HOUSE OF REPRESENTATIVES

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1995 T109.19

(c) REQUIREMENT FOR MANUFACTURE OF

TELEVISIONS THAT BLOCK PROGRAMS.—Section 303 of the Act, as amended by subsection

(a), is further amended by adding at the end

the following:

‘‘(w) Require, in the case of apparatus designed to receive television signals that are

manufactured in the United States or imported for use in the United States and that

have a picture screen 13 inches or greater in

size (measured diagonally), that such apparatus be equipped with circuitry designed to

enable viewers to block display of all programs with a common rating, except as otherwise permitted by regulations pursuant to

section 330(c)(4).’’.

(d) SHIPPING OR IMPORTING OF TELEVISIONS

THAT BLOCK PROGRAMS.—

(1) REGULATIONS.—Section 330 of the Communications Act of 1934 (47 U.S.C. 330) is

amended—

(A) by redesignating subsection (c) as subsection (d); and

(B) by adding after subsection (b) the following new subsection (c):

‘‘(c)(1) Except as provided in paragraph (2),

no person shall ship in interstate commerce,

manufacture, assemble, or import from any

foreign country into the United States any

apparatus described in section 303(w) of this

Act except in accordance with rules prescribed by the Commission pursuant to the

authority granted by that section.

‘‘(2) This subsection shall not apply to carriers transporting apparatus referred to in

paragraph (1) without trading it.

‘‘(3) The rules prescribed by the Commission under this subsection shall provide for

the oversight by the Commission of the

adoption of standards by industry for blocking technology. Such rules shall require that

all such apparatus be able to receive the rating signals which have been transmitted by

way of line 21 of the vertical blanking interval and which conform to the signal and

blocking specifications established by industry under the supervision of the Commission.

‘‘(4) As new video technology is developed,

the Commission shall take such action as

the Commission determines appropriate to

ensure that blocking service continues to be

available to consumers. If the Commission

determines that an alternative blocking

technology exists that—

‘‘(A) enables parents to block programming

based on identifying programs without ratings,

‘‘(B) is available to consumers at a cost

which is comparable to the cost of technology that allows parents to block programming based on common ratings, and

‘‘(C) will allow parents to block a broad

range of programs on a multichannel system

as effectively and as easily as technology

that allows parents to block programming

based on common ratings,

the Commission shall amend the rules prescribed pursuant to section 303(w) to require

that the apparatus described in such section

be equipped with either the blocking technology described in such section or the alternative blocking technology described in this

paragraph.’’.

(2) CONFORMING AMENDMENT.—Section

330(d) of such Act, as redesignated by subsection (a)(1), is amended by striking ‘‘section 303(s), and section 303(u)’’ and inserting

in lieu thereof ‘‘and sections 303(s), 303(u),

and 303(w)’’.

(e) APPLICABILITY AND EFFECTIVE DATES.—

(1) APPLICABILITY OF RATING PROVISION.—

The amendment made by subsection (b) of

this section shall take effect 1 year after the

date of enactment of this Act, but only if the

Commission determines, in consultation

with appropriate public interest groups and

interested individuals from the private sector, that distributors of video programming

have not, by such date—

(A) established voluntary rules for rating

video programming that contains sexual,

violent, or other indecent material about

which parents should be informed before it is

displayed to children, and such rules are acceptable to the Commission; and

(B) agreed voluntarily to broadcast signals

that contain ratings of such programming.

(2) EFFECTIVE DATE OF MANUFACTURING PROVISION.—In prescribing regulations to implement the amendment made by subsection

(c), the Federal Communications Commission shall, after consultation with the television manufacturing industry, specify the

effective date for the applicability of the requirement to the apparatus covered by such

amendment, which date shall not be less

than one year after the date of the enactment of this Act.

