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[Congressional Bills 104th Congress]
[From the U.S. Government Publishing Office]
[H.R. 1555 Reported in House (RH)]

                                                 Union Calendar No. 105

104th CONGRESS

  1st Session

                               H. R. 1555

                      [Report No. 104-204, Part I]

_______________________________________________________________________

                                 A BILL

 To promote competition and reduce regulation in order to secure lower 
  prices and higher quality services for American telecommunications 
consumers and encourage the rapid deployment of new telecommunications 
                             technologies.

_______________________________________________________________________

                             July 24, 1995

       Reported from the Committee on Commerce with an amendment

 Committee on the Judiciary discharged, committed to the Committee of 
  the Whole House on the State of the Union, and ordered to be printed
                                                 Union Calendar No. 105
104th CONGRESS
  1st Session
                                H. R. 1555

                      [Report No. 104-204, Part I]

 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.

_______________________________________________________________________

                    IN THE HOUSE OF REPRESENTATIVES

                              May 3, 1995

    Mr. Bliley (for himself, Mr. Dingell, Mr. Fields of Texas, Mr. 
Moorhead, Mr. Oxley, Mr. Bilirakis, Mr. Schaefer, Mr. Barton of Texas, 
    Mr. Hastert, Mr. Stearns, Mr. Paxon, Mr. Gillmor, Mr. Klug, Mr. 
Greenwood, Mr. Crapo, Mr. Frisa, Mr. White, Mr. Coburn, Mr. Tauzin, Mr. 
Hall of Texas, Mr. Boucher, Mr. Manton, Mr. Towns, Ms. Eshoo, and Mrs. 
   Lincoln) introduced the following bill; which was referred to the 
    Committee on Commerce, and in addition to the Committee on the 
 Judiciary, for a period to be subsequently determined by the Speaker, 
 in each case for consideration of such provisions as fall within the 
                jurisdiction of the committee concerned

                             July 24, 1995

       Reported from the Committee on Commerce with an amendment
 [Strike out all after the enacting clause and insert the part printed 
                               in italic]
Referral to the Committee on the Judiciary extended for a period ending 
                      not later than July 24, 1995
      Additional sponsors: Mr. Deutsch, and Mr. Cox of California
 Committee on the Judiciary discharged, committed to the Committee of 
  the Whole House on the State of the Union, and ordered to be printed
[For text of introduced bill, see copy of bill as introduced on May 3, 
                                 1995]

_______________________________________________________________________

                                 A BILL

 
 To promote competition and reduce regulation in order to secure lower 
  prices and higher quality services for American telecommunications 
consumers and encourage the rapid deployment of new telecommunications 
                             technologies.
    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,
SECTION 1. SHORT TITLE; REFERENCES; TABLE OF CONTENTS.

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

Sec. 1. Short title; table of contents.

     TITLE I--DEVELOPMENT OF COMPETITIVE TELECOMMUNICATIONS MARKETS

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

             ``Part II--Development of Competitive Markets

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

              ``Part III--Special and Temporary Provisions

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

             TITLE II--CABLE COMMUNICATIONS COMPETITIVENESS

Sec. 201. Cable service provided by telephone companies.

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

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

          TITLE III--BROADCAST COMMUNICATIONS COMPETITIVENESS

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

                     TITLE IV--EFFECT ON OTHER LAWS

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

                          TITLE V--DEFINITIONS

Sec. 501. Definitions.

              TITLE VI--SMALL BUSINESS COMPLAINT PROCEDURE

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

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

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

             ``PART II--DEVELOPMENT OF COMPETITIVE MARKETS

``SEC. 241. INTERCONNECTION.

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

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

    ``(a) Openness and Accessibility Obligations.--The duty under 
section 201(a) of a local exchange carrier includes the following 
duties:
            ``(1) Interconnection.--The duty to provide, in accordance 
        with subsection (b), equal access to and interconnection with 
        the facilities of the carrier's networks to any other carrier 
        or person offering (or seeking to offer) telecommunications 
        services or information services reasonably requesting such 
        equal access and interconnection, so that such networks are 
        fully interoperable with such telecommunications services and 
        information services. For purposes of this paragraph, a request 
        is not reasonable unless it contains a proposed plan, including 
        a reasonable schedule, for the implementation of the requested 
        access or interconnection.
            ``(2) Unbundling of network elements.--The duty to offer 
        unbundled services, elements, features, functions, and 
        capabilities whenever technically feasible, at just, 
        reasonable, and nondiscriminatory prices and in accordance with 
        subsection (b)(4).
            ``(3) Resale.--The duty to offer services, elements, 
        features, functions, and capabilities for resale at 
        economically feasible rates to the reseller, recognizing 
        pricing structures for telephone exchange service in the State, 
        and the duty not to prohibit, and not to impose unreasonable or 
        discriminatory conditions or limitations on, the resale, on a 
        bundled or unbundled basis, of services, elements, features, 
        functions, and capabilities in conjunction with the furnishing 
        of a telecommunications service or an information service.
            ``(4) Number portability.--The duty to provide, to the 
        extent technically feasible, number portability in accordance 
        with requirements prescribed by the Commission.
            ``(5) Dialing parity.--The duty to provide, in accordance 
        with subsection (c), dialing parity to competing providers of 
        telephone exchange service and telephone toll service.
            ``(6) Access to rights-of-way.--The duty to afford access 
        to the poles, ducts, conduits, and rights-of-way of such 
        carrier to competing providers of telecommunications services 
        in accordance with section 224(d).
            ``(7) Network functionality and accessibility.--The duty 
        not to install network features, functions, or capabilities 
        that do not comply with any standards established pursuant to 
        section 249.
            ``(8) Good faith negotiation.--The duty to negotiate in 
        good faith, under the supervision of State commissions, the 
        particular terms and conditions of agreements to fulfill the 
        duties described in paragraphs (1) through (7). The other 
        carrier or person requesting interconnection shall also be 
        obligated to negotiate in good faith the particular terms and 
        conditions of agreements to fulfill the duties described in 
        paragraphs (1) through (7).
    ``(b) Interconnection, Compensation, and Equal Access.--
            ``(1) Interconnection.--A local exchange carrier shall 
        provide access to and interconnection with the facilities of 
        the carrier's network at any technically feasible point within 
        the carrier's network on just and reasonable terms and 
        conditions, to any other carrier or person offering (or seeking 
        to offer) telecommunications services or information services 
        requesting such access.
            ``(2) Intercarrier compensation between facilities-based 
        carriers.--
                    ``(A) In general.--For the purposes of paragraph 
                (1), the terms and conditions for interconnection of 
                the network facilities of a competing provider of 
                telephone exchange service shall not be considered to 
                be just and reasonable unless--
                            ``(i) such terms and conditions provide for 
                        the mutual and reciprocal recovery by each 
                        carrier of costs associated with the 
                        termination on such carrier's network 
                        facilities of calls that originate on the 
                        network facilities of the other carrier;
                            ``(ii) such terms and conditions determine 
                        such costs on the basis of a reasonable 
                        approximation of the additional costs of 
                        terminating such calls; and
                            ``(iii) the recovery of costs permitted by 
                        such terms and conditions are reasonable in 
                        relation to the prices for termination of calls 
                        that would prevail in a competitive market.
                    ``(B) Rules of construction.--This paragraph shall 
                not be construed--
                            ``(i) to preclude arrangements that afford 
                        such mutual recovery of costs through the 
                        offsetting of reciprocal obligations, including 
                        arrangements that waive mutual recovery (such 
                        as bill-and-keep arrangements); or
                            ``(ii) to authorize the Commission or any 
                        State commission to engage in any rate 
                        regulation proceeding to establish with 
                        particularity the additional costs of 
                        terminating calls, or to require carriers to 
                        maintain records with respect to the additional 
                        costs of terminating calls.
            ``(3) Equal access.--A local exchange carrier shall afford, 
        to any other carrier or person offering (or seeking to offer) a 
        telecommunications service or an information service, 
        reasonable and nondiscriminatory access on an unbundled basis--
                    ``(A) to databases, signaling systems, billing and 
                collection services, poles, ducts, conduits, and 
                rights-of-way owned or controlled by a local exchange 
                carrier, or other facilities, functions, or information 
                (including subscriber numbers) integral to the 
                efficient transmission, routing, or other provision of 
                telephone exchange services or exchange access;
                    ``(B) that is equal in type and quality to the 
                access which the carrier affords to itself or to any 
                other person, and is available at nondiscriminatory 
                prices; and
                    ``(C) that is sufficient to ensure the full 
                interoperability of the equipment and facilities of the 
                carrier and of the person seeking such access.
            ``(4) Commission action required.--
                    ``(A) In general.--Within 15 months after the date 
                of enactment of this part, the Commission shall 
                complete all actions necessary (including any 
                reconsideration) to establish regulations to implement 
                the requirements of this section. The Commission shall 
                establish such regulations after consultation with the 
                Joint Board established pursuant to section 247.
                    ``(B) Collocation.--Such regulations shall provide 
                for actual collocation of equipment necessary for 
                interconnection for telecommunications services at the 
                premises of a local exchange carrier, except that the 
                regulations shall provide for virtual collocation where 
                the local exchange carrier demonstrates that actual 
                collocation is not practical for technical reasons or 
                because of space limitations.
                    ``(C) User payment of costs.--Such regulations 
                shall require that the costs that a carrier incurs in 
                offering access, interconnection, number portability, 
                or unbundled services, elements, features, functions, 
                and capabilities shall be borne by the users of such 
                access, interconnection, number portability, or 
                services, elements, features, functions, and 
                capabilities.
                    ``(D) Imputed charges to carrier.--Such regulations 
                shall require the carrier, to the extent it provides a 
                telecommunications service or an information service 
                that requires access or interconnection to its network 
                facilities, to impute such access and interconnection 
                charges to itself.
    ``(c) Number Portability and Dialing Parity.--
            ``(1) Availability.--A local exchange carrier shall ensure 
        that--
                    ``(A) number portability shall be available on 
                request in accordance with subsection (a)(4); and
                    ``(B) dialing parity shall be available upon 
                request, except that, in the case of a Bell operating 
                company, such company shall ensure that dialing parity 
                for intraLATA telephone toll service shall be available 
                not later than the date such company is authorized to 
                provide interLATA services.
            ``(2)  Number administration.--The Commission shall 
        designate one or more impartial entities to administer 
        telecommunications numbering and to make such numbers available 
        on an equitable basis. The Commission shall have exclusive 
        jurisdiction over those portions of the North American 
        Numbering Plan that pertain to the United States. Nothing in 
        this paragraph shall preclude the Commission from delegating to 
        State commissions or other entities any portion of such 
        jurisdiction.
    ``(d) Joint Marketing of Resold Elements.--
            ``(1) Restriction.--Except as provided in paragraph (2), no 
        service, element, feature, function, or capability that is made 
        available for resale in any State by a Bell operating company 
        may be jointly marketed directly or indirectly with any 
        interLATA telephone toll service until such Bell operating 
        company is authorized pursuant to section 245(d) to provide 
        interLATA services in such State.
            ``(2) Existing providers.--Paragraph (1) shall not prohibit 
        joint marketing of services, elements, features, functions, or 
        capabilities acquired from a Bell operating company by another 
        provider if that provider jointly markets services, elements, 
        features, functions, and capabilities acquired from a Bell 
        operating company anywhere in the telephone service territory 
        of such Bell operating company, or in the telephone service 
        territory of any affiliate of such Bell operating company that 
        provides telephone exchange service, pursuant to any agreement, 
        tariff, or other arrangement entered into or in effect before 
        the date of enactment of this part.
    ``(e) Modifications and Waivers.--The Commission may modify or 
waive the requirements of this section for any local exchange carrier 
(or class or category of such carriers) that has, in the aggregate 
nationwide, fewer than 500,000 access lines installed, to the extent 
that the Commission determines that compliance with such requirements 
(without such modification) would be unduly economically burdensome, 
technologically infeasible, or otherwise not in the public interest.
    ``(f) Waiver for Rural Telephone Companies.--A State commission may 
waive the requirements of this section with respect to any rural 
telephone company.
    ``(g) Exemption for Certain Rural Telephone Companies.--Subsections 
(a) through (d) of this section shall not apply to a carrier that has 
fewer than 50,000 access lines in a local exchange study area, if such 
carrier does not provide video programming services over its telephone 
exchange facilities in such study area, except that a State commission 
may terminate the exemption under this subsection if the State 
commission determines that the termination of such exemption is 
consistent with the public interest, convenience, and necessity.
    ``(h) Avoidance of Redundant Regulations.--Nothing in this section 
shall be construed to prohibit the Commission or any State commission 
from enforcing regulations prescribed prior to the date of enactment of 
this part in fulfilling the requirements of this section, to the extent 
that such regulations are consistent with the provisions of this 
section.

``SEC. 243. PREEMPTION.

