[House Report 104-223]
[From the U.S. Government Publishing Office]



104th Congress                                                   Report
                        HOUSE OF REPRESENTATIVES

 1st Session                                                    104-223
_______________________________________________________________________


 
PROVIDING FOR THE CONSIDERATION OF H.R. 1555, THE COMMUNICATIONS ACT OF 
                                  1995

                                _______


   August 1, 1995.--Referred to the House Calendar and ordered to be 
                                printed

_______________________________________________________________________


   Mr.  Linder, from the Committee on Rules, submitted the following

                              R E P O R T

                       [To accompany H. Res. 207]
    The Committee on Rules, having had under consideration 
House Resolution 207, by a nonrecord vote, report the same to 
the House with the recommendation that the resolution be 
adopted.

               brief summary of provisions of resolution

    The resolution provides for the consideration of H.R. 1555, 
the Communications Act of 1995 under a modified closed rule. 
The rule provides 90 minutes of general debate divided equally 
between the chairman and ranking minority member of the 
Committees on Commerce and the Judiciary.
    The rule waives section 302(f) of the Budget Act 
(prohibiting consideration of legislation which exceeds a 
committee's allocation of a new budget authority) against 
consideration of the bill.
    The rule makes in order as an original bill for the purpose 
of amendment, the amendment in the nature of a substitute 
recommended by the Committee on Commerce and provides that the 
amendment be considered as read. The rule waives clause 5(a) of 
rule XXI (prohibiting appropriations in an authorization bill) 
and section 302(f) of the Budget Act (prohibiting consideration 
of legislation which exceeds a committee's allocation of new 
budget authority) against the Committee amendment in the nature 
of a substitute.
    The rule provides first for the consideration of the 
amendment printed in Part 1 of the Rules Committee report, by a 
Member designated in the report, debatable for 30 minutes, 
equally divided between a proponent and a opponent. The rule 
also provided that the amendment be considered as read. The 
amendment shall not be subject to amendment or to a demand for 
a division of the question in the House or Committee of the 
Whole. if that amendment is adopted, the provisions of the 
bill, as amended, shall be considered as the original bill for 
the purpose of further amendment under the five-minute rule.
    The rule also makes in order only those amendments printed 
in Part 2 of the Rules Committee report, only in the order 
specified, only by the Members designated in the report and 
only debatable for the time specified in the report, equally 
divided between a proponent and an opponent. These amendments 
shall be considered as read and shall not be subject to 
amendment (except as otherwise provided in the report) or to a 
demand for a division of the question in the House or Committee 
of the Whole. In addition, the rule waives all points of order 
against the amendments printed in the report. The rule permits 
the Chairman of the Committee of the Whole to postpone and 
cluster votes on amendments. The rule provides for one motion 
to recommit, with or without instructions.
    Finally, the rule provides for the consideration of S. 652 
in the House and waives points of order against the Senate bill 
and against its consideration. The rule allows for a motion to 
strike all after the enacting clause of S. 652 and insert in 
lieu thereof the provisions of H.R. 1555 as passed by the 
House, and waives all points of order against that motion.
    The rule also allows for a motion that the House insist on 
its amendments to S. 652 and request a conference with the 
Senate.
                            committee votes

    Pursuant to clause 2(l)(2)(B) of House rule XI the results 
of each rollcall vote on an amendment or motion to report, 
together with the names of those voting for and against, are 
printed below:

Rules Committee rollcall No. 175

    Date: August 1, 1995.
    Measure: Rule for consideration of H.R. 1555, 
Communications Act of 1995.
    Motion By: Mr. Frost.
    Summary of Motion: Make in order an amendment by Mr. Moran 
to prohibit preemption of State or local regulations regarding 
the construction of mobile communications facilities.
    Results: Rejected, 5 to 6.
    Vote by Member: Quillen--Nay; Dreier--Nay; Goss--Yea; 
Linder--Nay; Pryce--Yea; Diaz-Balart--Yea; McInnis--Nay; 
Waldholtz--Nay; Beilenson--Yea; Frost--Yea; Solomon--Nay.

 Summary of Amendments Made in Order Under the Rule for H.R. 1555, The 
                       Communications Act of 1995

Part 1

    1-1. Bliley (VA) or a designee--Manager's amendment. (30 
minutes)

Part 2 (listed in the order in which they appear in this report)