It was decided in the Yeas ....... 222 ! affirmative ................... Nays ...... 201

T109.19 [Roll No. 633]

AYES—222

Ackerman

Allard

Archer

Armey

Bachus

Baker (CA)

Baker (LA)

Ballenger

Barcia

Barr

Barrett (NE)

Barton

Bass

Berman

Bevill

Bilbray

Bilirakis

Bliley

Blute

Boehner

Bonilla

Bono

Boucher

Brewster

Brownback

Bryant (TN)

Bunn

Bunning

Burr

Buyer

Callahan

Calvert

Camp

Canady

Castle

Chabot

Chambliss

Chapman

Chenoweth

Christensen

Chrysler

Clinger

Coble

Coburn

Collins (GA)

Combest

Condit

Cooley

Cox

Crane

Crapo

Cremeans

Cubin

Cunningham

Deal

DeLay

Dickey

Dicks

Doolittle

Doyle

Dreier

Duncan

Dunn

Ehrlich

Emerson

English

Ensign

Everett

Ewing

Fawell

Fields (TX)

Flanagan

Foley

Forbes

Fowler

Fox

Franks (CT)

Franks (NJ)

Frelinghuysen

Frisa

Gallegly

Ganske

Gekas

Geren

Gilchrest

Goodling

Goss

Graham

Greenwood

Gunderson

Gutknecht

Hall (TX)

Hancock

Hansen

Harman

Hastert

Hastings (WA)

Hayworth

Heineman

Herger

Hilleary

Hobson

Hoekstra

Hoke

Holden

Hostettler

Houghton

Hutchinson

Inglis

Istook

Johnson, Sam

Kasich

Kelly

Kennedy (RI)

Kim

King

Kingston

Kleczka

Klug

Knollenberg

Kolbe

LaHood

Largent

Latham

LaTourette

Laughlin

Lazio

Lewis (KY)

Lightfoot

Lincoln

Linder

Livingston

LoBiondo

Longley

Lucas

Manton

Manzullo

Martini

Matsui

McCollum

McCrery

McDade

McHale

McHugh

McIntosh

Metcalf

Mica

Miller (FL)

Molinari

Moorhead

Myrick

Nadler

Neal

Nethercutt

Neumann

Ney

Norwood

Nussle

Orton

Packard

Parker

Paxon

Peterson (MN)

Pombo

Porter

Portman

Pryce

Radanovich

Ramstad

Regula

Richardson

Riggs

Roberts

Rogers

Rohrabacher

Ros-Lehtinen

Rose

Royce

Salmon

Sanford

Saxton

Schaefer

Schiff

Seastrand

Shadegg

Shaw

Shays

Smith (MI)

Smith (TX)

Smith (WA)

Spence

Stearns

Stenholm

Stump

Talent

Tate

Tauzin

Taylor (NC)

Thomas

Thornberry

Thornton

Tiahrt

Torkildsen

Towns

Traficant

Tucker

Vucanovich

Waldholtz

Walker

Walsh

Wamp

Waters

Watts (OK)

Waxman

Weldon (FL)

Weldon (PA)

Weller

White

Whitfield

Wicker

Zeliff

Zimmer

NOES—201

Abercrombie

Baesler

Baldacci

Barrett (WI)

Bartlett

Becerra

Beilenson

Bentsen

Bereuter

Bishop

Boehlert

Bonior

Borski

Browder

Brown (CA)

Brown (FL)

Brown (OH)

Bryant (TX)

Burton

Cardin

Clay

Clayton

Clement

Clyburn

Coleman

Collins (IL)

Collins (MI)

Conyers

Costello

Coyne

Cramer

Danner

Davis

de la Garza

DeFazio

DeLauro

Dellums

Deutsch

Diaz-Balart

Dingell

Dixon

Doggett

Dooley

Dornan

Durbin

Edwards

Ehlers

Engel

Eshoo

Evans

Farr

Fattah

Fazio

Fields (LA)

Filner

Flake

Foglietta

Ford

Frank (MA)

Frost

Funderburk

Furse

Gejdenson

Gephardt

Gibbons

Gillmor

Gilman

Gonzalez

Goodlatte

Gordon

Green

Gutierrez

Hall (OH)

Hamilton

Hastings (FL)

Hayes

Hefley

Hefner

Hilliard

Hinchey

Horn

Hoyer

Hunter

Hyde

Jackson-Lee

Jacobs

Jefferson

Johnson (CT)

Johnson (SD)

Johnson, E. B.