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

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

    ``(a) In General.--Within 18 months after the date of enactment of 
this part, and from time to time thereafter, a local exchange carrier 
shall prepare and file with a State commission statements of the terms 
and conditions that such carrier generally offers within that State 
with respect to the services, elements, features, functions, or 
capabilities provided to comply with the requirements of section 242 
and the regulations thereunder. Any such statement pertaining to the 
charges for interstate services, elements, features, functions, or 
capabilities shall be filed with the Commission.
    ``(b) Review.--
            ``(1) State commission review.--A State commission to which 
        a statement is submitted under subsection (a) shall review such 
        statement in accordance with State law. A State commission may 
        not approve such statement unless such statement complies with 
        section 242 and the regulations thereunder. Except as provided 
        in section 243, nothing in this section shall prohibit a State 
        commission from establishing or enforcing other requirements of 
        State law in its review of such statement, including requiring 
        compliance with intrastate telecommunications service quality 
        standards or requirements.
            ``(2) FCC review.--The Commission shall review such 
        statements to ensure that--
                    ``(A) the charges for interstate services, 
                elements, features, functions, or capabilities are 
                just, reasonable, and nondiscriminatory; and
                    ``(B) the terms and conditions for such interstate 
                services or elements unbundle any separable services, 
                elements, features, functions, or capabilities in 
                accordance with section 242(a)(2) and any regulations 
                thereunder.
    ``(c) Time for Review.--
            ``(1) Schedule for review.--The Commission and the State 
        commission to which a statement is submitted shall, not later 
        than 60 days after the date of such submission--
                    ``(A) complete the review of such statement under 
                subsection (b) (including any reconsideration thereof), 
                unless the submitting carrier agrees to an extension of 
                the period for such review; or
                    ``(B) permit such statement to take effect.
            ``(2) Authority to continue review.--Paragraph (1) shall 
        not preclude the Commission or a State commission from 
        continuing to review a statement that has been permitted to 
        take effect under subparagraph (B) of such paragraph.
    ``(d) Effect of Agreements.--Nothing in this section shall prohibit 
a carrier from filing an agreement to provide services, elements, 
features, functions, or capabilities affording access and 
interconnection as a statement of terms and conditions that the carrier 
generally offers for purposes of this section. An agreement affording 
access and interconnection shall not be approved under this section 
unless the agreement contains a plan, including a reasonable schedule, 
for the implementation of the requested access or interconnection. The 
approval of a statement under this section shall not operate to 
prohibit a carrier from entering into subsequent agreements that 
contain terms and conditions that differ from those contained in a 
statement that has been reviewed and approved under this section, but--
            ``(1) each such subsequent agreement shall be filed under 
        this section; and
            ``(2) such carrier shall be obligated to offer access to 
        such services, elements, features, functions, or capabilities 
        to other carriers and persons (including carriers and persons 
        covered by previously approved statements) requesting such 
        access on terms and conditions that, in relation to the terms 
        and conditions in such subsequent agreements, are not 
        discriminatory.
    ``(e) Sunset.--The provisions of this section shall cease to apply 
in any local exchange market, defined by geographic area and class or 
category of service, that the Commission and the State determines has 
become subject to full and open competition.
``SEC. 245. BELL OPERATING COMPANY ENTRY INTO INTERLATA SERVICES.

    ``(a) Verification of Access and Interconnection Compliance.--At 
any time after 18 months after the date of enactment of this part, a 
Bell operating company may provide to the Commission verification by 
such company with respect to one or more States that such company is in 
compliance with the requirements of this part. Such verification shall 
contain the following:
            ``(1) Certification.--A certification by each State 
        commission of such State or States that such carrier has fully 
        implemented the conditions described in subsection (b), except 
        as provided in subsection (d)(2).
            ``(2) Agreement or statement.--For each such State, either 
        of the following:
                    ``(A) Presence of a facilities-based competitor.--
                An agreement that has been approved under section 244 
                specifying the terms and conditions under which the 
                Bell operating company is providing access and 
                interconnection to its network facilities in accordance 
                with section 242 for an unaffiliated competing provider 
                of telephone exchange service that is comparable in 
                price, features, and scope and that is provided over 
                the competitor's own network facilities to residential 
                and business subscribers.
                    ``(B) Failure to request access.--If no such 
                provider has requested such access and interconnection 
                before the date which is 3 months before the date the 
                company makes its submission under this subsection, a 
                statement of the terms and conditions that the carrier 
                generally offers to provide such access and 
                interconnection that has been approved or permitted to 
                take effect by the State commission under section 243.
        For purposes of subparagraph (B), a Bell operating company 
        shall be considered not to have received any request for access 
        or interconnection if the State commission of such State or 
        States certifies that the only provider or providers making 
        such request have (i) failed to bargain in good faith under the 
        supervision of such State commission pursuant to section 
        242(a)(8), or (ii) have violated the terms of their agreement 
        by failure to comply, within a reasonable period of time, with 
        the implementation schedule contained in such agreement.
    ``(b) Certification of Compliance With Part II.--For the purposes 
of subsection (a)(1), a Bell operating company shall submit to the 
Commission a certification by a State commission of compliance with 
each of the following conditions in any area where such company 
provides local exchange service or exchange access in such State:
            ``(1) Interconnection.--The Bell operating company provides 
        access and interconnection in accordance with subsections 
        (a)(1) and (b) of section 242 to any other carrier or person 
        offering telecommunications services requesting such access and 
        interconnection, and complies with the Commission
         regulations pursuant to such section concerning such access 
and interconnection.
            ``(2) Unbundling of network elements.--The Bell operating 
        company provides unbundled services, elements, features, 
        functions, and capabilities in accordance with subsection 
        (a)(2) of section 242 and the regulations prescribed by the 
        Commission pursuant to such section.
            ``(3) Resale.--The Bell operating company offers services, 
        elements, features, functions, and capabilities for resale in 
        accordance with section 242(a)(3), and neither the Bell 
        operating company, nor any unit of State or local government 
        within the State, imposes any restrictions on resale or sharing 
        of telephone exchange service (or unbundled services, elements, 
        features, or functions of telephone exchange service) in 
        violation of section 242(a)(3).
            ``(4) Number portability.--The Bell operating company 
        provides number portability in compliance with the Commission's 
        regulations pursuant to subsections (a)(4) and (c) of section 
        242.
            ``(5) Dialing parity.--The Bell operating company provides 
        dialing parity in accordance with subsections (a)(5) and (c) of 
        section 242, and will, not later than the effective date of its 
        authority to commence providing interLATA services, take such 
        actions as are necessary to provide dialing parity for 
        intraLATA telephone toll service in accordance with such 
        subsections.
            ``(6) Access to conduits and rights of way.--The poles, 
        ducts, conduits, and rights of way of such Bell operating 
        company are available to competing providers of 
        telecommunications services in accordance with the requirements 
        of sections 242(a)(6) and 224(d).
            ``(7) Elimination of franchise limitations.--No unit of the 
        State or local government in such State or States enforces any 
        prohibition or limitation in violation of section 243.
            ``(8) Network functionality and accessibility.--The Bell 
        operating company will not install network features, functions, 
        or capabilities that do not comply with the standards 
        established pursuant to section 249.
            ``(9) Negotiation of terms and conditions.--The Bell 
        operating company has negotiated in good faith, under the 
        supervision of the State commission, in accordance with the 
        requirements of section 242(a)(8) with any other carrier or 
        person requesting access or interconnection.
    ``(c) Application for Interim InterLATA Authority.--
            ``(1) Application submission and contents.--At any time 
        after the date of enactment of this part, and prior to the 
        completion by the Commission of all actions necessary to 
        establish regulations under section 242, a Bell operating 
        company may apply to the Commission for interim authority to 
        provide interLATA services. Such application shall specify the 
        LATA or LATAs for which the company is requesting authority to 
        provide interim interLATA services. Such application shall 
        contain, with respect to each LATA within a State for which 
        authorization is requested, the following:
                    ``(A) Presence of a facilities-based competitor.--
                An agreement that the State commission has determined 
                complies with section 242 (without regard to any 
                regulations thereunder) and that specifies the terms 
                and conditions under which the Bell operating company 
                is providing access and interconnection to its network 
                facilities for an unaffiliated competing provider of 
                telephone exchange service that is comparable in price, 
                features, and scope and that is provided over the 
                competitor's own network facilities to residential and 
                business subscribers.
                    ``(B) Certification.--A certification by the State 
                commission of the State within which such LATA is 
                located that such company is in compliance with State 
                laws, rules, and regulations providing for the 
                implementation of the standards described in subsection 
                (b) as of the date of certification, including 
                certification that such company is offering services, 
                elements, features, functions, and capabilities for 
                resale at economically feasible rates to the reseller, 
                recognizing pricing structures for telephone exchange 
                service in such State.
            ``(2) State to participate.--The company shall serve a copy 
        of the application on the relevant State commission within 5 
        days of filing its application. The State shall file comments 
        to the Commission on the company's application within 40 days 
        of receiving a copy of the company's application.
            ``(3) Deadlines for commission action.--The Commission 
        shall make a determination on such application not more than 90 
        days after such application is filed.
            ``(4) Expiration of interim authority.--Any interim 
        authority granted pursuant to this subsection shall cease to be 
        effective 180 days after the completion by the Commission of 
        all actions necessary to establish regulations under section 
        242.
    ``(d) Commission Review.--
            ``(1) Review of state decisions and certifications.--The 
        Commission shall review any verification submitted by a Bell 
        operating company pursuant to subsection (a). The Commission 
        may require such company to submit such additional information 
        as is necessary to validate any of the items of such 
        verification.
            ``(2) De novo review.--If--
                    ``(A) a State commission does not have the 
                jurisdiction or authority to make the certification 
                required by subsection (b);
                    ``(B) the State commission has failed to act within 
                90 days after the date a request for such certification 
                is filed with such State commission; or
                    ``(C) the State commission has sought to impose a 
                term or condition in violation of section 243;
        the local exchange carrier may request the Commission to 
        certify the carrier's compliance with the conditions specified 
        in subsection (b).
            ``(3) Time for decision; public comment.--Unless such Bell 
        operating company consents to a longer period of time, the 
        Commission shall approve, disapprove, or approve with 
        conditions such verification within 90 days after the date of 
        its submission. During such 90 days, the Commission shall 
        afford interested persons an opportunity to present information 
        and evidence concerning such verification.
            ``(4) Standard for decision.--The Commission shall not 
        approve such verification unless the Commission determines 
        that--
                    ``(A) the Bell operating company meets each of the 
                conditions required to be certified under subsection 
                (b); and
                    ``(B) the agreement or statement submitted under 
                subsection (a)(2) complies with the requirements of 
                section 242 and the regulations thereunder.
    ``(e) Enforcement of Conditions.--
            ``(1) Commission authority.--If at any time after the 
        approval of a verification under subsection (d), the Commission 
        determines that a Bell operating company has ceased to meet any 
        of the conditions required to be certified under subsection 
        (b), the Commission may, after notice and opportunity for a 
        hearing--
                    ``(A) issue an order to such company to correct the 
                deficiency;
                    ``(B) impose a penalty on such company pursuant to 
                title V; or
                    ``(C) suspend or revoke such approval.
            ``(2) Receipt and review of complaints.--The Commission 
        shall establish procedures for the review of complaints 
        concerning failures by Bell operating companies to meet 
        conditions required to be certified under subsection (b). 
        Unless the parties otherwise agree, the Commission shall act on 
        such complaint within 90 days.
            ``(3) State authority.--The authority of the Commission 
        under this subsection shall not be construed to preempt any 
        State commission from taking actions to enforce the conditions 
        required to be certified under subsection (b).
    ``(f) Authority To Provide InterLATA Services.--
            ``(1) Prohibition.--Except as provided in paragraph (2) and 
        subsections (g) and (h), a Bell operating company or affiliate 
        thereof may not provide interLATA services.
            ``(2) Authority subject to certification.--A Bell operating 
        company or affiliate thereof may, in any States to which its 
        verification under subsection (a) applies, provide interLATA 
        services--
                    ``(A) during any period after the effective date of 
                the Commission's approval of such verification pursuant 
                to subsection (d), and
                    ``(B) until the approval of such verification is 
                suspended or revoked by the Commission pursuant to 
                subsection (d).
    ``(g) Exception for Previously Authorized Activities.--Subsection 
(f) shall not prohibit a Bell operating company or affiliate from 
engaging, at any time after the date of the enactment of this part, in 
any activity as authorized by an order entered by the United States 
District Court for the District of Columbia pursuant to section VII or 
VIII(C) of the Modification of Final Judgment, if--
            ``(1) such order was entered on or before the date of the 
        enactment of this part, or
            ``(2) a request for such authorization was pending before 
        such court on the date of the enactment of this part.
    ``(h) Exceptions for Incidental Services.--Subsection (f) shall not 
prohibit a Bell operating company or affiliate thereof, at any time 
after the date of the enactment of this part, from providing interLATA 
services for the purpose of--
            ``(1)(A) providing audio programming, video programming, or 
        other programming services to subscribers to such services of 
        such company;
            ``(B) providing the capability for interaction by such 
        subscribers to select or respond to such audio programming, 
        video programming, or other programming services; or
            ``(C) providing to distributors audio programming or video 
        programming that such company owns or controls, or is licensed 
        by the copyright owner of such programming (or by an assignee 
        of such owner) to distribute;
            ``(2) providing a telecommunications service, using the 
        transmission facilities of a cable system that is an affiliate 
        of such company, between local access and transport areas 
        within a cable system franchise area in which such company is 
        not, on the date of the enactment of this part, a provider of 
        wireline telephone exchange service;
            ``(3) providing commercial mobile services in accordance 
        with section 332(c) of this Act and with the regulations 
        prescribed by the Commission pursuant to paragraph (8) of such 
        section;
            ``(4) providing a service that permits a customer that is 
        located in one local access and transport area to retrieve 
        stored information from, or file information for storage in, 
        information storage facilities of such company that are located 
        in another local access and transport area;
            ``(5) providing signaling information used in connection 
        with the provision of telephone exchange services to a local 
        exchange carrier that, together with any affiliated local 
        exchange carriers, has aggregate annual revenues of less than 
        $100,000,000; or
            ``(6) providing network control signaling information to, 
        and receiving such signaling information from, common carriers 
        offering interLATA services at any location within the area in 
        which such Bell operating company provides telephone exchange 
        services or exchange access.
    ``(i) IntraLATA Toll Dialing Parity.--Neither the Commission nor 
any State may order any Bell operating company to provide dialing 
parity for intraLATA telephone toll service in any State before the 
date such company is authorized to provide interLATA services in such 
State pursuant to this section.
    ``(j) Forbearance.--The Commission may not, pursuant to section 
230, forbear from applying any provision of this section or any 
regulation thereunder until at least 5 years after the date of 
enactment of this part.
    ``(k) Sunset.--The provisions of this section shall cease to apply 
in any local exchange market, defined by geographic area and class or 
category of service, that the Commission and the State determines has 
become subject to full and open competition.
    ``(l) Definitions.--As used in this section--
            ``(1) Audio programming.--The term `audio programming' 
        means programming provided by, or generally considered 
        comparable to programming provided by, a radio broadcast 
        station.
            ``(2) Video programming.--The term `video programming' has 
        the meaning provided in section 602.
            ``(3) Other programming services.--The term `other 
        programming services' means information (other than audio 
        programming or video programming) that the person who offers a 
        video programming service makes available to all subscribers 
        generally. For purposes of the preceding sentence, the terms 
        `information' and `makes available to all subscribers 
        generally' have the same meaning such terms have under section 
        602(13) of this Act.
``SEC. 246. COMPETITIVE SAFEGUARDS.

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

``SEC. 247. UNIVERSAL SERVICE.

