[Congressional Record Volume 141, Number 158 (Thursday, October 12, 1995)]
[House]
[Pages H9954-H10002]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




       TELECOMMICATIONS COMPETITION AND DEREGULATION ACT OF 1995

  Mr. BLILEY. Mr. Speaker, pursuant to section 2 of House Resolution 
207, I call up the Senate bill (S. 652) to provide for a 
procompetitive, deregulatory national policy framework designed to 
accelerate rapidly private sector deployment of advanced 
telecommunications and information technologies and services to all 
Americans by opening all telecommunications markets to competition, and 
for other purposes.
  The Clerk read the title of the Senate bill.
  The text of the Senate bill is as follows:

                                 S. 652

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

     SECTION 1. SHORT TITLE.

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

     SEC. 2. TABLE OF CONTENTS.

       The table of contents for this Act is as follows:

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

                   TITLE I--TRANSITION TO COMPETITION

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

            TITLE II--REMOVAL OF RESTRICTIONS TO COMPETITION

                  Subtitle A--Removal of Restrictions

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

       Subtitle B--Termination of Modification of Final Judgment

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

                    TITLE III--AN END TO REGULATION

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

[[Page H 9955]]

Sec. 311. Provision of payphone service and telemessaging service.
Sec. 312. Direct Broadcast Satellite.

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

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

                 TITLE V--PARENTAL CHOICE IN TELEVISION

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

      TITLE VI--NATIONAL EDUCATION TECHNOLOGY FUNDING CORPORATION

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

                  TITLE VII--MISCELLANEOUS PROVISIONS

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

     SEC. 3. PURPOSE.

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

     SEC. 4. GOALS.

       This Act is intended to establish a national policy 
     framework designed to accelerate rapidly the private sector 
     deployment of advanced telecommunications and information 
     technologies and services to all Americans by opening all 
     telecommunications markets to competition, and to meet the 
     following goals:
       (1) To promote and encourage advanced telecommunications 
     networks, capable of enabling users to originate and receive 
     affordable, high-quality voice, data, image, graphic, and 
     video telecommunications services.
       (2) To improve international competitiveness markedly.
       (3) To spur economic growth, create jobs, and increase 
     productivity.
       (4) To deliver a better quality of life through the 
     preservation and advancement of universal service to allow 
     the more efficient delivery of educational, health care, and 
     other social services.

     SEC. 5. FINDINGS.

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

     SEC. 6. AMENDMENT OF COMMUNICATIONS ACT OF 1934.

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

     SEC. 7. EFFECT ON OTHER LAW.

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

     SEC. 8. DEFINITIONS.

       (a) Terms Used In This Act.--As used in this Act--
       (1) Commission.--The term ``Commission'' means the Federal 
     Communications Commission.
       (2) Modification of final judgment.--The term 
     ``Modification of Final Judgment'' means the decree entered 
     on August 24, 1982, 

[[Page H 9956]]
     in United States v. Western Electric Civil Action No. 82-0192 (United 
     States District Court, District of Columbia), and includes 
     any judgment or order with respect to such action entered on 
     or after August 24, 1982, and before the date of enactment of 
     this Act.
       (3) GTE consent decree.--The term ``GTE Consent Decree'' 
     means the order entered on December 21, 1984, as restated 
     January 11, 1985, in United States v. GTE Corporation, Civil 
     Action No. 83-1298 (United States District Court, District of 
     Columbia), and includes any judgment or order with respect to 
     such action entered on or after January 11, 1985, and before 
     the date of enactment of this Act.
       (4) Integrated telecommunications service provider.--The 
     term ``integrated telecommunications service provider'' means 
     any person engaged in the provision of multiple services, 
     such as voice, data, image, graphics, and video services, 
     which make common use of all or part of the same transmission 
     facilities, switches, signalling, or control devices.
       (b) Terms Used in the Communications Act of 1934.--Section 
     3 (47 U.S.C. 153) is amended by adding at the end thereof the 
     following:
       ``(gg) `Modification of Final Judgment' means the decree 
     entered on August 24, 1982, in United States v. Western 
     Electric Civil Action No. 82-0192 (United States District 
     Court, District of Columbia), and includes any judgment or 
     order with respect to such action entered on or after August 
     24, 1982, and before the date of enactment of the 
     Telecommunications Competition and Deregulation Act of 1995.
       ``(hh) `Bell operating company' means any company listed in 
     appendix A of the Modification of Final Judgment to the 
     extent such company provides telephone exchange service or 
     exchange access service, and includes any successor or assign 
     of any such company, but does not include any affiliate of 
     such company.
       ``(ii) `Affiliate' means a person that (directly or 
     indirectly) owns or controls, is owned or controlled by, or 
     is under common ownership or control with, another person. 
     For purposes of this paragraph, the term `own' means to own 
     an equity interest (or the equivalent thereof) of more than 
     10 percent.
       ``(jj) `Telecommunications Act of 1995' means the 
     Telecommunications Competition and Deregulation Act of 1995.
       ``(kk) `Local exchange carrier' means a provider of 
     telephone exchange service or exchange access service.
       ``(ll) `Telecommunications' means the transmission, between 
     or among points specified by the user, of information of the 
     user's choosing, including voice, data, image, graphics, and 
     video, without change in the form or content of the 
     information, as sent and received, with or without benefit of 
     any closed transmission medium.
       ``(mm) `Telecommunications service' means the offering of 
     telecommunications for a fee directly to the public, or to 
     such classes of users as to be effectively available directly 
     to the public, regardless of the facilities used to transmit 
     the telecommunications service.
       ``(nn) `Telecommunications carrier' means any provider of 
     telecommunications services, except that such term does not 
     include hotels, motels, hospitals, and other aggregators of 
     telecommunications services (as defined in section 226). A 
     telecommunications carrier shall only be treated as a common 
     carrier under this Act to the extent that it is engaged in 
     providing telecommunications services for voice, data, image, 
     graphics, or video that it does not own, control, or select, 
     except that the Commission shall continue to determine 
     whether the provision of fixed and mobile satellite service 
     shall be treated as common carriage.
       ``(oo) `Telecommunications number portability' means the 
     ability of users of telecommunications services to retain, at 
     the same location, existing telecommunications numbers 
     without impairment of quality, reliability, or convenience 
     when switching from one telecommunications carrier to 
     another.
       ``(pp) `Information service' means the offering of services 
     that--
       ``(1) employ computer processing applications that act on 
     the format, content, code, protocol, or similar aspects of 
     the subscriber's transmitted information;
       ``(2) provide the subscriber additional, different, or 
     restructured information; or
       ``(3) involve subscriber interaction with stored 
     information.
       ``(qq) `Cable service' means cable service as defined in 
     section 602.
       ``(rr) `Rural telephone company' means a telecommunications 
     carrier operating entity to the extent that such entity 
     provides telephone exchange service, including access service 
     subject to part 69 of the Commission's rules (47 C.F.R. 69.1 
     et seq.), to--
       ``(1) any service area that does not include either--
       ``(A) any incorporated place of 10,000 inhabitants or more, 
     or any part thereof, based on the most recent population 
     statistics of the Bureau of the Census; or
       ``(B) any territory, incorporated or unincorporated, 
     included in an urbanized area, as defined by the Bureau of 
     the Census as of January 1, 1995; or
       ``(2) fewer than 100,000 access lines within a State.
       ``(ss) `Service area' means a geographic area established 
     by the Commission and the States for the purpose of 
     determining universal service obligations and support 
     mechanisms. In the case of an area served by a rural 
     telephone company, `service area' means such company's `study 
     area' unless and until the Commission and the States, after 
     taking into account recommendations of a Federal-State Joint 
     Board instituted under section 410(c), establish a different 
     definition of service area for such company.
       ``(tt) `LATA' means a local access and transport area as 
     defined in United States v. Western Electric Co., 569 F. 
     Supp. 990 (U. S. District Court, District of Columbia) and 
     subsequent judicial orders relating thereto, except that, 
     with respect to commercial mobile services, the term `LATA' 
     means the geographic areas defined or used by the Commission 
     in issuing licenses for such services: Provided however, That 
     in the case of a Bell operating company cellular affiliate, 
     such geographic area shall be no smaller than the LATA area 
     for such affiliate on the date of enactment of the 
     Telecommunications Act of 1995.''.

                   TITLE I--TRANSITION TO COMPETITION

     SEC. 101. INTERCONNECTION REQUIREMENTS.

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

              ``Part II--Competition in Telecommunications

     ``SEC. 251. INTERCONNECTION.

       ``(a) Duty to Provide Interconnection.--
       ``(1) In general.--A local exchange carrier, or class of 
     local exchange carriers, determined by the Commission to have 
     market power in providing telephone exchange service or 
     exchange access service has a duty under this Act, upon 
     request--
       ``(A) to enter into good faith negotiations with any 
     telecommunications carrier requesting interconnection between 
     the facilities and equipment of the requesting 
     telecommunications carrier and the carrier, or class of 
     carriers, of which the request was made for the purpose of 
     permitting the telecommunications carrier to provide 
     telephone exchange or exchange access service; and
       ``(B) to provide such interconnection, at rates that are 
     reasonable and nondiscriminatory, according to the terms of 
     the agreement and in accordance with the requirements of this 
     section.
       ``(2) Initiation.--A local exchange carrier, or class of 
     carriers, described in paragraph (1) shall commence good 
     faith negotiations to conclude an agreement, whether through 
     negotiation under subsection (c) or arbitration or 
     intervention under subsection (d), within 15 days after 
     receiving a request from any telecommunications carrier 
     seeking to provide telephone exchange or exchange access 
     service. Nothing in this Act shall prohibit multilateral 
     negotiations between or among a local exchange carrier or 
     class of carriers and a telecommunications carrier or class 
     of carriers seeking interconnection under subsection (c) or 
     subsection (d). At the request of any of the parties to a 
     negotiation, a State may participate in the negotiation of 
     any portion of an agreement under subsection (c).
       ``(3) Market power.--For the purpose of determining whether 
     a carrier has market power under paragraph (1), the relevant 
     market shall include all providers of telephone exchange or 
     exchange access services in a local area, regardless of the 
     technology used by any such provider.
       ``(b) Minimum Standards.--An interconnection agreement 
     entered into under this section shall, if requested by a 
     telecommunications carrier requesting interconnection, 
     provide for--
       ``(1) nondiscriminatory access on an unbundled basis to the 
     network functions and services of the local exchange 
     carrier's telecommunications network (including switching 
     software, to the extent defined in implementing regulations 
     by the Commission);
       ``(2) nondiscriminatory access on an unbundled basis to any 
     of the local exchange carrier's telecommunications facilities 
     and information, including databases and signaling, necessary 
     to the transmission and routing of any telephone exchange 
     service or exchange access service and the interoperability 
     of both carriers' networks;
       ``(3) interconnection to the local exchange carrier's 
     telecommunications facilities and services at any technically 
     feasible point within the carrier's network;
       ``(4) interconnection that is at least equal in type, 
     quality, and price (on a per unit basis or otherwise) to that 
     provided by the local exchange carrier to itself or to any 
     subsidiary, affiliate, or any other party to which the 
     carrier provides interconnection;
       ``(5) nondiscriminatory access to the poles, ducts, 
     conduits, and rights-of-way owned or controlled by the local 
     exchange carrier at just and reasonable rates;
       ``(6) the local exchange carrier to take whatever action 
     under its control is necessary, as soon as is technically 
     feasible, to provide telecommunications number portability 
     and local dialing parity in a manner that--
       ``(A) permits consumers to be able to dial the same number 
     of digits when using any telecommunications carrier providing 
     telephone exchange service or exchange access service in the 
     market served by the local exchange carrier;
       ``(B) permits all such carriers to have nondiscriminatory 
     access to telephone numbers, operator services, directory 
     assistance, and directory listing with no unreasonable 
     dialing delays; and

[[Page H 9957]]

       ``(C) provides for a reasonable allocation of costs among 
     the parties to the agreement;
       ``(7) telecommunications services and network functions of 
     the local exchange carrier to be available to the 
     telecommunications carrier on an unbundled basis without any 
     unreasonable conditions on the resale or sharing of those 
     services or functions, including the origination, transport, 
     and termination of such telecommunications services, other 
     than reasonable conditions required by a State; and for 
     purposes of this paragraph, it is not an unreasonable 
     condition for a State to limit the resale--
       ``(A) of services included in the definition of universal 
     service to a telecommunications carrier who resells that 
     service to a category of customers different from the 
     category of customers being offered that universal service by 
     such carrier if the State orders a carrier to provide the 
     same service to different categories of customers at 
     different prices necessary to promote universal service; or
       ``(B) of subsidized universal service in a manner that 
     allows companies to charge another carrier rates which 
     reflect the actual cost of providing those services to that 
     carrier, exclusive of any universal service support received 
     for providing such services in accordance with section 
     214(d)(5);
       ``(8) reciprocal compensation arrangements for the 
     origination and termination of telecommunications;
       ``(9) reasonable public notice of changes in the 
     information necessary for the transmission and routing of 
     services using that local exchange carrier's facilities or 
     networks, as well as of any other changes that would affect 
     the interoperability of those facilities and networks; and
       ``(10) a schedule of itemized charges and conditions for 
     each service, facility, or function provided under the 
     agreement.
       ``(c) Agreements Arrived at Through Negotiation.--Upon 
     receiving a request for interconnection, a local exchange 
     carrier may meet its interconnection obligations under this 
     section by negotiating and entering into a binding agreement 
     with the telecommunications carrier seeking interconnection 
     without regard to the standards set forth in subsection (b). 
     The agreement shall include a schedule of itemized charges 
     for each service, facility, or function included in the 
     agreement. The agreement, including any interconnection 
     agreement negotiated before the date of enactment of the 
     Telecommunications Act of 1995, shall be submitted to the 
     State under subsection (e).
       ``(d) Agreements Arrived at Through Arbitration or 
     Intervention.--
       ``(1) In general.--Any party negotiating an interconnection 
     agreement under this section may, at any point in the 
     negotiation, ask a State to participate in the negotiation 
     and to arbitrate any differences arising in the course of the 
     negotiation. The refusal of any other party to the 
     negotiation to participate further in the negotiations, to 
     cooperate with the State in carrying out its function as a 
     arbitrator, or to continue to negotiate in good faith in the 
     presence, or with the assistance, of the State shall be 
     considered a failure to negotiate in good faith.
       ``(2) Intervention.--If any issues remain open in a 
     negotiation commenced under this section more than 135 days 
     after the date upon which the local exchange carrier received 
     the request for such negotiation, then the carrier or any 
     other party to the negotiation may petition a State to 
     intervene in the negotiations for purposes of resolving any 
     such remaining open issues. Any such request must be made 
     during the 25-day period that begins 135 days after the 
     carrier receives the request for such negotiation and ends 
     160 days after that date.
       ``(3) Duty of petitioner.--
       ``(A) A party that petitions a State under paragraph (2) 
     shall, at the same time as it submits the petition, provide 
     the State all relevant documentation concerning the 
     negotiations necessary to understand--
       ``(i) the unresolved issues;
       ``(ii) the position of each of the parties with respect to 
     those issues; and
       ``(iii) any other issue discussed and resolved by the 
     parties.
       ``(B) A party petitioning a State under paragraph (2) shall 
     provide a copy of the petition and any documentation to the 
     other party not later than the day on which the State 
     receives the petition.
       ``(4) Opportunity to respond.--A party to a negotiation 
     under this section with respect to which the other party has 
     petitioned a State under paragraph (2) may respond to the 
     other party's petition and provide such additional 
     information as it wishes within 25 days after the State 
     receives the petition.
       ``(5) Action by state.--
       ``(A) A State proceeding to consider a petition under this 
     subsection shall be conducted in accordance with the rules 
     promulgated by the Commission under subsection (i). The State 
     shall limit its consideration of any petition under paragraph 
     (2) (and any response thereto) to the issues set forth in the 
     petition and in the response, if any, filed under paragraph 
     (4).
       ``(B) The State may require the petitioning party and the 
     responding party to provide such information as may be 
     necessary for the State to reach a decision on the unresolved 
     issues. If either party refuses or fails unreasonably to 
     respond on a timely basis to any reasonable request from the 
     State, then the State may proceed on the basis of the best 
     information available to it from whatever source derived.
       ``(C) The State shall resolve each issue set forth in the 
     petition and the response, if any, by imposing appropriate 
     conditions upon the parties to the agreement, and shall 
     conduct the review of the agreement (including the issues 
     resolved by the State) not later than 10 months after the 
     date on which the local exchange carrier received the request 
     for interconnection under this section.
       ``(D) In resolving any open issues and imposing conditions 
     upon the parties to the agreement, a State shall ensure that 
     the requirements of this section are met by the solution 
     imposed by the State and are consistent with the Commission's 
     rules defining minimum standards.
       ``(6) Charges.--If the amount charged by a local exchange 
     carrier, or class of local exchange carriers, for an 
     unbundled element of the interconnection provided under 
     subsection (b) is determined by arbitration or intervention 
     under this subsection, then the charge--
       ``(A) shall be
       ``(i) based on the cost (determined without reference to a 
     rate-of-return or other rate-based proceeding) of providing 
     the unbundled element,
       ``(ii) nondiscriminatory, and
       ``(iii) individually priced to the smallest element that is 
     technically feasible and economically reasonable to provide; 
     and
       ``(B) may include a reasonable profit.
       ``(e) Approval by State.--Any interconnection agreement 
     under this section shall be submitted for approval to the 
     State. A State to which an agreement is submitted shall 
     approve or reject the agreement, with written findings as to 
     any deficiencies. The State may only reject--
       ``(1) an agreement under subsection (c) if it finds that 
     the agreement discriminates against a telecommunications 
     carrier not a party to the agreement; and
       ``(2) an agreement under subsection (d) if it finds that--
       ``(A) the agreement does not meet the standards set forth 
     in subsection (b), or
       ``(B) the implementation of the agreement is not in the 
     public interest.

     If the State does not act to approve or reject the agreement 
     within 90 days after receiving the agreement, or 30 days in 
     the case of an agreement negotiated under subsection (c), the 
     agreement shall be deemed approved. No State court shall have 
     jurisdiction to review the action of a State in approving or 
     rejecting an agreement under this section.
       ``(f) Filing Required.--A State shall make a copy of each 
     agreement approved under subsection (e) available for public 
     inspection and copying within 10 days after the agreement is 
     approved. The State may charge a reasonable and 
     nondiscriminatory fee to the parties to the agreement to 
     cover the costs of approving and filing such agreement.
       ``(g) Availability to Other Telecommunications Carriers.--A 
     local exchange carrier shall make available any service, 
     facility, or function provided under an interconnection 
     agreement to which it is a party to any other 
     telecommunications carrier that requests such interconnection 
     upon the same terms and conditions as those provided in the 
     agreement.
       ``(h) Collocation.--A State may require telecommunications 
     carriers to provide for actual collocation of equipment 
     necessary for interconnection at the premises of the carrier 
     at reasonable charges, if the State finds actual collocation 
     to be in the public interest.
       ``(i) Implementation.--
       ``(1) Rules and standards.--The Commission shall promulgate 
     rules to implement the requirements of this section within 6 
     months after the date of enactment of the Telecommunications 
     Act of 1995. In establishing the standards for determining 
     what facilities and information are necessary for purposes of 
     subsection (b)(2), the Commission shall consider, at a 
     minimum, whether--
       ``(A) access to such facilities and information that are 
     proprietary in nature is necessary; and
       ``(B) the failure to provide access to such facilities and 
     information would impair the ability of the 
     telecommunications carrier seeking interconnection to provide 
     the services that it seeks to offer.
       ``(2) Commission to act if state will not act.--If a State, 
     through action or inaction, fails to carry out its 
     responsibility under this section in accordance with the 
     rules prescribed by the Commission under paragraph (1) in any 
     proceeding or other matter under this section, then the 
     Commission shall issue an order preempting the State's 
     jurisdiction of that proceeding or matter within 90 days 
     after being notified (or taking notice) of such failure, and 
     shall assume the responsibility of the State under this 
     section with respect to the proceeding or matter and act for 
     the State.
       ``(3) Waivers and modifications for rural carriers.--The 
     Commission or a State shall, upon petition or on its own 
     initiative, waive or modify the requirements of subsection 
     (b) for a rural telephone company or companies, and may waive 
     or modify the requirements of subsection (b) for local 
     exchange carriers with fewer than 2 percent of the Nation's 
     subscriber lines installed in the aggregate nationwide, to 
     the extent that the Commission or a State determines that 
     such requirements would result in unfair competition, impose 
     a significant adverse economic impact on users of 
     telecommunications services, be technically infeasible, or 
     otherwise not be in the public interest. The Commission or a 
     State shall act upon any petition 

[[Page H 9958]]
     filed under this paragraph within 180 days of receiving such petition. 
     Pending such action, the Commission or a State may suspend 
     enforcement of the requirement or requirements to which the 
     petition applies with respect to the petitioning carrier or 
     carriers.
       ``(j) State Requirements.--Nothing in this section 
     precludes a State from imposing requirements on a 
     telecommunications carrier for intrastate services that are 
     necessary to further competition in the provision of 
     telephone exchange service or exchange access service, as 
     long as the State's requirements are not inconsistent with 
     the Commission's regulations to implement this section.
       ``(k) Access Charge Rules.--Nothing in this section shall 
     affect the Commission's interexchange-to-local exchange 
     access charge rules for local exchange carriers or 
     interexchange carriers in effect on the date of enactment of 
     the Telecommunications Act of 1995.
       ``(l) Review of Interconnection Standards.--Beginning 3 
     years after the date of enactment of the Telecommunications 
     Act of 1995 and every 3 years thereafter, the Commission 
     shall review the standards and requirements for 
     interconnection established under subsection (b). The 
     Commission shall complete each such review within 180 days 
     and may modify or waive any requirements or standards 
     established under subsection (b) if it determines that the 
     modification or waiver meets the requirements of section 260.
       ``(m) Commercial Mobile Service Providers.--The 
     requirements of this section shall not apply to commercial 
     mobile services provided by a wireline local exchange carrier 
     unless the Commission determines under subsection (a)(3) that 
     such carrier has market power in the provision of commercial 
     mobile service.''.
       (c) Technical Amendments.--
       (1) Title II (47 U.S.C. 201 et seq.) is amended by 
     inserting before section 201 the following:

                    ``Part I--General Provisions''.