Johnston

Jones

Kanjorski

Kaptur

Kennedy (MA)

Kennelly

Kildee

Klink

LaFalce

Lantos

Leach

Levin

Lewis (CA)

Lewis (GA)

Lipinski

Lofgren

Lowey

Luther

Maloney

Markey

Martinez

Mascara

McCarthy

McDermott

McInnis

McKeon

McKinney

McNulty

Meehan

Meek

Menendez

Meyers

Mfume

Miller (CA)

Mineta

Minge

Mink

Mollohan

Montgomery

Moran

Morella

Murtha

Myers

Oberstar

Obey

Olver

Owens

Oxley

Pallone

Pastor

Payne (NJ)

Payne (VA)

Pelosi

Peterson (FL)

Petri

Pickett

Pomeroy

Poshard

Rahall

Rangel

Reed

Rivers

Roemer

Roth

Roukema

Roybal-Allard

Rush

Sabo

Sanders

Sawyer

Schroeder

Schumer

Scott

Sensenbrenner

Serrano

Shuster

Sisisky

Skaggs

Skeen

Skelton

Slaughter

Smith (NJ)

Solomon

Souder

Spratt

Stark

Stockman

Stokes

Studds

Stupak

Tanner

Taylor (MS)

Tejeda

Thompson

Torres

Torricelli

Upton

Velazquez

Vento

Visclosky

Volkmer

Ward

Watt (NC)

Wilson

Wise

Wolf

Woolsey

Wyden

Wynn

Yates

Young (FL)

NOT VOTING—11

Andrews

Bateman

Moakley

Ortiz

Quillen

Quinn

Reynolds

Scarborough

Thurman

Williams

Young (AK)

So the substitute amendment was

agreed to.

The SPEAKER pro tempore, Mr.

SHAYS, assumed the Chair.

When Mr. KOLBE, Chairman, pursuant to House Resolution 207, reported

the bill back to the House with an

amendment adopted by the Committee.

The previous question having been

ordered by said resolution.

Pursuant to the order of the House of

August 3, 1995, the following amendment adopted in the Committee of the

Whole was considered adopted:

Strike out all after the enacting clause and

insert:
JOURNAL OF THE

1272

T109.19 AUGUST 4

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 crosssubsidization.

‘‘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—
HOUSE OF REPRESENTATIVES

1273

1995 T109.19

‘‘(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 rightof-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
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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.
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‘‘(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.
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‘‘(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
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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.
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‘‘(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.
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‘‘(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:
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‘‘(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:
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‘‘(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—
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‘‘(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-ofway, 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, rightsof-way, and easements. The Commission

shall provide technical support to States to

encourage them to make property, rights-ofway, 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;
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(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
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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—
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‘‘(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’’.
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(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 reg-
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ulations 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
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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
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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-theair 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 com-
JOURNAL OF THE

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T109.19 AUGUST 4

pany 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-tohome 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;
HOUSE OF REPRESENTATIVES

1291

1995 T109.19

(6) by inserting after the designation of

each such paragraph—

(A) a heading, in a form consistent with

the form of the heading of this subsection,

consisting of the term defined by such paragraph, or the first term so defined if such

paragraph defines more than one term; and

(B) the words ‘‘The term’’;

(7) by changing the first letter of each defined term in such paragraphs from a capital

to a lower case letter (except for ‘‘United

States’’, ‘‘State’’, ‘‘State commission’’, and

‘‘Great Lakes Agreement’’); and

(8) by reordering such paragraphs and the

additional paragraphs added by subsection

(a) in alphabetical order based on the headings of such paragraphs and renumbering

such paragraphs as so reordered.

(c) CONFORMING AMENDMENTS.—The Act is

amended—

(1) in section 225(a)(1), by striking ‘‘section

3(h)’’ and inserting ‘‘section 3’’;

(2) in section 332(d), by striking ‘‘section

3(n)’’ each place it appears and inserting

‘‘section 3’’; and

(3) in sections 621(d)(3), 636(d), and 637(a)(2),

by striking ‘‘section 3(v)’’ and inserting ‘‘section 3’’.

TITLE VI—SMALL BUSINESS COMPLAINT

PROCEDURE

SEC. 601. COMPLAINT PROCEDURE.

(a) PROCEDURE REQUIRED.—The Federal

Communications Commission shall establish

procedures for the receipt and review of complaints concerning violations of the Communications Act of 1934, and the rules and regulations thereunder, that are likely to result,

or have resulted, as a result of the violation,

in material financial harm to a provider of

telemessaging service, or other small business engaged in providing an information

service or other telecommunications service.

Such procedures shall be established within

120 days after the date of enactment of this

Act.