    2-1. Stupak (MI)--Amend section 101 to preserve the 
authority of local governments to control behavior in the 
public rights of way and to receive fair compensation for use 
of public property by commercial enterprises. (10 minutes)
    2-2. Conyers (MI)--Amend section 101 to require prior 
approval by the Attorney General before a Bell operating 
company may enter into long distance or manufacturing. Both the 
Justice department and the FCC would review the State 
certification of ``checklist'' compliance. Justice may prevent 
Bell entry if it finds there is a ``dangerous probability'' 
that the Bell company would ``successfully use market power to 
substantially impede competition'' in the market it seeks to 
enter. There is no provision for judicial review of a decision 
by the Attorney General. (30 minutes)
    2-3. Cox (CA), Wyden (OR)--Insert a new section 104 
protecting from liability those providers and users seeking to 
clean up the Internet and prohibiting the FCC from imposing 
content or any regulation of the Internet. (20 minutes)
    2-4. Markey (MA), Shays (CT)--Amend various parts of 
section 202 dealing with cable rate and services regulation. 
(30 minutes)
    2-5. Markey (MA)--Amend section 302 by striking sec. 
337(b)(1) and inserting a new sec. 337(b)(1) which limits 
television and broadcasting ownership to 35% of an aggregate 
national audience reach. (30 minutes)
    2-6. Markey (MA), Burton (IN), Spratt (SC, Moran (VA)--
Insert a new section 304 requiring the establishment of a 
television rating code and the manufacturing, shipping and 
importing of televisions that can block programs (through the 
use of a ``V-Chip''). (30 minutes)
    2-7. Coburn (OK)--Insert a new section 304 dealing with 
family viewing empowerment and the encouragement of the 
broadcasting industries in rating, evaluating and reporting on 
the programs made available to the viewing public. (30 minutes)
                                 PART 1
                         [Manager's Amendments]
 (Page & line nos. refer to Bill as Reported by the Commerce Committee)
                               [1. Resale]
  Page 5, beginning on line 19, strike paragraph (3) and insert 
the following:
          ``(3) Resale.--The duty--
                  ``(A) to offer services, elements, features, 
                functions, and capabilities for resale at 
                wholesale rates, and
                  ``(B) not to prohibit, and not to impose 
                unreasonable or discriminatory conditions or 
                limitations on, the resale of such services, 
                elements, features, functions, and 
                capabilities, on a bundled or unbundled basis, 
                except that a carrier may prohibit a reseller 
                that obtains at wholesale rates a service, 
                element, feature, function, or capability that 
                is available at retail only to a category of 
                subscribers from offering such service, 
                element, feature, function, or capability to a 
                different category of subscribers.
        For the purposes of this paragraph, wholesale rates 
        shall be determined on the basis of retail rates for 
        the service, element, feature, function, or capability 
        provided, excluding the portion thereof attributable to 
        any marketing, billing, collection, and other costs 
        that are avoided by the local exchange carrier.
                           [2. Entry Schedule]
  Page 10, line 1, strike ``15 months'' and insert ``6 
months''.
  Page 12, line 13, strike ``245(d)'' and insert ``245(c)''.
  Page 19, line 19, strike ``18 months'' and insert ``6 
months''.
  Page 20, line 5, strike ``(d)(2)'' and insert ``(c)(2)''.
  Page 24, beginning on line 1, strike subsection (c) through 
page 26, line 5, (and redesignate the succeeding subsections 
accordingly).
  Page 27, line 25, strike ``(d)'' and insert ``(c)''.
  Page 28, line 25, strike ``(g) and (h)'' and insert ``(f), 
(g), and (h)''.
  Page 29, lines 9 and 12, strike ``subsection (d)'' and insert 
``subsection (c)''.
  Page 29, line 14, strike ``subsection (f)'' and insert 
``subsection (e)''.
  Page 30, line 2, strike ``(f)'' and insert ``(e)''.
  Page 40, line 20, strike ``270 days'' and insert ``6 
months''.
                     [3. State/Federal Coordination]
  Page 10, after line 8, insert the following new subparagraph 
(and redesignate the succeeding subparagraphs accordingly):
                  ``(B) Accommodation of state access 
                regulations.--In prescribing and enforcing 
                regulations to implement the requirements of 
                this section, the Commission shall not preclude 
                the enforcement of any regulation, order, or 
                policy of a State commission that--
                          ``(i) establishes access and 
                        interconnection obligations of local 
                        exchange carriers;
                          ``(ii) is consistent with the 
                        requirements of this section; and
                          ``(iii) does not substantially 
                        prevent the Commission from fulfilling 
                        the requirements of this section and 
                        the purposes of this part.
  Page 14, strike lines 1 through 7 and insert the following:
  ``(h) Avoidance of Redundant Regulations.--
          ``(1) Commission regulations.--Nothing in this 
        section shall be construed to prohibit the Commission 
        from enforcing regulations prescribed prior to the date 
        of enactment of this part in fulfilling the 
        requirements of this section, to the extent that such 
        regulations are consistent with the provisions of this 
        section.
          ``(2) State regulations.--Nothing in this section 
        shall be construed to prohibit any State commission 
        from enforcing regulations prescribed prior to the date 
        of enactment of this part, or from prescribing 
        regulations after such date of enactment, in fulfilling 
        the requirements of this section, if (A) such 
        regulations are consistent with the provisions of this 
        section, and (B) the enforcement of such regulations 
        has not been precluded under subsection (b)(4)(B).
  Page 42, after line 2, insert the following new sentence:
        In establishing criteria and procedures pursuant to 
        this paragraph, the Commission shall take into account 
        and accommodate, to the extent reasonable and 
        consistent with the purposes of this section, the 
        criteria and procedures established for such purposes 
        by State commissions prior to the effective date of the 
        Commission's criteria and procedures under this 
        section.
  Page 45, strike lines 12 through 18 and insert the following:
  ``(g) Avoidance of Redundant Regulations.--
          ``(1) Commission regulations.--Nothing in this 
        section shall be construed to prohibit the Commission 
        from enforcing regulations prescribed prior to the date 
        of enactment of this part in fulfilling the 
        requirements of this section, to the extent that such 
        regulations are consistent with the provisions of this 
        section.
          ``(2) State regulations.--Nothing in this section 
        shall be construed to prohibit any State commission 
        from enforcing regulations prescribed prior to the 
        effective date of the Commission's criteria and 
        procedures under this section in fulfilling the 
        requirements of this section, or from prescribing 
        regulations after such date, to the extent such 
        regulations are consistent--
                  ``(A) with the provisions of this section; 
                and
                  ``(B) after such effective date, with such 
                criteria and procedures.
  Page 77, line 18, insert ``of the Commission'' after ``any 
regulation''.
                          [4. Joint Marketing]
  Page 12, beginning on line 15, strike paragraph (2) through 
page 13, line 2, and insert the following:
          ``(2) Competing providers.--Paragraph (1) shall not 
        prohibit joint marketing of services, elements, 
        features, functions, or capabilities acquired from a 
        Bell operating company by an unaffiliated provider 
        that, together with its affiliates, has in the 
        aggregate less than 2 percent of the access lines 
        installed nationwide.
                     [5. Rural Telephone Exemption]
  Page 13, beginning on line 10, strike ``, technologically 
infeasible'' and all that follows through line 11 and insert 
``or technologically infeasible.''.
  Page 13, beginning on line 12, strike subsections (f) and (g) 
through line 24 and insert the following:
  (f) Exemption for Certain Rural Telephone Companies.--
Subsections (a) through (d) of this section shall not apply to 
a rural telephone company, until such company has received a 
bona fide request for services, elements, features or 
capabilities described in subsections (a) through (d). 
Following a bona fide request to the carrier and notice of the 
request to the State commission, the State commission shall 
determine within 120 days whether the request would be unduly 
economically burdensome, be technologically infeasible, and be 
consistent with subsections (b)(1) through (b)(5), (c)(1), and 
(c)(3) of section 247. The exemption provided by this 
subsection shall not apply if such carrier provides video 
programming services over its telephone exchange facilities in 
its telephone service area.
  (g) Time and Manner of Compliance.--The State shall 
establish, after determining pursuant to subsection (f) that a 
bona fide request is not economically burdensome, is 
technologically feasible, and is consistent with subsections 
(b)(1) through (b)(5), (c)(1), and (c)(3) of section 247, an 
implementation schedule for compliance with such approved bona 
fide request that is consistent in time and manner with 
Commission rules.
  Page 45, line 3, strike ``Interstate'', and on line 4, strike 
``interstate''.
                    [6. Management of Rights-of-Way]
  Page 14, line 21, strike ``Nothing in this'' and insert the 
following:
          ``(1) In general.--Nothing in this
  Page 14, line 22, strike ``or local''.
  Page 15, after line 6, insert the following new paragraph:
          ``(2) Management of rights-of-way.--Nothing in 
        subsection (a) of this section shall affect the 
        authority of a local government to manage the public 
        rights-of-way or to require fair and reasonable 
        compensation from telecommunications providers, on a 
        competitively neutral and nondiscriminatory basis, for 
        use of public rights-of-way on a nondiscriminatory 
        basis, if the compensation required is publicly 
        disclosed by such government.''.
                    [7. Facilities-Based Competitor]
  Page 20, beginning on line 8, strike subparagraph (A) through 
line 18 and insert the following:
                  ``(A) Presence of a facilities-based 
                competitor.--An agreement that has been 
                approved under section 244 specifying the terms 
                and conditions under which the Bell operating 
                company is providing access and interconnection 
                to its network facilities in accordance with 
                section 242 for the network facilities of an 
                unaffiliated competing provider of telephone 
                exchange service (as defined in section 
                3(44)(A), but excluding exchange access 
                service) to residential and business 
                subscribers. For the purpose of this 
                subparagraph, such telephone exchange service 
                may be offered by such competing provider 
                either exclusively over its own telephone 
                exchange service facilities or predominantly 
                over its own telephone exchange service 
                facilities in combination with the resale of 
                the services of another carrier. For the 
                purpose of this subparagraph, services provided 
                pursuant to subpart K of part 22 of the 
                Commission's regulations (47 C.F.R. 22.901 et 
                seq.) shall not be considered to be telephone 
                exchange services.
  Page 21, line 2, strike ``243'' and insert ``244''.
           [8. Entry Consultations with the Attorney General]
  Page 27, after line 3, insert the following new paragraph:
