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** Telecommunications Act of 1996 **
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--S.652--
One Hundred Fourth Congress
of the
United States of America
AT THE SECOND SESSION
Begun and held at the City of Washington on Wednesday,
the third day of January, one thousand nine hundred and ninety-six.
An Act
To promote competition and reduce regulation in order to secure
lower prices and higher quality services for American
telecommunications consumers and encourage the rapid deployment of
new telecommunications technologies.
[Italic->] Be it enacted by the Senate and House of
Representatives of the United States of America in Congress
assembled, [<-Italic]
SECTION 1. SHORT TITLE; REFERENCES.
(a) SHORT TITLE- This Act may be cited as the `Telecommunications
Act of 1996'.
(b) REFERENCES- Except as otherwise expressly provided, whenever
in this Act an amendment or repeal is expressed in terms of an
amendment to, or repeal of, a section or other provision, the
reference shall be considered to be made to a section or other
provision of the Communications Act of 1934 (47 U.S.C. 151 et seq.).
SEC. 2. TABLE OF CONTENTS.
The table of contents for this Act is as follows:
Sec. 1. Short title; references.
Sec. 2. Table of contents.
Sec. 3. Definitions.
TITLE I--TELECOMMUNICATION SERVICES
SUBTITLE A--TELECOMMUNICATIONS SERVICES
Sec. 101. Establishment of part II of title II.
`PART II--DEVELOPMENT OF COMPETITIVE MARKETS
Sec. 102. Eligible telecommunications carriers.
Sec. 103. Exempt telecommunications companies.
Sec. 104. Nondiscrimination principle.
SUBTITLE B--SPECIAL PROVISIONS CONCERNING BELL OPERATING COMPANIES
Sec. 151. Bell operating company provisions.
`PART III--SPECIAL PROVISIONS CONCERNING BELL OPERATING COMPANIES
TITLE II--BROADCAST SERVICES
Sec. 201. Broadcast spectrum flexibility.
Sec. 202. Broadcast ownership.
Sec. 203. Term of licenses.
Sec. 204. Broadcast license renewal procedures.
Sec. 205. Direct broadcast satellite service.
Sec. 206. Automated ship distress and safety systems.
Sec. 207. Restrictions on over-the-air reception devices.
TITLE III--CABLE SERVICES
Sec. 301. Cable Act reform.
Sec. 302. Cable service provided by telephone companies.
`PART V--VIDEO PROGRAMMING SERVICES PROVIDED BY TELEPHONE COMPANIES
Sec. 303. Preemption of franchising authority regulation of
telecommunications services.
Sec. 304. Competitive availability of navigation devices.
Sec. 305. Video programming accessibility.
TITLE IV--REGULATORY REFORM
Sec. 401. Regulatory forbearance.
Sec. 402. Biennial review of regulations; regulatory relief.
Sec. 403. Elimination of unnecessary Commission regulations and
functions.
TITLE V--OBSCENITY AND VIOLENCE
SUBTITLE A--OBSCENE, HARASSING, AND WRONGFUL UTILIZATION OF
TELECOMMUNICATIONS FACILITIES
Sec. 501. Short title.
Sec. 502. Obscene or harassing use of telecommunications facilities
under the Communications Act of 1934.
Sec. 503. Obscene programming on cable television.
Sec. 504. Scrambling of cable channels for nonsubscribers.
Sec. 505. Scrambling of sexually explicit adult video service
programming.
Sec. 506. Cable operator refusal to carry certain programs.
Sec. 507. Clarification of current laws regarding communication of
obscene materials through the use of computers.
Sec. 508. Coercion and enticement of minors.
Sec. 509. Online family empowerment.
SUBTITLE B--VIOLENCE
Sec. 551. Parental choice in television programming.
Sec. 552. Technology fund.
SUBTITLE C--JUDICIAL REVIEW
Sec. 561. Expedited review.
TITLE VI--EFFECT ON OTHER LAWS
Sec. 601. Applicability of consent decrees and other law.
Sec. 602. Preemption of local taxation with respect to
direct-to-home services.
TITLE VII--MISCELLANEOUS PROVISIONS
Sec. 701. Prevention of unfair billing practices for information or
services provided over toll-free telephone calls.
Sec. 702. Privacy of customer information.
Sec. 703. Pole attachments.
Sec. 704. Facilities siting; radio frequency emission standards.
Sec. 705. Mobile services direct access to long distance carriers.
Sec. 706. Advanced telecommunications incentives.
Sec. 707. Telecommunications Development Fund.
Sec. 708. National Education Technology Funding Corporation.
Sec. 709. Report on the use of advanced telecommunications services
for medical purposes.
Sec. 710. Authorization of appropriations.
SEC. 3. DEFINITIONS.
(a) ADDITIONAL DEFINITIONS- Section 3 (47 U.S.C. 153) is amended--
(1) in subsection (r)--
(A) by inserting `(A)' after `means'; and
(B) by inserting before the period at the end the
following: `, or (B) comparable service provided through a
system of switches, transmission equipment, or other
facilities (or combination thereof) by which a subscriber
can originate and terminate a telecommunications service';
and
(2) by adding at the end thereof the following:
`(33) AFFILIATE- The term `affiliate' means a person that
(directly or indirectly) owns or controls, is owned or
controlled by, or is under common ownership or control with,
another person. For purposes of this paragraph, the term `own'
means to own an equity interest (or the equivalent thereof) of
more than 10 percent.
`(34) AT&T CONSENT DECREE- The term `AT&T Consent Decree'
means the order entered August 24, 1982, in the antitrust
action styled United States v. Western Electric, Civil Action
No. 82-0192, in the United States District Court for the
District of Columbia, and includes any judgment or order with
respect to such action entered on or after August 24, 1982.
`(35) BELL OPERATING COMPANY- The term `Bell operating
company'--
`(A) means any of the following companies: Bell Telephone
Company of Nevada, Illinois Bell Telephone Company, Indiana
Bell Telephone Company, Incorporated, Michigan Bell
Telephone Company, New England Telephone and Telegraph
Company, New Jersey Bell Telephone Company, New York
Telephone Company, U S West Communications Company, South
Central Bell Telephone Company, Southern Bell Telephone and
Telegraph Company, Southwestern Bell Telephone Company, The
Bell Telephone Company of Pennsylvania, The Chesapeake and
Potomac Telephone Company, The Chesapeake and Potomac
Telephone Company of Maryland, The Chesapeake and Potomac
Telephone Company of Virginia, The Chesapeake and Potomac
Telephone Company of West Virginia, The Diamond State
Telephone Company, The Ohio Bell Telephone Company, The
Pacific Telephone and Telegraph Company, or Wisconsin
Telephone Company; and
`(B) includes any successor or assign of any such company
that provides wireline telephone exchange service; but
`(C) does not include an affiliate of any such company,
other than an affiliate described in subparagraph (A) or (B).
`(36) CABLE SERVICE- The term `cable service' has the meaning
given such term in section 602.
`(37) CABLE SYSTEM- The term `cable system' has the meaning
given such term in section 602.
`(38) CUSTOMER PREMISES EQUIPMENT- The term `customer
premises equipment' means equipment employed on the premises of
a person (other than a carrier) to originate, route, or
terminate telecommunications.
`(39) DIALING PARITY- The term `dialing parity' means that a
person that is not an affiliate of a local exchange carrier is
able to provide telecommunications services in such a manner
that customers have the ability to route automatically, without
the use of any access code, their telecommunications to the
telecommunications services provider of the customer's
designation from among 2 or more telecommunications services
providers (including such local exchange carrier).
`(40) EXCHANGE ACCESS- The term `exchange access' means the
offering of access to telephone exchange services or facilities
for the purpose of the origination or termination of telephone
toll services.
`(41) INFORMATION SERVICE- The term `information service'
means the offering of a capability for generating, acquiring,
storing, transforming, processing, retrieving, utilizing, or
making available information via telecommunications, and
includes electronic publishing, but does not include any use of
any such capability for the management, control, or operation
of a telecommunications system or the management of a
telecommunications service.
`(42) INTERLATA SERVICE- The term `interLATA service' means
telecommunications between a point located in a local access
and transport area and a point located outside such area.
`(43) LOCAL ACCESS AND TRANSPORT AREA- The term `local access
and transport area' or `LATA' means a contiguous geographic
area--
`(A) established before the date of enactment of the
Telecommunications Act of 1996 by a Bell operating company
such that no exchange area includes points within more than
1 metropolitan statistical area, consolidated metropolitan
statistical area, or State, except as expressly permitted
under the AT&T Consent Decree; or
`(B) established or modified by a Bell operating company
after such date of enactment and approved by the Commission.
`(44) LOCAL EXCHANGE CARRIER- The term `local exchange
carrier' means any person that is engaged in the provision of
telephone exchange service or exchange access. Such term does
not include a person insofar as such person is engaged in the
provision of a commercial mobile service under section 332(c),
except to the extent that the Commission finds that such
service should be included in the definition of such term.
`(45) NETWORK ELEMENT- The term `network element' means a
facility or equipment used in the provision of a
telecommunications service. Such term also includes features,
functions, and capabilities that are provided by means of such
facility or equipment, including subscriber numbers, databases,
signaling systems, and information sufficient for billing and
collection or used in the transmission, routing, or other
provision of a telecommunications service.
`(46) NUMBER PORTABILITY- The term `number portability' means
the ability of users of telecommunications services to retain,
at the same location, existing telecommunications numbers
without impairment of quality, reliability, or convenience when
switching from one telecommunications carrier to another.
`(47) RURAL TELEPHONE COMPANY- The term `rural telephone
company' means a local exchange carrier operating entity to the
extent that such entity--
`(A) provides common carrier service to any local
exchange carrier study area that does not include either--
`(i) any incorporated place of 10,000 inhabitants or
more, or any part thereof, based on the most recently
available population statistics of the Bureau of the
Census; or
`(ii) any territory, incorporated or unincorporated,
included in an urbanized area, as defined by the Bureau
of the Census as of August 10, 1993;
`(B) provides telephone exchange service, including
exchange access, to fewer than 50,000 access lines;
`(C) provides telephone exchange service to any local
exchange carrier study area with fewer than 100,000 access
lines; or
`(D) has less than 15 percent of its access lines in
communities of more than 50,000 on the date of enactment of
the Telecommunications Act of 1996.
`(48) TELECOMMUNICATIONS- The term `telecommunications' means
the transmission, between or among points specified by the
user, of information of the user's choosing, without change in
the form or content of the information as sent and received.
`(49) TELECOMMUNICATIONS CARRIER- The term
`telecommunications carrier' means any provider of
telecommunications services, except that such term does not
include aggregators of telecommunications services (as defined
in section 226). A telecommunications carrier shall be treated
as a common carrier under this Act only to the extent that it
is engaged in providing telecommunications services, except
that the Commission shall determine whether the provision of
fixed and mobile satellite service shall be treated as common
carriage.
`(50) TELECOMMUNICATIONS EQUIPMENT- The term
`telecommunications equipment' means equipment, other than
customer premises equipment, used by a carrier to provide
telecommunications services, and includes software integral to
such equipment (including upgrades).
`(51) TELECOMMUNICATIONS SERVICE- The term
`telecommunications service' means the offering of
telecommunications for a fee directly to the public, or to such
classes of users as to be effectively available directly to the
public, regardless of the facilities used.'.
(b) COMMON TERMINOLOGY- Except as otherwise provided in this Act,
the terms used in this Act have the meanings provided in section 3
of the Communications Act of 1934 (47 U.S.C. 153), as amended by
this section.
(c) STYLISTIC CONSISTENCY- Section 3 (47 U.S.C. 153) is amended--
(1) in subsections (e) and (n), by redesignating clauses (1),
(2), and (3), as clauses (A), (B), and (C), respectively;
(2) in subsection (w), by redesignating paragraphs (1)
through (5) as subparagraphs (A) through (E), respectively;
(3) in subsections (y) and (z), by redesignating paragraphs
(1) and (2) as subparagraphs (A) and (B), respectively;
(4) by redesignating subsections (a) through (ff) as
paragraphs (1) through (32);
(5) by indenting such paragraphs 2 em spaces;
(6) by inserting after the designation of each such paragraph--
(A) a heading, in a form consistent with the form of the
heading of this subsection, consisting of the term defined
by such paragraph, or the first term so defined if such
paragraph defines more than one term; and
(B) the words `The term';
(7) by changing the first letter of each defined term in such
paragraphs from a capital to a lower case letter (except for
`United States', `State', `State commission', and `Great Lakes
Agreement'); and
(8) by reordering such paragraphs and the additional
paragraphs added by subsection (a) in alphabetical order based
on the headings of such paragraphs and renumbering such
paragraphs as so reordered.
(d) CONFORMING AMENDMENTS- The Act is amended--
(1) in section 225(a)(1), by striking `section 3(h)' and
inserting `section 3';
(2) in section 332(d), by striking `section 3(n)' each place
it appears and inserting `section 3'; and
(3) in sections 621(d)(3), 636(d), and 637(a)(2), by striking
`section 3(v)' and inserting `section 3'.
TITLE I--TELECOMMUNICATION SERVICES
SUBTITLE A--TELECOMMUNICATIONS SERVICES
SEC. 101. ESTABLISHMENT OF PART II OF TITLE II.
(a) AMENDMENT- Title II is amended by inserting after section 229
(47 U.S.C. 229) the following new part:
`PART II--DEVELOPMENT OF COMPETITIVE MARKETS
`SEC. 251. INTERCONNECTION.
`(a) GENERAL DUTY OF TELECOMMUNICATIONS CARRIERS- Each
telecommunications carrier has the duty--
`(1) to interconnect directly or indirectly with the
facilities and equipment of other telecommunications carriers;
and
`(2) not to install network features, functions, or
capabilities that do not comply with the guidelines and
standards established pursuant to section 255 or 256.
`(b) OBLIGATIONS OF ALL LOCAL EXCHANGE CARRIERS- Each local
exchange carrier has the following duties:
`(1) RESALE- The duty not to prohibit, and not to impose
unreasonable or discriminatory conditions or limitations on,
the resale of its telecommunications services.
`(2) NUMBER PORTABILITY- The duty to provide, to the extent
technically feasible, number portability in accordance with
requirements prescribed by the Commission.
`(3) DIALING PARITY- The duty to provide dialing parity to
competing providers of telephone exchange service and telephone
toll service, and the duty to permit all such providers to have
nondiscriminatory access to telephone numbers, operator
services, directory assistance, and directory listing, with no
unreasonable dialing delays.
`(4) ACCESS TO RIGHTS-OF-WAY- The duty to afford access to
the poles, ducts, conduits, and rights-of-way of such carrier
to competing providers of telecommunications services on rates,
terms, and conditions that are consistent with section 224.
`(5) RECIPROCAL COMPENSATION- The duty to establish
reciprocal compensation arrangements for the transport and
termination of telecommunications.
`(c) ADDITIONAL OBLIGATIONS OF INCUMBENT LOCAL EXCHANGE CARRIERS-
In addition to the duties contained in subsection (b), each
incumbent local exchange carrier has the following duties:
`(1) DUTY TO NEGOTIATE- The duty to negotiate in good faith
in accordance with section 252 the particular terms and
conditions of agreements to fulfill the duties described in
paragraphs (1) through (5) of subsection (b) and this
subsection. The requesting telecommunications carrier also has
the duty to negotiate in good faith the terms and conditions of
such agreements.
`(2) INTERCONNECTION- The duty to provide, for the facilities
and equipment of any requesting telecommunications carrier,
interconnection with the local exchange carrier's network--
`(A) for the transmission and routing of telephone
exchange service and exchange access;
`(B) at any technically feasible point within the
carrier's network;
`(C) that is at least equal in quality to that provided
by the local exchange carrier to itself or to any
subsidiary, affiliate, or any other party to which the
carrier provides interconnection; and
`(D) on rates, terms, and conditions that are just,
reasonable, and nondiscriminatory, in accordance with the
terms and conditions of the agreement and the requirements
of this section and section 252.
`(3) UNBUNDLED ACCESS- The duty to provide, to any requesting
telecommunications carrier for the provision of a
telecommunications service, nondiscriminatory access to network
elements on an unbundled basis at any technically feasible
point on rates, terms, and conditions that are just,
reasonable, and nondiscriminatory in accordance with the terms
and conditions of the agreement and the requirements of this
section and section 252. An incumbent local exchange carrier
shall provide such unbundled network elements in a manner that
allows requesting carriers to combine such elements in order to
provide such telecommunications service.
`(4) RESALE- The duty--
`(A) to offer for resale at wholesale rates any
telecommunications service that the carrier provides at
retail to subscribers who are not telecommunications
carriers; and
`(B) not to prohibit, and not to impose unreasonable or
discriminatory conditions or limitations on, the resale of
such telecommunications service, except that a State
commission may, consistent with regulations prescribed by
the Commission under this section, prohibit a reseller that
obtains at wholesale rates a telecommunications service
that is available at retail only to a category of
subscribers from offering such service to a different
category of subscribers.
`(5) NOTICE OF CHANGES- The duty to provide reasonable public
notice of changes in the information necessary for the
transmission and routing of services using that local exchange
carrier's facilities or networks, as well as of any other
changes that would affect the interoperability of those
facilities and networks.
`(6) COLLOCATION- The duty to provide, on rates, terms, and
conditions that are just, reasonable, and nondiscriminatory,
for physical collocation of equipment necessary for
interconnection or access to unbundled network elements at the
premises of the local exchange carrier, except that the carrier
may provide for virtual collocation if the local exchange
carrier demonstrates to the State commission that physical
collocation is not practical for technical reasons or because
of space limitations.
`(d) IMPLEMENTATION-
`(1) IN GENERAL- Within 6 months after the date of enactment
of the Telecommunications Act of 1996, the Commission shall
complete all actions necessary to establish regulations to
implement the requirements of this section.
`(2) ACCESS STANDARDS- In determining what network elements
should be made available for purposes of subsection (c)(3), the
Commission shall consider, at a minimum, whether--
`(A) access to such network elements as are proprietary
in nature is necessary; and
`(B) the failure to provide access to such network
elements would impair the ability of the telecommunications
carrier seeking access to provide the services that it
seeks to offer.
`(3) PRESERVATION 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--
`(A) establishes access and interconnection obligations
of local exchange carriers;
`(B) is consistent with the requirements of this section;
and
`(C) does not substantially prevent implementation of the
requirements of this section and the purposes of this part.
`(e) NUMBERING ADMINISTRATION-
`(1) COMMISSION AUTHORITY AND JURISDICTION- The Commission
shall create or designate one or more impartial entities to
administer telecommunications numbering and to make such
numbers available on an equitable basis. The Commission shall
have exclusive jurisdiction over those portions of the North
American Numbering Plan that pertain to the United States.
Nothing in this paragraph shall preclude the Commission from
delegating to State commissions or other entities all or any
portion of such jurisdiction.
`(2) COSTS- The cost of establishing telecommunications
numbering administration arrangements and number portability
shall be borne by all telecommunications carriers on a
competitively neutral basis as determined by the Commission.
`(f) EXEMPTIONS, SUSPENSIONS, AND MODIFICATIONS-
`(1) EXEMPTION FOR CERTAIN RURAL TELEPHONE COMPANIES-
`(A) EXEMPTION- Subsection (c) of this section shall not
apply to a rural telephone company until (i) such company
has received a bona fide request for interconnection,
services, or network elements, and (ii) the State
commission determines (under subparagraph (B)) that such
request is not unduly economically burdensome, is
technically feasible, and is consistent with section 254
(other than subsections (b)(7) and (c)(1)(D) thereof).
`(B) STATE TERMINATION OF EXEMPTION AND IMPLEMENTATION
SCHEDULE- The party making a bona fide request of a rural
telephone company for interconnection, services, or network
elements shall submit a notice of its request to the State
commission. The State commission shall conduct an inquiry
for the purpose of determining whether to terminate the
exemption under subparagraph (A). Within 120 days after the
State commission receives notice of the request, the State
commission shall terminate the exemption if the request is
not unduly economically burdensome, is technically
feasible, and is consistent with section 254 (other than
subsections (b)(7) and (c)(1)(D) thereof). Upon termination
of the exemption, a State commission shall establish an
implementation schedule for compliance with the request
that is consistent in time and manner with Commission
regulations.
`(C) LIMITATION ON EXEMPTION- The exemption provided by
this paragraph shall not apply with respect to a request
under subsection (c) from a cable operator providing video
programming, and seeking to provide any telecommunications
service, in the area in which the rural telephone company
provides video programming. The limitation contained in
this subparagraph shall not apply to a rural telephone
company that is providing video programming on the date of
enactment of the Telecommunications Act of 1996.
`(2) SUSPENSIONS AND MODIFICATIONS FOR RURAL CARRIERS- A
local exchange carrier with fewer than 2 percent of the
Nation's subscriber lines installed in the aggregate nationwide
may petition a State commission for a suspension or
modification of the application of a requirement or
requirements of subsection (b) or (c) to telephone exchange
service facilities specified in such petition. The State
commission shall grant such petition to the extent that, and
for such duration as, the State commission determines that such
suspension or modification--
`(A) is necessary--
`(i) to avoid a significant adverse economic impact
on users of telecommunications services generally;
`(ii) to avoid imposing a requirement that is unduly
economically burdensome; or
`(iii) to avoid imposing a requirement that is
technically infeasible; and
`(B) is consistent with the public interest,
convenience, and necessity.
The State commission shall act upon any petition filed under
this paragraph within 180 days after receiving such petition.
Pending such action, the State commission may suspend
enforcement of the requirement or requirements to which the
petition applies with respect to the petitioning carrier or
carriers.
`(g) CONTINUED ENFORCEMENT OF EXCHANGE ACCESS AND INTERCONNECTION
REQUIREMENTS- On and after the date of enactment of the
Telecommunications Act of 1996, each local exchange carrier, to the
extent that it provides wireline services, shall provide exchange
access, information access, and exchange services for such access
to interexchange carriers and information service providers in
accordance with the same equal access and nondiscriminatory
interconnection restrictions and obligations (including receipt of
compensation) that apply to such carrier on the date immediately
preceding the date of enactment of the Telecommunications Act of
1996 under any court order, consent decree, or regulation, order,
or policy of the Commission, until such restrictions and
obligations are explicitly superseded by regulations prescribed by
the Commission after such date of enactment. During the period
beginning on such date of enactment and until such restrictions and
obligations are so superseded, such restrictions and obligations
shall be enforceable in the same manner as regulations of the
Commission.
`(h) DEFINITION OF INCUMBENT LOCAL EXCHANGE CARRIER-
`(1) DEFINITION- For purposes of this section, the term
`incumbent local exchange carrier' means, with respect to an
area, the local exchange carrier that--
`(A) on the date of enactment of the Telecommunications
Act of 1996, provided telephone exchange service in such
area; and
`(B)(i) on such date of enactment, was deemed to be a
member of the exchange carrier association pursuant to
section 69.601(b) of the Commission's regulations (47
C.F.R. 69.601(b)); or
`(ii) is a person or entity that, on or after such date
of enactment, became a successor or assign of a member
described in clause (i).
`(2) TREATMENT OF COMPARABLE CARRIERS AS INCUMBENTS- The
Commission may, by rule, provide for the treatment of a local
exchange carrier (or class or category thereof) as an incumbent
local exchange carrier for purposes of this section if--
`(A) such carrier occupies a position in the market for
telephone exchange service within an area that is
comparable to the position occupied by a carrier described
in paragraph (1);
`(B) such carrier has substantially replaced an incumbent
local exchange carrier described in paragraph (1); and
`(C) such treatment is consistent with the public
interest, convenience, and necessity and the purposes of
this section.
`(i) SAVINGS PROVISION- Nothing in this section shall be
construed to limit or otherwise affect the Commission's authority
under section 201.
`SEC. 252. PROCEDURES FOR NEGOTIATION, ARBITRATION, AND APPROVAL OF
AGREEMENTS.
`(a) AGREEMENTS ARRIVED AT THROUGH NEGOTIATION-
`(1) VOLUNTARY NEGOTIATIONS- Upon receiving a request for
interconnection, services, or network elements pursuant to
section 251, an incumbent local exchange carrier may negotiate
and enter into a binding agreement with the requesting
telecommunications carrier or carriers without regard to the
standards set forth in subsections (b) and (c) of section 251.
The agreement shall include a detailed schedule of itemized
charges for interconnection and each service or network element
included in the agreement. The agreement, including any
interconnection agreement negotiated before the date of
enactment of the Telecommunications Act of 1996, shall be
submitted to the State commission under subsection (e) of this
section.
`(2) MEDIATION- Any party negotiating an agreement under this
section may, at any point in the negotiation, ask a State
commission to participate in the negotiation and to mediate any
differences arising in the course of the negotiation.
`(b) AGREEMENTS ARRIVED AT THROUGH COMPULSORY ARBITRATION-
`(1) ARBITRATION- During the period from the 135th to the
160th day (inclusive) after the date on which an incumbent
local exchange carrier receives a request for negotiation under
this section, the carrier or any other party to the negotiation
may petition a State commission to arbitrate any open issues.
`(2) DUTY OF PETITIONER-
`(A) A party that petitions a State commission under
paragraph (1) shall, at the same time as it submits the
petition, provide the State commission all relevant
documentation concerning--
`(i) the unresolved issues;
`(ii) the position of each of the parties with
respect to those issues; and
`(iii) any other issue discussed and resolved by the
parties.
`(B) A party petitioning a State commission under
paragraph (1) shall provide a copy of the petition and any
documentation to the other party or parties not later than
the day on which the State commission receives the petition.
`(3) OPPORTUNITY TO RESPOND- A non-petitioning party to a
negotiation under this section may respond to the other party's
petition and provide such additional information as it wishes
within 25 days after the State commission receives the petition.
`(4) ACTION BY STATE COMMISSION-
`(A) The State commission shall limit its consideration
of any petition under paragraph (1) (and any response
thereto) to the issues set forth in the petition and in the
response, if any, filed under paragraph (3).
`(B) The State commission may require the petitioning
party and the responding party to provide such information
as may be necessary for the State commission to reach a
decision on the unresolved issues. If any party refuses or
fails unreasonably to respond on a timely basis to any
reasonable request from the State commission, then the
State commission may proceed on the basis of the best
information available to it from whatever source derived.
`(C) The State commission shall resolve each issue set
forth in the petition and the response, if any, by imposing
appropriate conditions as required to implement subsection
(c) upon the parties to the agreement, and shall conclude
the resolution of any unresolved issues not later than 9
months after the date on which the local exchange carrier
received the request under this section.
`(5) REFUSAL TO NEGOTIATE- The refusal of any other party to
the negotiation to participate further in the negotiations, to
cooperate with the State commission in carrying out its
function as an arbitrator, or to continue to negotiate in good
faith in the presence, or with the assistance, of the State
commission shall be considered a failure to negotiate in good
faith.
`(c) STANDARDS FOR ARBITRATION- In resolving by arbitration under
subsection (b) any open issues and imposing conditions upon the
parties to the agreement, a State commission shall--
`(1) ensure that such resolution and conditions meet the
requirements of section 251, including the regulations
prescribed by the Commission pursuant to section 251;
`(2) establish any rates for interconnection, services, or
network elements according to subsection (d); and
`(3) provide a schedule for implementation of the terms and
conditions by the parties to the agreement.
`(d) PRICING STANDARDS-
`(1) INTERCONNECTION AND NETWORK ELEMENT CHARGES-
Determinations by a State commission of the just and reasonable
rate for the interconnection of facilities and equipment for
purposes of subsection (c)(2) of section 251, and the just and
reasonable rate for network elements for purposes of subsection
(c)(3) of such section--
`(A) shall be--
`(i) based on the cost (determined without reference
to a rate-of-return or other rate-based proceeding) of
providing the interconnection or network element
(whichever is applicable), and
`(ii) nondiscriminatory, and
`(B) may include a reasonable profit.
`(2) CHARGES FOR TRANSPORT AND TERMINATION OF TRAFFIC-
`(A) IN GENERAL- For the purposes of compliance by an
incumbent local exchange carrier with section 251(b)(5), a
State commission shall not consider the terms and
conditions for reciprocal compensation to be just and
reasonable unless--
`(i) such terms and conditions provide for the mutual
and reciprocal recovery by each carrier of costs
associated with the transport and termination on each
carrier's network facilities of calls that originate on
the network facilities of the other carrier; and
`(ii) such terms and conditions determine such costs
on the basis of a reasonable approximation of the
additional costs of terminating such calls.
`(B) RULES OF CONSTRUCTION- This paragraph shall not be
construed--
`(i) to preclude arrangements that afford the mutual
recovery of costs through the offsetting of reciprocal
obligations, including arrangements that waive mutual
recovery (such as bill-and-keep arrangements); or
`(ii) to authorize the Commission or any State
commission to engage in any rate regulation proceeding
to establish with particularity the additional costs of
transporting or terminating calls, or to require
carriers to maintain records with respect to the
additional costs of such calls.
`(3) WHOLESALE PRICES FOR TELECOMMUNICATIONS SERVICES- For
the purposes of section 251(c)(4), a State commission shall
determine wholesale rates on the basis of retail rates charged
to subscribers for the telecommunications service requested,
excluding the portion thereof attributable to any marketing,
billing, collection, and other costs that will be avoided by
the local exchange carrier.
