
a calling party is not charged in accordance with this
paragraph unless the calling party is charged by means of a
credit, prepaid, or calling card and the information service
provider includes in response to each call an introductory
disclosure message that--
``(A) clearly states that there is a charge for the call;
``(B) clearly states the service's total cost per minute
and any other fees for the service or for any service to
which the caller may be transferred;
``(C) explains that the charges must be billed on either a
credit, prepaid, or calling card;
``(D) asks the caller for the credit or calling card
number;
``(E) clearly states that charges for the call begin at the
end of the introductory message; and
``(F) clearly states that the caller can hang up at or
before the end of the introductory message without incurring
any charge whatsoever.
``(10) Definition of calling card.--As used in this
subsection, 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.''.
(b) Regulations.--The Federal Communications Commission
shall revise its regulations to comply with the amendment
made by subsection (a) of this section within 180 days after
the date of enactment of this Act.
SEC. 110. REPORT ON MEANS OF RESTRICTING ACCESS TO UNWANTED
MATERIAL IN INTERACTIVE TELECOMMUNICATIONS
SYSTEMS.

(a) Report.--Not later than 150 days after the date of the
enactment of this Act, the Attorney General shall submit to
the Committees on the Judiciary and Commerce, Science, and
Transportation of the Senate and the Committees on the
Judiciary and Commerce of the House of Representatives a
report containing--
(1) an evaluation of the enforceability with respect to
interactive media of current criminal laws governing the
distribution of obscenity over computer networks and the
creation and distribution of child pornography by means of
computers;
(2) an assessment of the Federal, State, and local law
enforcement resources that are currently available to enforce
such laws;
(3) an evaluation of the technical means available--
(A) to enable parents to exercise control over the
information that their children receive by interactive
telecommunications systems so that children may avoid
violent, sexually explicit, harassing, offensive, and other
unwanted material on such systems;
(B) to enable other users of such systems to exercise
control over the commercial and noncommercial information
that they receive by such systems so that such users may
avoid violent, sexually explicit, harassing, offensive, and
other unwanted material on such systems; and
(C) to promote the free flow of information, consistent
with the values expressed in the Constitution, in interactive
media; and
(4) recommendations on means of encouraging the development
and deployment of technology, including computer hardware and
software, to enable parents and other users of interactive
telecommunications systems to exercise the control described
in subparagraphs (A) and (B) of paragraph (3).
(b) Consultation.--In preparing the report under subsection
(a), the Attorney General shall consult with the Assistant
Secretary of Commerce for Communications and Information.
SEC. 111. AUTHORIZATION OF APPROPRIATIONS.

(a) In General.--In addition to any other sums authorized
by law, there are authorized to be appropriated to the
Federal Communications Commission such sums as may be
necessary to carry out this Act and the amendments made by
this Act.
(b) Effect on Fees.--For the purposes of section 9(b)(2) of
the Act (47 U.S.C. 159(b)(2)), additional amounts
appropriated pursuant to subsection (a) shall be construed to
be changes in the amounts appropriated for the performance of
activities described in section 9(a) of such Act.
TITLE II--CABLE COMMUNICATIONS COMPETITIVENESS

SEC. 201. CABLE SERVICE PROVIDED BY TELEPHONE COMPANIES.

(a) General Requirement.--
(1) Amendment.--Section 613(b) of the Act (47 U.S.C.
533(b)) is amended to read as follows:
``(b)(1) Subject to the requirements of part V and the
other provisions of this title, any common carrier subject in
whole or in part to title II of this Act may, either through
its own facilities or through an affiliate, provide video
programming directly to subscribers in its telephone service
area.
``(2) Subject to the requirements of part V and the other
provisions of this title, any common carrier subject in whole
or in part to title II of this Act may provide channels of
communications or pole, line, or conduit space, or other
rental arrangements, to any entity which is directly or
indirectly owned, operated, or controlled by, or under common
control with, such common carrier, if such facilities or
arrangements are to be used for, or in connection with, the
provision of video programming directly to subscribers in its
telephone service area.
``(3)(A) Notwithstanding paragraphs (1) and (2), an
affiliate described in subparagraph (B) shall not be subject
to the requirements of part V, but--
``(i) if providing video programming as a cable service
using a cable system, shall be subject to the requirements of
this part and parts III and IV; and
``(ii) if providing such video programming by means of
radio communication, shall be subject to the requirements of
title III.
``(B) For purposes of subparagraph (A), an affiliate is
described in this subparagraph if such affiliate--
``(i) is, consistently with section 655, owned, operated,
or controlled by, or under common control with, a common
carrier subject in whole or in part to title II of this Act;
``(ii) provides video programming to subscribers in the
telephone service area of such carrier; and
``(iii) does not utilize the local exchange facilities or
services of any affiliated common carrier in distributing
such programming.''.
(2) Conforming amendment.--Section 602 of the Act (47
U.S.C. 531) is amended--
(A) by redesignating paragraphs (18) and (19) as paragraphs
(19) and (20) respectively; and
(B) by inserting after paragraph (17) the following new
paragraph:
``(18) the term `telephone service area' when used in
connection with a common carrier subject in whole or in part
to title II of this Act means the area within which such
carrier provides telephone exchange service as of January 1,
1993, but if any common carrier after such date transfers its
exchange service facilities to another common carrier, the
area to which such facilities provide telephone exchange
service shall be treated as part of the telephone service
area of the acquiring common carrier and not of the selling
common carrier;''.
(b) Provisions for Regulation of Cable Service Provided by
Telephone Companies.--Title VI of the Act (47 U.S.C. 521 et
seq.) is amended by adding at the end the following new part:

``PART V--VIDEO PROGRAMMING SERVICES PROVIDED BY TELEPHONE COMPANIES

``SEC. 651. DEFINITIONS.

``For purposes of this part--
``(1) the term `control' means--
``(A) an ownership interest in which an entity has the
right to vote more than 50 percent of the outstanding common
stock or other ownership interest; or
``(B) if no single entity directly or indirectly has the
right to vote more than 50 percent of the outstanding common
stock or other ownership interest, actual working control, in
whatever manner exercised, as defined by the Commission by
regulation on the basis of relevant factors and
circumstances, which shall include partnership and direct
ownership interests, voting stock interests, the interests of
officers and directors, and the aggregation of voting
interests; and
``(2) the term `rural area' means a geographic area that
does not include either--
``(A) any incorporated or unincorporated place of 10,000
inhabitants or more, or any part thereof; or
``(B) any territory, incorporated or unincorporated,
included in an urbanized area, as defined by the Bureau of
the Census.

``SEC. 652. SEPARATE VIDEO PROGRAMMING AFFILIATE.

``(a) In General.--Except as provided in subsection (d) of
this section and section 613(b)(3), a common carrier subject
to title II of this Act shall not provide video programming
directly to subscribers in its telephone service area unless
such video programming is provided through a video
programming affiliate that is separate from such carrier.
``(b) Books and Marketing.--
``(1) In general.--A video programming affiliate of a
common carrier shall--
``(A) maintain books, records, and accounts separate from
such carrier which identify all transactions with such
carrier;
``(B) carry out directly (or through any nonaffiliated
person) its own promotion, except that institutional
advertising carried out by such carrier shall be permitted so
long as each party bears its pro rata share of the costs; and
``(C) not own real or personal property in common with such
carrier.
``(2) Inbound telemarketing and referral.--Notwithstanding
paragraph (1)(B), a common carrier may provide telemarketing
or referral services in response to the call of a customer or
potential customer related to the provision of video
programming by a video programming affiliate of such carrier.
If such services

[[Page H 8437]]
are provided to a video programming affiliate, such services shall be
made available to any video programmer or cable operator on
request, on nondiscriminatory terms, at just and reasonable
prices.
``(3) Joint marketing.--Notwithstanding paragraph (1)(B) or
section 613(b)(3), a common carrier may market video
programming directly upon a showing to the Commission that a
cable operator or other entity directly or indirectly
provides telecommunications services within the telephone
service area of the common carrier, and markets such
telecommunications services jointly with video programming
services. The common carrier shall specify the geographic
region covered by the showing. The Commission shall approve
or disapprove such showing within 60 days after the date of
its submission.
``(c) Business Transactions With Carrier.--Any contract,
agreement, arrangement, or other manner of conducting
business, between a common carrier and its video programming
affiliate, providing for--
``(1) the sale, exchange, or leasing of property between
such affiliate and such carrier,
``(2) the furnishing of goods or services between such
affiliate and such carrier, or
``(3) the transfer to or use by such affiliate for its
benefit of any asset or resource of such carrier,
shall be on a fully compensatory and auditable basis, shall
be without cost to the telephone service ratepayers of the
carrier, and shall be in compliance with regulations
established by the Commission that will enable the Commission
to assess the compliance of any transaction.
``(d) Waiver.--
``(1) Criteria for waiver.--The Commission may waive any of
the requirements of this section for small telephone
companies or telephone companies serving rural areas, if the
Commission determines, after notice and comment, that--
``(A) such waiver will not affect the ability of the
Commission to ensure that all video programming activity is
carried out without any support from telephone ratepayers;
``(B) the interests of telephone ratepayers and cable
subscribers will not be harmed if such waiver is granted;
``(C) such waiver will not adversely affect the ability of
persons to obtain access to the video platform of such
carrier; and
``(D) such waiver otherwise is in the public interest.
``(2) Deadline for action.--The Commission shall act to
approve or disapprove a waiver application within 180 days
after the date it is filed.
``(3) Continued applicability of section 656.--In the case
of a common carrier that obtains a waiver under this
subsection, any requirement that section 656 applies to a
video programming affiliate shall instead apply to such
carrier.
``(e) Sunset of Requirements.--The provisions of this
section shall cease to be effective on July 1, 2000.

``SEC. 653. ESTABLISHMENT OF VIDEO PLATFORM.

``(a) Video Platform.--
``(1) In general.--Except as provided in section 613(b)(3),
any common carrier subject to title II of this Act, and that
provides video programming directly to subscribers in its
telephone service area, shall establish a video platform.
This paragraph shall not apply to any carrier to the extent
that it provides video programming directly to subscribers in
its telephone service area solely through a cable system
acquired in accordance with section 655(b).
``(2) Identification of demand for carriage.--Any common
carrier subject to the requirements of paragraph (1) shall,
prior to establishing a video platform, submit a notice to
the Commission of its intention to establish channel capacity
for the provision of video programming to meet the bona fide
demand for such capacity. Such notice shall--
``(A) be in such form and contain information concerning
the geographic area intended to be served and such
information as the Commission may require by regulations
pursuant to subsection (b);
``(B) specify the methods by which any entity seeking to
use such channel capacity should submit to such carrier a
specification of its channel capacity requirements; and
``(C) specify the procedures by which such carrier will
determine (in accordance with the Commission's regulations
under subsection (b)(1)(B)) whether such requests for
capacity are bona fide.
The Commission shall submit any such notice for publication
in the Federal Register within 5 working days.
``(3) Response to request for carriage.--After receiving
and reviewing the requests for capacity submitted pursuant to
such notice, such common carrier shall establish channel
capacity that is sufficient to provide carriage for--
``(A) all bona fide requests submitted pursuant to such
notice,
``(B) any additional channels required pursuant to section
656, and
``(C) any additional channels required by the Commission's
regulations under subsection (b)(1)(C).
``(4) Responses to changes in demand for capacity.--Any
common carrier that establishes a video platform under this
section shall--
``(A) immediately notify the Commission and each video
programming provider of any delay in or denial of channel
capacity or service, and the reasons therefor;
``(B) continue to receive and grant, to the extent of
available capacity, carriage in response to bona fide
requests for carriage from existing or additional video
programming providers;
``(C) if at any time the number of channels required for
bona fide requests for carriage may reasonably be expected
soon to exceed the existing capacity of such video platform,
immediately notify the Commission of such expectation and of
the manner and date by which such carrier will provide
sufficient capacity to meet such excess demand; and
``(D) construct such additional capacity as may be
necessary to meet such excess demand.
``(5) Dispute resolution.--The Commission shall have the
authority to resolve disputes under this section and the
regulations prescribed thereunder. Any such dispute shall be
resolved within 180 days after notice of such dispute is
submitted to the Commission. At that time or subsequently in
a separate damages 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 seek any other remedy
available under this Act.
``(b) Commission Actions.--
``(1) In general.--Within 15 months after the date of the
enactment of this section, the Commission shall complete all
actions necessary (including any reconsideration) to
prescribe regulations that--
``(A) consistent with the requirements of section 656,
prohibit a common carrier from discriminating among video
programming providers with regard to carriage on its video
platform, and ensure that the rates, terms, and conditions
for such carriage are just, reasonable, and
nondiscriminatory;
``(B) prescribe definitions and criteria for the purposes
of determining whether a request shall be considered a bona
fide request for purposes of this section;
``(C) permit a common carrier to carry on only one channel
any video programming service that is offered by more than
one video programming provider (including the common
carrier's video programming affiliate), provided that
subscribers have ready and immediate access to any such video
programming service;
``(D) extend to the distribution of video programming over
video platforms the Commission's regulations concerning
network nonduplication (47 C.F.R. 76.92 et seq.) and
syndicated exclusivity (47 C.F.R. 76.151 et seq.);
``(E) require the video platform to provide service,
transmission, and interconnection for unaffiliated or
independent video programming providers that is equivalent to
that provided to the common carrier's video programming
affiliate, except that the video platform shall not
discriminate between analog and digital video programming
offered by such unaffiliated or independent video programming
providers;
``(F)(i) prohibit a common carrier from unreasonably
discriminating in favor of its video programming affiliate
with regard to material or information provided by the common
carrier to subscribers for the purposes of selecting
programming on the video platform, or in the way such
material or information is presented to subscribers;
``(ii) require a common carrier to ensure that video
programming providers or copyright holders (or both) are able
suitably and uniquely to identify their programming services
to subscribers; and
``(iii) if such identification is transmitted as part of
the programming signal, require the carrier to transmit such
identification without change or alteration; and
``(G) prohibit a common carrier from excluding areas from
its video platform service area on the basis of the
ethnicity, race, or income of the residents of that area, and
provide for public comments on the adequacy of the proposed
service area on the basis of the standards set forth under
this subparagraph.
Nothing in this section prohibits a common carrier or its
affiliate from negotiating mutually agreeable terms and
conditions with over-the-air broadcast stations and other
unaffiliated video programming providers to allow consumer
access to their signals on any level or screen of any
gateway, menu, or other program guide, whether provided by
the carrier or its affiliate.
``(2) Applicability to other high capacity systems.--The
Commission shall apply the requirements of this section, in
lieu of the requirements of section 612, to any cable
operator of a cable system that has installed a switched,
broadband video programming delivery system, except that the
Commission shall not apply the requirements of the
regulations prescribed pursuant to subsection (b)(1)(D) or
any other requirement that the Commission determines is
inappropriate.
``(c) Regulatory Streamlining.--With respect to the
establishment and operation of a video platform, the
requirements of this section shall apply in lieu of, and not
in addition to, the requirements of title II.
``(d) Commission Inquiry.--The Commission shall conduct a
study of whether it is in the public interest to extend the
requirements of subsection (a) to any other cable operators
in lieu of the requirements of section 612. The Commission
shall submit to the Congress a report on the results of such
study not later than 2 years after the date of enactment of
this section.

``SEC. 654. AUTHORITY TO PROHIBIT CROSS-SUBSIDIZATION.

``Nothing in this part shall prohibit a State commission
that regulates the rates for telephone exchange service or
exchange access based on the cost of providing such service
or access from--
``(1) prescribing regulations to prohibit a common carrier
from engaging in any practice that results in the inclusion
in rates for telephone exchange service or exchange access of
any operating expenses, costs, depreciation charges, capital
investments, or other expenses directly associated with the
provision of competing video programming services by the
common carrier or affiliate; or
``(2) ensuring such competing video programming services
bear a reasonable share of the joint and common costs of
facilities used to provide telephone exchange service or
exchange access and competing video programming services.

[[Page H 8438]]

``SEC. 655. PROHIBITION ON BUY OUTS.

``(a) General Prohibition.--No common carrier that provides
telephone exchange service, and no entity owned by or under
common ownership or control with such carrier, may purchase
or otherwise obtain control over any cable system that is
located within its telephone service area and is owned by an
unaffiliated person.
``(b) Exceptions.--Notwithstanding subsection (a), a common
carrier may--
``(1) obtain a controlling interest in, or form a joint
venture or other partnership with, a cable system that serves
a rural area;
``(2) obtain, in addition to any interest, joint venture,
or partnership obtained or formed pursuant to paragraph (1),
a controlling interest in, or form a joint venture or other
partnership with, any cable system or systems if--
``(A) such systems in the aggregate serve less than 10
percent of the households in the telephone service area of
such carrier; and
``(B) no such system serves a franchise area with more than
35,000 inhabitants, except that a common carrier may obtain
such interest or form such joint venture or other partnership
with a cable system that serves a franchise area with more
than 35,000 but not more than 50,000 inhabitants if such
system is not affiliated with any other system whose
franchise area is contiguous to the franchise area of the
acquired system;
``(3) obtain, with the concurrence of the cable operator on
the rates, terms, and conditions, the use of that part of the
transmission facilities of such a cable system extending from
the last multi-user terminal to the premises of the end user,
if such use is reasonably limited in scope and duration, as
determined by the Commission; or
``(4) obtain a controlling interest in, or form a joint
venture or other partnership with, or provide financing to, a
cable system (hereinafter in this paragraph referred to as
`the subject cable system'), if--
``(A) the subject cable system operates in a television
market that is not in the top 25 markets, and that has more
than 1 cable system operator, and the subject cable system is
not the largest cable system in such television market;
``(B) the subject cable system and the largest cable system
in such television market held on May 1, 1995, cable
television franchises from the largest municipality in the
television market and the boundaries of such franchises were
identical on such date;
``(C) the subject cable system is not owned by or under
common ownership or control of any one of the 50 largest
cable system operators as existed on May 1, 1995; and
``(D) the largest system in the television market is owned
by or under common ownership or control of any one of the 10
largest cable system operators as existed on May 1, 1995.
``(c) Waiver.--
``(1) Criteria for waiver.--The Commission may waive the
restrictions in subsection (a) of this section only upon a
showing by the applicant that--
``(A) because of the nature of the market served by the
cable system concerned--
``(i) the incumbent cable operator would be subjected to
undue economic distress by the enforcement of such
subsection; or
``(ii) the cable system would not be economically viable if
such subsection were enforced; and
``(B) the local franchising authority approves of such
waiver.
``(2) Deadline for action.--The Commission shall act to
approve or disapprove a waiver application within 180 days
after the date it is filed.

``SEC. 656. APPLICABILITY OF PARTS I THROUGH IV.

``(a) In General.--Any provision that applies to a cable
operator under--
``(1) sections 613 (other than subsection (a)(2) thereof),
616, 617, 628, 631, 632, and 634 of this title, shall apply,
``(2) sections 611, 612, 614, and 615 of this title, and
section 325 of title III, shall apply in accordance with the
regulations prescribed under subsection (b), and
``(3) parts III and IV (other than sections 628, 631, 632,
and 634) of this title shall not apply,
to any video programming affiliate established by a common
carrier in accordance with the requirements of this part.
``(b) Implementation.--
``(1) Commission action.--The Commission shall prescribe
regulations to ensure that a common carrier in the operation
of its video platform shall provide (A) capacity, services,
facilities, and equipment for public, educational, and
governmental use, (B) capacity for commercial use, (C)
carriage of commercial and non-commercial broadcast
television stations, and (D) an opportunity for commercial
broadcast stations to choose between mandatory carriage and
reimbursement for retransmission of the signal of such
station. In prescribing such regulations, the Commission
shall, to the extent possible, impose obligations that are no
greater or lesser than the obligations contained in the
provisions described in subsection (a)(2) of this section.
``(2) Fees.--A video programming affiliate of any common
carrier that establishes a video platform under this part,
and any multichannel video programming distributor offering a
competing service using such video platform (as determined in
accordance with regulations of the Commission), shall be
subject to the payment of fees imposed by a local franchising
authority, in lieu of the fees required under section 622.
The rate at which such fees are imposed shall not exceed the
rate at which franchise fees are imposed on any cable
operator transmitting video programming in the same service
area.

``SEC. 657. RURAL AREA EXEMPTION.

``The provisions of sections 652, 653, and 655 shall not
apply to video programming provided in a rural area by a
common carrier that provides telephone exchange service in
the same area.''.
SEC. 202. COMPETITION FROM CABLE SYSTEMS.