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

     SEC. 102. SEPARATE AFFILIATE AND SAFEGUARD REQUIREMENTS.

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

     ``SEC. 252. SEPARATE AFFILIATE; SAFEGUARDS.

       ``(a) Separate Affiliate Required For Competitive 
     Activities.--
       ``(1) In general.--A Bell operating company (including any 
     affiliate) which is a local exchange carrier that is subject 
     to the requirements of section 251(a) may not provide any 
     service described in paragraph (2) unless it provides that 
     service through one or more affiliates that--
       ``(A) are separate from any operating company entity that 
     is subject to the requirements of section 251(a); and
       ``(B) meet the requirements of subsection (b).
       ``(2) Services for which a separate affiliate is 
     required.--The services for which a separate affiliate is 
     required by paragraph (1) are:
       ``(A) Information services, including cable services and 
     alarm monitoring services, other than any information service 
     a Bell operating company was authorized to provide before 
     July 24, 1991.
       ``(B) Manufacturing services.
       ``(C) InterLATA services other than--
       ``(i) incidental services, not including information 
     services;
       ``(ii) out-of-region services; or
       ``(iii) services authorized under an order entered by the 
     United States District Court for the District of Columbia 
     pursuant to the Modification of Final Judgment before the 
     date of enactment of the Telecommunications Act of 1995.
       ``(b) Structural and Transactional Requirements.--The 
     separate affiliate required by this section--
       ``(1) shall maintain books, records, and accounts in the 
     manner prescribed by the Commission which shall be separate 
     from the books, records, and accounts maintained by the Bell 
     operating company of which it is an affiliate;
       ``(2) shall have separate officers, directors, and 
     employees from the Bell operating company of which it is an 
     affiliate;
       ``(3) may not obtain credit under any arrangement that 
     would permit a creditor, upon default, to have recourse to 
     the assets of the Bell operating company; and
       ``(4) shall conduct all transactions with the Bell 
     operating company of which it is an affiliate on an arm's 
     length basis with any such transactions reduced to writing 
     and available for public inspection.
       ``(c) Nondiscrimination Safeguards.--In its dealings with 
     its affiliate described in subsection (a) a Bell operating 
     company--
       ``(1) may not discriminate between that company or 
     affiliate and any other entity in the provision or 
     procurement of goods, services, facilities, and information, 
     or in the establishment of standards;
       ``(2) may not provide any goods, services, facilities, or 
     information to such company or affiliate unless the goods, 
     services, facilities, or information are made available to 
     other persons on reasonable and nondiscriminatory terms and 
     conditions, unbundled to the smallest element that is 
     technically feasible and economically reasonable to provide, 
     and at just and reasonable rates that are not higher on a 
     per-unit basis than those charged for such services to any 
     affiliate of such company; and
       ``(3) shall account for all transactions with an affiliate 
     described in subsection (a) in accordance with generally 
     accepted accounting principles.
       ``(d) Biennial Audit.--
       ``(1) General requirement.--A company required to operate a 
     separate affiliate under this section shall obtain and pay 
     for a joint Federal/State audit every 2 years conducted by an 
     independent auditor selected by the Commission, and working 
     at the direction of, the Commission and the State commission 
     of each State in which such company provides service, to 
     determine whether such company has complied with this section 
     and the regulations promulgated under this section, and 
     particularly whether such company has complied with the 
     separate accounting requirements under subsection (b).
       ``(2) Results submitted to commission; state commissions.--
     The auditor described in paragraph (1) shall submit the 
     results of the audit to the Commission and to the State 
     commission of each State in which the company audited 
     provides service, which shall make such results available for 
     public inspection. Any party may submit comments on the final 
     audit report.
       ``(3) Access to documents.--For purposes of conducting 
     audits and reviews under this subsection--
       ``(A) the independent auditor, the Commission, and the 
     State commission shall have access to the financial accounts 
     and records of each company and of its affiliates necessary 
     to verify transactions conducted with that company that are 
     relevant to the specific activities permitted under this 
     section and that are necessary for the regulation of rates;
       ``(B) the Commission and the State commission shall have 
     access to the working papers and supporting materials of any 
     auditor who performs an audit under this section; and
       ``(C) the State commission shall implement appropriate 
     procedures to ensure the protection of any proprietary 
     information submitted to it under this section.
       ``(e) Joint Marketing.--
       ``(1) A Bell operating company affiliate required by this 
     section may not market or sell telephone exchange services 
     provided by the Bell operating company unless that company 
     permits other entities offering the same or similar service 
     to market and sell its telephone exchange services.
       ``(2) A Bell operating company may not market or sell any 
     service provided by an affiliate required by this section 
     until that company has been authorized to provide interLATA 
     services under section 255.
       ``(3) The joint marketing and sale of services permitted 
     under this subsection shall not be considered to violate the 
     nondiscrimination provisions of subsection (c).
       ``(f) Additional Requirements for Provision of InterLATA 
     Services.--A Bell operating company--
       ``(1) shall fulfill any requests from an unaffiliated 
     entity for exchange access service within a period no longer 
     than that in which it provides such exchange access service 
     to itself or to its affiliates;
       ``(2) shall fulfill any such requests with exchange access 
     service of a quality that meets or exceeds the quality of 
     exchange access service provided by the Bell operating 
     company to itself or its affiliate;
       ``(3) shall provide exchange access service to all carriers 
     at rates that are just, reasonable, not unreasonably 
     discriminatory, and based on costs;
       ``(4) shall not provide any facilities, services, or 
     information concerning its provision of exchange access 
     service to the affiliate described in subsection (a) unless 
     such facilities, services, or information are made available 
     to other providers of interLATA services in that market on 
     the same terms and conditions;
       ``(5) shall charge the affiliate described in subsection 
     (a), and impute to itself or any intraLATA interexchange 
     affiliate, the same rates for access to its telephone 
     exchange service and exchange access service that it charges 
     unaffiliated interexchange carriers for such service; and
       ``(6) may provide any interLATA or intraLATA facilities or 
     services to its interLATA affiliate if such services or 
     facilities are made available to all carriers at the same 
     rates and on the same terms and conditions so long as the 
     costs are appropriately allocated.
       ``(g) Proprietary Information.--
       ``(1) In general.--In complying with the requirements of 
     this section, each Bell operating company and any affiliate 
     of such company has a duty to protect the confidentiality of 
     propriety information relating to other common carriers, to 
     equipment manufacturers, and to customers. A Bell operating 
     company may not share customer proprietary information in 
     aggregate form with its affiliates unless such aggregate 
     information is available to other carriers or persons under 
     the same terms and conditions. Individually identifiable 
     customer proprietary information and other proprietary 
     information may be--
       ``(A) shared with any affiliated entity required by this 
     section or with any unaffiliated entity only with the consent 
     of the person to which such information relates or from which 
     it was obtained (including other carriers); or 

[[Page H 9959]]

       ``(B) disclosed to appropriate authorities pursuant to 
     court order.
       ``(2) Exceptions.--Paragraph (1) does not limit the 
     disclosure of individually identifiable customer proprietary 
     information by each Bell operating company as necessary--
       ``(A) to initiate, render, bill, and collect for telephone 
     exchange service, interexchange service, or 
     telecommunications service requested by a customer; or
       ``(B) to protect the rights or property of the carrier, or 
     to protect users of any of those services and other carriers 
     from fraudulent, abusive, or unlawful use of, or subscription 
     to, any such service.
       ``(3) Subscriber list information.--For purposes of this 
     subsection, the term `customer proprietary information' does 
     not include subscriber list information.
       ``(h) Commission May Grant Exceptions.--The Commission may 
     grant an exception from compliance with any requirement of 
     this section upon a showing that the exception is necessary 
     for the public interest, convenience, and necessity.
       ``(i) Application to Utility Companies.--
       ``(1) Registered public utility holding company.--A 
     registered company may provide telecommunications services 
     only through a separate subsidiary company that is not a 
     public utility company.
       ``(2) Other utility companies.--Each State shall determine 
     whether a holding company subject to its jurisdiction--
       ``(A) that is not a registered holding company, and
       ``(B) that provides telecommunications service,

     is required to provide that service through a separate 
     subsidiary company.
       ``(3) Savings provision.--Nothing in this subsection or the 
     Telecommunications Act of 1995 prohibits a public utility 
     company from engaging in any activity in which it is legally 
     engaged on the date of enactment of the Telecommunications 
     Act of 1995; provided it complies with the terms of any 
     applicable authorizations.
       ``(4) Definitions.--For purposes of this subsection, the 
     terms `public utility company', `associate company', `holding 
     company', `subsidiary company', `registered holding company', 
     and `State commission' have the same meaning as they have in 
     section 2 of the Public Utility Holding Company Act of 
     1935.''.
       (b) Implementation.--The Commission shall promulgate any 
     regulations necessary to implement section 252 of the 
     Communications Act of 1934 (as added by subsection (a)) not 
     later than one year after the date of enactment of this Act. 
     Any separate affiliate established or designated for purposes 
     of section 252(a) of the Communications Act of 1934 before 
     the regulations have been issued in final form shall be 
     restructured or otherwise modified, if necessary, to meet the 
     requirements of those regulations.
       (c) Effective Date.--The amendment made by subsection (a) 
     shall take effect on the date of enactment of this Act.

     SEC. 103. UNIVERSAL SERVICE.

       (a) Findings.--The Congress finds that--
       (1) the existing system of universal service has evolved 
     since 1930 through an ongoing dialogue between industry, 
     various Federal-State Joint Boards, the Commission, and the 
     courts;
       (2) this system has been predicated on rates established by 
     the Commission and the States that require implicit cost 
     shifting by monopoly providers of telephone exchange service 
     through both local rates and access charges to interexchange 
     carriers;
       (3) the advent of competition for the provision of 
     telephone exchange service has led to industry requests that 
     the existing system be modified to make support for universal 
     service explicit and to require that all telecommunications 
     carriers participate in the modified system on a 
     competitively neutral basis; and
       (4) modification of the existing system is necessary to 
     promote competition in the provision of telecommunications 
     services and to allow competition and new technologies to 
     reduce the need for universal service support mechanisms.
       (b) Federal-State Joint Board on Universal Service.--
       (1) Within one month after the date of enactment of this 
     Act, the Commission shall institute and refer to a Federal-
     State Joint Board under section 410(c) of the Communications 
     Act of 1934 a proceeding to recommend rules regarding the 
     implementation of section 253 of that Act, including the 
     definition of universal service. The Joint Board shall, after 
     notice and public comment, make its recommendations to the 
     Commission no later than 9 months after the date of enactment 
     of this Act.
       (2) The Commission may periodically, but no less than once 
     every 4 years, institute and refer to the Joint Board a 
     proceeding to review the implementation of section 253 of 
     that Act and to make new recommendations, as necessary, with 
     respect to any modifications or additions that may be needed. 
     As part of any such proceeding the Joint Board shall review 
     the definition of, and adequacy of support for, universal 
     service and shall evaluate the extent to which universal 
     service has been protected and advanced.
       (c) Commission Action.--The Commission shall initiate a 
     single proceeding to implement recommendations from the 
     initial Joint Board required by subsection (a) and shall 
     complete such proceeding within 1 year after the date of 
     enactment of this Act. Thereafter, the Commission shall 
     complete any proceeding to implement recommendations from any 
     further Joint Board required under subsection (b) within one 
     year after receiving such recommendations.
       (d) Separations Rules.--Nothing in the amendments made by 
     this Act to the Communications Act of 1934 shall affect the 
     Commission's separations rules for local exchange carriers or 
     interexchange carriers in effect on the date of enactment of 
     this Act.
       (e) Amendment of Communications Act.--Part II of title II 
     (47 U.S.C. 251 et seq.), as added by this Act, is amended by 
     inserting after section 252 the following new section:

     ``SEC. 253. UNIVERSAL SERVICE.

       ``(a) Universal Service Principles.--The Joint Board and 
     the Commission shall base policies for the preservation and 
     advancement of universal service on the following principles:
       ``(1) Quality services are to be provided at just, 
     reasonable, and affordable rates.
       ``(2) Access to advanced telecommunications and information 
     services should be provided in all regions of the Nation.
       ``(3) Consumers in rural and high cost areas should have 
     access to telecommunications and information services, 
     including interexchange services, that are reasonably 
     comparable to those services provided in urban areas.
       ``(4) Consumers in rural and high cost areas should have 
     access to telecommunications and information services at 
     rates that are reasonably comparable to rates charged for 
     similar services in urban areas.
       ``(5) Consumers in rural and high cost areas should have 
     access to the benefits of advanced telecommunications and 
     information services for health care, education, economic 
     development, and other public purposes.
       ``(6) There should be a coordinated Federal-State universal 
     service system to preserve and advance universal service 
     using specific and predictable Federal and State mechanisms 
     administered by an independent, non-governmental entity or 
     entities.
       ``(7) Elementary and secondary schools and classrooms 
     should have access to advanced telecommunications services.
       ``(b) Definition.--
       ``(1) In general.--Universal service is an evolving level 
     of intrastate and interstate telecommunications services that 
     the Commission, based on recommendations from the public, 
     Congress, and the Federal-State Joint Board periodically 
     convened under section 103 of the Telecommunications Act of 
     1995, and taking into account advances in telecommunications 
     and information technologies and services, determines--
       ``(A) should be provided at just, reasonable, and 
     affordable rates to all Americans, including those in rural 
     and high cost areas and those with disabilities;
       ``(B) are essential in order for Americans to participate 
     effectively in the economic, academic, medical, and 
     democratic processes of the Nation; and
       ``(C) are, through the operation of market choices, 
     subscribed to by a substantial majority of residential 
     customers.
       ``(2) Different definition for certain purposes.--The 
     Commission may establish a different definition of universal 
     service for schools, libraries, and health care providers for 
     the purposes of section 264.
       ``(c) All Telecommunications Carriers Must Participate.--
     Every telecommunications carrier engaged in instrastate, 
     interstate, or foreign communication shall participate, on an 
     equitable and nondiscriminatory basis, in the specific and 
     predictable mechanisms established by the Commission and the 
     States to preserve and advance universal service. Such 
     participation shall be in the manner determined by the 
     Commission and the States to be reasonably necessary to 
     preserve and advance universal service. Any other provider of 
     telecommunications may be required to participate in the 
     preservation and advancement of universal service, if the 
     public interest so requires.
       ``(d) State Authority.--A State may adopt regulations to 
     carry out its responsibilities under this section, or to 
     provide for additional definitions, mechanisms, and standards 
     to preserve and advance universal service within that State, 
     to the extent that such regulations do not conflict with the 
     Commission's rules to implement this section. A State may 
     only enforce additional definitions or standards to the 
     extent that it adopts additional specific and predictable 
     mechanisms to support such definitions or standards.
       ``(e) Eligibility for Universal Service Support.--To the 
     extent necessary to provide for specific and predictable 
     mechanisms to achieve the purposes of this section, the 
     Commission shall modify its existing rules for the 
     preservation and advancement of universal service. Only 
     essential telecommunications carriers designated under 
     section 214(d) shall be eligible to receive support for the 
     provision of universal service. Such support, if any, shall 
     accurately reflect what is necessary to preserve and advance 
     universal service in accordance with this section and the 
     other requirements of this Act.
       ``(f) Universal Service Support.--The Commission and the 
     States shall have as their goal the need to make any support 
     for universal service explicit, and to target that support to 
     those essential telecommunications carriers that serve areas 
     for which such support is necessary. The specific and 
     predictable mechanisms adopted by the Commission and the 
     States shall ensure that essential telecommunications 
     carriers are able 

[[Page H 9960]]
     to provide universal service at just, reasonable, and affordable rates. 
     A carrier that receives universal service support shall use 
     that support only for the provision, maintenance, and 
     upgrading of facilities and services for which the support is 
     intended.
       ``(g) Interexchange Services.--The rates charged by any 
     provider of interexchange telecommunications service to 
     customers in rural and high cost areas shall be no higher 
     than those charged by such provider to its customers in urban 
     areas.
       ``(h) Subsidy of Competitive Services Prohibited.--A 
     telecommunications carrier may not use services that are not 
     competitive to subsidize competitive services. The 
     Commission, with respect to interstate services, and the 
     States, with respect to intrastate services, shall establish 
     any necessary cost allocation rules, accounting safeguards, 
     and guidelines to ensure that services included in the 
     definition of universal service bear no more than a 
     reasonable share of the joint and common costs of facilities 
     used to provide those services.
       ``(i) Congressional Notification Required.--
       ``(1) In general.--The Commission may not take action to 
     require participation by telecommunications carriers or other 
     providers of telecommunications under subsection (c), or to 
     modify its rules to increase support for the preservation and 
     advancement of universal service, until--
       ``(A) the Commission submits to the Committee on Commerce, 
     Science, and Transportation of the Senate and the Committee 
     on Commerce of the House of Representatives a report on the 
     participation required, or the increase in support proposed, 
     as appropriate; and
       ``(B) a period of 120 days has elapsed since the date the 
     report required under paragraph (1) was submitted.
       ``(2) Not applicable to reductions.--This subsection shall 
     not apply to any action taken to reduce costs to carriers or 
     consumers.
       ``(j) Effect on Commission's Authority.--Nothing in this 
     section shall be construed to expand or limit the authority 
     of the Commission to preserve and advance universal service 
     under this Act.
       ``(k) Effective Date.--This section takes effect on the 
     date of enactment of the Telecommunications Act of 1995, 
     except for subsections (c), (d), (e), (f), and (i) which take 
     effect one year after the date of enactment of that Act.''.
       (f) Prohibition on Exclusion of Areas from Service Based on 
     Rural Location, High Costs, or Income.--Part II of title II 
     (47 U.S.C. 201 et seq.) as amended by this Act, is amended by 
     adding after section 253 the following:

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

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

     SEC. 104. ESSENTIAL TELECOMMUNICATIONS CARRIERS.

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

[[Page H 9961]]

       (b) Conforming Amendment.--The heading for section 214 is 
     amended by inserting a semicolon and ``essential 
     telecommunications carriers'' after ``lines''.
       (c) Transition Rule.--A rural telephone company is eligible 
     to receive universal service support payments under section 
     253(e) of the Communications Act of 1934 as if such company 
     were an essential telecommunications carrier until such time 
     as the Commission, with respect to interstate services, or a 
     State, with respect to intrastate services, designates an 
     essential telecommunications carrier or carriers for the area 
     served by such company under section 214 of that Act.

     SEC. 105. FOREIGN INVESTMENT AND OWNERSHIP REFORM.

       (a) In General.--Section 310 (47 U.S.C. 310) is amended by 
     adding at the end thereof the following new subsection:
       ``(f) Termination of Foreign Ownership Restrictions.--
       ``(1) Restriction not to apply where reciprocity found.--
     Subsection (b) shall not apply to any common carrier license 
     held, or for which application is made, after the date of 
     enactment of the Telecommunications Act of 1995 with respect 
     to any alien (or representative thereof), corporation, or 
     foreign government (or representative thereof) if the 
     Commission determines that the foreign country of which such 
     alien is a citizen, in which such corporation is organized, 
     or in which such foreign government is in control provides 
     equivalent market opportunities for common carriers to 
     citizens of the United States (or their representatives), 
     corporations organized in the United States, and the United 
     States Government (or its representative): Provided, That the 
     President does not object within 15 days of such 
     determination. If the President objects to a determination, 
     the President shall, immediately upon such objection, submit 
     to Congress a written report (in unclassified form, but with 
     a classified annex if necessary) that sets forth a detailed 
     explanation of the findings made and factors considered in 
     objecting to the determination. The determination of whether 
     market opportunities are equivalent shall be made on a market 
     segment specific basis within 180 days after the application 
     is filed. While determining whether such opportunities are 
     equivalent on that basis, the Commission shall also conduct 
     an evaluation of opportunities for access to all segments of 
     the telecommunications market of the applicant.
       ``(2) Snapback for reciprocity failure.--If the Commission 
     determines that any foreign country with respect to which it 
     has made a determination under paragraph (1) ceases to meet 
     the requirements for that determination, then--
       ``(A) subsection (b) shall apply with respect to such 
     aliens, corporations, and government (or their 
     representatives) on the date on which the Commission 
     publishes notice of its determination under this paragraph, 
     and
       ``(B) any license held, or application filed, which could 
     not be held or granted under subsection (b) shall be 
     withdrawn, or denied, as the case may be, by the Commission 
     under the provisions of subsection (b).''.
       (b) Conforming Amendment.--Section 332(c)(6) (47 U.S.C. 
     332(c)(6)) is amended by adding at the end thereof the 
     following:

     ``This paragraph does not apply to any foreign ownership 
     interest or transfer of ownership to which section 310(b) 
     does not apply because of section 310(f).''.
       (c) The Application of the Exon-Florio Law.--Nothing in 
     this section (47 U.S.C. 310) shall limit in any way the 
     application of the Exon-Florio law (50 U.S.C. App. 2170) to 
     any transaction.

     SEC. 106. INFRASTRUCTURE SHARING.

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

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

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

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

            TITLE II--REMOVAL OF RESTRICTIONS TO COMPETITION

                  Subtitle A--Removal of Restrictions

     SEC. 201. REMOVAL OF ENTRY BARRIERS.