`(e) APPROVAL BY STATE COMMISSION-
`(1) APPROVAL REQUIRED- Any interconnection agreement adopted
by negotiation or arbitration shall be submitted for approval
to the State commission. A State commission to which an
agreement is submitted shall approve or reject the agreement,
with written findings as to any deficiencies.
`(2) GROUNDS FOR REJECTION- The State commission may only
reject--
`(A) an agreement (or any portion thereof) adopted by
negotiation under subsection (a) if it finds that--
`(i) the agreement (or portion thereof) discriminates
against a telecommunications carrier not a party to the
agreement; or
`(ii) the implementation of such agreement or portion
is not consistent with the public interest,
convenience, and necessity; or
`(B) an agreement (or any portion thereof) adopted by
arbitration under subsection (b) if it finds that the
agreement does not meet the requirements of section 251,
including the regulations prescribed by the Commission
pursuant to section 251, or the standards set forth in
subsection (d) of this section.
`(3) PRESERVATION OF AUTHORITY- Notwithstanding paragraph
(2), but subject to section 253, nothing in this section shall
prohibit a State commission from establishing or enforcing
other requirements of State law in its review of an agreement,
including requiring compliance with intrastate
telecommunications service quality standards or requirements.
`(4) SCHEDULE FOR DECISION- If the State commission does not
act to approve or reject the agreement within 90 days after
submission by the parties of an agreement adopted by
negotiation under subsection (a), or within 30 days after
submission by the parties of an agreement adopted by
arbitration under subsection (b), the agreement shall be deemed
approved. No State court shall have jurisdiction to review the
action of a State commission in approving or rejecting an
agreement under this section.
`(5) COMMISSION TO ACT IF STATE WILL NOT ACT- If a State
commission fails to act to carry out its responsibility under
this section in any proceeding or other matter under this
section, then the Commission shall issue an order preempting
the State commission's jurisdiction of that proceeding or
matter within 90 days after being notified (or taking notice)
of such failure, and shall assume the responsibility of the
State commission under this section with respect to the
proceeding or matter and act for the State commission.
`(6) REVIEW OF STATE COMMISSION ACTIONS- In a case in which a
State fails to act as described in paragraph (5), the
proceeding by the Commission under such paragraph and any
judicial review of the Commission's actions shall be the
exclusive remedies for a State commission's failure to act. In
any case in which a State commission makes a determination
under this section, any party aggrieved by such determination
may bring an action in an appropriate Federal district court to
determine whether the agreement or statement meets the
requirements of section 251 and this section.
`(f) STATEMENTS OF GENERALLY AVAILABLE TERMS-
`(1) IN GENERAL- A Bell operating company may prepare and
file with a State commission a statement of the terms and
conditions that such company generally offers within that State
to comply with the requirements of section 251 and the
regulations thereunder and the standards applicable under this
section.
`(2) STATE COMMISSION REVIEW- A State commission may not
approve such statement unless such statement complies with
subsection (d) of this section and section 251 and the
regulations thereunder. Except as provided in section 253,
nothing in this section shall prohibit a State commission from
establishing or enforcing other requirements of State law in
its review of such statement, including requiring compliance
with intrastate telecommunications service quality standards or
requirements.
`(3) SCHEDULE FOR REVIEW- The State commission to which a
statement is submitted shall, not later than 60 days after the
date of such submission--
`(A) complete the review of such statement under
paragraph (2) (including any reconsideration thereof),
unless the submitting carrier agrees to an extension of the
period for such review; or
`(B) permit such statement to take effect.
`(4) AUTHORITY TO CONTINUE REVIEW- Paragraph (3) shall not
preclude the State commission from continuing to review a
statement that has been permitted to take effect under
subparagraph (B) of such paragraph or from approving or
disapproving such statement under paragraph (2).
`(5) DUTY TO NEGOTIATE NOT AFFECTED- The submission or
approval of a statement under this subsection shall not relieve
a Bell operating company of its duty to negotiate the terms and
conditions of an agreement under section 251.
`(g) CONSOLIDATION OF STATE PROCEEDINGS- Where not inconsistent
with the requirements of this Act, a State commission may, to the
extent practical, consolidate proceedings under sections 214(e),
251(f), 253, and this section in order to reduce administrative
burdens on telecommunications carriers, other parties to the
proceedings, and the State commission in carrying out its
responsibilities under this Act.
`(h) FILING REQUIRED- A State commission shall make a copy of
each agreement approved under subsection (e) and each statement
approved under subsection (f) available for public inspection and
copying within 10 days after the agreement or statement is
approved. The State commission may charge a reasonable and
nondiscriminatory fee to the parties to the agreement or to the
party filing the statement to cover the costs of approving and
filing such agreement or statement.
`(i) AVAILABILITY TO OTHER TELECOMMUNICATIONS CARRIERS- A local
exchange carrier shall make available any interconnection, service,
or network element provided under an agreement approved under this
section to which it is a party to any other requesting
telecommunications carrier upon the same terms and conditions as
those provided in the agreement.
`(j) DEFINITION OF INCUMBENT LOCAL EXCHANGE CARRIER- For purposes
of this section, the term `incumbent local exchange carrier' has
the meaning provided in section 251(h).
`SEC. 253. REMOVAL OF BARRIERS TO ENTRY.
`(a) IN GENERAL- No State or local statute or regulation, or
other State or local legal requirement, may prohibit or have the
effect of prohibiting the ability of any entity to provide any
interstate or intrastate telecommunications service.
`(b) STATE REGULATORY AUTHORITY- Nothing in this section shall
affect the ability of a State to impose, on a competitively neutral
basis and consistent with section 254, requirements necessary to
preserve and advance universal service, protect the public safety
and welfare, ensure the continued quality of telecommunications
services, and safeguard the rights of consumers.
`(c) STATE AND LOCAL GOVERNMENT AUTHORITY- Nothing in this
section affects the authority of a State or local government to
manage the public rights-of-way or to require fair and reasonable
compensation from telecommunications providers, on a competitively
neutral and nondiscriminatory basis, for use of public
rights-of-way on a nondiscriminatory basis, if the compensation
required is publicly disclosed by such government.
`(d) PREEMPTION- If, after notice and an opportunity for public
comment, the Commission determines that a State or local government
has permitted or imposed any statute, regulation, or legal
requirement that violates subsection (a) or (b), the Commission
shall preempt the enforcement of such statute, regulation, or legal
requirement to the extent necessary to correct such violation or
inconsistency.
`(e) COMMERCIAL MOBILE SERVICE PROVIDERS- Nothing in this section
shall affect the application of section 332(c)(3) to commercial
mobile service providers.
`(f) RURAL MARKETS- It shall not be a violation of this section
for a State to require a telecommunications carrier that seeks to
provide telephone exchange service or exchange access in a service
area served by a rural telephone company to meet the requirements
in section 214(e)(1) for designation as an eligible
telecommunications carrier for that area before being permitted to
provide such service. This subsection shall not apply--
`(1) to a service area served by a rural telephone company
that has obtained an exemption, suspension, or modification of
section 251(c)(4) that effectively prevents a competitor from
meeting the requirements of section 214(e)(1); and
`(2) to a provider of commercial mobile services.
`SEC. 254. UNIVERSAL SERVICE.
`(a) PROCEDURES TO REVIEW UNIVERSAL SERVICE REQUIREMENTS-
`(1) FEDERAL-STATE JOINT BOARD ON UNIVERSAL SERVICE- Within
one month after the date of enactment of the Telecommunications
Act of 1996, the Commission shall institute and refer to a
Federal-State Joint Board under section 410(c) a proceeding to
recommend changes to any of its regulations in order to
implement sections 214(e) and this section, including the
definition of the services that are supported by Federal
universal service support mechanisms and a specific timetable
for completion of such recommendations. In addition to the
members of the Joint Board required under section 410(c), one
member of such Joint Board shall be a State-appointed utility
consumer advocate nominated by a national organization of State
utility consumer advocates. The Joint Board shall, after notice
and opportunity for public comment, make its recommendations to
the Commission 9 months after the date of enactment of the
Telecommunications Act of 1996.
`(2) COMMISSION ACTION- The Commission shall initiate a
single proceeding to implement the recommendations from the
Joint Board required by paragraph (1) and shall complete such
proceeding within 15 months after the date of enactment of the
Telecommunications Act of 1996. The rules established by such
proceeding shall include a definition of the services that are
supported by Federal universal service support mechanisms and a
specific timetable for implementation. Thereafter, the
Commission shall complete any proceeding to implement
subsequent recommendations from any Joint Board on universal
service within one year after receiving such recommendations.
`(b) UNIVERSAL SERVICE PRINCIPLES- The Joint Board and the
Commission shall base policies for the preservation and advancement
of universal service on the following principles:
`(1) QUALITY AND RATES- Quality services should be available
at just, reasonable, and affordable rates.
`(2) ACCESS TO ADVANCED SERVICES- Access to advanced
telecommunications and information services should be provided
in all regions of the Nation.
`(3) ACCESS IN RURAL AND HIGH COST AREAS- Consumers in all
regions of the Nation, including low-income consumers and those
in rural, insular, and high cost areas, should have access to
telecommunications and information services, including
interexchange services and advanced telecommunications and
information services, that are reasonably comparable to those
services provided in urban areas and that are available at
rates that are reasonably comparable to rates charged for
similar services in urban areas.
`(4) EQUITABLE AND NONDISCRIMINATORY CONTRIBUTIONS- All
providers of telecommunications services should make an
equitable and nondiscriminatory contribution to the
preservation and advancement of universal service.
`(5) SPECIFIC AND PREDICTABLE SUPPORT MECHANISMS- There
should be specific, predictable and sufficient Federal and
State mechanisms to preserve and advance universal service.
`(6) ACCESS TO ADVANCED TELECOMMUNICATIONS SERVICES FOR
SCHOOLS, HEALTH CARE, AND LIBRARIES- Elementary and secondary
schools and classrooms, health care providers, and libraries
should have access to advanced telecommunications services as
described in subsection (h).
`(7) ADDITIONAL PRINCIPLES- Such other principles as the
Joint Board and the Commission determine are necessary and
appropriate for the protection of the public interest,
convenience, and necessity and are consistent with this Act.
`(c) DEFINITION-
`(1) IN GENERAL- Universal service is an evolving level of
telecommunications services that the Commission shall establish
periodically under this section, taking into account advances
in telecommunications and information technologies and
services. The Joint Board in recommending, and the Commission
in establishing, the definition of the services that are
supported by Federal universal service support mechanisms shall
consider the extent to which such telecommunications services--
`(A) are essential to education, public health, or public
safety;
`(B) have, through the operation of market choices by
customers, been subscribed to by a substantial majority of
residential customers;
`(C) are being deployed in public telecommunications
networks by telecommunications carriers; and
`(D) are consistent with the public interest,
convenience, and necessity.
`(2) ALTERATIONS AND MODIFICATIONS- The Joint Board may, from
time to time, recommend to the Commission modifications in the
definition of the services that are supported by Federal
universal service support mechanisms.
`(3) SPECIAL SERVICES- In addition to the services included
in the definition of universal service under paragraph (1), the
Commission may designate additional services for such support
mechanisms for schools, libraries, and health care providers
for the purposes of subsection (h).
`(d) TELECOMMUNICATIONS CARRIER CONTRIBUTION- Every
telecommunications carrier that provides interstate
telecommunications services shall contribute, on an equitable and
nondiscriminatory basis, to the specific, predictable, and
sufficient mechanisms established by the Commission to preserve and
advance universal service. The Commission may exempt a carrier or
class of carriers from this requirement if the carrier's
telecommunications activities are limited to such an extent that
the level of such carrier's contribution to the preservation and
advancement of universal service would be de minimis. Any other
provider of interstate telecommunications may be required to
contribute to the preservation and advancement of universal service
if the public interest so requires.
`(e) UNIVERSAL SERVICE SUPPORT- After the date on which
Commission regulations implementing this section take effect, only
an eligible telecommunications carrier designated under section
214(e) shall be eligible to receive specific Federal universal
service support. A carrier that receives such support shall use
that support only for the provision, maintenance, and upgrading of
facilities and services for which the support is intended. Any
such support should be explicit and sufficient to achieve the
purposes of this section.
`(f) STATE AUTHORITY- A State may adopt regulations not
inconsistent with the Commission's rules to preserve and advance
universal service. Every telecommunications carrier that provides
intrastate telecommunications services shall contribute, on an
equitable and nondiscriminatory basis, in a manner determined by
the State to the preservation and advancement of universal service
in that State. A State may adopt regulations to provide for
additional definitions and standards to preserve and advance
universal service within that State only to the extent that such
regulations adopt additional specific, predictable, and sufficient
mechanisms to support such definitions or standards that do not
rely on or burden Federal universal service support mechanisms.
`(g) INTEREXCHANGE AND INTERSTATE SERVICES- Within 6 months after
the date of enactment of the Telecommunications Act of 1996, the
Commission shall adopt rules to require that the rates charged by
providers of interexchange telecommunications services to
subscribers in rural and high cost areas shall be no higher than
the rates charged by each such provider to its subscribers in urban
areas. Such rules shall also require that a provider of interstate
interexchange telecommunications services shall provide such
services to its subscribers in each State at rates no higher than
the rates charged to its subscribers in any other State.
`(h) TELECOMMUNICATIONS SERVICES FOR CERTAIN PROVIDERS-
`(1) IN GENERAL-
`(A) HEALTH CARE PROVIDERS FOR RURAL AREAS- A
telecommunications carrier shall, upon receiving a bona
fide request, provide telecommunications services which are
necessary for the provision of health care services in a
State, including instruction relating to such services, to
any public or nonprofit health care provider that serves
persons who reside in rural areas in that State at rates
that are reasonably comparable to rates charged for similar
services in urban areas in that State. A telecommunications
carrier providing service under this paragraph shall be
entitled to have an amount equal to the difference, if any,
between the rates for services provided to health care
providers for rural areas in a State and the rates for
similar services provided to other customers in comparable
rural areas in that State treated as a service obligation
as a part of its obligation to participate in the
mechanisms to preserve and advance universal service.
`(B) EDUCATIONAL PROVIDERS AND LIBRARIES- All
telecommunications carriers serving a geographic area
shall, upon a bona fide request for any of its services
that are within the definition of universal service under
subsection (c)(3), provide such services to elementary
schools, secondary schools, and libraries for educational
purposes at rates less than the amounts charged for similar
services to other parties. The discount shall be an amount
that the Commission, with respect to interstate services,
and the States, with respect to intrastate services,
determine is appropriate and necessary to ensure affordable
access to and use of such services by such entities. A
telecommunications carrier providing service under this
paragraph shall--
`(i) have an amount equal to the amount of the
discount treated as an offset to its obligation to
contribute to the mechanisms to preserve and advance
universal service, or
`(ii) notwithstanding the provisions of subsection
(e) of this section, receive reimbursement utilizing
the support mechanisms to preserve and advance
universal service.
`(2) ADVANCED SERVICES- The Commission shall establish
competitively neutral rules--
`(A) to enhance, to the extent technically feasible and
economically reasonable, access to advanced
telecommunications and information services for all public
and nonprofit elementary and secondary school classrooms,
health care providers, and libraries; and
`(B) to define the circumstances under which a
telecommunications carrier may be required to connect its
network to such public institutional telecommunications
users.
`(3) TERMS AND CONDITIONS- Telecommunications services and
network capacity provided to a public institutional
telecommunications user under this subsection may not be sold,
resold, or otherwise transferred by such user in consideration
for money or any other thing of value.
`(4) ELIGIBILITY OF USERS- No entity listed in this
subsection shall be entitled to preferential rates or treatment
as required by this subsection, if such entity operates as a
for-profit business, is a school described in paragraph (5)(A)
with an endowment of more than $50,000,000, or is a library not
eligible for participation in State-based plans for funds under
title III of the Library Services and Construction Act (20
U.S.C. 335c et seq.).
`(5) DEFINITIONS- For purposes of this subsection:
`(A) ELEMENTARY AND SECONDARY SCHOOLS- The term
`elementary and secondary schools' means elementary schools
and secondary schools, as defined in paragraphs (14) and
(25), respectively, of section 14101 of the Elementary and
Secondary Education Act of 1965 (20 U.S.C. 8801).
`(B) HEALTH CARE PROVIDER- The term `health care
provider' means--
`(i) post-secondary educational institutions offering
health care instruction, teaching hospitals, and
medical schools;
`(ii) community health centers or health centers
providing health care to migrants;
`(iii) local health departments or agencies;
`(iv) community mental health centers;
`(v) not-for-profit hospitals;
`(vi) rural health clinics; and
`(vii) consortia of health care providers consisting
of one or more entities described in clauses (i)
through (vi).
`(C) PUBLIC INSTITUTIONAL TELECOMMUNICATIONS USER- The
term `public institutional telecommunications user' means
an elementary or secondary school, a library, or a health
care provider as those terms are defined in this paragraph.
`(i) CONSUMER PROTECTION- The Commission and the States should
ensure that universal service is available at rates that are just,
reasonable, and affordable.
`(j) LIFELINE ASSISTANCE- Nothing in this section shall affect
the collection, distribution, or administration of the Lifeline
Assistance Program provided for by the Commission under regulations
set forth in section 69.117 of title 47, Code of Federal
Regulations, and other related sections of such title.
`(k) SUBSIDY OF COMPETITIVE SERVICES PROHIBITED- A
telecommunications carrier may not use services that are not
competitive to subsidize services that are subject to competition.
The Commission, with respect to interstate services, and the
States, with respect to intrastate services, shall establish any
necessary cost allocation rules, accounting safeguards, and
guidelines to ensure that services included in the definition of
universal service bear no more than a reasonable share of the joint
and common costs of facilities used to provide those services.
`SEC. 255. ACCESS BY PERSONS WITH DISABILITIES.
`(a) DEFINITIONS- As used in this section--
`(1) DISABILITY- The term `disability' has the meaning given
to it by section 3(2)(A) of the Americans with Disabilities Act
of 1990 (42 U.S.C. 12102(2)(A)).
`(2) READILY ACHIEVABLE- The term `readily achievable' has
the meaning given to it by section 301(9) of that Act (42
U.S.C. 12181(9)).
`(b) MANUFACTURING- A manufacturer of telecommunications
equipment or customer premises equipment shall ensure that the
equipment is designed, developed, and fabricated to be accessible
to and usable by individuals with disabilities, if readily
achievable.
`(c) TELECOMMUNICATIONS SERVICES- A provider of
telecommunications service shall ensure that the service is
accessible to and usable by individuals with disabilities, if
readily achievable.
`(d) COMPATIBILITY- Whenever the requirements of subsections (b)
and (c) are not readily achievable, such a manufacturer or provider
shall ensure that the equipment or service is compatible with
existing peripheral devices or specialized customer premises
equipment commonly used by individuals with disabilities to achieve
access, if readily achievable.
`(e) GUIDELINES- Within 18 months after the date of enactment of
the Telecommunications Act of 1996, the Architectural and
Transportation Barriers Compliance Board shall develop guidelines
for accessibility of telecommunications equipment and customer
premises equipment in conjunction with the Commission. The Board
shall review and update the guidelines periodically.
`(f) NO ADDITIONAL PRIVATE RIGHTS AUTHORIZED- Nothing in this
section shall be construed to authorize any private right of action
to enforce any requirement of this section or any regulation
thereunder. The Commission shall have exclusive jurisdiction with
respect to any complaint under this section.
`SEC. 256. COORDINATION FOR INTERCONNECTIVITY.
`(a) PURPOSE- It is the purpose of this section--
`(1) to promote nondiscriminatory accessibility by the
broadest number of users and vendors of communications products
and services to public telecommunications networks used to
provide telecommunications service through--
`(A) coordinated public telecommunications network
planning and design by telecommunications carriers and
other providers of telecommunications service; and
`(B) public telecommunications network interconnectivity,
and interconnectivity of devices with such networks used to
provide telecommunications service; and
`(2) to ensure the ability of users and information providers
to seamlessly and transparently transmit and receive
information between and across telecommunications networks.
`(b) COMMISSION FUNCTIONS- In carrying out the purposes of this
section, the Commission--
`(1) shall establish procedures for Commission oversight of
coordinated network planning by telecommunications carriers and
other providers of telecommunications service for the effective
and efficient interconnection of public telecommunications
networks used to provide telecommunications service; and
`(2) may participate, in a manner consistent with its
authority and practice prior to the date of enactment of this
section, in the development by appropriate industry
standards-setting organizations of public telecommunications
network interconnectivity standards that promote access to--
`(A) public telecommunications networks used to provide
telecommunications service;
`(B) network capabilities and services by individuals
with disabilities; and
`(C) information services by subscribers of rural
telephone companies.
`(c) COMMISSION'S AUTHORITY- Nothing in this section shall be
construed as expanding or limiting any authority that the
Commission may have under law in effect before the date of
enactment of the Telecommunications Act of 1996.
`(d) DEFINITION- As used in this section, the term `public
telecommunications network interconnectivity' means the ability of
two or more public telecommunications networks used to provide
telecommunications service to communicate and exchange information
without degeneration, and to interact in concert with one another.
`SEC. 257. MARKET ENTRY BARRIERS PROCEEDING.
`(a) ELIMINATION OF BARRIERS- Within 15 months after the date of
enactment of the Telecommunications Act of 1996, the Commission
shall complete a proceeding for the purpose of identifying and
eliminating, by regulations pursuant to its authority under this
Act (other than this section), market entry barriers for
entrepreneurs and other small businesses in the provision and
ownership of telecommunications services and information services,
or in the provision of parts or services to providers of
telecommunications services and information services.
`(b) NATIONAL POLICY- In carrying out subsection (a), the
Commission shall seek to promote the policies and purposes of this
Act favoring diversity of media voices, vigorous economic
competition, technological advancement, and promotion of the public
interest, convenience, and necessity.
`(c) PERIODIC REVIEW- Every 3 years following the completion of
the proceeding required by subsection (a), the Commission shall
review and report to Congress on--
`(1) any regulations prescribed to eliminate barriers within
its jurisdiction that are identified under subsection (a) and
that can be prescribed consistent with the public interest,
convenience, and necessity; and
`(2) the statutory barriers identified under subsection (a)
that the Commission recommends be eliminated, consistent with
the public interest, convenience, and necessity.
`SEC. 258. ILLEGAL CHANGES IN SUBSCRIBER CARRIER SELECTIONS.
`(a) PROHIBITION- No telecommunications carrier shall submit or
execute a change in a subscriber's selection of a provider of
telephone exchange service or telephone toll service except in
accordance with such verification procedures as the Commission
shall prescribe. Nothing in this section shall preclude any State
commission from enforcing such procedures with respect to
intrastate services.
`(b) LIABILITY FOR CHARGES- Any telecommunications carrier that
violates the verification procedures described in subsection (a)
and that collects charges for telephone exchange service or
telephone toll service from a subscriber shall be liable to the
carrier previously selected by the subscriber in an amount equal to
all charges paid by such subscriber after such violation, in
accordance with such procedures as the Commission may prescribe.
The remedies provided by this subsection are in addition to any
other remedies available by law.
`SEC. 259. INFRASTRUCTURE SHARING.
`(a) REGULATIONS REQUIRED- The Commission shall prescribe, within
one year after the date of enactment of the Telecommunications Act
of 1996, regulations that require incumbent local exchange carriers
(as defined in section 251(h)) to make available to any qualifying
carrier such public switched network infrastructure, technology,
information, and telecommunications facilities and functions as may
be requested by such qualifying carrier for the purpose of enabling
such qualifying carrier to provide telecommunications services, or
to provide access to information services, in the service area in
which such qualifying carrier has requested and obtained
designation as an eligible telecommunications carrier under section
214(e).
`(b) TERMS AND CONDITIONS OF REGULATIONS- The regulations
prescribed by the Commission pursuant to this section shall--
`(1) not require a local exchange carrier to which this
section applies to take any action that is economically
unreasonable or that is contrary to the public interest;
`(2) permit, but shall not require, the joint ownership or
operation of public switched network infrastructure and
services by or among such local exchange carrier and a
qualifying carrier;
`(3) ensure that such local exchange carrier will not be
treated by the Commission or any State as a common carrier for
hire or as offering common carrier services with respect to any
infrastructure, technology, information, facilities, or
functions made available to a qualifying carrier in accordance
with regulations issued pursuant to this section;
`(4) ensure that such local exchange carrier makes such
infrastructure, technology, information, facilities, or
functions available to a qualifying carrier on just and
reasonable terms and conditions that permit such qualifying
carrier to fully benefit from the economies of scale and scope
of such local exchange carrier, as determined in accordance
with guidelines prescribed by the Commission in regulations
issued pursuant to this section;
`(5) establish conditions that promote cooperation between
local exchange carriers to which this section applies and
qualifying carriers;
`(6) not require a local exchange carrier to which this
section applies to engage in any infrastructure sharing
agreement for any services or access which are to be provided
or offered to consumers by the qualifying carrier in such local
exchange carrier's telephone exchange area; and
`(7) require that such local exchange carrier file with the
Commission or State for public inspection, any tariffs,
contracts, or other arrangements showing the rates, terms, and
conditions under which such carrier is making available public
switched network infrastructure and functions under this section.
`(c) INFORMATION CONCERNING DEPLOYMENT OF NEW SERVICES AND
EQUIPMENT- A local exchange carrier to which this section applies
that has entered into an infrastructure sharing agreement under
this section shall provide to each party to such agreement timely
information on the planned deployment of telecommunications
services and equipment, including any software or upgrades of
software integral to the use or operation of such
telecommunications equipment.
`(d) DEFINITION- For purposes of this section, the term
`qualifying carrier' means a telecommunications carrier that--
`(1) lacks economies of scale or scope, as determined in
accordance with regulations prescribed by the Commission
pursuant to this section; and
`(2) offers telephone exchange service, exchange access, and
any other service that is included in universal service, to all
consumers without preference throughout the service area for
which such carrier has been designated as an eligible
telecommunications carrier under section 214(e).
`SEC. 260. PROVISION OF TELEMESSAGING SERVICE.
`(a) NONDISCRIMINATION SAFEGUARDS- Any local exchange carrier
subject to the requirements of section 251(c) that provides
telemessaging service--
`(1) shall not subsidize its telemessaging service directly
or indirectly from its telephone exchange service or its
exchange access; and
`(2) shall not prefer or discriminate in favor of its
telemessaging service operations in its provision of
telecommunications services.
`(b) EXPEDITED CONSIDERATION OF COMPLAINTS- The Commission shall
establish procedures for the receipt and review of complaints
concerning violations of subsection (a) or the regulations
thereunder that result in material financial harm to a provider of
telemessaging service. Such procedures shall ensure that the
Commission will make a final determination with respect to any such
complaint within 120 days after receipt of the complaint. If the
complaint contains an appropriate showing that the alleged
violation occurred, the Commission shall, within 60 days after
receipt of the complaint, order the local exchange carrier and any
affiliates to cease engaging in such violation pending such final
determination.
`(c) DEFINITION- As used in this section, the term `telemessaging
service' means voice mail and voice storage and retrieval services,
any live operator services used to record, transcribe, or relay
messages (other than telecommunications relay services), and any
ancillary services offered in combination with these services.
`SEC. 261. EFFECT ON OTHER REQUIREMENTS.
`(a) COMMISSION REGULATIONS- Nothing in this part shall be
construed to prohibit the Commission from enforcing regulations
prescribed prior to the date of enactment of the Telecommunications
Act of 1996 in fulfilling the requirements of this part, to the
extent that such regulations are not inconsistent with the
provisions of this part.
`(b) EXISTING STATE REGULATIONS- Nothing in this part shall be
construed to prohibit any State commission from enforcing
regulations prescribed prior to the date of enactment of the
Telecommunications Act of 1996, or from prescribing regulations
after such date of enactment, in fulfilling the requirements of
this part, if such regulations are not inconsistent with the
provisions of this part.
`(c) ADDITIONAL STATE REQUIREMENTS- Nothing in this part
precludes a State from imposing requirements on a
telecommunications carrier for intrastate services that are
necessary to further competition in the provision of telephone
exchange service or exchange access, as long as the State's
requirements are not inconsistent with this part or the
Commission's regulations to implement this part.'.
(b) DESIGNATION OF PART I- Title II of the Act is further amended
by inserting before the heading of section 201 the following new
heading:
`PART I--COMMON CARRIER REGULATION'.
(c) STYLISTIC CONSISTENCY- The Act is amended so that--
(1) the designation and heading of each title of the Act
shall be in the form and typeface of the designation and
heading of this title of this Act; and
(2) the designation and heading of each part of each title of
the Act shall be in the form and typeface of the designation
and heading of part I of title II of the Act, as amended by
subsection (a).
SEC. 102. ELIGIBLE TELECOMMUNICATIONS CARRIERS.
(a) IN GENERAL- Section 214 (47 U.S.C. 214) is amended by adding
at the end thereof the following new subsection:
`(e) PROVISION OF UNIVERSAL SERVICE-
`(1) ELIGIBLE TELECOMMUNICATIONS CARRIERS- A common carrier
designated as an eligible telecommunications carrier under
paragraph (2) or (3) shall be eligible to receive universal
service support in accordance with section 254 and shall,
throughout the service area for which the designation is
received--
`(A) offer the services that are supported by Federal
universal service support mechanisms under section 254(c),
either using its own facilities or a combination of its own
facilities and resale of another carrier's services
(including the services offered by another eligible
telecommunications carrier); and
`(B) advertise the availability of such services and the
charges therefor using media of general distribution.