(b) DEADLINES FOR PROCEDURES; SANCTIONS.—The procedures under this section

shall ensure that the Commission will make

a final determination with respect to any

such complaint within 120 days after receipt

of the complaint. If the complaint contains

an appropriate showing that the alleged violation occurred, as determined by the Commission in accordance with such regulations,

the Commission shall, within 60 days after

receipt of the complaint, order the common

carrier and its affiliates to cease engaging in

such violation pending such final determination. In addition, the Commission may exercise its authority to impose other penalties

or sanctions, to the extent otherwise provided by law.

(c) DEFINITION.—For purposes of this section, a small business shall be any business

entity that, along with any affiliate or subsidiary, has fewer than 300 employees.

The bill, as amended, was ordered to

be engrossed and read a third time, was

read a third time by title.

Mr. MARKEY moved to recommit

the bill to the Committee on Commerce with instructions to report the

bill back to the House forthwith with

the following amendment:

Page 157, after line 21, insert the following

new section (and redesignate the succeeding

sections and conform the table of contents

accordingly):

SEC. 304. PARENTAL CHOICE IN TELEVISION

PROGRAMMING.

(a) FINDINGS.—The Congress makes the following findings:

(1) Television influences children’s perception of the values and behavior that are common and acceptable in society.

(2) Television station operators, cable television system operators, and video programmers should follow practices in connection

with video programming that take into consideration that television broadcast and

cable programming has established a uniquely pervasive presence in the lives of American children.

(3) The average American child is exposed

to 25 hours of television each week and some

children are exposed to as much as 11 hours

of television a day.

(4) Studies have shown that children exposed to violent video programming at a

young age have a higher tendency for violent

and aggressive behavior later in life that

children not so exposed, and that children

exposed to violent video programming are

prone to assume that acts of violence are acceptable behavior.

(5) Children in the United States are, on

average, exposed to an estimated 8,000 murders and 100,000 acts of violence on television

by the time the child completes elementary

school.

(6) Studies indicate that children are affected by the pervasiveness and casual treatment of sexual material on television, eroding the ability of parents to develop responsible attitudes and behavior in their children.

(7) Parents express grave concern over violent and sexual video programming and

strongly support technology that would give

them greater control to block video programming in the home that they consider

harmful to their children.

(8) There is a compelling governmental interest in empowering parents to limit the

negative influences of video programming

that is harmful to children.

(9) Providing parents with timely information about the nature of upcoming video programming and with the technological tools

that allow them easily to block violent, sexual, or other programming that they believe

harmful to their children is the least restrictive and most narrowly tailored means of

achieving that compelling governmental interest.

(b) ESTABLISHMENT OF TELEVISION RATING

CODE.—Section 303 of the Act (47 U.S.C. 303)

is amended by adding at the end the following:

‘‘(v) Prescribe—

‘‘(1) on the basis of recommendations from

an advisory committee established by the

Commission that is composed of parents, television broadcasters, television programming producers, cable operators, appropriate

public interest groups, and other interested

individuals from the private sector and that

is fairly balanced in terms of political affiliation, the points of view represented, and the

functions to be performed by the committee,

guidelines and recommended procedures for

the identification and rating of video programming that contains sexual, violent, or

other indecent material about which parents

should be informed before it is displayed to

children, provided that nothing in this paragraph shall be construed to authorize any

rating of video programming on the basis of

its political or religious content; and

‘‘(2) with respect to any video programming that has been rated (whether or not in

accordance with the guidelines and recommendations prescribed under paragraph

(1)), rules requiring distributors of such

video programming to transmit such rating

to permit parents to block the display of

video programming that they have determined is inappropriate for their children.’’.

(c) REQUIREMENT FOR MANUFACTURE OF

TELEVISIONS THAT BLOCK PROGRAMS.—Section 303 of the Act, as amended by subsection

(a), is further amended by adding at the end

the following:

‘‘(w) Require, in the case of apparatus designed to receive television signals that are

manufactured in the United States or imported for use in the United States and that

have a picture screen 13 inches or greater in

size (measured diagonally), that such apparatus be equipped with circuitry designed to

enable viewers to block display of all programs with a common rating, except as otherwise permitted by regulations pursuant to

section 330(c)(4).’’.