                  ``(3) Consultation with the attorney 
                general.--The Commission shall notify the 
                Attorney General promptly of any verification 
                submitted for approval under this subsection, 
                and shall identify any verification that, if 
                approved, would relieve the Bell operating 
                company and its affiliates of the prohibition 
                concerning manufacturing contained in section 
                271(a). Before making any determination under 
                this subsection, the Commission shall consult 
                with the Attorney General, and if the Attorney 
                General submits any comments in writing, such 
                comments shall be included in the record of the 
                Commission's decision. In consulting with and 
                submitting comments to the Commission under 
                this paragraph, the Attorney General shall 
                provide to the Commission an evaluation of 
                whether there is a dangerous probability that 
                the Bell operating company or its affiliates 
                would successfully use market power to 
                substantially impede competition in the market 
                such company seeks to enter. In consulting with 
                and submitting comments to the Commission under 
                this paragraph with respect to a verification 
                that, if approved, would relieve the Bell 
                operating company and its affiliates of the 
                prohibition concerning manufacturing contained 
                in section 271(a), the Attorney General shall 
                also provide to the Commission an evaluation of 
                whether there is a dangerous probability that 
                the Bell operating company or its affiliates 
                would successfully use market power to 
                substantially impede competition in 
                manufacturing.
  Page 27, lines 4 and 12, redesignate paragraphs (3) and (4) 
as paragraphs (4) and (5), respectively.
                       [9. Out-of-Region Services]
  Page 31, after line 21, insert the following new subsection 
(and redesignate the succeeding subsections accordingly):
  ``(h) Out-of-Region Services.--When a Bell operating company 
and its affiliates have obtained Commission approval under 
subsection (c) for each State in which such Bell operating 
company and its affiliates provide telephone exchange service 
on the date of enactment of this part, such Bell operating 
company and any affiliate thereof may, notwithstanding 
subsection (e), provide interLATA services--
          ``(1) for calls originating in, and billed to a 
        customer in, a State in which neither such company nor 
        any affiliate provided telephone exchange service on 
        such date of enactment; or
          ``(2) for calls originating outside the United 
        States.
  Page 30, beginning on line 20, strike ``between local access 
and transport areas within a cable system franchise area'' and 
insert ``and that is located within a State''.
                        [10. Separate Subsidiary]
  At each of the following locations insert ``interLATA'' 
before ``information'': Page 33, line 8; page 35, lines 9, 16, 
and 20; and page 36, lines 3 and 10.
  Page 33, line 11, after the period insert the following: 
``The requirements of this section shall not apply with respect 
to (1) activities in which a Bell operating company or 
affiliate may engage pursuant to section 245(f), or (2) 
incidental services in which a Bell operating company or 
affiliate may engage pursuant to section 245(g), other than 
services described in paragraph (4) of such section.''.
  Page 37, beginning on line 20, strike subsection (k) and 
insert the following:
  ``(k) Sunset.--The provisions of this section shall cease to 
apply to any Bell operating company in any State 18 months 
after the date such Bell operating company is authorized 
pursuant to section 245(c) to provide interLATA 
telecommunications services in such State.
        [11. Pricing Flexibility: Prohibition on Cross Subsidies]
  Page 42, after line 22, insert the following new paragraph:
          ``(4) Response to competition.--Pricing flexibility 
        implemented pursuant to this subsection shall permit 
        regulated telecommunications providers to respond 
        fairly to competition by repricing services subject to 
        competition, but shall not have the effect of changing 
        prices for noncompetitive services or using 
        noncompetitive services to subsidize competitive 
        services.
                           [12. Accessibility]
  Page 47, beginning on line 17, strike ``whenever an undue 
burden'' and all that follows through ``paragraph (1),'' on 
line 19 and insert the following: ``whenever the requirements 
of paragraph (1) are not readily achievable,''.
  Page 47, beginning on line 24, strike ``would result in'' and 
all that follows through line 25 and insert the following: ``is 
not readily achievable.''.
  Page 48, beginning on line 1, strike paragraphs (3) and (4) 
through page 49, line 7, and insert the following:
          ``(3) Readily achievable.--The term `readily 
        achievable' has the meaning given it by section 301(g) 
        of the Americans with Disabilities Act of 1990 (42 
        U.S.C. 12102(g)).
  Page 49, line 8, redesignate paragraph (5) as paragraph (4).
                           [13. Media Voices]
  Page 50, line 5, strike ``points of view'' and insert ``media 
voices''.
                             [14. Slamming]
  Page 50, line 23, insert ``(a) Prohibition.--'' before ``No 
common carrier'', and on page 51, after line 4, insert the 
following new subsection:
  ``(b) Liability for Charges.--Any common carrier that 
violates the verification procedures described in subsection 
(a) and that collects charges for telephone exchange service or 
telephone toll service from a subscriber shall be liable to the 
carrier previously selected by the subscriber in an amount 
equal to all charges paid by such subscriber after such 
violation, in accordance with such procedures as the Commission 
may prescribe. The remedies provided by this subsection are in 
addition to any other remedies available by law.
                          [15. Study Frequency]
  Page 51, line 6, strike ``At least once every three years,'' 
and insert ``Within 3 years after the date of enactment of this 
part,''.
                       [16. Territorial Exemption]
  Page 51, beginning on line 23, strike section 253 through 
page 52, line 6, and conform the table of contents accordingly.
  Page 51, insert close quotation marks and a period at the end 
of line 22.
                 [17. Manufacturing Separate Subsidiary]
  Page 54, beginning on line 5, strike subsections (a) and (b) 
and insert the following:
  ``(a) Limitations on Manufacturing.--
          ``(1) Access and interconnection required.--It shall 
        be unlawful for a Bell operating company, directly or 
        through an affiliate, to manufacture telecommunications 
        equipment or customer premises equipment, until the 
        Commission has approved under section 245(c) 
        verifications that such Bell operating company, and 
        each Bell operating company with which it is 
        affiliated, are in compliance with the access and 
        interconnection requirements of part II of this title.
          ``(2) Separate subsidiary required.--During the first 
        18 months after the expiration of the limitation 
        contained in paragraph (1), a Bell operating company 
        may engage in manufacturing telecommunications 
        equipment or customer premises equipment only through a 
        separate subsidiary established and operated in 
        accordance with section 246.
  ``(b) Collaboration; Research and Royalty Agreements.--
          ``(1) Collaboration.--Subsection (a) shall not 
        prohibit a Bell operating company from engaging in 
        close collaboration with any manufacturer of customer 
        premises equipment or telecommunications equipment 
        during the design and development of hardware, 
        software, or combinations thereof related to such 
        equipment.
          ``(2) Research; royalty agreements.--Subsection (a) 
        shall not prohibit a Bell operating company, directly 
        or through an subsidiary, from--
                  ``(A) engaging in any research activities 
                related to manufacturing, and
                  ``(B) entering into royalty agreements with 
                manufacturers of telecommunications equipment.
          [18. Manufacturing by Standard-Setting Organizations]
  Page 56, beginning on line 1, strike subsection (d) through 
page 57, line 11, and insert the following:
  ``(d) Manufacturing Limitations for Standard-Setting 
Organizations.--
          ``(1) Application to bell communications research or 
        manufacturers.--Bell Communications Research, Inc., or 
        any successor entity or affiliate--
                  ``(A) shall not be considered a Bell 
                operating company or a successor or assign of a 
                Bell operating company at such time as it is no 
                longer an affiliate of any Bell operating 
                company; and
                  ``(B) notwithstanding paragraph (3), shall 
                not engage in manufacturing telecommunications 
                equipment or customer premises equipment as 
                long as it is an affiliate of more than 1 
                otherwise unaffiliated Bell operating company 
                or successor or assign of any such company.
        Nothing in this subsection prohibits Bell 
        Communications Research, Inc., or any successor entity, 
        from engaging in any activity in which it is lawfully 
        engaged on the date of enactment of this subsection. 
        Nothing provided in this subsection shall render Bell 
        Communications Research, Inc., or any successor entity, 
        a common carrier under title II of this Act. Nothing in 
        this section restricts any manufacturer from engaging 
        in any activity in which it is lawfully engaged on the 
        date of enactment of this section.
          ``(2) Proprietary information.--Any entity which 
        establishes standards for telecommunications equipment 
        or customer premises equipment, or generic network 
        requirements for such equipment, or certifies 
        telecommunications equipment, or customer premises 
        equipment, shall be prohibited from releasing or 
        otherwise using any proprietary information, designated 
        as such by its owner, in its possession as a result of 
        such activity, for any purpose other than purposes 
        authorized in writing by the owner of such information, 
        even after such entity ceases to be so engaged.
          ``(3) Manufacturing safeguards.--(A) Except as 
        prohibited in paragraph (1), and subject to paragraph 
        (6), any entity which certifies telecommunications 
        equipment or customer premises equipment manufactured 
        by an unaffiliated entity shall only manufacture a 
        particular class of telecommunications equipment or 
        customer premises equipment for which it is undertaking 
        or has undertaken, during the previous 18 months, 
        certification activity for such class of equipment 
        through a separate affiliate.
          ``(B) Such separate affiliate shall--
                  ``(i) maintain books, records, and accounts 
                separate from those of the entity that 
                certifies such equipment, consistent with 
                generally acceptable accounting principles;
                  ``(ii) not engage in any joint manufacturing 
                activities with such entity; and
                  ``(iii) have segregated facilities and 
                separate employees with such entity.
          ``(C) Such entity that certifies such equipment 
        shall--
                  ``(i) not discriminate in favor of its 
                manufacturing affiliate in the establishment of 
                standards, generic requirements, or product 
                certification;
                  ``(ii) not disclose to the manufacturing 
                affiliate any proprietary information that has 
                been received at any time from an unaffiliated 
                manufacturer, unless authorized in writing by 
                the owner of the information; and
                  ``(iii) not permit any employee engaged in 