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

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

       ``(a) In General.--No State or local statute or regulation, 
     or other State or local legal requirement, may prohibit or 
     have the effect of prohibiting the ability of any entity to 
     provide any interstate or intrastate telecommunications 
     services.
       ``(b) State Regulatory Authority.--Nothing in this section 
     shall affect the ability of a State to impose, on a 
     competitively neutral basis and consistent with section 253, 
     requirements necessary to preserve and advance universal 
     service, protect the public safety and welfare, ensure the 
     continued quality of telecommunications services, and 
     safeguard the rights of consumers.
       ``(c) State and Local Government Authority.--Nothing in 
     this section affects the authority of a State or local 
     government to manage the public rights-of-way or to require 
     fair and reasonable compensation from telecommunications 
     providers, on a competitively neutral and nondiscriminatory 
     basis, for use of public rights-of-way on a nondiscriminatory 
     basis, if the compensation required is publicly disclosed by 
     such government.

[[Page H 9962]]

       ``(d) Preemption.--If, after notice and an opportunity for 
     public comment, the Commission determines that a State or 
     local government has permitted or imposed any statute, 
     regulation, or legal requirement that violates subsection (a) 
     or (b), the Commission shall preempt the enforcement of such 
     statute, regulation, or legal requirement to the extent 
     necessary to correct such violation or inconsistency.
       ``(e) Commercial mobile services providers.--Nothing in 
     this section shall affect the application of section 
     332(c)(3) to commercial mobile services providers.''.
       (b) Provision of Telecommunications Services by a Cable 
     Operator.--
       (1) Jurisdiction of franchising authority.--Section 621(b) 
     (47 U.S.C. 541(b)) is amended by adding at the end thereof 
     the following new paragraph:
       ``(3)(A) To the extent that a cable operator or affiliate 
     thereof is engaged in the provision of telecommunications 
     services--
       ``(i) such cable operator or affiliate shall not be 
     required to obtain a franchise under this title for the 
     provision of telecommunications services; and
       ``(ii) the provisions of this title shall not apply to such 
     cable operator or affiliate for the provision of 
     telecommunications services.
       ``(B) A franchising authority may not order a cable 
     operator or affiliate thereof to discontinue the provision of 
     a telecommunications service.
       ``(C) A franchising authority may not require a cable 
     operator to provide any telecommunications service or 
     facilities as a condition of the initial grant of a 
     franchise, franchise renewal, or transfer of a franchise.
       ``(D) Nothing in this paragraph affects existing Federal or 
     State authority with respect to telecommunications 
     services.''.
       (2) Franchise fees.--Section 622(b) (47 U.S.C. 542(b)) is 
     amended by inserting ``to provide cable services'' 
     immediately before the period at the end of the first 
     sentence.
       (c) State and Local Tax Laws.--Except as provided in 
     section 202, nothing in this Act (or in the Communications 
     Act of 1934 as amended by this Act) shall be construed to 
     modify, impair, or supersede, or authorize the modification, 
     impairment, or supersession of, any State or local law 
     pertaining to taxation that is consistent with the 
     requirements of the Constitution of the United States, this 
     Act, the Communications Act of 1934, or any other applicable 
     Federal law.
       (d) Effective Date.--The amendments made by this section 
     take effect on the date of enactment of this Act.

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

       (a) In General.--Section 613(b) (47 U.S.C. 533(b)) is 
     amended to read as follows:
       ``(b) Video Programming and Cable Services.--
       ``(1) Distinction between video platform and cable 
     service.--To the extent that any telecommunications carrier 
     carries video programming provided by others, or provides 
     video programming that it owns, controls, or selects directly 
     to subscribers, through a common carrier video platform, 
     neither the telecommunications carrier nor any video 
     programming provider making use of such platform shall be 
     deemed to be a cable operator providing cable service. To the 
     extent that any telecommunications carrier provides video 
     programming directly to subscribers through a cable system, 
     the carrier shall be deemed to be a cable operator providing 
     cable service.
       ``(2) Bell operating company activities.--
       ``(A) Notwithstanding the provisions of section 252, to the 
     extent that a Bell operating company carries video 
     programming provided by others or provides video programming 
     that it owns, controls, or selects over a common carrier 
     video platform, it need not use a separate affiliate if--
       ``(i) the carrier provides facilities, services, or 
     information to all programmers on the same terms and 
     conditions as it provides such facilities, services, or 
     information to its own video programming operations, and
       ``(ii) the carrier does not use its telecommunications 
     services to subsidize its provision of video programming.
       ``(B) To the extent that a Bell operating company provides 
     cable service as a cable operator, it shall provide such 
     service through an affiliate that meets the requirements of 
     section 252 (a), (b), and (d) and the Bell operating 
     company's telephone exchange services and exchange access 
     services shall meet the requirements of subparagraph (A)(ii) 
     and section 252(c); except that, to the extent the Bell 
     operating company provides cable service utilizing its own 
     telephone exchange facilities, section 252(c) shall not 
     require the Bell operating company to make video programming 
     services capacity available on a non-discriminatory basis to 
     other video programming services providers.
       ``(C) Upon a finding by the Commission that the requirement 
     of a separate affiliate under the preceding subparagraph is 
     no longer necessary to protect consumers, competition, or the 
     public interest, the Commission shall exempt a Bell operating 
     company from that requirement.
       ``(3) Common carrier video platform.--Nothing in this Act 
     precludes a telecommunications carrier from carrying video 
     programming provided by others directly to subscribers over a 
     common carrier video platform. Nothing in this Act precludes 
     a video programming provider making use of a common carrier 
     video platform from being treated as an operator of a cable 
     system for purposes of section 111 of title 17, United States 
     Code.
       ``(4) Rates; access.--Notwithstanding paragraph (2)(A)(i), 
     a provider of common carrier video platform services shall 
     provide local broadcast stations, and to those public, 
     educational, and governmental entities required by local 
     franchise authorities to be given access to cable systems 
     operating in the same market as the common carrier video 
     platform, with access to that platform for the transmission 
     of television broadcast programming at rates no higher than 
     the incremental-cost-based rates of providing such access. 
     Local broadcast stations shall be entitled to obtain access 
     on the first tier of programming on the common carrier video 
     platform. If the area covered by the common carrier video 
     platform includes more than one franchising area, then the 
     Commission shall determine the number of channels allocated 
     to public, educational, and governmental entities that may be 
     eligible for such rates for that platform.
       ``(5) Competitive neutrality.--A provider of video 
     programming may be required to pay fees in lieu of franchise 
     fees (as defined in section 622(g)(1)) if the fees--
       ``(A) are competitively neutral; and
       ``(B) are separately identified in consumer billing.
       ``(6) Acquisitions; joint ventures; partnerships; joint use 
     of facilities.--
       ``(A) Local exchange carriers.--No local exchange carrier 
     or any affiliate of such carrier owned by, operated by, 
     controlled by, or under common control with such carrier may 
     purchase or otherwise acquire more than a 10 percent 
     financial interest, or any management interest, in any cable 
     operator providing cable service within the local exchange 
     carrier's telephone service area.
       ``(B) Cable operators.--No cable operator or affiliate of a 
     cable operator that is owned by, operated by, controlled by, 
     or under common ownership with such cable operator may 
     purchase or otherwise acquire, directly or indirectly, more 
     than a 10 percent financial interest, or any management 
     interest, in any local exchange carrier providing telephone 
     exchange service within such cable operator's franchise area.
       ``(C) Joint Venture.--A local exchange carrier and a cable 
     operator whose telephone service area and cable franchise 
     area, respectively, are in the same market may not enter into 
     any joint venture or partnership to provide video programming 
     directly to subscribers or to provide telecommunications 
     services within such market.
       ``(D) Exception.--Notwithstanding subparagraphs (A), (B), 
     and (C) of this paragraph, a local exchange carrier (with 
     respect to a cable system located in its telephone service 
     area) and a cable operator (with respect to the facilities of 
     a local exchange carrier used to provide telephone exchange 
     service in its cable franchise area) may obtain a controlling 
     interest in, management interest in, or enter into a joint 
     venture or partnership with such system or facilities to the 
     extent that such system or facilities only serve incorporated 
     or unincorporated--
       ``(i) places or territories that have fewer than 50,000 
     inhabitants; and
       ``(ii) are outside an urbanized area, as defined by the 
     Bureau of the Census.
       ``(E) Waiver.--The Commission may waive the restrictions of 
     subparagraph (A), (B), or (C) only if the Commission 
     determines that, because of the nature of the market served 
     by the affected cable system or facilities used to provide 
     telephone exchange service--
       ``(i) the incumbent cable operator or local exchange 
     carrier would be subjected to undue economic distress by the 
     enforcement of such provisions,
       ``(ii) the system or facilities would not be economically 
     viable if such provisions were enforced, or
       ``(iii) the anticompetitive effects of the proposed 
     transaction are clearly outweighed in the public interest by 
     the probable effect of the transaction in meeting the 
     convenience and needs of the community to be served.
       ``(F) Joint use.--Notwithstanding subparagraphs (A), (B), 
     and (C), a telecommunications carrier may obtain within such 
     carrier's telephone service area, with the concurrence of the 
     cable operator on the rates, terms, and conditions, the use 
     of that portion of the transmission facilities of such a 
     cable system extending from the last multiuser terminal to 
     the premises of the end user in excess of the capacity that 
     the cable operator uses to provide its own cable services. A 
     cable operator that provides access to such portion of its 
     transmission facilities to one telecommunications carrier 
     shall provide nondiscriminatory access to such portion of its 
     transmission facilities to any other telecommunications 
     carrier requesting such access.
       ``(G) Savings clause.--Nothing in this paragraph affects--
       ``(i) the authority of a local franchising authority (in 
     the case of the purchase or acquisition of a cable operator, 
     or a joint venture to provide cable service) or a State 
     Commission (in the case of the acquisition of a local 
     exchange carrier, or a joint venture to provide telephone 
     exchange service) to approve or disapprove a purchase, 
     acquisition, or joint venture, or
       ``(ii) the antitrust laws, as described in section 7(a) of 
     the Telecommunications Competition and Deregulation Act of 
     1995.''.
       (b) No Permit Required for Video Programming Services.--
     Section 214 (47 U.S.C. 

[[Page H 9963]]
     214) is amended by adding at the end thereof the following:
       ``(e) Special Rule.--No certificate is required under this 
     section for a carrier to construct facilities to provide 
     video programming services.''.
       (c) Safeguards.--Within one year after the date of 
     enactment of this Act, the Commission shall prescribe 
     regulations that--
       (1) require a telecommunications carrier that provides 
     video programming directly to subscribers to ensure that 
     subscribers are offered the means to obtain access to the 
     signals of local broadcast television stations identified 
     under section 614 as readily as they are today;
       (2) require such a carrier to display clearly and 
     prominently at the beginning of any program guide or menu of 
     program offerings the identity of any signal of any 
     television broadcast station that is carried by the carrier;
       (3) require such a carrier to ensure that viewers are able 
     to access the signal of any television broadcast station that 
     is carried by that carrier without first having to view 
     advertising or promotional material, or a navigational 
     device, guide, or menu that omits broadcasting services as an 
     available option;
       (4) except as required by paragraphs (1) through (3), 
     prohibit such carrier and a multichannel video programming 
     distributor using the facilities of such carrier from 
     discriminating among video programming providers with respect 
     to material or information provided by the carrier to 
     subscribers for the purposes of selecting programming, or in 
     the way such material or information is presented to 
     subscribers;
       (5) require such carrier and a multichannel video 
     programming distributor using the facilities of such carrier 
     to ensure that video programming providers or copyright 
     holders (or both) are able suitably and uniquely to identify 
     their programming services to subscribers;
       (6) if such identification is transmitted as part of the 
     programming signal, require a telecommunications carrier that 
     provides video programming directly to subscribers and a 
     multichannel video programming distributor using the 
     facilities of such carrier to transmit such identification 
     without change or alteration;
       (7) prohibit such carrier from discriminating among video 
     programming providers with regard to carriage and ensure that 
     the rates, terms, and conditions for such carriage are just, 
     reasonable, and nondiscriminatory;
       (8) extend to such carriers and multichannel video 
     programming distributors using the facilities of such carrier 
     the Commission's regulations concerning network 
     nonduplication (47 C.F.R. 76.92 et seq.) and syndicated 
     exclusivity (47 C.F.R. 76.171 et seq.); and
       (9) extend to such carriers and multichannel video 
     programming distributors using the facilities of such carrier 
     the protections afforded to local broadcast signals in 
     section 614(b)(3), 614(b)(4)(A), and 615(g)(1) and (2) of 
     such Act (47 U.S.C. 534(b)(3), 534(b)(4)(A), and 535(g)(1) 
     and (2)).
       (d) Enforcement.--The Commission shall resolve disputes 
     under subsection (c) and the regulations prescribed under 
     that subsection. Any such dispute shall be resolved with 180 
     days after notice of the dispute is submitted to the 
     Commission. At that time, or subsequently in a separate 
     proceeding, the Commission may award damages sustained in 
     consequence of any violation of this section to any person 
     denied carriage, or require carriage, or both. Any aggrieved 
     party may also seek any other remedy available under the law.
       (e) Effective Dates.--The amendment made by subsection (a) 
     takes effect on the date of enactment of this Act. The 
     amendment made by subsection (b) takes effect 1 year after 
     that date.

     SEC. 203. CABLE ACT REFORM.

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

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

     SEC. 204. POLE ATTACHMENTS.

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

     but in no event shall such proportion exceed the amount that 
     would be allocated to such entity under an equal 
     apportionment of such costs among all attachments. 

[[Page H 9964]]

       ``(3) A utility shall apportion the cost of providing 
     usable space among all entities according to the percentage 
     of usable space required for each entity. Costs shall be 
     apportioned between the usable space and the space on a pole, 
     duct, conduit, or right-of-way other than the usable space on 
     a proportionate basis.
       ``(4) The regulations required under paragraph (1) shall 
     become effective 5 years after the date of enactment of the 
     Telecommunications Act of 1995. Any increase in the rates for 
     pole attachments that result from the adoption of the 
     regulations required by this subsection shall be phased in 
     equal annual increments over a period of 5 years beginning on 
     the effective date of such regulations.
       ``(f)(1) A utility shall provide a cable television system 
     or any telecommunications carrier with nondiscriminatory 
     access to any pole, duct, conduit, or right-of-way owned or 
     controlled by it.
       ``(2) Notwithstanding paragraph (1), a utility providing 
     electric service may deny a cable television system or 
     telecommunications carrier access to its poles, ducts, 
     conduits, or rights-of-way, on a non-discriminatory basis 
     where there is insufficient capacity and for reasons of 
     safety, reliability, and generally applicable engineering 
     purposes.
       ``(g) A utility that engages in the provision of 
     telecommunications services shall impute to its costs of 
     providing such services (and charge any affiliate, 
     subsidiary, or associate company engaged in the provision of 
     such services) an amount equal to the pole attachment rate 
     for which such company would be liable under this section.''.

     SEC. 205. ENTRY BY UTILITY COMPANIES.

       (a) In General.--
       (1) Authorized activities of utilities.--Notwithstanding 
     any other provision of law to the contrary (including the 
     Public Utility Holding Company Act of 1935 (15 U.S.C. 79a et 
     seq.)), an electric, gas, water, or steam utility, and any 
     subsidiary company, affiliate, or associate company of such a 
     utility, other than a public utility company that is an 
     associate company of a registered holding company, may 
     engage, directly or indirectly, in any activity whatsoever, 
     wherever located, necessary or appropriate to the provision 
     of--
       (A) telecommunications services,
       (B) information services,
       (C) other services or products subject to the jurisdiction 
     of the Federal Communications Commission under the 
     Communications Act of 1934 (47 U.S.C. 151 et seq.), or
       (D) products or services that are related or incidental to 
     a product or service described in subparagraph (A), (B), or 
     (C).
       (2) Removal of sec jurisdiction.--The Securities and 
     Exchange Commission has no jurisdiction under the Public 
     Utility Holding Company Act of 1935 (15 U.S.C. 79a et seq.) 
     over a holding company, or a subsidiary company, affiliate, 
     or associate company of a holding company, to grant any 
     authorization to enforce any requirement with respect to, or 
     approve or otherwise review, any activity described in 
     paragraph (1), including financing, investing in, acquiring, 
     or maintaining any interest in, or entering into affiliate 
     transactions or contracts, and any authority over audits or 
     access to books and records.
       (3) Applicability of Telecommunications Regulation.--
     Nothing in this section shall affect the authority of the 
     Federal Communications Commission under the Communications 
     Act of 1934, or the authority of State commissions under 
     State laws concerning the provision of telecommunications 
     services, to regulate the activities of an associate company 
     engaged in activities described in paragraph (1).
       (4) Commission rules.--The Commission shall consider and 
     adopt, as necessary, rules to protect the customers of a 
     public utility company that is a subsidiary company of a 
     registered holding company against potential detriment from 
     the telecommunications activities of any other subsidiary of 
     such registered holding company.
       (b) Prohibition of Cross-Subsidization.--Nothing in the 
     Public Utility Holding Company Act of 1935 shall preclude the 
     Federal Energy Regulatory Commission or a State commission 
     from exercising its jurisdiction under otherwise applicable 
     law to determine whether a public utility company may recover 
     in rates the costs of any activity described in subsection 
     (a)(1) which is performed by an associate company regardless 
     of whether such costs are incurred through the direct or 
     indirect purchase of goods and services from such associate 
     company.
       (c) Assumption of Liabilities.--Any public utility company 
     that is an associate company of a registered holding company 
     and that is subject to the jurisdiction of a State commission 
     with respect to its retail electric or gas rates shall not 
     issue any security for the purpose of financing the 
     acquisition, ownership, or operation of an associate company 
     engaged in activities described in subsection (a)(1) without 
     the prior approval of the State commission. Any public 
     utility company that is an associate company of a registered 
     holding company and that is subject to the jurisdiction of a 
     State commission with respect to its retail electric or gas 
     rates shall not assume any obligation or liability as 
     guarantor, endorser, surety, or otherwise by the public 
     utility in respect of any security of an associate company 
     engaged in activities described in subsection (a)(1) without 
     the prior approval of the State commission.
       (d) Pledging or Mortgaging Utility Assets.--Any public 
     utility company that is an associate company of a registered 
     holding company and that is subject to the jurisdiction of a 
     State commission with respect to its retail electric or gas 
     rates shall not pledge, mortgage, or otherwise use as 
     collateral any utility assets of the public utility or 
     utility assets of any subsidiary company thereof for the 
     benefit of an associate company engaged in activities 
     described in subsection (a)(1) without the prior approval of 
     the State commission.
       (e) Books and Records.--An associate company engaged in 
     activities described in subsection (a)(1) which is an 
     associate company of a registered holding company shall 
     maintain books, records, and accounts separate from the 
     registered holding company which identify all transactions 
     with the registered holding company and its other associate 
     companies, and provide access to books, records, and accounts 
     to State commissions and the Federal Energy Regulatory 
     Commission under the same terms of access, disclosure, and 
     procedures as provided in section 201(g) of the Federal Power 
     Act.
       (f) Independent Audit Authority for State Commissions.--
       (1) State may order audit.--Any State commission with 
     jurisdiction over a public utility company that--
       (A) is an associate company of a registered holding 
     company, and
       (B) transacts business, directly or indirectly, with a 
     subsidiary company, affiliate, or associate company of that 
     holding company engaged in any activity described in 
     subsection (a)(1),

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

     SEC. 206. BROADCAST REFORM.