`(2) DESIGNATION OF ELIGIBLE TELECOMMUNICATIONS CARRIERS- A
State commission shall upon its own motion or upon request
designate a common carrier that meets the requirements of
paragraph (1) as an eligible telecommunications carrier for a
service area designated by the State commission. Upon request
and consistent with the public interest, convenience, and
necessity, the State commission may, in the case of an area
served by a rural telephone company, and shall, in the case of
all other areas, designate more than one common carrier as an
eligible telecommunications carrier for a service area
designated by the State commission, so long as each additional
requesting carrier meets the requirements of paragraph (1).
Before designating an additional eligible telecommunications
carrier for an area served by a rural telephone company, the
State commission shall find that the designation is in the
public interest.
`(3) DESIGNATION OF ELIGIBLE TELECOMMUNICATIONS CARRIERS FOR
UNSERVED AREAS- If no common carrier will provide the services
that are supported by Federal universal service support
mechanisms under section 254(c) to an unserved community or any
portion thereof that requests such service, the Commission,
with respect to interstate services, or a State commission,
with respect to intrastate services, shall determine which
common carrier or carriers are best able to provide such
service to the requesting unserved community or portion thereof
and shall order such carrier or carriers to provide such
service for that unserved community or portion thereof. Any
carrier or carriers ordered to provide such service under this
paragraph shall meet the requirements of paragraph (1) and
shall be designated as an eligible telecommunications carrier
for that community or portion thereof.
`(4) RELINQUISHMENT OF UNIVERSAL SERVICE- A State commission
shall permit an eligible telecommunications carrier to
relinquish its designation as such a carrier in any area served
by more than one eligible telecommunications carrier. An
eligible telecommunications carrier that seeks to relinquish
its eligible telecommunications carrier designation for an area
served by more than one eligible telecommunications carrier
shall give advance notice to the State commission of such
relinquishment. Prior to permitting a telecommunications
carrier designated as an eligible telecommunications carrier to
cease providing universal service in an area served by more
than one eligible telecommunications carrier, the State
commission shall require the remaining eligible
telecommunications carrier or carriers to ensure that all
customers served by the relinquishing carrier will continue to
be served, and shall require sufficient notice to permit the
purchase or construction of adequate facilities by any
remaining eligible telecommunications carrier. The State
commission shall establish a time, not to exceed one year after
the State commission approves such relinquishment under this
paragraph, within which such purchase or construction shall be
completed.
`(5) SERVICE AREA DEFINED- The term `service area' means a
geographic area established by a State commission for the
purpose of determining universal service obligations and
support mechanisms. In the case of an area served by a rural
telephone company, `service area' means such company's `study
area' unless and until the Commission and the States, after
taking into account recommendations of a Federal-State Joint
Board instituted under section 410(c), establish a different
definition of service area for such company.'.
SEC. 103. EXEMPT TELECOMMUNICATIONS COMPANIES.
The Public Utility Holding Company Act of 1935 (15 U.S.C. 79 and
following) is amended by redesignating sections 34 and 35 as
sections 35 and 36, respectively, and by inserting the following
new section after section 33:
`SEC. 34. EXEMPT TELECOMMUNICATIONS COMPANIES.
`(a) DEFINITIONS- For purposes of this section--
`(1) EXEMPT TELECOMMUNICATIONS COMPANY- The term `exempt
telecommunications company' means any person determined by the
Federal Communications Commission to be engaged directly or
indirectly, wherever located, through one or more affiliates
(as defined in section 2(a)(11)(B)), and exclusively in the
business of providing---
`(A) telecommunications services;
`(B) information services;
`(C) other services or products subject to the
jurisdiction of the Federal Communications Commission; or
`(D) products or services that are related or incidental
to the provision of a product or service described in
subparagraph (A), (B), or (C).
No person shall be deemed to be an exempt telecommunications
company under this section unless such person has applied to
the Federal Communications Commission for a determination under
this paragraph. A person applying in good faith for such a
determination shall be deemed an exempt telecommunications
company under this section, with all of the exemptions provided
by this section, until the Federal Communications Commission
makes such determination. The Federal Communications Commission
shall make such determination within 60 days of its receipt of
any such application filed after the enactment of this section
and shall notify the Commission whenever a determination is
made under this paragraph that any person is an exempt
telecommunications company. Not later than 12 months after the
date of enactment of this section, the Federal Communications
Commission shall promulgate rules implementing the provisions
of this paragraph which shall be applicable to applications
filed under this paragraph after the effective date of such
rules.
`(2) OTHER TERMS- For purposes of this section, the terms
`telecommunications services' and `information services' shall
have the same meanings as provided in the Communications Act of
1934.
`(b) STATE CONSENT FOR SALE OF EXISTING RATE-BASED FACILITIES- If
a rate or charge for the sale of electric energy or natural gas
(other than any portion of a rate or charge which represents
recovery of the cost of a wholesale rate or charge) for, or in
connection with, assets of a public utility company that is an
associate company or affiliate of a registered holding company was
in effect under the laws of any State as of December 19, 1995, the
public utility company owning such assets may not sell such assets
to an exempt telecommunications company that is an associate
company or affiliate unless State commissions having jurisdiction
over such public utility company approve such sale. Nothing in
this subsection shall preempt the otherwise applicable authority of
any State to approve or disapprove the sale of such assets. The
approval of the Commission under this Act shall not be required for
the sale of assets as provided in this subsection.
`(c) OWNERSHIP OF ETCS BY EXEMPT HOLDING COMPANIES-
Notwithstanding any provision of this Act, a holding company that
is exempt under section 3 of this Act shall be permitted, without
condition or limitation under this Act, to acquire and maintain an
interest in the business of one or more exempt telecommunications
companies.
`(d) OWNERSHIP OF ETCS BY REGISTERED HOLDING COMPANIES-
Notwithstanding any provision of this Act, a registered holding
company shall be permitted (without the need to apply for, or
receive, approval from the Commission, and otherwise without
condition under this Act) to acquire and hold the securities, or an
interest in the business, of one or more exempt telecommunications
companies.
`(e) FINANCING AND OTHER RELATIONSHIPS BETWEEN ETCS AND
REGISTERED HOLDING COMPANIES- The relationship between an exempt
telecommunications company and a registered holding company, its
affiliates and associate companies, shall remain subject to the
jurisdiction of the Commission under this Act: [Italic->]
Provided, [<-Italic] That--
`(1) section 11 of this Act shall not prohibit the ownership
of an interest in the business of one or more exempt
telecommunications companies by a registered holding company
(regardless of activities engaged in or where facilities owned
or operated by such exempt telecommunications companies are
located), and such ownership by a registered holding company
shall be deemed consistent with the operation of an integrated
public utility system;
`(2) the ownership of an interest in the business of one or
more exempt telecommunications companies by a registered
holding company (regardless of activities engaged in or where
facilities owned or operated by such exempt telecommunications
companies are located) shall be considered as reasonably
incidental, or economically necessary or appropriate, to the
operations of an integrated public utility system;
`(3) the Commission shall have no jurisdiction under this Act
over, and there shall be no restriction or approval required
under this Act with respect to (A) the issue or sale of a
security by a registered holding company for purposes of
financing the acquisition of an exempt telecommunications
company, or (B) the guarantee of a security of an exempt
telecommunications company by a registered holding company; and
`(4) except for costs that should be fairly and equitably
allocated among companies that are associate companies of a
registered holding company, the Commission shall have no
jurisdiction under this Act over the sales, service, and
construction contracts between an exempt telecommunications
company and a registered holding company, its affiliates and
associate companies.
`(f) REPORTING OBLIGATIONS CONCERNING INVESTMENTS AND ACTIVITIES
OF REGISTERED PUBLIC-UTILITY HOLDING COMPANY SYSTEMS-
`(1) OBLIGATIONS TO REPORT INFORMATION- Any registered
holding company or subsidiary thereof that acquires or holds
the securities, or an interest in the business, of an exempt
telecommunications company shall file with the Commission such
information as the Commission, by rule, may prescribe
concerning--
`(A) investments and activities by the registered holding
company, or any subsidiary thereof, with respect to exempt
telecommunications companies, and
`(B) any activities of an exempt telecommunications
company within the holding company system,
that are reasonably likely to have a material impact on the
financial or operational condition of the holding company system.
`(2) AUTHORITY TO REQUIRE ADDITIONAL INFORMATION- If, based
on reports provided to the Commission pursuant to paragraph (1)
of this subsection or other available information, the
Commission reasonably concludes that it has concerns regarding
the financial or operational condition of any registered
holding company or any subsidiary thereof (including an exempt
telecommunications company), the Commission may require such
registered holding company to make additional reports and
provide additional information.
`(3) AUTHORITY TO LIMIT DISCLOSURE OF INFORMATION-
Notwithstanding any other provision of law, the Commission
shall not be compelled to disclose any information required to
be reported under this subsection. Nothing in this subsection
shall authorize the Commission to withhold the information from
Congress, or prevent the Commission from complying with a
request for information from any other Federal or State
department or agency requesting the information for purposes
within the scope of its jurisdiction. For purposes of section
552 of title 5, United States Code, this subsection shall be
considered a statute described in subsection (b)(3)(B) of such
section 552.
`(g) ASSUMPTION OF LIABILITIES- Any public utility company that
is an associate company, or an affiliate, of a registered holding
company and that is subject to the jurisdiction of a State
commission with respect to its retail electric or gas rates shall
not issue any security for the purpose of financing the
acquisition, ownership, or operation of an exempt
telecommunications company. Any public utility company that is an
associate company, or an affiliate, of a registered holding company
and that is subject to the jurisdiction of a State commission with
respect to its retail electric or gas rates shall not assume any
obligation or liability as guarantor, endorser, surety, or
otherwise by the public utility company in respect of any security
of an exempt telecommunications company.
`(h) PLEDGING OR MORTGAGING OF ASSETS- Any public utility company
that is an associate company, or affiliate, of a registered holding
company and that is subject to the jurisdiction of a State
commission with respect to its retail electric or gas rates shall
not pledge, mortgage, or otherwise use as collateral any assets of
the public utility company or assets of any subsidiary company
thereof for the benefit of an exempt telecommunications company.
`(i) PROTECTION AGAINST ABUSIVE AFFILIATE TRANSACTIONS- A public
utility company may enter into a contract to purchase services or
products described in subsection (a)(1) from an exempt
telecommunications company that is an affiliate or associate
company of the public utility company only if--
`(1) every State commission having jurisdiction over the
retail rates of such public utility company approves such
contract; or
`(2) such public utility company is not subject to State
commission retail rate regulation and the purchased services or
products--
`(A) would not be resold to any affiliate or associate
company; or
`(B) would be resold to an affiliate or associate company
and every State commission having jurisdiction over the
retail rates of such affiliate or associate company makes
the determination required by subparagraph (A).
The requirements of this subsection shall not apply in any case in
which the State or the State commission concerned publishes a
notice that the State or State commission waives its authority
under this subsection.
`(j) NONPREEMPTION OF RATE AUTHORITY- Nothing in this Act shall
preclude the Federal Energy Regulatory Commission or a State
commission from exercising its jurisdiction under otherwise
applicable law to determine whether a public utility company may
recover in rates the costs of products or services purchased from
or sold to an associate company or affiliate that is an exempt
telecommunications company, regardless of whether such costs are
incurred through the direct or indirect purchase or sale of
products or services from such associate company or affiliate.
`(k) RECIPROCAL ARRANGEMENTS PROHIBITED- Reciprocal arrangements
among companies that are not affiliates or associate companies of
each other that are entered into in order to avoid the provisions
of this section are prohibited.
`(l) BOOKS AND RECORDS- (1) Upon written order of a State
commission, a State commission may examine the books, accounts,
memoranda, contracts, and records of--
`(A) a public utility company subject to its regulatory
authority under State law;
`(B) any exempt telecommunications company selling products
or services to such public utility company or to an associate
company of such public utility company; and
`(C) any associate company or affiliate of an exempt
telecommunications company which sells products or services to
a public utility company referred to in subparagraph (A),
wherever located, if such examination is required for the effective
discharge of the State commission's regulatory responsibilities
affecting the provision of electric or gas service in connection
with the activities of such exempt telecommunications company.
`(2) Where a State commission issues an order pursuant to
paragraph (1), the State commission shall not publicly disclose
trade secrets or sensitive commercial information.
`(3) Any United States district court located in the State in
which the State commission referred to in paragraph (1) is located
shall have jurisdiction to enforce compliance with this subsection.
`(4) Nothing in this section shall--
`(A) preempt applicable State law concerning the provision of
records and other information; or
`(B) in any way limit rights to obtain records and other
information under Federal law, contracts, or otherwise.
`(m) INDEPENDENT AUDIT AUTHORITY FOR STATE COMMISSIONS-
`(1) STATE MAY ORDER AUDIT- Any State commission with
jurisdiction over a public utility company that--
`(A) is an associate company of a registered holding
company; and
`(B) transacts business, directly or indirectly, with a
subsidiary company, an affiliate or an associate company
that is an exempt telecommunications company,
may order an independent audit to be performed, no more
frequently than on an annual basis, of all matters deemed
relevant by the selected auditor that reasonably relate to
retail rates: [Italic->] Provided [<-Italic] , That such
matters relate, directly or indirectly, to transactions or
transfers between the public utility company subject to its
jurisdiction and such exempt telecommunications company.
`(2) SELECTION OF FIRM TO CONDUCT AUDIT- (A) If a State
commission orders an audit in accordance with paragraph (1),
the public utility company and the State commission shall
jointly select, within 60 days, a firm to perform the audit.
The firm selected to perform the audit shall possess
demonstrated qualifications relating to--
`(i) competency, including adequate technical training
and professional proficiency in each discipline necessary
to carry out the audit; and
`(ii) independence and objectivity, including that the
firm be free from personal or external impairments to
independence, and should assume an independent position
with the State commission and auditee, making certain that
the audit is based upon an impartial consideration of all
pertinent facts and responsible opinions.
`(B) The public utility company and the exempt
telecommunications company shall cooperate fully with all
reasonable requests necessary to perform the audit and the
public utility company shall bear all costs of having the audit
performed.
`(3) AVAILABILITY OF AUDITOR'S REPORT- The auditor's report
shall be provided to the State commission not later than 6
months after the selection of the auditor, and provided to the
public utility company not later than 60 days thereafter.
`(n) APPLICABILITY OF TELECOMMUNICATIONS REGULATION- Nothing in
this section shall affect the authority of the Federal
Communications Commission under the Communications Act of 1934, or
the authority of State commissions under State laws concerning the
provision of telecommunications services, to regulate the
activities of an exempt telecommunications company.'.
SEC. 104. NONDISCRIMINATION PRINCIPLE.
Section 1 (47 U.S.C. 151) is amended by inserting after `to all
the people of the United States' the following: `, without
discrimination on the basis of race, color, religion, national
origin, or sex,'.
SUBTITLE B--SPECIAL PROVISIONS CONCERNING BELL OPERATING COMPANIES
SEC. 151. BELL OPERATING COMPANY PROVISIONS.
(a) ESTABLISHMENT OF PART III OF TITLE II- Title II is amended by
adding at the end of part II (as added by section 101) the
following new part:
`PART III--SPECIAL PROVISIONS CONCERNING BELL OPERATING COMPANIES
`SEC. 271. BELL OPERATING COMPANY ENTRY INTO INTERLATA SERVICES.
`(a) GENERAL LIMITATION- Neither a Bell operating company, nor
any affiliate of a Bell operating company, may provide interLATA
services except as provided in this section.
`(b) INTERLATA SERVICES TO WHICH THIS SECTION APPLIES-
`(1) IN-REGION SERVICES- A Bell operating company, or any
affiliate of that Bell operating company, may provide interLATA
services originating in any of its in-region States (as defined
in subsection (i)) if the Commission approves the application
of such company for such State under subsection (d)(3).
`(2) OUT-OF-REGION SERVICES- A Bell operating company, or any
affiliate of that Bell operating company, may provide interLATA
services originating outside its in-region States after the
date of enactment of the Telecommunications Act of 1996,
subject to subsection (j).
`(3) INCIDENTAL INTERLATA SERVICES- A Bell operating company,
or any affiliate of a Bell operating company, may provide
incidental interLATA services (as defined in subsection (g))
originating in any State after the date of enactment of the
Telecommunications Act of 1996.
`(4) TERMINATION- Nothing in this section prohibits a Bell
operating company or any of its affiliates from providing
termination for interLATA services, subject to subsection (j).
`(c) REQUIREMENTS FOR PROVIDING CERTAIN IN-REGION INTERLATA
SERVICES-
`(1) AGREEMENT OR STATEMENT- A Bell operating company meets
the requirements of this paragraph if it meets the requirements
of subparagraph (A) or subparagraph (B) of this paragraph for
each State for which the authorization is sought.
`(A) PRESENCE OF A FACILITIES-BASED COMPETITOR- A Bell
operating company meets the requirements of this
subparagraph if it has entered into one or more binding
agreements that have been approved under section 252
specifying the terms and conditions under which the Bell
operating company is providing access and interconnection
to its network facilities for the network facilities of one
or more unaffiliated competing providers of telephone
exchange service (as defined in section 3(47)(A), but
excluding exchange access) to residential and business
subscribers. For the purpose of this subparagraph, such
telephone exchange service may be offered by such competing
providers either exclusively over their own telephone
exchange service facilities or predominantly over their own
telephone exchange service facilities in combination with
the resale of the telecommunications services of another
carrier. For the purpose of this subparagraph, services
provided pursuant to subpart K of part 22 of the
Commission's regulations (47 C.F.R. 22.901 et seq.) shall
not be considered to be telephone exchange services.
`(B) FAILURE TO REQUEST ACCESS- A Bell operating company
meets the requirements of this subparagraph if, after 10
months after the date of enactment of the
Telecommunications Act of 1996, no such provider has
requested the access and interconnection described in
subparagraph (A) before the date which is 3 months before
the date the company makes its application under subsection
(d)(1), and a statement of the terms and conditions that
the company generally offers to provide such access and
interconnection has been approved or permitted to take
effect by the State commission under section 252(f). For
purposes of this subparagraph, a Bell operating company
shall be considered not to have received any request for
access and interconnection if the State commission of such
State certifies that the only provider or providers making
such a request have (i) failed to negotiate in good faith
as required by section 252, or (ii) violated the terms of
an agreement approved under section 252 by the provider's
failure to comply, within a reasonable period of time, with
the implementation schedule contained in such agreement.
`(2) SPECIFIC INTERCONNECTION REQUIREMENTS-
`(A) AGREEMENT REQUIRED- A Bell operating company meets
the requirements of this paragraph if, within the State for
which the authorization is sought--
`(i)(I) such company is providing access and
interconnection pursuant to one or more agreements
described in paragraph (1)(A), or
`(II) such company is generally offering access and
interconnection pursuant to a statement described in
paragraph (1)(B), and
`(ii) such access and interconnection meets the
requirements of subparagraph (B) of this paragraph.
`(B) COMPETITIVE CHECKLIST- Access or interconnection
provided or generally offered by a Bell operating company
to other telecommunications carriers meets the requirements
of this subparagraph if such access and interconnection
includes each of the following:
`(i) Interconnection in accordance with the
requirements of sections 251(c)(2) and 252(d)(1).
`(ii) Nondiscriminatory access to network elements in
accordance with the requirements of sections 251(c)(3)
and 252(d)(1).
`(iii) Nondiscriminatory access to the poles, ducts,
conduits, and rights-of-way owned or controlled by the
Bell operating company at just and reasonable rates in
accordance with the requirements of section 224.
`(iv) Local loop transmission from the central office
to the customer's premises, unbundled from local
switching or other services.
`(v) Local transport from the trunk side of a
wireline local exchange carrier switch unbundled from
switching or other services.
`(vi) Local switching unbundled from transport, local
loop transmission, or other services.
`(vii) Nondiscriminatory access to--
`(I) 911 and E911 services;
`(II) directory assistance services to allow the other carrier's
customers to obtain telephone numbers; and
`(III) operator call completion services.
`(viii) White pages directory listings for customers
of the other carrier's telephone exchange service.
`(ix) Until the date by which telecommunications
numbering administration guidelines, plan, or rules are
established, nondiscriminatory access to telephone
numbers for assignment to the other carrier's telephone
exchange service customers. After that date, compliance
with such guidelines, plan, or rules.
`(x) Nondiscriminatory access to databases and
associated signaling necessary for call routing and
completion.
`(xi) Until the date by which the Commission issues
regulations pursuant to section 251 to require number
portability, interim telecommunications number
portability through remote call forwarding, direct
inward dialing trunks, or other comparable
arrangements, with as little impairment of functioning,
quality, reliability, and convenience as possible.
After that date, full compliance with such regulations.
`(xii) Nondiscriminatory access to such services or
information as are necessary to allow the requesting
carrier to implement local dialing parity in accordance
with the requirements of section 251(b)(3).
`(xiii) Reciprocal compensation arrangements in
accordance with the requirements of section 252(d)(2).
`(xiv) Telecommunications services are available for
resale in accordance with the requirements of sections
251(c)(4) and 252(d)(3).
`(d) ADMINISTRATIVE PROVISIONS-
`(1) APPLICATION TO COMMISSION- On and after the date of
enactment of the Telecommunications Act of 1996, a Bell
operating company or its affiliate may apply to the Commission
for authorization to provide interLATA services originating in
any in-region State. The application shall identify each State
for which the authorization is sought.
`(2) CONSULTATION-
`(A) CONSULTATION WITH THE ATTORNEY GENERAL- The
Commission shall notify the Attorney General promptly of
any application under paragraph (1). 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 the application
using any standard the Attorney General considers
appropriate. The Commission shall give substantial weight
to the Attorney General's evaluation, but such evaluation
shall not have any preclusive effect on any Commission
decision under paragraph (3).
`(B) CONSULTATION WITH STATE COMMISSIONS- Before making
any determination under this subsection, the Commission
shall consult with the State commission of any State that
is the subject of the application in order to verify the
compliance of the Bell operating company with the
requirements of subsection (c).
`(3) DETERMINATION- Not later than 90 days after receiving an
application under paragraph (1), the Commission shall issue a
written determination approving or denying the authorization
requested in the application for each State. The Commission
shall not approve the authorization requested in an application
submitted under paragraph (1) unless it finds that--
`(A) the petitioning Bell operating company has met the
requirements of subsection (c)(1) and--
`(i) with respect to access and interconnection
provided pursuant to subsection (c)(1)(A), has fully
implemented the competitive checklist in subsection
(c)(2)(B); or
`(ii) with respect to access and interconnection
generally offered pursuant to a statement under
subsection (c)(1)(B), such statement offers all of the
items included in the competitive checklist in
subsection (c)(2)(B);
`(B) the requested authorization will be carried out in
accordance with the requirements of section 272; and
`(C) the requested authorization is consistent with the
public interest, convenience, and necessity.
The Commission shall state the basis for its approval or denial
of the application.
`(4) LIMITATION ON COMMISSION- The Commission may not, by
rule or otherwise, limit or extend the terms used in the
competitive checklist set forth in subsection (c)(2)(B).
`(5) PUBLICATION- Not later than 10 days after issuing a
determination under paragraph (3), the Commission shall publish
in the Federal Register a brief description of the determination.
`(6) ENFORCEMENT OF CONDITIONS-
`(A) COMMISSION AUTHORITY- If at any time after the
approval of an application under paragraph (3), the
Commission determines that a Bell operating company has
ceased to meet any of the conditions required for such
approval, the Commission may, after notice and opportunity
for a hearing--
`(i) issue an order to such company to correct the
deficiency;
`(ii) impose a penalty on such company pursuant to
title V; or
`(iii) suspend or revoke such approval.
`(B) RECEIPT AND REVIEW OF COMPLAINTS- The Commission
shall establish procedures for the review of complaints
concerning failures by Bell operating companies to meet
conditions required for approval under paragraph (3).
Unless the parties otherwise agree, the Commission shall
act on such complaint within 90 days.
`(e) LIMITATIONS-
`(1) JOINT MARKETING OF LOCAL AND LONG DISTANCE SERVICES-
Until a Bell operating company is authorized pursuant to
subsection (d) to provide interLATA services in an in-region
State, or until 36 months have passed since the date of
enactment of the Telecommunications Act of 1996, whichever is
earlier, a telecommunications carrier that serves greater than
5 percent of the Nation's presubscribed access lines may not
jointly market in such State telephone exchange service
obtained from such company pursuant to section 251(c)(4) with
interLATA services offered by that telecommunications carrier.
`(2) INTRALATA TOLL DIALING PARITY-
`(A) PROVISION REQUIRED- A Bell operating company granted
authority to provide interLATA services under subsection
(d) shall provide intraLATA toll dialing parity throughout
that State coincident with its exercise of that authority.
`(B) LIMITATION- Except for single-LATA States and States
that have issued an order by December 19, 1995, requiring a
Bell operating company to implement intraLATA toll dialing
parity, a State may not require a Bell operating company to
implement intraLATA toll dialing parity in that State
before a Bell operating company has been granted authority
under this section to provide interLATA services
originating in that State or before 3 years after the date
of enactment of the Telecommunications Act of 1996,
whichever is earlier. Nothing in this subparagraph
precludes a State from issuing an order requiring intraLATA
toll dialing parity in that State prior to either such date
so long as such order does not take effect until after the
earlier of either such dates.
`(f) EXCEPTION FOR PREVIOUSLY AUTHORIZED ACTIVITIES- Neither
subsection (a) nor section 273 shall prohibit a Bell operating
company or affiliate from engaging, at any time after the date of
enactment of the Telecommunications Act of 1996, in any activity to
the extent authorized by, and subject to the terms and conditions
contained in, an order entered by the United States District Court
for the District of Columbia pursuant to section VII or VIII(C) of
the AT&T Consent Decree if such order was entered on or before such
date of enactment, to the extent such order is not reversed or
vacated on appeal. Nothing in this subsection shall be construed to
limit, or to impose terms or conditions on, an activity in which a
Bell operating company is otherwise authorized to engage under any
other provision of this section.
`(g) DEFINITION OF INCIDENTAL INTERLATA SERVICES- For purposes of
this section, the term `incidental interLATA services' means the
interLATA provision by a Bell operating company or its affiliate--
`(1)(A) of audio programming, video programming, or other
programming services to subscribers to such services of such
company or affiliate;
`(B) of the capability for interaction by such subscribers to
select or respond to such audio programming, video programming,
or other programming services;
`(C) to distributors of audio programming or video
programming that such company or affiliate owns or controls, or
is licensed by the copyright owner of such programming (or by
an assignee of such owner) to distribute; or
`(D) of alarm monitoring services;
`(2) of two-way interactive video services or Internet
services over dedicated facilities to or for elementary and
secondary schools as defined in section 254(h)(5);
`(3) of commercial mobile services in accordance with section
332(c) of this Act and with the regulations prescribed by the
Commission pursuant to paragraph (8) of such section;
`(4) of a service that permits a customer that is located in
one LATA to retrieve stored information from, or file
information for storage in, information storage facilities of
such company that are located in another LATA;
`(5) of signaling information used in connection with the
provision of telephone exchange services or exchange access by
a local exchange carrier; or
`(6) of network control signaling information to, and receipt
of such signaling information from, common carriers offering
interLATA services at any location within the area in which
such Bell operating company provides telephone exchange
services or exchange access.
`(h) LIMITATIONS- The provisions of subsection (g) are intended
to be narrowly construed. The interLATA services provided under
subparagraph (A), (B), or (C) of subsection (g)(1) are limited to
those interLATA transmissions incidental to the provision by a Bell
operating company or its affiliate of video, audio, and other
programming services that the company or its affiliate is engaged
in providing to the public. The Commission shall ensure that the
provision of services authorized under subsection (g) by a Bell
operating company or its affiliate will not adversely affect
telephone exchange service ratepayers or competition in any
telecommunications market.
`(i) ADDITIONAL DEFINITIONS- As used in this section--
`(1) IN-REGION STATE- The term `in-region State' means a
State in which a Bell operating company or any of its
affiliates was authorized to provide wireline telephone
exchange service pursuant to the reorganization plan approved
under the AT&T Consent Decree, as in effect on the day before
the date of enactment of the Telecommunications Act of 1996.
`(2) AUDIO PROGRAMMING SERVICES- The term `audio programming
services' means programming provided by, or generally
considered to be comparable to programming provided by, a radio
broadcast station.
`(3) VIDEO PROGRAMMING SERVICES; OTHER PROGRAMMING SERVICES-
The terms `video programming service' and `other programming
services' have the same meanings as such terms have under
section 602 of this Act.
`(j) CERTAIN SERVICE APPLICATIONS TREATED AS IN-REGION SERVICE
APPLICATIONS- For purposes of this section, a Bell operating
company application to provide 800 service, private line service,
or their equivalents that--
`(1) terminate in an in-region State of that Bell operating
company, and
`(2) allow the called party to determine the interLATA carrier,
shall be considered an in-region service subject to the
requirements of subsection (b)(1).
`SEC. 272. SEPARATE AFFILIATE; SAFEGUARDS.
`(a) SEPARATE AFFILIATE REQUIRED FOR COMPETITIVE ACTIVITIES-
`(1) IN GENERAL- A Bell operating company (including any
affiliate) which is a local exchange carrier that is subject to
the requirements of section 251(c) may not provide any service
described in paragraph (2) unless it provides that service
through one or more affiliates that--
`(A) are separate from any operating company entity that
is subject to the requirements of section 251(c); and
`(B) meet the requirements of subsection (b).