    ``(a) Joint Board To Preserve Universal Service.--Within 30 days 
after the date of enactment of this
 part, the Commission shall convene a Federal-State Joint Board under 
section 410(c) for the purpose of recommending actions to the 
Commission and State commissions for the preservation of universal 
service in furtherance of the purposes set forth in section 1 of this 
Act. In addition to the members required under section 410(c), one 
member of the Joint Board shall be a State-appointed utility consumer 
advocate nominated by a national organization of State utility consumer 
advocates.
    ``(b) Principles.--The Joint Board shall base policies for the 
preservation of universal service on the following principles:
            ``(1) Just and reasonable rates.--A plan adopted by the 
        Commission and the States should ensure the continued viability 
        of universal service by maintaining quality services at just 
        and reasonable rates.
            ``(2) Definitions of included services; comparability in 
        urban and rural areas.--Such plan should recommend a definition 
        of the nature and extent of the services encompassed within 
        carriers' universal service obligations. Such plan should seek 
        to promote access to advanced telecommunications services and 
        capabilities, and to promote reasonably comparable services for 
        the general public in urban and rural areas, while maintaining 
        just and reasonable rates.
            ``(3) Adequate and sustainable support mechanisms.--Such 
        plan should recommend specific and predictable mechanisms to 
        provide adequate and sustainable support for universal service.
            ``(4) Equitable and nondiscriminatory contributions.--All 
        providers of telecommunications services should make an 
        equitable and nondiscriminatory contribution to the 
        preservation of universal service.
            ``(5) Educational access to advanced telecommunications 
        services.--To the extent that a common carrier establishes 
        advanced telecommunications services, such plan should include 
        recommendations to ensure access to advanced telecommunications 
        services for students in elementary and secondary schools.
            ``(6) Additional principles.--Such other principles as the 
        Board determines are necessary and appropriate for the 
        protection of the public interest, convenience, and necessity 
        and consistent with the purposes of this Act.
    ``(c) Definition of Universal Service.--In recommending a 
definition of the nature and extent of the services encompassed within 
carriers' universal service obligations under subsection (b)(2), the 
Joint Board shall consider the extent to which--
            ``(1) a telecommunications service has, through the 
        operation of market choices by customers, been subscribed to by 
        a substantial majority of residential customers;
            ``(2) such service or capability is essential to public 
        health, public safety, or the public interest;
            ``(3) such service has been deployed in the public switched 
        telecommunications network; and
            ``(4) inclusion of such service within carriers' universal 
        service obligations is otherwise consistent with the public 
        interest, convenience, and necessity.
The Joint Board may, from time to time, recommend to the Commission 
modifications in the definition proposed under subsection (b).
    ``(d) Report; Commission Response.--The Joint Board convened 
pursuant to subsection (a) shall report its recommendations within 270 
days after the date of enactment of this part. The Commission shall 
complete any proceeding to act upon such recommendations and to comply 
with the principles set forth in subsection (b) within one year after 
such date of enactment.
    ``(e) State Authority.--Nothing in this section shall be construed 
to restrict the authority of any State to adopt regulations imposing 
universal service obligations on the provision of intrastate 
telecommunications services.
    ``(f) Sunset.--The Joint Board established by this section shall 
cease to exist 5 years after the date of enactment of this part.
``SEC. 248. PRICING FLEXIBILITY AND ABOLITION OF RATE-OF-RETURN 
              REGULATION.

    ``(a) Pricing Flexibility.--
            ``(1) Commission criteria.--Within 270 days after the date 
        of enactment of this part, the Commission shall complete all 
        actions necessary (including any reconsideration) to 
        establish--
                    ``(A) criteria for determining whether a 
                telecommunications service or provider of such service 
                has become, or is substantially certain to become, 
                subject to competition, either within a geographic area 
                or within a class or category of service; and
                    ``(B) appropriate flexible pricing procedures that 
                afford a regulated provider of a service described in 
                subparagraph (A) the opportunity to respond fairly to 
                such competition and that are consistent with the 
                protection of subscribers and the public interest, 
                convenience, and necessity.
            ``(2) State selection.--A State commission may utilize the 
        flexible pricing procedures or procedures (established under 
        paragraph (1)(B)) that are appropriate in light of the criteria 
        established under paragraph (1)(A).
            ``(3) Determinations.--The Commission, with respect to 
        rates for interstate or foreign communications, and State 
        commissions, with respect to rates for intrastate 
        communications, shall, upon application--
                    ``(A) render determinations in accordance with the 
                criteria established under paragraph (1)(A) concerning 
                the services or providers that are the subject of such 
                application; and
                    ``(B) upon a proper showing, implement appropriate 
                flexible pricing procedures consistent with paragraphs 
                (1)(B) and (2) with respect to such services or 
                providers.
        The Commission and such State commission shall approve or 
        reject any such application within 180 days after the date of 
        its submission.
    ``(b) Abolition of Rate-of-Return Regulation.--Notwithstanding any 
other provision of law, to the extent that a carrier has complied with 
sections 242 and 244 of this part, the Commission, with respect to 
rates for interstate or foreign communications, and State commissions, 
with respect to rates for intrastate communications, shall not require 
rate-of-return regulation.
    ``(c) Termination of Price and Other Regulation.--Notwithstanding 
any other provision of law, to the extent that a carrier has complied 
with sections 242 and 244 of this part, the Commission, with respect to 
interstate or foreign communications, and State commissions, with 
respect to intrastate communications, shall not, for any service that 
is determined, in accordance with the criteria established under 
subsection (a)(1)(A), to be subject to competition that effectively 
prevents prices for such service that are unjust or unreasonable or 
unjustly or unreasonably discriminatory--
            ``(1) regulate the prices for such service;
            ``(2) require the filing of a schedule of charges for such 
        service;
            ``(3) require the filing of any cost or revenue projections 
        for such service;
            ``(4) regulate the depreciation charges for facilities used 
        to provide such service; or
            ``(5) require prior approval for the construction or 
        extension of lines or other equipment for the provision of such 
        service.
    ``(d) Ability To Continue Affordable Voice-Grade Service.--
Notwithstanding subsections (a), (b), and (c), each State commission 
shall, for a period of not more than 3 years, permit residential 
subscribers to continue to receive only basic voice-grade local 
telephone service equivalent to the service generally available to 
residential subscribers on the date of enactment of this part, at just, 
reasonable, and affordable rates. Determinations concerning the 
affordability of rates for such services shall take into account the 
rates generally available to residential subscribers on such date of 
enactment and the pricing rules established by the States. Any 
increases in the rates for such services for residential subscribers 
that are not attributable to changes in consumer prices generally shall 
be permitted in any proceeding commenced after the date of enactment of 
this section upon a showing that such increase is necessary to ensure 
the continued availability of universal service, prevent economic 
disadvantages for one or more service providers, and is in the public 
interest. Such increase in rates shall be minimized to the greatest 
extent practical and shall be implemented over a time period of not 
more than 3 years after the the date of enactment of this section. The 
requirements of this subsection shall not apply to any rural telephone 
company if the rates for basic voice-grade local telephone service of 
that company are not subject to regulation by a State commission on the 
date of enactment of this part.
    ``(e) Interstate Interexchange Service.--The rates charged by 
providers of interstate interexchange telecommunications service to 
customers in rural and high cost areas shall be maintained at levels no 
higher than those charged by each such provider to its customers in 
urban areas.
    ``(f) Exception.--In the case of commercial mobile services, the 
provisions of section 332(c)(1) shall apply in lieu of the provisions 
of this section.
    ``(g) Avoidance of Redundant Regulations.--Nothing in this section 
shall be construed to prohibit the Commission or a State commission 
from enforcing regulations prescribed prior to the date of enactment of 
this part in fulfilling the requirements of this section, to the extent 
that such regulations are consistent with the provisions of this 
section.

``SEC. 249. NETWORK FUNCTIONALITY AND ACCESSIBILITY.

    ``(a) Functionality and Accessibility.--The duty of a common 
carrier under section 201(a) to furnish communications service includes 
the duty to furnish that service in accordance with any standards 
established pursuant to this section.
    ``(b) Coordination for Interconnectivity.--The Commission--
            ``(1) shall establish procedures for Commission oversight 
        of coordinated network planning by common carriers and other 
        providers of telecommunications services for the effective and 
        efficient interconnection of public switched networks; and
            ``(2) may participate, in a manner consistent with its 
        authority and practice prior to the date of enactment of this 
        section, in the development by appropriate industry standards-
        setting organizations of interconnection standards that promote 
        access to--
                    ``(A) network capabilities and services by 
                individuals with disabilities; and
                    ``(B) information services by subscribers to 
                telephone exchange service furnished by a rural 
                telephone company.
    ``(c) Accessibility for Individuals With Disabilities.--
            ``(1) Accessibility.--Within 1 year after the date of 
        enactment of this section, the Commission shall prescribe such 
        regulations as are necessary to ensure that, if readily 
        achievable, advances in network services deployed by common 
        carriers, and telecommunications equipment and customer 
        premises equipment manufactured for use in conjunction with 
        network services, shall be accessible and usable by individuals 
        with disabilities, including individuals with functional 
        limitations of hearing, vision, movement, manipulation, speech, 
        and interpretation of information. Such regulations shall 
        permit the use of both standard and special equipment, and seek 
        to minimize the need of individuals to acquire additional 
        devices beyond those used by the general public to obtain such 
        access. Throughout the process of developing such regulations, 
        the Commission shall coordinate and consult with 
        representatives of individuals with disabilities and interested 
        equipment and service providers to ensure their concerns and 
        interests are given full consideration in such process.
            ``(2) Compatibility.--Such regulations shall require that 
        whenever an undue burden or adverse competitive impact would 
        result from the requirements in paragraph (1), the local 
        exchange carrier that deploys the network service shall ensure 
        that the network service in question is compatible with 
        existing peripheral devices or specialized customer premises 
        equipment commonly used by persons with disabilities to achieve 
        access, unless doing so would result in an undue burden or 
        adverse competitive impact.
            ``(3) Undue burden.--The term `undue burden' means 
        significant difficulty or expense. In determining whether the 
        activity necessary to comply with the requirements of this 
        subsection would result in an undue burden, the factors to be 
        considered include the following:
                    ``(A) The nature and cost of the activity.
                    ``(B) The impact on the operation of the facility 
                involved in the deployment of the network service.
                    ``(C) The financial resources of the local exchange 
                carrier.
                    ``(D) The type of operations of the local exchange 
                carrier.
            ``(4) Adverse competitive impact.--In determining whether 
        the activity necessary to comply with the requirements of this 
        subsection would result in adverse competitive impact, the 
        following factors shall be considered:
                    ``(A) Whether such activity would raise the cost of 
                the network service in question beyond the level at 
                which there would be sufficient consumer demand by the 
                general population to make the network service 
                profitable.
                    ``(B) Whether such activity would, with respect to 
                the network service in question, put the local exchange 
                carrier at a competitive disadvantage. This factor may 
                be considered so long as competing network service 
                providers are not held to the same obligation with 
                respect to access by persons with disabilities.
            ``(5) Effective date.--The regulations required by this 
        subsection shall become effective 18 months after the date of 
        enactment of this part.
    ``(d) Private Rights of Actions Prohibited.--Nothing in this 
section shall be construed to authorize any private right of action to 
enforce any requirement of this section or any regulation thereunder. 
The Commission shall have exclusive jurisdiction with respect to any 
complaint under this section.
``SEC. 250. MARKET ENTRY BARRIERS.

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

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

``SEC. 252. STUDY.

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

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

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

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

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

    ``(a) Access and Interconnection.--It shall be unlawful for a Bell 
operating company, directly or through an affiliate, to manufacture 
telecommunications equipment or customer premises equipment, until the 
Commission has approved under section 245(c) verifications that such 
Bell operating company, and each Bell operating company with which it 
is affiliated, are in compliance with the access and interconnection 
requirements of part II of this title.
    ``(b) Collaboration.--Subsection (a) shall not prohibit a Bell 
operating company from engaging in close collaboration with any 
manufacturer of customer premises equipment or telecommunications 
equipment during the design and development of hardware, software, or 
combinations thereof related to such equipment.
    ``(c) Information Requirements.--
            ``(1) Information on protocols and technical 
        requirements.--Each Bell operating company shall, in accordance 
        with regulations prescribed by the Commission, maintain and 
        file with the Commission full and complete information with 
        respect to the protocols and technical requirements for 
        connection with and use of its telephone exchange service 
        facilities. Each such company shall report promptly to the 
        Commission any material changes or planned changes to such 
        protocols and requirements, and the schedule for implementation 
        of such changes or planned changes.
            ``(2) Disclosure of information.--A Bell operating company 
        shall not disclose any information required to be filed under 
        paragraph (1) unless that information has been filed promptly, 
        as required by regulation by the Commission.
            ``(3) Access by competitors to information.--The Commission 
        may prescribe such additional regulations under this subsection 
        as may be necessary to ensure that manufacturers have access to 
        the information with respect to the protocols and technical 
        requirements for connection with and use of telephone exchange 
        service facilities that a Bell operating company makes 
        available to any manufacturing affiliate or any unaffiliated 
        manufacturer.
            ``(4) Planning information.--Each Bell operating company 
        shall provide, to contiguous common carriers providing 
        telephone exchange service, timely information on the planned 
        deployment of telecommunications equipment.
    ``(d) Manufacturing Limitations for Standard-Setting 
Organizations.--
            ``(1) Bell communications research.--The Bell 
        Communications Research Corporation, or any successor entity, 
        shall not engage in manufacturing telecommunications equipment 
        or customer premises equipment so long as--
                    ``(A) such Corporation or entity is owned, in whole 
                or in part, by one or more Bell operating companies; or
                    ``(B) such Corporation or entity engages in 
                establishing standards for telecommunications 
                equipment, customer premises equipment, or 
                telecommunications services, or any product 
                certification activities with respect to 
                telecommunications equipment or customer premises 
                equipment.
            ``(2) Participation in standard setting; protection of 
        proprietary information.--Any entity (including such 
        Corporation) that engages in establishing standards for--
                    ``(A) telecommunications equipment, customer 
                premises equipment, or telecommunications services, or
                    ``(B) any product certification activities with 
                respect to telecommunications equipment or customer 
                premises equipment,
        for one or more Bell operating companies shall allow any other 
        person to participate fully in such activities on a 
        nondiscriminatory basis. Any such entity shall protect 
        proprietary information submitted for review in the standards-
        setting and certification processes from release not 
        specifically authorized by the owner of such information, even 
        after such entity ceases to be so engaged.
    ``(e) Bell Operating Company Equipment Procurement and Sales.--
            ``(1) Objective basis.--Each Bell operating company and any 
        entity acting on behalf of a Bell operating company shall make 
        procurement decisions and award all supply contracts for 
        equipment, services, and software on the basis of an objective 
        assessment of price, quality, delivery, and other commercial 
        factors.
            ``(2) Sales restrictions.--A Bell operating company engaged 
        in manufacturing may not restrict sales to any local exchange 
        carrier of telecommunications equipment, including software 
        integral to the operation of such equipment and related 
        upgrades.
            ``(3) Protection of proprietary information.--A Bell 
        operating company and any entity it owns or otherwise controls 
        shall protect the proprietary information submitted for 
        procurement decisions from release not specifically authorized 
        by the owner of such information.
    ``(f) Administration and Enforcement Authority.--For the purposes 
of administering and enforcing the provisions of this section and the 
regulations prescribed thereunder, the Commission shall have the same 
authority, power, and functions with respect to any Bell operating 
company or any affiliate thereof as the Commission has in administering 
and enforcing the provisions of this title with respect to any common 
carrier subject to this Act.
    ``(g) Exception for Previously Authorized Activities.--Nothing in 
this section shall prohibit a Bell operating company or affiliate from 
engaging, at any time after the date of the enactment of this part, in 
any activity as authorized by an order entered by the United States 
District Court for the District of Columbia pursuant to section VII or 
VIII(C) of the Modification of Final Judgment, if--
            ``(1) such order was entered on or before the date of the 
        enactment of this part, or
            ``(2) a request for such authorization was pending before 
        such court on the date of the enactment of this part.
    ``(h) Antitrust Laws.--Nothing in this section shall be construed 
to modify, impair, or supersede the applicability of any of the 
antitrust laws.
    ``(i) Definition.--As used in this section, the term 
`manufacturing' has the same meaning as such term has under the 
Modification of Final Judgment.
``SEC. 272. ELECTRONIC PUBLISHING BY BELL OPERATING COMPANIES.