       (a) Spectrum Reform.--
       (1) Advanced television spectrum services.--If the 
     Commission by rule permits licensees to provide advanced 
     television services, then--
       (A) it shall adopt regulations that allow such licensees to 
     make use of the advanced 

[[Page H 9965]]
     television spectrum for the transmission of ancillary or supplementary 
     services if the licensees provide without charge to the 
     public at least one advanced television program service as 
     prescribed by the Commission that is intended for and 
     available to the general public on the advanced television 
     spectrum; and
       (B) it shall apply similar rules to use of existing 
     television spectrum.
       (2) Commission to collect fees.--To the extent that a 
     television broadcast licensee provides ancillary or 
     supplementary services using existing or advanced television 
     spectrum--
       (A) for which payment of a subscription fee is required in 
     order to receive such services, or
       (B) for which the licensee directly or indirectly receives 
     compensation from a third party in return for transmitting 
     material furnished by such third party, other than payments 
     to broadcast stations by third parties for transmission of 
     program material or commercial advertising,

     the Commission may collect from each such licensee an annual 
     fee to the extent the existing or advanced television 
     spectrum is used for such ancillary or supplementary 
     services. In determining the amount of such fees, the 
     Commission shall take into account the portion of the 
     licensee's total existing or advanced television spectrum 
     which is used for such services and the amount of time such 
     services are provided. The amount of such fees to be 
     collected for any such service shall not, in any event, 
     exceed an amount equivalent on an annualized basis to the 
     amount paid by providers of a competing service on spectrum 
     subject to auction under section 309(j) of the Communications 
     Act of 1934 (47 U.S.C. 309(j)).
       (3) Public interest requirement.--Nothing in this section 
     shall be construed as relieving a television broadcasting 
     station from its obligation to serve the public interest, 
     convenience, and necessity. In the Commission's review of any 
     application for renewal of a broadcast license for a 
     television station that provides ancillary or supplementary 
     services, the television licensee shall establish that all of 
     its program services on the existing or advanced television 
     spectrum are in the public interest. Any violation of the 
     Commission rules applicable to ancillary or supplementary 
     services shall reflect upon the licensee's qualifications for 
     renewal of its license.
       (4) Definitions.--As used in this subsection--
       (A) The term ``advanced television services'' means 
     television services provided using digital or other advanced 
     technology to enhance audio quality and video resolution.
       (B) The term ``existing'' means spectrum generally in use 
     for television broadcast purposes on the date of enactment of 
     this Act.
       (b) Ownership Reform.--
       (1) In general.--The Commission shall modify its rules for 
     multiple ownership set forth in 47 CFR 73.3555 by--
       (A) eliminating the restrictions on the number of 
     television stations owned under subdivisions (e)(1) (ii) and 
     (iii); and
       (B) changing the percentage set forth in subdivision 
     (e)(2)(ii) from 25 percent to 35 percent.
       (2) Radio Ownership.--The Commission shall modify its rules 
     set forth in 47 CFR 73.3555 by eliminating any provisions 
     limiting the number of AM or FM broadcast stations which may 
     be owned or controlled by one entity either nationally or in 
     a particular market. The Commission may refuse to approve the 
     transfer or issuance of an AM or FM broadcast license to a 
     particular entity if it finds that the entity would thereby 
     obtain an undue concentration of control or would thereby 
     harm competition. Nothing in this section shall require or 
     prevent the Commission from modifying its rules contained in 
     47 CFR 73.3555(c) governing the ownership of both a radio and 
     television broadcast stations in the same market.
       (3) Local marketing agreement.--Nothing in this Act shall 
     be construed to prohibit the continuation or renewal of any 
     television local marketing agreement that is in effect on the 
     date of enactment of this Act and that is in compliance with 
     the Commission's regulations.
       (4) Statutory restrictions.--Section 613 (47 U.S.C. 533) is 
     amended by striking subsection (a) and inserting the 
     following:
       ``(a) The Commission shall review its ownership rules 
     biennially as part of its regulatory reform review under 
     section 259.''.
       (5) Conforming changes.--The Commission shall amend its 
     rules to make any changes necessary to reflect the effect of 
     this section on its rules.
       (6) Effective date.--The Commission shall make the 
     modifications required by paragraphs (1) and (2) effective on 
     the date of enactment of this Act.
       (c) Term of Licenses.--Section 307(c) (47 U.S.C. 307(c)) is 
     amended by striking the first four sentences and inserting 
     the following:
       ``No license shall be granted for a term longer than 10 
     years. Upon application, a renewal of such license may be 
     granted from time to time for a term of not to exceed 10 
     years, if the Commission finds that the public interest, 
     convenience, and necessity would be served thereby.''.
       (d) Broadcast License Renewal Procedures.--
       (1) Section 309 (47 U.S.C. 309) is amended by adding at the 
     end thereof the following:
       ``(k)(1)(A) Notwithstanding subsections (c) and (d), if the 
     licensee of a broadcast station submits an application to the 
     Commission for renewal of such license, the Commission shall 
     grant the application if it finds, after notice and 
     opportunity for comment, with respect to that station during 
     the preceding term of its license, that--
       ``(i) the station has served the public interest, 
     convenience, and necessity;
       ``(ii) there have been no serious violations by the 
     licensee of this Act or the rules and regulations of the 
     Commission; and
       ``(iii) there have been no other violations by the licensee 
     of this Act or the rules and regulations of the Commission 
     which, taken together, would constitute a pattern of abuse.
       ``(B) If any licensee of a broadcast station fails to meet 
     the requirements of this subsection, the Commission may deny 
     the application for renewal in accordance with paragraph (2), 
     or grant such application on appropriate terms and 
     conditions, including renewal for a term less than the 
     maximum otherwise permitted.
       ``(2) If the Commission determines, after notice and 
     opportunity for a hearing, that a licensee has failed to meet 
     the requirements specified in paragraph (1)(A) and that no 
     mitigating factors justify the imposition of lesser 
     sanctions, the Commission shall--
       ``(A) issue an order denying the renewal application filed 
     by such licensee under section 308; and
       ``(B) only thereafter accept and consider such applications 
     for a construction permit as may be filed under section 308 
     specifying the channel or broadcasting facilities of the 
     former licensee.
       ``(3) In making the determinations specified in paragraphs 
     (1) or (2)(A), the Commission shall not consider whether the 
     public interest, convenience, and necessity might be served 
     by the grant of a license to a person other than the renewal 
     applicant.''.
       (2) Section 309(d) (47 U.S.C. 309(d)) is amended by 
     inserting ``(or subsection (k) in the case of renewal of any 
     broadcast station license)'' after ``with subsection (a)'' 
     each place it appears.
       (3) The amendments made by this subsection apply to 
     applications filed after May 31, 1995.
       (4) This section shall operate only if the Commission shall 
     amend its ``Application for renewal of License for AM, FM, 
     TV, Translator or LPTV Station'' (FCC Form 303-S) to require 
     that, for commercial TV applicants only, the applicant attach 
     as an exhibit to the application a summary of written 
     comments and suggestions received from the public and 
     maintained by the licensee in accordance with section 73.1202 
     of title 47, Code of Federal Regulations, that comment on the 
     applicant's programming, if any, characterized by the 
     commentor as constituting violent programming.

       Subtitle B--Termination of Modification of Final Judgment

     SEC. 221. REMOVAL OF LONG DISTANCE RESTRICTIONS.

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

     ``SEC. 255. INTEREXCHANGE TELECOMMUNICATIONS SERVICES.

       ``(a) In General.--Notwithstanding any restriction or 
     obligation imposed before the date of enactment of the 
     Telecommunications Act of 1995 under section II(D) of the 
     Modification of Final Judgment, a Bell operating company, or 
     any subsidiary or affiliate of a Bell operating company, that 
     meets the requirements of this section may provide--
       ``(1) interLATA telecommunications services originating in 
     any region in which it is the dominant provider of wireline 
     telephone exchange service or exchange access service after 
     the Commission determines that it has fully implemented the 
     competitive checklist found in subsection (b)(2) in the area 
     in which it seeks to provide interLATA telecommunications 
     services, in accordance with the provisions of subsection 
     (c);
       ``(2) interLATA telecommunications services originating in 
     any area where that company is not the dominant provider of 
     wireline telephone exchange service or exchange access 
     service in accordance with the provisions of subsection (d); 
     and
       ``(3) interLATA services that are incidental services in 
     accordance with the provisions of subsection (e).
       ``(b) Specific InterLATA Interconnection Requirements.--
       ``(1) In general.--A Bell operating company may provide 
     interLATA services in accordance with this section only if 
     that company has reached an interconnection agreement under 
     section 251 and that agreement provides, at a minimum, for 
     interconnection that meets the competitive checklist 
     requirements of paragraph (2).
       ``(2) Competitive checklist.--Interconnection provided by a 
     Bell operating company to other telecommunications carriers 
     under section 251 shall include:
       ``(A) Nondiscriminatory access on an unbundled basis to the 
     network functions and services of the Bell operating 
     company's telecommunications network that is at least equal 
     in type, quality, and price to the access the Bell operating 
     company affords to itself or any other entity.
       ``(B) The capability to exchange telecommunications between 
     customers of the Bell operating company and the 
     telecommunications carrier seeking interconnection.
       ``(C) Nondiscriminatory access to the poles, ducts, 
     conduits, and rights-of-way 

[[Page H 9966]]
     owned or controlled by the Bell operating company at just and 
     reasonable rates where it has the legal authority to permit 
     such access.
       ``(D) Local loop transmission from the central office to 
     the customer's premises, unbundled from local switching or 
     other services.
       ``(E) Local transport from the trunk side of a wireline 
     local exchange carrier switch unbundled from switching or 
     other services.
       ``(F) Local switching unbundled from transport, local loop 
     transmission, or other services.
       ``(G) Nondiscriminatory access to--
       ``(i) 911 and E911 services;
       ``(ii) directory assistance services to allow the other 
     carrier's customers to obtain telephone numbers; and
       ``(iii) operator call completion services.
       ``(H) White pages directory listings for customers of the 
     other carrier's telephone exchange service.
       ``(I) Until the date by which neutral telephone number 
     administration guidelines, plan, or rules are established, 
     nondiscriminatory access to telephone numbers for assignment 
     to the other carrier's telephone exchange service customers. 
     After that date, compliance with such guidelines, plan, or 
     rules.
       ``(J) Nondiscriminatory access to databases and associated 
     signaling, including signaling links, signaling service 
     control points, and signaling service transfer points, 
     necessary for call routing and completion.
       ``(K) Until the date by which the Commission determines 
     that final telecommunications number portability is 
     technically feasible and must be made available, interim 
     telecommunications number portability through remote call 
     forwarding, direct inward dialing trunks, or other comparable 
     arrangements, with as little impairment of functioning, 
     quality, reliability, and convenience as possible. After that 
     date, full compliance with final telecommunications number 
     portability.
       ``(L) Nondiscriminatory access to whatever services or 
     information may be necessary to allow the requesting carrier 
     to implement local dialing parity in a manner that permits 
     consumers to be able to dial the same number of digits when 
     using any telecommunications carrier providing telephone 
     exchange service or exchange access service.
       ``(M) Reciprocal compensation arrangements on a 
     nondiscriminatory basis for the origination and termination 
     of telecommunications.
       ``(N) Telecommunications services and network functions 
     provided on an unbundled basis without any conditions or 
     restrictions on the resale or sharing of those services or 
     functions, including both origination and termination of 
     telecommunications services, other than reasonable conditions 
     required by the Commission or a State. For purposes of this 
     subparagraph, it is not an unreasonable condition for the 
     Commission or a State to limit the resale--
       ``(i) of services included in the definition of universal 
     service to a telecommunications carrier who intends to resell 
     that service to a category of customers different from the 
     category of customers being offered that universal service by 
     such carrier if the Commission or State orders a carrier to 
     provide the same service to different categories of customers 
     at different prices necessary to promote universal service; 
     or
       ``(ii) of subsidized universal service in a manner that 
     allows companies to charge another carrier rates which 
     reflect the actual cost of providing those services to that 
     carrier, exclusive of any universal service support received 
     for providing such services in accordance with section 
     214(d)(5).
       ``(3) Joint marketing of local and long distance 
     services.--Until a Bell operating company is authorized to 
     provide interLATA services in a telephone exchange area where 
     that company is the dominant provider of wireline telephone 
     exchange service or exchange access service, or until 36 
     months have passed since the enactment of the 
     Telecommunications Act of 1995, whichever is earlier, a 
     telecommunications carrier that serves greater than 5 percent 
     of the Nation's presubscribed access lines may not jointly 
     market in such telephone exchange area telephone exchange 
     service purchased from such company with interLATA services 
     offered by that telecommunications carrier.
       ``(4) Commission may not expand competitive checklist.--The 
     Commission may not, by rule or otherwise, limit or extend the 
     terms used in the competitive checklist.
       ``(c) In-Region Services.--
       ``(1) Application.--Upon the enactment of the 
     Telecommunications Act of 1995, a Bell operating company or 
     its affiliate may apply to the Commission for authorization 
     notwithstanding the Modification of Final Judgment to provide 
     interLATA telecommunications service originating in any area 
     where such Bell operating company is the dominant provider of 
     wireline telephone exchange service or exchange access 
     service. The application shall describe with particularity 
     the nature and scope of the activity and of each product 
     market or service market, and each geographic market for 
     which authorization is sought.
       ``(2) Determination by commission.--
       ``(A) Determination.--Not later than 90 days after 
     receiving an application under paragraph (1), the Commission 
     shall issue a written determination, on the record after a 
     hearing and opportunity for comment, granting or denying the 
     application in whole or in part. Before making any 
     determination under this subparagraph, the Commission shall 
     consult with the Attorney General regarding the application. 
     In consulting with the Commission under this subparagraph, 
     the Attorney General may apply any appropriate standard.
       ``(B) Approval.--The Commission may only approve the 
     authorization requested in an application submitted under 
     paragraph (1) if it finds that--
       ``(i) the petitioning Bell operating company has fully 
     implemented the competitive checklist found in subsection 
     (b)(2); and
       ``(ii) the requested authority will be carried out in 
     accordance with the requirements of section 252,

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

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

     shall describe with particularity the nature and scope of the 
     activity, and of each product market or service market, and 
     each geographic market, to which the affirmance or reversal 
     applies.
       ``(5) Requirements relating to separate affiliate; 
     safeguards; and intralata toll dialing parity.--
       ``(A) Separate affiliate; safeguards.--Other than interLATA 
     services authorized by an order entered by the United States 
     District Court for the District of Columbia pursuant to the 
     Modification of Final Judgment before the date of enactment 
     of the Telecommunications Act of 1995, a Bell operating 
     company, or any affiliate of such a company, providing 
     interLATA services authorized under this subsection may 
     provide such interLATA services in that market only in 
     accordance with the requirements of section 252.
       ``(B) Intralata toll dialing parity.--
       ``(i) A Bell operating company granted authority to provide 
     interLATA services under this subsection shall provide 
     intraLATA toll dialing parity throughout that market 
     coincident with its exercise of that authority. If the 
     Commission finds that such a Bell operating company has 
     provided interLATA service authorized under this clause 
     before its implementation of intraLATA toll dialing parity 
     throughout that market, or fails to maintain intraLATA toll 
     dialing parity throughout that market, the Commission, except 
     in cases of inadvertent interruptions or other events beyond 
     the control of the Bell operating company, shall suspend the 
     authority to provide interLATA service for that market until 
     the Commission determines that intraLATA toll dialing parity 
     is implemented or reinstated.
       ``(ii) Except for single-LATA States and States which have 
     issued an order by June 1, 1995 requiring a Bell operating 
     company to implement toll dialing parity, a State may not 
     require a Bell operating company to implement toll dialing 
     parity in an intraLATA area before a Bell operating company 
     has been granted authority under this subsection to provide 
     interLATA services in that area or before three years after 
     the date of enactment of the Telecommunications Act of 1995, 
     whichever is earlier. Nothing in this clause precludes a 
     State from issuing an order requiring toll dialing parity in 
     an intraLATA area prior to either such date so long as such 
     order does not take effect until after the earlier of either 
     such dates.
       ``(iii) In any State in which intraLATA toll dialing parity 
     has been implemented prior to the earlier date specified in 
     clause (ii), no telecommunications carrier that serves 
     greater than five percent of the Nation's presubscribed 
     access lines may jointly market interLATA telecommunications 
     services and intraLATA toll telecommunications services in a 
     telephone exchange area in such State until a Bell operating 
     company is authorized under this subsection to provide 
     interLATA services in such telephone exchange area or until 
     three years after the date of enactment of the 
     Telecommunications Act of 1995, whichever is earlier.
       ``(d) Out-of-Region Services.--Effective on the date of 
     enactment of the Telecommunications Act of 1995, a Bell 
     operating 

[[Page H 9967]]
     company or its affiliate may provide interLATA telecommunications 
     services originating in any area where such company is not 
     the dominant provider of wireline telephone exchange service 
     or exchange access service.
       ``(e) Incidental Services.--
       ``(1) In general.--Effective on the date of enactment of 
     the Telecommunications Act of 1995, a Bell operating company 
     or its affiliate may provide interLATA services that are 
     incidental to--
       ``(A)(i) providing audio programming, video programming, or 
     other programming services to subscribers of such company,
       ``(ii) providing the capability for interaction by such 
     subscribers to select or respond to such audio programming, 
     video programming, or other programming services, to order, 
     or control transmission of the programming, polling or 
     balloting, and ordering other goods or services,
       ``(iii) providing to distributors audio programming or 
     video programming that such company owns, controls, or is 
     licensed by the copyright owner of such programming, or by an 
     assignee of such owner, to distribute, or
       ``(iv) providing alarm monitoring services,
       ``(B) providing--
       ``(i) a telecommunications service, using the transmission 
     facilities of a cable system that is an affiliate of such 
     company, between LATAs within a cable system franchise area 
     in which such company is not, on the date of enactment of the 
     Telecommunications Act of 1995, a provider of wireline 
     telephone exchange service, or
       ``(ii) two-way interactive video services or Internet 
     services over dedicated facilities to or for elementary and 
     secondary schools as defined in section 264(d),
       ``(C) providing a service that permits a customer that is 
     located in one LATA to retrieve stored information from, or 
     file information for storage in, information storage 
     facilities of such company that are located in another LATA 
     area, so long as the customer acts affirmatively to initiate 
     the storage or retrieval of information, except that--
       ``(i) such service shall not cover any service that 
     establishes a direct connection between end users or any 
     real-time voice and data transmission,
       ``(ii) such service shall not include voice, data, or 
     facsimile distribution services in which the Bell operating 
     company or affiliate forwards customer-supplied information 
     to customer- or carrier-selected recipients,
       ``(iii) such service shall not include any service in which 
     the Bell operating company or affiliate searches for and 
     connects with the intended recipient of information, or any 
     service in which the Bell operating company or affiliate 
     automatically forwards stored voicemail or other information 
     to the intended recipient, and
       ``(iv) customers of such service shall not be billed a 
     separate charge for the interLATA telecommunications 
     furnished in conjunction with the provision of such service,
       ``(D) providing signaling information used in connection 
     with the provision of telephone exchange service or exchange 
     access service to another local exchange carrier; or
       ``(E) providing network control signaling information to, 
     and receiving such signaling information from, interexchange 
     carriers at any location within the area in which such 
     company provides telephone exchange service or exchange 
     access service.
       ``(2) Limitations.--The provisions of paragraph (1) are 
     intended to be narrowly construed. The transmission 
     facilities used by a Bell operating company or affiliate 
     thereof to provide interLATA telecommunications under 
     paragraph (1)(C) and subsection (f) shall be leased by that 
     company from unaffiliated entities on terms and conditions 
     (including price) no more favorable than those available to 
     the competitors of that company until that Bell operating 
     company receives authority to provide interLATA services 
     under subsection (c). The interLATA services provided under 
     paragraph (1)(A) are limited to those interLATA transmissions 
     incidental to the provision by a Bell operating company or 
     its affiliate of video, audio, and other programming services 
     that the company or its affiliate is engaged in providing to 
     the public. A Bell operating company may not provide 
     telecommunications services not described in paragraph (1) 
     without receiving the approvals required by subsection (c). 
     The provision of services authorized under this subsection by 
     a Bell operating company or its affiliate shall not adversely 
     affect telephone exchange ratepayers or competition in any 
     telecommunications market.
       ``(f) Commercial Mobile Service.--A Bell operating company 
     may provide interLATA commercial mobile service except where 
     such service is a replacement for land line telephone 
     exchange service for a substantial portion of the land line 
     telephone exchange service in a State in accordance with 
     section 322(c) and with the regulations prescribed by the 
     Commission.
       ``(g) Definitions.--As used in this section--
       ``(1) Audio programming services.--The term `audio 
     programming services' means programming provided by, or 
     generally considered to be comparable to programming provided 
     by, a radio broadcast station.
       ``(2) Video programming services; other programming 
     services.--The terms `video programming service' and `other 
     programming services' have the same meanings as such terms 
     have under section 602 of this Act.
       ``(h) Certain Service Applications Treated As In-Region 
     Service Applications.--For purposes of this section, a Bell 
     operating company application to provide 800 service, private 
     line service, or their equivalents that--
       ``(1) terminate in an area where the Bell operating company 
     is the dominant provider of wireline telephone exchange 
     service or exchange access service, and
       ``(2) allow the called party to determine the interLATA 
     carrier,

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

     SEC. 222. REMOVAL OF MANUFACTURING RESTRICTIONS.