`(2) SERVICES FOR WHICH A SEPARATE AFFILIATE IS REQUIRED- The
services for which a separate affiliate is required by
paragraph (1) are:
`(A) Manufacturing activities (as defined in section
273(h)).
`(B) Origination of interLATA telecommunications
services, other than--
`(i) incidental interLATA services described in
paragraphs (1), (2), (3), (5), and (6) of section 271(g);
`(ii) out-of-region services described in section
271(b)(2); or
`(iii) previously authorized activities described in
section 271(f).
`(C) InterLATA information services, other than
electronic publishing (as defined in section 274(h)) and
alarm monitoring services (as defined in section 275(e)).
`(b) STRUCTURAL AND TRANSACTIONAL REQUIREMENTS- The separate
affiliate required by this section--
`(1) shall operate independently from the Bell operating
company;
`(2) shall maintain books, records, and accounts in the
manner prescribed by the Commission which shall be separate
from the books, records, and accounts maintained by the Bell
operating company of which it is an affiliate;
`(3) shall have separate officers, directors, and employees
from the Bell operating company of which it is an affiliate;
`(4) may not obtain credit under any arrangement that would
permit a creditor, upon default, to have recourse to the assets
of the Bell operating company; and
`(5) shall conduct all transactions with the Bell operating
company of which it is an affiliate on an arm's length basis
with any such transactions reduced to writing and available for
public inspection.
`(c) NONDISCRIMINATION SAFEGUARDS- In its dealings with its
affiliate described in subsection (a), a Bell operating company--
`(1) may not discriminate between that company or affiliate
and any other entity in the provision or procurement of goods,
services, facilities, and information, or in the establishment
of standards; and
`(2) shall account for all transactions with an affiliate
described in subsection (a) in accordance with accounting
principles designated or approved by the Commission.
`(d) BIENNIAL AUDIT-
`(1) GENERAL REQUIREMENT- A company required to operate a
separate affiliate under this section shall obtain and pay for
a joint Federal/State audit every 2 years conducted by an
independent auditor to determine whether such company has
complied with this section and the regulations promulgated
under this section, and particularly whether such company has
complied with the separate accounting requirements under
subsection (b).
`(2) RESULTS SUBMITTED TO COMMISSION; STATE COMMISSIONS- The
auditor described in paragraph (1) shall submit the results of
the audit to the Commission and to the State commission of each
State in which the company audited provides service, which
shall make such results available for public inspection. Any
party may submit comments on the final audit report.
`(3) ACCESS TO DOCUMENTS- For purposes of conducting audits
and reviews under this subsection--
`(A) the independent auditor, the Commission, and the
State commission shall have access to the financial
accounts and records of each company and of its affiliates
necessary to verify transactions conducted with that
company that are relevant to the specific activities
permitted under this section and that are necessary for the
regulation of rates;
`(B) the Commission and the State commission shall have
access to the working papers and supporting materials of
any auditor who performs an audit under this section; and
`(C) the State commission shall implement appropriate
procedures to ensure the protection of any proprietary
information submitted to it under this section.
`(e) FULFILLMENT OF CERTAIN REQUESTS- A Bell operating company
and an affiliate that is subject to the requirements of section
251(c)--
`(1) shall fulfill any requests from an unaffiliated entity
for telephone exchange service and exchange access within a
period no longer than the period in which it provides such
telephone exchange service and exchange access to itself or to
its affiliates;
`(2) shall not provide any facilities, services, or
information concerning its provision of exchange access to the
affiliate described in subsection (a) unless such facilities,
services, or information are made available to other providers
of interLATA services in that market on the same terms and
conditions;
`(3) shall charge the affiliate described in subsection (a),
or impute to itself (if using the access for its provision of
its own services), an amount for access to its telephone
exchange service and exchange access that is no less than the
amount charged to any unaffiliated interexchange carriers for
such service; and
`(4) may provide any interLATA or intraLATA facilities or
services to its interLATA affiliate if such services or
facilities are made available to all carriers at the same rates
and on the same terms and conditions, and so long as the costs
are appropriately allocated.
`(f) SUNSET-
`(1) MANUFACTURING AND LONG DISTANCE- The provisions of this
section (other than subsection (e)) shall cease to apply with
respect to the manufacturing activities or the interLATA
telecommunications services of a Bell operating company 3 years
after the date such Bell operating company or any Bell
operating company affiliate is authorized to provide interLATA
telecommunications services under section 271(d), unless the
Commission extends such 3-year period by rule or order.
`(2) INTERLATA INFORMATION SERVICES- The provisions of this
section (other than subsection (e)) shall cease to apply with
respect to the interLATA information services of a Bell
operating company 4 years after the date of enactment of the
Telecommunications Act of 1996, unless the Commission extends
such 4-year period by rule or order.
`(3) PRESERVATION OF EXISTING AUTHORITY- Nothing in this
subsection shall be construed to limit the authority of the
Commission under any other section of this Act to prescribe
safeguards consistent with the public interest, convenience,
and necessity.
`(g) JOINT MARKETING-
`(1) AFFILIATE SALES OF TELEPHONE EXCHANGE SERVICES- A Bell
operating company affiliate required by this section may not
market or sell telephone exchange services provided by the Bell
operating company unless that company permits other entities
offering the same or similar service to market and sell its
telephone exchange services.
`(2) BELL OPERATING COMPANY SALES OF AFFILIATE SERVICES- A
Bell operating company may not market or sell interLATA service
provided by an affiliate required by this section within any of
its in-region States until such company is authorized to
provide interLATA services in such State under section 271(d).
`(3) RULE OF CONSTRUCTION- The joint marketing and sale of
services permitted under this subsection shall not be
considered to violate the nondiscrimination provisions of
subsection (c).
`(h) TRANSITION- With respect to any activity in which a Bell
operating company is engaged on the date of enactment of the
Telecommunications Act of 1996, such company shall have one year
from such date of enactment to comply with the requirements of this
section.
`SEC. 273. MANUFACTURING BY BELL OPERATING COMPANIES.
`(a) AUTHORIZATION- A Bell operating company may manufacture and
provide telecommunications equipment, and manufacture customer
premises equipment, if the Commission authorizes that Bell
operating company or any Bell operating company affiliate to
provide interLATA services under section 271(d), subject to the
requirements of this section and the regulations prescribed
thereunder, except that neither a Bell operating company nor any of
its affiliates may engage in such manufacturing in conjunction with
a Bell operating company not so affiliated or any of its affiliates.
`(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) CERTAIN RESEARCH ARRANGEMENTS; ROYALTY AGREEMENTS-
Subsection (a) shall not prohibit a Bell operating company from--
`(A) engaging in research activities related to
manufacturing, and
`(B) entering into royalty agreements with manufacturers
of telecommunications equipment.
`(c) INFORMATION REQUIREMENTS-
`(1) INFORMATION ON PROTOCOLS AND TECHNICAL REQUIREMENTS-
Each Bell operating company shall, in accordance with
regulations prescribed by the Commission, maintain and file
with the Commission full and complete information with respect
to the protocols and technical requirements for connection with
and use of its telephone exchange service facilities. Each
such company shall report promptly to the Commission any
material changes or planned changes to such protocols and
requirements, and the schedule for implementation of such
changes or planned changes.
`(2) DISCLOSURE OF INFORMATION- A Bell operating company
shall not disclose any information required to be filed under
paragraph (1) unless that information has been filed promptly,
as required by regulation by the Commission.
`(3) ACCESS BY COMPETITORS TO INFORMATION- The Commission may
prescribe such additional regulations under this subsection as
may be necessary to ensure that manufacturers have access to
the information with respect to the protocols and technical
requirements for connection with and use of telephone exchange
service facilities that a Bell operating company makes
available to any manufacturing affiliate or any unaffiliated
manufacturer.
`(4) PLANNING INFORMATION- Each Bell operating company shall
provide, to interconnecting carriers providing telephone
exchange service, timely information on the planned deployment
of telecommunications equipment.
`(d) MANUFACTURING LIMITATIONS FOR STANDARD-SETTING ORGANIZATIONS-
`(1) APPLICATION TO BELL COMMUNICATIONS RESEARCH OR
MANUFACTURERS- Bell Communications Research, Inc., or any
successor entity or affiliate--
`(A) shall not be considered a Bell operating company or
a successor or assign of a Bell operating company at such
time as it is no longer an affiliate of any Bell operating
company; and
`(B) notwithstanding paragraph (3), shall not engage in
manufacturing telecommunications equipment or customer
premises equipment as long as it is an affiliate of more
than 1 otherwise unaffiliated Bell operating company or
successor or assign of any such company.
Nothing in this subsection prohibits Bell Communications
Research, Inc., or any successor entity, from engaging in any
activity in which it is lawfully engaged on the date of
enactment of the Telecommunications Act of 1996. 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 subsection restricts any
manufacturer from engaging in any activity in which it is
lawfully engaged on the date of enactment of the
Telecommunications Act of 1996.
`(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 that is not an
accredited standards development organization and that
establishes industry-wide standards for telecommunications
equipment or customer premises equipment, or industry-wide
generic network requirements for such equipment, or that
certifies telecommunications equipment or customer premises
equipment manufactured by an unaffiliated entity, shall--
`(A) establish and publish any industry-wide standard
for, industry-wide generic requirement for, or any
substantial modification of an existing industry-wide
standard or industry-wide generic requirement for,
telecommunications equipment or customer premises equipment
only in compliance with the following procedure--
`(i) such entity shall issue a public notice of its
consideration of a proposed industry-wide standard or
industry-wide generic requirement;
`(ii) such entity shall issue a public invitation to
interested industry parties to fund and participate in
such efforts on a reasonable and nondiscriminatory
basis, administered in such a manner as not to
unreasonably exclude any interested industry party;
`(iii) such entity shall publish a text for comment
by such parties as have agreed to participate in the
process pursuant to clause (ii), provide such parties a
full opportunity to submit comments, and respond to
comments from such parties;
`(iv) such entity shall publish a final text of the
industry-wide standard or industry-wide generic
requirement, including the comments in their entirety,
of any funding party which requests to have its
comments so published; and
`(v) such entity shall attempt, prior to publishing a
text for comment, to agree with the funding parties as
a group on a mutually satisfactory dispute resolution
process which such parties shall utilize as their sole
recourse in the event of a dispute on technical issues
as to which there is disagreement between any funding
party and the entity conducting such activities, except
that if no dispute resolution process is agreed to by
all the parties, a funding party may utilize the
dispute resolution procedures established pursuant to
paragraph (5) of this subsection;
`(B) engage in product certification for
telecommunications equipment or customer premises equipment
manufactured by unaffiliated entities only if--
`(i) such activity is performed pursuant to published
criteria;
`(ii) such activity is performed pursuant to
auditable criteria; and
`(iii) such activity is performed pursuant to
available industry-accepted testing methods and
standards, where applicable, unless otherwise agreed
upon by the parties funding and performing such activity;
`(C) not undertake any actions to monopolize or attempt
to monopolize the market for such services; and
`(D) not preferentially treat its own telecommunications
equipment or customer premises equipment, or that of its
affiliate, over that of any other entity in establishing
and publishing industry-wide standards or industry-wide
generic requirements for, and in certification of,
telecommunications equipment and customer premises equipment.
`(5) ALTERNATE DISPUTE RESOLUTION- Within 90 days after the
date of enactment of the Telecommunications Act of 1996, 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.
`(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 telephone 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 of the
Telecommunications Act of 1996.
`(D) The term `certification' means any technical process
whereby a party determines whether a product, for use by
more than one local exchange carrier, conforms with the
specified requirements pertaining to such product.
`(E) The term `accredited standards development
organization' means an entity composed of industry members
which has been accredited by an institution vested with the
responsibility for standards accreditation by the industry.
`(e) BELL OPERATING COMPANY EQUIPMENT PROCUREMENT AND SALES-
`(1) NONDISCRIMINATION STANDARDS FOR MANUFACTURING- In the
procurement or awarding of supply contracts for
telecommunications equipment, a Bell operating company, or any
entity acting on its behalf, for the duration of the
requirement for a separate subsidiary including manufacturing
under this Act--
`(A) shall consider such equipment, produced or supplied
by unrelated persons; and
`(B) may not discriminate in favor of equipment produced
or supplied by an affiliate or related person.
`(2) PROCUREMENT STANDARDS- Each Bell operating company or
any entity acting on its behalf shall make procurement
decisions and award all supply contracts for equipment,
services, and software on the basis of an objective assessment
of price, quality, delivery, and other commercial factors.
`(3) NETWORK PLANNING AND DESIGN- A Bell operating company
shall, to the extent consistent with the antitrust laws, engage
in joint network planning and design with local exchange
carriers operating in the same area of interest. No
participant in such planning shall be allowed to delay the
introduction of new technology or the deployment of facilities
to provide telecommunications services, and agreement with such
other carriers shall not be required as a prerequisite for such
introduction or deployment.
`(4) SALES RESTRICTIONS- Neither a Bell operating company
engaged in manufacturing nor a manufacturing affiliate of such
a company shall restrict sales to any local exchange carrier of
telecommunications equipment, including software integral to
the operation of such equipment and related upgrades.
`(5) PROTECTION OF PROPRIETARY INFORMATION- A Bell operating
company and any entity it owns or otherwise controls shall
protect the proprietary information submitted for procurement
decisions from release not specifically authorized by the owner
of such information.
`(f) ADMINISTRATION AND ENFORCEMENT AUTHORITY- For the purposes
of administering and enforcing the provisions of this section and
the regulations prescribed thereunder, the Commission shall have
the same authority, power, and functions with respect to any Bell
operating company or any affiliate thereof as the Commission has in
administering and enforcing the provisions of this title with
respect to any common carrier subject to this Act.
`(g) ADDITIONAL RULES AND REGULATIONS- The Commission may
prescribe such additional rules and regulations as the Commission
determines are necessary to carry out the provisions of this
section, and otherwise to prevent discrimination and
cross-subsidization in a Bell operating company's dealings with its
affiliate and with third parties.
`(h) DEFINITION- As used in this section, the term
`manufacturing' has the same meaning as such term has under the
AT&T Consent Decree.
`SEC. 274. ELECTRONIC PUBLISHING BY BELL OPERATING COMPANIES.
`(a) LIMITATIONS- No Bell operating company or any affiliate may
engage in the provision of electronic publishing that is
disseminated by means of such Bell operating company's or any of
its affiliates' basic telephone service, except that nothing in
this section shall prohibit a separated affiliate or electronic
publishing joint venture operated in accordance with this section
from engaging in the provision of electronic publishing.
`(b) SEPARATED AFFILIATE OR ELECTRONIC PUBLISHING JOINT VENTURE
REQUIREMENTS- A separated affiliate or electronic publishing joint
venture shall be operated independently from the Bell operating
company. Such separated affiliate or joint venture and the Bell
operating company with which it is affiliated shall--
`(1) maintain separate books, records, and accounts and
prepare separate financial statements;
`(2) not incur debt in a manner that would permit a creditor
of the separated affiliate or joint venture upon default to
have recourse to the assets of the Bell operating company;
`(3) carry out transactions (A) in a manner consistent with
such independence, (B) pursuant to written contracts or tariffs
that are filed with the Commission and made publicly available,
and (C) in a manner that is auditable in accordance with
generally accepted auditing standards;
`(4) value any assets that are transferred directly or
indirectly from the Bell operating company to a separated
affiliate or joint venture, and record any transactions by
which such assets are transferred, in accordance with such
regulations as may be prescribed by the Commission or a State
commission to prevent improper cross subsidies;
`(5) between a separated affiliate and a Bell operating
company--
`(A) have no officers, directors, and employees in common
after the effective date of this section; and
`(B) own no property in common;
`(6) not use for the marketing of any product or service of
the separated affiliate or joint venture, the name, trademarks,
or service marks of an existing Bell operating company except
for names, trademarks, or service marks that are owned by the
entity that owns or controls the Bell operating company;
`(7) not permit the Bell operating company--
`(A) to perform hiring or training of personnel on behalf
of a separated affiliate;
`(B) to perform the purchasing, installation, or
maintenance of equipment on behalf of a separated
affiliate, except for telephone service that it provides
under tariff or contract subject to the provisions of this
section; or
`(C) to perform research and development on behalf of a
separated affiliate;
`(8) each have performed annually a compliance review--
`(A) that is conducted by an independent entity for the
purpose of determining compliance during the preceding
calendar year with any provision of this section; and
`(B) the results of which are maintained by the separated
affiliate or joint venture and the Bell operating company
for a period of 5 years subject to review by any lawful
authority; and
`(9) within 90 days of receiving a review described in
paragraph (8), file a report of any exceptions and corrective
action with the Commission and allow any person to inspect and
copy such report subject to reasonable safeguards to protect
any proprietary information contained in such report from being
used for purposes other than to enforce or pursue remedies
under this section.
`(c) JOINT MARKETING-
`(1) IN GENERAL- Except as provided in paragraph (2)--
`(A) a Bell operating company shall not carry out any
promotion, marketing, sales, or advertising for or in
conjunction with a separated affiliate; and
`(B) a Bell operating company shall not carry out any
promotion, marketing, sales, or advertising for or in
conjunction with an affiliate that is related to the
provision of electronic publishing.
`(2) PERMISSIBLE JOINT ACTIVITIES-
`(A) JOINT TELEMARKETING- A Bell operating company may
provide inbound telemarketing or referral services related
to the provision of electronic publishing for a separated
affiliate, electronic publishing joint venture, affiliate,
or unaffiliated electronic publisher: [Italic->] P
rovided, [<-Italic] That if such services are provided to
a separated affiliate, electronic publishing joint venture,
or affiliate, such services shall be made available to all
electronic publishers on request, on nondiscriminatory terms.
`(B) TEAMING ARRANGEMENTS- A Bell operating company may
engage in nondiscriminatory teaming or business
arrangements to engage in electronic publishing with any
separated affiliate or with any other electronic publisher
if (i) the Bell operating company only provides facilities,
services, and basic telephone service information as
authorized by this section, and (ii) the Bell operating
company does not own such teaming or business arrangement.
`(C) ELECTRONIC PUBLISHING JOINT VENTURES- A Bell
operating company or affiliate may participate on a
nonexclusive basis in electronic publishing joint ventures
with entities that are not a Bell operating company,
affiliate, or separated affiliate to provide electronic
publishing services, if the Bell operating company or
affiliate has not more than a 50 percent direct or indirect
equity interest (or the equivalent thereof) or the right to
more than 50 percent of the gross revenues under a revenue
sharing or royalty agreement in any electronic publishing
joint venture. Officers and employees of a Bell operating
company or affiliate participating in an electronic
publishing joint venture may not have more than 50 percent
of the voting control over the electronic publishing joint
venture. In the case of joint ventures with small, local
electronic publishers, the Commission for good cause shown
may authorize the Bell operating company or affiliate to
have a larger equity interest, revenue share, or voting
control but not to exceed 80 percent. A Bell operating
company participating in an electronic publishing joint
venture may provide promotion, marketing, sales, or
advertising personnel and services to such joint venture.
`(d) BELL OPERATING COMPANY REQUIREMENT- A Bell operating company
under common ownership or control with a separated affiliate or
electronic publishing joint venture shall provide network access
and interconnections for basic telephone service to electronic
publishers at just and reasonable rates that are tariffed (so long
as rates for such services are subject to regulation) and that are
not higher on a per-unit basis than those charged for such services
to any other electronic publisher or any separated affiliate
engaged in electronic publishing.
`(e) PRIVATE RIGHT OF ACTION-
`(1) DAMAGES- Any person claiming that any act or practice of
any Bell operating company, affiliate, or separated affiliate
constitutes a violation of this section may file a complaint
with the Commission or bring suit as provided in section 207 of
this Act, and such Bell operating company, affiliate, or
separated affiliate shall be liable as provided in section 206
of this Act; except that damages may not be awarded for a
violation that is discovered by a compliance review as required
by subsection (b)(7) of this section and corrected within 90
days.
`(2) CEASE AND DESIST ORDERS- In addition to the provisions
of paragraph (1), any person claiming that any act or practice
of any Bell operating company, affiliate, or separated
affiliate constitutes a violation of this section may make
application to the Commission for an order to cease and desist
such violation or may make application in any district court of
the United States of competent jurisdiction for an order
enjoining such acts or practices or for an order compelling
compliance with such requirement.
`(f) SEPARATED AFFILIATE REPORTING REQUIREMENT- Any separated
affiliate under this section shall file with the Commission annual
reports in a form substantially equivalent to the Form 10-K
required by regulations of the Securities and Exchange Commission.
`(g) EFFECTIVE DATES-
`(1) TRANSITION- Any electronic publishing service being
offered to the public by a Bell operating company or affiliate
on the date of enactment of the Telecommunications Act of 1996
shall have one year from such date of enactment to comply with
the requirements of this section.
`(2) SUNSET- The provisions of this section shall not apply
to conduct occurring after 4 years after the date of enactment
of the Telecommunications Act of 1996.
`(h) DEFINITION OF ELECTRONIC PUBLISHING-
`(1) IN GENERAL- The term `electronic publishing' means the
dissemination, provision, publication, or sale to an
unaffiliated entity or person, of any one or more of the
following: news (including sports); entertainment (other than
interactive games); business, financial, legal, consumer, or
credit materials; editorials, columns, or features;
advertising; photos or images; archival or research material;
legal notices or public records; scientific, educational,
instructional, technical, professional, trade, or other
literary materials; or other like or similar information.
`(2) EXCEPTIONS- The term `electronic publishing' shall not
include the following services:
`(A) Information access, as that term is defined by the
AT&T Consent Decree.
`(B) The transmission of information as a common carrier.
`(C) The transmission of information as part of a gateway
to an information service that does not involve the
generation or alteration of the content of information,
including data transmission, address translation, protocol
conversion, billing management, introductory information
content, and navigational systems that enable users to
access electronic publishing services, which do not affect
the presentation of such electronic publishing services to
users.
`(D) Voice storage and retrieval services, including
voice messaging and electronic mail services.
`(E) Data processing or transaction processing services
that do not involve the generation or alteration of the
content of information.
`(F) Electronic billing or advertising of a Bell
operating company's regulated telecommunications services.
`(G) Language translation or data format conversion.
`(H) The provision of information necessary for the
management, control, or operation of a telephone company
telecommunications system.
`(I) The provision of directory assistance that provides
names, addresses, and telephone numbers and does not
include advertising.
`(J) Caller identification services.
`(K) Repair and provisioning databases and credit card
and billing validation for telephone company operations.
`(L) 911-E and other emergency assistance databases.
`(M) Any other network service of a type that is like or
similar to these network services and that does not involve
the generation or alteration of the content of information.
`(N) Any upgrades to these network services that do not
involve the generation or alteration of the content of
information.
`(O) Video programming or full motion video entertainment
on demand.
`(i) ADDITIONAL DEFINITIONS- As used in this section--
`(1) The term `affiliate' means any entity that, directly or
indirectly, owns or controls, is owned or controlled by, or is
under common ownership or control with, a Bell operating
company. Such term shall not include a separated affiliate.
`(2) The term `basic telephone service' means any wireline
telephone exchange service, or wireline telephone exchange
service facility, provided by a Bell operating company in a
telephone exchange area, except that such term does not include--
`(A) a competitive wireline telephone exchange service
provided in a telephone exchange area where another entity
provides a wireline telephone exchange service that was
provided on January 1, 1984, or
`(B) a commercial mobile service.
`(3) The term `basic telephone service information' means
network and customer information of a Bell operating company
and other information acquired by a Bell operating company as a
result of its engaging in the provision of basic telephone
service.
`(4) The term `control' has the meaning that it has in 17
C.F.R. 240.12b-2, the regulations promulgated by the Securities
and Exchange Commission pursuant to the Securities Exchange Act
of 1934 (15 U.S.C. 78a et seq.) or any successor provision to
such section.
`(5) The term `electronic publishing joint venture' means a
joint venture owned by a Bell operating company or affiliate
that engages in the provision of electronic publishing which is
disseminated by means of such Bell operating company's or any
of its affiliates' basic telephone service.
`(6) The term `entity' means any organization, and includes
corporations, partnerships, sole proprietorships, associations,
and joint ventures.
`(7) The term `inbound telemarketing' means the marketing of
property, goods, or services by telephone to a customer or
potential customer who initiated the call.
`(8) The term `own' with respect to an entity means to have a
direct or indirect equity interest (or the equivalent thereof)
of more than 10 percent of an entity, or the right to more than
10 percent of the gross revenues of an entity under a revenue
sharing or royalty agreement.
`(9) The term `separated affiliate' means a corporation under
common ownership or control with a Bell operating company that
does not own or control a Bell operating company and is not
owned or controlled by a Bell operating company and that
engages in the provision of electronic publishing which is
disseminated by means of such Bell operating company's or any
of its affiliates' basic telephone service.
`(10) The term `Bell operating company' has the meaning
provided in section 3, except that such term includes any
entity or corporation that is owned or controlled by such a
company (as so defined) but does not include an electronic
publishing joint venture owned by such an entity or corporation.
`SEC. 275. ALARM MONITORING SERVICES.
`(a) DELAYED ENTRY INTO ALARM MONITORING-
`(1) PROHIBITION- No Bell operating company or affiliate
thereof shall engage in the provision of alarm monitoring
services before the date which is 5 years after the date of
enactment of the Telecommunications Act of 1996.
`(2) EXISTING ACTIVITIES- Paragraph (1) does not prohibit or
limit the provision, directly or through an affiliate, of alarm
monitoring services by a Bell operating company that was
engaged in providing alarm monitoring services as of November
30, 1995, directly or through an affiliate. Such Bell operating
company or affiliate may not acquire any equity interest in, or
obtain financial control of, any unaffiliated alarm monitoring
service entity after November 30, 1995, and until 5 years after
the date of enactment of the Telecommunications Act of 1996,
except that this sentence shall not prohibit an exchange of
customers for the customers of an unaffiliated alarm monitoring
service entity.
`(b) NONDISCRIMINATION- An incumbent local exchange carrier (as
defined in section 251(h)) engaged in the provision of alarm
monitoring services shall--
`(1) provide nonaffiliated entities, upon reasonable request,
with the network services it provides to its own alarm
monitoring operations, on nondiscriminatory terms and
conditions; and
`(2) not subsidize its alarm monitoring services either
directly or indirectly from telephone exchange service
operations.
`(c) EXPEDITED CONSIDERATION OF COMPLAINTS- The Commission shall
establish procedures for the receipt and review of complaints
concerning violations of subsection (b) or the regulations
thereunder that result in material financial harm to a provider of
alarm monitoring service. Such procedures shall ensure that the
Commission will make a final determination with respect to any such
complaint within 120 days after receipt of the complaint. If the
complaint contains an appropriate showing that the alleged
violation occurred, as determined by the Commission in accordance
with such regulations, the Commission shall, within 60 days after
receipt of the complaint, order the incumbent local exchange
carrier (as defined in section 251(h)) and its affiliates to cease
engaging in such violation pending such final determination.
`(d) USE OF DATA- A local exchange carrier may not record or use
in any fashion the occurrence or contents of calls received by
providers of alarm monitoring services for the purposes of
marketing such services on behalf of such local exchange carrier,
or any other entity. Any regulations necessary to enforce this
subsection shall be issued initially within 6 months after the date
of enactment of the Telecommunications Act of 1996.
`(e) DEFINITION OF ALARM MONITORING SERVICE- The term `alarm
monitoring service' means a service that uses a device located at a
residence, place of business, or other fixed premises--
`(1) to receive signals from other devices located at or
about such premises regarding a possible threat at such
premises to life, safety, or property, from burglary, fire,
vandalism, bodily injury, or other emergency, and
`(2) to transmit a signal regarding such threat by means of
transmission facilities of a local exchange carrier or one of
its affiliates to a remote monitoring center to alert a person
at such center of the need to inform the customer or another
person or police, fire, rescue, security, or public safety
personnel of such threat,
but does not include a service that uses a medical monitoring
device attached to an individual for the automatic surveillance of
an ongoing medical condition.
`SEC. 276. PROVISION OF PAYPHONE SERVICE.
`(a) NONDISCRIMINATION SAFEGUARDS- After the effective date of
the rules prescribed pursuant to subsection (b), any Bell operating
company that provides payphone service--
`(1) shall not subsidize its payphone service directly or
indirectly from its telephone exchange service operations or
its exchange access operations; and
`(2) shall not prefer or discriminate in favor of its
payphone service.