    ``(a) Limitations.--No Bell operating company or any affiliate may 
engage in the provision of electronic publishing that is disseminated 
by means of such Bell operating company's or any of its affiliates' 
basic telephone service, except that nothing in this section shall 
prohibit a separated affiliate or electronic publishing joint venture 
operated in accordance with this section from engaging in the provision 
of electronic publishing.
    ``(b) Separated Affiliate or Electronic Publishing Joint Venture 
Requirements.--A separated affiliate or electronic publishing joint 
venture shall be operated independently from the Bell operating 
company. Such separated affiliate or joint venture and the Bell 
operating company with which it is affiliated shall--
            ``(1) maintain separate books, records, and accounts and 
        prepare separate financial statements;
            ``(2) not incur debt in a manner that would permit a 
        creditor of the separated affiliate or joint venture upon 
        default to have recourse to the assets of the Bell operating 
        company;
            ``(3) carry out transactions (A) in a manner consistent 
        with such independence, (B) pursuant to written contracts or 
        tariffs that are filed with the Commission and made publicly 
        available, and (C) in a manner that is auditable in accordance 
        with generally accepted auditing standards;
            ``(4) value any assets that are transferred directly or 
        indirectly from the Bell operating company to a separated 
        affiliate or joint venture, and record any transactions by 
        which such assets are transferred, in accordance with such 
        regulations as may be prescribed by the Commission or a State 
        commission to prevent improper cross subsidies;
            ``(5) between a separated affiliate and a Bell operating 
        company--
                    ``(A) have no officers, directors, and employees in 
                common after the effective date of this section; and
                    ``(B) own no property in common;
            ``(6) not use for the marketing of any product or service 
        of the separated affiliate or joint venture, the name, 
        trademarks, or service marks of an existing Bell operating 
        company except for names, trademarks, or service marks that are 
        or were used in common with the entity that owns or controls 
        the Bell operating company;
            ``(7) not permit the Bell operating company--
                    ``(A) to perform hiring or training of personnel on 
                behalf of a separated affiliate;
                    ``(B) to perform the purchasing, installation, or 
                maintenance of equipment on behalf of a separated 
                affiliate, except for telephone service that it 
                provides under tariff or contract subject to the 
                provisions of this section; or
                    ``(C) to perform research and development on behalf 
                of a separated affiliate;
            ``(8) each have performed annually a compliance review--
                    ``(A) that is conducted by an independent entity 
                for the purpose of determining compliance during the 
                preceding calendar year with any provision of this 
                section; and
                    ``(B) the results of which are maintained by the 
                separated affiliate or joint venture and the Bell 
                operating company for a period of 5 years subject to 
                review by any lawful authority;
            ``(9) within 90 days of receiving a review described in 
        paragraph (8), file a report of any exceptions and corrective 
        action with the Commission and allow any person to inspect and 
        copy such report subject to reasonable safeguards to protect 
        any proprietary information contained in such report from being 
        used for purposes other than to enforce or pursue remedies 
        under this section.
    ``(c) Joint Marketing.--
            ``(1) In general.--Except as provided in paragraph (2)--
                    ``(A) a Bell operating company shall not carry out 
                any promotion, marketing, sales, or advertising for or 
                in conjunction with a separated affiliate; and
                    ``(B) a Bell operating company shall not carry out 
                any promotion, marketing, sales, or advertising for or 
                in conjunction with an affiliate that is related to the 
                provision of electronic publishing.
            ``(2) Permissible joint activities.--
                    ``(A) Joint telemarketing.--A Bell operating 
                company may provide inbound telemarketing or referral 
                services related to the provision of electronic 
                publishing for a separated affiliate, electronic 
                publishing joint venture, affiliate, or unaffiliated 
                electronic publisher, provided that if such services 
                are provided to a separated affiliate, electronic 
                publishing joint venture, or affiliate, such services 
                shall be made available to all electronic publishers on 
                request, on nondiscriminatory terms.
                    ``(B) Teaming arrangements.--A Bell operating 
                company may engage in nondiscriminatory teaming or 
                business arrangements to engage in electronic 
                publishing with any separated affiliate or with any 
                other electronic publisher if (i) the Bell operating 
                company only provides facilities, services, and basic 
                telephone service information as authorized by this 
                section, and (ii) the Bell operating company does not 
                own such teaming or business arrangement.
                    ``(C) Electronic publishing joint ventures.--A Bell 
                operating company or affiliate may participate on a 
                nonexclusive basis in electronic publishing joint 
                ventures with entities that are not any Bell operating 
                company, affiliate, or separated affiliate to provide 
                electronic publishing services, if the Bell operating 
                company or affiliate has not more than a 50 percent 
                direct or indirect equity interest (or the equivalent 
                thereof) or the right to more than 50 percent of the 
                gross revenues under a revenue sharing or royalty 
                agreement in any electronic publishing joint venture. 
                Officers and employees of a Bell operating company or 
                affiliate participating in an electronic publishing 
                joint venture may not have more than 50 percent of the 
                voting control over the electronic publishing joint 
                venture. In the case of joint ventures with small, 
                local electronic publishers, the Commission for good 
                cause shown may authorize the Bell operating company or 
                affiliate to have a larger equity interest, revenue 
                share, or voting control but not to exceed 80 percent. 
                A Bell operating company participating in an electronic 
                publishing joint venture may provide promotion, 
                marketing, sales, or advertising personnel and services 
                to such joint venture.
    ``(d) Private Right of Action.--
            ``(1) Damages.--Any person claiming that any act or 
        practice of any Bell operating company, affiliate, or separated 
        affiliate constitutes a violation of this
         section may file a complaint with the Commission or bring suit 
as provided in section 207 of this Act, and such Bell operating 
company, affiliate, or separated affiliate shall be liable as provided 
in section 206 of this Act; except that damages may not be awarded for 
a violation that is discovered by a compliance review as required by 
subsection (b)(7) of this section and corrected within 90 days.
            ``(2) Cease and desist orders.--In addition to the 
        provisions of paragraph (1), any person claiming that any act 
        or practice of any Bell operating company, affiliate, or 
        separated affiliate constitutes a violation of this section may 
        make application to the Commission for an order to cease and 
        desist such violation or may make application in any district 
        court of the United States of competent jurisdiction for an 
        order enjoining such acts or practices or for an order 
        compelling compliance with such requirement.
    ``(e) Separated Affiliate Reporting Requirement.--Any separated 
affiliate under this section shall file with the Commission annual 
reports in a form substantially equivalent to the Form 10-K required by 
regulations of the Securities and Exchange Commission.
    ``(f) Effective Dates.--
            ``(1) Transition.--Any electronic publishing service being 
        offered to the public by a Bell operating company or affiliate 
        on the date of enactment of this section shall have one year 
        from such date of enactment to comply with the requirements of 
        this section.
            ``(2) Sunset.--The provisions of this section shall not 
        apply to conduct occurring after June 30, 2000.
    ``(g) Definition of Electronic Publishing.--
            ``(1) In general.--The term `electronic publishing' means 
        the dissemination, provision, publication, or sale to an 
        unaffiliated entity or person, of any one or more of the 
        following: news (including sports); entertainment (other than 
        interactive games); business, financial, legal, consumer, or 
        credit materials; editorials, columns, or features; 
        advertising; photos or images; archival or research material; 
        legal notices or public records; scientific, educational, 
        instructional, technical, professional, trade, or other 
        literary materials; or other like or similar information.
            ``(2) Exceptions.--The term `electronic publishing' shall 
        not include the following services:
                    ``(A) Information access, as that term is defined 
                by the Modification of Final Judgment.
                    ``(B) The transmission of information as a common 
                carrier.
                    ``(C) The transmission of information as part of a 
                gateway to an information service that does not involve 
                the generation or alteration of the content of 
                information, including data transmission, address 
                translation, protocol conversion, billing management, 
                introductory information content, and navigational 
                systems that enable users to access electronic 
                publishing services, which do not affect the 
                presentation of such electronic publishing services to 
                users.
                    ``(D) Voice storage and retrieval services, 
                including voice messaging and electronic mail services.
                    ``(E) Data processing or transaction processing 
                services that do not involve the generation or 
                alteration of the content of information.
                    ``(F) Electronic billing or advertising of a Bell 
                operating company's regulated telecommunications 
                services.
                    ``(G) Language translation or data format 
                conversion.
                    ``(H) The provision of information necessary for 
                the management, control, or operation
                 of a telephone company telecommunications system.
                    ``(I) The provision of directory assistance that 
                provides names, addresses, and telephone numbers and 
                does not include advertising.
                    ``(J) Caller identification services.
                    ``(K) Repair and provisioning databases and credit 
                card and billing validation for telephone company 
                operations.
                    ``(L) 911-E and other emergency assistance 
                databases.
                    ``(M) Any other network service of a type that is 
                like or similar to these network services and that does 
                not involve the generation or alteration of the content 
                of information.
                    ``(N) Any upgrades to these network services that 
                do not involve the generation or alteration of the 
                content of information.
                    ``(O) Video programming or full motion video 
                entertainment on demand.
    ``(h) Additional Definitions.--As used in this section--
            ``(1) The term `affiliate' means any entity that, directly 
        or indirectly, owns or controls, is owned or controlled by, or 
        is under common ownership or control with, a Bell operating 
        company. Such term shall not include a separated affiliate.
            ``(2) The term `basic telephone service' means wireline 
        telephone exchange service provided by a Bell operating company 
        in a telephone exchange area, except that such term does not 
        include--
                    ``(A) a competitive wireline telephone exchange 
                service provided in a telephone exchange area where 
                another entity provides a wireline telephone exchange 
                service that was provided on January 1, 1984, and
                    ``(B) a commercial mobile service.
            ``(3) The term `basic telephone service information' means 
        network and customer information of a Bell operating company 
        and other information acquired by a Bell operating company as a 
        result of its engaging in the provision of basic telephone 
        service.
            ``(4) The term `control' has the meaning that it has in 17 
        C.F.R. 240.12b-2, the regulations promulgated by the Securities 
        and Exchange Commission pursuant to the Securities Exchange Act 
        of 1934 (15 U.S.C. 78a et seq.) or any successor provision to 
        such section.
            ``(5) The term `electronic publishing joint venture' means 
        a joint venture owned by a Bell operating company or affiliate 
        that engages in the provision of electronic publishing which is 
        disseminated by means of such Bell operating company's or any 
        of its affiliates' basic telephone service.
            ``(6) The term `entity' means any organization, and 
        includes corporations, partnerships, sole proprietorships, 
        associations, and joint ventures.
            ``(7) The term `inbound telemarketing' means the marketing 
        of property, goods, or services by telephone to a customer or 
        potential customer who initiated the call.
            ``(8) The term `own' with respect to an entity means to 
        have a direct or indirect equity interest (or the equivalent 
        thereof) of more than 10 percent of an entity, or the right to 
        more than 10 percent of the gross revenues of an entity under a 
        revenue sharing or royalty agreement.
            ``(9) The term `separated affiliate' means a corporation 
        under common ownership or control with a Bell operating company 
        that does not own or control a Bell operating company and is 
        not owned or controlled by a Bell operating company and that 
        engages in the provision of electronic publishing which is 
        disseminated by means of such Bell operating company's or any 
        of its affiliates' basic telephone service.
            ``(10) The term `Bell operating company' has the meaning 
        provided in section 3, except that such term includes any 
        entity or corporation that is owned or controlled by such a 
        company (as so defined) but does not include an electronic 
        publishing joint venture owned by such an entity or 
        corporation.
``SEC. 273. ALARM MONITORING AND TELEMESSAGING SERVICES BY BELL 
              OPERATING COMPANIES.