(d) SHIPPING OR IMPORTING OF TELEVISIONS

THAT BLOCK PROGRAMS.—

(1) REGULATIONS.—Section 330 of the Communications Act of 1934 (47 U.S.C. 330) is

amended—

(A) by redesignating subsection (c) as subsection (d); and

(B) by adding after subsection (b) the following new subsection (c):

‘‘(c)(1) Except as provided in paragraph (2),

no person shall ship in interstate commerce,

manufacture, assemble, or import from any

foreign country into the United States any

apparatus described in section 303(w) of this

Act except in accordance with rules prescribed by the Commission pursuant to the

authority granted by that section.

‘‘(2) This subsection shall not apply to carriers transporting apparatus referred to in

paragraph (1) without trading it.

‘‘(3) The rules prescribed by the Commission under this subsection shall provide for

the oversight by the Commission of the

adoption of standards by industry for blocking technology. Such rules shall require that

all such apparatus be able to receive the rating signals which have been transmitted by

way of line 21 of the vertical blanking interval and which conform to the signal and

blocking specifications established by industry under the supervision of the Commission.

‘‘(4) As new video technology is developed,

the Commission shall take such action as

the Commission determines appropriate to

ensure that blocking service continues to be

available to consumers. If the Commission

determines that an alternative blocking

technology exists that—

‘‘(A) enables parents to block programming

based on identifying programs without ratings,

‘‘(B) is available to consumers at a cost

which is comparable to the cost of technology that allows parents to block programming based on common ratings, and

‘‘(C) will allow parents to block a broad

range of programs on a multichannel system

as effectively and as easily as technology

that allows parents to block programming

based on common ratings,

The Commission shall amend the rules prescribed pursuant to section 303(w) to require

that the apparatus described in such section

be equipped with either the blocking technology described in such section or the alternative blocking technology described in this

paragraph.’’.

‘‘(2) CONFORMING AMENDMENT.—Section

330(d) of such Act, as redesignated by subsection (a)(1), is amended by striking ‘section 303(s), and section 303(u)’ and inserting

in lieu thereof ‘and sections 303(s), 303(u),

and 303(w)’.

‘‘(e) APPLICABILITY AND EFFECTIVE

DATES.—

‘‘(1) APPLICABILITY OF RATING PROVISION.—

The amendment made by subsection (b) of

this section shall take effect 1 year after the

date of enactment of this Act, but only if the

Commission determines, in consultation

with appropriate public interest groups and

interested individuals from the private sector, that distributors of video programming

have not, by such date—

‘‘(A) established voluntary rules for rating

video programming that contains sexual,

violent, or other indecent material about

which parents should be informed before it is

displayed to children, and such rules are acceptable to the Commission; and
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T109.20 AUGUST 4

‘‘(B) agreed voluntarily to broadcast signals that contain ratings of such programming.

‘‘(2) EFFECTIVE DATE OF MANUFACTURE PROVISION.—In prescribing regulations to implement the amendment made by subsection

(c), the Federal Communications Commission shall, after consultation with the television manufacturing industry, specify the

effective date for the applicability of the requirement to the apparatus covered by such

amendment, which date shall not be less

than one year after the date of enactment of

this Act.

By unanimous consent, the previous

question was ordered on the motion to

recommit with instructions.

The question being put, viva voce,

Will the House recommit said bill

with instructions?

The SPEAKER pro tempore, Mr.

SHAYS, announced that the nays had

it.

Mr. MARKEY demanded a recorded

vote on agreeing to said motion, which

demand was supported by one-fifth of a

quorum, so a recorded vote was ordered.

The vote was taken by electronic device.

It was decided in the Yeas ....... 224 ! affirmative ................... Nays ...... 199

T109.20 [Roll No. 634]

AYES—224

Abercrombie

Ackerman

Baesler

Baldacci

Barcia

Barrett (WI)

Becerra

Beilenson

Bentsen

Bereuter

Bevill

Bishop

Blute

Boehlert

Bonior

Borski

Boucher

Browder

Brown (FL)

Brown (OH)

Bryant (TX)

Bunn

Burton

Cardin

Chapman

Clay

Clayton

Clement

Clinger

Clyburn

Coleman

Collins (IL)

Collins (MI)

Conyers

Costello

Coyne

Cramer

Cubin

Danner

Davis

de la Garza

DeFazio

DeLauro

Dellums

Deutsch

Dicks

Dingell

Dixon

Doggett

Dooley

Doyle

Duncan

Durbin

Edwards

Ehlers

Engel

Eshoo

Evans

Farr

Fattah

Fazio

Fields (LA)

Filner

Flake

Flanagan

Foglietta

Forbes

Ford

Frost

Funderburk

Furse

Ganske

Gejdenson

Gephardt

Geren

Gibbons

Gillmor

Gilman

Gonzalez

Goodlatte

Gordon

Green

Gutierrez

Gutknecht

Hall (OH)

Hall (TX)

Hamilton

Harman

Hastings (FL)

Hayes

Hefley

Hefner

Hilliard

Hinchey

Holden

Horn

Hoyer

Hunter

Hyde

Jackson-Lee

Jacobs

Jefferson

Johnson (CT)

Johnson (SD)

Johnson, E. B.