`(b) REGULATIONS-
`(1) CONTENTS OF REGULATIONS- In order to promote competition
among payphone service providers and promote the widespread
deployment of payphone services to the benefit of the general
public, within 9 months after the date of enactment of the
Telecommunications Act of 1996, the Commission shall take all
actions necessary (including any reconsideration) to prescribe
regulations that--
`(A) establish a per call compensation plan to ensure
that all payphone service providers are fairly compensated
for each and every completed intrastate and interstate call
using their payphone, except that emergency calls and
telecommunications relay service calls for hearing disabled
individuals shall not be subject to such compensation;
`(B) discontinue the intrastate and interstate carrier
access charge payphone service elements and payments in
effect on such date of enactment, and all intrastate and
interstate payphone subsidies from basic exchange and
exchange access revenues, in favor of a compensation plan
as specified in subparagraph (A);
`(C) prescribe a set of nonstructural safeguards for Bell
operating company payphone service to implement the
provisions of paragraphs (1) and (2) of subsection (a),
which safeguards shall, at a minimum, include the
nonstructural safeguards equal to those adopted in the
Computer Inquiry-III (CC Docket No. 90-623) proceeding;
`(D) provide for Bell operating company payphone service
providers to have the same right that independent payphone
providers have to negotiate with the location provider on
the location provider's selecting and contracting with,
and, subject to the terms of any agreement with the
location provider, to select and contract with, the
carriers that carry interLATA calls from their payphones,
unless the Commission determines in the rulemaking pursuant
to this section that it is not in the public interest; and
`(E) provide for all payphone service providers to have
the right to negotiate with the location provider on the
location provider's selecting and contracting with, and,
subject to the terms of any agreement with the location
provider, to select and contract with, the carriers that
carry intraLATA calls from their payphones.
`(2) PUBLIC INTEREST TELEPHONES- In the rulemaking conducted
pursuant to paragraph (1), the Commission shall determine
whether public interest payphones, which are provided in the
interest of public health, safety, and welfare, in locations
where there would otherwise not be a payphone, should be
maintained, and if so, ensure that such public interest
payphones are supported fairly and equitably.
`(3) EXISTING CONTRACTS- Nothing in this section shall affect
any existing contracts between location providers and payphone
service providers or interLATA or intraLATA carriers that are
in force and effect as of the date of enactment of the
Telecommunications Act of 1996.
`(c) STATE PREEMPTION- To the extent that any State requirements
are inconsistent with the Commission's regulations, the
Commission's regulations on such matters shall preempt such State
requirements.
`(d) DEFINITION- As used in this section, the term `payphone
service' means the provision of public or semi-public pay
telephones, the provision of inmate telephone service in
correctional institutions, and any ancillary services.'.
(b) REVIEW OF ENTRY DECISIONS- Section 402(b) (47 U.S.C. 402(b))
is amended--
(1) in paragraph (6), by striking `(3), and (4)' and
inserting `(3), (4), and (9)'; and
(2) by adding at the end the following new paragraph:
`(9) By any applicant for authority to provide interLATA services
under section 271 of this Act whose application is denied by the
Commission.'.
TITLE II--BROADCAST SERVICES
SEC. 201. BROADCAST SPECTRUM FLEXIBILITY.
Title III is amended by inserting after section 335 (47 U.S.C.
335) the following new section:
`SEC. 336. BROADCAST SPECTRUM FLEXIBILITY.
`(a) COMMISSION ACTION- If the Commission determines to issue
additional licenses for advanced television services, the
Commission--
`(1) should limit the initial eligibility for such licenses
to persons that, as of the date of such issuance, are licensed
to operate a television broadcast station or hold a permit to
construct such a station (or both); and
`(2) shall adopt regulations that allow the holders of such
licenses to offer such ancillary or supplementary services on
designated frequencies as may be consistent with the public
interest, convenience, and necessity.
`(b) CONTENTS OF REGULATIONS- In prescribing the regulations
required by subsection (a), the Commission shall--
`(1) only permit such licensee or permittee to offer
ancillary or supplementary services if the use of a designated
frequency for such services is consistent with the technology
or method designated by the Commission for the provision of
advanced television services;
`(2) limit the broadcasting of ancillary or supplementary
services on designated frequencies so as to avoid derogation of
any advanced television services, including high definition
television broadcasts, that the Commission may require using
such frequencies;
`(3) apply to any other ancillary or supplementary service
such of the Commission's regulations as are applicable to the
offering of analogous services by any other person, except that
no ancillary or supplementary service shall have any rights to
carriage under section 614 or 615 or be deemed a multichannel
video programming distributor for purposes of section 628;
`(4) adopt such technical and other requirements as may be
necessary or appropriate to assure the quality of the signal
used to provide advanced television services, and may adopt
regulations that stipulate the minimum number of hours per day
that such signal must be transmitted; and
`(5) prescribe such other regulations as may be necessary for
the protection of the public interest, convenience, and
necessity.
`(c) RECOVERY OF LICENSE- If the Commission grants a license for
advanced television services to a person that, as of the date of
such issuance, is licensed to operate a television broadcast
station or holds a permit to construct such a station (or both),
the Commission shall, as a condition of such license, require that
either the additional license or the original license held by the
licensee be surrendered to the Commission for reallocation or
reassignment (or both) pursuant to Commission regulation.
`(d) PUBLIC INTEREST REQUIREMENT- Nothing in this section shall
be construed as relieving a television broadcasting station from
its obligation to serve the public interest, convenience, and
necessity. In the Commission's review of any application for
renewal of a broadcast license for a television station that
provides ancillary or supplementary services, the television
licensee shall establish that all of its program services on the
existing or advanced television spectrum are in the public
interest. Any violation of the Commission rules applicable to
ancillary or supplementary services shall reflect upon the
licensee's qualifications for renewal of its license.
`(e) FEES-
`(1) SERVICES TO WHICH FEES APPLY- If the regulations
prescribed pursuant to subsection (a) permit a licensee to
offer ancillary or supplementary services on a designated
frequency--
`(A) for which the payment of a subscription fee is
required in order to receive such services, or
`(B) for which the licensee directly or indirectly
receives compensation from a third party in return for
transmitting material furnished by such third party (other
than commercial advertisements used to support broadcasting
for which a subscription fee is not required),
the Commission shall establish a program to assess and collect
from the licensee for such designated frequency an annual fee
or other schedule or method of payment that promotes the
objectives described in subparagraphs (A) and (B) of paragraph
(2).
`(2) COLLECTION OF FEES- The program required by paragraph
(1) shall--
`(A) be designed (i) to recover for the public a portion
of the value of the public spectrum resource made available
for such commercial use, and (ii) to avoid unjust
enrichment through the method employed to permit such uses
of that resource;
`(B) recover for the public an amount that, to the extent
feasible, equals but does not exceed (over the term of the
license) the amount that would have been recovered had such
services been licensed pursuant to the provisions of
section 309(j) of this Act and the Commission's regulations
thereunder; and
`(C) be adjusted by the Commission from time to time in
order to continue to comply with the requirements of this
paragraph.
`(3) TREATMENT OF REVENUES-
`(A) GENERAL RULE- Except as provided in subparagraph
(B), all proceeds obtained pursuant to the regulations
required by this subsection shall be deposited in the
Treasury in accordance with chapter 33 of title 31, United
States Code.
`(B) RETENTION OF REVENUES- Notwithstanding subparagraph
(A), the salaries and expenses account of the Commission
shall retain as an offsetting collection such sums as may
be necessary from such proceeds for the costs of developing
and implementing the program required by this section and
regulating and supervising advanced television services.
Such offsetting collections shall be available for
obligation subject to the terms and conditions of the
receiving appropriations account, and shall be deposited in
such accounts on a quarterly basis.
`(4) REPORT- Within 5 years after the date of enactment of
the Telecommunications Act of 1996, the Commission shall report
to the Congress on the implementation of the program required
by this subsection, and shall annually thereafter advise the
Congress on the amounts collected pursuant to such program.
`(f) EVALUATION- Within 10 years after the date the Commission
first issues additional licenses for advanced television services,
the Commission shall conduct an evaluation of the advanced
television services program. Such evaluation shall include--
`(1) an assessment of the willingness of consumers to
purchase the television receivers necessary to receive
broadcasts of advanced television services;
`(2) an assessment of alternative uses, including public
safety use, of the frequencies used for such broadcasts; and
`(3) the extent to which the Commission has been or will be
able to reduce the amount of spectrum assigned to licensees.
`(g) DEFINITIONS- As used in this section:
`(1) ADVANCED TELEVISION SERVICES- The term `advanced
television services' means television services provided using
digital or other advanced technology as further defined in the
opinion, report, and order of the Commission entitled `Advanced
Television Systems and Their Impact Upon the Existing
Television Broadcast Service', MM Docket 87-268, adopted
September 17, 1992, and successor proceedings.
`(2) DESIGNATED FREQUENCIES- The term `designated frequency'
means each of the frequencies designated by the Commission for
licenses for advanced television services.
`(3) HIGH DEFINITION TELEVISION- The term `high definition
television' refers to systems that offer approximately twice
the vertical and horizontal resolution of receivers generally
available on the date of enactment of the Telecommunications
Act of 1996, as further defined in the proceedings described in
paragraph (1) of this subsection.'.
SEC. 202. BROADCAST OWNERSHIP.
(a) NATIONAL RADIO STATION OWNERSHIP RULE CHANGES REQUIRED- The
Commission shall modify section 73.3555 of its regulations (47
C.F.R. 73.3555) by eliminating any provisions limiting the number
of AM or FM broadcast stations which may be owned or controlled by
one entity nationally.
(b) LOCAL RADIO DIVERSITY-
(1) APPLICABLE CAPS- The Commission shall revise section
73.3555(a) of its regulations (47 C.F.R. 73.3555) to provide
that--
(A) in a radio market with 45 or more commercial radio
stations, a party may own, operate, or control up to 8
commercial radio stations, not more than 5 of which are in
the same service (AM or FM);
(B) in a radio market with between 30 and 44 (inclusive)
commercial radio stations, a party may own, operate, or
control up to 7 commercial radio stations, not more than 4
of which are in the same service (AM or FM);
(C) in a radio market with between 15 and 29 (inclusive)
commercial radio stations, a party may own, operate, or
control up to 6 commercial radio stations, not more than 4
of which are in the same service (AM or FM); and
(D) in a radio market with 14 or fewer commercial radio
stations, a party may own, operate, or control up to 5
commercial radio stations, not more than 3 of which are in
the same service (AM or FM), except that a party may not
own, operate, or control more than 50 percent of the
stations in such market.
(2) EXCEPTION- Notwithstanding any limitation authorized by
this subsection, the Commission may permit a person or entity
to own, operate, or control, or have a cognizable interest in,
radio broadcast stations if the Commission determines that such
ownership, operation, control, or interest will result in an
increase in the number of radio broadcast stations in operation.
(c) TELEVISION OWNERSHIP LIMITATIONS-
(1) NATIONAL OWNERSHIP LIMITATIONS- The Commission shall
modify its rules for multiple ownership set forth in section
73.3555 of its regulations (47 C.F.R. 73.3555)--
(A) by eliminating the restrictions on the number of
television stations that a person or entity may directly or
indirectly own, operate, or control, or have a cognizable
interest in, nationwide; and
(B) by increasing the national audience reach limitation
for television stations to 35 percent.
(2) LOCAL OWNERSHIP LIMITATIONS- The Commission shall conduct
a rulemaking proceeding to determine whether to retain, modify,
or eliminate its limitations on the number of television
stations that a person or entity may own, operate, or control,
or have a cognizable interest in, within the same television
market.
(d) RELAXATION OF ONE-TO-A-MARKET- With respect to its
enforcement of its one-to-a-market ownership rules under section
73.3555 of its regulations, the Commission shall extend its waiver
policy to any of the top 50 markets, consistent with the public
interest, convenience, and necessity.
(e) DUAL NETWORK CHANGES- The Commission shall revise section
73.658(g) of its regulations (47 C.F.R. 658(g)) to permit a
television broadcast station to affiliate with a person or entity
that maintains 2 or more networks of television broadcast stations
unless such dual or multiple networks are composed of--
(1) two or more persons or entities that, on the date of
enactment of the Telecommunications Act of 1996, are `networks'
as defined in section 73.3613(a)(1) of the Commission's
regulations (47 C.F.R. 73.3613(a)(1)); or
(2) any network described in paragraph (1) and an
English-language program distribution service that, on such
date, provides 4 or more hours of programming per week on a
national basis pursuant to network affiliation arrangements
with local television broadcast stations in markets reaching
more than 75 percent of television homes (as measured by a
national ratings service).
(f) CABLE CROSS OWNERSHIP-
(1) ELIMINATION OF RESTRICTIONS- The Commission shall revise
section 76.501 of its regulations (47 C.F.R. 76.501) to permit
a person or entity to own or control a network of broadcast
stations and a cable system.
(2) SAFEGUARDS AGAINST DISCRIMINATION- The Commission shall
revise such regulations if necessary to ensure carriage,
channel positioning, and nondiscriminatory treatment of
nonaffiliated broadcast stations by a cable system described in
paragraph (1).
(g) LOCAL MARKETING AGREEMENTS- Nothing in this section shall be
construed to prohibit the origination, continuation, or renewal of
any television local marketing agreement that is in compliance with
the regulations of the Commission.
(h) FURTHER COMMISSION REVIEW- The Commission shall review its
rules adopted pursuant to this section and all of its ownership
rules biennially as part of its regulatory reform review under
section 11 of the Communications Act of 1934 and shall determine
whether any of such rules are necessary in the public interest as
the result of competition. The Commission shall repeal or modify
any regulation it determines to be no longer in the public interest.
(i) ELIMINATION OF STATUTORY RESTRICTION- Section 613(a) (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 subsection to
any cable operator in any franchise area in which a cable
operator is subject to effective competition as determined
under section 623(l).'.
SEC. 203. TERM OF LICENSES.
Section 307(c) (47 U.S.C. 307(c)) is amended to read as follows:
`(c) TERMS OF LICENSES-
`(1) INITIAL AND RENEWAL LICENSES- Each license granted for
the operation of a broadcasting station shall be for a term of
not to exceed 8 years. Upon application therefor, a renewal of
such license may be granted from time to time for a term of not
to exceed 8 years from the date of expiration of the preceding
license, if the Commission finds that public interest,
convenience, and necessity would be served thereby. Consistent
with the foregoing provisions of this subsection, the
Commission may by rule prescribe the period or periods for
which licenses shall be granted and renewed for particular
classes of stations, but the Commission may not adopt or follow
any rule which would preclude it, in any case involving a
station of a particular class, from granting or renewing a
license for a shorter period than that prescribed for stations
of such class if, in its judgment, the public interest,
convenience, or necessity would be served by such action.
`(2) MATERIALS IN APPLICATION- In order to expedite action on
applications for renewal of broadcasting station licenses and
in order to avoid needless expense to applicants for such
renewals, the Commission shall not require any such applicant
to file any information which previously has been furnished to
the Commission or which is not directly material to the
considerations that affect the granting or denial of such
application, but the Commission may require any new or
additional facts it deems necessary to make its findings.
`(3) CONTINUATION PENDING DECISION- Pending any hearing and
final decision on such an application and the disposition of
any petition for rehearing pursuant to section 405, the
Commission shall continue such license in effect.'.
SEC. 204. BROADCAST LICENSE RENEWAL PROCEDURES.
(a) RENEWAL PROCEDURES-
(1) AMENDMENT- Section 309 (47 U.S.C. 309) is amended by
adding at the end thereof the following new subsection:
`(k) BROADCAST STATION RENEWAL PROCEDURES-
`(1) STANDARDS FOR RENEWAL- If the licensee of a broadcast
station submits an application to the Commission for renewal of
such license, the Commission shall grant the application if it
finds, with respect to that station, during the preceding term
of its license--
`(A) the station has served the public interest,
convenience, and necessity;
`(B) there have been no serious violations by the
licensee of this Act or the rules and regulations of the
Commission; and
`(C) there have been no other violations by the licensee
of this Act or the rules and regulations of the Commission
which, taken together, would constitute a pattern of abuse.
`(2) CONSEQUENCE OF FAILURE TO MEET STANDARD- If any licensee
of a broadcast station fails to meet the requirements of this
subsection, the Commission may deny the application for renewal
in accordance with paragraph (3), or grant such application on
terms and conditions as are appropriate, including renewal for
a term less than the maximum otherwise permitted.
`(3) STANDARDS FOR DENIAL- If the Commission determines,
after notice and opportunity for a hearing as provided in
subsection (e), that a licensee has failed to meet the
requirements specified in paragraph (1) and that no mitigating
factors justify the imposition of lesser sanctions, the
Commission shall--
`(A) issue an order denying the renewal application filed
by such licensee under section 308; and
`(B) only thereafter accept and consider such
applications for a construction permit as may be filed
under section 308 specifying the channel or broadcasting
facilities of the former licensee.
`(4) COMPETITOR CONSIDERATION PROHIBITED- In making the
determinations specified in paragraph (1) or (2), the
Commission shall not consider whether the public interest,
convenience, and necessity might be served by the grant of a
license to a person other than the renewal applicant.'.
(2) CONFORMING AMENDMENT- Section 309(d) (47 U.S.C. 309(d))
is amended by inserting after `with subsection (a)' each place
it appears the following: `(or subsection (k) in the case of
renewal of any broadcast station license)'.
(b) SUMMARY OF COMPLAINTS ON VIOLENT PROGRAMMING- Section 308 (47
U.S.C. 308) is amended by adding at the end the following new
subsection:
`(d) SUMMARY OF COMPLAINTS- Each applicant for the renewal of a
commercial or noncommercial television license shall attach as an
exhibit to the application a summary of written comments and
suggestions received from the public and maintained by the licensee
(in accordance with Commission regulations) that comment on the
applicant's programming, if any, and that are characterized by the
commentor as constituting violent programming.'.
(c) EFFECTIVE DATE- The amendments made by this section apply to
applications filed after May 1, 1995.
SEC. 205. DIRECT BROADCAST SATELLITE SERVICE.
(a) DBS SIGNAL SECURITY- Section 705(e)(4) (47 U.S.C. 605(e)(4))
is amended by inserting `or direct-to-home satellite services,'
after `programming,'.
(b) FCC JURISDICTION OVER DIRECT-TO-HOME SATELLITE SERVICES-
Section 303 (47 U.S.C. 303) is amended by adding at the end thereof
the following new subsection:
`(v) Have exclusive jurisdiction to regulate the provision of
direct-to-home satellite services. As used in this subsection, the
term `direct-to-home satellite services' means the distribution or
broadcasting of programming or services by satellite directly to
the subscriber's premises without the use of ground receiving or
distribution equipment, except at the subscriber's premises or in
the uplink process to the satellite.'.
SEC. 206. AUTOMATED SHIP DISTRESS AND SAFETY SYSTEMS.
Part II of title III is amended by inserting after section 364
(47 U.S.C. 362) the following new section:
`SEC. 365. AUTOMATED SHIP DISTRESS AND SAFETY SYSTEMS.
`Notwithstanding any provision of this Act or any other provision
of law or regulation, a ship documented under the laws of the
United States operating in accordance with the Global Maritime
Distress and Safety System provisions of the Safety of Life at Sea
Convention shall not be required to be equipped with a radio
telegraphy station operated by one or more radio officers or
operators. This section shall take effect for each vessel upon a
determination by the United States Coast Guard that such vessel has
the equipment required to implement the Global Maritime Distress
and Safety System installed and operating in good working
condition.'.
SEC. 207. RESTRICTIONS ON OVER-THE-AIR RECEPTION DEVICES.
Within 180 days after the date of enactment of this Act, the
Commission shall, pursuant to section 303 of the Communications Act
of 1934, promulgate regulations to prohibit restrictions that
impair a viewer's ability to receive video programming services
through devices designed for over-the-air reception of television
broadcast signals, multichannel multipoint distribution service, or
direct broadcast satellite services.
TITLE III--CABLE SERVICES
SEC. 301. CABLE ACT REFORM.
(a) DEFINITIONS-
(1) DEFINITION OF CABLE SERVICE- Section 602(6)(B) (47 U.S.C.
522(6)(B)) is amended by inserting `or use' after `the
selection'.
(2) CHANGE IN DEFINITION OF CABLE SYSTEM- Section 602(7) (47
U.S.C. 522(7)) is amended by striking `(B) a facility that
serves only subscribers in 1 or more multiple unit dwellings
under common ownership, control, or management, unless such
facility or facilities uses any public right-of-way;' and
inserting `(B) a facility that serves subscribers without using
any public right-of-way;'.
(b) RATE DEREGULATION-
(1) UPPER TIER REGULATION- Section 623(c) (47 U.S.C. 543(c))
is amended--
(A) in paragraph (1)(B), by striking `subscriber,
franchising authority, or other relevant State or local
government entity' and inserting `franchising authority (in
accordance with paragraph (3))';
(B) in paragraph (1)(C), by striking `such complaint' and
inserting `the first complaint filed with the franchising
authority under paragraph (3)'; and
(C) by striking paragraph (3) and inserting the following:
`(3) REVIEW OF RATE CHANGES- The Commission shall review any
complaint submitted by a franchising authority after the date
of enactment of the Telecommunications Act of 1996 concerning
an increase in rates for cable programming services and issue a
final order within 90 days after it receives such a complaint,
unless the parties agree to extend the period for such review.
A franchising authority may not file a complaint under this
paragraph unless, within 90 days after such increase becomes
effective it receives subscriber complaints.
`(4) SUNSET OF UPPER TIER RATE REGULATION- This subsection
shall not apply to cable programming services provided after
March 31, 1999.'.
(2) SUNSET OF UNIFORM RATE STRUCTURE IN MARKETS WITH
EFFECTIVE COMPETITION- Section 623(d) (47 U.S.C. 543(d)) is
amended by adding at the end thereof the following: `This
subsection does not apply to (1) a cable operator with respect
to the provision of cable service over its cable system in any
geographic area in which the video programming services offered
by the operator in that area are subject to effective
competition, or (2) any video programming offered on a per
channel or per program basis. Bulk discounts to multiple
dwelling units shall not be subject to this subsection, except
that a cable operator of a cable system that is not subject to
effective competition may not charge predatory prices to a
multiple dwelling unit. Upon a prima facie showing by a
complainant that there are reasonable grounds to believe that
the discounted price is predatory, the cable system shall have
the burden of showing that its discounted price is not
predatory.'.
(3) EFFECTIVE COMPETITION- Section 623(l)(1) (47 U.S.C.
543(l)(1)) is amended--
(A) by striking `or' at the end of subparagraph (B);
(B) by striking the period at the end of subparagraph (C)
and inserting `; or'; and
(C) by adding at the end the following:
`(D) a local exchange carrier or its affiliate (or any
multichannel video programming distributor using the
facilities of such carrier or its affiliate) offers video
programming services directly to subscribers by any means
(other than direct-to-home satellite services) in the
franchise area of an unaffiliated cable operator which is
providing cable service in that franchise area, but only if
the video programming services so offered in that area are
comparable to the video programming services provided by
the unaffiliated cable operator in that area.'.
(c) GREATER DEREGULATION FOR SMALLER CABLE COMPANIES- Section 623
(47 U.S.C 543) is amended by adding at the end thereof the following:
`(m) SPECIAL RULES FOR SMALL COMPANIES-
`(1) IN GENERAL- Subsections (a), (b), and (c) do not apply
to a small cable operator with respect to--
`(A) cable programming services, or
`(B) a basic service tier that was the only service tier
subject to regulation as of December 31, 1994,
in any franchise area in which that operator services 50,000 or
fewer subscribers.
`(2) DEFINITION OF SMALL CABLE OPERATOR- For purposes of this
subsection, the term `small cable operator' means a cable
operator that, directly or through an affiliate, serves in the
aggregate fewer than 1 percent of all subscribers in the United
States and is not affiliated with any entity or entities whose
gross annual revenues in the aggregate exceed $250,000,000.'.
(d) MARKET DETERMINATIONS-
(1) MARKET DETERMINATIONS; EXPEDITED DECISIONMAKING- Section
614(h)(1)(C) (47 U.S.C. 534(h)(1)(C)) is amended--
(A) by striking `in the manner provided in section
73.3555(d)(3)(i) of title 47, Code of Federal Regulations,
as in effect on May 1, 1991,' in clause (i) and inserting
`by the Commission by regulation or order using, where
available, commercial publications which delineate
television markets based on viewing patterns,'; and
(B) by striking clause (iv) and inserting the following:
`(iv) Within 120 days after the date on which a
request is filed under this subparagraph (or 120 days
after the date of enactment of the Telecommunications
Act of 1996, if later), the Commission shall grant or
deny the request.'.
(2) APPLICATION TO PENDING REQUESTS- The amendment made by
paragraph (1) shall apply to--
(A) any request pending under section 614(h)(1)(C) of the
Communications Act of 1934 (47 U.S.C. 534(h)(1)(C)) on the
date of enactment of this Act; and
(B) any request filed under that section after that date.
(e) TECHNICAL STANDARDS- Section 624(e) (47 U.S.C. 544(e)) is
amended by striking the last two sentences and inserting the
following: `No State or franchising authority may prohibit,
condition, or restrict a cable system's use of any type of
subscriber equipment or any transmission technology.'.
(f) CABLE EQUIPMENT COMPATIBILITY- Section 624A (47 U.S.C. 544A)
is amended--
(1) in subsection (a) by striking `and' at the end of
paragraph (2), by striking the period at the end of paragraph
(3) and inserting `; and'; and by adding at the end the
following new paragraph:
`(4) compatibility among televisions, video cassette
recorders, and cable systems can be assured with narrow
technical standards that mandate a minimum degree of common
design and operation, leaving all features, functions,
protocols, and other product and service options for selection
through open competition in the market.';
(2) in subsection (c)(1)--
(A) by redesignating subparagraphs (A) and (B) as
subparagraphs (B) and (C), respectively; and
(B) by inserting before such redesignated subparagraph
(B) the following new subparagraph:
`(A) the need to maximize open competition in the market
for all features, functions, protocols, and other product
and service options of converter boxes and other cable
converters unrelated to the descrambling or decryption of
cable television signals;'; and
(3) in subsection (c)(2)--
(A) by redesignating subparagraphs (D) and (E) as
subparagraphs (E) and (F), respectively; and
(B) by inserting after subparagraph (C) the following new
subparagraph:
`(D) to ensure that any standards or regulations
developed under the authority of this section to ensure
compatibility between televisions, video cassette
recorders, and cable systems do not affect features,
functions, protocols, and other product and service options
other than those specified in paragraph (1)(B), including
telecommunications interface equipment, home automation
communications, and computer network services;'.
(g) SUBSCRIBER NOTICE- Section 632 (47 U.S.C. 552) is amended--
(1) by redesignating subsection (c) as subsection (d); and
(2) by inserting after subsection (b) the following new
subsection:
`(c) SUBSCRIBER NOTICE- A cable operator may provide notice of
service and rate changes to subscribers using any reasonable
written means at its sole discretion. Notwithstanding section
623(b)(6) or any other provision of this Act, a cable operator
shall not be required to provide prior notice of any rate change
that is the result of a regulatory fee, franchise fee, or any other
fee, tax, assessment, or charge of any kind imposed by any Federal
agency, State, or franchising authority on the transaction between
the operator and the subscriber.'.
(h) PROGRAM ACCESS- Section 628 (47 U.S.C. 548) is amended by
adding at the end the following:
`(j) COMMON CARRIERS- Any provision that applies to a cable
operator under this section shall apply to a common carrier or its
affiliate that provides video programming by any means directly to
subscribers. Any such provision that applies to a satellite cable
programming vendor in which a cable operator has an attributable
interest shall apply to any satellite cable programming vendor in
which such common carrier has an attributable interest. For the
purposes of this subsection, two or fewer common officers or
directors shall not by itself establish an attributable interest by
a common carrier in a satellite cable programming vendor (or its
parent company).'.
(i) ANTITRAFFICKING- Section 617 (47 U.S.C. 537) is amended--
(1) by striking subsections (a) through (d); and
(2) in subsection (e), by striking `(e)' and all that follows
through `a franchising authority' and inserting `A franchising
authority'.
(j) AGGREGATION OF EQUIPMENT COSTS- Section 623(a) (47 U.S.C.
543(a)) is amended by adding at the end the following new paragraph:
`(7) AGGREGATION OF EQUIPMENT COSTS-
`(A) IN GENERAL- The Commission shall allow cable
operators, pursuant to any rules promulgated under
subsection (b)(3), to aggregate, on a franchise, system,
regional, or company level, their equipment costs into
broad categories, such as converter boxes, regardless of
the varying levels of functionality of the equipment within
each such broad category. Such aggregation shall not be
permitted with respect to equipment used by subscribers who
receive only a rate regulated basic service tier.
`(B) REVISION TO COMMISSION RULES; FORMS- Within 120 days
of the date of enactment of the Telecommunications Act of
1996, the Commission shall issue revisions to the
appropriate rules and forms necessary to implement
subparagraph (A).'.
(k) TREATMENT OF PRIOR YEAR LOSSES-
(1) AMENDMENT- Section 623 (48 U.S.C. 543) is amended by
adding at the end thereof the following:
`(n) TREATMENT OF PRIOR YEAR LOSSES- Notwithstanding any other
provision of this section or of section 612, losses associated with
a cable system (including losses associated with the grant or award
of a franchise) that were incurred prior to September 4, 1992, with
respect to a cable system that is owned and operated by the
original franchisee of such system shall not be disallowed, in
whole or in part, in the determination of whether the rates for any
tier of service or any type of equipment that is subject to
regulation under this section are lawful.'.
(2) EFFECTIVE DATE- The amendment made by paragraph (1) shall
take effect on the date of enactment of this Act and shall be
applicable to any rate proposal filed on or after September 4,
1993, upon which no final action has been taken by December 1,
1995.
SEC. 302. CABLE SERVICE PROVIDED BY TELEPHONE COMPANIES.
(a) PROVISIONS FOR REGULATION OF CABLE SERVICE PROVIDED BY
TELEPHONE COMPANIES- Title VI (47 U.S.C. 521 et seq.) is amended by
adding at the end the following new part:
`PART V--VIDEO PROGRAMMING SERVICES PROVIDED BY TELEPHONE COMPANIES
`SEC. 651. REGULATORY TREATMENT OF VIDEO PROGRAMMING SERVICES.