    ``(a) Delayed Entry Into Alarm Monitoring.--
            ``(1) Prohibition.--No Bell operating company or affiliate 
        thereof shall engage in the provision of alarm monitoring 
        services before the date which is 6 years after the date of 
        enactment of this part.
            ``(2) Existing activities.--Paragraph (1) shall not apply 
        to any provision of alarm monitoring services in which a Bell 
        operating company or affiliate is lawfully engaged as of 
        January 1, 1995, except that such Bell operating company or any 
        affiliate may not acquire or otherwise obtain control of 
        additional entities providing alarm monitoring services after 
        such date.
    ``(b) Nondiscrimination.--A common carrier engaged in the provision 
of alarm monitoring services or telemessaging services shall--
            ``(1) provide nonaffiliated entities, upon reasonable 
        request, with the network services it provides to its own alarm 
        monitoring or telemessaging operations, on nondiscriminatory 
        terms and conditions; and
            ``(2) not subsidize its alarm monitoring services or its 
        telemessaging services either directly or indirectly from 
        telephone exchange service operations.
    ``(c) Expedited Consideration of Complaints.--The Commission shall 
establish procedures for the receipt and review of complaints 
concerning violations of subsection (b) or the regulations thereunder 
that result in material financial harm to a provider of alarm 
monitoring service or telemessaging service. Such procedures shall 
ensure that the Commission will make a final determination with respect 
to any such complaint within 120 days after receipt of the complaint. 
If the complaint contains an appropriate showing that the alleged 
violation occurred, as determined by the Commission in accordance with 
such regulations, the Commission shall, within 60 days after receipt of 
the complaint, order the common carrier and its affiliates to cease 
engaging in such violation pending such final determination.
    ``(d) Definitions.--As used in this section:
            ``(1) Alarm monitoring service.--The term `alarm monitoring 
        service' means a service that uses a device located at a 
        residence, place of business, or other fixed premises--
                    ``(A) to receive signals from other devices located 
                at or about such premises regarding a possible threat 
                at such premises to life, safety, or property, from 
                burglary, fire, vandalism, bodily injury, or other 
                emergency, and
                    ``(B) to transmit a signal regarding such threat by 
                means of transmission facilities of a Bell operating 
                company or one of its affiliates to a remote monitoring 
                center to alert a person at such center of the need to 
                inform the customer or another person or police, fire, 
                rescue, security, or public safety personnel of such 
                threat,
        but does not include a service that uses a medical monitoring 
        device attached to an individual for the automatic surveillance 
        of an ongoing medical condition.
            ``(2) Telemessaging services.--The term `telemessaging 
        services' means voice mail and voice storage and retrieval 
        services provided over telephone lines for telemessaging 
        customers and any live operator services used to answer, 
        record, transcribe, and relay messages (other than 
        telecommunications relay services) from incoming telephone 
        calls on behalf of the telemessaging customers (other than any 
        service incidental to directory assistance).
``SEC. 274. PROVISION OF PAYPHONE SERVICE.

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

SEC. 103. FORBEARANCE FROM REGULATION.

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

``SEC. 230. FORBEARANCE FROM REGULATION.

    ``(a) Authority to Forbear.--The Commission shall forbear from 
applying any provision of this part or part II (other than sections 
201, 202, 208, 243, and 248), or any regulation thereunder, to a common 
carrier or service, or class of carriers or services, in any or some of 
its or their geographic markets, if the Commission determines that--
            ``(1) enforcement of such provision or regulation is not 
        necessary to ensure that the charges, practices, 
        classifications, or regulations by, for, or in connection
         with that carrier or service are just and reasonable and are 
not unjustly or unreasonably discriminatory;
            ``(2) enforcement of such regulation or provision is not 
        necessary for the protection of consumers; and
            ``(3) forbearance from applying such provision or 
        regulation is consistent with the public interest.
    ``(b) Competitive Effect To Be Weighed.--In making the 
determination under subsection (a)(3), the Commission shall consider 
whether forbearance from enforcing the provision or regulation will 
promote competitive market conditions, including the extent to which 
such forbearance will enhance competition among providers of 
telecommunications services. If the Commission determines that such 
forbearance will promote competition among providers of 
telecommunications services, that determination may be the basis for a 
Commission finding that forbearance is in the public interest.''.

SEC. 104. PRIVACY OF CUSTOMER INFORMATION.

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

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

    Section 224 of the Act (47 U.S.C. 224) is amended--
            (1) in subsection (a)(4)--
                    (A) by inserting after ``system'' the following: 
                ``or a provider of telecommunications service''; and
                    (B) by inserting after ``utility'' the following: 
                ``, which attachment may be used by such entities to 
                provide cable service or any telecommunications 
                service'';
            (2) in subsection (c)(2)(B), by striking ``cable television 
        services'' and inserting ``the services offered via such 
        attachments'';
            (3) by redesignating subsection (d)(2) as subsection 
        (d)(4); and
            (4) by striking subsection (d)(1) and inserting the 
        following:
    ``(d)(1) For purposes of subsection (b) of this section, the 
Commission shall, no later than 1 year after the date of enactment of 
the Communications Act of 1995, prescribe
 regulations for ensuring that utilities charge just and reasonable and 
nondiscriminatory rates for pole attachments provided to all providers 
of telecommunications services, including such attachments used by 
cable television systems to provide telecommunications services (as 
defined in section 3 of this Act). Such regulations shall--
            ``(A) recognize that the entire pole, duct, conduit, or 
        right-of-way other than the usable space is of equal benefit 
        all entities attaching to the pole and therefore apportion the 
        cost of the space other than the usable space equally among all 
        such attachments;
            ``(B) recognize that the usable space is of proportional 
        benefit to all entities attaching to the pole, duct, conduit or 
        right-of-way and therefore apportion the cost of the usable 
        space according to the percentage of usable space required for 
        each entity; and
            ``(C) allow for reasonable terms and conditions relating to 
        health, safety, and the provision of reliable utility service.
    ``(2) The final regulations prescribed by the Commission pursuant 
to paragraph (1) shall not apply to a cable television system that 
solely provides cable service as defined in section 602(6) of this Act; 
instead, the pole attachment rate for such systems shall assure a 
utility the recovery of not less than the additional costs of providing 
pole attachments, nor more than an amount determined by multiplying the 
percentage of the total usable space, or the percentage of the total 
duct or conduit capacity, which is occupied by the pole attachment by 
the sum of the operating expenses and actual capital costs of the 
utility attributable to the entire pole, duct, conduit, or right-of-
way.
    ``(3) Whenever the owner of a conduit or right-of-way intends to 
modify or alter such conduit or right-of-way, the owner shall provide 
written notification of such action to any entity that has obtained an 
attachment to such conduit or right-of-way so that such entity may have 
a reasonable opportunity to add to or modify its existing attachment. 
Any entity that adds to or modifies its existing attachment after 
receiving such notification shall bear a proportionate share of the 
costs incurred by the owner in making such conduit or right-of-way 
accessible.''.
SEC. 106. PREEMPTION OF FRANCHISING AUTHORITY REGULATION OF 
              TELECOMMUNICATIONS SERVICES.

    (a) Telecommunications Services.--Section 621(b) of the Act (47 
U.S.C. 541(c)) is amended by adding at the end thereof the following 
new paragraph:
    ``(3)(A) To the extent that a cable operator or affiliate thereof 
is engaged in the provision of telecommunications services--
            ``(i) such cable operator or affiliate shall not be 
        required to obtain a franchise under this title; and
            ``(ii) the provisions of this title shall not apply to such 
        cable operator or affiliate.
    ``(B) A franchising authority may not impose any requirement that 
has the purpose or effect of prohibiting, limiting, restricting, or 
conditioning the provision of a telecommunications service by a cable 
operator or an affiliate thereof.
    ``(C) A franchising authority may not order a cable operator or 
affiliate thereof--
            ``(i) to discontinue the provision of a telecommunications 
        service, or
            ``(ii) to discontinue the operation of a cable system, to 
        the extent such cable system is used for the provision of a 
        telecommunications service, by reason of the failure of such 
        cable operator or affiliate thereof to obtain a franchise or 
        franchise renewal under this title with respect to the 
        provision of such telecommunications service.
    ``(D) A franchising authority may not require a cable operator to 
provide any telecommunications service or facilities as a condition of 
the initial grant of a franchise or a franchise renewal.''.
    (b) Franchise Fees.--Section 622(b) of the Act (47 U.S.C. 542(b)) 
is amended by inserting ``to provide cable services'' immediately 
before the period at the end of the first sentence thereof.
SEC. 107. FACILITIES SITING; RADIO FREQUENCY EMISSION STANDARDS.

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

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

    (a) Amendment.--Section 228(c) of the Act (47 U.S.C. 228(c)) is 
amended--
            (1) by striking subparagraph (C) of paragraph (7) and 
        inserting the following:
                    ``(C) the calling party being charged for 
                information conveyed during the call unless--
                            ``(i) the calling party has a written 
                        subscription agreement with the information 
                        provider that meets the requirements of 
                        paragraph (8); or
                            ``(ii) the calling party is charged in 
                        accordance with paragraph (9); or''; and
            (2) by adding at the end the following new paragraphs:
            ``(8) Subscription agreements for billing for information 
        provided via toll-free calls.--
                    ``(A) In general.--For purposes of paragraph 
                (7)(C)(i), a written subscription agreement shall 
                specify the terms and conditions under which the 
                information is offered and include--
                            ``(i) the rate at which charges are 
                        assessed for the information;
                            ``(ii) the information provider's name;
                            ``(iii) the information provider's business 
                        address;
                            ``(iv) the information provider's regular 
                        business telephone number;
                            ``(v) the information provider's agreement 
                        to notify the subscriber at least 30 days in 
                        advance of all future changes in the rates 
                        charged for the information;
                            ``(vi) the signature of a legally competent 
                        subscriber agreeing to the terms of the 
                        agreement; and
                            ``(vii) the subscriber's choice of payment 
                        method, which may be by phone bill or credit, 
                        prepaid, or calling card.
                    ``(B) Billing arrangements.--If a subscriber 
                elects, pursuant to subparagraph (A)(vii), to pay by 
                means of a phone bill--
                            ``(i) the agreement shall clearly explain 
                        that the subscriber will be assessed for calls 
                        made to the information service from the 
                        subscriber's phone line;
                            ``(ii) the phone bill shall include, in 
                        prominent type, the following disclaimer:
                                    `Common carriers may not disconnect 
                                local or long distance telephone 
                                service for failure to pay disputed 
                                charges for information services.'; and
                            ``(iii) the phone bill shall clearly list 
                        the 800 number dialed.
                    ``(C) Use of pin's to prevent unauthorized use.--A 
                written agreement does not meet the requirements of 
                this paragraph unless it provides the subscriber a 
                personal identification number to obtain access to the 
                information provided, and includes instructions on its 
                use.
                    ``(D) Exceptions.--Notwithstanding paragraph 
                (7)(C), a written agreement that meets the requirements 
                of this paragraph is not required--
                            ``(i) for services provided pursuant to a 
                        tariff that has been approved or permitted to 
                        take effect by the Commission or a State 
                        commission; or
                            ``(ii) for any purchase of goods or of 
                        services that are not information services.
                    ``(E) Termination of service.--On complaint by any 
                person, a carrier may terminate the provision of 
                service to an information provider unless the provider 
                supplies evidence of a written agreement that meets the 
                requirements of this section. The remedies provided in 
                this paragraph are in addition to any other remedies 
                that are available under title V of this Act.
            ``(9) Charges by credit, prepaid, or calling card in 
        absence of agreement.--For purposes of paragraph (7)(C)(ii), a 
        calling party is not charged in accordance with this paragraph 
        unless the calling party is charged by means of a credit, 
        prepaid, or calling card and the information service provider 
        includes in response to each call an introductory disclosure 
        message that--
                    ``(A) clearly states that there is a charge for the 
                call;
                    ``(B) clearly states the service's total cost per 
                minute and any other fees for the service or for any 
                service to which the caller may be transferred;
                    ``(C) explains that the charges must be billed on 
                either a credit, prepaid, or calling card;
                    ``(D) asks the caller for the credit or calling 
                card number;
                    ``(E) clearly states that charges for the call 
                begin at the end of the introductory message; and
                    ``(F) clearly states that the caller can hang up at 
                or before the end of the introductory message without 
                incurring any charge whatsoever.
            ``(10) Definition of calling card.--As used in this 
        subsection, the term `calling card' means an identifying number 
        or code unique to the individual, that is issued to the 
        individual by a common carrier and enables the individual to be 
        charged by means of a phone bill for charges incurred 
        independent of where the call originates.''.
    (b) Regulations.--The Federal Communications Commission shall 
revise its regulations to comply with the amendment made by subsection 
(a) of this section within 180 days after the date of enactment of this 
Act.
SEC. 110. REPORT ON MEANS OF RESTRICTING ACCESS TO UNWANTED MATERIAL IN 
              INTERACTIVE TELECOMMUNICATIONS SYSTEMS.

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

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

SEC. 201. CABLE SERVICE PROVIDED BY TELEPHONE COMPANIES.

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

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

``SEC. 651. DEFINITIONS.

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

``SEC. 652. SEPARATE VIDEO PROGRAMMING AFFILIATE.