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

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

       ``(a) Authorization.--
       ``(1) In general.--Notwithstanding any restriction or 
     obligation imposed before the date of enactment of the 
     Telecommunications Act of 1995 pursuant to the Modification 
     of Final Judgment on the lines of business in which a Bell 
     operating company may engage, if the Commission authorizes a 
     Bell operating company to provide interLATA services under 
     section 255, then that company may be authorized by the 
     Commission to manufacture and provide telecommunications 
     equipment, and to manufacture customer premises equipment, at 
     any time after that determination is made, subject to the 
     requirements of this section and the regulations prescribed, 
     except that neither a Bell operating company nor any of its 
     affiliates may engage in such manufacturing in conjunction 
     with a Bell operating company not so affiliated or any of its 
     affiliates.
       ``(2) Certain research and design arrangements; royalty 
     agreements.--Upon adoption of rules by the Commission under 
     section 252, a Bell operating company may--
       ``(A) engage in research and design activities related to 
     manufacturing, and
       ``(B) enter into royalty agreements with manufacturers of 
     telecommunications equipment.
       ``(b) Separate Affiliate; Safeguards.--Any manufacturing or 
     provision of equipment authorized under subsection (a) shall 
     be conducted in accordance with the requirements of section 
     252.
       ``(c) Protection of Small Telephone Company Interests.--
       ``(1) Equipment to be made available to others.--A 
     manufacturing affiliate of a Bell operating company shall 
     make available, without discrimination or self-preference as 
     to price, delivery, terms, or conditions, to all local 
     exchange carriers, for use with the public telecommunications 
     network, any telecommunications equipment, including software 
     integral to such telecommunications equipment, including 
     upgrades, manufactured by such affiliate if each such 
     purchasing carrier--
       ``(A) does not manufacture telecommunications equipment or 
     have an affiliate which manufactures telecommunications 
     equipment; or
       ``(B) agrees to make available, to the Bell operating 
     company that is the parent of the manufacturing affiliate or 
     any of the local exchange carrier affiliates of such Bell 
     company, any telecommunications equipment, including software 
     integral to such telecommunications equipment, including 
     upgrades, manufactured for use with the public 
     telecommunications network by such purchasing carrier or by 
     any entity or organization with which such purchasing carrier 
     is affiliated.
       ``(2) Non-discrimination standards.--
       ``(A) A Bell operating company and any entity acting on its 
     behalf shall make procurement decisions and award all supply 
     contracts for equipment, services, and software on the basis 
     of open, competitive bidding, and an objective assessment of 
     price, quality, delivery, and other commercial factors.
       ``(B) A Bell operating company and any entity it owns or 
     otherwise controls, or which 

[[Page H 9968]]
     is acting on its behalf or on behalf of its affiliate, shall permit any 
     person to participate fully on a non-discriminatory basis in 
     the process of establishing standards and certifying 
     equipment used in or interconnected to the public 
     telecommunications network.
       ``(C) A Bell operating company shall, consistent with the 
     antitrust laws, engage in joint network planning and design 
     with local exchange carriers operating in the same area of 
     interest. No participant in such planning shall be allowed to 
     delay the introduction of new technology or the deployment of 
     facilities to provide telecommunications services, and 
     agreement with such other carriers shall not be required as a 
     prerequisite for such introduction or deployment. A Bell 
     operating company shall provide, to other local exchange 
     carriers operating in the same area of interest, timely 
     information on the planned deployment of telecommunications 
     equipment, including software integral to such 
     telecommunications equipment and upgrades of that software.
       ``(D) A manufacturing affiliate of a Bell operating company 
     may not restrict sales to any local exchange carrier of 
     telecommunications equipment, including software integral to 
     the operation of such equipment and related upgrades.
       ``(E) A Bell operating company and any entity it owns or 
     otherwise controls shall protect the proprietary information 
     submitted with contract bids and in the standards and 
     certification processes from release not specifically 
     authorized by the owner of such information.
       ``(d) Collaboration with Other Manufacturers.--A Bell 
     operating company and its affiliates may engage in close 
     collaboration with any manufacturer of customer premises 
     equipment or telecommunications equipment not affiliated with 
     a Bell operating company during the design and development of 
     hardware, software, or combinations thereof relating to such 
     equipment.
       ``(e) Information on Protocols and Technical 
     Requirements.--The Commission shall prescribe regulations to 
     require that each Bell operating company shall maintain and 
     file with the Commission full and complete information with 
     respect to the protocols and technical requirements for 
     connection with and use of its telephone exchange service 
     facilities. Such regulations shall require each such Bell 
     company to report promptly to the Commission any material 
     changes or planned changes to such protocols and 
     requirements, and the schedule for implementation of such 
     changes or planned changes.
       ``(f) Additional Rules and Regulations.--The Commission may 
     prescribe such additional rules and regulations as the 
     Commission determines are necessary to carry out the 
     provisions of this section, and otherwise to prevent 
     discrimination and cross-subsidization in a Bell operating 
     company's dealings with its affiliate and with third parties.
       ``(g) Administration and Enforcement.--
       ``(1) Commission authority.--For the purposes of 
     administering and enforcing the provisions of this section 
     and the regulations prescribed under this section, the 
     Commission shall have the same authority, power, and 
     functions with respect to any Bell operating company as the 
     Commission has in administering and enforcing the provisions 
     of this title with respect to any common carrier subject to 
     this Act.
       ``(2) Civil actions by injured parties.--Any party injured 
     by an act or omission of a Bell operating company or its 
     manufacturing affiliate which violates the requirements of 
     paragraph (1) or (2) of subsection (c), or the Commission's 
     regulations implementing such paragraphs, may initiate an 
     action in a district court of the United States to recover 
     the full amount of damages sustained in consequence of any 
     such violation and obtain such orders from the court as are 
     necessary to terminate existing violations and to prevent 
     future violations; or such party may seek relief from the 
     Commission pursuant to sections 206 through 209.
       ``(h) Application to Bell Communications Research.--Nothing 
     in this section--
       ``(1) provides any authority for Bell Communications 
     Research, or any successor entity, to manufacture or provide 
     telecommunications equipment or to manufacture customer 
     premises equipment; or
       ``(2) prohibits Bell Communications Research, or any 
     successor entity, from engaging in any activity in which it 
     is lawfully engaged on the date of enactment of the 
     Telecommunications Act of 1995, including providing a 
     centralized organization for the provision of engineering, 
     administrative, and other services (including serving as a 
     single point of contact for coordination of the Bell 
     operating companies to meet national security and emergency 
     preparedness requirements).
       ``(i) Definitions.--As used in this section--
       ``(1) The term `customer premises equipment' means 
     equipment employed on the premises of a person (other than a 
     carrier) to originate, route, or terminate 
     telecommunications.
       ``(2) The term `manufacturing' has the same meaning as such 
     term has in the Modification of Final Judgment.
       ``(3) The term `telecommunications equipment' means 
     equipment, other than customer premises equipment, used by a 
     carrier to provide telecommunications services.''.
       (b) Effect on Pre-existing Manufacturing Authority.--
     Nothing in this section, or in section 256 of the 
     Communications Act of 1934 as added by this section, 
     prohibits any Bell operating company from engaging, directly 
     or through any affiliate, in any manufacturing activity in 
     which any Bell operating company or affiliate was authorized 
     to engage on the date of enactment of this Act.

     SEC. 223. EXISTING ACTIVITIES.

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

     SEC. 224. ENFORCEMENT.

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

     ``SEC. 257. ENFORCEMENT.

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

     SEC. 225. ALARM MONITORING SERVICES.

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

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

       ``(a) In General.--Except as provided in this section, a 
     Bell operating company, or any affiliate of that company, may 
     not provide alarm monitoring services for the protection of 
     life, safety, or property. A Bell operating company may 
     transport alarm monitoring service signals on a common 
     carrier basis only.
       ``(b) Authority To Provide Alarm Monitoring Services.--
     Beginning 4 years after the date of enactment of the 
     Telecommunications Act of 1995, a Bell operating company may 
     provide alarm monitoring services for the protection of life, 
     safety, or property if it has been authorized to provide 
     interLATA services under section 255 unless the Commission 
     finds that the provision of alarm monitoring services by such 
     company is not in the public interest. The Commission may not 
     find that provision of alarm monitoring services by a Bell 
     operating company is in the public interest until it finds 
     that it has the capability effectively to enforce any 
     requirements, limitations, or conditions that may be placed 
     upon a Bell operating company in the provision of alarm 
     monitoring 

[[Page H 9969]]
     services, including the regulations prescribed under subsection (c).
       ``(c) Regulations Required.--
       ``(1) Not later than 1 year after the date of enactment of 
     the Telecommunications Act of 1995, the Commission shall 
     prescribe regulations--
       ``(A) to establish such requirements, limitations, or 
     conditions as are--
       ``(i) necessary and appropriate in the public interest with 
     respect to the provision of alarm monitoring services by Bell 
     operating companies and their affiliates, and
       ``(ii) effective at such time as a Bell operating company 
     or any of its subsidiaries or affiliates is authorized to 
     provide alarm monitoring services; and
       ``(B) to establish procedures for the receipt and review of 
     complaints concerning violations by such companies of such 
     regulations, or of any other provision of this Act or the 
     regulations thereunder, that result in material financial 
     harm to a provider of alarm monitoring services.
       ``(2) A Bell operating company, its affiliates, and any 
     local exchange carrier are prohibited from recording or using 
     in any fashion the occurrence or contents of calls received 
     by providers of alarm monitoring services for the purposes of 
     marketing such services on behalf of the Bell operating 
     company, any of its affiliates, the local exchange carrier, 
     or any other entity. Any regulations necessary to enforce 
     this paragraph shall be issued initially within 6 months 
     after the date of enactment of the Telecommunications Act of 
     1995.
       ``(d) Expedited Consideration Of Complaints.--The 
     procedures established under subsection (c) shall ensure that 
     the Commission will make a final determination with respect 
     to any complaint described in such subsection within 120 days 
     after receipt of the complaint. If the complaint contains an 
     appropriate showing that the alleged violation occurred, as 
     determined by the Commission in accordance with such 
     regulations, the Commission shall, within 60 days after 
     receipt of the complaint, issue a cease and desist order to 
     prevent the Bell operating company and its subsidiaries and 
     affiliates from continuing to engage in such violation 
     pending such final determination.
       ``(e) Remedies.--The Commission may use any remedy 
     available under title V of this Act to terminate and to 
     impose sanctions on violations described in subsection (c). 
     Such remedies may include, if the Commission determines that 
     such violation was willful or repeated, ordering the Bell 
     operating company or its affiliate to cease offering alarm 
     monitoring services.
       ``(f) Savings Provision.--Subsections (a) and (b) do not 
     prohibit or limit the provision of alarm monitoring services 
     by a Bell operating company or an affiliate that was engaged 
     in providing those services as of June 1, 1995, to the extent 
     that such company--
       ``(1) continues to provide those services through the 
     affiliate through which it was providing them on that date; 
     and
       ``(2) does not acquire, directly or indirectly, an equity 
     interest in another entity engaged in providing alarm 
     monitoring services.
       ``(g) Alarm Monitoring Services Defined.--As used in this 
     section, the term `alarm monitoring services' means services 
     that detect threats to life, safety, or property by burglary, 
     fire, vandalism, bodily injury, or other emergency through 
     the use of devices that transmit signals to a central point 
     in a customer's residence, place of business, or other fixed 
     premises which--
       ``(1) retransmits such signals to a remote monitoring 
     center by means of telecommunications facilities of the Bell 
     operating company and any subsidiary or affiliate; and
       ``(2) serves to alert persons at the monitoring center of 
     the need to inform customers, other persons, or police, fire, 
     rescue, or other security or public safety personnel of the 
     threat at such premises.

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

     SEC. 226. NONAPPLICABILITY OF MODIFICATION OF FINAL JUDGMENT.

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

                    TITLE III--AN END TO REGULATION

     SEC. 301. TRANSITION TO COMPETITIVE PRICING.

       (a) Pricing Flexibility.--
       (1) In general.--The Commission and the States shall 
     provide to telecommunications carriers price flexibility in 
     the rates charged consumers for the provision of 
     telecommunications services within one year after the date of 
     enactment of this Act. The Commission or a State may 
     establish the rate consumers may be charged for services 
     included in the definition of universal service, as well as 
     the contribution, if any, that all carriers must contribute 
     for the preservation and advancement of universal service. 
     Pricing flexibility implemented pursuant to this section for 
     the purpose of allowing a regulated telecommunications 
     provider to respond to competition by repricing services 
     subject to competition shall not have the effect of using 
     noncompetitive services to subsidize competitive services.
       (2) Consumer protection.--The Commission and the States 
     shall ensure that rates for telephone service remain just, 
     reasonable, and affordable as competition develops for 
     telephone exchange service and telephone exchange access 
     service. Until sufficient competition exists in a market, the 
     Commission or a State may establish the rate that a carrier 
     may charge for any such service if such rate is necessary for 
     the protection of consumers. Any such rate shall cease to be 
     regulated whenever the Commission or a State determines that 
     it is no longer necessary for the protection of consumers. 
     The Commission shall establish cost allocation guidelines for 
     facilities owned by an essential telecommunications carrier 
     that are used for the provision of both services included in 
     the definition of universal service and video programming 
     sold by such carrier directly to subscribers, if such 
     allocation is necessary for the protection of consumers.
       (3) Rate-of-return regulation eliminated.--
       (A) In instituting the price flexibility required under 
     paragraph (1) the Commission and the States shall establish 
     alternative forms of regulation for Tier 1 telecommunications 
     carriers that do not include regulation of the rate of return 
     earned by such carrier as part of a plan that provides for 
     any or all of the following--
       (i) the advancement of competition in the provision of 
     telecommunications services;
       (ii) improvements in productivity;
       (iii) improvements in service quality;
       (iv) measures to ensure customers of non-competitive 
     services do not bear the risks associated with the provision 
     of competitive services;
       (v) enhanced telecommunications services for educational 
     institutions; or
       (vi) any other measures Commission or a State, as 
     appropriate, determines to be in the public interest.
       (B) The Commission or a State, as appropriate, may apply 
     such alternative forms of regulation to any other 
     telecommunications carrier that is subject to rate of return 
     regulation under this Act.
       (C) Any such alternative form of regulation--
       (i) shall be consistent with the objectives of preserving 
     and advancing universal service, guaranteeing high quality 
     service, ensuring just, reasonable, and affordable rates, and 
     encouraging economic efficiency; and
       (ii) shall meet such other criteria as the Commission or a 
     State, as appropriate, finds to be consistent with the public 
     interest, convenience, and necessity.
       (D) Nothing in this section shall prohibit the Commission, 
     for interstate services, and the States, for intrastate 
     services, from considering the profitability of 
     telecommunications carriers when using alternative forms of 
     regulation other than rate of return regulation (including 
     price regulation and incentive regulation) to ensure that 
     regulated rates are just and reasonable.
       (b) Transition Plan Required.--If the Commission or a State 
     adopts rules for the distribution of support payments under 
     section 253 of the Communications Act of 1934, as amended by 
     this Act, such rules shall include a transition plan to allow 
     essential telecommunications carriers to provide for an 
     orderly transition from the universal service support 
     mechanisms in existence upon the date of enactment of this 
     Act and the support mechanisms established by the Commission 
     and the States under this Act or the Communications Act of 
     1934 as amended by this Act. Any such transition plan shall--
       (1) provide a phase-in of the price flexibility 
     requirements under subsection (a) for an essential 
     telecommunications carrier that is also a rural telephone 
     company; and
       (2) require the United States Government and the States, 
     where permitted by law, to modify any regulatory requirements 
     (including conditions for the repayment of loans and the 
     depreciation of assets) applicable to carriers designated as 
     essential telecommunications carriers in order to more 
     accurately reflect the conditions that would be imposed in a 
     competitive market for similar assets or services.
       (c) Duty to Provide Subscriber List Information.--
       (1) In general.--A carrier that provides local exchange 
     telephone service shall provide subscriber list information 
     gathered in its capacity as a provider of such service on a 
     timely and unbundled basis, under nondiscriminatory and 
     reasonable rates, terms, and conditions, to any person 
     requesting such information for the purpose of publishing 
     directories in any format.
       (2) Subscriber list information defined.--As used in this 
     subsection, the term ``subscriber list information'' means 
     any information--
       (A) identifying the listed names of subscribers of a 
     carrier and such subscribers' listed telephone numbers, 
     addresses, or primary advertising classifications, as such 
     classifications are assigned at the time of the establishment 
     of service, or any combination of such names, numbers, 
     addresses, or classifications; and
       (B) that the carrier or an affiliate has published, caused 
     to be published, or accepted for publication in a directory 
     in any format.
       (d) Confidentiality.--A telecommunications carrier has a 
     duty to protect the confidentiality of proprietary 
     information of, and relating to, other common carriers and 
     customers, including common carriers reselling the 
     telecommunications services provided by a telecommunications 
     carrier. A telecommunications carrier that receives such 
     information from another carrier for 

[[Page H 9970]]
     purposes of provisioning, billing, or facilitating the resale of its 
     service shall use such information only for such purpose, and 
     shall not use such information for its own marketing efforts. 
     Nothing in this subsection prohibits a carrier from using 
     customer information obtained from its customers, either 
     directly or indirectly through its agents--
       (1) to provide, market, or bill for its services; or
       (2) to perform credit evaluations on existing or potential 
     customers.
       (e) Regulatory Relief.--
       (1) Streamlined procedures for changes in charges, 
     classifications, regulations, or practices.--
       (A) Section 204(a) (47 U.S.C. 204(a)) is amended--
       (i) by striking ``12 months'' the first place it appears in 
     paragraph (2)(A) and inserting ``5 months'';
       (ii) by striking ``effective,'' and all that follows in 
     paragraph (2)(A) and inserting ``effective.''; and
       (iii) by adding at the end thereof the following:
       ``(3) A local exchange carrier may file with the Commission 
     a new or revised charge, classification, regulation, or 
     practice on a streamlined basis. Any such charge, 
     classification, regulation, or practice shall be deemed 
     lawful and shall be effective 7 days (in the case of a 
     reduction in rates) or 15 days (in the case of an increase in 
     rates) after the date on which it is filed with the 
     Commission unless the Commission takes action under paragraph 
     (1) before the end of that 7-day or 15-day period, as is 
     appropriate.''.
       (B) Section 208(b) (47 U.S.C. 208(b)) is amended--
       (i) by striking ``12 months'' the first place it appears in 
     paragraph (1) and inserting ``5 months''; and
       (ii) by striking ``filed,'' and all that follows in 
     paragraph (1) and inserting ``filed.''.
       (2) Extensions of lines under section 214; armis reports.--
     Notwithstanding section 305, the Commission shall permit any 
     local exchange carrier--
       (A) to be exempt from the requirements of section 214 of 
     the Communications Act of 1934 for the extension of any line; 
     and
       (B) to file cost allocation manuals and ARMIS reports 
     annually, to the extent such carrier is required to file such 
     manuals or reports.
       (3) Forebearance authority not limited.--Nothing in this 
     subsection shall be construed to limit the authority of the 
     Commission or a State to waive, modify, or forebear from 
     applying any of the requirements to which reference is made 
     in paragraph (1) under any other provision of this Act or 
     other law.

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

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

     ``SEC. 259. REGULATORY REFORM.

       ``(a) Biennial Review of Regulations.--In every odd-
     numbered year (beginning with 1997), the Commission, with 
     respect to its regulations under this Act, and a Federal-
     State Joint Board established under section 410, for State 
     regulations--
       ``(1) shall review all regulations issued under this Act, 
     or under State law, in effect at the time of the review that 
     apply to operations or activities of providers of any 
     telecommunications services; and
       ``(2) shall determine whether any such regulation is no 
     longer necessary in the public interest as the result of 
     meaningful economic competition between the providers of such 
     service.
       ``(b) Effect of Determination.--The Commission shall repeal 
     any regulation it determines to be no longer necessary in the 
     public interest. The Joint Board shall notify the Governor of 
     any State of any State regulation it determines to be no 
     longer necessary in the public interest.
       ``(c) Classification of Carriers.--In classifying carriers 
     according to 47 CFR 32.11 and in establishing reporting 
     requirements pursuant to 47 CFR part 43 and 47 CFR 64.903, 
     the Commission shall adjust the revenue requirements to 
     account for inflation as of the release date of the 
     Commission's Report and Order in CC Docket No. 91-141, and 
     annually thereafter. This subsection shall take effect on the 
     date of enactment of the Telecommunications Act of 1995.''.
       (b) Elimination of Unnecessary Commission Regulations and 
     Functions.--
       (1) Repeal setting of depreciation rates.--The first 
     sentence of section 220(b) (47 U.S.C. 220(b)) is amended by 
     striking ``shall prescribe for such carriers'' and inserting 
     ``may prescribe, for such carriers as it determines to be 
     appropriate,''.
       (2) Use of independent auditors.--Section 220(c) (47 U.S.C. 
     220(c)) is amended by adding at the end thereof the 
     following: ``The Commission may obtain the services of any 
     person licensed to provide public accounting services under 
     the law of any State to assist with, or conduct, audits under 
     this section. While so employed or engaged in conducting an 
     audit for the Commission under this section, any such person 
     shall have the powers granted the Commission under this 
     subsection and shall be subject to subsection (f) in the same 
     manner as if that person were an employee of the 
     Commission.''.
       (3) Simplification of federal-state coordination process.--
     The Commission shall simplify and expedite the Federal-State 
     coordination process under section 410 of the Communications 
     Act of 1934.
       (4) Privatization of ship radio inspections.--Section 385 
     (47 U.S.C. 385) is amended by adding at the end thereof the 
     following: ``In accordance with such other provisions of law 
     as apply to Government contracts, the Commission may enter 
     into contracts with any person for the purpose of carrying 
     out such inspections and certifying compliance with those 
     requirements, and may, as part of any such contract, allow 
     any such person to accept reimbursement from the license 
     holder for travel and expense costs of any employee 
     conducting an inspection or certification.''.
       (5) Modification of construction permit requirement.--
     Section 319(d) (47 U.S.C. 319(d)) is amended by striking the 
     third sentence and inserting the following: ``The Commission 
     may waive the requirement for a construction permit with 
     respect to a broadcasting station in circumstances in which 
     it deems prior approval to be unnecessary. In those 
     circumstances, a broadcaster shall file any related license 
     application within 10 days after completing construction.''.
       (6) Limitation on silent station authorizations.--Section 
     312 (47 U.S.C. 312) is amended by adding at the end the 
     following:
       ``(g) If a broadcasting station fails to transmit broadcast 
     signals for any consecutive 12-month period, then the station 
     license granted for the operation of that broadcast station 
     expires at the end of that period, notwithstanding any 
     provision, term, or condition of the license to the 
     contrary.''.
       (7) Expediting instructional television fixed service 
     processing.--The Commission shall delegate, under section 
     5(c) of the Communications Act of 1934, the conduct of 
     routine instructional television fixed service cases to its 
     staff for consideration and final action.
       (8) Delegation of equipment testing and certification to 
     private laboratories.--Section 302 (47 U.S.C. 302) is amended 
     by adding at the end the following:
       ``(e) The Commission may--
       ``(1) authorize the use of private organizations for 
     testing and certifying the compliance of devices or home 
     electronic equipment and systems with regulations promulgated 
     under this section;
       ``(2) accept as prima facie evidence of such compliance the 
     certification by any such organization; and
       ``(3) establish such qualifications and standards as it 
     deems appropriate for such private organizations, testing, 
     and certification.''.
       (9) Making license modification uniform.--Section 303(f) 
     (47 U.S.C. 303(f)) is amended by striking ``unless, after a 
     public hearing,'' and inserting ``unless''.
       (10) Permit operation of domestic ship and aircraft radios 
     without license.--Section 307(e) (47 U.S.C. 307(e)) is 
     amended by--
       (A) striking ``service and the citizens band radio 
     service'' in paragraph (1) and inserting ``service, citizens 
     band radio service, domestic ship radio service, domestic 
     aircraft radio service, and personal radio service''; and
       (B) striking ``service' and `citizens band radio service' 
     '' in paragraph (3) and inserting ``service', `citizens band 
     radio service', `domestic ship radio service', `domestic 
     aircraft radio service', and `personal radio service' ''.
       (11) Expedited licensing for fixed microwave service.--
     Section 309(b)(2) (47 U.S.C. 309(b)(2)) is amended by 
     striking subparagraph (A) and redesignating subparagraphs (B) 
     through (G) as (A) through (F), respectively.
       (12) Eliminate fcc jurisdiction over government-owned ship 
     radio stations.--
       (A) Section 305 (47 U.S.C. 305) is amended by striking 
     subsection (b) and redesignating subsections (c) and (d) as 
     (b) and (c), respectively.
       (B) Section 382(2) (47 U.S.C. 382(2)) is amended by 
     striking ``except a vessel of the United States Maritime 
     Administration, the Inland and Coastwise Waterways Service, 
     or the Panama Canal Company,''.
       (13) Modification of amateur radio examination 
     procedures.--
       (A) Section 4(f)(H)(N) (47 U.S.C. 4(f)(4)(B)) is amended by 
     striking ``transmissions, or in the preparation or 
     distribution of any publication used in preparation for 
     obtaining amateur station operator licenses,'' and inserting 
     ``transmission''.
       (B) The Commission shall modify its rules governing the 
     amateur radio examination process by eliminating burdensome 
     record maintenance and annual financial certification 
     requirements.
       (14) Streamline non-broadcast radio license renewals.--The 
     Commission shall modify its rules under section 309 of the 
     Communications Act of 1934 (47 U.S.C. 309) relating to 
     renewal of nonbroadcast radio licenses so as to streamline or 
     eliminate comparative renewal hearings where such hearings 
     are unnecessary or unduly burdensome.