                product certification for telecommunications 
                equipment or customer premises equipment to 
                engage jointly in sales or marketing of any 
                such equipment with the affiliated 
                manufacturer.
          ``(4) Standard-setting entities.--Any entity which is 
        not an accredited standards development organization 
        and which establishes industry-wide standards for 
        telecommunications equipment or customer premises 
        equipment, or industry-wide generic network 
        requirements for such equipment, or which certifies 
        telecommunications equipment or customer premises 
        equipment manufactured by an unaffiliated entity, 
        shall--
                  ``(A) establish and publish any industry-wide 
                standard for, industry-wide generic requirement 
                for, or any substantial modification of an 
                existing industry-wide standard or industry-
                wide generic requirement for, 
                telecommunications equipment or customer 
                premises equipment only in compliance with the 
                following procedure:
                          ``(i) such entity shall issue a 
                        public notice of its consideration of a 
                        proposed industry-wide standard or 
                        industry-wide generic requirement;
                          ``(ii) such entity shall issue a 
                        public invitation to interested 
                        industry parties to fund and 
                        participate in such efforts on a 
                        reasonable and nondiscriminatory basis, 
                        administered in such a manner as not to 
                        unreasonably exclude any interested 
                        industry party;
                          ``(iii) such entity shall publish a 
                        text for comment by such parties as 
                        have agreed to participate in the 
                        process pursuant to clause (ii), 
                        provide such parties a full opportunity 
                        to submit comments, and respond to 
                        comments from such parties;
                          ``(iv) such entity shall publish a 
                        final text of the industry-wide 
                        standard or industry-wide generic 
                        requirement, including the comments in 
                        their entirety, of any funding party 
                        which requests to have its comments so 
                        published;
                          ``(v) such entity shall attempt, 
                        prior to publishing a text for comment, 
                        to agree with the funding parties as a 
                        group on a mutually satisfactory 
                        dispute resolution process which such 
                        parties shall utilize as their sole 
                        recourse in the event of a dispute on 
                        technical issues as to which there is 
                        disagreement between any funding party 
                        and the entity conducting such 
                        activities, except that if no dispute 
                        resolution process is agreed to by all 
                        the parties, a funding party may 
                        utilize the dispute resolution 
                        procedures established pursuant to 
                        paragraph (5) of this subsection;
                  ``(B) engage in product certification for 
                telecommunications equipment or customer 
                premises equipment manufactured by unaffiliated 
                entities only if--
                          ``(i) such activity is performed 
                        pursuant to published criteria;
                          ``(ii) such activity is performed 
                        pursuant to auditable criteria; and
                          ``(iii) such activity is performed 
                        pursuant to available industry-accepted 
                        testing methods and standards, where 
                        applicable, unless otherwise agreed 
                        upon by the parties funding and 
                        performing such activity;
                  ``(C) not undertake any actions to monopolize 
                or attempt to monopolize the market for such 
                services; and
                  ``(D) not preferentially treat its own 
                telecommunications equipment or customer 
                premises equipment, or that of its affiliate, 
                over that of any other entity in establishing 
                and publishing industry-wide standards or 
                industry-wide generic requirements for, and in 
                certification of, telecommunications equipment 
                and customer premises equipment.
          ``(5) Alternate dispute resolution.--Within 90 days 
        after the date of enactment of this section, the 
        Commission shall prescribe a dispute resolution process 
        to be utilized in the event that a dispute resolution 
        process is not agreed upon by all the parties when 
        establishing and publishing any industry-wide standard 
        or industry-wide generic requirement for 
        telecommunications equipment or customer premises 
        equipment, pursuant to paragraph (4)(A)(v). The 
        Commission shall not establish itself as a party to the 
        dispute resolution process. Such dispute resolution 
        process shall permit any funding party to resolve a 
        dispute with the entity conducting the activity that 
        significantly affects such funding party's interests, 
        in an open, nondiscriminatory, and unbiased fashion, 
        within 30 days after the filing of such dispute. Such 
        disputes may be filed within 15 days after the date the 
        funding party receives a response to its comments from 
        the entity conducting the activity. The Commission 
        shall establish penalties to be assessed for delays 
        caused by referral of frivolous disputes to the dispute 
        resolution process. The overall intent of establishing 
        this dispute resolution provision is to enable all 
        interested funding parties an equal opportunity to 
        influence the final resolution of the dispute without 
        significantly impairing the efficiency, timeliness, and 
        technical quality of the activity.
          ``(6) Sunset.--The requirements of paragraphs (3) and 
        (4) shall terminate for the particular relevant 
        activity when the Commission determines that there are 
        alternative sources of industry-wide standards, 
        industry-wide generic requirements, or product 
        certification for a particular class of 
        telecommunications equipment or customer premises 
        equipment available in the United States. Alternative 
        sources shall be deemed to exist when such sources 
        provide commercially viable alternatives that are 
        providing such services to customers. The Commission 
        shall act on any application for such a determination 
        within 90 days after receipt of such application, and 
        shall receive public comment on such application.
          ``(7) Administration and enforcement authority.--For 
        the purposes of administering this subsection and the 
        regulations prescribed thereunder, the Commission shall 
        have the same remedial authority as the Commission has 
        in administering and enforcing the provisions of this 
        title with respect to any common carrier subject to 
        this Act.
          ``(8) Definitions.--For purposes of this subsection:
                  ``(A) The term `affiliate' shall have the 
                same meaning as in section 3 of this Act, 
                except that, for purposes of paragraph (1)(B)--
                          ``(i) an aggregate voting equity 
                        interest in Bell Communications 
                        Research, Inc., of at least 5 percent 
                        of its total voting equity, owned 
                        directly or indirectly by more than 1 
                        otherwise unaffiliated Bell operating 
                        company, shall constitute an affiliate 
                        relationship; and
                          ``(ii) a voting equity interest in 
                        Bell Communications Research, Inc., by 
                        any otherwise unaffiliated Bell 
                        operating company of less than 1 
                        percent of Bell Communications 
                        Research's total voting equity shall 
                        not be considered to be an equity 
                        interest under this paragraph.
                  ``(B) The term `generic requirement' means a 
                description of acceptable product attributes 
                for use by local exchange carriers in 
                establishing product specifications for the 
                purchase of telecommunications equipment, 
                customer premises equipment, and software 
                integral thereto.
                  ``(C) The term `industry-wide' means 
                activities funded by or performed on behalf of 
                local exchange carriers for use in providing 
                wireline local exchange service whose combined 
                total of deployed access lines in the United 
                States constitutes at least 30 percent of all 
                access lines deployed by telecommunications 
                carriers in the United States as of the date of 
                enactment.
                  ``(D) The term `certification' means any 
                technical process whereby a party determines 
                whether a product, for use by more than one 
                local exchange carrier, conforms with the 
                specified requirements pertaining to such 
                product.
                  ``(E) The term `accredited standards 
                development organization' means an entity 
                composed of industry members which has been 
                accredited by an institution vested with the 
                responsibility for standards accreditation by 
                the industry.
                       [19. Electronic Publishing]
  Page 64, after line 21, insert the following new subsection 
(and redesignate the succeeding subsections accordingly):
  ``(d) Bell Operating Company Requirement.--A Bell operating 
company under common ownership or control with a separated 
affiliate or electronic publishing joint venture shall provide 
network access and interconnections for basic telephone service 
to electronic publishers at just and reasonable rates that are 
tariffed (so long as rates for such services are subject to 
regulation) and that are not higher on a per-unit basis than 
those charged for such services to any other electronic 
publisher or any separated affiliate engaged in electronic 
publishing.
  Page 69, line 4, strike ``wireline telephone exchange 
service'' and insert ``any wireline telephone exchange service, 
or wireline telephone exchange service facility,''.
                         [20. Alarm Monitoring]
  Page 71, beginning on line 17, strike ``1995, except that'' 
and all that follows through line 21 and insert ``1995.''.
                       [21. CMRS Joint Marketing]
  Page 78, line 17, strike the close quotation marks and 
following period and after line 17, insert the following new 
subsection:
  ``(c) Commercial Mobile Service Joint Marketing.--
Notwithstanding section 22.903 of the Commission's regulations 
(47 C.F.R. 22.903) or any other Commission regulation, or any 
judicial decree or proposed judicial decree, a Bell operating 
company or any other company may, except as provided in 
sections 242(d) and 246 as they relate to wireline service, 
jointly market and sell commercial mobile services in 
conjunction with telephone exchange service, exchange access, 
intraLATA telecommunications service, interLATA 
telecommunications service, and information services.''.
                     [22. Online Family Empowerment]
  Page 78, before line 18, insert the following new section 
(and redesignate the succeeding sections and conform the table 
of contents accordingly):
SEC. 104. ONLINE FAMILY EMPOWERMENT.