    ``(a) In General.--Except as provided in subsection (d) of this 
section and section 613(b)(3), a common carrier subject to title II of 
this Act shall not provide video programming directly to subscribers in 
its telephone service area unless such video programming is provided 
through a video programming affiliate that is separate from such 
carrier.
    ``(b) Books and Marketing.--
            ``(1) In general.--A video programming affiliate of a 
        common carrier shall--
                    ``(A) maintain books, records, and accounts 
                separate from such carrier which identify all 
                transactions with such carrier;
                    ``(B) carry out directly (or through any 
                nonaffiliated person) its own promotion, except that 
                institutional advertising carried out by such carrier 
                shall be permitted so long as each party bears its pro 
                rata share of the costs; and
                    ``(C) not own real or personal property in common 
                with such carrier.
            ``(2) Inbound telemarketing and referral.--Notwithstanding 
        paragraph (1)(B), a common carrier may provide telemarketing or 
        referral services in response to the call of a customer or 
        potential customer related to the provision of video 
        programming by a video programming affiliate of such carrier. 
        If such services are provided to a video programming affiliate, 
        such services shall be made available to any video programmer 
        or cable operator on request, on nondiscriminatory terms, at 
        just and reasonable prices.
            ``(3) Joint marketing.--Notwithstanding paragraph (1)(B) or 
        section 613(b)(3), a common carrier may market video 
        programming directly upon a showing to the Commission that a 
        cable operator or other entity directly or indirectly provides 
        telecommunications services within the telephone service area 
        of the common carrier, and markets such telecommunications 
        services jointly with video programming services. The common 
        carrier shall specify the geographic region covered by the 
        showing. The Commission shall approve or disapprove such 
        showing within 60 days after the date of its submission.
    ``(c) Business Transactions With Carrier.--Any contract, agreement, 
arrangement, or other manner of conducting business, between a common 
carrier and its video programming affiliate, providing for--
            ``(1) the sale, exchange, or leasing of property between 
        such affiliate and such carrier,
            ``(2) the furnishing of goods or services between such 
        affiliate and such carrier, or
            ``(3) the transfer to or use by such affiliate for its 
        benefit of any asset or resource of such carrier,
shall be on a fully compensatory and auditable basis, shall be without 
cost to the telephone service ratepayers of the carrier, and shall be 
in compliance with regulations established by the Commission that will 
enable the Commission to assess the compliance of any transaction.
    ``(d) Waiver.--
            ``(1) Criteria for waiver.--The Commission may waive any of 
        the requirements of this section for small telephone companies 
        or telephone companies serving rural areas, if the Commission 
        determines, after notice and comment, that--
                    ``(A) such waiver will not affect the ability of 
                the Commission to ensure that all video programming 
                activity is carried out without any support from 
                telephone ratepayers;
                    ``(B) the interests of telephone ratepayers and 
                cable subscribers will not be harmed if such waiver is 
                granted;
                    ``(C) such waiver will not adversely affect the 
                ability of persons to obtain access to the video 
                platform of such carrier; and
                    ``(D) such waiver otherwise is in the public 
                interest.
            ``(2) Deadline for action.--The Commission shall act to 
        approve or disapprove a waiver application within 180 days 
        after the date it is filed.
            ``(3) Continued applicability of section 656.--In the case 
        of a common carrier that obtains a waiver under this 
        subsection, any requirement that section 656 applies to a video 
        programming affiliate shall instead apply to such carrier.
    ``(e) Sunset of Requirements.--The provisions of this section shall 
cease to be effective on July 1, 2000.

``SEC. 653. ESTABLISHMENT OF VIDEO PLATFORM.

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

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

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

``SEC. 655. PROHIBITION ON BUY OUTS.

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

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

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

``SEC. 657. RURAL AREA EXEMPTION.

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

    (a) Definition of Cable Service.--Section 602(6)(B) of the Act (47 
U.S.C. 522(6)(B)) is amended by inserting ``or use'' after ``the 
selection''.
    (b) Clustering.--Section 613 of the Act (47 U.S.C. 533) is amended 
by adding at the end the following new subsection:
    ``(i) Acquisition of Cable Systems.--Except as provided in section 
655, the Commission may not require divestiture of, or restrict or 
prevent the acquisition of, an ownership interest in a cable system by 
any person based in whole or in part on the geographic location of such 
cable system.''.
    (c) Equipment.--Section 623(a) of the Act (47 U.S.C. 543(a)) is 
amended--
            (1) in paragraph (6)--
                    (A) by striking ``paragraph (4)'' and inserting 
                ``paragraph (5)'';
                    (B) by striking ``paragraph (5)'' and inserting 
                ``paragraph (6)''; and
                    (C) by striking ``paragraph (3)'' and inserting 
                ``paragraph (4)'';
            (2) by redesignating paragraphs (3) through (6) as 
        paragraphs (4) through (7), respectively; and
            (3) by inserting after paragraph (2) the following new 
        paragraph:
            ``(3) Equipment.--If the Commission finds that a cable 
        system is subject to effective competition under subparagraph 
        (D) of subsection (l)(1), the rates for equipment, 
        installations, and connections for additional television 
        receivers (other than equipment, installations, and connections 
        furnished by such system to subscribers who receive only a rate 
        regulated basic service tier) shall not be subject to 
        regulation by the Commission or by a State or franchising 
        authority. If the Commission finds that a cable system is 
        subject to effective competition under subparagraph (A), (B), 
        or (C) of subsection (l)(1), the rates for any equipment, 
        installations, and connections furnished by such system to any 
        subscriber shall not be subject to regulation by the 
        Commission, or by a State or franchising authority. No Federal 
        agency, State, or franchising authority may establish the price 
        or rate for the installation, sale, or lease of any equipment 
        furnished to any subscriber by a cable system solely in 
        connection with video programming offered on a per channel or 
        per program basis.''.
    (d) Limitation on Basic Tier Rate Increases; Scope of Review.--
Section 623(a) of the Act (47 U.S.C. 543(a)) is further amended by 
adding at the end the following new paragraph:
            ``(8) Limitation on basic tier rate increases; scope of 
        review.--A cable operator may not increase its basic service 
        tier rate more than once every 6 months. Such increase may be 
        implemented, using any reasonable billing or proration method, 
        30 days after providing notice to subscribers and the 
        appropriate regulatory authority. The rate resulting from such 
        increase shall be deemed reasonable and shall not be subject to 
        reduction or refund if the franchising authority or the 
        Commission, as appropriate, does not complete its review and 
        issue a final order within 90 days after implementation of such 
        increase. The review by the franchising authority or the 
        Commission of any future increase in such rate shall be limited 
        to the incremental change in such rate effected by such 
        increase.''.
    (e) National Information Infrastructure Development.--Section 
623(a) of the Act (47 U.S.C. 543) is further amended by adding at the 
end the following new paragraph:
            ``(9) National information infrastructure.--
                    ``(A) Purpose.--It is the purpose of this paragraph 
                to--
                            ``(i) promote the development of the 
                        National Information Infrastructure;
                            ``(ii) enhance the competitiveness of the 
                        National Information Infrastructure by ensuring 
                        that cable operators have incentives comparable 
                        to other industries to develop such 
                        infrastructure; and
                            ``(iii) encourage the rapid deployment of 
                        digital technology necessary to the development 
                        of the National Information Infrastructure.
                    ``(B) Aggregation of equipment costs.--The 
                Commission shall allow cable operators, pursuant to any 
                rules promulgated under subsection (b)(3), to 
                aggregate, on a franchise, system, regional, or company 
                level, their equipment costs into broad categories, 
                such as converter boxes, regardless of the varying 
                levels of functionality of the equipment within each 
                such broad category. Such aggregation shall not be 
                permitted with respect to equipment used by subscribers 
                who receive only a rate regulated basic service tier.
                    ``(C) Revision to commission rules; forms.--Within 
                120 days of the date of enactment of this paragraph, 
                the Commission shall issue revisions to the appropriate 
                rules and forms necessary to implement subparagraph 
                (B).''.
    (f) Complaint Threshold; Scope of Commission Review.--Section 
623(c) of the Act (47 U.S.C. 543(c)) is amended--
            (1) by striking paragraph (3) and inserting the following:
            ``(3) Review of complaints.--
                    ``(A) Complaint threshold.--The Commission shall 
                have the authority to review any increase in the rates 
                for cable programming services implemented after the 
                date of enactment of the Communications Act of 1995 
                only if, within 90 days after such increase becomes 
                effective, at least 10 subscribers to such services or 
                5 percent of the subscribers to such services, 
                whichever is greater, file separate, individual 
                complaints against such increase with the Commission in 
                accordance with the requirements established under 
                paragraph (1)(B).
                    ``(B) Time period for commission review.--The 
                Commission shall complete its review of any such 
                increase and issue a final order within 90 days after 
                it receives the number of complaints required by 
                subparagraph (A).
            ``(4) Treatment of pending cable programming services 
        complaints.--Upon enactment of the Communications Act of 1995, 
        the Commission shall suspend the processing of all pending 
        cable programming services rate complaints. These pending 
        complaints shall be counted by the Commission toward the 
        complaint threshold specified in paragraph (3)(A). Parties 
        shall have an additional 90 days from the date of enactment of 
        such Act to file complaints about prior increases in cable 
        programming services rates if such rate increases were already 
        subject to a
         valid, pending complaint on such date of enactment. At the 
expiration of such 90-day period, the Commission shall dismiss all 
pending cable programming services rate cases for which the complaint 
threshold has not been met, and may resume its review of those pending 
cable programming services rate cases for which the complaint threshold 
has been met, which review shall be completed within 180 days after the 
date of enactment of the Communications Act of 1995.
            ``(5) Scope of commission review.--A cable programming 
        services rate shall be deemed not unreasonable and shall not be 
        subject to reduction or refund if--
                    ``(A) such rate was not the subject of a pending 
                complaint at the time of enactment of the 
                Communications Act of 1995;
                    ``(B) such rate was the subject of a complaint that 
                was dismissed pursuant to paragraph (4);
                    ``(C) such rate resulted from an increase for which 
                the complaint threshold specified in paragraph (3)(A) 
                has not been met;
                    ``(D) the Commission does not complete its review 
                and issue a final order in the time period specified in 
                paragraph (3)(B) or (4); or
                    ``(E) the Commission issues an order finding such 
                rate to be not unreasonable.
        The review by the Commission of any future increase in such 
        rate shall be limited to the incremental change in such rate 
        effected by such increase.'';
            (2) in paragraph (1)(B) by striking ``obtain Commission 
        consideration and resolution of whether the rate in question is 
        unreasonable'' and inserting ``be counted toward the complaint 
        threshold specified in paragraph (3)(A)''; and
            (3) in paragraph (1)(C) by striking ``such complaint'' and 
        inserting in lieu thereof ``the first complaint''.
    (g) Uniform Rate Structure.--Section 623(d) of the Act (47 U.S.C. 
543(d)) is amended to read as follows:
    ``(d) Uniform Rate Structure.--A cable operator shall have a 
uniform rate structure throughout its franchise area for the provision 
of cable services that are regulated by the Commission or the 
franchising authority. Bulk discounts to multiple dwelling units shall 
not be subject to this requirement.''.
    (h) Effective Competition.--Section 623(l)(1) of the Act (47 U.S.C. 
543(l)(1)) is amended--
            (1) in subparagraph (B)(ii)--
                    (A) by inserting ``all'' before ``multichannel 
                video programming distributors''; and
                    (B) by striking ``or'' at the end thereof;
            (2) by striking the period at the end of subparagraph (C) 
        and inserting ``; or''; and
            (3) by adding at the end the following:
                    ``(D) with respect to cable programming services 
                and subscriber equipment, installations, and 
                connections for additional television receivers (other 
                than equipment, installations, and connections 
                furnished to subscribers who receive only a rate 
                regulated basic service tier)--
                            ``(i) a common carrier has been authorized 
                        by the Commission to construct facilities to 
                        provide video dialtone service in the cable 
                        operator's franchise area;
                            ``(ii) a common carrier has been authorized 
                        by the Commission or pursuant to a franchise to 
                        provide video programming directly to 
                        subscribers in the franchise area; or
                            ``(iii) the Commission has completed all 
                        actions necessary (including any 
                        reconsideration) to prescribe regulations 
                        pursuant to section 653(b)(1) relating to video 
                        platforms.''.
    (i) Relief for Small Cable Operators.--Section 623 of the Act (47 
U.S.C. 543) is amended by adding at the end the following new 
subsection:
    ``(m) Small Cable Operators.--
            ``(1) Small cable operator relief.--A small cable operator 
        shall not be subject to subsections (a), (b), (c), or (d) in 
        any franchise area with respect to the provision of cable 
        programming services, or a basic service tier where such tier 
        was the only tier offered in such area on December 31, 1994.
            ``(2) Definition of small cable operator.--For purposes of 
        this subsection, `small cable operator' means a cable operator 
        that--
                    ``(A) directly or through an affiliate, serves in 
                the aggregate fewer than 1 percent of all cable 
                subscribers in the United States; and
                    ``(B) is not affiliated with any entity or entities 
                whose gross annual revenues in the aggregate exceed 
                $250,000,000.''.
    (j) Technical Standards.--Section 624(e) of the Act (47 U.S.C. 
544(e)) is amended by striking the last two sentences and inserting the 
following: ``No State or franchising authority may prohibit, condition, 
or restrict a cable system's use of any type of subscriber equipment or 
any transmission technology.''.
    (k) Cable Security Systems.--Section 624A(b)(2) of the Act (47 
U.S.C. 544a(b)(2)) is amended to read as follows:
            ``(2) Cable security systems.--No Federal agency, State, or 
        franchising authority may prohibit a cable operator's use of 
        any security system (including scrambling, encryption, traps, 
        and interdiction), except that the Commission may prohibit the 
        use of any such system solely with respect to the delivery of a 
        basic service tier that, as of January 1, 1995, contained only 
        the signals and programming specified in section 623(b)(7)(A), 
        unless the use of such system is necessary to prevent the 
        unauthorized reception of such tier.''.
    (l) Cable Equipment Compatibility.--Section 624A of the Act (47 
U.S.C. 544A), is amended--
            (1) in subsection (a) by striking ``and'' at the end of 
        paragraph (2), by striking the period at the end of paragraph 
        (3) and inserting ``; and''; and by adding at the end the 
        following new paragraph:
            ``(4) compatibility among televisions, video cassette 
        recorders, and cable systems can be assured with narrow 
        technical standards that mandate a minimum
         degree of common design and operation, leaving all features, 
functions, protocols, and other product and service options for 
selection through open competition in the market.'';
            (2) in subsection (c)(1)--
                    (A) by redesignating subparagraphs (A) and (B) as 
                subparagraphs (B) and (C), respectively; and
                    (B) by inserting before such redesignated 
                subparagraph (B) the following new subparagraph:
                    ``(A) the need to maximize open competition in the 
                market for all features, functions, protocols, and 
                other product and service options of converter boxes 
                and other cable converters unrelated to the 
                descrambling or decryption of cable television 
                signals;''; and
            (3) in subsection (c)(2)--
                    (A) by redesignating subparagraphs (D) and (E) as 
                subparagraphs (E) and (F), respectively; and
                    (B) by inserting after subparagraph (C) the 
                following new subparagraph:
                    ``(D) to ensure that any standards or regulations 
                developed under the authority of this section to ensure 
                compatibility between televisions, video casette 
                recorders, and cable systems do not affect features, 
                functions, protocols, and other product and service 
                options other than those specified in paragraph (1)(B), 
                including telecommunications interface equipment, home 
                automation communications, and computer network 
                services;''.
    (m) Retiering of Basic Tier Services.--Section 625(d) of the Act 
(47 U.S.C. 543(d)) is amended by adding at the end the following new 
sentence: ``Any signals or services carried on the basic service tier 
but not required under section 623(b)(7)(A) may be moved from the basic 
service tier at the operator's sole discretion, provided that the 
removal of such a signal or service from the basic service tier is 
permitted by contract. The movement of such signals or services to an 
unregulated package of services shall not subject such package to 
regulation.''.
    (n) Subscriber Notice.--Section 632 of the Act (47 U.S.C. 552) is 
amended--
            (1) by redesignating subsection (c) as subsection (d); and
            (2) by inserting after subsection (b) the following new 
        subsection:
    ``(c) Subscriber Notice.--A cable operator may provide notice of 
service and rate changes to subscribers using any reasonable written 
means at its sole discretion. Notwithstanding section 623(b)(6) or any 
other provision of this Act, a cable operator shall not be required to 
provide prior notice of any rate change that is the result of a 
regulatory fee, franchise fee, or any other fee, tax, assessment, or 
charge of any kind imposed by any Federal agency, State, or franchising 
authority on the transaction between the operator and the 
subscriber.''.
    (o) Treatment of Prior Year Losses.--
            (1) Amendment.--Section 623 (48 U.S.C. 543) is amended by 
        adding at the end thereof the following:
    ``(n) Treatment of Prior Year Losses.--Notwithstanding any other 
provision of this section or of section 612, losses (including losses 
associated with the acquisitions of such franchise) that were incurred 
prior to September 4, 1992, with respect to a cable system that is 
owned and operated by the original franchisee of such system shall not 
be disallowed, in whole or in part, in the determination of whether the 
rates for any tier of service or any type of equipment that is subject 
to regulation under this section are lawful.''.
            (2) Effective date.--The amendment made by paragraph (1) 
        shall take effect on the date of enactment of this Act and 
        shall be applicable to any rate proposal filed on or after 
        September 4, 1993.