(a) Definition of Cable Service.--Section 602(6)(B) of the
Act (47 U.S.C. 522(6)(B)) is amended by inserting ``or use''
after ``the selection''.
(b) Clustering.--Section 613 of the Act (47 U.S.C. 533) is
amended by adding at the end the following new subsection:
``(i) Acquisition of Cable Systems.--Except as provided in
section 655, the Commission may not require divestiture of,
or restrict or prevent the acquisition of, an ownership
interest in a cable system by any person based in whole or in
part on the geographic location of such cable system.''.
(c) Equipment.--Section 623(a) of the Act (47 U.S.C.
543(a)) is amended--
(1) in paragraph (6)--
(A) by striking ``paragraph (4)'' and inserting ``paragraph
(5)'';
(B) by striking ``paragraph (5)'' and inserting ``paragraph
(6)''; and
(C) by striking ``paragraph (3)'' and inserting ``paragraph
(4)'';
(2) by redesignating paragraphs (3) through (6) as
paragraphs (4) through (7), respectively; and
(3) by inserting after paragraph (2) the following new
paragraph:
``(3) Equipment.--If the Commission finds that a cable
system is subject to effective competition under subparagraph
(D) of subsection (l)(1), the rates for equipment,
installations, and connections for additional television
receivers (other than equipment, installations, and
connections furnished by such system to subscribers who
receive only a rate regulated basic service tier) shall not
be subject to regulation by the Commission or by a State or
franchising authority. If the Commission finds that a cable
system is subject to effective competition under subparagraph
(A), (B), or (C) of subsection (l)(1), the rates for any
equipment, installations, and connections furnished by such
system to any subscriber shall not be subject to regulation
by the Commission, or by a State or franchising authority. No
Federal agency, State, or franchising authority may establish
the price or rate for the installation, sale, or lease of any
equipment furnished to any subscriber by a cable system
solely in connection with video programming offered on a per
channel or per program basis.''.
(d) Limitation on Basic Tier Rate Increases; Scope of
Review.--Section 623(a) of the Act (47 U.S.C. 543(a)) is
further amended by adding at the end the following new
paragraph:
``(8) Limitation on basic tier rate increases; scope of
review.--A cable operator may not increase its basic service
tier rate more than once every 6 months. Such increase may be
implemented, using any reasonable billing or proration
method, 30 days after providing notice to subscribers and the
appropriate regulatory authority. The rate resulting from
such increase shall be deemed reasonable and shall not be
subject to reduction or refund if the franchising authority
or the Commission, as appropriate, does not complete its
review and issue a final order within 90 days after
implementation of such increase. The review by the
franchising authority or the Commission of any future
increase in such rate shall be limited to the incremental
change in such rate effected by such increase.''.
(e) National Information Infrastructure Development.--
Section 623(a) of the Act (47 U.S.C. 543) is further amended
by adding at the end the following new paragraph:
``(9) National information infrastructure.--
``(A) Purpose.--It is the purpose of this paragraph to--
``(i) promote the development of the National Information
Infrastructure;
``(ii) enhance the competitiveness of the National
Information Infrastructure by ensuring that cable operators
have incentives comparable to other industries to develop
such infrastructure; and
``(iii) encourage the rapid deployment of digital
technology necessary to the development of the National
Information Infrastructure.
``(B) Aggregation of equipment costs.--The Commission shall
allow cable operators, pursuant to any rules promulgated
under subsection (b)(3), to aggregate, on a franchise,
system, regional, or company level, their equipment costs
into broad categories, such as converter boxes, regardless of
the varying levels of functionality of the equipment within
each such broad category. Such aggregation shall not be
permitted with respect to equipment used by subscribers who
receive only a rate regulated basic service tier.
``(C) Revision to commission rules; forms.--Within 120 days
of the date of enactment of this paragraph, the Commission
shall issue revisions to the appropriate rules and forms
necessary to implement subparagraph (B).''.
(f) Complaint Threshold; Scope of Commission Review.--
Section 623(c) of the Act (47 U.S.C. 543(c)) is amended--
(1) by striking paragraph (3) and inserting the following:
``(3) Review of complaints.--
``(A) Complaint threshold.--The Commission shall have the
authority to review any increase in the rates for cable
programming services implemented after the date of enactment
of the Communications Act of 1995 only if, within 90 days
after such increase becomes effective, at least 10
subscribers to such services or 5 percent of the subscribers
to such services, whichever is greater, file separate,
individual complaints against such increase with the
Commission in accordance with the requirements established
under paragraph (1)(B).
``(B) Time period for commission review.--The Commission
shall complete its review of any such increase and issue a
final order within 90

[[Page H 8439]]
days after it receives the number of complaints required by
subparagraph (A).
``(4) Treatment of pending cable programming services
complaints.--Upon enactment of the Communications Act of
1995, the Commission shall suspend the processing of all
pending cable programming services rate complaints. These
pending complaints shall be counted by the Commission toward
the complaint threshold specified in paragraph (3)(A).
Parties shall have an additional 90 days from the date of
enactment of such Act to file complaints about prior
increases in cable programming services rates if such rate
increases were already subject to a
valid, pending complaint on such date of enactment. At the
expiration of such 90-day period, the Commission shall
dismiss all pending cable programming services rate cases
for which the complaint threshold has not been met, and
may resume its review of those pending cable programming
services rate cases for which the complaint threshold has
been met, which review shall be completed within 180 days
after the date of enactment of the Communications Act of
1995.
``(5) Scope of commission review.--A cable programming
services rate shall be deemed not unreasonable and shall not
be subject to reduction or refund if--
``(A) such rate was not the subject of a pending complaint
at the time of enactment of the Communications Act of 1995;
``(B) such rate was the subject of a complaint that was
dismissed pursuant to paragraph (4);
``(C) such rate resulted from an increase for which the
complaint threshold specified in paragraph (3)(A) has not
been met;
``(D) the Commission does not complete its review and issue
a final order in the time period specified in paragraph
(3)(B) or (4); or
``(E) the Commission issues an order finding such rate to
be not unreasonable.
The review by the Commission of any future increase in such
rate shall be limited to the incremental change in such rate
effected by such increase.'';
(2) in paragraph (1)(B) by striking ``obtain Commission
consideration and resolution of whether the rate in question
is unreasonable'' and inserting ``be counted toward the
complaint threshold specified in paragraph (3)(A)''; and
(3) in paragraph (1)(C) by striking ``such complaint'' and
inserting in lieu thereof ``the first complaint''.
(g) Uniform Rate Structure.--Section 623(d) of the Act (47
U.S.C. 543(d)) is amended to read as follows:
``(d) Uniform Rate Structure.--A cable operator shall have
a uniform rate structure throughout its franchise area for
the provision of cable services that are regulated by the
Commission or the franchising authority. Bulk discounts to
multiple dwelling units shall not be subject to this
requirement.''.
(h) Effective Competition.--Section 623(l)(1) of the Act
(47 U.S.C. 543(l)(1)) is amended--
(1) in subparagraph (B)(ii)--
(A) by inserting ``all'' before ``multichannel video
programming distributors''; and
(B) by striking ``or'' at the end thereof;
(2) by striking the period at the end of subparagraph (C)
and inserting ``; or''; and
(3) by adding at the end the following:
``(D) with respect to cable programming services and
subscriber equipment, installations, and connections for
additional television receivers (other than equipment,
installations, and connections furnished to subscribers who
receive only a rate regulated basic service tier)--
``(i) a common carrier has been authorized by the
Commission to construct facilities to provide video dialtone
service in the cable operator's franchise area;
``(ii) a common carrier has been authorized by the
Commission or pursuant to a franchise to provide video
programming directly to subscribers in the franchise area; or
``(iii) the Commission has completed all actions necessary
(including any reconsideration) to prescribe regulations
pursuant to section 653(b)(1) relating to video platforms.''.
(i) Relief for Small Cable Operators.--Section 623 of the
Act (47 U.S.C. 543) is amended by adding at the end the
following new subsection:
``(m) Small Cable Operators.--
``(1) Small cable operator relief.--A small cable operator
shall not be subject to subsections (a), (b), (c), or (d) in
any franchise area with respect to the provision of cable
programming services, or a basic service tier where such tier
was the only tier offered in such area on December 31, 1994.
``(2) Definition of small cable operator.--For purposes of
this subsection, `small cable operator' means a cable
operator that--
``(A) directly or through an affiliate, serves in the
aggregate fewer than 1 percent of all cable subscribers in
the United States; and
``(B) is not affiliated with any entity or entities whose
gross annual revenues in the aggregate exceed
$250,000,000.''.
(j) Technical Standards.--Section 624(e) of the Act (47
U.S.C. 544(e)) is amended by striking the last two sentences
and inserting the following: ``No State or franchising
authority may prohibit, condition, or restrict a cable
system's use of any type of subscriber equipment or any
transmission technology.''.
(k) Cable Security Systems.--Section 624A(b)(2) of the Act
(47 U.S.C. 544a(b)(2)) is amended to read as follows:
``(2) Cable security systems.--No Federal agency, State, or
franchising authority may prohibit a cable operator's use of
any security system (including scrambling, encryption, traps,
and interdiction), except that the Commission may prohibit
the use of any such system solely with respect to the
delivery of a basic service tier that, as of January 1, 1995,
contained only the signals and programming specified in
section 623(b)(7)(A), unless the use of such system is
necessary to prevent the unauthorized reception of such
tier.''.
(l) Cable Equipment Compatibility.--Section 624A of the Act
(47 U.S.C. 544A), is amended--
(1) in subsection (a) by striking ``and'' at the end of
paragraph (2), by striking the period at the end of paragraph
(3) and inserting ``; and''; and by adding at the end the
following new paragraph:
``(4) compatibility among televisions, video cassette
recorders, and cable systems can be assured with narrow
technical standards that mandate a minimum
degree of common design and operation, leaving all features,
functions, protocols, and other product and service
options for selection through open competition in the
market.'';
(2) in subsection (c)(1)--
(A) by redesignating subparagraphs (A) and (B) as
subparagraphs (B) and (C), respectively; and
(B) by inserting before such redesignated subparagraph (B)
the following new subparagraph:
``(A) the need to maximize open competition in the market
for all features, functions, protocols, and other product and
service options of converter boxes and other cable converters
unrelated to the descrambling or decryption of cable
television signals;''; and
(3) in subsection (c)(2)--
(A) by redesignating subparagraphs (D) and (E) as
subparagraphs (E) and (F), respectively; and
(B) by inserting after subparagraph (C) the following new
subparagraph:
``(D) to ensure that any standards or regulations developed
under the authority of this section to ensure compatibility
between televisions, video casette recorders, and cable
systems do not affect features, functions, protocols, and
other product and service options other than those specified
in paragraph (1)(B), including telecommunications interface
equipment, home automation communications, and computer
network services;''.
(m) Retiering of Basic Tier Services.--Section 625(d) of
the Act (47 U.S.C. 543(d)) is amended by adding at the end
the following new sentence: ``Any signals or services carried
on the basic service tier but not required under section
623(b)(7)(A) may be moved from the basic service tier at the
operator's sole discretion, provided that the removal of such
a signal or service from the basic service tier is permitted
by contract. The movement of such signals or services to an
unregulated package of services shall not subject such
package to regulation.''.
(n) Subscriber Notice.--Section 632 of the Act (47 U.S.C.
552) is amended--
(1) by redesignating subsection (c) as subsection (d); and
(2) by inserting after subsection (b) the following new
subsection:
``(c) Subscriber Notice.--A cable operator may provide
notice of service and rate changes to subscribers using any
reasonable written means at its sole discretion.
Notwithstanding section 623(b)(6) or any other provision of
this Act, a cable operator shall not be required to provide
prior notice of any rate change that is the result of a
regulatory fee, franchise fee, or any other fee, tax,
assessment, or charge of any kind imposed by any Federal
agency, State, or franchising authority on the transaction
between the operator and the subscriber.''.
(o) Treatment of Prior Year Losses.--
(1) Amendment.--Section 623 (48 U.S.C. 543) is amended by
adding at the end thereof the following:
``(n) Treatment of Prior Year Losses.--Notwithstanding any
other provision of this section or of section 612, losses
(including losses associated with the acquisitions of such
franchise) that were incurred prior to September 4, 1992,
with respect to a cable system that is owned and operated by
the original franchisee of such system shall not be
disallowed, in whole or in part, in the determination of
whether the rates for any tier of service or any type of
equipment that is subject to regulation under this section
are lawful.''.
(2) Effective date.--The amendment made by paragraph (1)
shall take effect on the date of enactment of this Act and
shall be applicable to any rate proposal filed on or after
September 4, 1993.

SEC. 203. COMPETITIVE AVAILABILITY OF NAVIGATION DEVICES.

Title VII of the Act is amended by adding at the end the
following new section:

``SEC. 713. COMPETITIVE AVAILABILITY OF NAVIGATION DEVICES.

``(a) Definitions.--As used in this section:
``(1) The term `telecommunications subscription service'
means the provision directly to subscribers of video, voice,
or data services for which a subscriber charge is made.
``(2) The term `telecommunications system' or a
`telecommunications system operator' means a provider of
telecommunications subscription service.
``(b) Competitive Consumer Availability of Customer
Premises Equipment.--The Commission shall adopt regulations
to assure competitive availability, to consumers of
telecommunications subscription services, of converter boxes,
interactive communications devices, and other customer
premises equipment from manufacturers, retailers, and other
vendors not affiliated with any telecommunications system
operator. Such regulations shall take into account the needs
of owners and distributors of video programming and
information services to ensure system and signal security and
prevent theft of service. Such regulations shall not prohibit
any telecommunications system operator from also offering
devices and customer premises equipment to consumers,
provided that the system operator's charges to consumers for
such devices

[[Page H 8440]]
and equipment are separately stated and not bundled with or subsidized
by charges for any telecommunications subscription service.
``(c) Waiver for New Network Services.--The Commission may
waive a regulation adopted pursuant to subsection (b) for a
limited time upon an appropriate showing by a
telecommunications system operator that such waiver is
necessary to the introduction of a new telecommunications
subscription service.
``(d) Sunset.--The regulations adopted pursuant to this
section shall cease to apply to any market for the
acquisition of converter boxes, interactive communications
devices, or other customer premises equipment when the
Commission determines that such market is competitive.''.

SEC. 204. VIDEO PROGRAMMING ACCESSIBILITY.

(a) Commission Inquiry.--Within 180 days after the date of
enactment of this section, the Federal Communications
Commission shall complete an inquiry to ascertain the level
at which video programming is closed captioned. Such inquiry
shall examine the extent to which existing or
previously published programming is closed captioned, the
size of the video programming provider or programming
owner providing closed captioning, the size of the market
served, the relative audience shares achieved, or any
other related factors. The Commission shall submit to the
Congress a report on the results of such inquiry.
(b) Accountability Criteria.--Within 18 months after the
date of enactment, the Commission shall prescribe such
regulations as are necessary to implement this section. Such
regulations shall ensure that--
(1) video programming first published or exhibited after
the effective date of such regulations is fully accessible
through the provision of closed captions, except as provided
in subsection (d); and
(2) video programming providers or owners maximize the
accessibility of video programming first published or
exhibited prior to the effective date of such regulations
through the provision of closed captions, except as provided
in subsection (d).
(c) Deadlines for Captioning.--Such regulations shall
include an appropriate schedule of deadlines for the
provision of closed captioning of video programming.
(d) Exemptions.--Notwithstanding subsection (b)--
(1) the Commission may exempt by regulation programs,
classes of programs, or services for which the Commission has
determined that the provision of closed captioning would be
economically burdensome to the provider or owner of such
programming;
(2) 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 contracts in effect on the date of enactment of this
Act, except that nothing in this section shall be construed
to relieve a video programming provider of its obligations to
provide services required by Federal law; and
(3) a provider of video programming or program owner may
petition the Commission for an exemption from the
requirements of this section, and the Commission may grant
such petition upon a showing that the requirements contained
in this section would result in an undue burden.
(e) Undue Burden.--The term ``undue burden'' means
significant difficulty or expense. In determining whether the
closed captions necessary to comply with the requirements of
this paragraph would result in an undue economic burden, the
factors to be considered include--
(1) the nature and cost of the closed captions for the
programming;
(2) the impact on the operation of the provider or program
owner;
(3) the financial resources of the provider or program
owner; and
(4) the type of operations of the provider or program
owner.
(f) Video Descriptions Inquiry.--Within 6 months after the
date of enactment of this Act, the Commission shall commence
an inquiry to examine the use of video descriptions on video
programming in order to ensure the accessibility of video
programming to persons with visual impairments, and report to
Congress on its findings. The Commission's report shall
assess appropriate methods and schedules for phasing video
descriptions into the marketplace, technical and quality
standards for video descriptions, a definition of programming
for which video descriptions would apply, and other technical
and legal issues that the Commission deems appropriate.
Following the completion of such inquiry, the Commission may
adopt regulation it deems necessary to promote the
accessibility of video programming to persons with visual
impairments.
(g) Video Description.--For purposes of this section,
``video description'' means the insertion of audio narrated
descriptions of a television program's key visual elements
into natural pauses between the program's dialogue.
(h) Private Rights of Actions Prohibited.--Nothing in this
section shall be construed to authorize any private right of
action to enforce any requirement of this section or any
regulation thereunder. The Commission shall have exclusive
jurisdiction with respect to any complaint under this
section.

SEC. 205. TECHNICAL AMENDMENTS.

(a) Retransmission.--Section 325(b)(2)(D) of the Act (47
U.S.C. 325(b)(2)(D)) is amended to read as follows:
``(D) retransmission by a cable operator or other
multichannel video programming distributor of the signal of a
superstation if (i) the customers served by the cable
operator or other multichannel video programming distributor
reside outside the originating station's television market,
as defined by the Commission for purposes of section
614(h)(1)(C); (ii) such signal was obtained from a satellite
carrier or terrestrial microwave common carrier; and (iii)
and the origination station was a superstation on May 1,
1991.''.
(b) Market Determinations.--Section 614(h)(1)(C)(i) of the
Act (47 U.S.C. 534(h)(1)(C)(i)) is amended by striking out
``in the manner provided in section 73.3555(d)(3)(i) of title
47, Code of Federal Regulations, as in effect on May 1,
1991,'' and inserting ``by the Commission by regulation or
order using, where available, commercial publications which
delineate television markets based on viewing patterns,''.
(c) Time for Decision.--Section 614(h)(1)(C)(iv) of such
Act is amended to read as follows:
``(iv) Within 120 days after the date a request is filed
under this subparagraph, the Commission shall grant or deny
the request.''.
(d) Processing of Pending Complaints.--The Commission
shall, unless otherwise informed by the person making the
request, assume that any person making a request to include
or exclude additional communities under section 614(h)(1)(C)
of such Act (as in effect prior to the date of enactment of
this Act) continues to request such inclusion or exclusion
under such section as amended under subsection (b).
TITLE III--BROADCAST COMMUNICATIONS COMPETITIVENESS

SEC. 301. BROADCASTER SPECTRUM FLEXIBILITY.

Title III of the Act is amended by inserting after section
335 (47 U.S.C. 335) the following new section:

``SEC. 336. BROADCAST SPECTRUM FLEXIBILITY.

``(a) Commission Action.--If the Commission determines to
issue additional licenses for advanced television services,
the Commission shall--
``(1) limit the initial eligibility for such licenses to
persons that, as of the date of such issuance, are licensed
to operate a television broadcast station or hold a permit to
construct such a station (or both); and
``(2) adopt regulations that allow such licensees or
permittees to offer such ancillary or supplementary services
on designated frequencies as may be consistent with the
public interest, convenience, and necessity.
``(b) Contents of Regulations.--In prescribing the
regulations required by subsection (a), the Commission
shall--
``(1) only permit such licensee or permittee to offer
ancillary or supplementary services if the use of a
designated frequency for such services is consistent with the
technology or method designated by the Commission for the
provision of advanced television services;
``(2) limit the broadcasting of ancillary or supplementary
services on designated frequencies so as to avoid derogation
of any advanced television services, including high
definition television broadcasts, that the Commission may
require using such frequencies;
``(3) apply to any other ancillary or supplementary service
such of the Commission's regulations as are applicable to the
offering of analogous services by any other person, except
that no ancillary or supplementary service shall have any
rights to carriage under section 614 or 615 or be deemed a
multichannel video programming distributor for purposes of
section 628;
``(4) adopt such technical and other requirements as may be
necessary or appropriate to assure the quality of the signal
used to provide advanced television services, and may adopt
regulations that stipulate the minimum number of hours per
day that such signal must be transmitted; and
``(5) prescribe such other regulations as may be necessary
for the protection of the public interest, convenience, and
necessity.
``(c) Recovery of License.--
``(1) Conditions required.--If the Commission grants a
license for advanced television services to a person that, as
of the date of such issuance, is licensed to operate a
television broadcast station or holds a permit to construct
such a station (or both),
the Commission shall, as a condition of such license,
require that, upon a determination by the Commission
pursuant to the regulations prescribed under paragraph
(2), either the additional license or the original license
held by the licensee be surrendered to the Commission in
accordance with such regulations for reallocation or
reassignment (or both) pursuant to Commission regulation.
``(2) Criteria.--The Commission shall prescribe criteria
for rendering determinations concerning license surrender
pursuant to license conditions required by paragraph (1).
Such criteria shall--
``(A) require such determinations to be based, on a market-
by-market basis, on whether the substantial majority of the
public have obtained television receivers that are capable of
receiving advanced television services; and
``(B) not require the cessation of the broadcasting under
either the original or additional license if such cessation
would render the television receivers of a substantial
portion of the public useless, or otherwise cause undue
burdens on the owners of such television receivers.
``(3) Auction of returned spectrum.--Any license
surrendered under the requirements of this subsection shall
be subject to assignment by use of competitive bidding
pursuant to section 309(j), notwithstanding any limitations
contained in paragraph (2) of such section.
``(d) Fees.--
``(1) Services to which fees apply.--If the regulations
prescribed pursuant to subsection (a) permit a licensee to
offer ancillary or supplementary services on a designated
frequency--
``(A) for which the 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

[[Page H 8441]]
in return for transmitting material furnished by such third party
(other than commercial advertisements used to support
broadcasting for which a subscription fee is not required),

the Commission shall establish a program to assess and
collect from the licensee for such designated frequency an
annual fee or other schedule or method of payment that
promotes the objectives described in subparagraphs (A) and
(B) of paragraph (2).
``(2) Collection of fees.--The program required by
paragraph (1) shall--
``(A) be designed (i) to recover for the public a portion
of the value of the public spectrum resource made available
for such commercial use, and (ii) to avoid unjust enrichment
through the method employed to permit such uses of that
resource;
``(B) recover for the public an amount that, to the extent
feasible, equals but does not exceed (over the term of the
license) the amount that would have been recovered had such
services been licensed pursuant to the provisions of section
309(j) of this Act and the Commission's regulations
thereunder; and
``(C) be adjusted by the Commission from time to time in
order to continue to comply with the requirements of this
paragraph.
``(3) Treatment of revenues.--
``(A) General rule.--Except as provided in subparagraph
(B), all proceeds obtained pursuant to the regulations
required by this subsection shall be deposited in the
Treasury in accordance with chapter 33 of title 31, United
States Code.
``(B) Retention of revenues.--Notwithstanding subparagraph
(A), the salaries and expenses account of the Commission
shall retain as an offsetting collection such sums as may be
necessary from such proceeds for the costs of developing and
implementing the program required by this section and
regulating and supervising advanced television services. Such
offsetting collections shall be available for obligation
subject to the terms and conditions of the receiving
appropriations account, and shall be deposited in such
accounts on a quarterly basis.
``(4) Report.--Within 5 years after the date of the
enactment of this section, the Commission shall report to the
Congress on the implementation of the program required by
this subsection, and shall annually thereafter advise the
Congress on the amounts collected pursuant to such program.
``(e) Evaluation.--Within 10 years after the date the
Commission first issues additional licenses for advanced
television services, the Commission shall conduct an
evaluation of the advanced television services program. Such
evaluation shall include--
``(1) an assessment of the willingness of consumers to
purchase the television receivers necessary to receive
broadcasts of advanced television services;
``(2) an assessment of alternative uses, including public
safety use, of the frequencies used for such broadcasts; and
``(3) the extent to which the Commission has been or will
be able to reduce the amount of spectrum assigned to
licensees.
``(f) Definitions.--As used in this section:
``(1) Advanced television services.--The term `advanced
television services' means television services provided using
digital or other advanced technology as further defined in
the opinion, report, and order of the Commission entitled
`Advanced Television Systems and Their Impact Upon the
Existing Television Broadcast Service', MM Docket 87-268,
adopted September 17, 1992, and successor proceedings.
``(2) Designated frequencies.--The term `designated
frequency' means each of the frequencies designated by the
Commission for licenses for advanced television services.
``(3) High definition television.--The term `high
definition television' refers to systems that offer
approximately twice the vertical and horizontal resolution of
receivers generally available on the date of enactment of
this section, as further defined in the proceedings described
in paragraph (1) of this subsection.''.
SEC. 302. BROADCAST OWNERSHIP.

(a) Amendment.--Title III of the Act is amended by
inserting after section 336 (as added by section 301) the
following new section:

``SEC. 337. BROADCAST OWNERSHIP.

``(a) Limitations on Commission Rulemaking Authority.--
Except as expressly permitted in this section, the Commission
shall not prescribe or enforce any regulation--
``(1) prohibiting or limiting, either nationally or within
any particular area, a person or entity from holding any form
of ownership or other interest in two or more broadcasting
stations or in a broadcasting station and any other medium of
mass communication; or
``(2) prohibiting a person or entity from owning,
operating, or controlling two or more networks of
broadcasting stations or from owning, operating, or
controlling a network of broadcasting stations and any other
medium of mass communications.
``(b) Television Ownership Limitations.--
``(1) National audience reach limitations.--The Commission
shall prohibit a person or entity from obtaining any license
if such license would result in such person or entity
directly or indirectly owning, operating, or controlling, or
having a cognizable interest in, television stations which
have an aggregate national audience reach exceeding--
``(A) 35 percent, for any determination made under this
paragraph before one year after the date of enactment of this
section; or
``(B) 50 percent, for any determination made under this
paragraph on or after one year after such date of enactment.