`(a) LIMITATIONS ON CABLE REGULATION-
`(1) RADIO-BASED SYSTEMS- To the extent that a common carrier
(or any other person) is providing video programming to
subscribers using radio communication, such carrier (or other
person) shall be subject to the requirements of title III and
section 652, but shall not otherwise be subject to the
requirements of this title.
`(2) COMMON CARRIAGE OF VIDEO TRAFFIC- To the extent that a
common carrier is providing transmission of video programming
on a common carrier basis, such carrier shall be subject to the
requirements of title II and section 652, but shall not
otherwise be subject to the requirements of this title. This
paragraph shall not affect the treatment under section
602(7)(C) of a facility of a common carrier as a cable system.
`(3) CABLE SYSTEMS AND OPEN VIDEO SYSTEMS- To the extent that
a common carrier is providing video programming to its
subscribers in any manner other than that described in
paragraphs (1) and (2)--
`(A) such carrier shall be subject to the requirements of
this title, unless such programming is provided by means of
an open video system for which the Commission has approved
a certification under section 653; or
`(B) if such programming is provided by means of an open
video system for which the Commission has approved a
certification under section 653, such carrier shall be
subject to the requirements of this part, but shall be
subject to parts I through IV of this title only as
provided in 653(c).
`(4) ELECTION TO OPERATE AS OPEN VIDEO SYSTEM- A common
carrier that is providing video programming in a manner
described in paragraph (1) or (2), or a combination thereof,
may elect to provide such programming by means of an open video
system that complies with section 653. If the Commission
approves such carrier's certification under section 653, such
carrier shall be subject to the requirements of this part, but
shall be subject to parts I through IV of this title only as
provided in 653(c).
`(b) LIMITATIONS ON INTERCONNECTION OBLIGATIONS- A local exchange
carrier that provides cable service through an open video system or
a cable system shall not be required, pursuant to title II of this
Act, to make capacity available on a nondiscriminatory basis to any
other person for the provision of cable service directly to
subscribers.
`(c) ADDITIONAL REGULATORY RELIEF- A common carrier shall not be
required to obtain a certificate under section 214 with respect to
the establishment or operation of a system for the delivery of
video programming.
`SEC. 652. PROHIBITION ON BUY OUTS.
`(a) ACQUISITIONS BY CARRIERS- No local exchange carrier or any
affiliate of such carrier owned by, operated by, controlled by, or
under common control with such carrier may purchase or otherwise
acquire directly or indirectly more than a 10 percent financial
interest, or any management interest, in any cable operator
providing cable service within the local exchange carrier's
telephone service area.
`(b) ACQUISITIONS BY CABLE OPERATORS- No cable operator or
affiliate of a cable operator that is owned by, operated by,
controlled by, or under common ownership with such cable operator
may purchase or otherwise acquire, directly or indirectly, more
than a 10 percent financial interest, or any management interest,
in any local exchange carrier providing telephone exchange service
within such cable operator's franchise area.
`(c) JOINT VENTURES- A local exchange carrier and a cable
operator whose telephone service area and cable franchise area,
respectively, are in the same market may not enter into any joint
venture or partnership to provide video programming directly to
subscribers or to provide telecommunications services within such
market.
`(d) EXCEPTIONS-
`(1) RURAL SYSTEMS- Notwithstanding subsections (a), (b), and
(c) of this section, a local exchange carrier (with respect to
a cable system located in its telephone service area) and a
cable operator (with respect to the facilities of a local
exchange carrier used to provide telephone exchange service in
its cable franchise area) may obtain a controlling interest in,
management interest in, or enter into a joint venture or
partnership with the operator of such system or facilities for
the use of such system or facilities to the extent that--
`(A) such system or facilities only serve incorporated or
unincorporated--
`(i) places or territories that have fewer than
35,000 inhabitants; and
`(ii) are outside an urbanized area, as defined by
the Bureau of the Census; and
`(B) in the case of a local exchange carrier, such
system, in the aggregate with any other system in which
such carrier has an interest, serves less than 10 percent
of the households in the telephone service area of such
carrier.
`(2) JOINT USE- Notwithstanding subsection (c), a local
exchange carrier may obtain, with the concurrence of the cable
operator on the rates, terms, and conditions, the use of that
part of the transmission facilities of a cable system extending
from the last multi-user terminal to the premises of the end
user, if such use is reasonably limited in scope and duration,
as determined by the Commission.
`(3) ACQUISITIONS IN COMPETITIVE MARKETS- Notwithstanding
subsections (a) and (c), a local exchange carrier may obtain a
controlling interest in, or form a joint venture or other
partnership with, or provide financing to, a cable system
(hereinafter in this paragraph referred to as `the subject
cable system'), if--
`(A) the subject cable system operates in a television
market that is not in the top 25 markets, and such market
has more than 1 cable system operator, and the subject
cable system is not the cable system with the most
subscribers in such television market;
`(B) the subject cable system and the cable system with
the most subscribers in such television market held on May
1, 1995, cable television franchises from the largest
municipality in the television market and the boundaries of
such franchises were identical on such date;
`(C) the subject cable system is not owned by or under
common ownership or control of any one of the 50 cable
system operators with the most subscribers as such
operators existed on May 1, 1995; and
`(D) the system with the most subscribers in the
television market is owned by or under common ownership or
control of any one of the 10 largest cable system operators
as such operators existed on May 1, 1995.
`(4) EXEMPT CABLE SYSTEMS- Subsection (a) does not apply to
any cable system if--
`(A) the cable system serves no more than 17,000 cable
subscribers, of which no less than 8,000 live within an
urban area, and no less than 6,000 live within a
nonurbanized area as of June 1, 1995;
`(B) the cable system is not owned by, or under common
ownership or control with, any of the 50 largest cable
system operators in existence on June 1, 1995; and
`(C) the cable system operates in a television market
that was not in the top 100 television markets as of June
1, 1995.
`(5) SMALL CABLE SYSTEMS IN NONURBAN AREAS- Notwithstanding
subsections (a) and (c), a local exchange carrier with less
than $100,000,000 in annual operating revenues (or any
affiliate of such carrier owned by, operated by, controlled by,
or under common control with such carrier) may purchase or
otherwise acquire more than a 10 percent financial interest in,
or any management interest in, or enter into a joint venture or
partnership with, any cable system within the local exchange
carrier's telephone service area that serves no more than
20,000 cable subscribers, if no more than 12,000 of those
subscribers live within an urbanized area, as defined by the
Bureau of the Census.
`(6) WAIVERS- The Commission may waive the restrictions of
subsections (a), (b), or (c) only if--
`(A) the Commission determines that, because of the
nature of the market served by the affected cable system or
facilities used to provide telephone exchange service--
`(i) the affected cable operator or local exchange
carrier would be subjected to undue economic distress
by the enforcement of such provisions;
`(ii) the system or facilities would not be
economically viable if such provisions were enforced; or
`(iii) the anticompetitive effects of the proposed
transaction are clearly outweighed in the public
interest by the probable effect of the transaction in
meeting the convenience and needs of the community to
be served; and
`(B) the local franchising authority approves of such
waiver.
`(e) DEFINITION OF TELEPHONE SERVICE AREA- For purposes of this
section, the term `telephone service area' when used in connection
with a common carrier subject in whole or in part to title II of
this Act means the area within which such carrier provided
telephone exchange service as of January 1, 1993, but if any common
carrier after such date transfers its telephone exchange service
facilities to another common carrier, the area to which such
facilities provide telephone exchange service shall be treated as
part of the telephone service area of the acquiring common carrier
and not of the selling common carrier.
`SEC. 653. ESTABLISHMENT OF OPEN VIDEO SYSTEMS.
`(a) OPEN VIDEO SYSTEMS-
`(1) CERTIFICATES OF COMPLIANCE- A local exchange carrier may
provide cable service to its cable service subscribers in its
telephone service area through an open video system that
complies with this section. To the extent permitted by such
regulations as the Commission may prescribe consistent with the
public interest, convenience, and necessity, an operator of a
cable system or any other person may provide video programming
through an open video system that complies with this section.
An operator of an open video system shall qualify for reduced
regulatory burdens under subsection (c) of this section if the
operator of such system certifies to the Commission that such
carrier complies with the Commission's regulations under
subsection (b) and the Commission approves such certification.
The Commission shall publish notice of the receipt of any such
certification and shall act to approve or disapprove any such
certification within 10 days after receipt of such certification.
`(2) DISPUTE RESOLUTION- The Commission shall have the
authority to resolve disputes under this section and the
regulations prescribed thereunder. Any such dispute shall be
resolved within 180 days after notice of such dispute is
submitted to the Commission. At that time or subsequently in a
separate damages proceeding, the Commission may, in the case of
any violation of this section, require carriage, award damages
to any person denied carriage, or any combination of such
sanctions. Any aggrieved party may seek any other remedy
available under this Act.
`(b) COMMISSION ACTIONS-
`(1) REGULATIONS REQUIRED- Within 6 months after the date of
enactment of the Telecommunications Act of 1996, the Commission
shall complete all actions necessary (including any
reconsideration) to prescribe regulations that--
`(A) except as required pursuant to section 611, 614, or
615, prohibit an operator of an open video system from
discriminating among video programming providers with
regard to carriage on its open video system, and ensure
that the rates, terms, and conditions for such carriage are
just and reasonable, and are not unjustly or unreasonably
discriminatory;
`(B) if demand exceeds the channel capacity of the open
video system, prohibit an operator of an open video system
and its affiliates from selecting the video programming
services for carriage on more than one-third of the
activated channel capacity on such system, but nothing in
this subparagraph shall be construed to limit the number of
channels that the carrier and its affiliates may offer to
provide directly to subscribers;
`(C) permit an operator of an open video system to carry
on only one channel any video programming service that is
offered by more than one video programming provider
(including the local exchange carrier's video programming
affiliate): [Italic->] Provided, [<-Italic] That
subscribers have ready and immediate access to any such
video programming service;
`(D) extend to the distribution of video programming over
open video systems the Commission's regulations concerning
sports exclusivity (47 C.F.R. 76.67), network
nonduplication (47 C.F.R. 76.92 et seq.), and syndicated
exclusivity (47 C.F.R. 76.151 et seq.); and
`(E)(i) prohibit an operator of an open video system from
unreasonably discriminating in favor of the operator or its
affiliates with regard to material or information
(including advertising) provided by the operator to
subscribers for the purposes of selecting programming on
the open video system, or in the way such material or
information is presented to subscribers;
`(ii) require an operator of an open video system to
ensure that video programming providers or copyright
holders (or both) are able suitably and uniquely to
identify their programming services to subscribers;
`(iii) if such identification is transmitted as part of
the programming signal, require the carrier to transmit
such identification without change or alteration; and
`(iv) prohibit an operator of an open video system from
omitting television broadcast stations or other
unaffiliated video programming services carried on such
system from any navigational device, guide, or menu.
`(2) CONSUMER ACCESS- Subject to the requirements of
paragraph (1) and the regulations thereunder, nothing in this
section prohibits a common carrier or its affiliate from
negotiating mutually agreeable terms and conditions with
over-the-air broadcast stations and other unaffiliated video
programming providers to allow consumer access to their signals
on any level or screen of any gateway, menu, or other program
guide, whether provided by the carrier or its affiliate.
`(c) REDUCED REGULATORY BURDENS FOR OPEN VIDEO SYSTEMS-
`(1) IN GENERAL- Any provision that applies to a cable
operator under--
`(A) sections 613 (other than subsection (a) thereof),
616, 623(f), 628, 631, and 634 of this title, shall apply,
`(B) sections 611, 614, and 615 of this title, and
section 325 of title III, shall apply in accordance with
the regulations prescribed under paragraph (2), and
`(C) sections 612 and 617, and parts III and IV (other
than sections 623(f), 628, 631, and 634), of this title
shall not apply,
to any operator of an open video system for which the
Commission has approved a certification under this section.
`(2) IMPLEMENTATION-
`(A) COMMISSION ACTION- In the rulemaking proceeding to
prescribe the regulations required by subsection (b)(1),
the Commission shall, to the extent possible, impose
obligations that are no greater or lesser than the
obligations contained in the provisions described in
paragraph (1)(B) of this subsection. The Commission shall
complete all action (including any reconsideration) to
prescribe such regulations no later than 6 months after the
date of enactment of the Telecommunications Act of 1996.
`(B) FEES- An operator of an open video system under this
part may be subject to the payment of fees on the gross
revenues of the operator for the provision of cable service
imposed by a local franchising authority or other
governmental entity, in lieu of the franchise fees
permitted under section 622. The rate at which such fees
are imposed shall not exceed the rate at which franchise
fees are imposed on any cable operator transmitting video
programming in the franchise area, as determined in
accordance with regulations prescribed by the Commission.
An operator of an open video system may designate that
portion of a subscriber's bill attributable to the fee
under this subparagraph as a separate item on the bill.
`(3) REGULATORY STREAMLINING- With respect to the
establishment and operation of an open video system, the
requirements of this section shall apply in lieu of, and not in
addition to, the requirements of title II.
`(4) TREATMENT AS CABLE OPERATOR- Nothing in this Act
precludes a video programming provider making use of an open
video system from being treated as an operator of a cable
system for purposes of section 111 of title 17, United States
Code.
`(d) DEFINITION OF TELEPHONE SERVICE AREA- For purposes of this
section, the term `telephone service area' when used in connection
with a common carrier subject in whole or in part to title II of
this Act means the area within which such carrier is offering
telephone exchange service.'.
(b) CONFORMING AND TECHNICAL AMENDMENTS-
(1) REPEAL- Subsection (b) of section 613 (47 U.S.C. 533(b))
is repealed.
(2) DEFINITIONS- Section 602 (47 U.S.C. 531) is amended--
(A) in paragraph (7), by striking `, or (D)' and
inserting the following: `, unless the extent of such use
is solely to provide interactive on-demand services; (D) an
open video system that complies with section 653 of this
title; or (E)';
(B) by redesignating paragraphs (12) through (19) as
paragraphs (13) through (20), respectively; and
(C) by inserting after paragraph (11) the following new
paragraph:
`(12) the term `interactive on-demand services' means a
service providing video programming to subscribers over
switched networks on an on-demand, point-to-point basis, but
does not include services providing video programming
prescheduled by the programming provider;'.
(3) TERMINATION OF VIDEO-DIALTONE REGULATIONS- The
Commission's regulations and policies with respect to video
dialtone requirements issued in CC Docket No. 87-266 shall
cease to be effective on the date of enactment of this Act.
This paragraph shall not be construed to require the
termination of any video-dialtone system that the Commission
has approved before the date of enactment of this Act.
SEC. 303. PREEMPTION OF FRANCHISING AUTHORITY REGULATION OF
TELECOMMUNICATIONS SERVICES.
(a) PROVISION OF TELECOMMUNICATIONS SERVICES BY A CABLE OPERATOR-
Section 621(b) (47 U.S.C. 541(b)) is amended by adding at the end
thereof the following new paragraph:
`(3)(A) If a cable operator or affiliate thereof is engaged in
the provision of telecommunications services--
`(i) such cable operator or affiliate shall not be required
to obtain a franchise under this title for the provision of
telecommunications services; and
`(ii) the provisions of this title shall not apply to such
cable operator or affiliate for the provision of
telecommunications services.
`(B) A franchising authority may not impose any requirement under
this title that has the purpose or effect of prohibiting, limiting,
restricting, or conditioning the provision of a telecommunications
service by a cable operator or an affiliate thereof.
`(C) A franchising authority may not order a cable operator or
affiliate thereof--
`(i) to discontinue the provision of a telecommunications
service, or
`(ii) to discontinue the operation of a cable system, to the
extent such cable system is used for the provision of a
telecommunications service, by reason of the failure of such
cable operator or affiliate thereof to obtain a franchise or
franchise renewal under this title with respect to the
provision of such telecommunications service.
`(D) Except as otherwise permitted by sections 611 and 612, a
franchising authority may not require a cable operator to provide
any telecommunications service or facilities, other than
institutional networks, as a condition of the initial grant of a
franchise, a franchise renewal, or a transfer of a franchise.'.
(b) FRANCHISE FEES- Section 622(b) (47 U.S.C. 542(b)) is amended
by inserting `to provide cable services' immediately before the
period at the end of the first sentence thereof.
SEC. 304. COMPETITIVE AVAILABILITY OF NAVIGATION DEVICES.
Part III of title VI is amended by inserting after section 628
(47 U.S.C. 548) the following new section:
`SEC. 629. COMPETITIVE AVAILABILITY OF NAVIGATION DEVICES.
`(a) COMMERCIAL CONSUMER AVAILABILITY OF EQUIPMENT USED TO ACCESS
SERVICES PROVIDED BY MULTICHANNEL VIDEO PROGRAMMING DISTRIBUTORS-
The Commission shall, in consultation with appropriate industry
standard-setting organizations, adopt regulations to assure the
commercial availability, to consumers of multichannel video
programming and other services offered over multichannel video
programming systems, of converter boxes, interactive communications
equipment, and other equipment used by consumers to access
multichannel video programming and other services offered over
multichannel video programming systems, from manufacturers,
retailers, and other vendors not affiliated with any multichannel
video programming distributor. Such regulations shall not prohibit
any multichannel video programming distributor from also offering
converter boxes, interactive communications equipment, and other
equipment used by consumers to access multichannel video
programming and other services offered over multichannel video
programming systems, to consumers, if the system operator's charges
to consumers for such devices and equipment are separately stated
and not subsidized by charges for any such service.
`(b) PROTECTION OF SYSTEM SECURITY- The Commission shall not
prescribe regulations under subsection (a) which would jeopardize
security of multichannel video programming and other services
offered over multichannel video programming systems, or impede the
legal rights of a provider of such services to prevent theft of
service.
`(c) WAIVER- The Commission shall waive a regulation adopted
under subsection (a) for a limited time upon an appropriate showing
by a provider of multichannel video programming and other services
offered over multichannel video programming systems, or an
equipment provider, that such waiver is necessary to assist the
development or introduction of a new or improved multichannel video
programming or other service offered over multichannel video
programming systems, technology, or products. Upon an appropriate
showing, the Commission shall grant any such waiver request within
90 days of any application filed under this subsection, and such
waiver shall be effective for all service providers and products in
that category and for all providers of services and products.
`(d) AVOIDANCE OF REDUNDANT REGULATIONS-
`(1) COMMERCIAL AVAILABILITY DETERMINATIONS- Determinations
made or regulations prescribed by the Commission with respect
to commercial availability to consumers of converter boxes,
interactive communications equipment, and other equipment used
by consumers to access multichannel video programming and other
services offered over multichannel video programming systems,
before the date of enactment of the Telecommunications Act of
1996 shall fulfill the requirements of this section.
`(2) REGULATIONS- Nothing in this section affects section
64.702(e) of the Commission's regulations (47 C.F.R. 64.702(e))
or other Commission regulations governing interconnection and
competitive provision of customer premises equipment used in
connection with basic common carrier communications services.
`(e) SUNSET- The regulations adopted under this section shall
cease to apply when the Commission determines that--
`(1) the market for the multichannel video programming
distributors is fully competitive;
`(2) the market for converter boxes, and interactive
communications equipment, used in conjunction with that service
is fully competitive; and
`(3) elimination of the regulations would promote competition
and the public interest.
`(f) COMMISSION'S AUTHORITY- Nothing in this section shall be
construed as expanding or limiting any authority that the
Commission may have under law in effect before the date of
enactment of the Telecommunications Act of 1996.'.
SEC. 305. VIDEO PROGRAMMING ACCESSIBILITY.
Title VII is amended by inserting after section 712 (47 U.S.C.
612) the following new section:
`SEC. 713. VIDEO PROGRAMMING ACCESSIBILITY.
`(a) COMMISSION INQUIRY- Within 180 days after the date of
enactment of the Telecommunications Act of 1996, the Federal
Communications Commission shall complete an inquiry to ascertain
the level at which video programming is closed captioned. Such
inquiry shall examine the extent to which existing or previously
published programming is closed captioned, the size of the video
programming provider or programming owner providing closed
captioning, the size of the market served, the relative audience
shares achieved, or any other related factors. The Commission shall
submit to the Congress a report on the results of such inquiry.
`(b) ACCOUNTABILITY CRITERIA- Within 18 months after such date of
enactment, the Commission shall prescribe such regulations as are
necessary to implement this section. Such regulations shall ensure
that--
`(1) video programming first published or exhibited after the
effective date of such regulations is fully accessible through
the provision of closed captions, except as provided in
subsection (d); and
`(2) video programming providers or owners maximize the
accessibility of video programming first published or exhibited
prior to the effective date of such regulations through the
provision of closed captions, except as provided in subsection
(d).
`(c) DEADLINES FOR CAPTIONING- Such regulations shall include an
appropriate schedule of deadlines for the provision of closed
captioning of video programming.
`(d) EXEMPTIONS- Notwithstanding subsection (b)--
`(1) the Commission may exempt by regulation programs,
classes of programs, or services for which the Commission has
determined that the provision of closed captioning would be
economically burdensome to the provider or owner of such
programming;
`(2) a provider of video programming or the owner of any
program carried by the provider shall not be obligated to
supply closed captions if such action would be inconsistent
with contracts in effect on the date of enactment of the
Telecommunications Act of 1996, except that nothing in this
section shall be construed to relieve a video programming
provider of its obligations to provide services required by
Federal law; and
`(3) a provider of video programming or program owner may
petition the Commission for an exemption from the requirements
of this section, and the Commission may grant such petition
upon a showing that the requirements contained in this section
would result in an undue burden.
`(e) UNDUE BURDEN- The term `undue burden' means significant
difficulty or expense. In determining whether the closed captions
necessary to comply with the requirements of this paragraph would
result in an undue economic burden, the factors to be considered
include--
`(1) the nature and cost of the closed captions for the
programming;
`(2) the impact on the operation of the provider or program
owner;
`(3) the financial resources of the provider or program
owner; and
`(4) the type of operations of the provider or program owner.
`(f) VIDEO DESCRIPTIONS INQUIRY- Within 6 months after the date
of enactment of the Telecommunications Act of 1996, the Commission
shall commence an inquiry to examine the use of video descriptions
on video programming in order to ensure the accessibility of video
programming to persons with visual impairments, and report to
Congress on its findings. The Commission's report shall assess
appropriate methods and schedules for phasing video descriptions
into the marketplace, technical and quality standards for video
descriptions, a definition of programming for which video
descriptions would apply, and other technical and legal issues that
the Commission deems appropriate.
`(g) VIDEO DESCRIPTION- For purposes of this section, `video
description' means the insertion of audio narrated descriptions of
a television program's key visual elements into natural pauses
between the program's dialogue.
`(h) PRIVATE RIGHTS OF ACTIONS PROHIBITED- Nothing in this
section shall be construed to authorize any private right of action
to enforce any requirement of this section or any regulation
thereunder. The Commission shall have exclusive jurisdiction with
respect to any complaint under this section.'.
TITLE IV--REGULATORY REFORM
SEC. 401. REGULATORY FORBEARANCE.
Title I is amended by inserting after section 9 (47 U.S.C. 159)
the following new section:
`SEC. 10. COMPETITION IN PROVISION OF TELECOMMUNICATIONS SERVICE.
`(a) REGULATORY FLEXIBILITY- Notwithstanding section 332(c)(1)(A)
of this Act, the Commission shall forbear from applying any
regulation or any provision of this Act to a telecommunications
carrier or telecommunications service, or class of
telecommunications carriers or telecommunications services, in any
or some of its or their geographic markets, if the Commission
determines that--
`(1) enforcement of such regulation or provision is not
necessary to ensure that the charges, practices,
classifications, or regulations by, for, or in connection with
that telecommunications carrier or telecommunications service
are just and reasonable and are not unjustly or unreasonably
discriminatory;
`(2) enforcement of such regulation or provision is not
necessary for the protection of consumers; and
`(3) forbearance from applying such provision or regulation
is consistent with the public interest.
`(b) COMPETITIVE EFFECT TO BE WEIGHED- In making the
determination under subsection (a)(3), the Commission shall
consider whether forbearance from enforcing the provision or
regulation will promote competitive market conditions, including
the extent to which such forbearance will enhance competition among
providers of telecommunications services. If the Commission
determines that such forbearance will promote competition among
providers of telecommunications services, that determination may be
the basis for a Commission finding that forbearance is in the
public interest.
`(c) PETITION FOR FORBEARANCE- Any telecommunications carrier, or
class of telecommunications carriers, may submit a petition to the
Commission requesting that the Commission exercise the authority
granted under this section with respect to that carrier or those
carriers, or any service offered by that carrier or carriers. Any
such petition shall be deemed granted if the Commission does not
deny the petition for failure to meet the requirements for
forbearance under subsection (a) within one year after the
Commission receives it, unless the one-year period is extended by
the Commission. The Commission may extend the initial one-year
period by an additional 90 days if the Commission finds that an
extension is necessary to meet the requirements of subsection (a).
The Commission may grant or deny a petition in whole or in part and
shall explain its decision in writing.
`(d) LIMITATION- Except as provided in section 251(f), the
Commission may not forbear from applying the requirements of
section 251(c) or 271 under subsection (a) of this section until it
determines that those requirements have been fully implemented.
`(e) STATE ENFORCEMENT AFTER COMMISSION FORBEARANCE- A State
commission may not continue to apply or enforce any provision of
this Act that the Commission has determined to forbear from
applying under subsection (a).'.
SEC. 402. BIENNIAL REVIEW OF REGULATIONS; REGULATORY RELIEF.
(a) BIENNIAL REVIEW- Title I is amended by inserting after
section 10 (as added by section 401) the following new section:
`SEC. 11. REGULATORY REFORM.
`(a) BIENNIAL REVIEW OF REGULATIONS- In every even-numbered year
(beginning with 1998), the Commission--
`(1) shall review all regulations issued under this Act in
effect at the time of the review that apply to the operations
or activities of any provider of telecommunications service; and
`(2) shall determine whether any such regulation is no longer
necessary in the public interest as the result of meaningful
economic competition between providers of such service.
`(b) EFFECT OF DETERMINATION- The Commission shall repeal or
modify any regulation it determines to be no longer necessary in
the public interest.'.
(b) REGULATORY RELIEF-
(1) Streamlined procedures for changes in charges,
classifications, regulations, or practices-
(A) Section 204(a) (47 U.S.C. 204(a)) is amended--
(i) by striking `12 months' the first place it
appears in paragraph (2)(A) and inserting `5 months';
(ii) by striking `effective,' and all that follows in
paragraph (2)(A) and inserting `effective.'; and
(iii) by adding at the end thereof the following:
`(3) A local exchange carrier may file with the Commission a
new or revised charge, classification, regulation, or practice
on a streamlined basis. Any such charge, classification,
regulation, or practice shall be deemed lawful and shall be
effective 7 days (in the case of a reduction in rates) or 15
days (in the case of an increase in rates) after the date on
which it is filed with the Commission unless the Commission
takes action under paragraph (1) before the end of that 7-day
or 15-day period, as is appropriate.'.
(B) Section 208(b) (47 U.S.C. 208(b)) is amended--
(i) by striking `12 months' the first place it
appears in paragraph (1) and inserting `5 months'; and
(ii) by striking `filed,' and all that follows in
paragraph (1) and inserting `filed.'.
(2) EXTENSIONS OF LINES UNDER SECTION 214; ARMIS REPORTS- The
Commission shall permit any common carrier--
(A) to be exempt from the requirements of section 214 of
the Communications Act of 1934 for the extension of any
line; and
(B) to file cost allocation manuals and ARMIS reports
annually, to the extent such carrier is required to file
such manuals or reports.
(3) FORBEARANCE AUTHORITY NOT LIMITED- Nothing in this
subsection shall be construed to limit the authority of the
Commission to waive, modify, or forbear from applying any of
the requirements to which reference is made in paragraph (1)
under any other provision of this Act or other law.
(4) EFFECTIVE DATE OF AMENDMENTS- The amendments made by
paragraph (1) of this subsection shall apply with respect to
any charge, classification, regulation, or practice filed on or
after one year after the date of enactment of this Act.
(c) CLASSIFICATION OF CARRIERS- In classifying carriers according
to section 32.11 of its regulations (47 C.F.R. 32.11) and in
establishing reporting requirements pursuant to part 43 of its
regulations (47 C.F.R. part 43) and section 64.903 of its
regulations (47 C.F.R. 64.903), the Commission shall adjust the
revenue requirements to account for inflation as of the release
date of the Commission's Report and Order in CC Docket No. 91-141,
and annually thereafter. This subsection shall take effect on the
date of enactment of this Act.
SEC. 403. ELIMINATION OF UNNECESSARY COMMISSION REGULATIONS AND
FUNCTIONS.
(a) MODIFICATION OF AMATEUR RADIO EXAMINATION PROCEDURES- Section
4(f)(4) (47 U.S.C. 154(f)(4)) is amended--
(1) in subparagraph (A)--
(A) by inserting `or administering' after `for purposes
of preparing';
(B) by inserting `of' after `than the class'; and
(C) by inserting `or administered' after `for which the
examination is being prepared';
(2) by striking subparagraph (B);
(3) in subparagraph (H), by striking `(A), (B), and (C)' and
inserting `(A) and (B)';
(4) in subparagraph (J)--
(A) by striking `or (B)'; and
(B) by striking the last sentence; and
(5) by redesignating subparagraphs (C) through (J) as
subparagraphs (B) through (I), respectively.