     SEC. 303. REGULATORY FORBEARANCE.

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

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

       ``(a) Regulatory flexibility.--Notwithstanding section 
     332(c)(1)(A) of this Act, the Commission shall forbear from 
     applying any regulation or any provision of this Act to a 
     telecommunications carrier or service, or class of carriers 
     or services, in any or some of its or their geographic 
     markets if the Commission determines that-- 

[[Page H 9971]]

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

     SEC. 304. ADVANCED TELECOMMUNICATIONS INCENTIVES.

       (a) In General.--The Commission and each State commission 
     with regulatory jurisdiction over telecommunications services 
     shall encourage the deployment on a reasonable and timely 
     basis of advanced telecommunications capability to all 
     Americans (including, in particular, elementary and secondary 
     schools and classrooms) by utilizing, in a manner consistent 
     with the public interest, convenience, and necessity, price 
     cap regulation, regulatory forbearance, or other regulating 
     methods that remove barriers to infrastructure investment.
       (b) Inquiry.--The Commission shall, within 2 years after 
     the date of enactment of this Act, and regularly thereafter, 
     initiate a notice of inquiry concerning the availability of 
     advanced telecommunications capability to all Americans 
     (including, in particular, elementary and secondary schools 
     and classrooms) and shall complete the inquiry within 180 
     days after its initiation. In the inquiry, the Commission 
     shall determine whether advanced telecommunications 
     capability is being deployed to all Americans in a reasonable 
     and timely fashion. If the Commission's determination is 
     negative, it shall take immediate action under this section, 
     and it may preempt State commissions that fail to act to 
     ensure such availability.
       (c) Definitions.--For purposes of this section--
       (1) Communications act terms.--Any term used in this 
     section which is defined in the Communications Act of 1934 
     shall have the same meaning as it has in that Act.
       (2) Advanced telecommunications capability.--The term 
     ``advanced telecommunications capability'' means high-speed, 
     switched, broadband telecommunications capability that 
     enables users to originate and receive high-quality voice, 
     data, graphics, and video telecommunications.
       (3) Elementary and secondary schools.--The term 
     ``elementary and secondary schools'' means elementary schools 
     and secondary schools, as defined in paragraphs (14) and 
     (25), respectively, of section 14101 of the Elementary and 
     Secondary Education Act of 1965 (20 U.S.C. 8801).

     SEC. 305. REGULATORY PARITY.

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

     SEC. 306. AUTOMATED SHIP DISTRESS AND SAFETY SYSTEMS.

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

     SEC. 307. TELECOMMUNICATIONS NUMBERING ADMINISTRATION.

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

     ``SEC. 261. TELECOMMUNICATIONS NUMBERING ADMINISTRATION.

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

     SEC. 308. ACCESS BY PERSONS WITH DISABILITIES.

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

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

       ``(a) Definitions.--As used in this section--
       ``(1) Disability.--The term `disability' has the meaning 
     given to it by section 3(2)(A) of the Americans with 
     Disabilities Act of 1990 (42 U.S.C. 12102(2)(A)).
       ``(2) Readily achievable.--The term `readily achievable' 
     has the meaning given to it by section 301(9) of that Act (42 
     U.S.C. 12181(9)).
       ``(b) Manufacturing.--A manufacturer of telecommunications 
     equipment and customer premises equipment shall ensure that 
     the equipment is designed, developed, and fabricated to be 
     accessible to and usable by individuals with disabilities, if 
     readily achievable.
       ``(c) Telecommunications Services.--A provider of 
     telecommunications service shall ensure that the service is 
     accessible to and usable by individuals with disabilities, if 
     readily achievable.
       ``(d) Compatibility.--Whenever the requirements of 
     subsections (b) and (c) are not readily achievable, such a 
     manufacturer or provider shall ensure that the equipment or 
     service is compatible with existing peripheral devices or 
     specialized customer premises equipment commonly used by 
     individuals with disabilities to achieve access, if readily 
     achievable.
       ``(e) Guidelines.--Within 18 months after the date of 
     enactment of the Telecommunications Act of 1995, the 
     Architectural and Transportation Barriers Compliance Board 
     shall develop guidelines for accessibility of 
     telecommunications equipment and customer premises equipment 
     in conjunction with the Commission, the National 
     Telecommunications and Information Administration and the 
     National Institute of Standards and Technology. The Board 
     shall review and update the guidelines periodically.
       ``(f) Closed Captioning.--
       ``(1) In general.--The Commission shall ensure that--
       ``(A) video programming is accessible through closed 
     captions, if readily achievable, except as provided in 
     paragraph (2); and
       ``(B) video programming providers or owners maximize the 
     accessibility of video programming previously published or 
     exhibited through the provision of closed captions, if 
     readily achievable, except as provided in paragraph (2).

[[Page H 9972]]

       ``(2) Exemptions.--Notwithstanding paragraph (1)--
       ``(A) the Commission may exempt programs, classes of 
     programs, locally produced programs, providers, classes of 
     providers, or services for which the Commission has 
     determined that the provision of closed captioning would not 
     be readily achievable to the provider or owner of such 
     programming;
       ``(B) a provider of video programming or the owner of any 
     program carried by the provider shall not be obligated to 
     supply closed captions if such action would be inconsistent 
     with a binding contract in effect on the date of enactment of 
     the Telecommunications Act of 1995 for the remaining term of 
     that contract (determined without regard to any extension of 
     such term), except that nothing in this subparagraph relieves 
     a video programming provider of its obligation to provide 
     services otherwise required by Federal law; and
       ``(C) a provider of video programming or a program owner 
     may petition the Commission for an exemption from the 
     requirements of this section, and the Commission may grant 
     such a petition upon a showing that the requirements 
     contained in this section would not be readily achievable.
       ``(g) Regulations.--The Commission shall, not later than 24 
     months after the date of enactment of the Telecommunications 
     Act of 1995, prescribe regulations to implement this section. 
     The regulations shall be consistent with the guidelines 
     developed by the Architectural and Transportation Barriers 
     Compliance Board in accordance with subsection (e).
       ``(h) Enforcement.--The Commission shall enforce this 
     section. The Commission shall resolve, by final order, a 
     complaint alleging a violation of this section within 180 
     days after the date on which the complaint is filed with the 
     Commission.''.
       (b) Video Description.--Within 18 months after the date of 
     enactment of this Act, the Commission shall commence a study 
     of the feasibility of requiring the use of video descriptions 
     on video programming in order to ensure the accessibility of 
     video programming to individuals with visual impairments. For 
     purposes of this subsection, the term ``video description'' 
     means the insertion of audio narrative descriptions of a 
     television program's key visual elements into natural pauses 
     between the program's dialogue.

     SEC. 309. RURAL MARKETS.

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

     ``SEC. 263. RURAL MARKETS.

       ``(a) State Authority in Rural Markets.--Except as provided 
     in section 251(i)(3), a State may not waive or modify any 
     requirements of section 251, but may adopt statutes or 
     regulations that are no more restrictive than--
       ``(1) to require an enforceable commitment by each 
     competing provider of telecommunications service to offer 
     universal service comparable to that offered by the rural 
     telephone company currently providing service in that service 
     area, and to make such service available within 24 months of 
     the approval date to all consumers throughout that service 
     area on a common carrier basis, either using the applicant's 
     facilities or through its own facilities and resale of 
     services using another carrier's facilities (including the 
     facilities of the rural telephone company), and subject to 
     the same terms, conditions, and rate structure requirements 
     as those applicable to the rural telephone company currently 
     providing universal service;
       ``(2) to require that the State must approve an application 
     by a competing telecommunications carrier to provide services 
     in a market served by a rural telephone company and that 
     approval be based on sufficient written public findings and 
     conclusions to demonstrate that such approval is in the 
     public interest and that there will not be a significant 
     adverse impact on users of telecommunications services or on 
     the provision of universal service;
       ``(3) to encourage the development and deployment of 
     advanced telecommunications and information infrastructure 
     and services in rural areas; or
       ``(4) to protect the public safety and welfare, ensure the 
     continued quality of telecommunications and information 
     services, or safeguard the rights of consumers.
       ``(b) Preemption.--Upon a proper showing, the Commission 
     may preempt any State statute or regulation that the 
     Commission finds to be inconsistent with the Commission's 
     regulations implementing this section, or an arbitrary or 
     unreasonably discriminatory application of such statute or 
     regulation. The Commission shall act upon any bona fide 
     petition filed under this subsection within 180 days of 
     receiving such petition. Pending such action, the Commission 
     may, in the public interest, suspend or modify application of 
     any statute or regulation to which the petition applies.''.

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

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

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

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

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

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

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

       ``(a) Nondiscrimination Safeguards.--Any Bell operating 
     company that provides payphone service or telemessaging 
     service--

[[Page H 9973]]

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

     SEC. 312. DIRECT BROADCAST SATELLITE.

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

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

     SEC. 401. SHORT TITLE.

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

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

       (a) Offenses.--Section 223 (47 U.S.C. 223) is amended--
       ``(1) by striking subsection (a) and inserting in lieu 
     thereof:
       ``(a) Whoever--
       ``(1) in the District of Columbia or in interstate or 
     foreign communications--
       ``(A) by means of telecommunications device knowingly--
       ``(i) makes, creates, or solicits, and
       ``(ii) initiates the transmission of,
     any comment, request, suggestion, proposal, image, or other 
     communication which is obscene, lewd, lascivious, filthy, or 
     indecent, with intent to annoy, abuse, threaten, or harass 
     another person;
       ``(B) makes a telephone call or utilizes a 
     telecommunications device, whether or not conversation or 
     communication ensues, without disclosing his identity and 
     with intent to annoy, abuse, threaten, or harass any person 
     at the called number or who receives the communications;
       ``(C) makes or causes the telephone of another repeatedly 
     or continuously to ring, with intent to harass any person at 
     the called number; or
       ``(D) makes repeated telephone calls or repeatedly 
     initiates communication with a telecommunications device, 
     during which conversation or communication ensues, solely to 
     harass any person at the called number or who receives the 
     communication;
       ``(2) knowingly permits any telecommunications facility 
     under his control to be used for any activity prohibited by 
     paragraph (1) with the intent that it be used for such 
     activity,

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

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

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

     SEC. 403. OBSCENE PROGRAMMING ON CABLE TELEVISION.

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

     SEC. 404. BROADCASTING OBSCENE LANGUAGE ON RADIO.

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

     SEC. 405. SEPARABILITY.

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

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

       Section 228(c)(7) (47 U.S.C. 228(c)(7)) is amended--
       (1) by striking ``or'' at the end of subparagraph (C);
       (2) by striking the period at the end of subparagraph (D) 
     and inserting a semicolon and ``or''; and
       (3) by adding at the end thereof the following: 

[[Page H 9974]]

       ``(E) the calling party being assessed, by virtue of being 
     asked to connect or otherwise transfer to a pay-per-call 
     service, a charge for the call.''.

     SEC. 407. SCRAMBLING OF CABLE CHANNELS FOR NONSUBSCRIBERS.

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

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

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

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

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

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

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

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

       (a) Public, Educational, and Governmental Channels.--
     Section 611(e) (47 U.S.C. 531(e)) is amended by inserting 
     before the period the following: ``, except a cable operator 
     may refuse to transmit any public access program or portion 
     of a public access program which contains obscenity, 
     indecency, or nudity''.
       (b) Cable Channels for Commercial Use.--Section 612(c)(2) 
     (47 U.S.C. 532(c)(2)) is amended by striking ``an operator'' 
     and inserting ``a cable operator may refuse to transmit any 
     leased access program or portion of a leased access program 
     which contains obscenity, indecency, or nudity''.

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

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

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

                 TITLE V--PARENTAL CHOICE IN TELEVISION

     SEC. 501. SHORT TITLE.

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

     SEC. 502. FINDINGS.

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

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

       (a) Sense of Congress on Voluntary Establishment of Rating 
     Code.--It is the sense of Congress--
       (1) to encourage appropriate representatives of the 
     broadcast television industry and the cable television 
     industry to establish in a voluntary manner rules for rating 
     the level of violence or other objectionable content in 
     television programming, including rules for the transmission 
     by television broadcast stations and cable systems of--
       (A) signals containing ratings of the level of violence or 
     objectionable content in such programming; and
       (B) signals containing specifications for blocking such 
     programming;
       (2) to encourage such representatives to establish such 
     rules in consultation with appropriate public interest groups 
     and interested individuals from the private sector; and
       (3) to encourage television broadcasters and cable 
     operators to comply voluntarily with such rules upon the 
     establishment of such rules.
       (b) Requirement for Establishment of Rating Code.--
       (1) In general.--If the representatives of the broadcast 
     television industry and the cable television industry do not 
     establish the rules referred to in subsection (a)(1) by the 
     end of the 1-year period beginning on the date of the 
     enactment of this Act, there shall be established on the day 
     following the end of that period a commission to be known as 
     the Television Rating Commission (hereafter in this section 
     referred to as the ``Television Commission''). The Television 
     Commission shall be an independent establishment in the 
     executive branch as defined under section 104 of title 5, 
     United States Code.
       (2) Members.--
       (A) In general.--The Television Commission shall be 
     composed of 5 members appointed by the President, by and with 
     the advice and consent of the Senate, of whom--
       (i) three shall be individuals who are members of 
     appropriate public interest groups or are interested 
     individuals from the private sector; and
       (ii) two shall be representatives of the broadcast 
     television industry and the cable television industry.
       (B) Nomination.--Individuals shall be nominated for 
     appointment under subparagraph (A) not later than 60 days 
     after the date of the establishment of the Television 
     Commission.
       (D) Terms.--Each member of the Television Commission shall 
     serve until the termination of the commission.
       (E) Vacancies.--A vacancy on the Television Commission 
     shall be filled in the same manner as the original 
     appointment.
       (2) Duties of television commission.--The Television 
     Commission shall establish rules 

[[Page H 9975]]
     for rating the level of violence or other objectionable content in 
     television programming, including rules for the transmission 
     by television broadcast stations and cable systems of--
       (A) signals containing ratings of the level of violence or 
     objectionable content in such programming; and
       (B) signals containing specifications for blocking such 
     programming.
       (3) Compensation of Members.--
       (A) Chairman.--The Chairman of the Television Commission 
     shall be paid at a rate equal to the daily equivalent of the 
     minimum annual rate of basic pay payable for level IV of the 
     Executive Schedule under section 5314 of title 5, United 
     States Code, for each day (including traveltime) during which 
     the Chairman is engaged in the performance of duties vested 
     in the commission.
       (B) Other members.--Except for the Chairman who shall be 
     paid as provided under subparagraph (A), each member of the 
     Television Commission shall be paid at a rate equal to the 
     daily equivalent of the minimum annual rate of basic pay 
     payable for level V of the Executive Schedule under section 
     5315 of title 5, United States Code, for each day (including 
     traveltime) during which the member is engaged in the 
     performance of duties vested in the commission.
       (4) Staff.--
       (A) In general.--The Chairman of the Television Commission 
     may, without regard to the civil service laws and 
     regulations, appoint and terminate an executive director and 
     such other additional personnel as may be necessary to enable 
     the commission to perform its duties. The employment of an 
     executive director shall be subject to confirmation by the 
     commission.
       (B) Compensation.--The Chairman of the Television 
     Commission may fix the compensation of the executive director 
     and other personnel without regard to the provisions of 
     chapter 51 and subchapter III of chapter 53 of title 5, 
     United States Code, relating to classification of positions 
     and General Schedule pay rates, except that the rate of pay 
     for the executive director and other personnel may not exceed 
     the rate payable for level V of the Executive Schedule under 
     section 5316 of such title.
       (5) Consultants.--The Television Commission may procure by 
     contract, to the extent funds are available, the temporary or 
     intermittent services of experts or consultants under section 
     3109 of title 5, United States Code. The commission shall 
     give public notice of any such contract before entering into 
     such contract.
       (6) Funding.--There is authorized to be appropriated to the 
     Commission such sums as are necessary to enable the 
     Commission to carry out its duties under this Act.

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

       (a) Requirement.--Section 303 (47 U.S.C. 303), as amended 
     by this Act, is further amended by adding at the end the 
     following:
       ``(w) Require, in the case of apparatus designed to receive 
     television signals that are manufactured in the United States 
     or imported for use in the United States and that have a 
     picture screen 13 inches or greater in size (measured 
     diagonally), that such apparatus--
       ``(1) be equipped with circuitry designed to enable viewers 
     to block the display of channels during particular time 
     slots; and
       ``(2) enable viewers to block display of all programs with 
     a common rating.''.
       (b) Implementation.--In adopting the requirement set forth 
     in section 303(w) of the Communications Act of 1934, as added 
     by subsection (a), the Federal Communications Commission, in 
     consultation with the television receiver manufacturing 
     industry, shall determine a date for the applicability of the 
     requirement to the apparatus covered by that section.

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

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

      TITLE VI--NATIONAL EDUCATION TECHNOLOGY FUNDING CORPORATION

     SEC. 601. SHORT TITLE.

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

     SEC. 602. FINDINGS; PURPOSE.

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

     SEC. 603. DEFINITIONS.

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

     SEC. 604. ASSISTANCE FOR EDUCATION TECHNOLOGY PURPOSES.

       (a) Receipt by Corporation.--Notwithstanding any other 
     provision of law, in order to carry out the corporate 
     purposes described in section 602(a)(3), the Corporation 
     shall be eligible to receive discretionary grants, contracts, 
     gifts, contributions, or technical assistance from any 
     Federal department or agency, to the extent otherwise 
     permitted by law.
       (b) Agreement.--In order to receive any assistance 
     described in subsection (a) the Corporation shall enter into 
     an agreement with the Federal department or agency providing 
     such assistance, under which the Corporation agrees--
       (1) to use such assistance to provide funding and technical 
     assistance only for activities which the Board of Directors 
     of the Corporation determines are consistent with the 
     corporate purposes described in section 602(a)(3);
       (2) to review the activities of State education technology 
     agencies and other entities receiving assistance from the 
     Corporation to assure that the corporate purposes described 
     in section 602(a)(3) are carried out;
       (3) that no part of the assets of the Corporation shall 
     accrue to the benefit of any member of the Board of Directors 
     of the Corporation, any officer or employee of the 
     Corporation, or any other individual, except as salary or 
     reasonable compensation for services;
       (4) that the Board of Directors of the Corporation will 
     adopt policies and procedures to prevent conflicts of 
     interest;
       (5) to maintain a Board of Directors of the Corporation 
     consistent with section 602(a)(2);
       (6) that the Corporation, and any entity receiving the 
     assistance from the Corporation, are subject to the 
     appropriate oversight procedures of the Congress; and

[[Page H 9976]]

       (7) to comply with--
       (A) the audit requirements described in section 605; and
       (B) the reporting and testimony requirements described in 
     section 606.
       (c) Construction.--Nothing in this title shall be construed 
     to establish the Corporation as an agency or independent 
     establishment of the Federal Government, or to establish the 
     members of the Board of Directors of the Corporation, or the 
     officers and employees of the Corporation, as officers or 
     employees of the Federal Government.

     SEC. 605. AUDITS

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

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

       (a) Annual Report.--Not later than April 30 of each year, 
     the Corporation shall publish an annual report for the 
     preceding fiscal year and submit that report to the President 
     and the Congress. The report shall include a comprehensive 
     and detailed evaluation of the Corporation's operations, 
     activities, financial condition, and accomplishments under 
     this title and may include such recommendations as the 
     Corporation deems appropriate.
       (b) Testimony Before Congress.--The members of the Board of 
     Directors, and officers, of the Corporation shall be 
     available to testify before appropriate committees of the 
     Congress with respect to the report described in subsection 
     (a), the report of any audit made by the Comptroller General 
     pursuant to this title, or any other matter which any such 
     committee may determine appropriate.

                  TITLE VII--MISCELLANEOUS PROVISIONS

     SEC. 701. SPECTRUM AUCTIONS.