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

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

  ``(a) Findings.--The Congress finds the following:
          ``(1) The rapidly developing array of Internet and 
        other interactive computer services available to 
        individual Americans represent an extraordinary advance 
        in the availability of educational and informational 
        resources to our citizens.
          ``(2) These services offer users a great degree of 
        control over the information that they receive, as well 
        as the potential for even greater control in the future 
        as technology develops.
          ``(3) The Internet and other interactive computer 
        services offer a forum for a true diversity of 
        political discourse, unique opportunities for cultural 
        development, and myriad avenues for intellectual 
        activity.
          ``(4) The Internet and other interactive computer 
        services have flourished, to the benefit of all 
        Americans, with a minimum of government regulation.
          ``(5) Increasingly Americans are relying on 
        interactive media for a variety of political, 
        educational, cultural, and entertainment services.
  ``(b) Policy.--It is the policy of the United States to--
          ``(1) promote the continued development of the 
        Internet and other interactive computer services and 
        other interactive media;
          ``(2) preserve the vibrant and competitive free 
        market that presently exists for the Internet and other 
        interactive computer services, unfettered by State or 
        Federal regulation;
          ``(3) encourage the development of technologies which 
        maximize user control over the information received by 
        individuals, families, and schools who use the Internet 
        and other interactive computer services;
          ``(4) remove disincentives for the development and 
        utilization of blocking and filtering technologies that 
        empower parents to restrict their children's access to 
        objectionable or inappropriate online material; and
          ``(5) ensure vigorous enforcement of criminal laws to 
        deter and punish trafficking in obscenity, stalking, 
        and harassment by means of computer.
  ``(c) Protection for `Good Samaritan' Blocking and Screening 
of Offensive Material.--No provider or user of interactive 
computer services shall be treated as the publisher or speaker 
of any information provided by an information content provider. 
No provider or user of interactive computer services shall be 
held liable on account of--
          ``(1) any action voluntarily taken in good faith to 
        restrict access to material that the provider or user 
        considers to be obscene, lewd, lascivious, filthy, 
        excessively violent, harassing, or otherwise 
        objectionable, whether or not such material is 
        constitutionally protected; or
          ``(2) any action taken to make available to 
        information content providers or others the technical 
        means to restrict access to material described in 
        paragraph (1).
  ``(d) FCC Regulation of the Internet and Other Interactive 
Computer Services Prohibited.--Nothing in this Act shall be 
construed to grant any jurisdiction or authority to the 
Commission with respect to content or other regulation of the 
Internet or other interactive computer services.
  ``(e) Effect on Other Laws.--
          ``(1) No effect on criminal law.--Nothing in this 
        section shall be construed to impair the enforcement of 
        section 223 of this Act, chapter 71 (relating to 
        obscenity) or 110 (relating to sexual exploitation of 
        children) of title 18, United States Code, or any other 
        Federal criminal statute.
          ``(2) No effect on intellectual property law.--
        Nothing in this section shall be construed to limit or 
        expand any law pertaining to intellectual property.
          ``(3) In general.--Nothing in this section shall be 
        construed to prevent any State from enforcing any State 
        law that is consistent with this section.
  ``(f) Definitions.--As used in this section:
          ``(1) Internet.--The term `Internet' means the 
        international computer network of both Federal and non-
        Federal interoperable packet switched data networks.
          ``(2) Interactive computer service.--The term 
        `interactive computer service' means any information 
        service that provides computer access to multiple users 
        via modem to a remote computer server, including 
        specifically a service that provides access to the 
        Internet.
          ``(3) Information content provider.--The term 
        `information content provider' means any person or 
        entity that is responsible, in whole or in part, for 
        the creation or development of information provided by 
        the Internet or any other interactive computer service, 
        including any person or entity that creates or develops 
        blocking or screening software or other techniques to 
        permit user control over offensive material.''.
                            [23. Forbearance]
  Page 77, line 20, strike ``if the Commission'' and insert 
``unless the Commission''.
  Page 77, line 23, and page 78, line 4, strike ``is not 
necessary'' and insert ``is necessary''.
  Page 78, line 4, strike ``and'' and insert ``or''.
  Page 78, line 6, strike ``is consistent'' and insert ``is 
inconsistent''.
                         [24. Pole Attachments]
  Page 87, line 1, after ``ensuring that'' insert the 
following: , when the parties fail to negotiate a mutually 
agreeable rate,''.
  Page 87, line 9, insert ``to'' after ``benefit'', and on line 
11, strike ``attachments'' and insert ``attaching entities''.
  Page 87, line 16, strike ``and''; on line 17, redesignate 
subparagraph (C) as subparagraph (D); and after line 16 insert 
the following new subparagraph:
          ``(C) recognize that the pole, duct, conduit, or 
        right-of-way has a value that exceeds costs and that 
        value shall be reflected in any rate; and
               [25. Required Telecommunications Services]
  Page 89, line 21, strike ``A franchising'' and insert 
``Except as otherwise permitted by sections 611 and 612, a 
franchising''.
  Page 89, line 23, before ``as a condition'' insert the 
following: ``, other than intragovernmental telecommunications 
services,''.
                         [26. Facilities Siting]
  Page 90, beginning on line 11, strike paragraph (7) through 
line 6 on page 93 and insert the following:
          ``(7) Facilities siting policies.--(A) Within 180 
        days after enactment of this paragraph, the Commission 
        shall prescribe and make effective a policy to 
        reconcile State and local regulation of the siting of 
        facilities for the provision of commercial mobile 
        services or unlicensed services with the public 
        interest in fostering competition through the rapid, 
        efficient, and nationwide deployment of commercial 
        mobile services or unlicensed services.
          ``(B) Pursuant to subchapter III of chapter 5, title 
        5, United States Code, the Commission shall establish a 
        negotiated rulemaking committee to negotiate and 
        develop a proposed policy to comply with the 
        requirements of this paragraph. Such committee shall 
        include representatives from State and local 
        governments, affected industries, and public safety 
        agencies.
          ``(C) The policy prescribed pursuant to this 
        subparagraph shall take into account--
                  ``(i) the need to enhance the coverage and 
                quality of commercial mobile services and 
                unlicensed services and foster competition in 
                the provision of commercial mobile services and 
                unlicensed services on a timely basis;
                  ``(ii) the legitimate interests of State and 
                local governments in matters of exclusively 
                local concern, and the need to provide State 
                and local government with maximum flexibility 
                to address such local concerns, while ensuring 
                that such interests do not prohibit or have the 
                effect of precluding any commercial mobile 
                service or unlicensed service;
                  ``(iii) the effect of State and local 
                regulation of facilities siting on interstate 
                commerce;
                  ``(iv) the administrative costs to State and 
                local governments of reviewing requests for 
                authorization to locate facilities for the 
                provision of commercial mobile services or 
                unlicensed services; and
                  ``(v) the need to provide due process in 
                making any decision by a State or local 
                government or instrumentality thereof to grant 
                or deny a request for authorization to locate, 
                construct, modify, or operate facilities for 
                the provision of commercial mobile services or 
                unlicensed services.
          ``(D) The policy prescribed pursuant to this 
        paragraph shall provide that no State or local 
        government or any instrumentality thereof may regulate 
        the placement, construction, modification, or operation 
        of such facilities on the basis of the environmental 
        effects of radio frequency emissions, to the extent 
        that such facilities comply with the Commission's 
        regulations concerning such emissions.
          ``(E) The proceeding to prescribe such policy 
        pursuant to this paragraph shall supercede any 
        proceeding pending on the date of enactment of this 
        paragraph relating to preemption of State and local 
        regulation of tower siting for commercial mobile 
        services, unlicensed services, and providers thereof. 
        In accordance with subchapter III of chapter 5, title 
        5, United States Code, the Commission shall 
        periodically establish a negotiated rulemaking 
        committee to review the policy prescribed by the 
        Commission under this paragraph and to recommend 
        revisions to such policy.
          ``(F) For purposes of this paragraph, the term 
        `unlicensed service' means the offering of 
        telecommunications using duly authorized devices which 
        do not require individual licenses.''.
  Page 94, line 2, strike ``cost-based''.
                [27. Telecommunications Development Fund]
  Page 101, after line 23, insert the following new section 
(and redesignate the succeeding section and conform the table 
of contents accordingly):
SEC. 111. TELECOMMUNICATIONS DEVELOPMENT FUND.