SEC. 203. COMPETITIVE AVAILABILITY OF NAVIGATION DEVICES.

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

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

    ``(a) Definitions.--As used in this section:
            ``(1) The term `telecommunications subscription service' 
        means the provision directly to subscribers of video, voice, or 
        data services for which a subscriber charge is made.
            ``(2) The term `telecommunications system' or a 
        `telecommunications system operator' means a provider of 
        telecommunications subscription service.
    ``(b) Competitive Consumer Availability of Customer Premises 
Equipment.--The Commission shall adopt regulations to assure 
competitive availability, to consumers of telecommunications 
subscription services, of converter boxes, interactive communications 
devices, and other customer premises equipment from manufacturers, 
retailers, and other vendors not affiliated with any telecommunications 
system operator. Such regulations shall take into account the needs of 
owners and distributors of video programming and information services 
to ensure system and signal security and prevent theft of service. Such 
regulations shall not prohibit any telecommunications system operator 
from also offering devices and customer premises equipment to 
consumers, provided that the system operator's charges to consumers for 
such devices and equipment are separately stated and not bundled with 
or subsidized by charges for any telecommunications subscription 
service.
    ``(c) Waiver for New Network Services.--The Commission may waive a 
regulation adopted pursuant to subsection (b) for a limited time upon 
an appropriate showing by a telecommunications system operator that 
such waiver is necessary to the introduction of a new 
telecommunications subscription service.
    ``(d) Sunset.--The regulations adopted pursuant to this section 
shall cease to apply to any market for the acquisition of converter 
boxes, interactive communications devices, or other customer premises 
equipment when the Commission determines that such market is 
competitive.''.

SEC. 204. VIDEO PROGRAMMING ACCESSIBILITY.

    (a) Commission Inquiry.--Within 180 days after the date of 
enactment of this section, the Federal Communications Commission shall 
complete an inquiry to ascertain the level at which video programming 
is closed captioned. Such inquiry shall examine the extent to which 
existing or
 previously published programming is closed captioned, the size of the 
video programming provider or programming owner providing closed 
captioning, the size of the market served, the relative audience shares 
achieved, or any other related factors. The Commission shall submit to 
the Congress a report on the results of such inquiry.
    (b) Accountability Criteria.--Within 18 months after the date of 
enactment, the Commission shall prescribe such regulations as are 
necessary to implement this section. Such regulations shall ensure 
that--
            (1) video programming first published or exhibited after 
        the effective date of such regulations is fully accessible 
        through the provision of closed captions, except as provided in 
        subsection (d); and
            (2) video programming providers or owners maximize the 
        accessibility of video programming first published or exhibited 
        prior to the effective date of such regulations through the 
        provision of closed captions, except as provided in subsection 
        (d).
    (c) Deadlines for Captioning.--Such regulations shall include an 
appropriate schedule of deadlines for the provision of closed 
captioning of video programming.
    (d) Exemptions.--Notwithstanding subsection (b)--
            (1) the Commission may exempt by regulation programs, 
        classes of programs, or services for which the Commission has 
        determined that the provision of closed captioning would be 
        economically burdensome to the provider or owner of such 
        programming;
            (2) a provider of video programming or the owner of any 
        program carried by the provider shall not be obligated to 
        supply closed captions if such action would be inconsistent 
        with contracts in effect on the date of enactment of this Act, 
        except that nothing in this section shall be construed to 
        relieve a video programming provider of its obligations to 
        provide services required by Federal law; and
            (3) a provider of video programming or program owner may 
        petition the Commission for an exemption from the requirements 
        of this section, and the Commission may grant such petition 
        upon a showing that the requirements contained in this section 
        would result in an undue burden.
    (e) Undue Burden.--The term ``undue burden'' means significant 
difficulty or expense. In determining whether the closed captions 
necessary to comply with the requirements of this paragraph would 
result in an undue economic burden, the factors to be considered 
include--
            (1) the nature and cost of the closed captions for the 
        programming;
            (2) the impact on the operation of the provider or program 
        owner;
            (3) the financial resources of the provider or program 
        owner; and
            (4) the type of operations of the provider or program 
        owner.
    (f) Video Descriptions Inquiry.--Within 6 months after the date of 
enactment of this Act, the Commission shall commence an inquiry to 
examine the use of video descriptions on video programming in order to 
ensure the accessibility of video programming to persons with visual 
impairments, and report to Congress on its findings. The Commission's 
report shall assess appropriate methods and schedules for phasing video 
descriptions into the marketplace, technical and quality standards for 
video descriptions, a definition of programming for which video 
descriptions would apply, and other technical and legal issues that the 
Commission deems appropriate. Following the completion of such inquiry, 
the Commission may adopt regulation it deems necessary to promote the 
accessibility of video programming to persons with visual impairments.
    (g) Video Description.--For purposes of this section, ``video 
description'' means the insertion of audio narrated descriptions of a 
television program's key visual elements into natural pauses between 
the program's dialogue.
    (h) Private Rights of Actions Prohibited.--Nothing in this section 
shall be construed to authorize any private right of action to enforce 
any requirement of this section or any regulation thereunder. The 
Commission shall have exclusive jurisdiction with respect to any 
complaint under this section.

SEC. 205. TECHNICAL AMENDMENTS.

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

SEC. 301. BROADCASTER SPECTRUM FLEXIBILITY.

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

``SEC. 336. BROADCAST SPECTRUM FLEXIBILITY.

    ``(a) Commission Action.--If the Commission determines to issue 
additional licenses for advanced television services, the Commission 
shall--
            ``(1) limit the initial eligibility for such licenses to 
        persons that, as of the date of such issuance, are licensed to 
        operate a television broadcast station or hold a permit to 
        construct such a station (or both); and
            ``(2) adopt regulations that allow such licensees or 
        permittees to offer such ancillary or supplementary services on 
        designated frequencies as may be consistent with the public 
        interest, convenience, and necessity.
    ``(b) Contents of Regulations.--In prescribing the regulations 
required by subsection (a), the Commission shall--
            ``(1) only permit such licensee or permittee to offer 
        ancillary or supplementary services if the use of a designated 
        frequency for such services is consistent with the technology 
        or method designated by the Commission for the provision of 
        advanced television services;
            ``(2) limit the broadcasting of ancillary or supplementary 
        services on designated frequencies so as to avoid derogation of 
        any advanced television services, including high definition 
        television broadcasts, that the Commission may require using 
        such frequencies;
            ``(3) apply to any other ancillary or supplementary service 
        such of the Commission's regulations as are applicable to the 
        offering of analogous services by any other person, except that 
        no ancillary or supplementary service shall have any rights to 
        carriage under section 614 or 615 or be deemed a multichannel 
        video programming distributor for purposes of section 628;
            ``(4) adopt such technical and other requirements as may be 
        necessary or appropriate to assure the quality of the signal 
        used to provide advanced television services, and may adopt 
        regulations that stipulate the minimum number of hours per day 
        that such signal must be transmitted; and
            ``(5) prescribe such other regulations as may be necessary 
        for the protection of the public interest, convenience, and 
        necessity.
    ``(c) Recovery of License.--
            ``(1) Conditions required.--If the Commission grants a 
        license for advanced television services to a person that, as 
        of the date of such issuance, is licensed to operate a 
        television broadcast station or holds a permit to construct 
        such a station (or both),
         the Commission shall, as a condition of such license, require 
that, upon a determination by the Commission pursuant to the 
regulations prescribed under paragraph (2), either the additional 
license or the original license held by the licensee be surrendered to 
the Commission in accordance with such regulations for reallocation or 
reassignment (or both) pursuant to Commission regulation.
            ``(2) Criteria.--The Commission shall prescribe criteria 
        for rendering determinations concerning license surrender 
        pursuant to license conditions required by paragraph (1). Such 
        criteria shall--
                    ``(A) require such determinations to be based, on a 
                market-by-market basis, on whether the substantial 
                majority of the public have obtained television 
                receivers that are capable of receiving advanced 
                television services; and
                    ``(B) not require the cessation of the broadcasting 
                under either the original or additional license if such 
                cessation would render the television receivers of a 
                substantial portion of the public useless, or otherwise 
                cause undue burdens on the owners of such television 
                receivers.
            ``(3) Auction of returned spectrum.--Any license 
        surrendered under the requirements of this subsection shall be 
        subject to assignment by use of competitive bidding pursuant to 
        section 309(j), notwithstanding any limitations contained in 
        paragraph (2) of such section.
    ``(d) Fees.--
            ``(1) Services to which fees apply.--If the regulations 
        prescribed pursuant to subsection (a) permit a licensee to 
        offer ancillary or supplementary services on a designated 
        frequency--
                    ``(A) for which the payment of a subscription fee 
                is required in order to receive such services, or
                    ``(B) for which the licensee directly or indirectly 
                receives compensation from a third party in return for 
                transmitting material furnished by such third party 
                (other than commercial advertisements used to support 
                broadcasting for which a subscription fee is not 
                required),
        the Commission shall establish a program to assess and collect 
        from the licensee for such designated frequency an annual fee 
        or other schedule or method of payment that promotes the 
        objectives described in subparagraphs (A) and (B) of paragraph 
        (2).
            ``(2) Collection of fees.--The program required by 
        paragraph (1) shall--
                    ``(A) be designed (i) to recover for the public a 
                portion of the value of the public spectrum resource 
                made available for such commercial use, and (ii) to 
                avoid unjust enrichment through the method employed to 
                permit such uses of that resource;
                    ``(B) recover for the public an amount that, to the 
                extent feasible, equals but does not exceed (over the 
                term of the license) the amount that would have been 
                recovered had such services been licensed pursuant to 
                the provisions of section 309(j) of this Act and the 
                Commission's regulations thereunder; and
                    ``(C) be adjusted by the Commission from time to 
                time in order to continue to comply with the 
                requirements of this paragraph.
            ``(3) Treatment of revenues.--
                    ``(A) General rule.--Except as provided in 
                subparagraph (B), all proceeds obtained pursuant to the 
                regulations required by this subsection shall be 
                deposited in the Treasury in accordance with chapter 33 
                of title 31, United States Code.
                    ``(B) Retention of revenues.--Notwithstanding 
                subparagraph (A), the salaries and expenses account of 
                the Commission shall retain as an offsetting collection 
                such sums as may be necessary from such proceeds for 
                the costs of developing and implementing the program 
                required by this section and regulating and supervising 
                advanced television services. Such offsetting 
                collections shall be available for obligation subject 
                to the terms and conditions of the receiving 
                appropriations account, and shall be deposited in such 
                accounts on a quarterly basis.
            ``(4) Report.--Within 5 years after the date of the 
        enactment of this section, the Commission shall report to the 
        Congress on the implementation of the program required by this 
        subsection, and shall annually thereafter advise the Congress 
        on the amounts collected pursuant to such program.
    ``(e) Evaluation.--Within 10 years after the date the Commission 
first issues additional licenses for advanced television services, the 
Commission shall conduct an evaluation of the advanced television 
services program. Such evaluation shall include--
            ``(1) an assessment of the willingness of consumers to 
        purchase the television receivers necessary to receive 
        broadcasts of advanced television services;
            ``(2) an assessment of alternative uses, including public 
        safety use, of the frequencies used for such broadcasts; and
            ``(3) the extent to which the Commission has been or will 
        be able to reduce the amount of spectrum assigned to licensees.
    ``(f) Definitions.--As used in this section:
            ``(1) Advanced television services.--The term `advanced 
        television services' means television services provided using 
        digital or other advanced technology as further defined in the 
        opinion, report, and order of the Commission entitled `Advanced 
        Television Systems and Their Impact Upon the Existing 
        Television Broadcast Service', MM Docket 87-268, adopted 
        September 17, 1992, and successor proceedings.
            ``(2) Designated frequencies.--The term `designated 
        frequency' means each of the frequencies designated by the 
        Commission for licenses for advanced television services.
            ``(3) High definition television.--The term `high 
        definition television' refers to systems that offer 
        approximately twice the vertical and horizontal resolution of 
        receivers generally available on the date of enactment of this 
        section, as further defined in the proceedings described in 
        paragraph (1) of this subsection.''.
SEC. 302. BROADCAST OWNERSHIP.

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

``SEC. 337. BROADCAST OWNERSHIP.