       (a) Findings.--The Congress finds that--
       (1) the National Telecommunications and Information 
     Administration of the Department of Commerce recently 
     submitted to the Congress a report entitled ``U.S. National 
     Spectrum Requirements'' as required by section 113 of the 
     National Telecommunications and Information Administration 
     Organization Act (47 U.S.C. 923);
       (2) based on the best available information the report 
     concludes that an additional 179 megahertz of spectrum will 
     be needed within the next ten years to meet the expected 
     demand for land mobile and mobile satellite radio services 
     such as cellular telephone service, paging services, personal 
     communication services, and low earth orbiting satellite 
     communications systems;
       (3) a further 85 megahertz of additional spectrum, for a 
     total of 264 megahertz, is needed if the United States is to 
     fully implement the Intelligent Transportation System 
     currently under development by the Department of 
     Transportation;
       (4) as required by part B of the National 
     Telecommunications and Information Administration 
     Organization Act (47 U.S.C. 921 et seq.) the Federal 
     Government will transfer 235 megahertz of spectrum from 
     exclusive government use to non-governmental or mixed 
     governmental and non-governmental use between 1994 and 2004;
       (5) the Spectrum Reallocation Final Report submitted to 
     Congress under section 113 of the National Telecommunications 
     and Information Administration Organization Act by the 
     National Telecommunications and Information Administration 
     states that, of the 235 megahertz of spectrum identified for 
     reallocation from governmental to non-governmental or mixed 
     use--
       (A) 50 megahertz has already been reallocated for exclusive 
     non-governmental use,
       (B) 45 megahertz will be reallocated in 1995 for both 
     exclusive non-governmental and mixed governmental and non-
     governmental use,
       (C) 25 megahertz will be reallocated in 1997 for exclusive 
     non-governmental use,
       (D) 70 megahertz will be reallocated in 1999 for both 
     exclusive non-governmental and mixed governmental and non-
     governmental use, and
       (E) the final 45 megahertz will be reallocated for mixed 
     governmental and non-governmental use by 2004;
       (6) the 165 megahertz of spectrum that are not yet 
     reallocated, combined with 80 megahertz that the Federal 
     Communications Commission is currently holding in reserve for 
     emerging technologies, are less than the best estimates of 
     projected spectrum needs in the United States;
       (7) the authority of the Federal Communications Commission 
     to assign radio spectrum frequencies using an auction process 
     expires on September 30, 1998;
       (8) a significant portion of the reallocated spectrum will 
     not yet be assigned to non-governmental users before that 
     authority expires;
       (9) the transfer of Federal governmental users from certain 
     valuable radio frequencies to other reserved frequencies 
     could be expedited if Federal governmental users are 
     permitted to accept reimbursement for relocation costs from 
     non-governmental users; and
       (10) non-governmental reimbursement of Federal governmental 
     users relocation costs would allow the market to determine 
     the most efficient use of the available spectrum.
       (b) Extension and Expansion of Auction Authority.--Section 
     309(j) (47 U.S.C. 309(j)) is amended--
       (1) by striking paragraph (1) and inserting in lieu thereof 
     the following:
       ``(1) General authority.--If mutually exclusive 
     applications or requests are accepted for any initial license 
     or construction permit which will involve a use of the 
     electromagnetic spectrum, then the Commission shall grant 
     such license or permit to a qualified applicant through a 
     system of competitive bidding that meets the requirements of 
     this subsection. The competitive bidding authority granted by 
     this subsection shall not apply to licenses or construction 
     permits issued by the Commission for public safety radio 
     services or for licenses or construction permits for new 
     terrestrial digital television services assigned by the 
     Commission to existing terrestrial broadcast licensees to 
     replace their current television licenses.'';
       (2) by striking paragraph (2) and renumbering paragraphs 
     (3) through (13) as (2) through (12), respectively; and
       (3) by striking ``1998'' in paragraph (10), as renumbered, 
     and inserting in lieu thereof ``2000''.
       (c) Reimbursement of Federal Relocation Costs.--Section 113 
     of the National Telecommunications and Information 
     Administration Act (47 U.S.C. 923) is amended by adding at 
     the end the following new subsections:
       ``(f) Relocation of Federal Government Stations.--
       ``(1) In general.--In order to expedite the efficient use 
     of the electromagnetic spectrum and notwithstanding section 
     3302(b) of title 31, United States Code, any Federal entity 
     which operates a Federal Government station may accept 
     reimbursement from any person for the costs incurred by such 
     Federal entity for any modification, replacement, or 
     reissuance of equipment, facilities, operating manuals, 
     regulations, or other expenses incurred by that entity in 
     relocating the operations of its Federal Government station 
     or stations from one or more radio spectrum frequencies to 
     any other frequency or frequencies. Any such reimbursement 
     shall be deposited in the account of such Federal entity in 
     the Treasury of the United States. Funds deposited according 
     to this section shall be available, without appropriation or 
     fiscal year limitation, only for the operations of the 
     Federal entity for which such funds were deposited under this 
     section.
       ``(2) Process for relocation.--Any person seeking to 
     relocate a Federal Government station that has been assigned 
     a frequency within a band allocated for mixed Federal and 
     non-Federal use may submit a petition for such relocation to 
     NTIA. The NTIA shall limit the Federal Government station's 
     operating license to secondary status when the following 
     requirements are met--
       ``(A) the person seeking relocation of the Federal 
     Government station has guaranteed reimbursement through money 
     or in-kind payment of all relocation costs incurred by the 
     Federal entity, including all engineering, equipment, site 
     acquisition and construction, and regulatory fee costs;
       ``(B) the person seeking relocation completes all 
     activities necessary for implementing the relocation, 
     including construction of replacement facilities (if 
     necessary and appropriate) and identifying and obtaining on 
     the Federal entity's behalf new frequencies for use by the 
     relocated Federal Government station (where such station is 
     not relocating to spectrum reserved exclusively for Federal 
     use); and
       ``(C) any necessary replacement facilities, equipment 
     modifications, or other changes 

[[Page H 9977]]
     have been implemented and tested to ensure that the Federal Government 
     station is able to successfully accomplish its purposes.
       ``(3) Right to reclaim.--If within one year after the 
     relocation the Federal Government station demonstrates to the 
     Commission that the new facilities or spectrum are not 
     comparable to the facilities or spectrum from which the 
     Federal Government station was relocated, the person seeking 
     such relocation must take reasonable steps to remedy any 
     defects or reimburse the Federal entity for the costs of 
     returning the Federal Government station to the spectrum from 
     which such station was relocated.
       ``(g) Federal Action to Expedite Spectrum Transfer.--Any 
     Federal Government station which operates on electromagnetic 
     spectrum that has been identified for reallocation for mixed 
     Federal and non-Federal use in the Spectrum Reallocation 
     Final Report shall, to the maximum extent practicable through 
     the use of the authority granted under subsection (f) and any 
     other applicable provision of law, take action to relocate 
     its spectrum use to other frequencies that are reserved for 
     Federal use or to consolidate its spectrum use with other 
     Federal Government stations in a manner that maximizes the 
     spectrum available for non-Federal use. Notwithstanding the 
     timetable contained in the Spectrum Reallocation Final 
     Report, the President shall seek to implement the 
     reallocation of the 1710 to 1755 megahertz frequency band by 
     January 1, 2000. Subsection (c)(4) of this section shall not 
     apply to the extent that a non-Federal user seeks to relocate 
     or relocates a Federal power agency under subsection (f).
       ``(h) Definitions.--For purposes of this section--
       ``(1) Federal entity.--The term `Federal entity' means any 
     Department, agency, or other element of the Federal 
     Government that utilizes radio frequency spectrum in the 
     conduct of its authorized activities, including a Federal 
     power agency.
       ``(2) Spectrum reallocation final report.--The term 
     `Spectrum Reallocation Final Report' means the report 
     submitted by the Secretary to the President and Congress in 
     compliance with the requirements of subsection (a).''.
       (d) Reallocation of Additional Spectrum.--The Secretary of 
     Commerce shall, within 9 months after the date of enactment 
     of this Act, prepare and submit to the President and the 
     Congress a report and timetable recommending the reallocation 
     of the two frequency bands (3625-3650 megahertz and 5850-5925 
     megahertz) that were discussed but not recommended for 
     reallocation in the Spectrum Reallocation Final Report under 
     section 113(a) of the National Telecommunications and 
     Information Administration Organization Act. The Secretary 
     shall consult with the Federal Communications Commission and 
     other Federal agencies in the preparation of the report, and 
     shall provide notice and an opportunity for public comment 
     before submitting the report and timetable required by this 
     section.
       (e) Broadcast Auxiliary Spectrum Relocation.--
       (1) Allocation of spectrum for broadcast auxiliary uses.--
     Within one year after the date of enactment of this Act, the 
     Commission shall allocate the 4635-4685 megahertz band 
     transferred to the Commission under section 113(b) of the 
     National Telecommunications and Information Administration 
     Organization Act (47 U.S.C. 923(b)) for broadcast auxiliary 
     uses.
       (2) Mandatory relocation of broadcast auxiliary uses.--
     Within 7 years after the date of enactment of this Act, all 
     licensees of broadcast auxiliary spectrum in the 2025-2075 
     megahertz band shall relocate into spectrum allocated by the 
     Commission under paragraph (1). The Commission shall assign 
     and grant licenses for use of the spectrum allocated under 
     paragraph (1)--
       (A) in a manner sufficient to permit timely completion of 
     relocation; and
       (B) without using a competitive bidding process.
       (3) Assigning recovered spectrum.--Within 5 years after the 
     date of enactment of this Act, the Commission shall allocate 
     the spectrum recovered in the 2025-2075 megahertz band under 
     paragraph (2) for use by new licensees for commercial mobile 
     services or other similar services after the relocation of 
     broadcast auxiliary licensees, and shall assign such licenses 
     by competitive bidding.

     SEC. 702. RENEWED EFFORTS TO REGULATE VIOLENT PROGRAMMING.

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

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

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

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

       ``(iii) the phone bill shall clearly list the 800 number 
     dialed.
       ``(C) Use of pins to prevent unauthorized use.--A written 
     agreement does not meet the requirements of this paragraph 
     unless it requires the subscriber to use a personal 
     identification number to obtain access to the information 
     provided, and includes instructions on its use.
       ``(D) Exceptions.--Notwithstanding paragraph (7)(C), a 
     written agreement that meets the requirements of this 
     paragraph is not required--
       ``(i) for calls utilizing telecommunications devices for 
     the deaf;

[[Page H 9978]]

       ``(ii) for services provided pursuant to a tariff that has 
     been approved or permitted to take effect by the Commission 
     or a State commission; or
       ``(iii) for any purchase of goods or of services that are 
     not information services.
       ``(E) Termination of service.--On receipt by a common 
     carrier of a complaint by any person that an information 
     provider is in violation of the provisions of this section, a 
     carrier shall--
       ``(i) promptly investigate the complaint; and
       ``(ii) if the carrier reasonably determines that the 
     complaint is valid, it may terminate the provision of service 
     to an information provider unless the provider supplies 
     evidence of a written agreement that meets the requirements 
     of this section.
       ``(F) Treatment of remedies.--The remedies provided in this 
     paragraph are in addition to any other remedies that are 
     available under title V of this Act.
       ``(9) Charges in absence of agreement.--A calling party is 
     charged for a call in accordance with this paragraph if the 
     provider of the information conveyed during the call--
       ``(A) clearly states to the calling party the total cost 
     per minute of the information provided during the call and 
     for any other information or service provided by the provider 
     to which the calling party requests connection during the 
     call; and
       ``(B) receives from the calling party--
       ``(i) an agreement to accept the charges for any 
     information or services provided by the provider during the 
     call; and
       ``(ii) a credit, calling, or charge card number or 
     verification of a prepaid account to which such charges are 
     to be billed.
       ``(10) Definition.--As used in paragraphs (8) and (9), the 
     term `calling card' means an identifying number or code 
     unique to the individual, that is issued to the individual by 
     a common carrier and enables the individual to be charged by 
     means of a phone bill for charges incurred independent of 
     where the call originates.''
       (2) Regulations.--The Federal Communications Commission 
     shall revise its regulations to comply with the amendment 
     made by paragraph (1) not later than 180 days after the date 
     of the enactment of this Act.
       (3) Effective date.--The amendments made by paragraph (1) 
     shall take effect on the date of the enactment of this Act.
       (c) Clarification of ``Pay-Per-Call Services'' Under 
     Telephone Disclosure and Dispute Resolution Act.--Section 
     204(1) of the Telephone Disclosure and Dispute Resolution Act 
     (15 U.S.C. 5714(1)) is amended to read as follows:
       ``(1) The term `pay-per-call services' has the meaning 
     provided in section 228(j)(1) of the Communications Act of 
     1934, except that the Commission by rule may, notwithstanding 
     subparagraphs (B) and (C) of such section, extend such 
     definition to other similar services providing audio 
     information or audio entertainment if the Commission 
     determines that such services are susceptible to the unfair 
     and deceptive practices that are prohibited by the rules 
     prescribed pursuant to section 201(a).''.

     SEC. 704. DISCLOSURE OF CERTAIN RECORDS FOR INVESTIGATIONS OF 
                   TELEMARKETING FRAUD.

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

     SEC. 705. TELECOMMUTING PUBLIC INFORMATION PROGRAM.

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

     SEC. 706. AUTHORITY TO ACQUIRE CABLE SYSTEMS.

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


                      motion offered by mr. bliley

  Mr. BLILEY. Mr. Speaker, pursuant to section 2 of House Resolution 
207, I offer a motion.
  The Clerk read as follows:

  Mr. Bliley moves to strike out all after the enacting clause of the 
Senate bill, S. 652, and insert in lieu thereof the provisions of H.R. 
1555 as passed by the House, as follows:

                                 S. 652

     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; references; 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. Removal of barriers to entry.
``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. 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. Protection for private blocking and screening of offensive 
              material; FCC regulation of computer services 
              prohibited.''.
Sec. 104. Online family empowerment.
Sec. 105. Privacy of customer information.
``Sec. 222. Privacy of customer proprietary network information.''.
Sec. 106. Pole attachments.
Sec. 107. Preemption of franchising authority regulation of 
              telecommunications services.
Sec. 108. Facilities siting; radio frequency emission standards.
Sec. 109. Mobile service access to long distance carriers.
Sec. 110. Freedom from toll fraud.
Sec. 111. Report on means of restricting access to unwanted material in 
              interactive telecommunications systems.
Sec. 112. Telecommunications development fund.
``Sec. 10. Telecommunication development fund.''.
Sec. 113. Report on the use of advanced telecommunications services for 
              medical purposes.
Sec. 114. Telecommuting public information program.
Sec. 115. Authorization of appropriations.

[[Page H 9979]]


             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. Family viewing empowerment.
Sec. 305. Parental choice in television programming.
Sec. 306. Term of licenses.
Sec. 307. Broadcast license renewal procedures.
Sec. 308. Exclusive Federal jurisdiction over direct broadcast 
              satellite service.
Sec. 309. Automated ship distress and safety systems.
Sec. 310. Restrictions on over-the-air reception devices.
Sec. 311. DBS signal security.
Sec. 312. Delegation of equipment testing and certification to private 
              laboratories.

                     TITLE IV--EFFECT ON OTHER LAWS

Sec. 401. Relationship to other laws.
Sec. 402. Preemption of local taxation with respect to DBS services.
Sec. 403. Protection of minors and clarification of current laws 
              regarding communication of obscene and indecent materials 
              through the use of computers.

                          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--
       (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.
       ``(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 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 6 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) 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.
       ``(C) 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.
       ``(D) 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.
       ``(E) 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 

[[Page H 9980]]
     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(c) to 
     provide interLATA services in such State.
       ``(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.
       ``(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 or 
     technologically infeasible.
       ``(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.
       ``(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).

     ``SEC. 243. REMOVAL OF BARRIERS TO ENTRY.

       (a) In General.--No State or local statute or regulation, 
     or other State or local legal requirement, may prohibit or 
     have the effect of prohibiting the ability of any entity to 
     provide interstate or intrastate telecommunications services.
       (b) State and Local Authority.--Nothing in this section 
     shall affect the ability of a State or local government to 
     impose, on a competitively neutral basis and consistent with 
     section 247 (relating to universal service), requirements 
     necessary to preserve and advance universal service, protect 
     the public safety and welfare, ensure the continued quality 
     of telecommunications services, and safeguard the rights of 
     consumers.
       (c) Local Government Authority.--Nothing in this Act 
     affects the authority of a local government to manage the 
     public rights-of-way or to require fair and reasonable 
     compensation from telecommunications providers, on a 
     competitively neutral and nondiscriminatory basis, for use of 
     the rights-of-way on a nondiscriminatory basis, if the 
     compensation required is publicly disclosed by such 
     government.
       (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.

     ``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 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 6 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 (c)(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 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.
       ``(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 

[[Page H 9981]]
     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 244.
     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) 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) 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.
       ``(4) 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.
       ``(5) 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.
       ``(d) Enforcement of Conditions.--
       ``(1) Commission authority.--If at any time after the 
     approval of a verification under subsection (c), 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).
       ``(e) Authority To Provide InterLATA Services.--
       ``(1) Prohibition.--Except as provided in paragraph (2) and 
     subsections (f), (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 (c), and
       ``(B) until the approval of such verification is suspended 
     or revoked by the Commission pursuant to subsection (c).
       ``(f) Exception for Previously Authorized Activities.--
     Subsection (e) 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.
       ``(g) Exceptions for Incidental Services.--Subsection (e) 
     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, and that is located within a State 
     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.

[[Page H 9982]]

       ``(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.
       ``(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 interLATA 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. 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.
       ``(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 interLATA 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 interLATA 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 interLATA 
     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 interLATA 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 interLATA 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 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.

     ``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 
     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;

[[Page H 9983]]

       ``(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 6 months 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.
     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.
       ``(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.
       ``(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.
       ``(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) Interexchange Service.--The rates charged by 
     providers of 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.--
       ``(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.

     ``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 the requirements of paragraph (1) are not readily 
     achievable, the local exchange carrier that deploys the 
     network service 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 
     is not readily achievable.
       ``(3) Readily Achieveable.--The term `readily achievable' 
     has the meaning given it by section 301(g) of the Americans 
     with Disabilities Act 1990 (42 U.S.C. 12102(g)).
       ``(4) 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 

[[Page H 9984]]
     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 media voices, 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.

       ``(a) Prohibition .--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.
       ``(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.

     ``SEC. 252. STUDY.

       ``Within 3 years after the date of enactment of this part, 
     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.''.
       (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) 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 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.
       ``(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) 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

[[Page H 9985]]

       ``(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; and
       ``(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.
       ``(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.
       ``(e) Bell Operating Company Equipment Procurement and 
     Sales.--
       ``(1) Objective basis.--Each Bell operating company and any 
     entity acting on behalf of a 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 

[[Page H 9986]]
     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; and
       ``(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) 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.
       ``(e) 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.
       ``(f) 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.
       ``(g) 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.
       ``(h) 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.
       ``(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.
       ``(i) 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 any wireline 
     telephone exchange service, or wireline telephone exchange 
     service facility, 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 

[[Page H 9987]]
     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.
       ``(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.''.

     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 
     of the Commission thereunder, to a common carrier or service, 
     or class of carriers or services, in any or some of its or 
     their geographic markets, unless the Commission determines 
     that--
       ``(1) enforcement of such provision or regulation is 
     necessary to ensure that the charges, practices, 
     classifications, or regulations by, for, or in 
     connection with that carrier or service are just and 
     reasonable and are not unjustly or unreasonably 
     discriminatory;
       ``(2) enforcement of such regulation or provision is not 
     necessary for the protection of consumers; or
       ``(3) forbearance from applying such provision or 
     regulation is inconsistent 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.
       ``(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.''.

     SEC. 104. ONLINE FAMILY EMPOWERMENT.

       Title II of the Communications Act of 1934 (47 U.S.C. 201 
     et seq.) is amended by adding at the end the following new 
     section:

     ``SEC. 230. PROTECTION FOR PRIVATE BLOCKING AND SCREENING OF 
                   OFFENSIVE MATERIAL; FCC 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 

[[Page H 9988]]
     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 any 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.
       ``(4) 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.''.

     SEC. 105. 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.

[[Page H 9989]]

       (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. 106. 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, when the parties 
     fail to negotiate a mutually agreeable rate, 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 
     to all entities attaching to the pole and therefore apportion 
     the cost of the space other than the usable space equally 
     among all such attaching entities;
       ``(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;
       ``(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
       ``(D) 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. 107. 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) Except as otherwise permitted by sections 611 and 
     612, a franchising authority may not require a cable operator 
     to provide any telecommunications service or facilities, 
     other than intragovernmental telecommunications services, 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. 108. 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 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.
       ``(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.''.
       (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 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. 109. 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:

[[Page H 9990]]

       ``(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. 110. 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--
       ``(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. 111. 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. 112. 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;

[[Page H 9991]]

       ``(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.
       ``(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.''.

     SEC. 113. 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.

     SEC. 114. 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.

     SEC. 115. 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 (other than section 652), 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

[[Page H 9992]]

       ``(iii) has not established a video platform in accordance 
     with section 653.''.
       (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 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, may 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 6 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 
     sports exclusivity (47 C.F.R. 76.67), network nonduplication 
     (47 C.F.R. 76.92 et seq.), and syndicated exclusivity (47 
     C.F.R. 76.151 et seq.);

[[Page H 9993]]

       ``(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) 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.

     ``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.

     ``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 

[[Page H 9994]]
     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 3 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 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) 270 days have elapsed since 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

[[Page H 9995]]

       (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 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 
     and equipment are separately stated and not subsidized by 
     charges for any telecommunications subscription service.
       ``(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.
       ``(d) Waiver for New Network Services.--The Commission 
     shall 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 assist the development or introduction of a new 
     or improved telecommunications subscription service or 
     technology.
       ``(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.
       ``(f) 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

[[Page H 9996]]

       ``(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 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.

       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, and consistent 
     with section 613(a) of the Act, 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 35 
     percent. 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 

[[Page H 9997]]
     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.''.

     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, held, 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--
       ``(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
       ``(B) the Commission determines that not applying 
     subsection (b) would serve the public interest.
       ``(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--
       ``(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.

     SEC. 304. FAMILY VIEWING EMPOWERMENT.