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

``SEC. 10. TELECOMMUNICATIONS DEVELOPMENT FUND.

  ``(a) Purpose of Section.--It is the purpose of this 
section--
          ``(1) to promote access to capital for small 
        businesses in order to enhance competition in the 
        telecommunications industry;
          ``(2) to stimulate new technology development, and 
        promote employment and training; and
          ``(3) to support universal service and promote 
        delivery of telecommunications services to underserved 
        rural and urban areas.
  ``(b) Establishment of Fund.--There is hereby established a 
body corporate to be known as the Telecommunications 
Development Fund, which shall have succession until dissolved. 
The Fund shall maintain its principal office in the District of 
Columbia and shall be deemed, for purposes of venue and 
jurisdiction in civil actions, to be a resident and citizen 
thereof.
  ``(c) Board of Directors.--
          ``(1) Composition of board; chairman.--The Fund shall 
        have a Board of Directors which shall consist of 7 
        persons appointed by the Chairman of the Commission. 
        Four of such directors shall be representative of the 
        private sector and three of such directors shall be 
        representative of the Commission, the Small Business 
        Administration, and the Department of the Treasury, 
        respectively. The Chairman of the Commission shall 
        appoint one of the representatives of the private 
        sector to serve as chairman of the Fund within 30 days 
        after the date of enactment of this section, in order 
        to facilitate rapid creation and implementation of the 
        Fund. The directors shall include members with 
        experience in a number of the following areas: finance, 
        investment banking, government banking, communications 
        law and administrative practice, and public policy.
          ``(2) Terms of appointed and elected members.--The 
        directors shall be eligible to serve for terms of 5 
        years, except of the initial members, as designated at 
        the time of their appointment--
                  ``(A) 1 shall be eligible to service for a 
                term of 1 year;
                  ``(B) 1 shall be eligible to service for a 
                term of 2 years;
                  ``(C) 1 shall be eligible to service for a 
                term of 3 years;
                  ``(D) 2 shall be eligible to service for a 
                term of 4 years; and
                  ``(E) 2 shall be eligible to service for a 
                term of 5 years (1 of whom shall be the 
                Chairman).
        Directors may continue to serve until their successors 
        have been appointed and have qualified.
          ``(3) Meetings and functions of the board.--The Board 
        of Directors shall meet at the call of its Chairman, 
        but at least quarterly. The Board shall determine the 
        general policies which shall govern the operations of 
        the Fund. The Chairman of the Board shall, with the 
        approval of the Board, select, appoint, and compensate 
        qualified persons to fill the offices as may be 
        provided for in the bylaws, with such functions, 
        powers, and duties as may be prescribed by the bylaws 
        or by the Board of Directors, and such persons shall be 
        the officers of the Fund and shall discharge all such 
        functions, powers, and duties.
  ``(d) Accounts of the Fund.--The Fund shall maintain its 
accounts at a financial institution designated for purposes of 
this section by the Chairman of the Board (after consultation 
with the Commission and the Secretary of the Treasury). The 
accounts of the Fund shall consist of--
          ``(1) interest transferred pursuant to section 
        309(j)(8)(C) of this Act;
          ``(2) such sums as may be appropriated to the 
        Commission for advances to the Fund;
          ``(3) any contributions or donations to the Fund that 
        are accepted by the Fund; and
          ``(4) any repayment of, or other payment made with 
        respect to, loans, equity, or other extensions of 
        credit made from the Fund.
  ``(e) Use of the Fund.--All moneys deposited into the 
accounts of the Fund shall be used solely for--
          ``(1) the making of loans, investments, or other 
        extensions of credits to eligible small businesses in 
        accordance with subsection (f);
          ``(2) the provision of financial advise to eligible 
        small businesses;
          ``(3) expenses for the administration and management 
        of the Fund;
          ``(4) preparation of research, studies, or financial 
        analyses; and
          ``(5) other services consistent with the purposes of 
        this section.
  ``(f) Lending and Credit Operations.--Loans or other 
extensions of credit from the Fund shall be made available to 
eligible small business on the basis of--
          ``(1) the analysis of the business plan of the 
        eligible small business;
          ``(2) the reasonable availability of collateral to 
        secure the loan or credit extension;
          ``(3) the extent to which the loan or credit 
        extension promotes the purposes of this section; and
          ``(4) other lending policies as defined by the Board.
  ``(g) Return of Advances.--Any advances appropriated pursuant 
to subsection (b)(2) shall be upon such terms and conditions 
(including conditions relating to the time or times of 
repayment) as the Board determines will best carry out the 
purposes of this section, in light of the maturity and solvency 
of the Fund.
  ``(h) General Corporate Powers.--The Fund shall have power--
          ``(1) to sue and be sued, complain and defend, in its 
        corporate name and through its own counsel;
          ``(2) to adopt, alter, and use the corporate seal, 
        which shall be judicially noticed;
          ``(3) to adopt, amend, and repeal by its Board of 
        Directors, bylaws, rules, and regulations as may be 
        necessary for the conduct of its business;
          ``(4) to conduct its business, carry on its 
        operations, and have officers and exercise the power 
        granted by this section in any State without regard to 
        any qualification or similar statute in any State;
          ``(5) to lease, purchase, or otherwise acquire, own, 
        hold, improve, use, or otherwise deal in and with any 
        property, real, personal, or mixed, or any interest 
        therein, wherever situated;
          ``(6) to accept gifts or donations of services, or of 
        property, real, personal, or mixed, tangible or 
        intangible, in aid of any of the purposes of the Fund;
          ``(7) to sell, convey, mortgage, pledge, lease, 
        exchange, and otherwise dispose of its property and 
        assets;
          ``(8) to appoint such officers, attorneys, employees, 
        and agents as may be required, to determine their 
        qualifications, to define their duties, to fix their 
        salaries, require bonds for them, and fix the penalty 
        thereof; and
          ``(9) to enter into contracts, to execute 
        instruments, to incur liabilities, to make loans and 
        equity investment, and to do all things as are 
        necessary or incidental to the proper management of its 
        affairs and the proper conduct of its business.
  ``(i) Accounting, Auditing, and Reporting.--The accounts of 
the Fund shall be audited annually. Such audits shall be 
conducted in accordance with generally accepted auditing 
standards by independent certified public accountants. A report 
of each such audit shall be furnished to the Secretary of the 
Treasury and the Commission. The representatives of the 
Secretary and the Commission shall have access to all books, 
accounts, financial records, reports, files, and all other 
papers, things, or property belonging to or in use by the Fund 
and necessary to facilitate the audit.
  ``(j) Report on Audits by Treasury.--A report of each such 
audit for a fiscal year shall be made by the Secretary of the 
Treasury to the President and to the Congress not later than 6 
months following the close of such fiscal year. The report 
shall set forth the scope of the audit and shall include a 
statement of assets and liabilities, capital and surplus or 
deficit; a statement of surplus or deficit analysis; a 
statement of income and expense; a statement of sources and 
application of funds; and such comments and information as may 
be deemed necessary to keep the President and the Congress 
informed of the operations and financial condition of the Fund, 
together with such recommendations with respect thereto as the 
Secretary may deem advisable.
  ``(k) Definitions.--As used in this section:
          ``(1) Eligible small business.--The term `eligible 
        small business' means business enterprises engaged in 
        the telecommunications industry that have $50,000,000 
        or less in annual revenues, on average over the past 3 
        years prior to submitting the application under this 
        section.
          ``(2) Fund.--The term `Fund' means the 
        Telecommunications Development Fund established 
        pursuant to this section.
          ``(3) Telecommunications industry.--The term 
        `telecommunications industry' means communications 
        businesses using regulated or unregulated facilities or 
        services and includes the broadcasting, telephony, 
        cable, computer, data transmission, software, 
        programming, advanced messaging, and electronics 
        businesses.''.
                        [28. Telemedicine Report]
  Page 101, after line 23, insert the following new section 
(and redesignate the succeeding sections and conform the table 
of contents accordingly):
SEC. 112. REPORT ON THE USE OF ADVANCED TELECOMMUNICATIONS SERVICES FOR 
                    MEDICAL PURPOSES.