    ``(a) Limitations on Commission Rulemaking Authority.--Except as 
expressly permitted in this section, the Commission shall not prescribe 
or enforce any regulation--
            ``(1) prohibiting or limiting, either nationally or within 
        any particular area, a person or entity from holding any form 
        of ownership or other interest in two or more broadcasting 
        stations or in a broadcasting station and any other medium of 
        mass communication; or
            ``(2) prohibiting a person or entity from owning, 
        operating, or controlling two or more networks of broadcasting 
        stations or from owning, operating, or controlling a network of 
        broadcasting stations and any other medium of mass 
        communications.
    ``(b) Television Ownership Limitations.--
            ``(1) National audience reach limitations.--The Commission 
        shall prohibit a person or entity from obtaining any license if 
        such license would result in such person or entity directly or 
        indirectly owning, operating, or controlling, or having a 
        cognizable interest in, television stations which have an 
        aggregate national audience reach exceeding--
                    ``(A) 35 percent, for any determination made under 
                this paragraph before one year after the date of 
                enactment of this section; or
                    ``(B) 50 percent, for any determination made under 
                this paragraph on or after one year after such date of 
                enactment.
        Within 3 years after such date of enactment, the Commission 
        shall conduct a study on the operation of this paragraph and 
        submit a report to the Congress on the development of 
        competition in the television marketplace and the need for any 
        revisions to or elimination of this paragraph.
            ``(2) Multiple licenses in a market.--
                    ``(A) In general.--The Commission shall prohibit a 
                person or entity from obtaining any license if such 
                license would result in such person or entity directly 
                or indirectly owning, operating, or controlling, or 
                having a cognizable interest in, two or more television 
                stations within the same television market.
                    ``(B) Exception for multiple uhf stations and for 
                uhf-vhf combinations.--Notwithstanding subparagraph 
                (A), the Commission shall not prohibit a person or 
                entity from directly or indirectly owning, operating, 
                or controlling, or having a cognizable interest in, two 
                television stations within the same television market 
                if at least one of such stations is a UHF television, 
                unless the Commission determines that permitting such 
                ownership, operation, or control will harm competition 
                or will harm the preservation of a diversity of media 
                voices in the local television market.
                    ``(C) Exception for vhf-vhf combinations.--
                Notwithstanding subparagraph (A), the Commission may 
                permit a person or entity to directly or indirectly 
                own, operate, or control, or have a cognizable interest 
                in, two VHF television stations within the same 
                television market, if the Commission determines that 
                permitting such ownership, operation, or control will 
                not harm competition and will not harm the preservation 
                of a diversity of media voices in the local television 
                market.
    ``(c) Local Cross-Media Ownership Limits.--In a proceeding to 
grant, renew, or authorize the assignment of any station license under 
this title, the Commission may deny the application if the Commission 
determines that the combination of such station and more than one other 
nonbroadcast media of mass communication would result in an undue 
concentration of media voices in the respective local market. In 
considering any such combination, the Commission shall not grant the 
application if all the media of mass communication in such local market 
would be owned, operated, or controlled by two or fewer persons or 
entities. This subsection shall not constitute authority for the 
Commission to prescribe regulations containing local cross-media 
ownership limitations. The Commission may not, under the authority of 
this subsection, require any person or entity to divest itself of any 
portion of any combination of stations and other media of mass 
communications that such person or entity owns, operates, or controls 
on the date of enactment of this section unless such person or entity 
acquires another station or other media of mass communications after 
such date in such local market.
    ``(d) Transition Provisions.--Any provision of any regulation 
prescribed before the date of enactment of this section that is 
inconsistent with the requirements of this section shall cease to be 
effective on such date of enactment. The Commission shall complete all 
actions (including any reconsideration) necessary to amend its 
regulations to conform to the requirements of this section not later 
than 6 months after such date of enactment. Nothing in this section 
shall be construed to prohibit the continuation or renewal of any 
television local marketing agreement that is in effect on such date of 
enactment and that is in compliance with Commission regulations on such 
date.''.
    (b) Conforming Amendment.--Section 613(a) of the Act (47 U.S.C. 
533(a)) is repealed.
SEC. 303. FOREIGN INVESTMENT AND OWNERSHIP.

    (a) Station Licenses.--Section 310(a) (47 U.S.C. 310(a)) is amended 
to read as follows:
    ``(a) Grant to or Holding by Foreign Government or 
Representative.--No station license required under title III of this 
Act shall be granted to or held by any foreign government or any 
representative thereof. This subsection shall not apply to licenses 
issued under such terms and conditions as the Commission may prescribe 
to mobile earth stations engaged in occasional or short-term 
transmissions via satellite of audio or television program material and 
auxilliary signals if such transmissions are not intended for direct 
reception by the general public in the United States.''.
    (b) Termination of Foreign Ownership Restrictions.--Section 310 (47 
U.S.C. 310) is amended by adding at the end thereof the following new 
subsection:
    ``(f) Termination of Foreign Ownership Restrictions.--
            ``(1) Restriction not to apply.--Subsection (b) shall not 
        apply to any common carrier license granted, or for which 
        application is made, after the date of enactment of this 
        subsection with respect to any alien (or representative 
        thereof), corporation, or foreign government (or representative 
        thereof) if--
                    ``(A) the President determines that the foreign 
                country of which such alien is a citizen, in which such 
                corporation is organized, or in which the foreign 
                government is in control is party to an international 
                agreement which requires the United States to provide 
                national or most-favored-nation treatment in the grant 
                of common carrier licenses; or
                    ``(B) the Commission determines that not applying 
                subsection (b) would serve the public interest.
            ``(2) Commission considerations.--In making its 
        determination, under paragraph (1)(B), the Commission may 
        consider, among other public interest factors, whether 
        effective competitive opportunities are available to United 
        States nationals or corporations in the applicant's home 
        market. In evaluating the public interest, the Commission shall 
        exercise great deference to the President with respect to 
        United States national security, law enforcement requirements, 
        foreign policy, the interpretation of international agreements, 
        and trade policy (as well as direct investment as it relates to
         international trade policy). Upon receipt of an application 
that requires a finding under this paragraph, the Commission shall 
cause notice thereof to be given to the President or any agencies 
designated by the President to receive such notification.
            ``(3) Further commission review.--Except as otherwise 
        provided in this paragraph, the Commission may determine that 
        any foreign country with respect to which it has made a 
        determination under paragraph (1) has ceased to meet the 
        requirements for that determination. In making this 
        determination, the Commission shall exercise great deference to 
        the President with respect to United States national security, 
        law enforcement requirements, foreign policy, the 
        interpretation of international agreements, and trade policy 
        (as well as direct investment as it relates to international 
        trade policy). If a determination under this paragraph is made 
        then--
                    ``(A) subsection (b) shall apply with respect to 
                such aliens, corporation, and government (or their 
                representatives) on the date that the Commission 
                publishes notice of its determination under this 
                paragraph; and
                    ``(B) any license held, or application filed, which 
                could not be held or granted under subsection (b) shall 
                be reviewed by the Commission under the provisions of 
                paragraphs (1)(B) and (2).
            ``(4) Observance of international obligations.--Paragraph 
        (3) shall not apply to the extent the President determines that 
        it is inconsistent with any international agreement to which 
        the United States is a party.
            ``(5) Notifications to congress.--The President and the 
        Commission shall notify the appropriate committees of the 
        Congress of any determinations made under paragraph (1), (2), 
        or (3).''.
SEC. 304. TERM OF LICENSES.

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

    (a) Amendment.--Section 309 of the Act (47 U.S.C. 309) is amended 
by adding at the end thereof the following new subsection:
    ``(k) Broadcast Station Renewal Procedures.--
            ``(1) Standards for renewal.--If the licensee of a 
        broadcast station submits an application to the Commission for 
        renewal of such license, the Commission shall grant the 
        application if it finds, with respect to that station, during 
        the preceding term of its license--
                    ``(A) the station has served the public interest, 
                convenience, and necessity;
                    ``(B) there have been no serious violations by the 
                licensee of this Act or the rules and regulations of 
                the Commission; and
                    ``(C) there have been no other violations by the 
                licensee of this Act or the rules and regulations of 
                the Commission which, taken together, would constitute 
                a pattern of abuse.
            ``(2) Consequence of failure to meet standard.--If any 
        licensee of a broadcast station fails to meet the requirements 
        of this subsection, the Commission may deny the application for 
        renewal in accordance with paragraph (3), or grant such 
        application on terms and conditions as are appropriate, 
        including renewal for a term less than the maximum otherwise 
        permitted.
            ``(3) Standards for denial.--If the Commission determines, 
        after notice and opportunity for a hearing as provided in 
        subsection (e), that a licensee has failed to meet the 
        requirements specified in paragraph (1) and that no mitigating 
        factors justify the imposition of lesser sanctions, the 
        Commission shall--
                    ``(A) issue an order denying the renewal 
                application filed by such licensee under section 308; 
                and
                    ``(B) only thereafter accept and consider such 
                applications for a construction permit as may be filed 
                under section 308 specifying the channel or 
                broadcasting facilities of the former licensee.
            ``(4) Competitor consideration prohibited.--In making the 
        determinations specified in paragraph (1) or (2), the 
        Commission shall not consider whether the public interest, 
        convenience, and necessity might be served by the grant of a 
        license to a person other than the renewal applicant.''.
    (b) Conforming Amendment.--Section 309(d) of the Act (47 U.S.C. 
309(d)) is amended by inserting after ``with subsection (a)'' each 
place such term appears the following: ``(or subsection (k) in the case 
of renewal of any broadcast station license)''.
    (c) Effective Date.--The amendments made by this section shall 
apply to any application for renewal filed on or after May 31, 1995.

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

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

SEC. 307. AUTOMATED SHIP DISTRESS AND SAFETY SYSTEMS.

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

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

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

SEC. 309. DBS SIGNAL SECURITY.

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

SEC. 401. RELATIONSHIP TO OTHER LAWS.

    (a) Modification of Final Judgment.--Parts II and III of title II 
of the Communications Act of 1934 (as added by this Act) shall 
supersede the Modification of Final Judgment, except that such part 
shall not affect--
            (1) section I of the Modification of Final Judgment, 
        relating to AT&T reorganization,
            (2) section II(A) (including appendix B) and II(B) of the 
        Modification of Final Judgment, relating to equal access and 
        nondiscrimination,
            (3) section IV(F) and IV(I) of the Modification of Final 
        Judgment, with respect to the requirements included in the 
        definitions of ``exchange access'' and ``information access'',
            (4) section VIII(B) of the Modification of Final Judgment, 
        relating to printed advertising directories,
            (5) section VIII(E) of the Modification of Final Judgment, 
        relating to notice to customers of AT&T,
            (6) section VIII(F) of the Modification of Final Judgment, 
        relating to less than equal exchange access,
            (7) section VIII(G) of the Modification of Final Judgment, 
        relating to transfer of AT&T assets, including all exceptions 
        granted thereunder before the date of the enactment of this 
        Act, and
            (8) with respect to the parts of the Modification of Final 
        Judgment described in paragraphs (1) through (7)--
                    (A) section III of the Modification of Final 
                Judgment, relating to applicability and effect,
                    (B) section IV of the Modification of Final 
                Judgment, relating to definitions,
                    (C) section V of the Modification of Final 
                Judgment, relating to compliance,
                    (D) section VI of the Modification of Final 
                Judgment, relating to visitorial provisions,
                    (E) section VII of the Modification of Final 
                Judgment, relating to retention of jurisdiction, and
                    (F) section VIII(I) of the Modification of Final 
                Judgment, relating to the court's sua sponte authority.
    (b) Antitrust Laws.--Nothing in this Act shall be construed
 to modify, impair, or supersede the applicability of any of the 
antitrust laws.
    (c) Federal, State, and Local Law.--(1) Except as provided in 
paragraph (2), parts II and III of title II of the Communications Act 
of 1934 shall not be construed to modify, impair, or supersede Federal, 
State, or local law unless expressly so provided in such part.
    (2) Parts II and III of title II of the Communications Act of 1934 
shall supersede State and local law to the extent that such law would 
impair or prevent the operation of such part.
    (d) Termination.--The provisions of the GTE consent decree shall 
cease to be effective on the date of enactment of this Act. For 
purposes of this subsection, the term ``GTE consent decree'' means the 
order entered on December 21, 1984 (as restated on January 11, 1985), 
in United States v. GTE Corporation, Civil Action No. 83-1298, in the 
United States District Court for the District of Columbia, and includes 
any judgment or order with respect to such action entered on or after 
December 21, 1984.
    (e) Inapplicability of Final Judgment to Wireless Successors.--No 
person shall be subject to the provisions of the Modification of Final 
Judgment by reason of having acquired wireless exchange assets or 
operations previously owned by a Bell operating company or an affiliate 
of a Bell operating company.
    (f) Antitrust Laws.--As used in this section, the term ``antitrust 
laws'' has the meaning given it in subsection (a) of the first section 
of the Clayton Act (15 U.S.C. 12(a)), except that such term includes 
the Act of June 19, 1936 (49 Stat. 1526; 15 U.S.C. 13 et seq.), 
commonly known as the Robinson Patman Act, and section 5 of the Federal 
Trade Commission Act (15 U.S.C. 45) to the extent that such section 5 
applies to unfair methods of competition.
SEC. 402. PREEMPTION OF LOCAL TAXATION WITH RESPECT TO DBS SERVICES.

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

                          TITLE V--DEFINITIONS

SEC. 501. DEFINITIONS.

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

              TITLE VI--SMALL BUSINESS COMPLAINT PROCEDURE

SEC. 601. COMPLAINT PROCEDURE.

    (a) Procedure Required.--The Federal Communications Commission 
shall establish procedures for the receipt and review of complaints 
concerning violations of the Communications Act of 1934, and the rules 
and regulations thereunder, that are likely to result, or have 
resulted, as a result of the violation, in material financial harm to a 
provider of telemessaging service, or other small business engaged in 
providing an information service or other telecommunications service. 
Such procedures shall be established within 120 days after the date of 
enactment of this Act.
    (b) Deadlines for Procedures; Sanctions.--The procedures under this 
section shall ensure that the Commission will make a final 
determination with respect to any such complaint within 120 days after 
receipt of the complaint. If the complaint contains an appropriate 
showing that the alleged violation occurred, as determined by the 
Commission in accordance with such regulations, the Commission shall, 
within 60 days after receipt of the complaint, order the common carrier 
and its affiliates to cease engaging in such violation pending such 
final determination. In addition, the Commission may exercise its 
authority to impose other penalties or sanctions, to the extent 
otherwise provided by law.
    (c) Definition.--For purposes of this section, a small business 
shall be any business entity that, along with any affiliate or 
subsidiary, has fewer than 300 employees.
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