Within 3 years after such date of enactment, the Commission
shall conduct a study on the operation of this paragraph and
submit a report to the Congress on the development of
competition in the television marketplace and the need for
any revisions to or elimination of this paragraph.
``(2) Multiple licenses in a market.--
``(A) In general.--The Commission shall prohibit a person
or entity from obtaining any license if such license would
result in such person or entity directly or indirectly
owning, operating, or controlling, or having a cognizable
interest in, two or more television stations within the same
television market.
``(B) Exception for multiple uhf stations and for uhf-vhf
combinations.--Notwithstanding subparagraph (A), the
Commission shall not prohibit a person or entity from
directly or indirectly owning, operating, or controlling, or
having a cognizable interest in, two television stations
within the same television market if at least one of such
stations is a UHF television, unless the Commission
determines that permitting such ownership, operation, or
control will harm competition or will harm the preservation
of a diversity of media voices in the local television
market.
``(C) Exception for vhf-vhf combinations.--Notwithstanding
subparagraph (A), the Commission may permit a person or
entity to directly or indirectly own, operate, or control, or
have a cognizable interest in, two VHF television stations
within the same television market, if the Commission
determines that permitting such ownership, operation, or
control will not harm competition and will not harm the
preservation of a diversity of media voices in the local
television market.
``(c) Local Cross-Media Ownership Limits.--In a proceeding
to grant, renew, or authorize the assignment of any station
license under this title, the Commission may deny the
application if the Commission determines that the combination
of such station and more than one other nonbroadcast media of
mass communication would result in an undue concentration of
media voices in the respective local market. In considering
any such combination, the Commission shall not grant the
application if all the media of mass communication in such
local market would be owned, operated, or controlled by two
or fewer persons or entities. This subsection shall not
constitute authority for the Commission to prescribe
regulations containing local cross-media ownership
limitations. The Commission may not, under the authority of
this subsection, require any person or entity to divest
itself of any portion of any combination of stations and
other media of mass communications that such person or entity
owns, operates, or controls on the date of enactment of this
section unless such person or entity acquires another station
or other media of mass communications after such date in such
local market.
``(d) Transition Provisions.--Any provision of any
regulation prescribed before the date of enactment of this
section that is inconsistent with the requirements of this
section shall cease to be effective on such date of
enactment. The Commission shall complete all actions
(including any reconsideration) necessary to amend its
regulations to conform to the requirements of this section
not later than 6 months after such date of enactment. Nothing
in this section shall be construed to prohibit the
continuation or renewal of any television local marketing
agreement that is in effect on such date of enactment and
that is in compliance with Commission regulations on such
date.''.
(b) Conforming Amendment.--Section 613(a) of the Act (47
U.S.C. 533(a)) is repealed.
SEC. 303. FOREIGN INVESTMENT AND OWNERSHIP.

(a) Station Licenses.--Section 310(a) (47 U.S.C. 310(a)) is
amended to read as follows:
``(a) Grant to or Holding by Foreign Government or
Representative.--No station license required under title III
of this Act shall be granted to or held by any foreign
government or any representative thereof. This subsection
shall not apply to licenses issued under such terms and
conditions as the Commission may prescribe to mobile earth
stations engaged in occasional or short-term transmissions
via satellite of audio or television program material and
auxilliary signals if such transmissions are not intended for
direct reception by the general public in the United
States.''.
(b) Termination of Foreign Ownership Restrictions.--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.--Subsection (b) shall not
apply to any common carrier license granted, or for which
application is made, after the date of enactment of this
subsection with respect to any alien (or representative
thereof), corporation, or foreign government (or
representative thereof) if--
``(A) the President determines that the foreign country of
which such alien is a citizen, in which such corporation is
organized, or in which the foreign government is in control
is party to an international agreement which requires the
United States to provide national or most-favored-nation
treatment in the grant of common carrier licenses; or
``(B) the Commission determines that not applying
subsection (b) would serve the public interest.
``(2) Commission considerations.--In making its
determination, under paragraph (1)(B), the Commission may
consider, among other public interest factors, whether
effective competitive opportunities are available to United
States nationals or corporations in the applicant's home
market. In evaluating the public interest, the Commission
shall exercise great deference to the President with respect
to United States national security, law enforcement
requirements, foreign policy, the interpretation of
international agreements, and trade policy (as well as direct
investment as it relates to
international trade policy).

[[Page H 8442]]
Upon receipt of an application that requires a finding under this
paragraph, the Commission shall cause notice thereof to be
given to the President or any agencies designated by the
President to receive such notification.
``(3) Further commission review.--Except as otherwise
provided in this paragraph, the Commission may determine that
any foreign country with respect to which it has made a
determination under paragraph (1) has ceased to meet the
requirements for that determination. In making this
determination, the Commission shall exercise great deference
to the President with respect to United States national
security, law enforcement requirements, foreign policy, the
interpretation of international agreements, and trade policy
(as well as direct investment as it relates to international
trade policy). If a determination under this paragraph is
made then--
``(A) subsection (b) shall apply with respect to such
aliens, corporation, and government (or their
representatives) on the date that 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 reviewed
by the Commission under the provisions of paragraphs (1)(B)
and (2).
``(4) Observance of international obligations.--Paragraph
(3) shall not apply to the extent the President determines
that it is inconsistent with any international agreement to
which the United States is a party.
``(5) Notifications to congress.--The President and the
Commission shall notify the appropriate committees of the
Congress of any determinations made under paragraph (1), (2),
or (3).''.
SEC. 304. TERM OF LICENSES.

Section 307(c) of the Act (47 U.S.C. 307(c)) is amended to
read as follows:
``(c) Terms of Licenses.--
``(1) Initial and renewal licenses.--Each license granted
for the operation of a broadcasting station shall be for a
term of not to exceed seven years. Upon application therefor,
a renewal of such license may be granted from time to time
for a term of not to exceed seven years from the date of
expiration of the preceding license, if the Commission finds
that public interest, convenience, and necessity would be
served thereby. Consistent with the foregoing provisions of
this subsection, the Commission may by rule prescribe the
period or periods for which licenses shall be granted and
renewed for particular classes of stations, but the
Commission may not adopt or follow any rule which would
preclude it, in any case involving a station of a particular
class, from granting or renewing a license for a shorter
period than that prescribed for stations of such class if, in
its judgment, public interest, convenience, or necessity
would be served by such action.
``(2) Materials in application.--In order to expedite
action on applications for renewal of broadcasting station
licenses and in order to avoid needless expense to applicants
for such renewals, the Commission shall not require any such
applicant to file any information which previously has been
furnished to the Commission or which is not directly material
to the considerations that affect the granting or denial of
such application, but the Commission may require any new or
additional facts it deems necessary to make its findings.
``(3) Continuation pending decision.--Pending any hearing
and final decision on such an application and the disposition
of any petition for rehearing pursuant to section 405, the
Commission shall continue such license in effect.''.
SEC. 305. BROADCAST LICENSE RENEWAL PROCEDURES.

(a) Amendment.--Section 309 of the Act (47 U.S.C. 309) is
amended by adding at the end thereof the following new
subsection:
``(k) Broadcast Station Renewal Procedures.--
``(1) Standards for renewal.--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, with respect to that station, during
the preceding term of its license--
``(A) the station has served the public interest,
convenience, and necessity;
``(B) there have been no serious violations by the licensee
of this Act or the rules and regulations of the Commission;
and
``(C) 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.
``(2) Consequence of failure to meet standard.--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 (3), or
grant such application on terms and conditions as are
appropriate, including renewal for a term less than the
maximum otherwise permitted.
``(3) Standards for denial.--If the Commission determines,
after notice and opportunity for a hearing as provided in
subsection (e), that a licensee has failed to meet the
requirements specified in paragraph (1) 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.
``(4) Competitor consideration prohibited.--In making the
determinations specified in paragraph (1) or (2), 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.''.
(b) Conforming Amendment.--Section 309(d) of the Act (47
U.S.C. 309(d)) is amended by inserting after ``with
subsection (a)'' each place such term appears the following:
``(or subsection (k) in the case of renewal of any broadcast
station license)''.
(c) Effective Date.--The amendments made by this section
shall apply to any application for renewal filed on or after
May 31, 1995.

SEC. 306. EXCLUSIVE FEDERAL JURISDICTION OVER DIRECT
BROADCAST SATELLITE SERVICE.

Section 303 of the Act (47 U.S.C. 303) is amended by adding
at the end thereof the following new subsection:
``(v) Have exclusive jurisdiction over the regulation of
the direct broadcast satellite service.''.

SEC. 307. AUTOMATED SHIP DISTRESS AND SAFETY SYSTEMS.

Notwithstanding any provision of the Act, a ship documented
under the laws of the United States operating in accordance
with the Global Maritime Distress and Safety System
provisions of the Safety of Life at Sea Convention shall not
be required to be equipped with a radio telegraphy station
operated by one or more radio officers or operators.

SEC. 308. RESTRICTIONS ON OVER-THE-AIR RECEPTION DEVICES.

Within 180 days after the enactment of this Act, the
Commission shall, pursuant to section 303, promulgate
regulations to prohibit restrictions that inhibit a viewer's
ability to receive video programming services through signal
receiving devices designed for off-the-air reception of
television broadcast signals or direct broadcast satellite
services.

SEC. 309. DBS SIGNAL SECURITY.

Section 705(e)(4) of the Act (47 U.S.C. 605(e)) is amended
by inserting after ``satellite cable programming'' the
following: ``or programming of a licensee in the direct
broadcast satellite service''.
TITLE IV--EFFECT ON OTHER LAWS

SEC. 401. RELATIONSHIP TO OTHER LAWS.

(a) Modification of Final Judgment.--Parts II and III of
title II of the Communications Act of 1934 (as added by this
Act) shall supersede the Modification of Final Judgment,
except that such part shall not affect--
(1) section I of the Modification of Final Judgment,
relating to AT&T reorganization,
(2) section II(A) (including appendix B) and II(B) of the
Modification of Final Judgment, relating to equal access and
nondiscrimination,
(3) section IV(F) and IV(I) of the Modification of Final
Judgment, with respect to the requirements included in the
definitions of ``exchange access'' and ``information
access'',
(4) section VIII(B) of the Modification of Final Judgment,
relating to printed advertising directories,
(5) section VIII(E) of the Modification of Final Judgment,
relating to notice to customers of AT&T,
(6) section VIII(F) of the Modification of Final Judgment,
relating to less than equal exchange access,
(7) section VIII(G) of the Modification of Final Judgment,
relating to transfer of AT&T assets, including all exceptions
granted thereunder before the date of the enactment of this
Act, and
(8) with respect to the parts of the Modification of Final
Judgment described in paragraphs (1) through (7)--
(A) section III of the Modification of Final Judgment,
relating to applicability and effect,
(B) section IV of the Modification of Final Judgment,
relating to definitions,
(C) section V of the Modification of Final Judgment,
relating to compliance,
(D) section VI of the Modification of Final Judgment,
relating to visitorial provisions,
(E) section VII of the Modification of Final Judgment,
relating to retention of jurisdiction, and
(F) section VIII(I) of the Modification of Final Judgment,
relating to the court's sua sponte authority.
(b) Antitrust Laws.--Nothing in this Act shall be construed
to modify, impair, or supersede the applicability of any of
the antitrust laws.
(c) Federal, State, and Local Law.--(1) Except as provided
in paragraph (2), parts II and III of title II of the
Communications Act of 1934 shall not be construed to modify,
impair, or supersede Federal, State, or local law unless
expressly so provided in such part.
(2) Parts II and III of title II of the Communications Act
of 1934 shall supersede State and local law to the extent
that such law would impair or prevent the operation of such
part.
(d) Termination.--The provisions of the GTE consent decree
shall cease to be effective on the date of enactment of this
Act. For purposes of this subsection, the term ``GTE consent
decree'' means the order entered on December 21, 1984 (as
restated on January 11, 1985), in United States v. GTE
Corporation, Civil Action No. 83-1298, in the United States
District Court for the District of Columbia, and includes any
judgment or order with respect to such action entered on or
after December 21, 1984.
(e) Inapplicability of Final Judgment to Wireless
Successors.--No person shall be subject to the provisions of
the Modification of Final Judgment by reason of having
acquired wireless exchange assets or operations previously
owned by a Bell operating company or an affiliate of a Bell
operating company.
(f) Antitrust Laws.--As used in this section, the term
``antitrust laws'' has the meaning given it in subsection (a)
of the first section of the Clayton Act (15 U.S.C. 12(a)),
except that such term includes the Act of June 19, 1936 (49
Stat. 1526; 15 U.S.C. 13 et seq.), commonly known as the
Robinson Patman Act, and section 5 of the Federal Trade
Commission Act (15

[[Page H 8443]]
U.S.C. 45) to the extent that such section 5 applies to unfair methods
of competition.
SEC. 402. PREEMPTION OF LOCAL TAXATION WITH RESPECT TO DBS
SERVICES.

(a) Preemption.--A provider of direct-to-home satellite
service, or its agent or representative for the sale or
distribution of direct-to-home satellite services, shall be
exempt from the collection or remittance, or both, of any tax
or fee, as defined by subsection (b)(4), imposed by any local
taxing jurisdiction with respect to the provision of direct-
to-home satellite services. Nothing in this section shall be
construed to exempt from collection or remittance any tax or
fee on the sale of equipment.
(b) Definitions.--For the purposes of this section--
(1) Direct-to-home satellite service.--The term ``direct-
to-home satellite service'' means the transmission or
broadcasting by satellite of programming directly to the
subscribers' premises without the use of ground receiving or
distribution equipment, except at the subscribers' premises
or in the uplink process to the satellite.
(2) Direct-to-home satellite service provider.--For
purposes of this section, a ``provider of direct-to-home
satellite service'' means a person who transmits or
broadcasts direct-to-home satellite services.
(3) Local taxing jurisdiction.--The term ``local taxing
jurisdiction'' means any municipality, city, county,
township, parish, transportation district, or assessment
jurisdiction, or any other local jurisdiction with the
authority to impose a tax or fee.
(4) Tax or fee.--The terms ``tax'' and ``fee'' mean any
local sales tax, local use tax, local intangible tax, local
income tax, business license tax, utility tax, privilege tax,
gross receipts tax, excise tax, franchise fees, local
telecommunications tax, or any other tax, license, or fee
that is imposed for the privilege of doing business,
regulating, or raising revenue for a local taxing
jurisdiction.
(c) Effective Date.--This section shall be effective as of
June 1, 1994.
TITLE V--DEFINITIONS

SEC. 501. DEFINITIONS.

(a) Additional Definitions.--Section 3 of the Act (47
U.S.C. 153) is amended--
(1) in subsection (r)--
(A) by inserting ``(A)'' after ``means''; and
(B) by inserting before the period at the end the
following: ``, or (B) service provided through a system of
switches, transmission equipment, or other facilities (or
combination thereof) by which a subscriber can originate and
terminate a telecommunications service within a State but
which does not result in the subscriber incurring a telephone
toll charge''; and
(2) by adding at the end thereof the following:
``(35) Affiliate.--The term `affiliate', when used in
relation to any person or entity, means another person or
entity who owns or controls, is owned or controlled by, or is
under common ownership or control with, such person or
entity.
``(36) Bell operating company.--The term `Bell operating
company' means--
``(A) Bell Telephone Company of Nevada, Illinois Bell
Telephone Company, Indiana Bell Telephone Company,
Incorporated, Michigan Bell Telephone Company, New England
Telephone and Telegraph Company, New Jersey Bell Telephone
Company, New York Telephone Company, U S West Communications
Company, South Central Bell Telephone Company, Southern Bell
Telephone and Telegraph Company, Southwestern Bell Telephone
Company, The Bell Telephone Company of Pennsylvania, The
Chesapeake and Potomac Telephone Company, The Chesapeake and
Potomac Telephone Company of Maryland, The Chesapeake and
Potomac Telephone Company of Virginia, The Chesapeake and
Potomac Telephone Company of West Virginia, The Diamond State
Telephone Company, The Ohio Bell Telephone Company, The
Pacific Telephone and Telegraph Company, or Wisconsin
Telephone Company;
``(B) any successor or assign of any such company that
provides telephone exchange service.
``(37) Cable system.--The term `cable system' has the
meaning given such term in section 602(7) of this Act.
``(38) Customer premises equipment.--The term `customer
premises equipment' means equipment employed on the premises
of a person (other than a carrier) to originate, route, or
terminate telecommunications.
``(39) Dialing parity.--The term `dialing parity' means
that a person that is not an affiliated enterprise of a local
exchange carrier is able to provide telecommunications
services in such a manner that customers have the ability to
route automatically, without the use of any access code,
their telecommunications to the telecommunications services
provider of the customer's designation from among 2 or more
telecommunications services providers (including such local
exchange carrier).
``(40) Exchange access.--The term `exchange access' means
the offering of telephone exchange services or facilities for
the purpose of the origination or termination of interLATA
services.
``(41) Information service.--The term `information service'
means the offering of a capability for generating, acquiring,
storing, transforming, processing, retrieving, utilizing, or
making available information via telecommunications, and
includes electronic publishing, but does not include any use
of any such capability for the management, control, or
operation of a telecommunications system or the management of
a telecommunications service.
``(42) Interlata service.--The term `interLATA service'
means telecommunications between a point located in a local
access and transport area and a point located outside such
area.
``(43) Local access and transport area.--The term `local
access and transport area' or `LATA' means a contiguous
geographic area--
``(A) established by a Bell operating company such that no
exchange area includes points within more than 1 metropolitan
statistical area, consolidated metropolitan statistical area,
or State, except as expressly permitted under the
Modification of Final Judgment before the date of the
enactment of this paragraph; or
``(B) established or modified by a Bell operating company
after the date of enactment of this paragraph and approved by
the Commission.
``(44) Local exchange carrier.--The term `local exchange
carrier' means any person that is engaged in the provision of
telephone exchange service or exchange access. Such term does
not include a person insofar as such person is engaged in the
provision of a commercial mobile service under section
332(c), except to the extent that the Commission finds that
such service as provided by such person in a State is a
replacement for a substantial portion of the wireline
telephone exchange service within such State.
``(45) Modification of final judgment.--The term
`Modification of Final Judgment' means the order entered
August 24, 1982, in the antitrust action styled United States
v. Western Electric, Civil Action No. 82-0192, in the United
States District Court for the District of Columbia, and
includes any judgment or order with respect to such action
entered on or after August 24, 1982.
``(46) Number portability.--The term `number portability'
means the ability of users of telecommunications services to
retain existing telecommunications numbers without impairment
of quality, reliability, or convenience when changing from
one provider of telecommunications services to another, as
long as such user continues to be located within the area
served by the same central office of the carrier from which
the user is changing.
``(47) Rural telephone company.--The term `rural telephone
company' means a local exchange carrier operating entity to
the extent that such entity--
``(A) provides common carrier service to any local exchange
carrier study area that does not include either--
``(i) any incorporated place of 10,000 inhabitants or more,
or any part thereof, based on the most recent available
population statistics of the Bureau of the Census; or
``(ii) any territory, incorporated or unincorporated,
included in an urbanized area, as defined by the Bureau of
the Census as of August 10, 1993;
``(B) provides telephone exchange service, including
telephone exchange access service, to fewer than 50,000
access lines;
``(C) provides telephone exchange service to any local
exchange carrier study area with fewer than 100,000 access
lines; or
``(D) has less than 15 percent of its access lines in
communities of more than 50,000 on the date of enactment of
this paragraph.
``(48) Telecommunications.--The term `telecommunications'
means the transmission, between or among points specified by
the subscriber, of information of the subscriber's choosing,
without change in the form or content of the information as
sent and received, by means of an electromagnetic
transmission medium, including all instrumentalities,
facilities, apparatus, and services (including the
collection, storage, forwarding, switching, and delivery of
such information) essential to such transmission.
``(49) Telecommunications equipment.--The term
`telecommunications equipment' means equipment, other than
customer premises equipment, used by a carrier to provide
telecommunications services, and includes software integral
to such equipment (including upgrades).
``(50) Telecommunications service.--The term
`telecommunications service' means the offering, on a common
carrier basis, of telecommunications facilities, or of
telecommunications by means of such facilities. Such term
does not include an information service.''.
(b) Stylistic Consistency.--Section 3 of the Act (47 U.S.C.
153) is amended--
(1) in subsections (e) and (n), by redesignating clauses
(1), (2) and (3), as clauses (A), (B), and (C), respectively;
(2) in subsection (w), by redesignating paragraphs (1)
through (5) as subparagraphs (A) through (E), respectively;
(3) in subsections (y) and (z), by redesignating paragraphs
(1) and (2) as subparagraphs (A) and (B), respectively;
(4) by redesignating subsections (a) through (ff) as
paragraphs (1) through (32);
(5) by indenting such paragraphs 2 em spaces;
(6) by inserting after the designation of each such
paragraph--
(A) a heading, in a form consistent with the form of the
heading of this subsection, consisting of the term defined by
such paragraph, or the first term so defined if such
paragraph defines more than one term; and
(B) the words ``The term'';
(7) by changing the first letter of each defined term in
such paragraphs from a capital to a lower case letter (except
for ``United States'', ``State'', ``State commission'', and
``Great Lakes Agreement''); and
(8) by reordering such paragraphs and the additional
paragraphs added by subsection (a) in alphabetical order
based on the headings of such paragraphs and renumbering such
paragraphs as so reordered.
(c) Conforming Amendments.--The Act is amended--
(1) in section 225(a)(1), by striking ``section 3(h)'' and
inserting ``section 3'';
(2) in section 332(d), by striking ``section 3(n)'' each
place it appears and inserting ``section 3''; and
(3) in sections 621(d)(3), 636(d), and 637(a)(2), by
striking ``section 3(v)'' and inserting ``section 3''.

[[Page H 8444]]

TITLE VI--SMALL BUSINESS COMPLAINT PROCEDURE

SEC. 601. COMPLAINT PROCEDURE.

(a) Procedure Required.--The Federal Communications
Commission shall establish procedures for the receipt and
review of complaints concerning violations of the
Communications Act of 1934, and the rules and regulations
thereunder, that are likely to result, or have resulted, as a
result of the violation, in material financial harm to a
provider of telemessaging service, or other small business
engaged in providing an information service or other
telecommunications service. Such procedures shall be
established within 120 days after the date of enactment of
this Act.
(b) Deadlines for Procedures; Sanctions.--The procedures
under this section shall ensure that the Commission will make
a final determination with respect to any such complaint
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, order the
common carrier and its affiliates to cease engaging in such
violation pending such final determination. In addition, the
Commission may exercise its authority to impose other
penalties or sanctions, to the extent otherwise provided by
law.
(c) Definition.--For purposes of this section, a small
business shall be any business entity that, along with any
affiliate or subsidiary, has fewer than 300 employees.

The CHAIRMAN. Before consideration of any other amendment, it shall
be in order to consider the amendment printed in part 1 of House Report
104-223, which may be offered only by a Member designated in the
report, shall be considered read, shall be debatable for 30 minutes,
equally divided and controlled by the proponent and an opponent, shall
not be subject to amendment, and shall not be subject to a demand for
division of the question.
If that amendment is adopted, the bill, as amended, shall be
considered as the original bill for the purpose of further amendment.
No further amendment shall be in order except the amendments printed
in part 2 of the report, which may be considered in the order printed
in the report, may be offered only by a Member designated in the
report, shall be considered read, shall be debatable for the time
specified in the report, equally divided and controlled by the
proponent and an opponent, shall not be subject to amendment, except as
specified in the report, and shall not be subject to a demand for
division of the question.
The Chairman of the Committee of the Whole may postpone until a time
during further consideration in the Committee of the Whole a request
for a recorded vote on any amendment and may reduce to not less than 5
minutes the time for voting by electronic device on any postponed
question that immediately follows another vote by electronic device
without intervening business, provided that the time for voting by
electronic device on the first in any series of questions shall not be
less than 15 minutes.
Pursuant to the order of the House of the legislative day of
Thursday, August 3, 1995, consideration in the Committee of the Whole
shall proceed without intervening motion except for the amendments
printed in the report and one motion to rise, if offered by the
gentleman from Virginia [Mr. Bliley].
The gentleman from Michigan [Mr. Conyers] shall have permission to
modify the amendment numbered 2-2 printed in the report.
It is now in order to consider the amendment numbered 1-1 printed in
part 1 of House Reports 104-223.

amendment no. 1-1 offered by mr. bliley

Mr. BLILEY. Mr. Chairman, I offer an amendment.
The CHAIRMAN. The Clerk will designate the amendment.
The text of the amendment is as follows:

Amendment No. 1-1 offered by Mr. Bliley:
[1. Resale]
Page 5, beginning on line 19, strike paragraph (3) and
insert the following:
``(3) Resale.--The duty--
``(A) to offer services, elements, features, functions, and
capabilities for resale at wholesale rates, and
``(B) not to prohibit, and not to impose unreasonable or
discriminatory conditions or limitations on, the resale of
such services, elements, features, functions, and
capabilities, on a bundled or unbundled basis, except that a
carrier may prohibit a reseller that obtains at wholesale
rates a service, element, feature, function, or capability
that is available at retail only to a category of subscribers
from offering such service, element, feature, function, or
capability to a different category of subscribers.