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

  (a) Telecommuting Research Programs and Public Information 
Dissemination.--The Assistant Secretary of Commerce for 
Communications and Information, in consultation with the 
Secretary of Transportation, the Secretary of Labor, and the 
Administrator of the Environmental Protection Agency, shall, 
within three months of the date of enactment of this Act, carry 
out research to identify successful telecommuting programs in 
the public and private sectors and provide for the 
dissemination to the public of information regarding--
          (1) the establishment of successful telecommuting 
        programs; and
          (2) the benefits and costs of telecommuting.
  (b) Report.--Within one year of the date of enactment of this 
Act, the Assistant Secretary of Commerce for Communications and 
Information shall report to Congress the findings, conclusions, 
and recommendations regarding telecommuting developed under 
this section.
                          [29. Video Platform]
  Page 103, line 13, insert ``(other than section 652)'' after 
``part V''.
  Page 104, strike lines 3 through 5 and insert the following:
          ``(iii) has not established a video platform in 
        accordance with section 653.''.
  Page 109, line 24, strike ``shall'' and insert ``may''.
  Page 113, line 1, strike ``15 months'' and insert ``6 
months''.
  Page 113, line 25, after ``concerning'' insert the following: 
``sports exclusivity (47 C.F.R. 76.67),'', and on page 114, 
line 1, after the close parenthesis insert a comma.
  Page 115, beginning on line 20, strike paragraph (2) through 
page 116, line 4, and on page 116, line 5, redesignate 
subsection (c) as paragraph (2).
  Page 116, beginning on line 9, strike subsection (d) through 
line 15.
  Page 130, line 22, before ``the Commission'' insert ``270 
days have elapsed since''.
                     [30. Cable Complaint Threshold]
  Page 127, line 4, strike ``5 percent'' and insert ``3 
percent''.
                        [31. Navigation Devices]
  Page 136, beginning on line 24, strike ``Such regulations'' 
and all that follows through the period on page 137, line 2.
  Page 137, line 7, strike ``bundled with or''.
  Page 137, after line 8, insert the following new subsection 
(and redesignate the succeeding subsections accordingly):
  ``(c) Protection of System Security.--The Commission shall 
not prescribe regulations pursuant to subsection (b) which 
would jeopardize the security of a telecommunications system or 
impede the legal rights of a provider of such service to 
prevent theft of service.
  Page 137, line 10, strike ``may'' and insert ``shall''.
  Page 137, line 13, strike ``the introduction of a new'' and 
insert ``assist the development or introduction of a new or 
improved''.
  Page 137, line 14, insert ``or technology'' after 
``service''.
  Page 137, after line 14, insert the following new subsection 
(and redesignate the succeeding subsection accordingly):
  ``(e) Avoidance of Redundant Regulations.--
          ``(1) Market competitiveness determinations.--
        Determinations made or regulations prescribed by the 
        Commission with respect to market competitiveness of 
        customer premises equipment prior to the date of 
        enactment of this section shall fulfill the 
        requirements of this section.
          ``(2) Regulations.--Nothing in this section affects 
        the Commission's regulations governing the 
        interconnection and competitive provision of customer 
        premises equipment used in connection with basic 
        telephone service.
               [32. Cable/Broadcast/MMDS Cross Ownership]
  Page 154, lines 9 and 10, strike subsection (b) and insert 
the following:
  (b) Conforming Amendments.--Section 613(a) of the Act (47 
U.S.C. 533(a)) is amended--
          (1) by striking paragraph (1);
          (2) by redesignating paragraph (2) as subsection (a);
          (3) by redesignating subparagraphs (A) and (B) as 
        paragraphs (1) and (2), respectively;
          (4) by striking ``and'' at the end of paragraph (1) 
        (as so redesignated);
          (5) by striking the period at the end of paragraph 
        (2) (as so redesignated) and inserting ``; and''; and
          (6) by adding at the end the following new paragraph:
          ``(3) shall not apply the requirements of this 
        paragraph in any area in which there are two or more 
        unaffiliated wireline providers of video programming 
        services.''
                         [33. Foreign Ownership]
  Page 155, line 8, insert ``held,'' after ``granted,''.
  Page 155, beginning on line 12, strike subparagraph (A) 
through line 19 and insert the following:
                  ``(A) the President determines--
                          ``(i) that the foreign country of 
                        which such alien is a citizen, in which 
                        such corporation is organized, or in 
                        which the foreign government is in 
                        control is party to an international 
                        agreement which requires the United 
                        States to provide national or most-
                        favored-nation treatment in the grant 
                        of common carrier licenses; and
                          ``(ii) that not applying subsection 
                        (b) would be consistent with national 
                        security and effective law enforcement; 
                        or
  Page 155, beginning on line 23, strike paragraphs (2) through 
(5) through page 157, line 21, and insert the following:
          ``(2) Commission considerations.--In making its 
        determination under paragraph (1), the Commission shall 
        abide by any decision of the President whether 
        application of section (b) is in the public interest 
        due to national security, law enforcement, foreign 
        policy or trade (including direct investment as it 
        relates to international trade policy) concerns, or due 
        to the interpretation of international agreements. In 
        the absence of a decision by the President, the 
        Commission may consider, among other public interest 
        factors, whether effective competitive opportunities 
        are available to United States nationals or 
        corporations in the applicant's home market. Upon 
        receipt of an application that requires a determination 
        under this paragraph, the Commission shall cause notice 
        of the application to be given to the President or any 
        agencies designated by the President to receive such 
        notification. The Commission shall not make a 
        determination under paragraph (1)(B) earlier than 30 
        days after the end of the pleading cycle or later than 
        180 days after the end of the pleading cycle.
          ``(3) Further commission review.--The Commission may 
        determine that, due to changed circumstances relating 
        to United States national security or law enforcement, 
        a prior determination under paragraph (1) ought to be 
        reversed or altered. In making this determination, the 
        Commission shall accord great deference to any 
        recommendation of the President with respect to United 
        States national security or law enforcement. If a 
        determination under this paragraph is made then--
                  ``(A) subsection (b) shall apply with respect 
                to such aliens, corporation, and government (or 
                their representatives) on the date that the 
                Commission publishes notice of its 
                determination under this paragraph; and
                  ``(B) any license held, or application filed, 
                which could not be held or granted under 
                subsection (b) shall be reviewed by the 
                Commission under the provisions of paragraphs 
                (1)(B) and (2).
          ``(4) Notification to congress.--The President and 
        the Commission shall notify the appropriate committees 
        of the Congress of any determinations made under 
        paragraph (1), (2), or (3).
          ``(5) Miscellaneous.--Any Presidential decisions made 
        under the provisions of this subsection shall not be 
        subject to judicial review.''.
  (c) Effective Dates.--The amendments made by this section 
shall not apply to any proceeding commenced before the date of 
enactment of this Act.
                          [34. License Renewal]
  Page 161, beginning on line 18, strike ``filed on or after 
May 31, 1995'' and insert ``pending or filed on or after the 
date of enactment of this Act''.
                 [35. Ship Distress and Safety Systems]
  Page 162, beginning on line 1, strike section 307 through 
line 8 and insert the following:
SEC. 307. AUTOMATED SHIP DISTRESS AND SAFETY SYSTEMS.