(b) AUTHORITY TO DESIGNATE ENTITIES TO INSPECT- Section 4(f)(3)
(47 U.S.C. 154(f)(3)) is amended by inserting before the period at
the end the following: `: and [Italic->] Provided further,
[<-Italic] That, in the alternative, an entity designated by the
Commission may make the inspections referred to in this paragraph'.
(c) EXPEDITING INSTRUCTIONAL TELEVISION FIXED SERVICE PROCESSING-
Section 5(c)(1) (47 U.S.C. 155(c)(1)) is amended by striking the
last sentence and inserting the following: `Except for cases
involving the authorization of service in the instructional
television fixed service, or as otherwise provided in this Act,
nothing in this paragraph shall authorize the Commission to provide
for the conduct, by any person or persons other than persons
referred to in paragraph (2) or (3) of section 556(b) of title 5,
United States Code, of any hearing to which such section applies.'.
(d) REPEAL SETTING OF DEPRECIATION RATES- The first sentence of
section 220(b) (47 U.S.C. 220(b)) is amended by striking `shall
prescribe for such carriers' and inserting `may prescribe, for such
carriers as it determines to be appropriate,'.
(e) USE OF INDEPENDENT AUDITORS- Section 220(c) (47 U.S.C.
220(c)) is amended by adding at the end thereof the following: `The
Commission may obtain the services of any person licensed to
provide public accounting services under the law of any State to
assist with, or conduct, audits under this section. While so
employed or engaged in conducting an audit for the Commission under
this section, any such person shall have the powers granted the
Commission under this subsection and shall be subject to subsection
(f) in the same manner as if that person were an employee of the
Commission.'.
(f) DELEGATION OF EQUIPMENT TESTING AND CERTIFICATION TO PRIVATE
LABORATORIES- Section 302 (47 U.S.C. 302) is amended by adding at
the end the following:
`(e) The Commission may--
`(1) authorize the use of private organizations for testing
and certifying the compliance of devices or home electronic
equipment and systems with regulations promulgated under this
section;
`(2) accept as prima facie evidence of such compliance the
certification by any such organization; and
`(3) establish such qualifications and standards as it deems
appropriate for such private organizations, testing, and
certification.'.
(g) MAKING LICENSE MODIFICATION UNIFORM- Section 303(f) (47
U.S.C. 303(f)) is amended by striking `unless, after a public
hearing,' and inserting `unless'.
(h) ELIMINATE FCC JURISDICTION OVER GOVERNMENT-OWNED SHIP RADIO
STATIONS-
(1) Section 305 (47 U.S.C. 305) is amended by striking
subsection (b) and redesignating subsections (c) and (d) as (b)
and (c), respectively.
(2) Section 382(2) (47 U.S.C. 382(2)) is amended by striking
`except a vessel of the United States Maritime Administration,
the Inland and Coastwise Waterways Service, or the Panama Canal
Company,'.
(i) PERMIT OPERATION OF DOMESTIC SHIP AND AIRCRAFT RADIOS WITHOUT
LICENSE- Section 307(e) (47 U.S.C. 307(e)) is amended to read as
follows:
`(e)(1) Notwithstanding any license requirement established in
this Act, if the Commission determines that such authorization
serves the public interest, convenience, and necessity, the
Commission may by rule authorize the operation of radio stations
without individual licenses in the following radio services: (A)
the citizens band radio service; (B) the radio control service; (C)
the aviation radio service for aircraft stations operated on
domestic flights when such aircraft are not otherwise required to
carry a radio station; and (D) the maritime radio service for ship
stations navigated on domestic voyages when such ships are not
otherwise required to carry a radio station.
`(2) Any radio station operator who is authorized by the
Commission to operate without an individual license shall comply
with all other provisions of this Act and with rules prescribed by
the Commission under this Act.
`(3) For purposes of this subsection, the terms `citizens band
radio service', `radio control service', `aircraft station' and
`ship station' shall have the meanings given them by the Commission
by rule.'.
(j) EXPEDITED LICENSING FOR FIXED MICROWAVE SERVICE- Section
309(b)(2) (47 U.S.C. 309(b)(2)) is amended by striking subparagraph
(A) and redesignating subparagraphs (B) through (G) as
subparagraphs (A) through (F), respectively.
(k) FOREIGN DIRECTORS- Section 310(b) (47 U.S.C. 310(b)) is
amended--
(1) in paragraph (3), by striking `of which any officer or
director is an alien or'; and
(2) in paragraph (4), by striking `of which any officer or
more than one-fourth of the directors are aliens, or'.
(l) LIMITATION ON SILENT STATION AUTHORIZATIONS- Section 312 (47
U.S.C. 312) is amended by adding at the end the following:
`(g) If a broadcasting station fails to transmit broadcast
signals for any consecutive 12-month period, then the station
license granted for the operation of that broadcast station expires
at the end of that period, notwithstanding any provision, term, or
condition of the license to the contrary.'.
(m) MODIFICATION OF CONSTRUCTION PERMIT REQUIREMENT- Section
319(d) is amended by striking the last two sentences and inserting
the following: `With respect to any broadcasting station, the
Commission shall not have any authority to waive the requirement of
a permit for construction, except that the Commission may by
regulation determine that a permit shall not be required for minor
changes in the facilities of authorized broadcast stations. With
respect to any other station or class of stations, the Commission
shall not waive the requirement for a construction permit unless
the Commission determines that the public interest, convenience,
and necessity would be served by such a waiver.'.
(n) CONDUCT OF INSPECTIONS- Section 362(b) (47 U.S.C. 362(b)) is
amended to read as follows:
`(b) Every ship of the United States that is subject to this part
shall have the equipment and apparatus prescribed therein inspected
at least once each year by the Commission or an entity designated
by the Commission. If, after such inspection, the Commission is
satisfied that all relevant provisions of this Act and the station
license have been complied with, the fact shall be so certified on
the station license by the Commission. The Commission shall make
such additional inspections at frequent intervals as the Commission
determines may be necessary to ensure compliance with the
requirements of this Act. The Commission may, upon a finding that
the public interest could be served thereby--
`(1) waive the annual inspection required under this section
for a period of up to 90 days for the sole purpose of enabling
a vessel to complete its voyage and proceed to a port in the
United States where an inspection can be held; or
`(2) waive the annual inspection required under this section
for a vessel that is in compliance with the radio provisions of
the Safety Convention and that is operating solely in waters
beyond the jurisdiction of the United States: [Italic->]
Provided, [<-Italic] That such inspection shall be performed
within 30 days of such vessel's return to the United States.'.
(o) INSPECTION BY OTHER ENTITIES- Section 385 (47 U.S.C. 385) is
amended--
(1) by inserting `or an entity designated by the Commission'
after `The Commission'; and
(2) by adding at the end thereof the following: `In
accordance with such other provisions of law as apply to
Government contracts, the Commission may enter into contracts
with any person for the purpose of carrying out such
inspections and certifying compliance with those requirements,
and may, as part of any such contract, allow any such person to
accept reimbursement from the license holder for travel and
expense costs of any employee conducting an inspection or
certification.'.
TITLE V--OBSCENITY AND VIOLENCE
SUBTITLE A--OBSCENE, HARASSING, AND WRONGFUL UTILIZATION OF
TELECOMMUNICATIONS FACILITIES
SEC. 501. SHORT TITLE.
This title may be cited as the `Communications Decency Act of
1996'.
SEC. 502. OBSCENE OR HARASSING USE OF TELECOMMUNICATIONS FACILITIES
UNDER THE COMMUNICATIONS ACT OF 1934.
Section 223 (47 U.S.C. 223) is amended--
(1) by striking subsection (a) and inserting in lieu thereof:
`(a) Whoever--
`(1) in interstate or foreign communications--
`(A) by means of a telecommunications device knowingly--
`(i) makes, creates, or solicits, and
`(ii) initiates the transmission of,
any comment, request, suggestion, proposal, image, or other
communication which is obscene, lewd, lascivious, filthy,
or indecent, with intent to annoy, abuse, threaten, or
harass another person;
`(B) by means of a telecommunications device knowingly--
`(i) makes, creates, or solicits, and
`(ii) initiates the transmission of,
any comment, request, suggestion, proposal, image, or other
communication which is obscene or indecent, knowing that
the recipient of the communication is under 18 years of
age, regardless of whether the maker of such communication
placed the call or initiated the communication;
`(C) makes a telephone call or utilizes a
telecommunications device, whether or not conversation or
communication ensues, without disclosing his identity and
with intent to annoy, abuse, threaten, or harass any person
at the called number or who receives the communications;
`(D) makes or causes the telephone of another repeatedly
or continuously to ring, with intent to harass any person
at the called number; or
`(E) makes repeated telephone calls or repeatedly
initiates communication with a telecommunications device,
during which conversation or communication ensues, solely
to harass any person at the called number or who receives
the communication; or
`(2) knowingly permits any telecommunications facility under
his control to be used for any activity prohibited by paragraph
(1) with the intent that it be used for such activity,
shall be fined under title 18, United States Code, or imprisoned
not more than two years, or both.'; and
(2) by adding at the end the following new subsections:
`(d) Whoever--
`(1) in interstate or foreign communications knowingly--
`(A) uses an interactive computer service to send to a
specific person or persons under 18 years of age, or
`(B) uses any interactive computer service to display in
a manner available to a person under 18 years of age,
any comment, request, suggestion, proposal, image, or other
communication that, in context, depicts or describes, in terms
patently offensive as measured by contemporary community
standards, sexual or excretory activities or organs, regardless
of whether the user of such service placed the call or
initiated the communication; or
`(2) knowingly permits any telecommunications facility under
such person's control to be used for an activity prohibited by
paragraph (1) with the intent that it be used for such activity,
shall be fined under title 18, United States Code, or imprisoned
not more than two years, or both.
`(e) In addition to any other defenses available by law:
`(1) No person shall be held to have violated subsection (a)
or (d) solely for providing access or connection to or from a
facility, system, or network not under that person's control,
including transmission, downloading, intermediate storage,
access software, or other related capabilities that are
incidental to providing such access or connection that does not
include the creation of the content of the communication.
`(2) The defenses provided by paragraph (1) of this
subsection shall not be applicable to a person who is a
conspirator with an entity actively involved in the creation or
knowing distribution of communications that violate this
section, or who knowingly advertises the availability of such
communications.
`(3) The defenses provided in paragraph (1) of this
subsection shall not be applicable to a person who provides
access or connection to a facility, system, or network engaged
in the violation of this section that is owned or controlled by
such person.
`(4) No employer shall be held liable under this section for
the actions of an employee or agent unless the employee's or
agent's conduct is within the scope of his or her employment or
agency and the employer (A) having knowledge of such conduct,
authorizes or ratifies such conduct, or (B) recklessly
disregards such conduct.
`(5) It is a defense to a prosecution under subsection
(a)(1)(B) or (d), or under subsection (a)(2) with respect to
the use of a facility for an activity under subsection
(a)(1)(B) that a person--
`(A) has taken, in good faith, reasonable, effective, and
appropriate actions under the circumstances to restrict or
prevent access by minors to a communication specified in
such subsections, which may involve any appropriate
measures to restrict minors from such communications,
including any method which is feasible under available
technology; or
`(B) has restricted access to such communication by
requiring use of a verified credit card, debit account,
adult access code, or adult personal identification number.
`(6) The Commission may describe measures which are
reasonable, effective, and appropriate to restrict access to
prohibited communications under subsection (d). Nothing in this
section authorizes the Commission to enforce, or is intended to
provide the Commission with the authority to approve, sanction,
or permit, the use of such measures. The Commission shall have
no enforcement authority over the failure to utilize such
measures. The Commission shall not endorse specific products
relating to such measures. The use of such measures shall be
admitted as evidence of good faith efforts for purposes of
paragraph (5) in any action arising under subsection (d).
Nothing in this section shall be construed to treat interactive
computer services as common carriers or telecommunications
carriers.
`(f)(1) No cause of action may be brought in any court or
administrative agency against any person on account of any activity
that is not in violation of any law punishable by criminal or civil
penalty, and that the person has taken in good faith to implement a
defense authorized under this section or otherwise to restrict or
prevent the transmission of, or access to, a communication
specified in this section.
`(2) No State or local government may impose any liability for
commercial activities or actions by commercial entities, nonprofit
libraries, or institutions of higher education in connection with
an activity or action described in subsection (a)(2) or (d) that is
inconsistent with the treatment of those activities or actions
under this section: [Italic->] Provided, however [<-Italic] , That
nothing herein shall preclude any State or local government from
enacting and enforcing complementary oversight, liability, and
regulatory systems, procedures, and requirements, so long as such
systems, procedures, and requirements govern only intrastate
services and do not result in the imposition of inconsistent
rights, duties or obligations on the provision of interstate
services. Nothing in this subsection shall preclude any State or
local government from governing conduct not covered by this section.
`(g) Nothing in subsection (a), (d), (e), or (f) or in the
defenses to prosecution under subsection (a) or (d) shall be
construed to affect or limit the application or enforcement of any
other Federal law.
`(h) For purposes of this section--
`(1) The use of the term `telecommunications device' in this
section--
`(A) shall not impose new obligations on broadcasting
station licensees and cable operators covered by obscenity
and indecency provisions elsewhere in this Act; and
`(B) does not include an interactive computer service.
`(2) The term `interactive computer service' has the meaning
provided in section 230(e)(2).
`(3) The term `access software' means software (including
client or server software) or enabling tools that do not create
or provide the content of the communication but that allow a
user to do any one or more of the following:
`(A) filter, screen, allow, or disallow content;
`(B) pick, choose, analyze, or digest content; or
`(C) transmit, receive, display, forward, cache, search,
subset, organize, reorganize, or translate content.
`(4) The term `institution of higher education' has the
meaning provided in section 1201 of the Higher Education Act of
1965 (20 U.S.C. 1141).
`(5) The term `library' means a library eligible for
participation in State-based plans for funds under title III of
the Library Services and Construction Act (20 U.S.C. 355e et
seq.).'.
SEC. 503. OBSCENE PROGRAMMING ON CABLE TELEVISION.
Section 639 (47 U.S.C. 559) is amended by striking `not more than
$10,000' and inserting `under title 18, United States Code,'.
SEC. 504. SCRAMBLING OF CABLE CHANNELS FOR NONSUBSCRIBERS.
Part IV of title VI (47 U.S.C. 551 et seq.) is amended by adding
at the end the following:
`SEC. 640. SCRAMBLING OF CABLE CHANNELS FOR NONSUBSCRIBERS.
`(a) SUBSCRIBER REQUEST- Upon request by a cable service
subscriber, a cable operator shall, without charge, fully scramble
or otherwise fully block the audio and video programming of each
channel carrying such programming so that one not a subscriber does
not receive it.
`(b) DEFINITION- As used in this section, the term `scramble'
means to rearrange the content of the signal of the programming so
that the programming cannot be viewed or heard in an understandable
manner.'.
SEC. 505. SCRAMBLING OF SEXUALLY EXPLICIT ADULT VIDEO SERVICE
PROGRAMMING.
(a) REQUIREMENT- Part IV of title VI (47 U.S.C. 551 et seq.), as
amended by this Act, is further amended by adding at the end the
following:
`SEC. 641. SCRAMBLING OF SEXUALLY EXPLICIT ADULT VIDEO SERVICE
PROGRAMMING.
`(a) REQUIREMENT- In providing sexually explicit adult
programming or other programming that is indecent on any channel of
its service primarily dedicated to sexually-oriented programming, a
multichannel video programming distributor shall fully scramble or
otherwise fully block the video and audio portion of such channel
so that one not a subscriber to such channel or programming does
not receive it.
`(b) IMPLEMENTATION- Until a multichannel video programming
distributor complies with the requirement set forth in subsection
(a), the distributor shall limit the access of children to the
programming referred to in that subsection by not providing such
programming during the hours of the day (as determined by the
Commission) when a significant number of children are likely to
view it.
`(c) DEFINITION- As used in this section, the term `scramble'
means to rearrange the content of the signal of the programming so
that the programming cannot be viewed or heard in an understandable
manner.'.
(b) EFFECTIVE DATE- The amendment made by subsection (a) shall
take effect 30 days after the date of enactment of this Act.
SEC. 506. CABLE OPERATOR REFUSAL TO CARRY CERTAIN PROGRAMS.
(a) PUBLIC, EDUCATIONAL, AND GOVERNMENTAL CHANNELS- Section
611(e) (47 U.S.C. 531(e)) is amended by inserting before the period
the following: `, except a cable operator may refuse to transmit
any public access program or portion of a public access program
which contains obscenity, indecency, or nudity'.
(b) CABLE CHANNELS FOR COMMERCIAL USE- Section 612(c)(2) (47
U.S.C. 532(c)(2)) is amended by striking `an operator' and
inserting `a cable operator may refuse to transmit any leased
access program or portion of a leased access program which contains
obscenity, indecency, or nudity and'.
SEC. 507. CLARIFICATION OF CURRENT LAWS REGARDING COMMUNICATION OF
OBSCENE MATERIALS THROUGH THE USE OF COMPUTERS.
(a) IMPORTATION OR TRANSPORTATION- Section 1462 of title 18,
United States Code, is amended--
(1) in the first undesignated paragraph, by inserting `or
interactive computer service (as defined in section 230(e)(2)
of the Communications Act of 1934)' after `carrier'; and
(2) in the second undesignated paragraph--
(A) by inserting `or receives,' after `takes';
(B) by inserting `or interactive computer service (as
defined in section 230(e)(2) of the Communications Act of
1934)' after `common carrier'; and
(C) by inserting `or importation' after `carriage'.
(b) TRANSPORTATION FOR PURPOSES OF SALE OR DISTRIBUTION- The
first undesignated paragraph of section 1465 of title 18, United
States Code, is amended--
(1) by striking `transports in' and inserting `transports or
travels in, or uses a facility or means of,';
(2) by inserting `or an interactive computer service (as
defined in section 230(e)(2) of the Communications Act of 1934)
in or affecting such commerce' after `foreign commerce' the
first place it appears;
(3) by striking `, or knowingly travels in' and all that
follows through `obscene material in interstate or foreign
commerce,' and inserting `of'.
(c) INTERPRETATION- The amendments made by this section are
clarifying and shall not be interpreted to limit or repeal any
prohibition contained in sections 1462 and 1465 of title 18, United
States Code, before such amendment, under the rule established in
United States v. Alpers, 338 U.S. 680 (1950).
SEC. 508. COERCION AND ENTICEMENT OF MINORS.
Section 2422 of title 18, United States Code, is amended--
(1) by inserting `(a)' before `Whoever knowingly'; and
(2) by adding at the end the following:
`(b) Whoever, using any facility or means of interstate or
foreign commerce, including the mail, or within the special
maritime and territorial jurisdiction of the United States,
knowingly persuades, induces, entices, or coerces any individual
who has not attained the age of 18 years to engage in prostitution
or any sexual act for which any person may be criminally
prosecuted, or attempts to do so, shall be fined under this title
or imprisoned not more than 10 years, or both.'.
SEC. 509. 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.
`(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--
`(1) to promote the continued development of the Internet and
other interactive computer services and other interactive media;
`(2) to preserve the vibrant and competitive free market that
presently exists for the Internet and other interactive
computer services, unfettered by Federal or State regulation;
`(3) to encourage the development of technologies which
maximize user control over what information is received by
individuals, families, and schools who use the Internet and
other interactive computer services;
`(4) to 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) to ensure vigorous enforcement of Federal 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-
`(1) TREATMENT OF PUBLISHER OR SPEAKER- No provider or user
of an interactive computer service shall be treated as the
publisher or speaker of any information provided by another
information content provider.
`(2) CIVIL LIABILITY- No provider or user of an interactive
computer service shall be held liable on account of--
`(A) any action voluntarily taken in good faith to
restrict access to or availability of 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
`(B) any action taken to enable or make available to
information content providers or others the technical means
to restrict access to material described in paragraph (1).
`(d) 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) STATE LAW- Nothing in this section shall be construed to
prevent any State from enforcing any State law that is
consistent with this section. No cause of action may be brought
and no liability may be imposed under any State or local law
that is inconsistent with this section.
`(4) NO EFFECT ON COMMUNICATIONS PRIVACY LAW- Nothing in this
section shall be construed to limit the application of the
Electronic Communications Privacy Act of 1986 or any of the
amendments made by such Act, or any similar State law.
`(e) 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, system, or
access software provider that provides or enables computer
access by multiple users to a computer server, including
specifically a service or system that provides access to the
Internet and such systems operated or services offered by
libraries or educational institutions.
`(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 through the Internet or any
other interactive computer service.
`(4) ACCESS SOFTWARE PROVIDER- The term `access software
provider' means a provider of software (including client or
server software), or enabling tools that do any one or more of
the following:
`(A) filter, screen, allow, or disallow content;
`(B) pick, choose, analyze, or digest content; or
`(C) transmit, receive, display, forward, cache, search,
subset, organize, reorganize, or translate content.'.
SUBTITLE B--VIOLENCE
SEC. 551. 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 than children not so
exposed, and that children exposed to violent video programming
are prone to assume that acts of violence are acceptable
behavior.
(5) Children in the United States are, on average, exposed to
an estimated 8,000 murders and 100,000 acts of violence on
television by the time the child completes elementary school.
(6) Studies indicate that children are affected by the
pervasiveness and casual treatment of sexual material on
television, eroding the ability of parents to develop
responsible attitudes and behavior in their children.
(7) Parents express grave concern over violent and sexual
video programming and strongly support technology that would
give them greater control to block video programming in the
home that they consider harmful to their children.
(8) There is a compelling governmental interest in empowering
parents to limit the negative influences of video programming
that is harmful to children.
(9) Providing parents with timely information about the
nature of upcoming video programming and with the technological
tools that allow them easily to block violent, sexual, or other
programming that they believe harmful to their children is a
nonintrusive and narrowly tailored means of achieving that
compelling governmental interest.
(b) ESTABLISHMENT OF TELEVISION RATING CODE-
(1) AMENDMENT- Section 303 (47 U.S.C. 303) is amended by
adding at the end the following:
`(w) Prescribe--
`(1) on the basis of recommendations from an advisory
committee established by the Commission in accordance with
section 551(b)(2) of the Telecommunications Act of 1996,
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: [Italic->]
Provided, [<-Italic] 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, and in consultation with the television industry, 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.'.
(2) ADVISORY COMMITTEE REQUIREMENTS- In establishing an
advisory committee for purposes of the amendment made by
paragraph (1) of this subsection, the Commission shall--
(A) ensure that such committee is composed of parents,
television broadcasters, television programming producers,
cable operators, appropriate public interest groups, and
other interested individuals from the private sector and is
fairly balanced in terms of political affiliation, the
points of view represented, and the functions to be
performed by the committee;
(B) provide to the committee such staff and resources as
may be necessary to permit it to perform its functions
efficiently and promptly; and
(C) require the committee to submit a final report of its
recommendations within one year after the date of the
appointment of the initial members.
(c) REQUIREMENT FOR MANUFACTURE OF TELEVISIONS THAT BLOCK
PROGRAMS- Section 303 (47 U.S.C. 303), as amended by subsection
(a), is further amended by adding at the end the following:
`(x) Require, in the case of an apparatus designed to receive
television signals that are shipped in interstate commerce or
manufactured in the United States and that have a picture screen 13
inches or greater in size (measured diagonally), that such
apparatus be equipped with a feature 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 OF TELEVISIONS THAT BLOCK PROGRAMS-
(1) REGULATIONS- Section 330 (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 or manufacture in the United States any
apparatus described in section 303(x) 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 in 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(x) 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), as redesignated by
subsection (d)(1)(A), is amended by striking `section 303(s),
and section 303(u)' and inserting in lieu thereof `and sections
303(s), 303(u), and 303(x)'.
(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 two years after the date of enactment of this Act.
SEC. 552. TECHNOLOGY FUND.
It is the policy of the United States to 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--
(1) 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 and to
encourage the availability thereof to low income parents;
(2) report to the viewing public on the status of the
development of affordable, easy to use blocking technology; and
(3) 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 to
encourage the availability thereof to low income parents.
SUBTITLE C--JUDICIAL REVIEW
SEC. 561. EXPEDITED REVIEW.
(a) THREE-JUDGE DISTRICT COURT HEARING- Notwithstanding any other
provision of law, any civil action challenging the
constitutionality, on its face, of this title or any amendment made
by this title, or any provision thereof, shall be heard by a
district court of 3 judges convened pursuant to the provisions of
section 2284 of title 28, United States Code.
(b) APPELLATE REVIEW- Notwithstanding any other provision of law,
an interlocutory or final judgment, decree, or order of the court
of 3 judges in an action under subsection (a) holding this title or
an amendment made by this title, or any provision thereof,
unconstitutional shall be reviewable as a matter of right by direct
appeal to the Supreme Court. Any such appeal shall be filed not
more than 20 days after entry of such judgment, decree, or order.
TITLE VI--EFFECT ON OTHER LAWS
SEC. 601. APPLICABILITY OF CONSENT DECREES AND OTHER LAW.
(a) APPLICABILITY OF AMENDMENTS TO FUTURE CONDUCT-
(1) AT&T CONSENT DECREE- Any conduct or activity that was,
before the date of enactment of this Act, subject to any
restriction or obligation imposed by the AT&T Consent Decree
shall, on and after such date, be subject to the restrictions
and obligations imposed by the Communications Act of 1934 as
amended by this Act and shall not be subject to the
restrictions and the obligations imposed by such Consent Decree.
(2) GTE CONSENT DECREE- Any conduct or activity that was,
before the date of enactment of this Act, subject to any
restriction or obligation imposed by the GTE Consent Decree
shall, on and after such date, be subject to the restrictions
and obligations imposed by the Communications Act of 1934 as
amended by this Act and shall not be subject to the
restrictions and the obligations imposed by such Consent Decree.
(3) MCCAW CONSENT DECREE- Any conduct or activity that was,
before the date of enactment of this Act, subject to any
restriction or obligation imposed by the McCaw Consent Decree
shall, on and after such date, be subject to the restrictions
and obligations imposed by the Communications Act of 1934 as
amended by this Act and subsection (d) of this section and
shall not be subject to the restrictions and the obligations
imposed by such Consent Decree.
(b) ANTITRUST LAWS-
(1) SAVINGS CLAUSE- Except as provided in paragraphs (2) and
(3), nothing in this Act or the amendments made by this Act
shall be construed to modify, impair, or supersede the
applicability of any of the antitrust laws.
(2) REPEAL- Subsection (a) of section 221 (47 U.S.C. 221(a))
is repealed.
(3) CLAYTON ACT- Section 7 of the Clayton Act (15 U.S.C. 18)
is amended in the last paragraph by striking `Federal
Communications Commission,'.
(c) FEDERAL, STATE, AND LOCAL LAW-
(1) NO IMPLIED EFFECT- This Act and the amendments made by
this Act shall not be construed to modify, impair, or supersede
Federal, State, or local law unless expressly so provided in
such Act or amendments.
(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 622 and 653(c) of the Communications Act of 1934
and section 602 of this Act.
(d) 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, a Bell operating company or any
other company may, except as provided in sections 271(e)(1) and 272
of the Communications Act of 1934 as amended by this Act 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.
(e) DEFINITIONS- As used in this section:
(1) AT&T CONSENT DECREE- The term `AT&T Consent Decree' means
the order entered August 24, 1982, in the antitrust action
styled United States v. Western Electric, Civil Action No.
82-0192, in the United States District Court for the District
of Columbia, and includes any judgment or order with respect to
such action entered on or after August 24, 1982.
(2) GTE CONSENT DECREE- The term `GTE Consent Decree' means
the order entered December 21, 1984, 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.
(3) MCCAW CONSENT DECREE- The term `McCaw Consent Decree'
means the proposed consent decree filed on July 15, 1994, in
the antitrust action styled United States v. AT&T Corp. and
McCaw Cellular Communications, Inc., Civil Action No. 94-01555,
in the United States District Court for the District of
Columbia. Such term includes any stipulation that the parties
will abide by the terms of such proposed consent decree until
it is entered and any order entering such proposed consent
decree.
(4) ANTITRUST LAWS- The term `antitrust laws' has the meaning
given it in subsection (a) of the first section of the Clayton
Act (15 U.S.C. 12(a)), except that such term includes the Act
of June 19, 1936 (49 Stat. 1526; 15 U.S.C. 13 et seq.),
commonly known as the Robinson-Patman Act, and section 5 of the
Federal Trade Commission Act (15 U.S.C. 45) to the extent that
such section 5 applies to unfair methods of competition.
SEC. 602. PREEMPTION OF LOCAL TAXATION WITH RESPECT TO
DIRECT-TO-HOME SERVICES.
(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 on
direct-to-home satellite service.
(b) DEFINITIONS- For the purposes of this section--
(1) DIRECT-TO-HOME SATELLITE SERVICE- The term
`direct-to-home satellite service' means only programming
transmitted or broadcast by satellite 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.
TITLE VII--MISCELLANEOUS PROVISIONS
SEC. 701. PREVENTION OF UNFAIR BILLING PRACTICES FOR INFORMATION OR
SERVICES PROVIDED OVER TOLL-FREE TELEPHONE CALLS.