Johnston

Jones

Kanjorski

Kaptur

Kennedy (MA)

Kennelly

Kildee

Kleczka

Klink

LaFalce

Lantos

Leach

Levin

Lewis (CA)

Lewis (GA)

Lincoln

Lipinski

Lofgren

Lowey

Luther

Maloney

Manton

Markey

Martinez

Martini

Mascara

McCarthy

McDade

McDermott

McHale

McIntosh

McKinney

McNulty

Meehan

Meek

Menendez

Meyers

Mfume

Miller (CA)

Mineta

Minge

Mink

Mollohan

Montgomery

Moran

Morella

Murtha

Neal

Oberstar

Obey

Olver

Orton

Owens

Pallone

Pastor

Payne (NJ)

Payne (VA)

Pelosi

Peterson (FL)

Petri

Pickett

Pomeroy

Portman

Poshard

Rahall

Rangel

Reed

Rivers

Roemer

Rose

Roth

Roukema

Roybal-Allard

Rush

Sabo

Sanders

Sawyer

Saxton

Schroeder

Schumer

Scott

Sensenbrenner

Serrano

Shuster

Sisisky

Skaggs

Skelton

Slaughter

Smith (NJ)

Souder

Spratt

Stark

Stenholm

Stokes

Studds

Stupak

Tanner

Taylor (MS)

Tejeda

Thompson

Thornton

Torres

Torricelli

Tucker

Upton

Velazquez

Vento

Visclosky

Volkmer

Ward

Watt (NC)

Wilson

Wise

Wolf

Woolsey

Wyden

Wynn

Yates

Young (FL)

NOES—199

Allard

Archer

Armey

Bachus

Baker (CA)

Baker (LA)

Ballenger

Barr

Barrett (NE)

Bartlett

Barton

Bass

Berman

Bilbray

Bilirakis

Bliley

Boehner

Bonilla

Bono

Brewster

Brown (CA)

Brownback

Bryant (TN)

Bunning

Burr

Buyer

Callahan

Calvert

Camp

Canady

Castle

Chabot

Chambliss

Chenoweth

Christensen

Chrysler

Coble

Coburn

Collins (GA)

Combest

Condit

Cooley

Cox

Crane

Crapo

Cremeans

Cunningham

Deal

DeLay

Diaz-Balart

Dickey

Doolittle

Dornan

Dreier

Dunn

Ehrlich

Emerson

English

Ensign

Everett

Ewing

Fawell

Fields (TX)

Foley

Fowler

Fox

Frank (MA)

Franks (CT)

Franks (NJ)

Frelinghuysen

Frisa

Gallegly

Gekas

Gilchrest

Goodling

Goss

Graham

Greenwood

Gunderson

Hancock

Hansen

Hastert

Hastings (WA)

Hayworth

Heineman

Herger

Hilleary

Hobson

Hoekstra

Hoke

Hostettler

Houghton

Hutchinson

Inglis

Istook

Johnson, Sam

Kasich

Kelly

Kennedy (RI)

Kim

King

Kingston

Klug

Knollenberg

Kolbe

LaHood

Largent

Latham

LaTourette

Laughlin

Lazio

Lewis (KY)

Lightfoot

Linder

Livingston

LoBiondo

Longley

Lucas

Manzullo

Matsui

McCollum

McCrery

McHugh

McInnis

McKeon

Metcalf

Mica

Miller (FL)

Molinari

Moorhead

Myers

Myrick

Nadler

Nethercutt

Neumann

Ney

Norwood

Nussle

Oxley

Packard

Parker

Paxon

Peterson (MN)