For the purposes of this paragraph, wholesale rates shall be
determined on the basis of retail rates for the service,
element, feature, function, or capability provided, excluding
the portion thereof attributable to any marketing, billing,
collection, and other costs that are avoided by the local
exchange carrier.
[2. Entry Schedule]
Page 10, line 1, strike ``15 months'' and insert ``6
months''.
Page 12, line 13, strike ``245(d)'' and insert ``245(c)''.
Page 19, line 19, strike ``18 months'' and insert ``6
months''.
Page 20, line 5, strike ``(d)(2)'' and insert ``(c)(2)''.
Page 24, beginning on line 1, strike subsection (c) through
page 26, line 5, (and redesignate the succeeding subsections
accordingly).
Page 27, line 25, strike ``(d)'' and insert ``(c)''.
Page 28, line 25, strike ``(g) and (h)'' and insert ``(f),
(g), and (h)''.
Page 29, lines 9 and 12, strike ``subsection (d)'' and
insert ``subsection (c)''.
Page 29, line 14, strike ``subsection (f)'' and insert
``subsection (e)''.
Page 30, line 2, strike ``(f)'' and insert ``(e)''.
Page 40, line 20, strike ``270 days'' and insert ``6
months''.
[3. State/Federal Coordination]
Page 10, after line 8, insert the following new
subparagraph (and redesignate the succeeding subparagraphs
accordingly):
``(B) Accommodation of state access regulations.--In
prescribing and enforcing regulations to implement the
requirements of this section, the Commission shall not
preclude the enforcement of any regulation, order, or policy
of a State commission that--
``(i) establishes access and interconnection obligations of
local exchange carriers;
``(ii) is consistent with the requirements of this section;
and
``(iii) does not substantially prevent the Commission from
fulfilling the requirements of this section and the purposes
of this part.
Page 14, strike lines 1 through 7 and insert the following:
``(h) Avoidance of Redundant Regulations.--
``(1) Commission regulations.--Nothing in this section
shall be construed to prohibit the Commission from enforcing
regulations prescribed prior to the date of enactment of this
part in fulfilling the requirements of this section, to the
extent that such regulations are consistent with the
provisions of this section.
``(2) State regulations.--Nothing in this section shall be
construed to prohibit any State commission from enforcing
regulations prescribed prior to the date of enactment of this
part, or from prescribing regulations after such date of
enactment, in fulfilling the requirements of this section, if
(A) such regulations are consistent with the provisions of
this section, and (B) the enforcement of such regulations has
not been precluded under subsection (b)(4)(B).
Page 42, after line 2, insert the following new sentence:

In establishing criteria and procedures pursuant to this
paragraph, the Commission shall take into account and
accommodate, to the extent reasonable and consistent with the
purposes of this section, the criteria and procedures
established for such purposes by State commissions prior to
the effective date of the Commission's criteria and
procedures under this section.
Page 45, strike lines 12 through 18 and insert the
following:
``(g) Avoidance of Redundant Regulations.--
``(1) Commission regulations.--Nothing in this section
shall be construed to prohibit the Commission from enforcing
regulations prescribed prior to the date of enactment of this
part in fulfilling the requirements of this section, to the
extent that such regulations are consistent with the
provisions of this section.
``(2) State regulations.--Nothing in this section shall be
construed to prohibit any State commission from enforcing
regulations prescribed prior to the effective date of the
Commission's criteria and procedures under this section in
fulfilling the requirements of this section, or from
prescribing regulations after such date, to the extent such
regulations are consistent--
``(A) with the provisions of this section; and
``(B) after such effective date, with such criteria and
procedures.
Page 77, line 18, insert ``of the Commission'' after ``any
regulation''.
[4. Joint Marketing]
Page 12, beginning on line 15, strike paragraph (2) through
page 13, line 2, and insert the following:
``(2) Competing providers.--Paragraph (1) shall not
prohibit joint marketing of services, elements, features,
functions, or capabilities acquired from a Bell operating
company by an unaffiliated provider that, together with its
affiliates, has in the aggregate less than 2 percent of the
access lines installed nationwide.
[5. Rural Telephone Exemption]
Page 13, beginning on line 10, strike ``, technologically
infeasible'' and all that follows through line 11 and insert
``or technologically infeasible.''.
Page 13, beginning on line 12, strike subsections (f) and
(g) through line 24 and insert the following:

[[Page H 8445]]

(f) Exemption for Certain Rural Telephone Companies.--
Subsections (a) through (d) of this section shall not apply
to a rural telephone company, until such company has received
a bona fide request for services, elements, features or
capabilities described in subsections (a) through (d).
Following a bona fide request to the carrier and notice of
the request to the State commission, the State commission
shall determine within 120 days whether the request would be
unduly economically burdensome, be technologically
infeasible, and be consistent with subsections (b)(1) through
(b)(5), (c)(1), and (c)(3) of section 247. The exemption
provided by this subsection shall not apply if such carrier
provides video programming services over its telephone
exchange facilities in its telephone service area.
(g) Time and Manner of Compliance.--The State shall
establish, after determining pursuant to subsection (f) that
a bona fide request is not economically burdensome, is
technologically feasible, and is consistent with subsections
(b)(1) through (b)(5), (c)(1), and (c)(3) of section 247, an
implementation schedule for compliance with such approved
bona fide request that is consistent in time and manner with
Commission rules.
Page 45, line 3, strike ``Interstate'', and on line 4,
strike ``interstate''.
[6. Management of Rights-of-Way]
Page 14, line 21, strike ``Nothing in this'' and insert the
following:
``(1) In general.--Nothing in this
Page 14, line 22, strike ``or local''.
Page 15, after line 6, insert the following new paragraph:
``(2) Management of rights-of-way.--Nothing in subsection
(a) of this section shall affect the authority of a local
government to manage the public rights-of-way or to require
fair and reasonable compensation from telecommunications
providers, on a competitively neutral and nondiscriminatory
basis, for use of public rights-of-way on a nondiscriminatory
basis, if the compensation required is publicly disclosed by
such government.''.
[7. Facilities-Based Competitor]
Page 20, beginning on line 8, strike subparagraph (A)
through line 18 and insert the following:
``(A) Presence of a facilities-based competitor.--An
agreement that has been approved under section 244 specifying
the terms and conditions under which the Bell operating
company is providing access and interconnection to its
network facilities in accordance with section 242 for the
network facilities of an unaffiliated competing provider of
telephone exchange service (as defined in section 3(44)(A),
but excluding exchange access service) to residential and
business subscribers. For the purpose of this subparagraph,
such telephone exchange service may be offered by such
competing provider either exclusively over its own telephone
exchange service facilities or predominantly over its own
telephone exchange service facilities in combination with the
resale of the services of another carrier. For the purpose of
this subparagraph, services provided pursuant to subpart K of
part 22 of the Commission's regulations (47 C.F.R. 22.901 et
seq.) shall not be considered to be telephone exchange
services.
Page 21, line 2, strike ``243'' and insert ``244''.
[8. Entry Consultations with the Attorney General]
Page 27, after line 3, insert the following new paragraph:
``(3) Consultation with the attorney general.--The
Commission shall notify the Attorney General promptly of any
verification submitted for approval under this subsection,
and shall identify any verification that, if approved, would
relieve the Bell operating company and its affiliates of the
prohibition concerning manufacturing contained in section
271(a). Before making any determination under this
subsection, the Commission shall consult with the Attorney
General, and if the Attorney General submits any comments in
writing, such comments shall be included in the record of the
Commission's decision. In consulting with and submitting
comments to the Commission under this paragraph, the Attorney
General shall provide to the Commission an evaluation of
whether there is a dangerous probability that the Bell
operating company or its affiliates would successfully use
market power to substantially impede competition in the
market such company seeks to enter. In consulting with and
submitting comments to the Commission under this paragraph
with respect to a verification that, if approved, would
relieve the Bell operating company and its affiliates of the
prohibition concerning manufacturing contained in section
271(a), the Attorney General shall also provide to the
Commission an evaluation of whether there is a dangerous
probability that the Bell operating company or its affiliates
would successfully use market power to substantially impede
competition in manufacturing.
Page 27, lines 4 and 12, redesignate paragraphs (3) and (4)
as paragraphs (4) and (5), respectively.
[9. Out-of-Region Services]
Page 31, after line 21, insert the following new subsection
(and redesignate the succeeding subsections accordingly):
``(h) Out-of-Region Services.--When a Bell operating
company and its affiliates have obtained Commission approval
under subsection (c) for each State in which such Bell
operating company and its affiliates provide telephone
exchange service on the date of enactment of this part, such
Bell operating company and any affiliate thereof may,
notwithstanding subsection (e), provide interLATA services--
``(1) for calls originating in, and billed to a customer
in, a State in which neither such company nor any affiliate
provided telephone exchange service on such date of
enactment; or
``(2) for calls originating outside the United States.
Page 30, beginning on line 20, strike ``between local
access and transport areas within a cable system franchise
area'' and insert ``and that is located within a State''.
[10. Separate Subsidiary]
At each of the following locations insert ``interLATA''
before ``information'': Page 33, line 8; page 35, lines 9,
16, and 20; and page 36, lines 3 and 10.
Page 33, line 11, after the period insert the following:
``The requirements of this section shall not apply with
respect to (1) activities in which a Bell operating company
or affiliate may engage pursuant to section 245(f), or (2)
incidental services in which a Bell operating company or
affiliate may engage pursuant to section 245(g), other than
services described in paragraph (4) of such section.''.
Page 37, beginning on line 20, strike subsection (k) and
insert the following:
``(k) Sunset.--The provisions of this section shall cease
to apply to any Bell operating company in any State 18 months
after the date such Bell operating company is authorized
pursuant to section 245(c) to provide interLATA
telecommunications services in such State.
[11. Pricing Flexibility: Prohibition on Cross Subsidies]
Page 42, after line 22, insert the following new paragraph:
``(4) Response to competition.--Pricing flexibility
implemented pursuant to this subsection shall permit
regulated telecommunications providers to respond fairly to
competition by repricing services subject to competition, but
shall not have the effect of changing prices for
noncompetitive services or using noncompetitive services to
subsidize competitive services.
[12. Accessibility]
Page 47, beginning on line 17, strike ``whenever an undue
burden'' and all that follows through ``paragraph (1),'' on
line 19 and insert the following: ``whenever the requirements
of paragraph (1) are not readily achievable,''.
Page 47, beginning on line 24, strike ``would result in''
and all that follows through line 25 and insert the
following: ``is not readily achievable.''.
Page 48, beginning on line 1, strike paragraphs (3) and (4)
through page 49, line 7, and insert the following:
``(3) Readily achievable.--The term `readily achievable'
has the meaning given it by section 301(g) of the Americans
with Disabilities Act of 1990 (42 U.S.C. 12102(g)).
Page 49, line 8, redesignate paragraph (5) as paragraph
(4).
[13. Media Voices]
Page 50, line 5, strike ``points of view'' and insert
``media voices''.
[14. Slamming]
Page 50, line 23, insert ``(a) Prohibition.--'' before ``No
common carrier'', and on page 51, after line 4, insert the
following new subsection:
``(b) Liability for Charges.--Any common carrier that
violates the verification procedures described in subsection
(a) and that collects charges for telephone exchange service
or telephone toll service from a subscriber shall be liable
to the carrier previously selected by the subscriber in an
amount equal to all charges paid by such subscriber after
such violation, in accordance with such procedures as the
Commission may prescribe. The remedies provided by this
subsection are in addition to any other remedies available by
law.
[15. Study Frequency]
Page 51, line 6, strike ``At least once every three
years,'' and insert ``Within 3 years after the date of
enactment of this part,''.
[16. Territorial Exemption]
Page 51, beginning on line 23, strike section 253 through
page 52, line 6, and conform the table of contents
accordingly.
Page 51, insert close quotation marks and a period at the
end of line 22.
[17. Manufacturing Separate Subsidiary]
Page 54, beginning on line 5, strike subsections (a) and
(b) and insert the following:
``(a) Limitations on Manufacturing.--
``(1) Access and interconnection required.--It shall be
unlawful for a Bell operating company, directly or through an
affiliate, to manufacture telecommunications equipment or
customer premises equipment, until the Commission has
approved under section 245(c) verifications that such Bell
operating company, and each Bell operating company with which
it is affiliated, are in compliance with the access and
interconnection requirements of part II of this title.
``(2) Separate subsidiary required.--During the first 18
months after the expiration of the limitation contained in
paragraph (1), a Bell operating company may engage in
manufacturing telecommunications equipment or customer
premises equipment only

[[Page H 8446]]
through a separate subsidiary established and operated in accordance
with section 246.
``(b) Collaboration; Research and Royalty Agreements.--
``(1) Collaboration.--Subsection (a) shall not prohibit a
Bell operating company from engaging in close collaboration
with any manufacturer of customer premises equipment or
telecommunications equipment during the design and
development of hardware, software, or combinations thereof
related to such equipment.
``(2) Research; royalty agreements.--Subsection (a) shall
not prohibit a Bell operating company, directly or through an
subsidiary, from--
``(A) engaging in any research activities related to
manufacturing, and
``(B) entering into royalty agreements with manufacturers
of telecommunications equipment.
[18. Manufacturing by Standard-Setting Organizations]
Page 56, beginning on line 1, strike subsection (d) through
page 57, line 11, and insert the following:
``(d) Manufacturing Limitations for Standard-Setting
Organizations.--
``(1) Application to bell communications research or
manufacturers.--Bell Communications Research, Inc., or any
successor entity or affiliate--
``(A) shall not be considered a Bell operating company or a
successor or assign of a Bell operating company at such time
as it is no longer an affiliate of any Bell operating
company; and
``(B) notwithstanding paragraph (3), shall not engage in
manufacturing telecommunications equipment or customer
premises equipment as long as it is an affiliate of more than
1 otherwise unaffiliated Bell operating company or successor
or assign of any such company.

Nothing in this subsection prohibits Bell Communications
Research, Inc., or any successor entity, from engaging in any
activity in which it is lawfully engaged on the date of
enactment of this subsection. Nothing provided in this
subsection shall render Bell Communications Research, Inc.,
or any successor entity, a common carrier under title II of
this Act. Nothing in this section restricts any manufacturer
from engaging in any activity in which it is lawfully engaged
on the date of enactment of this section.
``(2) Proprietary information.--Any entity which
establishes standards for telecommunications equipment or
customer premises equipment, or generic network requirements
for such equipment, or certifies telecommunications
equipment, or customer premises equipment, shall be
prohibited from releasing or otherwise using any proprietary
information, designated as such by its owner, in its
possession as a result of such activity, for any purpose
other than purposes authorized in writing by the owner of
such information, even after such entity ceases to be so
engaged.
``(3) Manufacturing safeguards.--(A) Except as prohibited
in paragraph (1), and subject to paragraph (6), any entity
which certifies telecommunications equipment or customer
premises equipment manufactured by an unaffiliated entity
shall only manufacture a particular class of
telecommunications equipment or customer premises equipment
for which it is undertaking or has undertaken, during the
previous 18 months, certification activity for such class of
equipment through a separate affiliate.
``(B) Such separate affiliate shall--
``(i) maintain books, records, and accounts separate from
those of the entity that certifies such equipment, consistent
with generally acceptable accounting principles;
``(ii) not engage in any joint manufacturing activities
with such entity; and
``(iii) have segregated facilities and separate employees
with such entity.
``(C) Such entity that certifies such equipment shall--
``(i) not discriminate in favor of its manufacturing
affiliate in the establishment of standards, generic
requirements, or product certification;
``(ii) not disclose to the manufacturing affiliate any
proprietary information that has been received at any time
from an unaffiliated manufacturer, unless authorized in
writing by the owner of the information; and
``(iii) not permit any employee engaged in product
certification for telecommunications equipment or customer
premises equipment to engage jointly in sales or marketing of
any such equipment with the affiliated manufacturer.
``(4) Standard-setting entities.--Any entity which is not
an accredited standards development organization and which
establishes industry-wide standards for telecommunications
equipment or customer premises equipment, or industry-wide
generic network requirements for such equipment, or which
certifies telecommunications equipment or customer premises
equipment manufactured by an unaffiliated entity, shall--
``(A) establish and publish any industry-wide standard for,
industry-wide generic requirement for, or any substantial
modification of an existing industry-wide standard or
industry-wide generic requirement for, telecommunications
equipment or customer premises equipment only in compliance
with the following procedure:
``(i) such entity shall issue a public notice of its
consideration of a proposed industry-wide standard or
industry-wide generic requirement;
``(ii) such entity shall issue a public invitation to
interested industry parties to fund and participate in such
efforts on a reasonable and nondiscriminatory basis,
administered in such a manner as not to unreasonably exclude
any interested industry party;
``(iii) such entity shall publish a text for comment by
such parties as have agreed to participate in the process
pursuant to clause (ii), provide such parties a full
opportunity to submit comments, and respond to comments from
such parties;
``(iv) such entity shall publish a final text of the
industry-wide standard or industry-wide generic requirement,
including the comments in their entirety, of any funding
party which requests to have its comments so published;
``(v) such entity shall attempt, prior to publishing a text
for comment, to agree with the funding parties as a group on
a mutually satisfactory dispute resolution process which such
parties shall utilize as their sole recourse in the event of
a dispute on technical issues as to which there is
disagreement between any funding party and the entity
conducting such activities, except that if no dispute
resolution process is agreed to by all the parties, a funding
party may utilize the dispute resolution procedures
established pursuant to paragraph (5) of this subsection;
``(B) engage in product certification for
telecommunications equipment or customer premises equipment
manufactured by unaffiliated entities only if--
``(i) such activity is performed pursuant to published
criteria;
``(ii) such activity is performed pursuant to auditable
criteria; and
``(iii) such activity is performed pursuant to available
industry-accepted testing methods and standards, where
applicable, unless otherwise agreed upon by the parties
funding and performing such activity;
``(C) not undertake any actions to monopolize or attempt to
monopolize the market for such services; and
``(D) not preferentially treat its own telecommunications
equipment or customer premises equipment, or that of its
affiliate, over that of any other entity in establishing and
publishing industry-wide standards or industry-wide generic
requirements for, and in certification of, telecommunications
equipment and customer premises equipment.
``(5) Alternate dispute resolution.--Within 90 days after
the date of enactment of this section, the Commission shall
prescribe a dispute resolution process to be utilized in the
event that a dispute resolution process is not agreed upon by
all the parties when establishing and publishing any
industry-wide standard or industry-wide generic requirement
for telecommunications equipment or customer premises
equipment, pursuant to paragraph (4)(A)(v). The Commission
shall not establish itself as a party to the dispute
resolution process. Such dispute resolution process shall
permit any funding party to resolve a dispute with the entity
conducting the activity that significantly affects such
funding party's interests, in an open, nondiscriminatory, and
unbiased fashion, within 30 days after the filing of such
dispute. Such disputes may be filed within 15 days after the
date the funding party receives a response to its comments
from the entity conducting the activity. The Commission shall
establish penalties to be assessed for delays caused by
referral of frivolous disputes to the dispute resolution
process. The overall intent of establishing this dispute
resolution provision is to enable all interested funding
parties an equal opportunity to influence the final
resolution of the dispute without significantly impairing the
efficiency, timeliness, and technical quality of the
activity.
``(6) Sunset.--The requirements of paragraphs (3) and (4)
shall terminate for the particular relevant activity when the
Commission determines that there are alternative sources of
industry-wide standards, industry-wide generic requirements,
or product certification for a particular class of
telecommunications equipment or customer premises equipment
available in the United States. Alternative sources shall be
deemed to exist when such sources provide commercially viable
alternatives that are providing such services to customers.
The Commission shall act on any application for such a
determination within 90 days after receipt of such
application, and shall receive public comment on such
application.
``(7) Administration and enforcement authority.--For the
purposes of administering this subsection and the regulations
prescribed thereunder, the Commission shall have the same
remedial authority as the Commission has in administering and
enforcing the provisions of this title with respect to any
common carrier subject to this Act.
``(8) Definitions.--For purposes of this subsection:
``(A) The term `affiliate' shall have the same meaning as
in section 3 of this Act, except that, for purposes of
paragraph (1)(B)--
``(i) an aggregate voting equity interest in Bell
Communications Research, Inc., of at least 5 percent of its
total voting equity, owned directly or indirectly by more
than 1 otherwise unaffiliated Bell operating company, shall
constitute an affiliate relationship; and
``(ii) a voting equity interest in Bell Communications
Research, Inc., by any otherwise unaffiliated Bell operating
company of less than 1 percent of Bell Communications
Research's total voting equity shall not be considered to be
an equity interest under this paragraph.

[[Page H 8447]]

``(B) The term `generic requirement' means a description of
acceptable product attributes for use by local exchange
carriers in establishing product specifications for the
purchase of telecommunications equipment, customer premises
equipment, and software integral thereto.
``(C) The term `industry-wide' means activities funded by
or performed on behalf of local exchange carriers for use in
providing wireline local exchange service whose combined
total of deployed access lines in the United States
constitutes at least 30 percent of all access lines deployed
by telecommunications carriers in the United States as of the
date of enactment.
``(D) The term `certification' means any technical process
whereby a party determines whether a product, for use by more
than one local exchange carrier, conforms with the specified
requirements pertaining to such product.
``(E) The term `accredited standards development
organization' means an entity composed of industry members
which has been accredited by an institution vested with the
responsibility for standards accreditation by the industry.
[19. Electronic Publishing]
Page 64, after line 21, insert the following new subsection
(and redesignate the succeeding subsections accordingly):
``(d) Bell Operating Company Requirement.--A Bell operating
company under common ownership or control with a separated
affiliate or electronic publishing joint venture shall
provide network access and interconnections for basic
telephone service to electronic publishers at just and
reasonable rates that are tariffed (so long as rates for such
services are subject to regulation) and that are not higher
on a per-unit basis than those charged for such services to
any other electronic publisher or any separated affiliate
engaged in electronic publishing.
Page 69, line 4, strike ``wireline telephone exchange
service'' and insert ``any wireline telephone exchange
service, or wireline telephone exchange service facility,''.
[20. Alarm Monitoring]
Page 71, beginning on line 17, strike ``1995, except that''
and all that follows through line 21 and insert ``1995.''.
[21. CMRS Joint Marketing]
Page 78, line 17, strike the close quotation marks and
following period and after line 17, insert the following new
subsection:
``(c) Commercial Mobile Service Joint Marketing.--
Notwithstanding section 22.903 of the Commission's
regulations (47 C.F.R. 22.903) or any other Commission
regulation, or any judicial decree or proposed judicial
decree, a Bell operating company or any other company may,
except as provided in sections 242(d) and 246 as they relate
to wireline service, jointly market and sell commercial
mobile services in conjunction with telephone exchange
service, exchange access, intraLATA telecommunications
service, interLATA telecommunications service, and
information services.''.
[22. Online Family Empowerment]
Page 78, before line 18, insert the following new section
(and redesignate the succeeding sections and conform the
table of contents accordingly):
SEC. 104. ONLINE FAMILY EMPOWERMENT.

Title II of the Communications Act of 1934 (47 U.S.C. 201
et seq.) is amended by inserting after section 230 (as added
by section 103 of this Act) the following new section:

``SEC. 231. PROTECTION FOR PRIVATE BLOCKING AND SCREENING OF
OFFENSIVE MATERIAL; FCC CONTENT AND ECONOMIC
REGULATION OF COMPUTER SERVICES PROHIBITED.