(a) PREVENTION OF UNFAIR BILLING PRACTICES-
(1) IN GENERAL- Section 228(c) (47 U.S.C. 228(c)) is amended--
(A) by striking out subparagraph (C) of paragraph (7) and
inserting in lieu thereof the following:
`(C) the calling party being charged for information
conveyed during the call unless--
`(i) the calling party has a written agreement
(including an agreement transmitted through electronic
medium) that meets the requirements of paragraph (8); or
`(ii) the calling party is charged for the
information in accordance with paragraph (9); or';
(B)(i) by striking `or' at the end of subparagraph (C) of
such paragraph;
(ii) by striking the period at the end of subparagraph
(D) of such paragraph and inserting a semicolon and `or'; and
(iii) by adding at the end thereof the following:
`(E) the calling party being assessed, by virtue of being
asked to connect or otherwise transfer to a pay-per-call
service, a charge for the call.'; and
(C) by adding at the end the following new paragraphs:
`(8) SUBSCRIPTION AGREEMENTS FOR BILLING FOR INFORMATION
PROVIDED VIA TOLL-FREE CALLS-
`(A) IN GENERAL- For purposes of paragraph (7)(C)(i), a
written subscription does not meet the requirements of this
paragraph unless the agreement specifies the material terms
and conditions under which the information is offered and
includes--
`(i) the rate at which charges are assessed for the
information;
`(ii) the information provider's name;
`(iii) the information provider's business address;
`(iv) the information provider's regular business
telephone number;
`(v) the information provider's agreement to notify
the subscriber at least one billing cycle in advance of
all future changes in the rates charged for the
information; and
`(vi) the subscriber's choice of payment method,
which may be by direct remit, debit, prepaid account,
phone bill, or credit or calling card.
`(B) BILLING ARRANGEMENTS- If a subscriber elects,
pursuant to subparagraph (A)(vi), to pay by means of a
phone bill--
`(i) the agreement shall clearly explain that the
subscriber will be assessed for calls made to the
information service from the subscriber's phone line;
`(ii) the phone bill shall include, in prominent
type, the following disclaimer:
`Common carriers may not disconnect local or long distance
telephone service for failure to pay disputed charges for
information services.'; and
`(iii) the phone bill shall clearly list the 800
number dialed.
`(C) USE OF PINS TO PREVENT UNAUTHORIZED USE- A written
agreement does not meet the requirements of this paragraph
unless it--
`(i) includes a unique personal identification number
or other subscriber-specific identifier and requires a
subscriber to use this number or identifier to obtain
access to the information provided and includes
instructions on its use; and
`(ii) assures that any charges for services accessed
by use of the subscriber's personal identification
number or subscriber-specific identifier be assessed to
subscriber's source of payment elected pursuant to
subparagraph (A)(vi).
`(D) EXCEPTIONS- Notwithstanding paragraph (7)(C), a
written agreement that meets the requirements of this
paragraph is not required--
`(i) for calls utilizing telecommunications devices
for the deaf;
`(ii) for directory services provided by a common
carrier or its affiliate or by a local exchange carrier
or its affiliate; or
`(iii) for any purchase of goods or of services that
are not information services.
`(E) TERMINATION OF SERVICE- On receipt by a common
carrier of a complaint by any person that an information
provider is in violation of the provisions of this section,
a carrier shall--
`(i) promptly investigate the complaint; and
`(ii) if the carrier reasonably determines that the
complaint is valid, it may terminate the provision of
service to an information provider unless the provider
supplies evidence of a written agreement that meets the
requirements of this section.
`(F) TREATMENT OF REMEDIES- The remedies provided in this
paragraph are in addition to any other remedies that are
available under title V of this Act.
`(9) CHARGES BY CREDIT, PREPAID, DEBIT, CHARGE, OR CALLING
CARD IN ABSENCE OF AGREEMENT- For purposes of paragraph
(7)(C)(ii), a calling party is not charged in accordance with
this paragraph unless the calling party is charged by means of
a credit, prepaid, debit, charge, or calling card and the
information service provider includes in response to each call
an introductory disclosure message that--
`(A) clearly states that there is a charge for the call;
`(B) clearly states the service's total cost per minute
and any other fees for the service or for any service to
which the caller may be transferred;
`(C) explains that the charges must be billed on either a
credit, prepaid, debit, charge, or calling card;
`(D) asks the caller for the card number;
`(E) clearly states that charges for the call begin at
the end of the introductory message; and
`(F) clearly states that the caller can hang up at or
before the end of the introductory message without
incurring any charge whatsoever.
`(10) BYPASS OF INTRODUCTORY DISCLOSURE MESSAGE- The
requirements of paragraph (9) shall not apply to calls from
repeat callers using a bypass mechanism to avoid listening to
the introductory message: [Italic->] Provided, [<-Italic]
That information providers shall disable such a bypass
mechanism after the institution of any price increase and for a
period of time determined to be sufficient by the Federal Trade
Commission to give callers adequate and sufficient notice of a
price increase.
`(11) DEFINITION OF CALLING CARD- As used in this subsection,
the term `calling card' means an identifying number or code
unique to the individual, that is issued to the individual by a
common carrier and enables the individual to be charged by
means of a phone bill for charges incurred independent of where
the call originates.'.
(2) REGULATIONS- The Federal Communications Commission shall
revise its regulations to comply with the amendment made by
paragraph (1) not later than 180 days after the date of
enactment of this Act.
(3) EFFECTIVE DATE- The amendments made by paragraph (1)
shall take effect on the date of enactment of this Act.
(b) CLARIFICATION OF `PAY-PER-CALL SERVICES'-
(1) TELEPHONE DISCLOSURE AND DISPUTE RESOLUTION ACT- Section
204(1) of the Telephone Disclosure and Dispute Resolution Act
(15 U.S.C. 5714(1)) is amended to read as follows:
`(1) The term `pay-per-call services' has the meaning
provided in section 228(i) of the Communications Act of 1934,
except that the Commission by rule may, notwithstanding
subparagraphs (B) and (C) of section 228(i)(1) of such Act,
extend such definition to other similar services providing
audio information or audio entertainment if the Commission
determines that such services are susceptible to the unfair and
deceptive practices that are prohibited by the rules prescribed
pursuant to section 201(a).'.
(2) COMMUNICATIONS ACT- Section 228(i)(2) (47 U.S.C.
228(i)(2)) is amended by striking `or any service the charge
for which is tariffed,'.
SEC. 702. PRIVACY OF CUSTOMER INFORMATION.
Title II is amended by inserting after section 221 (47 U.S.C.
221) the following new section:
`SEC. 222. PRIVACY OF CUSTOMER INFORMATION.
`(a) IN GENERAL- Every telecommunications carrier has a duty to
protect the confidentiality of proprietary information of, and
relating to, other telecommunication carriers, equipment
manufacturers, and customers, including telecommunication carriers
reselling telecommunications services provided by a
telecommunications carrier.
`(b) CONFIDENTIALITY OF CARRIER INFORMATION- A telecommunications
carrier that receives or obtains proprietary information from
another carrier for purposes of providing any telecommunications
service shall use such information only for such purpose, and shall
not use such information for its own marketing efforts.
`(c) CONFIDENTIALITY OF CUSTOMER PROPRIETARY NETWORK INFORMATION-
`(1) PRIVACY REQUIREMENTS FOR TELECOMMUNICATIONS CARRIERS-
Except as required by law or with the approval of the customer,
a telecommunications carrier that receives or obtains customer
proprietary network information by virtue of its provision of a
telecommunications service shall only use, disclose, or permit
access to individually identifiable customer proprietary
network information in its provision of (A) the
telecommunications service from which such information is
derived, or (B) services necessary to, or used in, the
provision of such telecommunications service, including the
publishing of directories.
`(2) DISCLOSURE ON REQUEST BY CUSTOMERS- A telecommunications
carrier shall disclose customer proprietary network
information, upon affirmative written request by the customer,
to any person designated by the customer.
`(3) AGGREGATE CUSTOMER INFORMATION- A telecommunications
carrier that receives or obtains customer proprietary network
information by virtue of its provision of a telecommunications
service may use, disclose, or permit access to aggregate
customer information other than for the purposes described in
paragraph (1). A local exchange carrier may use, disclose, or
permit access to aggregate customer information other than for
purposes described in paragraph (1) only if it provides such
aggregate information to other carriers or persons on
reasonable and nondiscriminatory terms and conditions upon
reasonable request therefor.
`(d) EXCEPTIONS- Nothing in this section prohibits a
telecommunications carrier from using, disclosing, or permitting
access to customer proprietary network information obtained from
its customers, either directly or indirectly through its agents--
`(1) to initiate, render, bill, and collect for
telecommunications services;
`(2) to protect the rights or property of the carrier, or to
protect users of those services and other carriers from
fraudulent, abusive, or unlawful use of, or subscription to,
such services; or
`(3) to provide any inbound telemarketing, referral, or
administrative services to the customer for the duration of the
call, if such call was initiated by the customer and the
customer approves of the use of such information to provide
such service.
`(e) SUBSCRIBER LIST INFORMATION- Notwithstanding subsections
(b), (c), and (d), a telecommunications carrier that provides
telephone exchange service shall provide subscriber list
information gathered in its capacity as a provider of such service
on a timely and unbundled basis, under nondiscriminatory and
reasonable rates, terms, and conditions, to any person upon request
for the purpose of publishing directories in any format.
`(f) DEFINITIONS- As used in this section:
`(1) CUSTOMER PROPRIETARY NETWORK INFORMATION- The term
`customer proprietary network information' means--
`(A) information that relates to the quantity, technical
configuration, type, destination, and amount of use of a
telecommunications service subscribed to by any customer of
a telecommunications carrier, and that is made available to
the carrier by the customer solely by virtue of the
carrier-customer relationship; and
`(B) information contained in the bills pertaining to
telephone exchange service or telephone toll service
received by a customer of a carrier;
except that such term does not include subscriber list
information.
`(2) AGGREGATE INFORMATION- The term `aggregate customer
information' means collective data that relates to a group or
category of services or customers, from which individual
customer identities and characteristics have been removed.
`(3) SUBSCRIBER LIST INFORMATION- The term `subscriber list
information' means any information--
`(A) identifying the listed names of subscribers of a
carrier and such subscribers' telephone numbers, addresses,
or primary advertising classifications (as such
classifications are assigned at the time of the
establishment of such service), or any combination of such
listed names, numbers, addresses, or classifications; and
`(B) that the carrier or an affiliate has published,
caused to be published, or accepted for publication in any
directory format.'.
SEC. 703. POLE ATTACHMENTS.
Section 224 (47 U.S.C. 224) is amended--
(1) in subsection (a)(1), by striking the first sentence and
inserting the following: `The term `utility' means any person
who is a local exchange carrier or an electric, gas, water,
steam, or other public utility, and who owns or controls poles,
ducts, conduits, or rights-of-way used, in whole or in part,
for any wire communications.';
(2) in subsection (a)(4), by inserting after `system' the
following: `or provider of telecommunications service';
(3) by inserting after subsection (a)(4) the following:
`(5) For purposes of this section, the term
`telecommunications carrier' (as defined in section 3 of this
Act) does not include any incumbent local exchange carrier as
defined in section 251(h).';
(4) by inserting after `conditions' in subsection (c)(1) a
comma and the following: `or access to poles, ducts, conduits,
and rights-of-way as provided in subsection (f),';
(5) in subsection (c)(2)(B), by striking `cable television
services' and inserting `the services offered via such
attachments';
(6) by inserting after subsection (d)(2) the following:
`(3) This subsection shall apply to the rate for any pole
attachment used by a cable television system solely to provide
cable service. Until the effective date of the regulations required
under subsection (e), this subsection shall also apply to the rate
for any pole attachment used by a cable system or any
telecommunications carrier (to the extent such carrier is not a
party to a pole attachment agreement) to provide any
telecommunications service.'; and
(7) by adding at the end thereof the following:
`(e)(1) The Commission shall, no later than 2 years after the
date of enactment of the Telecommunications Act of 1996, prescribe
regulations in accordance with this subsection to govern the
charges for pole attachments used by telecommunications carriers to
provide telecommunications services, when the parties fail to
resolve a dispute over such charges. Such regulations shall ensure
that a utility charges just, reasonable, and nondiscriminatory
rates for pole attachments.
`(2) A utility shall apportion the cost of providing space on a
pole, duct, conduit, or right-of-way other than the usable space
among entities so that such apportionment equals two-thirds of the
costs of providing space other than the usable space that would be
allocated to such entity under an equal apportionment of such costs
among all attaching entities.
`(3) A utility shall apportion the cost of providing usable space
among all entities according to the percentage of usable space
required for each entity.
`(4) The regulations required under paragraph (1) shall become
effective 5 years after the date of enactment of the
Telecommunications Act of 1996. Any increase in the rates for pole
attachments that result from the adoption of the regulations
required by this subsection shall be phased in equal annual
increments over a period of 5 years beginning on the effective date
of such regulations.
`(f)(1) A utility shall provide a cable television system or any
telecommunications carrier with nondiscriminatory access to any
pole, duct, conduit, or right-of-way owned or controlled by it.
`(2) Notwithstanding paragraph (1), a utility providing electric
service may deny a cable television system or any
telecommunications carrier access to its poles, ducts, conduits, or
rights-of-way, on a non-discriminatory basis where there is
insufficient capacity and for reasons of safety, reliability and
generally applicable engineering purposes.
`(g) A utility that engages in the provision of
telecommunications services or cable services shall impute to its
costs of providing such services (and charge any affiliate,
subsidiary, or associate company engaged in the provision of such
services) an equal amount to the pole attachment rate for which
such company would be liable under this section.
`(h) Whenever the owner of a pole, duct, conduit, or right-of-way
intends to modify or alter such pole, duct, conduit, or
right-of-way, the owner shall provide written notification of such
action to any entity that has obtained an attachment to such
conduit or right-of-way so that such entity may have a reasonable
opportunity to add to or modify its existing attachment. Any entity
that adds to or modifies its existing attachment after receiving
such notification shall bear a proportionate share of the costs
incurred by the owner in making such pole, duct, conduit, or
right-of-way accessible.
`(i) An entity that obtains an attachment to a pole, conduit, or
right-of-way shall not be required to bear any of the costs of
rearranging or replacing its attachment, if such rearrangement or
replacement is required as a result of an additional attachment or
the modification of an existing attachment sought by any other
entity (including the owner of such pole, duct, conduit, or
right-of-way).'.
SEC. 704. FACILITIES SITING; RADIO FREQUENCY EMISSION STANDARDS.
(a) NATIONAL WIRELESS TELECOMMUNICATIONS SITING POLICY- Section
332(c) (47 U.S.C. 332(c)) is amended by adding at the end the
following new paragraph:
`(7) PRESERVATION OF LOCAL ZONING AUTHORITY-
`(A) GENERAL AUTHORITY- Except as provided in this
paragraph, nothing in this Act shall limit or affect the
authority of a State or local government or instrumentality
thereof over decisions regarding the placement,
construction, and modification of personal wireless service
facilities.
`(B) LIMITATIONS-
`(i) The regulation of the placement, construction,
and modification of personal wireless service
facilities by any State or local government or
instrumentality thereof--
`(I) shall not unreasonably discriminate among providers of
functionally equivalent services; and
`(II) shall not prohibit or have the effect of prohibiting the
provision of personal wireless services.
`(ii) A State or local government or instrumentality
thereof shall act on any request for authorization to
place, construct, or modify personal wireless service
facilities within a reasonable period of time after the
request is duly filed with such government or
instrumentality, taking into account the nature and
scope of such request.
`(iii) Any decision by a State or local government or
instrumentality thereof to deny a request to place,
construct, or modify personal wireless service
facilities shall be in writing and supported by
substantial evidence contained in a written record.
`(iv) No State or local government or instrumentality
thereof may regulate the placement, construction, and
modification of personal wireless service 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.
`(v) Any person adversely affected by any final
action or failure to act by a State or local government
or any instrumentality thereof that is inconsistent
with this subparagraph may, within 30 days after such
action or failure to act, commence an action in any
court of competent jurisdiction. The court shall hear
and decide such action on an expedited basis. Any
person adversely affected by an act or failure to act
by a State or local government or any instrumentality
thereof that is inconsistent with clause (iv) may
petition the Commission for relief.
`(C) DEFINITIONS- For purposes of this paragraph--
`(i) the term `personal wireless services' means
commercial mobile services, unlicensed wireless
services, and common carrier wireless exchange access
services;
`(ii) the term `personal wireless service facilities'
means facilities for the provision of personal wireless
services; and
`(iii) the term `unlicensed wireless service' means
the offering of telecommunications services using duly
authorized devices which do not require individual
licenses, but does not mean the provision of
direct-to-home satellite services (as defined in
section 303(v)).'.
(b) RADIO FREQUENCY EMISSIONS- Within 180 days after the
enactment of this Act, the Commission shall complete action in ET
Docket 93-62 to prescribe and make effective rules regarding the
environmental effects of radio frequency emissions.
(c) AVAILABILITY OF PROPERTY- Within 180 days of the enactment of
this Act, the President or his designee shall prescribe procedures
by which Federal departments and agencies may make available on a
fair, reasonable, and nondiscriminatory basis, property,
rights-of-way, and easements under their control for the placement
of new telecommunications services that are dependent, in whole or
in part, upon the utilization of Federal spectrum rights for the
transmission or reception of such services. These procedures may
establish a presumption that requests for the use of property,
rights-of-way, and easements by duly authorized providers should be
granted absent unavoidable direct conflict with the department or
agency's mission, or the current or planned use of the property,
rights-of-way, and easements in question. Reasonable fees may be
charged to providers of such telecommunications services for use of
property, rights-of-way, and easements. The Commission shall
provide technical support to States to encourage them to make
property, rights-of-way, and easements under their jurisdiction
available for such purposes.
SEC. 705. MOBILE SERVICES DIRECT ACCESS TO LONG DISTANCE CARRIERS.
Section 332(c) (47 U.S.C. 332(c)) is amended by adding at the end
the following new paragraph:
`(8) MOBILE SERVICES ACCESS- A person engaged in the
provision of commercial mobile services, insofar as such person
is so engaged, shall not be required to provide equal access to
common carriers for the provision of telephone toll services.
If the Commission determines that subscribers to such services
are denied access to the provider of telephone toll services of
the subscribers' choice, and that such denial is contrary to
the public interest, convenience, and necessity, then the
Commission shall prescribe regulations to afford subscribers
unblocked access to the provider of telephone toll services of
the subscribers' choice through the use of a carrier
identification code assigned to such provider or other
mechanism. The requirements for unblocking shall not apply to
mobile satellite services unless the Commission finds it to be
in the public interest to apply such requirements to such
services.'.
SEC. 706. ADVANCED TELECOMMUNICATIONS INCENTIVES.
(a) IN GENERAL- The Commission and each State commission with
regulatory jurisdiction over telecommunications services shall
encourage the deployment on a reasonable and timely basis of
advanced telecommunications capability to all Americans (including,
in particular, elementary and secondary schools and classrooms) by
utilizing, in a manner consistent with the public interest,
convenience, and necessity, price cap regulation, regulatory
forbearance, measures that promote competition in the local
telecommunications market, or other regulating methods that remove
barriers to infrastructure investment.
(b) INQUIRY- The Commission shall, within 30 months after the
date of enactment of this Act, and regularly thereafter, initiate a
notice of inquiry concerning the availability of advanced
telecommunications capability to all Americans (including, in
particular, elementary and secondary schools and classrooms) and
shall complete the inquiry within 180 days after its initiation. In
the inquiry, the Commission shall determine whether advanced
telecommunications capability is being deployed to all Americans in
a reasonable and timely fashion. If the Commission's determination
is negative, it shall take immediate action to accelerate
deployment of such capability by removing barriers to
infrastructure investment and by promoting competition in the
telecommunications market.
(c) DEFINITIONS- For purposes of this subsection:
(1) ADVANCED TELECOMMUNICATIONS CAPABILITY- The term
`advanced telecommunications capability' is defined, without
regard to any transmission media or technology, as high-speed,
switched, broadband telecommunications capability that enables
users to originate and receive high-quality voice, data,
graphics, and video telecommunications using any technology.
(2) ELEMENTARY AND SECONDARY SCHOOLS- The term `elementary
and secondary schools' means elementary and secondary schools,
as defined in paragraphs (14) and (25), respectively, of
section 14101 of the Elementary and Secondary Education Act of
1965 (20 U.S.C. 8801).
SEC. 707. TELECOMMUNICATIONS DEVELOPMENT FUND.
(a) DEPOSIT AND USE OF AUCTION ESCROW ACCOUNTS- Section 309(j)(8)
(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 714 of this Act.'.
(b) ESTABLISHMENT AND OPERATION OF FUND- Title VII is amended by
inserting after section 713 (as added by section 305) the following
new section:
`SEC. 714. 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 advice to eligible small
businesses;
`(3) expenses for the administration and management of the
Fund (including salaries, expenses, and the rental or purchase
of office space for 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 in accordance with the
requirements of the Federal Credit Reform Act of 1990 (2 U.S.C. 661
et seq.) and any other applicable law to an 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 (d)(2) shall be disbursed upon such terms and conditions
(including conditions relating to the time or times of repayment)
as are specified in any appropriations Act providing such advances.
`(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,
for the purposes of the Fund;
`(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 broadcasting, telecommunications, cable, computer,
data transmission, software, programming, advanced messaging,
and electronics businesses.'.
SEC. 708. NATIONAL EDUCATION TECHNOLOGY FUNDING CORPORATION.
(a) FINDINGS; PURPOSE-
(1) FINDINGS- The Congress finds as follows:
(A) CORPORATION- There has been established in the
District of Columbia a private, nonprofit corporation known
as the National Education Technology Funding Corporation
which is not an agency or independent establishment of the
Federal Government.
(B) BOARD OF DIRECTORS- The Corporation is governed by a
Board of Directors, as prescribed in the Corporation's
articles of incorporation, consisting of 15 members, of
which--
(i) five members are representative of public
agencies representative of schools and public libraries;
(ii) five members are representative of State
government, including persons knowledgeable about State
finance, technology and education; and
(iii) five members are representative of the private
sector, with expertise in network technology, finance
and management.
(C) CORPORATE PURPOSES- The purposes of the Corporation,
as set forth in its articles of incorporation, are--
(i) to leverage resources and stimulate private
investment in education technology infrastructure;
(ii) to designate State education technology agencies
to receive loans, grants or other forms of assistance
from the Corporation;
(iii) to establish criteria for encouraging States to--
(I) create, maintain, utilize and upgrade interactive high
capacity networks capable of providing audio, visual and data
communications for elementary schools, secondary schools and public
libraries;
(II) distribute resources to assure equitable aid to all
elementary schools and secondary schools in the State and achieve
universal access to network technology; and
(III) upgrade the delivery and development of learning through
innovative technology-based instructional tools and applications;
(iv) to provide loans, grants and other forms of
assistance to State education technology agencies, with
due regard for providing a fair balance among types of
school districts and public libraries assisted and the
disparate needs of such districts and libraries;
(v) to leverage resources to provide maximum aid to
elementary schools, secondary schools and public
libraries; and
(vi) to encourage the development of education
telecommunications and information technologies through
public-private ventures, by serving as a clearinghouse
for information on new education technologies, and by
providing technical assistance, including assistance to
States, if needed, to establish State education
technology agencies.
(2) PURPOSE- The purpose of this section is to recognize the
Corporation as a nonprofit corporation operating under the laws
of the District of Columbia, and to provide authority for
Federal departments and agencies to provide assistance to the
Corporation.
(b) DEFINITIONS- For the purpose of this section--
(1) the term `Corporation' means the National Education
Technology Funding Corporation described in subsection (a)(1)(A);
(2) the terms `elementary school' and `secondary school' have
the same meanings given such terms in section 14101 of the
Elementary and Secondary Education Act of 1965; and
(3) the term `public library' has the same meaning given such
term in section 3 of the Library Services and Construction Act.
(c) ASSISTANCE FOR EDUCATION TECHNOLOGY PURPOSES-
(1) RECEIPT BY CORPORATION- Notwithstanding any other
provision of law, in order to carry out the corporate purposes
described in subsection (a)(1)(C), the Corporation shall be
eligible to receive discretionary grants, contracts, gifts,
contributions, or technical assistance from any Federal
department or agency, to the extent otherwise permitted by law.
(2) AGREEMENT- In order to receive any assistance described
in paragraph (1) the Corporation shall enter into an agreement
with the Federal department or agency providing such
assistance, under which the Corporation agrees--
(A) to use such assistance to provide funding and
technical assistance only for activities which the Board of
Directors of the Corporation determines are consistent with
the corporate purposes described in subsection (a)(1)(C);
(B) to review the activities of State education
technology agencies and other entities receiving assistance
from the Corporation to assure that the corporate purposes
described in subsection (a)(1)(C) are carried out;
(C) that no part of the assets of the Corporation shall
accrue to the benefit of any member of the Board of
Directors of the Corporation, any officer or employee of
the Corporation, or any other individual, except as salary
or reasonable compensation for services;
(D) that the Board of Directors of the Corporation will
adopt policies and procedures to prevent conflicts of
interest;
(E) to maintain a Board of Directors of the Corporation
consistent with subsection (a)(1)(B);
(F) that the Corporation, and any entity receiving the
assistance from the Corporation, are subject to the
appropriate oversight procedures of the Congress; and
(G) to comply with--
(i) the audit requirements described in subsection
(d); and
(ii) the reporting and testimony requirements
described in subsection (e).
(3) CONSTRUCTION- Nothing in this section shall be construed
to establish the Corporation as an agency or independent
establishment of the Federal Government, or to establish the
members of the Board of Directors of the Corporation, or the
officers and employees of the Corporation, as officers or
employees of the Federal Government.
(d) AUDITS-
(1) AUDITS BY INDEPENDENT CERTIFIED PUBLIC ACCOUNTANTS-
(A) IN GENERAL- The Corporation's financial statements
shall be audited annually in accordance with generally
accepted auditing standards by independent certified public
accountants who are certified by a regulatory authority of
a State or other political subdivision of the United
States. The audits shall be conducted at the place or
places where the accounts of the Corporation are normally
kept. All books, accounts, financial records, reports,
files, and all other papers, things, or property belonging
to or in use by the Corporation and necessary to facilitate
the audit shall be made available to the person or persons
conducting the audits, and full facilities for verifying
transactions with the balances or securities held by
depositories, fiscal agents, and custodians shall be
afforded to such person or persons.
(B) REPORTING REQUIREMENTS- The report of each annual
audit described in subparagraph (A) shall be included in
the annual report required by subsection (e)(1).
(2) RECORDKEEPING REQUIREMENTS; AUDIT AND EXAMINATION OF
BOOKS-
(A) RECORDKEEPING REQUIREMENTS- The Corporation shall
ensure that each recipient of assistance from the
Corporation keeps--
(i) separate accounts with respect to such assistance;
(ii) such records as may be reasonably necessary to
fully disclose--
(I) the amount and the disposition by such recipient of the
proceeds of such assistance;
(II) the total cost of the project or undertaking in connection
with which such assistance is given or used; and
(III) the amount and nature of that portion of the cost of the
project or undertaking supplied by other sources; and
(iii) such other records as will facilitate an
effective audit.
(B) AUDIT AND EXAMINATION OF BOOKS- The Corporation shall
ensure that the Corporation, or any of the Corporation's
duly authorized representatives, shall have access for the
purpose of audit and examination to any books, documents,
papers, and records of any recipient of assistance from the
Corporation that are pertinent to such assistance.
Representatives of the Comptroller General shall also have
such access for such purpose.
(e) ANNUAL REPORT; TESTIMONY TO THE CONGRESS-
(1) ANNUAL REPORT- Not later than April 30 of each year, the
Corporation shall publish an annual report for the preceding
fiscal year and submit that report to the President and the
Congress. The report shall include a comprehensive and detailed
evaluation of the Corporation's operations, activities,
financial condition, and accomplishments under this section and
may include such recommendations as the Corporation deems
appropriate.
(2) TESTIMONY BEFORE CONGRESS- The members of the Board of
Directors, and officers, of the Corporation shall be available
to testify before appropriate committees of the Congress with
respect to the report described in paragraph (1), the report of
any audit made by the Comptroller General pursuant to this
section, or any other matter which any such committee may
determine appropriate.
SEC. 709. REPORT ON THE USE OF ADVANCED TELECOMMUNICATIONS SERVICES
FOR MEDICAL PURPOSES.
The Secretary of Commerce, 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 by January 31, 1997.
SEC. 710. AUTHORIZATION OF APPROPRIATIONS.
(a) IN GENERAL- In addition to any other sums authorized by law,
there are authorized to be appropriated to the Federal
Communications Commission such sums as may be necessary to carry
out this Act and the amendments made by this Act.
(b) EFFECT ON FEES- For the purposes of section 9(b)(2) (47
U.S.C. 159(b)(2)), additional amounts appropriated pursuant to
subsection (a) shall be construed to be changes in the amounts
appropriated for the performance of activities described in section
9(a) of the Communications Act of 1934.
(c) FUNDING AVAILABILITY- Section 309(j)(8)(B) (47 U.S.C.
309(j)(8)(B)) is amended by adding at the end the following new
sentence: `Such offsetting collections are authorized to remain
available until expended.'.
Speaker of the House of Representatives.
Vice President of the United States and
President of the Senate.
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