  Notwithstanding any provision of the Communications Act of 
1934 or any other provision of law or regulation, a ship 
documented under the laws of the United States operating in 
accordance with the Global Maritime Distress and Safety System 
provisions of the Safety of Life at Sea Convention shall not be 
required to be equipped with a radio telegraphy station 
operated by one or more radio officers or operators. This 
section shall take effect for each vessel upon a determination 
by the United States Coast Guard that such vessel has the 
equipment required to implement the Global Maritime Distress 
and Safety System installed and operating in good working 
condition.
              [36. Certification and Testing of Equipment]
  Page 162, after line 22, insert the following new section 
(and conform the table of contents accordingly):
SEC. 310. DELEGATION OF EQUIPMENT TESTING AND CERTIFICATION TO PRIVATE 
                    LABORATORIES.

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

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

  (a) Protection of Minors.--
          (1) Generally.--Section 1465 of title 18, United 
        States Code, is amended by adding at the end the 
        following:
  ``Whoever intentionally communicates by computer, in or 
affecting interstate or foreign commerce, to any person the 
communicator believes has not attained the age of 18 years, any 
material that, in context, depicts or describes, in terms 
patently offensive as measured by contemporary community 
standards, sexual or excretory activities or organs, or 
attempts to do so, shall be fined under this title or 
imprisoned not more than five years, or both.''.
          (2) Conforming Amendments Relating to Forfeiture.--
                  (A) Section 1467(a)(1) of title 18, United 
                States Code, is amended by inserting 
                ``communicated,'' after ``transported,''.
                  (B) Section 1467 of title 18, United States 
                Code, is amended in subsection (a)(1), by 
                striking ``obscene''.
                  (C) Section 1469 of title 18, United States 
                Code, is amended by inserting ``communicated,'' 
                after ``transported,'' each place it appears.
  (b) Clarification of Current Laws Regarding Communication of 
Obscene Materials Through the Use of Computers.--
          (1) Importation or transportation.--Section 1462 of 
        title 18, United States Code, is amended--
                  (A) in the first undesignated paragraph, by 
                inserting ``(including by computer) after 
                ``thereof''; and
                  (B) in the second undesignated paragraph--
                          (i) by inserting ``or receives,'' 
                        after ``takes'';
                          (ii) by inserting ``, or by 
                        computer,'' after ``common carrier''; 
                        and
                          (iii) by inserting ``or importation'' 
                        after ``carriage''.
          (2) Transportation for purposes of sale or 
        distribution.--The first undesignated paragraph of 
        section 1465 of title 18, United States Code, is 
        amended--
                  (A) by striking ``transports in'' and 
                inserting ``transports or travels in, or uses a 
                facility or means of,'';
                  (B) by inserting ``(including a computer in 
                or affecting such commerce)'' after ``foreign 
                commerce'' the first place it appears; and
                  (C) by striking ``, or knowingly travels in'' 
                and all that follows through ``obscene material 
                in interstate or foreign commerce,'' and 
                inserting ``of''.
                           [42. Cable Access]
  Page 170, line 21, after the period insert the following: 
``For purposes of section 242, such term shall not include the 
provision of video programming directly to subscribers.''.
                              ----------                              

                                 PART 2

2-1. An Amendment To Be Offered by Representative Stupak of Michigan or 
                  a Designee, Debatable for 10 Minutes

  Page 14, beginning on line 8, strike section 243 through page 
16, line 9, and insert the following (and conform the table of 
contents accordingly):
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.
                              ----------                              

 2-2. An Amendment To Be Offered by Representative Conyers of Michigan 
                or a Designee, Debatable for 30 Minutes

    Page 26, strike line 6 and insert the following:
    ``(c) Commission and Attorney General Review.--
    Page 26, lines 8 and 10, page 27, lines 6 and 9, strike 
``Commission'' and insert ``Commission and Attorney General''.
    Page 27, line 12, insert ``Commission'' before 
``Decision''.
    Page 27, after line 21, insert the following new paragraph:
          ``(5) Standard for attorney general decision.--The 
        Attorney General shall approve such verification unless 
        the Attorney General finds there is a dangerous 
        probability that such company or its affiliates would 
        successfully use market power to substantially impede 
        competition in the market such company seeks to enter.
    Page 29, line 8, insert ``and the Attorney General's'' 
after ``the Commission's''.
                              ----------                              


2-3. An Amendment To Be Offered by Representative Cox of California or 
  Representative Wyden of Oregon or Their Designee, Debatable for 20 
                                Minutes
      Page 78, before line 18, insert the following new section 
(and redesignate the succeeding sections and conform the table 
of contents accordingly):
SEC. 104. ONLINE FAMILY EMPOWERMENT.

  Title II of the Communications Act of 1934 (47 U.S.C. 201 et 
seq.) is amended by 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 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.''.
                              ----------                              

      2-4. An Amendment To Be Offered by Representative Markey of 
Massachusetts or Representative Shays of Connecticut or Their Designee, 
                        Debatable for 30 Minutes

    Page 126, after line 16, insert the following new 
subsection (and redesignate the succeeding subsections 
accordingly):
    (f) Standard for Unreasonable Rates for Cable Programming 
Services.--Section 623(c)(2) of the Act (47 U.S.C. 543(c)) is 
amended to read as follows:
          ``(2) Standard for unreasonable rates.--The 
        Commission may only consider a rate for cable 
        programming services to be unreasonable if such rate 
        has increased since June 1, 1995, determined on a per-
        channel basis, by a percentage that exceeds the 
        percentage increase in the Consumer Price Index for All 
        Urban Consumers (as determined by the Department of 
        Labor) since such date.''.
    Page 127, line 4, strike ``or 5 percent'' and all that 
follows through ``greater,'' on line 6.
    Page 129, strike lines 16 through 21 and insert the 
following:
    ``(d) Uniform Rate Structure.--A cable operator shall have 
a uniform rate structure throughout its franchise area for the 
provision of cable services.''.
    Page 130, line 16, insert ``and'' after the semicolon, and 
strike line 20 and all that follows through line 2 on page 131 
and insert the following:
        directly to subscribers in the franchise area and such 
        franchise area is also served by an unaffiliated cable 
        system.''.
    Page 131, strike line 6 and all that follows through line 
21, and insert the following:
    ``(m) Small Cable Systems.--
          ``(1) Small cable system relief.--A small cable 
        system 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 system.--For purposes 
        of this subsection, `small cable system' means a cable 
        system that--
                  ``(A) directly or through an affiliate, 
                serves in the aggregate fewer than 250,000 
                cable subscribers in the United States; and
                  ``(B) directly serves fewer than 10,000 cable 
                subscribers in its franchise area.''.
                              ----------                              

      2-5. An Amendment To Be Offered by Representative Markey of 
         Massachusetts or a Designee, Debatable for 30 Minutes

    Page 150, beginning on line 24, strike paragraph (1) 
through line 17 on page 151 and insert the following:
          ``(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.
    Page 150, line 4, strike ``(a) Amendment.--''.
    Page 150, line 9, after ``section,'' insert ``and 
consistent with section 613(a) of this Act,''.
    Page 154, strike lines 9 and 10.
                              ----------                              


      2-6. An Amendment To Be Offered by Representative Markey of 
 Massachusetts or Representative Burton of Indiana or Their Designee, 
                        Debatable for 30 Minutes

  Page 157, after line 21, insert the following new section 
(and redesignate the succeeding sections and conform the table 
of contents accordingly):
SEC. 304. 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.
          (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 that 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.
                              ----------                              

2-7. An Amendment To Be Offered by Representative Coburn of Oklahoma or 
 a Designee as a Substitute for the Amendment Numbered 2-6. Offered by 
            Representative Markey, Debatable for 30 Minutes

  Page 157, after line 21, insert the following new section 
(and redesignate the succeeding sections and conform the table 
of contents accordingly):
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.