``(a) Findings.--The Congress finds the following:
``(1) The rapidly developing array of Internet and other
interactive computer services available to individual
Americans represent an extraordinary advance in the
availability of educational and informational resources to
our citizens.
``(2) These services offer users a great degree of control
over the information that they receive, as well as the
potential for even greater control in the future as
technology develops.
``(3) The Internet and other interactive computer services
offer a forum for a true diversity of political discourse,
unique opportunities for cultural development, and myriad
avenues for intellectual activity.
``(4) The Internet and other interactive computer services
have flourished, to the benefit of all Americans, with a
minimum of government regulation.
``(5) Increasingly Americans are relying on interactive
media for a variety of political, educational, cultural, and
entertainment services.
``(b) Policy.--It is the policy of the United States to--
``(1) promote the continued development of the Internet and
other interactive computer services and other interactive
media;
``(2) preserve the vibrant and competitive free market that
presently exists for the Internet and other interactive
computer services, unfettered by State or Federal regulation;
``(3) encourage the development of technologies which
maximize user control over the information received by
individuals, families, and schools who use the Internet and
other interactive computer services;
``(4) remove disincentives for the development and
utilization of blocking and filtering technologies that
empower parents to restrict their children's access to
objectionable or inappropriate online material; and
``(5) ensure vigorous enforcement of criminal laws to deter
and punish trafficking in obscenity, stalking, and harassment
by means of computer.
``(c) Protection for `Good Samaritan' Blocking and
Screening of Offensive Material.--No provider or user of
interactive computer services shall be treated as the
publisher or speaker of any information provided by an
information content provider. No provider or user of
interactive computer services shall be held liable on account
of--
``(1) any action voluntarily taken in good faith to
restrict access to material that the provider or user
considers to be obscene, lewd, lascivious, filthy,
excessively violent, harassing, or otherwise objectionable,
whether or not such material is constitutionally protected;
or
``(2) any action taken to make available to information
content providers or others the technical means to restrict
access to material described in paragraph (1).
``(d) FCC Regulation of the Internet and Other Interactive
Computer Services Prohibited.--Nothing in this Act shall be
construed to grant any jurisdiction or authority to the
Commission with respect to content or other regulation of the
Internet or other interactive computer services.
``(e) Effect on Other Laws.--
``(1) No effect on criminal law.--Nothing in this section
shall be construed to impair the enforcement of section 223
of this Act, chapter 71 (relating to obscenity) or 110
(relating to sexual exploitation of children) of title 18,
United States Code, or any other Federal criminal statute.
``(2) No effect on intellectual property law.--Nothing in
this section shall be construed to limit or expand any law
pertaining to intellectual property.
``(3) In general.--Nothing in this section shall be
construed to prevent any State from enforcing any State law
that is consistent with this section.
``(f) Definitions.--As used in this section:
``(1) Internet.--The term `Internet' means the
international computer network of both Federal and non-
Federal interoperable packet switched data networks.
``(2) Interactive computer service.--The term `interactive
computer service' means any information service that provides
computer access to multiple users via modem to a remote
computer server, including specifically a service that
provides access to the Internet.
``(3) Information content provider.--The term `information
content provider' means any person or entity that is
responsible, in whole or in part, for the creation or
development of information provided by the Internet or any
other interactive computer service, including any person or
entity that creates or develops blocking or screening
software or other techniques to permit user control over
offensive material.''.
[23. Forbearance]
Page 77, line 20, strike ``if the Commission'' and insert
``unless the Commission''.
Page 77, line 23, and page 78, line 4, strike ``is not
necessary'' and insert ``is necessary''.
Page 78, line 4, strike ``and'' and insert ``or''.
Page 78, line 6, strike ``is consistent'' and insert ``is
inconsistent''.
[24. Pole Attachments]
Page 87, line 1, after ``ensuring that'' insert the
following: , when the parties fail to negotiate a mutually
agreeable rate,''.
Page 87, line 9, insert ``to'' after ``benefit'', and on
line 11, strike ``attachments'' and insert ``attaching
entities''.
Page 87, line 16, strike ``and''; on line 17, redesignate
subparagraph (C) as subparagraph (D); and after line 16
insert the following new subparagraph:
``(C) recognize that the pole, duct, conduit, or right-of-
way has a value that exceeds costs and that value shall be
reflected in any rate; and
[25. Required Telecommunications Services]
Page 89, line 21, strike ``A franchising'' and insert
``Except as otherwise permitted by sections 611 and 612, a
franchising''.
Page 89, line 23, before ``as a condition'' insert the
following: ``, other than intragovernmental
telecommunications services,''.
[26. Facilities Siting]
Page 90, beginning on line 11, strike paragraph (7) through
line 6 on page 93 and insert the following:
``(7) Facilities siting policies.--(A) Within 180 days
after enactment of this paragraph, the Commission shall
prescribe and make effective a policy to reconcile State and
local regulation of the siting of facilities for the
provision of commercial mobile services or unlicensed
services with the public interest in fostering competition
through the rapid, efficient, and nationwide deployment of
commercial mobile services or unlicensed services.
``(B) Pursuant to subchapter III of chapter 5, title 5,
United States Code, the Commission shall establish a
negotiated rulemaking committee to negotiate and develop a
proposed policy to comply with the requirements of this
paragraph. Such committee shall include representatives from
State and local governments, affected industries, and public
safety agencies.

[[Page H 8448]]

``(C) The policy prescribed pursuant to this subparagraph
shall take into account--
``(i) the need to enhance the coverage and quality of
commercial mobile services and unlicensed services and foster
competition in the provision of commercial mobile services
and unlicensed services on a timely basis;
``(ii) the legitimate interests of State and local
governments in matters of exclusively local concern, and the
need to provide State and local government with maximum
flexibility to address such local concerns, while ensuring
that such interests do not prohibit or have the effect of
precluding any commercial mobile service or unlicensed
service;
``(iii) the effect of State and local regulation of
facilities siting on interstate commerce;
``(iv) the administrative costs to State and local
governments of reviewing requests for authorization to locate
facilities for the provision of commercial mobile services or
unlicensed services; and
``(v) the need to provide due process in making any
decision by a State or local government or instrumentality
thereof to grant or deny a request for authorization to
locate, construct, modify, or operate facilities for the
provision of commercial mobile services or unlicensed
services.
``(D) The policy prescribed pursuant to this paragraph
shall provide that no State or local government or any
instrumentality thereof may regulate the placement,
construction, modification, or operation of such facilities
on the basis of the environmental effects of radio frequency
emissions, to the extent that such facilities comply with the
Commission's regulations concerning such emissions.
``(E) The proceeding to prescribe such policy pursuant to
this paragraph shall supercede any proceeding pending on the
date of enactment of this paragraph relating to preemption of
State and local regulation of tower siting for commercial
mobile services, unlicensed services, and providers thereof.
In accordance with subchapter III of chapter 5, title 5,
United States Code, the Commission shall periodically
establish a negotiated rulemaking committee to review the
policy prescribed by the Commission under this paragraph and
to recommend revisions to such policy.
``(F) For purposes of this paragraph, the term `unlicensed
service' means the offering of telecommunications using duly
authorized devices which do not require individual
licenses.''.
Page 94, line 2, strike ``cost-based''.
[27. Telecommunications Development Fund]
Page 101, after line 23, insert the following new section
(and redesignate the succeeding section and conform the table
of contents accordingly):
SEC. 111. TELECOMMUNICATIONS DEVELOPMENT FUND.

(a) Deposit and Use of Auction Escrow Accounts.--Section
309(j)(8) of the Act (47 U.S.C. 309(j)(8)) is amended by
adding at the end the following new subparagraph:
``(C) Deposit and use of auction escrow accounts.--Any
deposits the Commission may require for the qualification of
any person to bid in a system of competitive bidding pursuant
to this subsection shall be deposited in an interest bearing
account at a financial institution designated for purposes of
this subsection by the Commission (after consultation with
the Secretary of the Treasury). Within 45 days following the
conclusion of the competitive bidding--
``(i) the deposits of successful bidders shall be paid to
the Treasury;
``(ii) the deposits of unsuccessful bidders shall be
returned to such bidders; and
``(iii) the interest accrued to the account shall be
transferred to the Telecommunications Development Fund
established pursuant to section 10 of this Act.''.
(b) Establishment and Operation of Fund.--Title I of the
Act is amended by adding at the end the following new
section:

``SEC. 10. TELECOMMUNICATIONS DEVELOPMENT FUND.

``(a) Purpose of Section.--It is the purpose of this
section--
``(1) to promote access to capital for small businesses in
order to enhance competition in the telecommunications
industry;
``(2) to stimulate new technology development, and promote
employment and training; and
``(3) to support universal service and promote delivery of
telecommunications services to underserved rural and urban
areas.
``(b) Establishment of Fund.--There is hereby established a
body corporate to be known as the Telecommunications
Development Fund, which shall have succession until
dissolved. The Fund shall maintain its principal office in
the District of Columbia and shall be deemed, for purposes of
venue and jurisdiction in civil actions, to be a resident and
citizen thereof.
``(c) Board of Directors.--
``(1) Composition of board; chairman.--The Fund shall have
a Board of Directors which shall consist of 7 persons
appointed by the Chairman of the Commission. Four of such
directors shall be representative of the private sector and
three of such directors shall be representative of the
Commission, the Small Business Administration, and the
Department of the Treasury, respectively. The Chairman of the
Commission shall appoint one of the representatives of the
private sector to serve as chairman of the Fund within 30
days after the date of enactment of this section, in order to
facilitate rapid creation and implementation of the Fund. The
directors shall include members with experience in a number
of the following areas: finance, investment banking,
government banking, communications law and administrative
practice, and public policy.
``(2) Terms of appointed and elected members.--The
directors shall be eligible to serve for terms of 5 years,
except of the initial members, as designated at the time of
their appointment--
``(A) 1 shall be eligible to service for a term of 1 year;
``(B) 1 shall be eligible to service for a term of 2 years;
``(C) 1 shall be eligible to service for a term of 3 years;
``(D) 2 shall be eligible to service for a term of 4 years;
and
``(E) 2 shall be eligible to service for a term of 5 years
(1 of whom shall be the Chairman).

Directors may continue to serve until their successors have
been appointed and have qualified.
``(3) Meetings and functions of the board.--The Board of
Directors shall meet at the call of its Chairman, but at
least quarterly. The Board shall determine the general
policies which shall govern the operations of the Fund. The
Chairman of the Board shall, with the approval of the Board,
select, appoint, and compensate qualified persons to fill the
offices as may be provided for in the bylaws, with such
functions, powers, and duties as may be prescribed by the
bylaws or by the Board of Directors, and such persons shall
be the officers of the Fund and shall discharge all such
functions, powers, and duties.
``(d) Accounts of the Fund.--The Fund shall maintain its
accounts at a financial institution designated for purposes
of this section by the Chairman of the Board (after
consultation with the Commission and the Secretary of the
Treasury). The accounts of the Fund shall consist of--
``(1) interest transferred pursuant to section 309(j)(8)(C)
of this Act;
``(2) such sums as may be appropriated to the Commission
for advances to the Fund;
``(3) any contributions or donations to the Fund that are
accepted by the Fund; and
``(4) any repayment of, or other payment made with respect
to, loans, equity, or other extensions of credit made from
the Fund.
``(e) Use of the Fund.--All moneys deposited into the
accounts of the Fund shall be used solely for--
``(1) the making of loans, investments, or other extensions
of credits to eligible small businesses in accordance with
subsection (f);
``(2) the provision of financial advise to eligible small
businesses;
``(3) expenses for the administration and management of the
Fund;
``(4) preparation of research, studies, or financial
analyses; and
``(5) other services consistent with the purposes of this
section.
``(f) Lending and Credit Operations.--Loans or other
extensions of credit from the Fund shall be made available to
eligible small business on the basis of--
``(1) the analysis of the business plan of the eligible
small business;
``(2) the reasonable availability of collateral to secure
the loan or credit extension;
``(3) the extent to which the loan or credit extension
promotes the purposes of this section; and
``(4) other lending policies as defined by the Board.
``(g) Return of Advances.--Any advances appropriated
pursuant to subsection (b)(2) shall be upon such terms and
conditions (including conditions relating to the time or
times of repayment) as the Board determines will best carry
out the purposes of this section, in light of the maturity
and solvency of the Fund.
``(h) General Corporate Powers.--The Fund shall have
power--
``(1) to sue and be sued, complain and defend, in its
corporate name and through its own counsel;
``(2) to adopt, alter, and use the corporate seal, which
shall be judicially noticed;
``(3) to adopt, amend, and repeal by its Board of
Directors, bylaws, rules, and regulations as may be necessary
for the conduct of its business;
``(4) to conduct its business, carry on its operations, and
have officers and exercise the power granted by this section
in any State without regard to any qualification or similar
statute in any State;
``(5) to lease, purchase, or otherwise acquire, own, hold,
improve, use, or otherwise deal in and with any property,
real, personal, or mixed, or any interest therein, wherever
situated;
``(6) to accept gifts or donations of services, or of
property, real, personal, or mixed, tangible or intangible,
in aid of any of the purposes of the Fund;
``(7) to sell, convey, mortgage, pledge, lease, exchange,
and otherwise dispose of its property and assets;
``(8) to appoint such officers, attorneys, employees, and
agents as may be required, to determine their qualifications,
to define their duties, to fix their salaries, require bonds
for them, and fix the penalty thereof; and
``(9) to enter into contracts, to execute instruments, to
incur liabilities, to make loans and equity investment, and
to do all things as are necessary or incidental to the proper
management of its affairs and the proper conduct of its
business.

[[Page H 8449]]

``(i) Accounting, Auditing, and Reporting.--The accounts of
the Fund shall be audited annually. Such audits shall be
conducted in accordance with generally accepted auditing
standards by independent certified public accountants. A
report of each such audit shall be furnished to the Secretary
of the Treasury and the Commission. The representatives of
the Secretary and the Commission shall have access to all
books, accounts, financial records, reports, files, and all
other papers, things, or property belonging to or in use by
the Fund and necessary to facilitate the audit.
``(j) Report on Audits by Treasury.--A report of each such
audit for a fiscal year shall be made by the Secretary of the
Treasury to the President and to the Congress not later than
6 months following the close of such fiscal year. The report
shall set forth the scope of the audit and shall include a
statement of assets and liabilities, capital and surplus or
deficit; a statement of surplus or deficit analysis; a
statement of income and expense; a statement of sources and
application of funds; and such comments and information as
may be deemed necessary to keep the President and the
Congress informed of the operations and financial condition
of the Fund, together with such recommendations with respect
thereto as the Secretary may deem advisable.
``(k) Definitions.--As used in this section:
``(1) Eligible small business.--The term `eligible small
business' means business enterprises engaged in the
telecommunications industry that have $50,000,000 or less in
annual revenues, on average over the past 3 years prior to
submitting the application under this section.
``(2) Fund.--The term `Fund' means the Telecommunications
Development Fund established pursuant to this section.
``(3) Telecommunications industry.--The term
`telecommunications industry' means communications businesses
using regulated or unregulated facilities or services and
includes the broadcasting, telephony, cable, computer, data
transmission, software, programming, advanced messaging, and
electronics businesses.''.
[28. Telemedicine Report]
Page 101, after line 23, insert the following new section
(and redesignate the succeeding sections and conform the
table of contents accordingly):
SEC. 112. REPORT ON THE USE OF ADVANCED TELECOMMUNICATIONS
SERVICES FOR MEDICAL PURPOSES.

The Assistant Secretary of Commerce for Communications and
Information, in consultation with the Secretary of Health and
Human Services and other appropriate departments and
agencies, shall submit a report to the Committee on Commerce
of the House of Representatives and the Committee on
Commerce, Science and Transportation of the Senate concerning
the activities of the Joint Working Group on Telemedicine,
together with any findings reached in the studies and
demonstrations on telemedicine funded by the Public Health
Service or other Federal agencies. The report shall examine
questions related to patient safety, the efficacy and quality
of the services provided, and other legal, medical, and
economic issues related to the utilization of advanced
telecommunications services for medical purposes. The report
shall be submitted to the respective Committees annually, by
January 31, beginning in 1996.
Page 101, after line 23, insert the following new section
(and redesignate the succeeding sections and conform the
table of contents accordingly):
SEC. 113. TELECOMMUTING PUBLIC INFORMATION PROGRAM.

(a) Telecommuting Research Programs and Public Information
Dissemination.--The Assistant Secretary of Commerce for
Communications and Information, in consultation with the
Secretary of Transportation, 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 regarding--
(1) the establishment of successful telecommuting programs;
and
(2) the benefits and costs of telecommuting.
(b) Report.--Within one year of the date of enactment of
this Act, the Assistant Secretary of Commerce for
Communications and Information shall report to Congress the
findings, conclusions, and recommendations regarding
telecommuting developed under this section.
[29. Video Platform]
Page 103, line 13, insert ``(other than section 652)''
after ``part V''.
Page 104, strike lines 3 through 5 and insert the
following:
``(iii) has not established a video platform in accordance
with section 653.''.
Page 109, line 24, strike ``shall'' and insert ``may''.
Page 113, line 1, strike ``15 months'' and insert ``6
months''.
Page 113, line 25, after ``concerning'' insert the
following: ``sports exclusivity (47 C.F.R. 76.67),'', and on
page 114, line 1, after the close parenthesis insert a comma.
Page 115, beginning on line 20, strike paragraph (2)
through page 116, line 4, and on page 116, line 5,
redesignate subsection (c) as paragraph (2).
Page 116, beginning on line 9, strike subsection (d)
through line 15.
Page 130, line 22, before ``the Commission'' insert ``270
days have elapsed since''.
[30. Cable Complaint Threshold]
Page 127, line 4, strike ``5 percent'' and insert ``3
percent''.
[31. Navigation Devices]
Page 136, beginning on line 24, strike ``Such regulations''
and all that follows through the period on page 137, line 2.
Page 137, line 7, strike ``bundled with or''.
Page 137, after line 8, insert the following new subsection
(and redesignate the succeeding subsections accordingly):
``(c) Protection of System Security.--The Commission shall
not prescribe regulations pursuant to subsection (b) which
would jeopardize the security of a telecommunications system
or impede the legal rights of a provider of such service to
prevent theft of service.
Page 137, line 10, strike ``may'' and insert ``shall''.
Page 137, line 13, strike ``the introduction of a new'' and
insert ``assist the development or introduction of a new or
improved''.
Page 137, line 14, insert ``or technology'' after
``service''.
Page 137, after line 14, insert the following new
subsection (and redesignate the succeeding subsection
accordingly):
``(e) Avoidance of Redundant Regulations.--
``(1) Market competitiveness determinations.--
Determinations made or regulations prescribed by the
Commission with respect to market competitiveness of customer
premises equipment prior to the date of enactment of this
section shall fulfill the requirements of this section.
``(2) Regulations.--Nothing in this section affects the
Commission's regulations governing the interconnection and
competitive provision of customer premises equipment used in
connection with basic telephone service.
[32. Cable/Broadcast/MMDS Cross Ownership]
Page 154, lines 9 and 10, strike subsection (b) and insert
the following:
(b) Conforming Amendments.--Section 613(a) of the Act (47
U.S.C. 533(a)) is amended--
(1) by striking paragraph (1);
(2) by redesignating paragraph (2) as subsection (a);
(3) by redesignating subparagraphs (A) and (B) as
paragraphs (1) and (2), respectively;
(4) by striking ``and'' at the end of paragraph (1) (as so
redesignated);
(5) by striking the period at the end of paragraph (2) (as
so redesignated) and inserting ``; and''; and
(6) by adding at the end the following new paragraph:
``(3) shall not apply the requirements of this paragraph in
any area in which there are two or more unaffiliated wireline
providers of video programming services.''
[33. Foreign Ownership]
Page 155, line 8, insert ``held,'' after ``granted,''.
Page 155, beginning on line 12, strike subparagraph (A)
through line 19 and insert the following:
``(A) the President determines--
``(i) that the foreign country of which such alien is a
citizen, in which such corporation is organized, or in which
the foreign government is in control is party to an
international agreement which requires the United States to
provide national or most-favored-nation treatment in the
grant of common carrier licenses; and
``(ii) that not applying subsection (b) would be consistent
with national security and effective law enforcement; or
Page 155, beginning on line 23, strike paragraphs (2)
through (5) through page 157, line 21, and insert the
following:
``(2) Commission considerations.--In making its
determination under paragraph (1), the Commission shall abide
by any decision of the President whether application of
section (b) is in the public interest due to national
security, law enforcement, foreign policy or trade (including
direct investment as it relates to international trade
policy) concerns, or due to the interpretation of
international agreements. In the absence of a decision by the
President, the Commission may consider, among other public
interest factors, whether effective competitive opportunities
are available to United States nationals or corporations in
the applicant's home market. Upon receipt of an application
that requires a determination under this paragraph, the
Commission shall cause notice of the application to be given
to the President or any agencies designated by the President
to receive such notification. The Commission shall not make a
determination under paragraph (1)(B) earlier than 30 days
after the end of the pleading cycle or later than 180 days
after the end of the pleading cycle.
``(3) Further commission review.--The Commission may
determine that, due to changed circumstances relating to
United States national security or law enforcement, a prior
determination under paragraph (1) ought to be reversed or
altered. In making this determination, the Commission shall
accord great deference to any recommendation of the President
with respect to United States national security or law
enforcement. If a determination under this paragraph is made
then--

[[Page H 8450]]

``(A) subsection (b) shall apply with respect to such
aliens, corporation, and government (or their
representatives) on the date that 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 reviewed
by the Commission under the provisions of paragraphs (1)(B)
and (2).
``(4) Notification to congress.--The President and the
Commission shall notify the appropriate committees of the
Congress of any determinations made under paragraph (1), (2),
or (3).
``(5) Miscellaneous.--Any Presidential decisions made under
the provisions of this subsection shall not be subject to
judicial review.''.
(c) Effective Dates.--The amendments made by this section
shall not apply to any proceeding commenced before the date
of enactment of this Act.
[34. License Renewal]
Page 161, beginning on line 18, strike ``filed on or after
May 31, 1995'' and insert ``pending or filed on or after the
date of enactment of this Act''.
[35. Ship Distress and Safety Systems]
Page 162, beginning on line 1, strike section 307 through
line 8 and insert the following:
SEC. 307. 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.
[36. Certification and Testing of Equipment]
Page 162, after line 22, insert the following new section
(and conform the table of contents accordingly):
SEC. 310. DELEGATION OF EQUIPMENT TESTING AND CERTIFICATION
TO PRIVATE LABORATORIES.