       (a) Findings.--The Congress makes the following findings:
       (1) Television is pervasive in daily life and exerts a 
     powerful influence over the perceptions of viewers, 
     especially children, concerning the society in which we live.
       (2) Children completing elementary school have been exposed 
     to 25 or more hours of television per week and as many as 11 
     hours per day.
       (3) Children completing elementary school have been exposed 
     to an estimated average of 8,000 murders and 100,000 acts of 
     violence on television.
       (4) Studies indicate that the exposure of young children to 
     such levels of violent programming correlates to an increased 
     tendency toward and tolerance of violent and aggressive 
     behavior in later years.
       (5) Studies also suggest that the depiction of other 
     material such as sexual conduct in a cavalier and amoral 
     context may undermine the ability of parents to instill in 
     their children responsible attitudes regarding such 
     activities.
       (6) Studies also suggest that a significant relationship 
     exists between exposure to television violence and antisocial 
     acts, including serious, violent criminal offenses.
       (7) Parents and other viewers are increasingly demanding 
     that they be empowered to make and implement viewing choices 
     for themselves and their families.
       (8) The public is becoming increasingly aware of and 
     concerned about objectionable video programming content.
       (9) The broadcast television industry and other video 
     programmers have a responsibility to assess the impact of 
     their work and to understand the damage that comes from the 
     incessant, repetitive, mindless violence and irresponsible 
     content.
       (10) The broadcast television industry and other video 
     programming distributors should be committed to facilitating 
     viewers' access to the information and capabilities required 
     to prevent the exposure of their children to excessively 
     violent and otherwise objectionable and harmful video 
     programming.
       (11) The technology for implementing individual viewing 
     choices is rapidly advancing and numerous options for viewer 
     control are or soon will be available in the marketplace at 
     affordable prices.
       (12) There is a compelling national interest in ensuring 
     that parents are provided with the information and 
     capabilities required to prevent the exposure of their 
     children to excessively violent and otherwise objectionable 
     and harmful video programming.
       (b) Policy.--It is the policy of the United States to--
       (1) encourage broadcast television, cable, satellite, 
     syndication, other video programming distributors, and 
     relevant related industries (in consultation with appropriate 
     public interest groups and interested individuals from the 
     private sector) to--
       (A) establish a technology fund to encourage television and 
     electronics equipment manufacturers to facilitate the 
     development of technology which would empower parents to 
     block programming they deem inappropriate for their children;
       (B) report to the viewing public on the status of the 
     development of affordable, easy to use blocking technology; 
     and
       (C) establish and promote effective procedures, standards, 
     systems, advisories, or other mechanisms for ensuring that 
     users have easy and complete access to the information 
     necessary to effectively utilize blocking technology; and
       (2) evaluate whether, not later than 1 year after the date 
     of enactment of this Act, industry-wide procedures, 
     standards, systems advisories, or other mechanisms 
     established by the broadcast television, cable satellite, 
     syndication, other video programming distribution, and 
     relevant related industries--
       (A) are informing viewers regarding their options to 
     utilize blocking technology; and
       (B) encouraging the development of blocking technologies.
       (c) GAO Audit.--
       (1) Audit required.--No later than 18 months after the date 
     of the enactment of this Act, the Comptroller General shall 
     submit to Congress an evaluation of--
       (A) the proliferation of new and existing blocking 
     technology;
       (B) the accessibility of information to empower viewing 
     choices; and
       (C) the consumer satisfaction with information and 
     technological solutions.
       (2) Contents of evaluation.--The evaluation shall--
       (A) describe the blocking technology available to viewers 
     including the costs thereof; and
       (B) assess the extent of consumer knowledge and attitudes 
     toward available blocking technologies;
       (3) describe steps taken by broadcast, cable, satellite, 
     syndication, and other video programming distribution 
     services to inform the public and promote the availability of 
     viewer empowerment technologies, devices, and techniques;
       (4) evaluate the degree to which viewer empowerment 
     technology is being utilized;
       (5) assess consumer satisfaction with technological 
     options; and
       (6) evaluate consumer demand for information and 
     technological solutions.

     SEC. 305. PARENTAL CHOICE IN TELEVISION PROGRAMMING.

       (a) Findings.--The Congress makes the following findings:
       (1) Television influences children's perception of the 
     values and behavior that are common and acceptable in 
     society.
       (2) Television station operators, cable television system 
     operators, and video programmers should follow practices in 
     connection with video programming that take into 
     consideration that television broadcast and cable programming 
     has established a uniquely pervasive presence in the lives of 
     American children.
       (3) The average American child is exposed to 25 hours of 
     television each week and some children are exposed to as much 
     as 11 hours of television a day.

[[Page H 9998]]

       (4) Studies have shown that children exposed to violent 
     video programming at a young age have a higher tendency for 
     violent and aggressive behavior later in life than children 
     not so exposed, and that children exposed to violent video 
     programming are prone to assume that acts of violence are 
     acceptable behavior.
       (5) Children in the United States are, on average, exposed 
     to an estimated 8,000 murders and 100,000 acts of violence on 
     television by the time the child completes elementary school.
       (6) Studies indicate that children are affected by the 
     pervasiveness and casual treatment of sexual material on 
     television, eroding the ability of parents to develop 
     responsible attitudes and behavior in their children.
       (7) Parents express grave concern over violent and sexual 
     video programming and strongly support technology that would 
     give them greater control to block video programming in the 
     home that they consider harmful to their children.
       (8) There is a compelling governmental interest in 
     empowering parents to limit the negative influences of video 
     programming that is harmful to children.
       (9) Providing parents with timely information about the 
     nature of upcoming video programming and with the 
     technological tools that allow them easily to block violent, 
     sexual, or other programming that they believe harmful to 
     their children is the least restrictive and most narrowly 
     tailored means of achieving that compelling governmental 
     interest.
       (b) Establishment of Television Rating Code.--Section 303 
     of the Act (47 U.S.C. 303) is amended by adding at the end 
     the following:
       ``(v) Prescribe--
       ``(1) on the basis of recommendations from an advisory 
     committee established by the Commission that is composed of 
     parents, television broadcasters, television programming 
     producers, cable operators, appropriate public interest 
     groups, and other interested individuals from the private 
     sector and that is fairly balanced in terms of political 
     affiliation, the points of view represented, and the 
     functions to be performed by the committee, guidelines and 
     recommended procedures for the identification and rating of 
     video programming that contains sexual, violent, or other 
     indecent material about which parents should be informed 
     before it is displayed to children, provided that nothing in 
     this paragraph shall be construed to authorize any rating of 
     video programming on the basis of its political or religious 
     content; and
       ``(2) with respect to any video programming that has been 
     rated (whether or not in accordance with the guidelines and 
     recommendations prescribed under paragraph (1)), rules 
     requiring distributors of such video programming to transmit 
     such rating to permit parents to block the display of video 
     programming that they have determined is inappropriate for 
     their children.''.
       (c) Requirement for Manufacture of Televisions That Block 
     Programs.--Section 303 of the Act, as amended by subsection 
     (a), is further amended by adding at the end the following:
       ``(w) Require, in the case of apparatus designed to receive 
     television signals that are manufactured in the United States 
     or imported for use in the United States and that have a 
     picture screen 13 inches or greater in size (measured 
     diagonally), that such apparatus be equipped with circuitry 
     designed to enable viewers to block display of all programs 
     with a common rating, except as otherwise permitted by 
     regulations pursuant to section 330(c)(4).''.
       (d) Shipping or Importing of Televisions That Block 
     Programs.--
       (1) Regulations.--Section 330 of the Communications Act of 
     1934 (47 U.S.C. 330) is amended--
       (A) by redesignating subsection (c) as subsection (d); and
       (B) by adding after subsection (b) the following new 
     subsection (c):
       ``(c)(1) Except as provided in paragraph (2), no person 
     shall ship in interstate commerce, manufacture, assemble, or 
     import from any foreign country into the United States any 
     apparatus described in section 303(w) of this Act except in 
     accordance with rules prescribed by the Commission pursuant 
     to the authority granted by that section.
       ``(2) This subsection shall not apply to carriers 
     transporting apparatus referred to in paragraph (1) without 
     trading it.
       ``(3) The rules prescribed by the Commission under this 
     subsection shall provide for the oversight by the Commission 
     of the adoption of standards by industry for blocking 
     technology. Such rules shall require that all such apparatus 
     be able to receive the rating signals which have been 
     transmitted by way of line 21 of the vertical blanking 
     interval and which conform to the signal and blocking 
     specifications established by industry under the supervision 
     of the Commission.
       ``(4) As new video technology is developed, the Commission 
     shall take such action as the Commission determines 
     appropriate to ensure that blocking service continues to be 
     available to consumers. If the Commission determines that an 
     alternative blocking technology exists that--
       ``(A) enables parents to block programming based on 
     identifying programs without ratings,
       ``(B) is available to consumers at a cost which is 
     comparable to the cost of technology that allows parents to 
     block programming based on common ratings, and
       ``(C) will allow parents to block a broad range of programs 
     on a multichannel system as effectively and as easily as 
     technology that allows parents to block programming based on 
     common ratings,

     the Commission shall amend the rules prescribed pursuant to 
     section 303(w) to require that the apparatus described in 
     such section be equipped with either the blocking technology 
     described in such section or the alternative blocking 
     technology described in this paragraph.''.
       (2) Conforming amendment.--Section 330(d) of such Act, as 
     redesignated by subsection (a)(1), is amended by striking 
     ``section 303(s), and section 303(u)'' and inserting in lieu 
     thereof ``and sections 303(s), 303(u), and 303(w)''.
       (e) Applicability and Effective Dates.--
       (1) Applicability of rating provision.--The amendment made 
     by subsection (b) of this section shall take effect 1 year 
     after the date of enactment of this Act, but only if the 
     Commission determines, in consultation with appropriate 
     public interest groups and interested individuals from the 
     private sector, that distributors of video programming have 
     not, by such date--
       (A) established voluntary rules for rating video 
     programming that contains sexual, violent, or other indecent 
     material about which parents should be informed before it is 
     displayed to children, and such rules are acceptable to the 
     Commission; and
       (B) agreed voluntarily to broadcast signals that contain 
     ratings of such programming.
       (2) Effective date of manufacturing provision.--In 
     prescribing regulations to implement the amendment made by 
     subsection (c), the Federal Communications Commission shall, 
     after consultation with the television manufacturing 
     industry, specify the effective date for the applicability of 
     the requirement to the apparatus covered by such amendment, 
     which date shall not be less than one year after the date of 
     the enactment of this Act.

     SEC. 306. 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. 307. 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)''.

[[Page H 9999]]

       (c) Effective Date.--The amendments made by this section 
     shall apply to any application for renewal pending or filed 
     on or after the date of enactment of this Act.

     SEC. 308. 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. 309. AUTOMATED SHIP DISTRESS AND SAFETY SYSTEMS.

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

     SEC. 310. 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. 311. 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''.

     SEC. 312. 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.''.
                     TITLE IV--EFFECT ON OTHER LAWS

     SEC. 401. RELATIONSHIP TO OTHER LAWS.

       (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.
       (b) Antitrust Laws.--Nothing in this Act or in the 
     amendments made by 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) 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) 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.
       (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.
       (e) Inapplicability of Final Judgment to Wireless 
     Successors.--No person shall be considered to be an 
     affiliate, a successor, or an assign of a Bell operating 
     company under section III 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 U.S.C. 45) to the extent that such section 
     5 applies to unfair methods of competition.
       (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.

     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.

     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--
       (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''.
                          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 

[[Page H 10000]]
     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. For purposes of section 242, 
     such term shall not include the provision of video 
     programming directly to subscribers.
       ``(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''.
              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 motion was agreed to.
  The Senate bill was ordered to be read a third time, was read the 
third time, and passed.
  The title of the Senate bill was amended so as to read: ``A bill 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.''
  A motion to reconsider was laid on the table.

[[Page H 10001]]



                        appointment of conferees

  Mr. BLILEY. Mr. Speaker, pursuant to section 2 of H. Res. 207, I 
offer a motion.
  The Clerk read as follows:

       Mr. Bliley moves that the House insist on its amendment to 
     the Senate bill, S. 652, and request a conference with the 
     Senate thereon.

  The motion was agreed to.


          motion to instruct conferees offered by mr. dingell

  Mr. DINGELL. Mr. Speaker, I offer a motion.
  The Clerk read as follows:

       Mr. Dingell moves that the managers on the part of the 
     House at the conference on the disagreeing votes of the two 
     Houses on the House amendments to the bill S. 652 be 
     instructed to insist upon those provisions of the Senate bill 
     and House amendment thereto which open all telecommunications 
     markets to fair competition as expeditiously as possible in 
     order to achieve the goal of maximizing consumer choices and 
     benefits.

  The SPEAKER pro tempore. The gentleman from Michigan [Mr. Dingell] 
will be recognized for 30 minutes, and the gentleman from Virginia [Mr. 
Bliley] will be recognized for 30 minutes.
  The Chair recognizes the gentleman from Michigan [Mr. Dingell].
  Mr. DINGELL. Mr. Speaker, I yield myself 3 minutes.
   Mr. Speaker, just prior to our adjournment last August, the House 
approved H.R. 1555, the Communications Act of 1995. That landmark 
legislation breaks down the barriers that inhibit competition in the 
telecommunications industries. I am offering this motion to instruct 
conferees to ensure that the consumer benefits that will result from 
the enactment of this bill will occur as quickly as possible.
   Mr. Speaker, it should come as no surprise that many of the 
companies that are currently shielded from competition would like to 
preserve their privileged position in the marketplace. As long as they 
are able to limit competition, however, they deprive consumers of the 
benefits that competition will bring. And these benefits are many: 
Lower prices, improved products and services, more rapid innovation, 
and greater sensitivity to consumer needs. We passed H.R. 1555 to 
expedite the delivery of these benefits to consumers. They should not 
be held hostage to the interests of companies that would rather compete 
with their lobbyists instead of in the marketplace.
  I urge my colleagues to join me in support of this motion. It is my 
hope that the House and Senate conferees can resolve their differences 
quickly, and that we can send the President a bill that he can sign 
without further delay. To do otherwise would deprive our constituents 
of the many benefits that competition can bring.
  I urge the adoption of the motion.

                              {time}  1715

   Mr. Speaker, I reserve the balance of my time.
  Mr. BLILEY. Mr. Speaker, I yield myself 3 minutes.
  Mr. Speaker, I rise in support of the motion to instruct conferees 
offered by the gentleman from Michigan.
  I agree with the gentleman that the core principle of 
telecommunications reform must be the concept of promoting competition 
as rapidly as possible. It is competition, and not government-mandated 
monopolies, which will best serve the public interest.
  Our job in crafting legislation of this nature is to ensure that 
proper guidelines are installed during the transition period as we move 
towards full and open competition. It is true that the two bodies of 
Congress have produced slightly different approaches, but these 
approaches are based on an identical premise--that full competition 
must be the end result of any attempts at telecommunications reform.
  Mr. Speaker, it is also true that bringing about telecommunications 
policy reform will benefit the American consumer. Telecommunications 
reform legislation will help increase technological innovation, lower 
prices for services, increase choices of products and services, create 
high-quality jobs, and increase the quality of living for our citizens. 
We should not forget that this bill is intended to promote consumer 
welfare.
  I look forward to working with conferees in producing a bill that the 
President will sign and I thank my good friend from Michigan, Mr. 
Dingell, for his support and help throughout this process.
  I urge all Members to support the motion to instruct conferees.
  Thank you, Mr. Speaker.
  Mr. Speaker, I reserve the balance of my time.
  Mr. DINGELL. Mr. Speaker, I yield 3 minutes to the distinguished 
gentleman from Massachusetts [Mr. Markey].
  Mr. MARKEY. Mr. Speaker, I thank the gentleman from Michigan for 
yielding me this time.
  Working in a bipartisan fashion with the members of the majority, it 
is our hope that we will be able to craft a historic telecommunications 
bill which will open all telecommunications marketplaces to full and 
open competition.
  As we all know, each of these marketplaces, from cable to long-
distance to local telephone markets, have been subject to historic 
monopoly practices. This bill will open them wide open and permanently.
  We now go with the naming of the conferees to negotiate with the 
Senate, and it is our full intention that out of this historic 
negotiation we will be able to produce a bill back out here on the 
floor of the House within a very short period of time ready for a vote 
and then presentation to the President of the United States for his 
signature. That is the sincere, deep-felt conviction on the part of all 
who have participated in this process, and let us hope that the naming 
of the conferees today begins a very short process toward the 
culmination of that proceeding.
  The gentleman from Virginia [Mr. Bliley], the gentleman from Texas 
[Mr. Fields], the gentleman from Michigan [Mr. Dingell], and I, and all 
the members of the committee have the full intent of making that the 
final product of our efforts this year.
  Mr. BLILEY. Mr. Speaker, I yield 3 minutes to the gentleman from 
Texas [Mr. Fields], the chairman of the Subcommittee on 
Telecommunications and Finance, a man who has been totally consumed by 
this legislation and who has done an outstanding job.
  (Mr. FIELDS of Texas asked and was given permission to revise and 
extend his remarks.)
  Mr. FIELDS of Texas. Mr. Speaker, I stand up here recognizing that is 
a watershed, historic moment as we enter this conference, and I want to 
build upon something that my good friend, the gentleman from 
Massachusetts [Mr. Markey], said just a moment ago. We are here after 
2\3/4\ years of very hard work, and I think it is a real tribute to 
each of the people who are here on the floor, particularly the 
gentleman from Michigan [Mr. Dingell], the gentleman from Massachusetts 
[Mr. Markey], our chairman, the gentleman from Virginia [Mr. Bliley], 
and others who have labored so hard in a bipartisan way to fashion a 
piece of legislation that catapults this country into the 21st century, 
moving us from the industrial age into the information age.
  I am proud to say that we have worked trying very hard to keep the 
playing field level, not to be protelephone, procable, prosatellite, 
probroadcast, but to be proconsumer. I think that is what this bill 
really does.
  As I understand the thrust of the motion to instruct by my good 
friend, the gentleman from Michigan [Mr. Dingell], it talks about 
consumer choice in competition, and that is really what the promise and 
the potential of this legislation really holds, the ability of a 
consumer to have choice, that choice emanating from competition. We 
think there will be some real benefits.

  We think that the consumer will have better and newer technology. We 
think there will be new applications for existing technology, and we 
think those benefits will be brought to the consumer at a lower per 
capita cost. That is the potential of what is there.
  There is not a more important piece of legislation that comes before 
this body. I am convinced that, when we come to agreement with the 
Senate, when this legislation is taken to the President, a piece of 
legislation that the President will sign, we will see tens of billions 
of dollars invested in new infrastructure and new technology. We will 
see tens of thousands of new jobs created.
  So this is important work. This is work that our committee is ready 
to engage in with the Senate.
  Mr. BLILEY. Mr. Speaker, we have no further requests for time, and I 
yield back the balance of my time.

[[Page H 10002]]

  Mr. DINGELL. Mr. Speaker, we have no further requests for time, and I 
yield back the balance of my time.
  The SPEAKER pro tempore. (Mr. LaHood). Without objection, the 
previous question is ordered on the motion to instruct.
  There was no objection.
  The SPEAKER pro tempore. The question is on the motion to instruct 
offered by the gentleman from Michigan [Mr. Dingell].
  The motion to instruct was agreed to.
  A motion to reconsider was laid on the table.
  The SPEAKER pro tempore. Without objection, the Chair appoints the 
following conferees:
  Conferees on S. 652, Telecommunications Act:
  From the Committee on Commerce, for consideration of the Senate bill, 
and the House amendment, and modifications committed to conference: 
Messrs. Bliley, Fields of Texas, Oxley, White, Dingell, Markey, 
Boucher, Ms. Eshoo, and Mr. Rush.
  Provided, Mr. Pallone is appointed in lieu of Mr. Boucher solely for 
consideration of section 205 of the Senate bill.
  As additional conferees, for consideration of sections 1-6, 101-04, 
106-07, 201, 204-05, 221-25, 301-05, 307-311, 401-02, 405-06, 410, 601-
06, 703, and 705 of the Senate bill, and title I of the House 
amendment, and modifications committed to conference: Messrs. Schaefer, 
Barton of Texas, Hastert, Paxon, Klug, Frisa, Stearns, Brown of Ohio, 
Gordon, and Mrs. Lincoln.
  As additional conferees, for consideration of sections 102, 202-03, 
403, 407-09 and 706 of the Senate bill, and title II of the House 
amendment, and modifications committed to conference: Messrs. Schaefer, 
Hastert, and Frisa.
  As additional conferees, for consideration of sections 105, 206, 302, 
306, 312, 501-05, and 701-02 of the Senate bill, and title III of the 
House amendment, and modifications committed to conference: Messrs. 
Stearns, Paxon, and Klug.
  As additional conferees, for consideration of sections 7-8, 226, 404, 
and 704 of the Senate bill, and titles IV-V of the House amendment, and 
modifications committed to conference: Messrs. Schaefer, Hastert, and 
Klug.
  As additional conferees, for consideration of title VI of the House 
amendment, and modifications committed to conference: Messrs. Schaefer, 
Barton of Texas, and Klug.
  As additional conferees from the Committee on the Judiciary, for 
consideration of the Senate bill (except sections 1-6, 101-04, 106-07, 
201, 204-05, 221-25, 301-05, 307-311, 401-02, 405-06, 410, 601-06, 703, 
and 705), and of the House amendment (except title I), and 
modifications committed to conference: Messrs. Hyde, Moorhead, 
Goodlatte, Buyer, Flanagan, Conyers, Schroeder and Bryant of Texas.
  As additional conferees, for consideration of sections 1-6, 101-04, 
106-07, 201, 204-05, 221-25, 301-05, 307-311, 401-02, 405-06, 410, 601-
06, 703, and 705 of the Senate bill, and title I of the House 
amendment, and modifications committed to conference: Messrs. Hyde, 
Moorhead, Goodlatte, Buyer, Flanagan, Gallegly, Barr, Hoke, Conyers, 
Mrs. Schroeder, Messrs. Berman, Bryant of Texas, Scott, and Ms. 
Jackson-Lee.
  There was no objection.

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