Pombo

Porter

Pryce

Radanovich

Ramstad

Regula

Richardson

Riggs

Roberts

Rogers

Rohrabacher

Ros-Lehtinen

Royce

Salmon

Sanford

Schaefer

Schiff

Seastrand

Shadegg

Shaw

Shays

Skeen

Smith (MI)

Smith (TX)

Smith (WA)

Solomon

Spence

Stearns

Stockman

Stump

Talent

Tate

Tauzin

Taylor (NC)

Thomas

Thornberry

Tiahrt

Torkildsen

Towns

Traficant

Vucanovich

Waldholtz

Walker

Walsh

Wamp

Waters

Watts (OK)

Waxman

Weldon (FL)

Weldon (PA)

Weller

White

Whitfield

Wicker

Zeliff

Zimmer

NOT VOTING—11

Andrews

Bateman

Moakley

Ortiz

Quillen

Quinn

Reynolds

Scarborough

Thurman

Williams

Young (AK)

So the motion to recommit with instructions was agreed to.

Mr. BLILEY, by direction of the

Committee on Commerce and pursuant

to the foregoing order of the House reported the bill back to the House with

said amendment.

The question being put, viva voce,

Will the House agree to said amendment?

The SPEAKER pro tempore, Mr.

SHAYS, announced that the yeas had

it.

So the amendment was agreed to.

The bill, as amended, was ordered to

be engrossed and read a third time, was

read a third time by title.

The question being put, viva voce,

Will the House pass said bill?

The SPEAKER pro tempore, Mr.

SHAYS, announced that the nays had

it.

Mr. BLILEY demanded a recorded

vote on passage of said bill, which demand was supported by one-fifth of a

quorum, so a recorded vote was ordered.

The vote was taken by electronic device.

It was decided in the Yeas ....... 305 ! affirmative ................... Nays ...... 117

T109.21 [Roll No. 635]

AYES—305

Ackerman

Allard

Archer

Armey

Bachus

Baker (CA)

Baker (LA)

Ballenger

Barr

Barrett (NE)

Barrett (WI)

Bartlett

Barton

Bass

Bentsen

Bevill

Bilbray

Bilirakis

Bishop

Bliley

Blute

Boehlert

Boehner

Bonilla

Bonior

Bono

Boucher

Brewster

Browder

Brown (FL)

Brown (OH)

Brownback

Bryant (TN)

Burr

Burton

Buyer

Callahan

Calvert

Camp

Canady

Cardin

Castle

Chabot

Chambliss

Chapman

Chenoweth

Christensen

Chrysler

Clay

Clement

Clinger

Clyburn

Coburn

Coleman

Collins (GA)

Combest

Condit

Cox

Cramer

Crane

Crapo

Cremeans

Cubin

Cunningham

Danner

Davis

de la Garza

Deal

DeLay

Diaz-Balart

Dickey

Dicks

Dingell

Doggett

Dooley

Doolittle

Dornan

Dreier

Dunn

Edwards

Ehlers

Ehrlich

Emerson

English

Ensign

Eshoo

Everett

Ewing

Fazio

Fields (TX)

Flake

Flanagan

Foley

Forbes

Fox

Franks (CT)

Frisa

Frost

Funderburk

Furse

Gallegly

Ganske

Gekas

Gephardt

Geren

Gilchrest

Gillmor

Gilman

Goodlatte

Goodling

Gordon

Goss

Graham

Green

Greenwood

Gunderson

Gutknecht

Hall (OH)

Hall (TX)

Hamilton

Hancock

Hansen

Harman

Hastert

Hastings (FL)

Hastings (WA)

Hayes

Hayworth

Hefner

Heineman

Herger

Hilleary

Hobson

Hoekstra

Hoke

Horn

Hostettler

Houghton

Hoyer

Hunter

Hutchinson

Hyde

Inglis

Istook

Jackson-Lee

Jacobs

Jefferson

Johnson (CT)

Johnson, Sam

Jones

Kasich

Kelly

Kennedy (RI)

Kim

King

Kingston

Kleczka

Klug

Knollenberg

Kolbe

LaHood

Largent

Latham

LaTourette

Laughlin

Lazio

Lewis (CA)

Lewis (GA)

Lewis (KY)

Lightfoot

Lincoln

Linder

Livingston

LoBiondo

Lofgren

Longley

Lowey

Lucas

Manton

Manzullo

Martini

McCollum

McCrery

McDade

McDermott

McHugh

McInnis

McIntosh

McKeon