Section 302 of the Act (47 U.S.C. 302) is amended by adding
at the end the following:
``(e) Use of Private Organizations for Testing and
Certification.--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.''.
[37. Supersession]
Page 163, beginning on line 4, strike subsection (a)
through page 164, line 19, and insert the following:
(a) Modification of Final Judgment.--This Act and the
amendments made by title I of this Act shall supersede only
the following sections of the Modification of Final Judgment:
(1) Section II(C) of the Modification of Final Judgment,
relating to deadline for procedures for equal access
compliance.
(2) Section II(D) of the Modification of Final Judgment,
relating to line of business restrictions.
(3) Section VIII(A) of the Modification of Final Judgment,
relating to manufacturing restrictions.
(4) Section VIII(C) of the Modification of Final Judgment,
relating to standard for entry into the interexchange market.
(5) Section VIII(D) of the Modification of Final Judgment,
relating to prohibition on entry into electronic publishing.
(6) Section VIII(H) of the Modification of Final Judgment,
relating to debt ratios at the time of transfer.
(7) Section VIII(J) of the Modification of Final Judgment,
relating to prohibition on implementation of the plan of
reorganization before court approval.
Page 164, line 20, insert ``or in the amendments made by
this Act'' after ``this Act''.
Page 164, beginning on line 23, strike ``Except as provided
in paragraph (2), parts'' and insert ``Parts''.
Page 165, beginning on line 3, strike paragraph (2) through
line 6 and insert the following:
``(2) State tax savings provision.--Notwithstanding
paragraph (1), nothing in this Act or the amendments made by
this Act shall be construed to modify, impair, or supersede,
or authorize the modification, impairment, or supersession
of, any State or local law pertaining to taxation, except as
provided in sections 243(e) and 622 of the Communications Act
of 1934 and section 402 of this Act.''.
Page 166, after line 5, insert the following new
subsection:
(g) Additional Definitions.--As used in this section, the
terms ``Modification of Final Judgment'' and ``Bell operating
company'' have the same meanings provided such terms in
section 3 of the Communications Act of 1934.
[38. 1984 Consent Decree]
Page 165, beginning on line 7, strike subsection (d)
through line 15 and insert the following:
(d) Application to Other Action.--This Act shall supersede
the final judgment entered December 21, 1984 and as restated
January 11, 1985, in the action styled United States v. GTE
Corp., Civil Action No. 83-1298, in the United States
District Court for the District of Columbia, and any judgment
or order with respect to such action entered on or after
December 21, 1984, and such final judgment shall not be
enforced with respect to conduct occurring after the date of
the enactment of this Act.
[39. Wireless Successors]
Page 165, beginning on line 17, strike ``subject to the
provisions'' and insert ``considered to be an affiliate, a
successor, or an assign of a Bell operating company under
section III''.
[40. DBS Taxation]
Beginning on page 166, strike line 6 and all that follows
through line 20 of page 167, and insert the following:
SEC. 402. PREEMPTION OF LOCAL TAXATION WITH RESPECT TO DBS
SERVICE.

(a) Preemption.--A provider of direct-to-home satellite
service shall be exempt from the collection or remittance, or
both, of any tax or fee imposed by any local taxing
jurisdiction with respect to the provision of direct-to-home
satellite service. Nothing in this section shall be construed
to exempt from collection or remittance any tax or fee on the
sale of equipment.
(b) Definitions.--For the purposes of this section--
(1) Direct-to-home satellite service.--The term ``direct-
to-home satellite service'' means the transmission or
broadcasting by satellite of programming directly to the
subscribers' premises without the use of ground receiving or
distribution equipment, except at the subscribers' premises
or in the uplink process to the satellite.
(2) Provider of direct-to-home satellite service.--For
purposes of this section, a ``provider of direct-to-home
satellite service'' means a person who transmits, broadcasts,
sells, or distributes direct-to-home satellite service.
(3) Local taxing jurisdiction.--The term ``local taxing
jurisdiction'' means any municipality, city, county,
township, parish, transportation district, or assessment
jurisdiction, or any other local jurisdiction in the
territorial jurisdiction of the United States with the
authority to impose a tax or fee, but does not include a
State.
(4) State.--The term ``State'' means any of the several
States, the District of Columbia, or any territory or
possession of the United States.
(5) Tax or fee.--The terms ``tax'' and ``fee'' mean any
local sales tax, local use tax, local intangible tax, local
income tax, business license tax, utility tax, privilege tax,
gross receipts tax, excise tax, franchise fees, local
telecommunications tax, or any other tax, license, or fee
that is imposed for the privilege of doing business,
regulating, or raising revenue for a local taxing
jurisdiction.
(c) Preservation of State Authority.--This section shall
not be construed to prevent taxation of a provider of direct-
to-home satellite service by a State or to prevent a local
taxing jurisdiction from receiving revenue derived from a tax
or fee imposed and collected by a State.
[41. Protection of Minors]
Page 167, after line 20, insert the following new section
(and conform the table of contents accordingly):
SEC. 403. PROTECTION OF MINORS AND CLARIFICATION OF CURRENT
LAWS REGARDING COMMUNICATION OF OBSCENE AND
INDECENT MATERIALS THROUGH THE USE OF
COMPUTERS.

(a) Protection of Minors.--
(1) Generally.--Section 1465 of title 18, United States
Code, is amended by adding at the end the following:
``Whoever intentionally communicates by computer, in or
affecting interstate or foreign commerce, to any person the
communicator believes has not attained the age of 18 years,
any material that, in context, depicts or describes, in terms
patently offensive as measured by contemporary community
standards, sexual or excretory activities or organs, or
attempts to do so, shall be fined under this title or
imprisoned not more than five years, or both.''.
(2) Conforming Amendments Relating to Forfeiture.--
(A) Section 1467(a)(1) of title 18, United States Code, is
amended by inserting ``communicated,'' after
``transported,''.
(B) Section 1467 of title 18, United States Code, is
amended in subsection (a)(1), by striking ``obscene''.
(C) Section 1469 of title 18, United States Code, is
amended by inserting ``communicated,'' after ``transported,''
each place it appears.
(b) Clarification of Current Laws Regarding Communication
of Obscene Materials Through the Use of Computers.--
(1) Importation or transportation.--Section 1462 of title
18, United States Code, is amended--
(A) in the first undesignated paragraph, by inserting
``(including by computer) after ``thereof''; and
(B) in the second undesignated paragraph--

[[Page H 8451]]

(i) by inserting ``or receives,'' after ``takes'';
(ii) by inserting ``, or by computer,'' after ``common
carrier''; and
(iii) by inserting ``or importation'' after ``carriage''.
(2) Transportation for purposes of sale or distribution.--
The first undesignated paragraph of section 1465 of title 18,
United States Code, is amended--
(A) by striking ``transports in'' and inserting
``transports or travels in, or uses a facility or means
of,'';
(B) by inserting ``(including a computer in or affecting
such commerce)'' after ``foreign commerce'' the first place
it appears; and
(C) by striking ``, or knowingly travels in'' and all that
follows through ``obscene material in interstate or foreign
commerce,'' and inserting ``of''.
[42. Cable Access]
Page 170, line 21, after the period insert the following:
``For purposes of section 242, such term shall not include
the provision of video programming directly to
subscribers.''.

The CHAIRMAN. Pursuant to the rule, the gentleman from Virginia [Mr.
Bliley] will be recognized for 15 minutes, and a Member opposed will be
recognized for 15 minutes.
Does the gentleman from Texas [Mr. Bryant] seek the time in
opposition?
Mr. BRYANT of Texas. I do, Mr. Chairman.
The CHAIRMAN. The gentleman from Texas will be recognized for 15
minutes in opposition.
The Chair recognizes the gentleman from Virginia [Mr. Bliley].
Mr. BLILEY. Mr. Chairman, I yield 7 minutes to the gentleman from
Michigan [Mr. Dingell].
Mr. BLILEY. Mr. Chairman, I yield myself such time as I may consume.
Mr. Chairman, I rise in strong support of the manager's amendment to
H.R. 1555. I am joined in support for that amendment by the
distinguished ranking Democrat member of the Commerce Committee, Mr.
Dingell, and the distinguished chairman of the Judiciary Committee, Mr.
Hyde.
The manager's amendment makes numerous changes to H.R. 1555, as the
bill was reported from the Commerce Committee. Many of these changes
reflect the compromise struck between the Commerce and Judiciary
Committees on issues over which both committees have jurisdiction. As
you know, the Judiciary Committee reported H.R. 1528, which also
addresses the AT&T consent decree. The two committees have worked hard
to reconcile the different approaches, and I again want to commend
Chairman Hyde for his diligence and effort to come to this agreement.
Some of the important issues addressed in that agreement include: The
role of the Justice Department relevant to decision on Bell Co. entry
into long distance and manufacturing; Bell Co. provision of electronic
publishing and alarm monitoring; supersession of the modification of
final judgment [MFJ] of the AT&T consent decree; treatment of Bell Co.
successors; the GTE consent decree; State and local taxation of direct
broadcast satellite systems; and civil and criminal on-line
pornography. I believe that we have produced an amendment that
satisfies both committees' concerns on these important issues, and I
commend these provisions to the Members and urge their support for
them.
Additionally, we have addressed the issue of foreign ownership or
equity interest in
domestic telecommunications companies. This new language reflects the
hard work of Messrs. Dingell and Oxley, who sponsored the proposal in
committee, the administration and myself. I must observe, Mr. Chairman,
that the foreign ownership issue is the only matter on which the
administration offered specific language to the Commerce Committee, and
I believe the administration's concerns have been largely resolved.
Conversely, the concerns stated in the President's recent statement on
H.R. 1555 have never been accompanied by specific legislative
proposals. I think the committee's willingness to work to accommodate
specific concerns and proposals speaks for itself.

The amendment also includes several changes to the provision
governing Bell Co. entry into long distance and manufacturing. These
changes enjoy the strong support of the ranking Democrat, Mr. Dingell,
the chairman of the Telecommunications Subcommittee, Mr. Fields, and
the chairman of the Committee on the Judiciary, Mr. Hyde.
I will not claim to the Members of the House that these provisions,
or this issue generally, is without controversy. This issue has been
clouded with controversy virtually since the AT&T divestiture took
effect on January 1, 1984. Since that time, the issue of loosening the
restrictions on AT&T's divested progeny, the so-called Baby Bells, has
been before Congress during each term. And each time, Congress has
failed to act. Consequently, Judge Harold Greene has been left de
facto, to fashion telecommunications policy. I personally believe he
has done a good job, but it is time for Congress to retake the field.
I believe the changes incorporated in the manager's amendment reflect
the committee's effort to craft a very careful balance. It has not been
easy to draft language that is satisfactory to both sides in this
debate. This difficult task will continue in the conference. This is
our best effort, and it is broadly supported by Members both on and off
the committee. I urge my colleagues to support this approach.
Finally, the amendment includes numerous other technical and
substantive revisions to H.R. 1555. Most notably, the revisions include
clarifications on municipalities' ability to manage rights-of-way,
limitations on the rural telephone exemption, manufacturing by
Bellcore, facilities siting for wireless services, a telecommunications
development fund for small entrepreneurial telecommunications
businesses, changes to the video platform to make it permissive, and
provision for the ultimate repeal of the cable-MMDS cross-ownership
restriction.
More importantly, the manager's amendment complements the vision and
goals of the underlining bill. The key to H.R. 1555 is the creation of
an incentive for the current monopolies to open their markets to
competition. The whole bill is based on the theory that once
competition is introduced, the dynamic possibilities established by
this bill can become reality. Ultimately, this whole process will be
for the common good of the American consumer.
I urge strong support for the manager's amendment.
Mr. Chairman, I reserve the balance of my time.
The CHAIRMAN. The gentleman from Texas [Mr. Bryant] is recognized for
15 minutes.
Mr. BRYANT of Texas. Mr. Chairman, I yield myself such time as I may
consume.
(Mr. BRYANT of Texas asked and was given permission to revise and
extend his remarks.)
Mr. BRYANT of Texas. Mr. Chairman, there are so many things to be
said this morning in the amount of time available that cannot all be
said, but let me first say this. The process by which we have arrived
at this early hour, after having quit so late last night, is not one
that, in my view, reflects well upon this institution.
I am disappointed both in the leadership of the Republican Party and
the Democrats for allowing this to take place. The fact of the matter
is, the full committee, after months of work, months and months of
work, reported a bill out that was designed to ensure that as we begin
to see competition in areas that had never before seen competition, we
would see the strongest gorilla on the block, the Bell competitors,
enter into competition on the basis of a checklist that would make sure
that they did not enter into it in such a way that they squeezed out
the tremendously beneficial value to the consumer of the long distance
competitive industry that has developed over the last 10 or 11 years
since the AT&T monopoly broke up in the beginning.
Mr. Chairman, after the committee met and did our work, suddenly out
of nowhere comes this amendment that has been created out of public
view, been created in the back rooms, been created without organized
public input, and led by the chairman of the committee and with the
complicity of the chairman of the subcommittee and leaders on our side
as well.
Mr. Chairman, it is not the proper way to go about this. What has it
done? It has, in effect, taken away the most critical parts of this
bill with regard to ensuring that competition will succeed for the
benefit of the American consumer rather than be stamped out.
For example, the committee bill, which we worked on in committee and
which was voted out by a large margin,

[[Page H 8452]]
conditions Bell entry into long distance upon two things: First
implementing a competitive checklist, a list of items that have to
occur if local telephone markets are to be open to competition, number
one; and second, upon a showing that they faced effective facilities-
based local competition.
The managers' amendment, again, put together in a room some place
without the input of the public, without of the input of most of the
members of the committee, takes that away. In fact, a key part of the
actual competition test that requires that a new entrant's local
service be ``comparable in price, features and scope'' would be
dropped.
Mr. Chairman, the impact is that the Bell companies could enter long
distance without facing real local competition. This is complicated,
arcane, it is tedious, but it is the work of this committee and,
unfortunately, the work of this committee has been thrown out as we saw
the work, in my view, of lobbyists in the back room be substituted for
the work of this House in the light of day.
Mr. Chairman, what else have they changed in this amendment? They
have changed 42 things. We are going to hear people say, ``We passed
the bill out of the committee and then we discovered all of these
problems that we had created and we had to get them fixed.''
The fact of the matter is, they apparently had to fix 42 different
things, because there are 42 different changes in this managers'
amendment. It is a shameful process. It is an embarrassment to the
House. I think it is, frankly, an embarrassment to the Members who have
brought it before us, because I do not think they believe in their
hearts that this has been the proper process.
Mr. Chairman, I mentioned one big major change; let me mention
another one. Before, under the committee-approved bill, the Bell
companies would have had to apply for entry into long distance 18
months after we enacted the bill. Why? To give the FCC and the States
enough time to make sure that there was full implementation of the
competitive checklist.
What does the managers' amendment do? It changes that drastically by
saying they can apply for entry after only 6 months. I do not have to
tell Members that serve in this House, and that have served in State
and local government and have served in Federal Government for a long
time that 6 months is not enough time to let these agencies get in a
position to make sure that they do not drive the competitors out of
business, but that is what we have in the managers' amendment.
Resale: Under the committee's bill, the Bell companies are going to
be required to make their local services available for resale by new
local competitors in a way that makes it economically feasible for the
reseller.
What does the managers' amendment do? It changes that entirely. The
economically feasible condition would be eliminated. The fact of the
matter is that we would not be able to guarantee that the Bell
companies would have adequate competition in the local market before
they entered the long distance market.
Mr. Chairman, I think what we see here is a big lobbying war. They
lost it when it was fought in public, but they won it when it was
fought in the back rooms, and so we have an amendment here today that
tries to change the whole course of the process. I think it is
unprecedented. Maybe there is a precedent. If there was a precedent for
it, it should be condemned.
Mr. Chairman, the managers' amendment is a bad deal for the American
people, and I urge every Member to vote against it.
Mr. Chairman, I reserve the balance of my time.
Mr. DINGELL. Mr. Chairman, I yield myself 4 minutes.
Mr. Chairman, I want to first express my gratitude and respect to my
friend and colleague, the gentleman from Virginia [Mr. Bliley], for the
fine fashion in which he has worked with us, and also to my good
friend, the gentleman from Texas [Mr. Fields], the chairman of the
subcommittee. The work of the gentlemen on this matter, as well as the
work of the other members of the Committee on Commerce, has helped
bring us successfully to a point where we can consider this major piece
of telecommunications legislation.
Mr. Chairman, the first item of business, of course, is the managers'
amendment. For the benefit of some of my colleagues around here who
should remember, but do not, I am going to point out that this is a
traditional practice of this body. That is, to assemble an amendment in
agreement between the two committees which have worked on the
legislation, which can then be placed on the floor and voted on.
Mr. Chairman, this is done in an entirely open and proper fashion. It
is an amendment which, on both substance and procedure and practice, is
correct, proper and good and consistent with the traditions of the
House.
The House can vote openly and discuss openly the matters associated
with the managers' amendment and we can then proceed to carry out the
will of the House, which is the way these matters should be done.
Mr. Chairman, there were a number of defects and differences in both
bills. Amongst those provisions was one which required local telephone
companies to subsidize the long distance competitors by setting rates
for resale that were economically reasonable to the reseller.
Mr. Chairman, that would have caused local rates to skyrocket for the
household user. It would have required service which cost $25 to be
sold to AT&T for $6; something which would have caused the necessity of
subsidizing, then, AT&T at the expense of small business and the local
phone user, an outrageous situation.
The gentleman from Virginia [Mr. Bliley] and the gentleman from Texas
[Mr. Fields] worked with me to correct this serious abuse and this
failure in the legislation.
The committee bill also contained a provision that would preclude the
Bell companies from offering
network-based information service. That would have prevented these
companies from offering a number of services in the market, and denied
the customer and the consumer an opportunity to have the best kind of
competitive service from all participants.

The gentleman from Virginia [Mr. Bliley] and the gentleman from Texas
[Mr. Fields] and I worked out a compromise which permits these services
to continue to be offered. That is included in the managers' amendment.
The long distance industry has, in a very curious fashion, charged
that these changes, and others that are included in the amendment,
unfairly benefit the Bell companies. That is absolute and patent
nonsense. All that this amendment does is to remove or modify
provisions that unfairly protect the long distance industry from fair
competition by the Bells, a matter which I will discuss at a later
time.
Frankly, Mr. Chairman, I would note that in many ways it does not go
far enough. There is no justification, whatsoever, for the out-of-
region restriction. The compromise leaves that in place until each Bell
company has received permission to originate long distance service in
each State in its region. That is not an unfair arrangement, but it is
the least favorable from the standpoint of the Baby Bells that is in
any way defensible.

{time} 0820

Mr. Chairman, I also want to remind my colleagues of the scandalous
and outrageous behavior of the long-distance lobby. I want to remind
them that each Member has been deluged with mail and telegrams, many of
which were never sent by the person who appears as signatory. This is a
matter which I will also pursue in another forum.
Mr. Chairman, this was a deliberate attempt to lie to and to deceive
the Congress. It was a deliberate attempt by the long-distance
operators to steal the government of the country from the people and
from the consumers by putting in place a fraudulent system to make the
Congress believe that the people had one set of feelings when, in fact,
they did not and had quite a different set of feelings.
I would hope that those who will be speaking on behalf of the long-
distance industry today will seek to defend that outrageous behavior,
instead of attacking a proper piece of legislation.
Mr. BLILEY. Mr. Chairman, I reserve the balance of my time.
Mr. BRYANT of Texas. Mr. Chairman, I yield 2 minutes to the gentleman
from Oklahoma [Mr. Watts].

[[Page H 8453]]

Mr. WATTS of Oklahoma. Mr. Chairman, I rise in opposition to the
manager's amendment.
Yesterday, my office heard from public utility commissioners all over
the country, Alabama, Arizona, California, Kansas, New Hampshire,
Nebraska, Nevada, my home State of Oklahoma, Oregon, Utah, and
Wisconsin, all public utility commissioners who called and vigorously
agreed with my position. We also heard from the National Association of
State Utility Commissioners, who support my position.
Let me read from one of the letters from a commissioner in New
Hampshire: ``As a State telecommunications regulator, I believe the so-
called manager's amendment to H.R. 1555 will not adequately protect the
interests of the consumer in insuring the existence of meaningful
telecommunications competition.''
Mr. Chairman, this was just one of the letters. I have many more. If
my colleagues would like to take a look at them, they are more than
welcome to do that.
Before we vote on this manager's amendment, I encourage the Members
of this House to call their State public utility or public service
commissioners and see what they think about the manager's amendment. I
have talked to Members of the House over the last 48 hours and said,
``We do not understand this legislation. If you don't understand this
legislation, call your public service or public utility commissioner.''
Mr. Chairman, we are placing the public utility commissioners in an
untenable situation to not put in some sort of tangible measurement for
competition. We must make sure that there is fair and open competition
for our constituents, the ratepayers, who will bear the burden of this
amendment.
I am not concerned about the RBOC's or the long-distance carriers. My
special interest in this situation are the ratepayers. I served for 4
years as a public utility commissioner. I dealt with these long-
distance issues. I dealt with these situations for 4 years.
Mr. Chairman, this is not fair and open competition. I oppose the
manager's amendment. I strongly urge a ``no'' vote to the manager's
amendment, and I ask for fair and open competition.
Mr. Chairman, I submit for the Record the following letters.
State of New Hampshire,

Public Utilities Commission,

Concord, NH, August 3, 1995.
Congressman J.C. Watts,
House of Representatives, Washington, DC.
Dear Congressman Watts: This is written to support the
original version of H.R. 1555. As a state telecommunications
regulator, I believe the so-called Manager's Amendment to
H.R. 1555 will not adequately protect the interests of the
consumer in insuring the existence of meaningful
telecommunications competition.
Sincerely,
Susan S. Geiger,
Commissioner.
____

Nebraska Public Service Commission,

Lincoln, NE, August 3, 1995.
Hon. J.C. Watts, Jr.,
U.S. House of Representatives, Longworth Office Building,
Washington, DC.
Dear Congressman Watts: As a member of the Nebraska Public
Service Commission, I support federal legislation which
preserves the states' role in shaping this country's future
competitive communications industry.
In Nebraska, we are particularly proud of the quality of
telecommunications service our customers enjoy. Any federal
legislation should continue to provide a state role in
regulating quality standards and establishing criteria for
BOC entry in the interLATA market.
The needs of Nebraska's customers are varied; therefore, we
must continue to play an active role during the transition to
fully competitive communications markets.
Sincerely,
Lowell C. Johnson.
____

State of Nevada, Attorney General's Office of Advocate
for Customers of Public Utilities,
Carson City, NV, August 3, 1995.
Ms. Cathy Besser, c/o Rep Vucanovich's Office.
Dear Ms. Besser, We strongly urge Representative Vucanovich
to OPPOSE H.R. 1555, Communications Act of 1995, in its
present form. Several Anticonsumer and anticompetitive
sections of the bill will hurt Nevada's consumers by
thwarting local competition and drastically redoing
regulatory oversight. Please do not allow Rep. Vucanovich to
support HR 1555 in its present form; It will hurt Nevada in
the pocketbook.
Best Regards
Mike G.
____

Arizona Corporation Commission,

Pheonix, AZ, August 3, 1995.
Hon. John Shadegg,
House of Representatives, Cannon House Office Bldg.,
Washington, DC.
Dear Representative Shadegg: I am writing to urge you to
vote against the Manager's amendment to H.R. 1555. The
Communications Act of 1995.
As you may be aware, the Arizona Corporation Commission, on
June 21, 1995, approved far-reaching rules to open local
telecommunications markets in Arizona to competitors. Our
June 21st action came after nearly two years of detailed
analysis of the issues and countless hours of meetings with
all stakeholder groups in arriving at a thoughtful, detailed
process for opening local markets to competition. Arizona's
rules, moreover, make our state one of the 15 most
progressive states in the nation in telecommunications
regulatory reform. Our efforts would be totally negated with
the adoption of the Manager's amendment.
The Manager's amendment would preempt Arizona and other
states from proceeding with plans to open telecommunication
markets to competition, and thereby, put the brakes on the
benefits that customers would receive from competition.
Please vote against the Manager's amendment, and allow
competition to proceed in Arizona.
Very truly yours,
Marcia G. Weeks,
Commissioner.
____

Public Service

Commission of Wisconsin,

Madison, WI, August 3, 1995.
Hon. J.C. Watts,
House of Representatives, Longworth House Office Building,
Washington, DC.
Re: H.R. 1555
Dear Representative Watts: I agree that the original bill
did a much better job of balancing the power between
competitors, and because of that, it did a better job of
promoting competition. My concern about the original bill is
that it gave too much power to the Federal Communications
Commission (FCC) and preempted the states.
H.R. 1555 as originally drafted takes away current state
authority and gives back only very specific and limited
authority, while expanding the authority of the FCC. The bill
allows the FCC to preempt the states on many key issues. This
provides an incentive for the current monopoly provider to
challenge every state decision. Rather than lessening
regulation, this will add an additional layer. The regulatory
lag created by the dual level of regulation will also
advantage the dominant provider to the detriment of
competitors, customers and the country. If all authority is
given to the FCC, state progress, and thus competition, will
come to a halt. Although the managers amendment does not give
us everything we had asked for, it certainly does a better
job of balancing federal and state jurisdiction.
To the extent that your efforts would give the states a
stronger chance to gain some ground on the jurisdictional
issues in conference committee, I would tend to support your
efforts.
Sincerely,
Cherly L. Parrino,
Chairman.
____

State of Alabama,

Alabama Public Service Commission,

Montgomery, AL, August 3, 1995.
Hon. Spencer Bachus,
House of Representatives, Washington, DC.
Dear Representative Bachus: We would like to register our
agreement with Congressman Watts over the status of H.R.
1555. The bill that came out of committee was a carefully
drafted document that did have some level of support from
industry and regulatory representatives.
The National Association of Regulatory Utility
Commissioners (NARUC) Telecommunications Committee, of which
Commissioner Martin is a member, participated in the crafting
of this bill and was supportive of it as it passed the House
Committee. In addition, Commissioner Sullivan, a member of
the NARUC Executive Committee, does not favor the provisions
in the Manager's Amendment. We feel that the Manager's
Amendment will make the job of ensuring fair competition very
difficult. We urge you to vote against the Manager's
Amendment and go back to the original bill the Committee
members drafted and passed.
Sincerely,
Jim Sullivan,
President.
Charles B. Martin,
Commissioner.
Mr. BRYANT of Texas. Mr. Chairman, I yield 1\1/2\ minutes to the
gentleman from Pennsylvania [Mr. Foglietta].
Mr. FOGLIETTA. Mr. Chairman, I rise in strong opposition to the
Bliley-Fields amendment.
This is a body hell bent against tax increases, but let's be clear
about what this bill is. It's a tax increase. People will see increases
in their telephone bills, their cable bills, their internet bills, and
bills for any service that connects them to any communications wire.
Each and every day, we hear about and see rapid developments in
communications that keep our country on the cutting edge. Now is not
the time to

[[Page H 8454]]
pass a law that could harness this energy. We should be unleashing, and
reaping the benefits of this exciting new technology.
The Bliley-Fields amendment is a harness that maintains old
monopolies, and stifles real competition.
H.R. 1555 is also a bad deal for consumers. It is estimated that
since we passed the Cable Act in the 102d Congress, consumers have
saved more than $3 billion. This bill would gut those provisions and
deregulate an industry where no real competition exists.
I urge you to think about your constituents as they answer their
phones, sign on to their computers, turn on their televisions, and open
their cable bills. If we rush pass H.R. 1555, our constituents may
start thinking negatively about us when they do these things. Vote no
on this tax increase, vote ``no'' on Bliley-Fields.
Mr. BLILEY. Mr. Chairman, I yield 1 minute to the gentleman from
Illinois [Mr. Hyde], the distinguished chairman of the Committee on the
Judiciary.
(Mr. HYDE asked and was given permission to revise and extend his
remarks.)
Mr. HYDE. Mr. Chairman, I commented more extensively on the manager's
amendment in the debate in chief on the general debate, so I will not
repeat that now, except to say I do support the manager's amendment. I
think it has tied up a lot of loose ends and makes the entire
telecommunications field more competitive.
The purpose of the entire legislation was really to enhance
competition, because that certainly helps the consumer, facilitates
development of all these various industries, and benefits the country
and the economy at large. Given the complexity of this legislation,
this manager's amendment goes a long way toward resolving that.
The Committee on the Judiciary met with the staff of the gentleman
from Virginia [Mr. Bliley] and resolved many controversies, so I am
pleased to support the manager's amendment.
Mr. BRYANT of Texas. Mr. Chairman, I yield 1 minute to the gentleman
from Oregon [Mr. Bunn].
Mr. BUNN of Oregon. Mr. Chairman, this bill has a lot of good things
in it, but one it does not have is increased competition.
In a real effort to provide more competition, I offered an amendment
that simply said that a Bell Co. has to have at least the availability
of 10 percent of the customers going to a competitor, not that 10
percent have to be signed up for competition, but that 10 percent have
to be able to sign up for competition. That was ruled out of order to
protect the manager's amendment.
Mr. Chairman, the manager's amendment goes a long way to shut down
realistic competition. If the manager's amendment passes, consumers
lose. We need to reject the manager's amendment, go back to the
language that came out of the committee or ensure that we put in
language that would allow real competition, ensuring that at least 10
percent of the customers have the ability to ask for service from a
competitor.
Mr. Chairman, I do not think 10 percent is unreasonable. However, I
think the manager's amendment is very unreasonable, and I would urge a
``no'' vote.
Mr. BRYANT of Texas. Mr. Chairman, I yield 1\1/2\ minutes to the
gentleman from New York [Mr. Forbes].
Mr. FORBES. Mr. Chairman, I thank my colleague from Texas [Mr.
Bryant], and rise in reluctant opposition to the manager's amendment.
The process that brought this manager's amendment to the House floor
today has been sorely compromised and will result in a bill that, I
believe, will raise more questions than answers. My key concern with
process rests in the manager's amendment that is before us.
As we all know, the Commerce Committee reported out H.R. 1555 by a
consensus-demonstrating vote of 38 to 5. Before that, the Subcommittee
on Telecommunications and Finance reported the legislation after
lengthy debate, and previously in this Congress, after many hearings,
and in Congresses before, other numerous hearings related to the
telecommunications reform measures before us today.
While no one was completely pleased with the bill that was reported
out originally by the committee, the committee did produce a balanced
bill. That is what happens when you hold public hearings and public
markups. It is the way the process is supposed to work in this House.
But what we have before us today, Mr. Chairman, is a manager's
amendment that is 60 pages long, with 42 different changes from what
the committee reported out.
Mr. Chairman, we are being asked to vote on this amendment and adopt
it practically sight unseen. If the changes made in this 60-page
manager's amendment are so important, why was not this amendment
returned to the Commerce Committee and to the Committee on the
Judiciary for their approval before going to the floor?
Mr. Chairman, I vote a ``no'' vote on the manager's amendment.
Mr. DINGELL. Mr. Chairman, I yield 2 minutes to the gentleman from
Virginia [Mr. Boucher] for an enlightened discourse on this matter, and
I have been looking forward very much to hearing from the friends of
the long-distance operators and I am somewhat distressed that I am not
going to do so at this time.
(Mr. BOUCHER asked and was given permission to revise and extend his
remarks.)
Mr. BOUCHER. Mr. Chairman, I thank the gentleman for yielding.
Mr. Chairman, I rise in support of the manager's amendment and in
support of H.R. 1555 and would like to take this time to engage in a
colloquy with the gentleman from Illinois [Mr. Hastert] with respect to
legislation we have crafted concerning the application of the
interconnection requirements with respect to small telephone companies,
and at this time, I would yield to the gentleman from Illinois [Mr.
Hastert] for that colloquy.
Mr. HASTERT. Mr. Chairman, I thank the gentleman for yielding.
Mr. Chairman, as you know, the gentleman from Virginia [Mr. Boucher]
and I have been working on language to refine an amendment that the
gentleman offered at full committee. I would like to ask the gentleman
to take a moment to outline the purpose of his original amendment.
Mr. BOUCHER. Mr. Chairman, reclaiming my time, the amendment that I
offered at full committee and which was approved on a voice vote was
meant to assure that the more than 1,000 smaller rural telephone
companies in our Nation would not have to comply immediately with the
competitive checklist contained in section 242 of H.R. 1555.
Rural telephone companies were exempted because the interconnection
requirements of the checklist would impose stringent technical and
economic burdens on rural companies, whose markets are in the near term
unlikely to attract competitors.
It was never our intention, however, to shield these companies from
competition, and it is in that context that the language the gentleman
and I have agreed to is pertinent, and I would yield back to him to
explain the amendment we have crafted.
Mr. HASTERT. Mr. Chairman, I thank the gentleman for yielding.
Mr. Chairman, a refinement of the Boucher amendment assures that
rural telephone companies defined in H.R. 1555 will be exempted from
complying with the competitive checklist until a competitor makes a
bona fide request. Once a bona fide request is made, a State is given
120 days to determine whether to terminate the exemption.
States must terminate the exemption if the expanded interconnection
request is technically feasible, not unduly economically burdensome, is
consistent with certain principles for the preservation of universal
service.
Mr. BLILEY. Mr. Chairman, I yield 30 seconds to the gentleman from
Illinois [Mr. Hastert].
(Mr. HASTERT asked and was given permission to revise and extend his
remarks.)
Mr. HASTERT. Mr. Chairman, of critical importance here is an
understanding shared by the gentleman from Virginia [Mr. Boucher] and
me that the economic burdens of complying with the competitive
checklist fall on the party requesting the interconnection. However, to
the extent the rural telephone company economically benefits from the
interconnection, the States should offset the costs imposed by the
party requesting interconnection.
Furthermore, we want to make clear that while H.R. 1555 provides that
the

[[Page H 8455]]
user of the interconnection pay the cost of interconnection, the user
in this context is the corporate entity requesting interconnection with
a local exchange company.
It would be a perversion of the intent if the cost of complying with
the competitive checklist would require the incumbent rural telephone
company to increase its basic local telephone rates to fund the
competitor's service offering.
Mr. BRYANT of Texas. Mr. Chairman, I yield 1 minute to the gentleman
from Pennsylvania [Mr. Klink].
Mr. KLINK. Mr. Chairman, I thank the gentleman for yielding.
Mr. Chairman, the question this morning is, what is the hurry? After
61 years, we spent time in committee and in subcommittee and we
developed H.R. 1555. I did not support the bill but at least I was part
of the process.
Now it is whether you believe the Washington Post and the Wall Street
Journal who say that people like Rupert Murdoch and Ameritech and
others have gotten special favors from this manager's mark. In other
words, after the committee had worked its will, large corporations
continued to lobby the Republican leadership to change the bill and
they agreed to do it.
Mr. Chairman, this amendment is a top down, your vote does not count.
The only important input is from the Speaker of the House amendment.
This is not the kind of representative government that our constituents
deserve. Nearly every provision that is in this manager's mark should
be voted on separately. It is not going to happen. We will not have
that opportunity. This is a bad process. It is bad governance, and I
urge my colleagues to oppose the manager's amendment.
Mr. BRYANT of Texas. Mr. Chairman, I yield 1 minute to the gentleman
from New Jersey [Mr. Frelinghuysen].
Mr. FRELINGHUYSEN. Mr. Chairman, I thank the gentleman for yielding.
Mr. Chairman, I rise in opposition to the manager's amendment.
Mr. Chairman, we all favor increased competition in all markets. And
that is what I thought this bill stood for. But the fact is that local
carriers are in a unique position because all long-distance calls must
pass through their facilities.
This control lets the local carriers discriminate against their
competitors in the delivery of long-distance service. If not a single
other entity can offer this service with their own equipment, the
locals will continue to stifle competition.
That is precisely why we need the facilities based competition
provided in the original bill. The 66 page manager's amendment--takes
this entry test out of the bill, and that is simply unfair.
Mr. Chairman, if there is only one drawbridge over a river, the
person who lifts that bridge is a monopoly. Likewise, if all long-
distance calls have to go through one company's switches, we still have
a monopoly. Oppose this amendment and support the original bill.
Mr. BRYANT of Texas. Mr. Chairman, I yield 1 minute to the gentleman
from Massachusetts [Mr. Markey].
Mr. MARKEY. Mr. Chairman, I thank the gentleman for yielding.
Mr. Chairman, we have two choices in this bill. The whole notion of
an open architecture cyberspace-based competition is undermined by what
has happened between the full committee and the manager's amendment.
What we had determined at the full committee was that if, in fact,
the telephone company used common carrier facilities in order to build
their cable network, that it would have to have an open architecture,
so that any provider of information, any 18-year-old kid, any producer,
would be able to use this common carrier network in order to get their
ideas into every home.
Mr. Chairman, that was in contrast to the old cable model where if
the telephone company built another cable system, but under design of
the cable companies of the past, then they would be regulated like a
cable company, get a franchise.
This bill takes that open architecture concept, throws it out the
window. We must go back to that if we are going to enjoy the full
benefits of this information revolution.
What is most troubling to me about the manager's amendment is that it
takes the open access, common carrier model for telephone company
delivery of video and makes that optional.
The information superhighway had always been heralded as an
opportunity for consumers to get 500 channels of television, and for
independent, unaffiliated producers of information to use the network
and reach the public.
The bill had set up an appropriate balance I believe. It told the
phone companies that when they got into the cable business they had a
choice. They could build separate facilities, and overbuild cable
systems to provide video services. If they did that they would be
regulated as a cable company is regulated--under title 6 of the
Communications Act--and they would have to go out and obtain a
franchise just as cable companies do.
The second option--if they wanted to use their phone network
facilities and construct a system using a common carrier, equal access
network to send video services to consumers--the legislation provided a
video platform model. This video platform model ensured that
unaffiliated, independent programmers, software engineers, the kid in
the garage--could obtain access to the phone company's network and
provide video, interactive, multimedia services to consumers too.
After all, every consumer ratepayer had helped pay for the phone
network, shouldn't everyone have a right to use the information
superhighway.
These openness rules were provisions establishing rules also under
title 6 of the Communications Act. The bill specifically said that
there would be no burdensome title 2 traditional phone company, utility
type regulation. The bill already dealt with that and did it well.
The managers amendment, on the other hand, would allow a phone
company to build a closed, proprietary cable system on a common carrier
phone network architecture. No other independent film producer,
unaffiliated programmer, video game maker can claim a right to
carriage. Only the phone company.
This isn't the open road people have in mind when they think of
cyberspace. In fact, the very notion of cyberspace in antithetical to
closed, proprietary systems where only one provider of information is
allowed to rule the road.
One of the principles of common carriage for 60 years has been that
any service you make available to one entity, you have to make
available to all comers. This managers amendment lets the phone
company--on a common carrier facility--make access available to itself
and no one else.
I think that is a giant step backward and for that reason I oppose
the managers amendment. It is bad for small, independent, unaffiliated
providers of information, for entrepreneurs and inventors.
I believe that if phone companies are going to use the phone
network--a communications network that all ratepayers have paid for--
that access for video services should not be the sole domain of the
phone company, but rather an open superhighway for other creative
geniuses as well.
Mr. DINGELL. Mr. Chairman, I yield myself 1 minute.
(Mr. DINGELL asked and was given permission to revise and extend his
remarks.)
Mr. DINGELL. I have heard a lot of irresponsible talk about how
secret agreements were made between the two committees. Well, nothing
of the kind occurred. There was open discussion between the chairman of
the Committee on the Judiciary and the chairman of the Committee on
Commerce, and from that came the managers' amendment, and there is no
secrecy involved here.
As a matter of fact, for the benefit of those who do not know, the
manager's amendments return this legislation to something very close to
what passed this House last year 423 to 5. That is what the members'
amendment does. The process is open. Members are having an opportunity
to discuss this on the House Floor under a rule, and to say otherwise
is either to deceive yourself or to deceive the Members of this body.
That is what the facts are, and I would urge my colleagues to not
listen to this kind of nonsense, but rather, to respect the
institution, the Members who have brought forward this amendment, to
understand that it is a fair amendment, it is in the public interest,
and it is balanced, and it is not founded upon a lot of sleazy lobbying
of the kind we have seen and the mail we have been getting from the
long-distance industry.
{time} 0840

Mr. BRYANT of Texas. Mr. Chairman, I yield myself the balance of my
time.
The CHAIRMAN. The gentleman from Texas is recognized for 1 minute.

[[Page H 8456]]

(Mr. BRYANT of Texas asked and was given permission to revise and
extend his remarks.)
Mr. BRYANT of Texas. Mr. Chairman, I say to my colleagues, had I been
a party to this, I would stand up on the floor, and I would wave my
arms and speak loudly as well. The fact of the matter is you voted for
the bill that came out of committee, and the gentleman from Virginia
[Mr. Bliley] voted for the bill that came out of committee. I voted
against it. But now the two of you come to the floor with a totally
different bill. Mr. Chairman, this is not the bill that passed the
House by 400 and something to nothing last year. This is a totally
different approach. The fact of the matter is it was written in the
darkness. The committee did not have any input into this. The Members
did not have any input into this. My colleagues wrote it behind closed
doors. The Bell companies came and said, ``Hey, we decided we don't
like what happened in the committee. Rewrite the bill and help us
out.''
Mr. Chairman, that is what my colleagues have done here. The fact of
the matter is this process is an outrage, and Members stand on the
floor, and wave their arms and say somebody is trying to deceive the
American people, they should have written the bill in public, not
behind closed doors. It is an outrage.
I would urge Members, if for no other reason, and I will not yield to
the gentleman.
The CHAIRMAN. The time of the gentleman from Texas [Mr. Bryant] has
expired.
Mr. BLILEY. Mr. Chairman, I yield such time as he may consume to the
gentleman from North Carolina [Mr. Burr].
(Mr. BURR asked and was given permission to revise and extend his
remarks.)
Mr. BURR. Mr. Chairman, I rise in support of the manager's amendment.
During the Commerce Committee's consideration of H.R. 1555, I offered
an amendment designed to permit Bell operating telephone companies to
resell the cellular services of their cellular affiliates. Currently,
Bell operating companies, alone among local telephone companies, are
prevented from providing or even reselling cellular services with their
local services. Larger companies, like GTE--the largest local exchange
carrier in the United States--are not restricted from marketing
cellular services with their long distance or local services.
Several of my colleagues were concerned that they had not had an
ample opportunity to consider the amendment. With the understanding
that it could be included in the managers' amendment if these members,
upon further study, were not troubled by the substance of the
amendment, I withdrew it. Having satisfied the members' concerns with
new language, I want to thank the managers of this bill for agreeing to
include that language in their amendment.
As with my original amendment, the primary goal of the new language
is to provide the Bell operating telephone companies with sufficient
relief from existing FCC rules to permit them to offer one-stop
shopping of local exchange services and cellular services. Currently,
FCC rules not only prohibit those operating companies from physically
providing cellular services--that is, from owning the towers,
transmitters, and switches that make up cellular services--but also
from marketing cellular services--that is, selling cellular services.
This amendment does not lift the FCC's prohibition against the Bell
operating telephone companies providing the cellular services; it
merely permits them to jointly market or resell their cellular
affiliate's cellular services along with their local exchange services.
Under existing FCC polices, cellular providers must permit resale of
their cellular services. Thus, virtually everyone but the Bell
operating telephone companies can resell the cellular services of their
cellular affiliates.
Thus, together with other provisions in the bill, this amendment will
help to put the Bell operating telephone companies on par with their
competitors by allowing them to resell cellular services--including the
provision of interLATA cellular services--in conjunctions with local
exchange services and other wireless services--that is, PCS services--
that they are already permitted to provide.
AT&T has voluntarily entered into a proposed consent decree with the
Department of Justice. This would obviate certain potential violations
of section 7 of the Clayton Act arising out of its acquisition of McCaw
Cellular. To overcome the Department's opposition to the acquisition,
AT&T agreed to certain restrictions regarding its provisions and
marketing of McCaw's cellular services.
In order to ensure that all carriers can offer similar service
packages, language has been included in the amendment to supersede
language in that pending decree. As a result, AT&T and others will be
able to sell cellular services on the same terms as the Bell companies.
Specifically, all carriers would be able to sell cellular services,
including interLATA cellular services, along with local landline
exchange offerings.
However, the Bell operating companies will not be able to offer
landline interLATA services in conjunction with such local telephone--
even in conjunction with a cellular/cellular interLATA service
offering--until they have met the conditions for interLATA relief.
Accordingly, the amendment makes it clear that it does not alter the
effect of subsection 242(d) on AT&T or any other company. As a result,
AT&T and other competitors subject to that provision will not be able
to offer or market landline interLATA services with a local landline
exchange offering--even in conjunction with a cellular/cellular
interLATA package--until the Bell companies are authorized to do so.
Mr. BILILEY. Mr. Chairman, to close debate, I yield the balance of my
time to the gentleman from Texas [Mr. Fields], the chairman of the
subcommittee.
The CHAIRMAN. The gentleman from Texas [Mr. Fields] is recognized for
2 minutes.
(Mr. FIELDS of Texas asked and was given permission to revise and
extend his remarks.)
Mr. FIELDS of Texas. Mr. Chairman, let me just say very briefly, and
then I am going to yield to the gentleman from Michigan, this is a fair
and balanced approach that we are now bringing to this floor for a
vote. This is a delicate process, it is a complex process. On a piece
of legislation like this we expect a manager's amendment. No one has
talked about other things that are in this manager's amendment, local
siting, under the right-of-way, the telecommunication development fund
sponsored by the gentleman from New York [Mr. Towns], a lot of good
things in this particular amendment. But I want to identify myself with
the remarks made by the gentleman from Michigan. In my career I have
never seen a more disingenuous lobbying effort by any segment of an
industry.
The long-distance industry, I say shame on them.
Mr. DINGELL. Mr. Chairman, will the gentleman yield?
Mr. FIELDS of Texas. I yield to the gentleman from Michigan.
Mr. DINGELL. Mr. Chairman, I want to reiterate to my colleagues the
process under which we are considering this legislation is no different
than we have ever done wherever we have had differences between two
committees, and the process of working out an amendment between those
who supported the bill is an entirely sensible one. Had the gentleman
from Texas desired to be a participant in that, he could have, * * *
and the result of that is that he did not participate.
Mr. BRYANT of Texas. Mr. Chairman, I ask that the gentleman's words
be taken down.
The CHAIRMAN. The gentleman from Michigan will suspend.
Does the gentleman ask unanimous consent to withdraw his reference?
Mr. DINGELL. Mr. Chairman, I ask unanimous consent to withdraw the
words referred to.
Mr. BRYANT of Texas. Reserving the right to object, Mr. Chairman, I
do not intend to go along with this unanimous-consent request unless
there is an apology and an explanation that what he said was
inaccurate, totally inaccurate, because I have had absolutely no
involvement with the chairman with regard to the development of this
amendment whatsoever, and so what he said was inaccurate.
Mr. Chairman, if the gentleman will acknowledge it was inaccurate, at
that time I will be happy to go along with his unanimous-consent
request.
The CHAIRMAN. Does the gentleman from Texas [Mr. Bryant] yield under
his reservation of objection to the gentleman from Michigan [Mr.
Dingell]?
Mr. BRYANT of Texas. I do, Mr. Chairman.
The CHAIRMAN. The Chair recognizes the gentleman from Michigan [Mr.
Dingell].
Mr. DINGELL. Mr. Chairman, I am not quite sure what the Chair is
telling me.
The CHAIRMAN. The gentleman from Texas reserves the right to object,
and under his reservation he has said that he would insist on having
the gentleman's words taken down.

[[Page H 8457]]

Mr. DINGELL. Mr. Chairman, if I said anything which offends the
gentleman, I apologize.
The CHAIRMAN. The gentleman from Texas?
Mr. BRYANT of Texas. Further reserving the right to object, Mr.
Chairman, I will not go along with the unanimous-consent request after
the words that were spoken were so evasive as that. The fact of the
matter is the gentleman made a factual allegation with regard to my
role in this bill which was totally inaccurate. I want him to
apologize, and I want him to state that it was not correct what he said
because he knows it was not correct. Otherwise I would insist that the
gentleman's words be taken down.
The CHAIRMAN. The gentleman from Texas [Mr. Bryant] insists that the
words of the gentleman from Michigan [Mr. Dingell] be taken down.
Mr. DINGELL. Mr. Chairman, I would ask unanimous consent to withdraw
the word ``sulk.''
The CHAIRMAN. Without objection, that word is withdrawn.
Mr. BRYANT of Texas. Further reserving the right to object, Mr.
Chairman, I have made it very clear that the gentleman from Michigan
[Mr. Dingell] made an allegation about me that was incorrect, and I
want him to state that it was not correct, and he knows it was not
correct, and then I want him to apologize for it. Otherwise there is
not going to be any withdrawal of my objection.
The CHAIRMAN. The gentleman from Texas [Mr. Bryant] continues to
reserve the right to object.
Mr. BRYANT of Texas. I would just point out once again I have had no
dealings with the gentleman on this matter. He has no basis on which to
make that statement whatsoever, nor have I had any dealings in any
fashion interpretable in the way that the gentleman spoke to the other
side, and, if he is going to persist in that allegation, then I am
going to insist that his words be taken down.
The CHAIRMAN. Does the gentleman from Michigan care to respond?
Mr. DINGELL. Mr. Chairman, I am not quiet sure to what I am supposed
to respond.
The CHAIRMAN. A unanimous-consent request has been made to withdraw
the words. The gentleman from Texas has reserved the right to object to
that unanimous-consent request stating, as he has stated, that he
desires an apology and an understanding that it was factually
incorrect.
Mr. DINGELL. Mr. Chairman, I have asked unanimous consent to withdraw
the words. I have said that if I have said something to which the
gentleman is offended, then I apologize. I am not quite sure how much
further I can go in this matter.
Mr. BRYANT of Texas. Reserving the right to object, Mr. Chairman, I
will tell the gentleman how much further he can go in this matter.
Mr. Chairman, I have had no visits with the gentleman about this
manager's amendment except to express my general opposition to the
whole process. The gentleman stated that I behaved in a particular way
when in fact I have had no opportunity to behave either this way or any
other way with the gentleman, and, if what the gentleman said is simply
an outburst of temper, I think, I have been guilty of the same thing,
and I want the gentleman to make it plain to the House that there has
been no opportunity for there to have been any type of behavior
whatsoever.
Mr. DINGELL. Mr. Chairman, will the gentleman yield?
Mr. BRYANT of Texas. I yield to the gentleman from Michigan.
Mr. DINGELL. Mr. Chairman, I will be pleased to make the observation
that the gentleman chose not to be a participant in moving the bill
forward. If I said that he has sulked, that was in error. I apologize
to the gentleman.
The CHAIRMAN. Without objection, the words are withdrawn.
There was no objection.
Mr. BRYANT of Texas. Mr. Chairman, I withdraw my reservation of
objection.
Mr. FIELDS of Texas. Mr. Chairman, how much time do I have remaining?
The CHAIRMAN. The gentleman from Texas has 30 seconds remaining.
Mr. FIELDS of Texas. Mr. Chairman, I yield myself the balance of my
time.
Mr. Chairman, the gentleman from Michigan has made it clear to
Democrat Members this is a fair process, it is a good process. I want
to say to Republican Members we have worked for 2\1/2\ years on opening
the local loop to competition. If my colleagues want fair competition,
if they want the loop open with a level playing field, vote for this
manager's amendment. It is time to move this process forward, time to
move the telecommunication industry into the 21st century.
Mr. TAUZIN. Mr. Chairman to enforce the long-distance restriction on
the seven Bell companies, the district court approved the establishment
of the so-called local access transport area or LATA system. The
drawing of the LATA system is extraordinarily complex and confusing.
There are 202 LATA's nationwide; four of them are in Louisiana and they
bear no relationship to markets or customers. Yet it is the LATA system
that is used to regulate markets and limit customer choices. LATA
boundaries routinely split counties and communities of interest. LATA
boundaries can even extend across State lines to incorporate small
areas of a neighboring State into a given LATA. Louisiana does not have
any of these so-called bastard LATA's but our neighboring State to the
east, Mississippi, does. Towns and communities in the northwest corner
of Mississippi, such as Hernando, are actually part of the Memphis
LATA. That's Memphis, TN, not Mississippi.
The enforcement of the long-distance restriction on the seven Bell
companies and the establishment of the LATA system effectively
preempted State jurisdiction over entry and pricing of
telecommunications service. In the process, State authority over
intrastate inter-LATA telecommunications have been impeded. For
example, in Louisiana the Public Service Commission instituted a rate
plan that provided K-12 schools with specially discounted rates for
high speed data transmission services. With the availability of the
education discount, it was contemplated that school districts could
upgrade their educational systems, establish computer hook-ups, and tie
into their central school board locations to improve and facilitate
administrative services. The public school system in Louisiana is
aggressively implementing communications technology to improve access
to educational resources and streamline administrative processes.
There are 64 parishes in Louisiana. Each parish has its own school
district. Thirteen of the sixty-four parishes are traversed by a LATA
boundary, meaning the school district locations in each parish are
divided by the LATA system. Consequently, K-12 schools in the Allen,
Assumption, Evangeline, Iberia, Iberville, Livingston, Sabine, St.
Charles, St. Helena, St. James, St. John the Baptist, St. Landry, St.
Martin, St. Mary, Tangipahoa, Vernon, and West Feliciana Parishes are
unable to take advantage of the education discount program as intended
by the Louisiana Public Service Commission. The LATA boundary
effectively prevents the schools in these 13 parishes from linking to
the Louisiana Education Network and the Internet as well. These
failures are attributable to the fact that the inter-LATA restriction
dictates alternative, circuitous routing requirements to link the
schools--making the service unaffordable. The chart to my right
depicting the scenario of the Vernon Parish
School District is just one example of this routing problem. The
inability of these 13 school districts to network K-12 schools is
denying the students, teachers, and administrators throughout these
parishes the opportunity to utilize new tools for learning and
teaching.

The LATA system arbitrarily segments the telecommunications market.
Many business, public, and institutional customers, such as the 13
parish school districts in Louisiana, have locations in different
LATA's which makes serving them difficult, costly, and inefficient. In
Louisiana, BellSouth has filed tariffs with the Public Service
Commission, is authorized to provide the high-speed data transmission
services, and would be in a position to offer the services to the 13
school districts at specially discounted rates were it not for the
inter-LATA long-distance restriction. In the alternative to BellSouth,
to receive the desired service any one of the 13 school districts must
resort to the arrangement by which the service is provisioned over the
facilities of a long-distance carrier. Typically, this would involve
routing the service from one customer location in one LATA to the long-
distance carrier's point of presence in that LATA then across the LATA
boundary to the carrier's point of presence in the other LATA and then
finally to the other customer location to complete the circuit. As the
explanation sounds, this alternative route utilizing the long-distance
carrier's facilities is less direct, more circuitous, and more costly
to the customer than a direct connection between the two customer
locations. Of the 13 affected school districts in Louisiana, I have
chosen the example of the Vernon Parish schools to show the cost
penalizing effect of the inter-LATA restriction.
Most of the schools in Vernon Parish are in the Lafayette LATA and
are connected by a

[[Page H 8458]]
network based in Leesville. Unfortunately, two schools in the Hornbeck
area are across a LATA boundary and linking them to Leesville is so
expensive that Vernon parish has not been able to include them in the
network.
Hornbeck is only 16 miles from Leesville but it is in a different
LATA. BellSouth could provide a direct and economical connection
between the Hornbeck schools and Leesville but it is prevented from
doing so because of the inter-LATA restriction.
Instead, the connection between Hornbeck and Leesville would have to
be made through an indirect routing arrangement involving a long-
distance carrier, AT&T. In this scenario, the route would run from
Hornbeck to Shreveport, then 185 miles across the LATA boundary to
Lafayette, before finally reaching Leesville, a total distance of 367
miles.
The inter-LATA restriction forces Vernon Parish to use a longer and
more expensive route to connect all the schools within its district. If
BellSouth was allowed to provide the direct connection between Hornbeck
and Leesville, the cost to connect the Hornbeck schools would be almost
$48,000 less each year, a savings that could enable the parish to
include them in the network.
The inter-LATA restriction is imposing a tremendous cost penalty on
users of telecommunications and is preventing telecommunications from
being used in cost effective and efficient ways. The manager's
amendment would make it possible for customers like the Vernon Parish
School District to take advantage of the benefits of telecommunications
technology by giving them greater choices in service providers. For
this reason, the manager's amendment is worthy of your support.
The relationship between section 245(a)(2)(A) and 245(a)(2)(B) is
extremely important because they are, along with the competitive
checklist in section 245(d), the keys to determine whether or not a
Bell operating company is authorized to provide interLATA
telecommunications services, that are not incidental or grandfathered
services. As such, several examples will illustrate how these sections
function together.
Example No. 1: If an unaffiliated competing provider of telephone
exchange service with its own facilities or predominantly its own
facilities has requested and the RBOC is providing this carrier with
access and interconnection--section 245(a)(2)(A) is complied with.
Example No. 2: If no competing provider of telephone exchange
services has requested access or interconnection--the criteria in
section 245(a)(2)(B) has been met.
Example No. 3: If no competing provider of telephone exchange service
with its own facilities or predominately its own has requested access
and interconnection--the criteria in section 245(a)(2)(B) has been met.
Example No. 4: If a competing provider of telephone exchange with
some facilities which are not predominant has either requested access
and interconnection or the RBOC is providing such competitor with
access and interconnection--the criteria in section 245(a)(2)(B) has
been met because no request has been received from an exclusively or
predominantly facilities based competing provider of telephone exchange
service. Subparagraph (b) uses the words ``such provider'' to refer
back to the exclusively or predominately facilities based provider
described in subparagraph (A).
Example No. 5: If a competing provider of telephone exchange with
exclusively or predominantly its own facilities, for example, cable
operator, requests access and interconnection, but either has an
implementation schedule that albeit reasonable is very long or does not
offer the competing service either because of bad faith or a violation
of the implementation schedule. Under the circumstances, the criteria
245(a)(2)(B) has been met because the interconnection and access
described in subparagraph (B) must be similar to the contemporaneous
access and interconnection described in subparagraph (A)--if it is not,
(B) applies. If the competing provider has negotiated in bad faith or
violated its implementation schedule, a State must certify that this
bad faith or violation has occurred before 245(a)(2)(B) is available.
The bill does not require the State to complete this certification
within a specified period of time because this was believed to be
unnecessary, because the agreement, about which the certification is
required, has been negotiated under State supervision--the State
commission will be totally familiar with all aspects of the agreement.
Thus, the State will be able to provide the required certifications
promptly.
Example No. 6: If a competing provider of telephone exchange service
requests access to serve only business customers--the criteria in
section 245(a)(2)(B) has been met because no request has come from a
competing provider to both residences and businesses.
Example No. 7: If a competing provider has none of its own facilities
and uses the facilities of a cable company exclusively--the criteria in
section 245(a)(2)(B) has been met because there has been no request
from a competing provider with its own facilities.
Mr. BUNNING. Mr. Chairman, I rise today in strong opposition to H.R.
1555, the Communications Act of 1995 and the manager's amendment.
My primary objection to this bill is process. We have waited 60 years
to reform our communications laws. It needs to be done. We need
deregulation.
But, I believe that if we waited 60 years to do it, we could wait
another month, do it right, and work out some of the problems in this
bill instead of ramming it through during the middle of the night.
If we would have gone a little more slowly, I believe that we could
have come to an agreement that the regional Bells and the long distance
companies could agree with. Instead we are passing a bill that I
believe favors the regional Bells a little too much.
This bill makes it too easy for the regional Bells to get into long
distance service and too difficult for cable and long distance
companies to get into local service.
We should not allow the regional Bells into the long distance market
until there is real competition in the local business and residential
markets.
It is not AT&T, MCI, or Sprint that I am worried about. They are big
enough to take care of themselves. I am concerned about the affect this
bill will have on the small long distance companies who have carved
themselves out a nice little niche in the long distance market.
This bill will put a lot of the over 400 small long distance
companies out of business.
I agree that the bill that was originally reported out of committee
probably did give an unfair edge to the long distance companies, but
the pendulum has swung way too far in favor of the regional Bells. If
we wait instead of passing this bill tonight we may be able to find a
solution that is fair to everyone.
My second reason for opposing this bill is the fact that the little
guys--many of the independent phone companies--got lost in the shuffle.
This bill has been a battle of the titans. The baby Bells against AT&T
and MCI.
But the big boys aren't the only players in telecommunications. There
are plenty of smaller companies like Cincinnati Bell which services the
center of my district in northern Kentucky.
This bill is not a deregulatory bill for Cincinnati Bell. It is a
regulations bill. Although Cincinnati Bell has never been considered a
major monopolistic threat to commerce, this bill throws it in with the
big boys and requires them to live with the same regulations as the
RBOC's--one size fits all.
For Cincinnati Bell and over 1,200 independent phone companies around
the country this bill is a step in the wrong direction. It's more
regulation rather than deregulation.
I also believe that this bill deregulates the cable industry much too
quickly. We should not lift the regulations until there is a viable
competitor to the cable companies.
The underlying principles in this bill are right on target. We need
to deregulate telecommunications and increase competition. That will
benefit everyone.
For that reason, I dislike having to vote against H.R. 1555.
But I firmly believe that even though this bill is on the right
track, it is just running at the wrong speed. Let's slow down the train
and do it right.
Mr. OXLEY. Mr. Chairman, I rise to express my firm support for the
Communications Act of 1995 and the floor manager's amendment to it. The
amendment improves the bill in a variety of areas, including some
important refinements regarding foreign ownership.
The amendment clarifies section 303 of the bill giving the Federal
Communications Commission authority to review licenses with 25 percent
or greater foreign ownership, after the initial grant of a license, due
to changed circumstances pertaining to national security or law
enforcement. The Commission is to defer to the recommendations of the
President in such instances.
In addition, I wish to clarify the committee report language on
section 303 concerning how the Commission should determine the home
market of an applicant. It is the committee's intention that in
determining the home market of any applicant, the Commission should use
the citizenship of the applicant--if the applicant is an individual or
partnership--or the country under whose laws a corporate applicant is
organized. Furthermore, it is our intent that in order to prevent
abuse, if a corporation is controlled by entities--including
individuals, other corporations or governments--in another country, the
Commission may look beyond where it is organized to such other country.
These clarifications are intended to protect U.S. interests, enhance
the global competitiveness of American telecommunications firms,
promote free trade, and benefit consumer everywhere. They have the
support of the administration and the ranking members of the Committee
on Commerce, and I ask all members for their support.

[[Page H 8459]]

On separate matter, I am aware that some of my colleagues who are
from rural area, as I am, have concerns regarding the universal service
provisions of H.R. 1555. I want them to know that I will work with them
in conference to assure that rural consumers continue to receive the
telephone service there have traditionally known. I am interested in
working with my colleagues on perfecting the universal service
language.
Mr. BOUCHER. Mr. Chairman, I rise in support of the manger's
amendment and passage of the bill.
The bill is important because it will promote competition in all
telecommunications markets, with attendant benefits for consumers and
for the Nation's economy. The cable television market will be made
fully competitive as telephone companies are given the right to offer
cable television services. The local telephone market will be made
fully competitive as cable companies and others are given the right to
offer local telephone service. The long distance and telecommunications
equipment markets will be made more competitive as the seven Bell
operating companies are free to enter these markets.
Increased competition in all telecommunications markets will provide
long-term consumer benefits. Consumers will see many new services,
lower prices, and greater choices.
The bill will also encourage new investments by telecommunications
companies, building for our Nation the much heralded National
Information Infrastructure. As telephone companies seek to offer cable
television service, they will need to install broadband facilities--
fiber optic or coaxial lines--between their central offices and the
premises of their users. Likewise, if cable companies desire to offer
local telephone and data services, they will need to install switches
to make their current broadband architecture interactive and two-way in
nature. Both industries would then have the capabilities to deliver
simultaneously telephone service, cable TV service, data services, and
many other telecommunications services across their networks. The bill,
therefore, will provide the business reasons for the major investments
which are necessary to complete the National Information
Infrastructure.
The manager's amendment is equally important for promoting
competition in telecommunications markets. It establishes fair terms
and conditions that will assure that the Bell companies open their
local telephone networks before they are permitted to enter into the
long distance and equipment markets. The manger's amendment creates a
careful balance between the competing interests of the local telephone
companies and long distance companies that was lacking in the bill
reported from the Commerce Committee.
I strongly urge adoption of the manager's amendment and passage of
the bill, and I yield to the gentleman from Illinois, Mr. Hastert, for
a colloquy regarding the language he and I have crafted which is
contained in the manager's amendment and which governs the application
of H.R. 1555's interconnection requirements to rural telephone
companies.
Mr. HALL of Texas. Mr. Chairman, I am pleased to join my colleagues
today in debating this important piece of legislation. The
Communications Act of 1995 could easily be the most important
legislation considered in this Congress. A lot of hard work and many
long hours have been spent providing a delicate balance to all the
competing interest in the communication's field. With this legislation,
we need to be certain that we create true competition, without which
the results could be disastrous not only for new market entrants, but
for consumers as well.
There are many fine, small long-distance companies in my district.
These good people are true entrepreneurs and hard workers. As the
manager's amendment stands, I feel that these small businessmen will be
threatened, all they want to do is compete. How are they to compete
against a company that has the advantage of massive resources and a
historical hold on the local market? After much discussion and
compromise, not all sides had everything they wanted, but each side
seemed pleased with what they had.
This is an important step in the modernization of a 60 year old
Communications Act. The time is now, but it must be done in a carefully
balanced approach. I feel the manager's amendment threatens the balance
that was achieved in the bill that was overwhelmingly supported by the
Commerce Committee and that is why I rise in opposition to this
amendment.
The CHAIRMAN. All time for debate on this amendment has expired.
The question is on amendment 1-1 offered by the gentleman from
Virginia [Mr. Bliley].
The question was taken; and the Chairman announced that the ayes
appeared to have it.

recorded vote

Mr. BLILEY. Mr. Chairman, I demand a recorded vote.
A recorded vote was ordered.
The vote was taken by electronic device, and there were--ayes 256,
noes 149, not voting 29, as follows:

[Roll No. 627]

AYES--256

Ackerman
Archer
Armey
Bachus
Baker (LA)
Ballenger
Barcia
Barr
Barrett (NE)
Barrett (WI)
Bartlett
Barton
Bentsen
Berman
Bevill
Bilbray
Bilirakis
Bishop
Bliley
Blute
Boehner
Bonilla
Bonior
Bono
Boucher
Brewster
Browder
Brown (CA)
Brown (FL)
Burr
Burton
Buyer
Callahan
Camp
Cardin
Castle
Chabot
Chambliss
Chenoweth
Christensen
Chrysler
Clay
Clayton
Clinger
Clyburn
Coburn
Coleman
Combest
Cox
Cramer
Crane
Crapo
Cubin
Deal
DeLay
Deutsch
Diaz-Balart
Dickey
Dicks
Dingell
Dixon
Dooley
Doolittle
Dornan
Dreier
Dunn
Durbin
Ehlers
Ehrlich
Emerson
Eshoo
Farr
Fazio
Fields (TX)
Flake
Flanagan
Foley
Ford
Fox
Frank (MA)
Franks (CT)
Frisa
Frost
Funderburk
Gallegly
Ganske
Gekas
Gephardt
Geren
Gilchrest
Gillmor
Goodlatte
Goodling
Goss
Graham
Greenwood
Gunderson
Gutierrez
Gutknecht
Hall (OH)
Hamilton
Hansen
Hastert
Hastings (FL)
Hastings (WA)
Hayworth
Hefner
Hilliard
Hobson
Hoekstra
Hoke
Hostettler
Hoyer
Hunter
Hutchinson
Hyde
Jackson-Lee
Jacobs
Johnson (CT)
Johnson, E.B.
Jones
Kelly
Kennedy (MA)
Kennedy (RI)
Kennelly
Kildee
Kim
King
Kleczka
Klug
Knollenberg
LaHood
LaTourette
Laughlin
Levin
Lewis (CA)
Lewis (GA)
Lewis (KY)
Lightfoot
Lincoln
Linder
Livingston
LoBiondo
Longley
Lowey
Manzullo
Martini
McCrery
McHugh
McInnis
McKeon
McKinney
Meek
Menendez
Metcalf
Mfume
Mica
Miller (CA)
Miller (FL)
Molinari
Mollohan
Montgomery
Moorhead
Myers
Myrick
Nadler
Neal
Nethercutt
Ney
Norwood
Nussle
Olver
Orton
Oxley
Packard
Parker
Pastor
Paxon
Payne (NJ)
Payne (VA)
Pelosi
Peterson (FL)
Peterson (MN)
Pickett
Pombo
Pomeroy
Porter
Portman
Quinn
Radanovich
Rahall
Ramstad
Richardson
Riggs
Roberts
Roemer
Rogers
Rohrabacher
Ros-Lehtinen
Roukema
Roybal-Allard
Royce
Rush
Salmon
Sawyer
Saxton
Schaefer
Schiff
Schroeder
Schumer
Scott
Serrano
Shadegg
Shaw
Shays
Shuster
Sisisky
Skeen
Smith (MI)
Smith (NJ)
Smith (WA)
Solomon
Souder
Stearns
Stockman
Studds
Stump
Talent
Tate
Tauzin
Taylor (MS)
Taylor (NC)
Tejeda
Thompson
Thornberry
Thornton
Tiahrt
Torres
Torricelli
Traficant
Upton
Vucanovich
Waldholtz
Walker
Walsh
Ward
Watt (NC)
Weldon (FL)
Weldon (PA)
Weller
White
Whitfield
Wicker
Wise
Woolsey
Wynn

NOES--149

Abercrombie
Allard
Baesler
Baker (CA)
Baldacci
Bass
Becerra
Beilenson
Bereuter
Boehlert
Borski
Brown (OH)
Brownback
Bryant (TN)
Bryant (TX)
Bunn
Bunning
Calvert
Canady
Chapman
Clement
Coble
Collins (GA)
Collins (IL)
Conyers
Costello
Coyne
Cremeans
Cunningham
Danner
Davis
DeFazio
DeLauro
Dellums
Doggett
Doyle
Duncan
Edwards
Engel
English
Ensign
Evans
Everett
Ewing
Fattah
Fawell
Fields (LA)
Foglietta
Forbes
Fowler
Franks (NJ)
Frelinghuysen
Furse
Gejdenson
Gibbons
Gilman
Gonzalez
Gordon
Green
Hall (TX)
Hancock
Harman
Hefley
Heineman
Hilleary
Hinchey
Holden
Horn
Houghton
Inglis
Istook
Jefferson
Johnson (SD)
Johnson, Sam
Johnston
Kanjorski
Kasich
Kingston
Klink
Kolbe
LaFalce
Lantos
Largent
Latham
Lazio
Leach
Lipinski
Lofgren
Lucas
Luther
Manton
Markey
Martinez
Mascara
Matsui
McCarthy
McCollum
McDermott
McHale
McNulty
Meehan
Meyers
Mineta
Minge
Mink
Moran
Morella
Murtha
Neumann
Oberstar
Obey
Pallone
Petri
Poshard
Pryce
Quillen
Reed
Regula
Rivers
Roth
Sabo
Sanders
Sanford
Seastrand
Sensenbrenner
Skaggs
Skelton
Slaughter
Smith (TX)
Spence
Stark
Stenholm
Stokes
Stupak
Tanner
Thomas
Torkildsen
Velazquez
Vento
Visclosky
Volkmer
Wamp
Waters

[[Page H 8460]]

Watts (OK)
Wolf
Wyden
Yates
Zeliff
Zimmer

NOT VOTING--29

Andrews
Bateman
Collins (MI)
Condit
Cooley
de la Garza
Filner
Hayes
Herger
Kaptur
Maloney
McDade
McIntosh
Moakley
Ortiz
Owens
Rangel
Reynolds
Rose
Scarborough
Spratt
Thurman
Towns
Tucker
Waxman
Williams
Wilson
Young (AK)
Young (FL)

{time} 0910

The Clerk announced the following pair:
On this vote:

Mr. Scarborough for, with Mr. Filner against.

Mr. GILMAN, Mr. STOKES, and Ms. FURSE changed their vote from ``aye''
to ``no.''
Messrs. JONES, KIM, MFUME, BARCIA, HEFNER, and JEFFERSON, Ms.
WOOLSEY, Mrs. KELLY, and Ms. McKINNEY changed their vote from ``no'' to
``aye.''
So the amendment was agreed to.
The result of the vote was announced as above recorded.

____________________