```

[Journal of the House of Representatives, 1995]
[Friday, August 4, 1995 (109), Para 109.19 Roll No. 633]
[Pages 1271-1292]
[From the U.S. Government Publishing Office, www.gpo.gov]

para.109.19                  [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:

[[Page 1272]]

     SECTION 1. SHORT TITLE; REFERENCES; TABLE OF CONTENTS.

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

       Sec. 1. Short title; table of contents.

     TITLE I--DEVELOPMENT OF COMPETITIVE TELECOMMUNICATIONS MARKETS

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

             ``Part II--Development of Competitive Markets

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

              ``Part III--Special and Temporary Provisions

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

             TITLE II--CABLE COMMUNICATIONS COMPETITIVENESS

       Sec. 201. Cable service provided by telephone companies.

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

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

          TITLE III--BROADCAST COMMUNICATIONS COMPETITIVENESS

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

                     TITLE IV--EFFECT ON OTHER LAWS

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

                          TITLE V--DEFINITIONS

       Sec. 501. Definitions.

              TITLE VI--SMALL BUSINESS COMPLAINT PROCEDURE

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

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

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

             ``PART II--DEVELOPMENT OF COMPETITIVE MARKETS

     ``SEC. 241. INTERCONNECTION.

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

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

       ``(a) Openness and Accessibility Obligations.--The duty 
     under section 201(a) of a local exchange carrier includes the 
     following duties:
       ``(1) Interconnection.--The duty to provide, in accordance 
     with subsection (b), equal access to and interconnection with 
     the facilities of the carrier's networks to any other carrier 
     or person offering (or seeking to offer) telecommunications 
     services or information services reasonably requesting such 
     equal access and interconnection, so that such networks are 
     fully interoperable with such telecommunications services and 
     information services. For purposes of this paragraph, a 
     request is not reasonable unless it contains a proposed plan, 
     including a reasonable schedule, for the implementation of 
     the requested access or interconnection.
       ``(2) Unbundling of network elements.--The duty to offer 
     unbundled services, elements, features, functions, and 
     capabilities whenever technically feasible, at just, 
     reasonable, and nondiscriminatory prices and in accordance 
     with subsection (b)(4).
       ``(3) Resale.--The duty to offer services, elements, 
     features, functions, and capabilities for resale at 
     economically feasible rates to the reseller, recognizing 
     pricing structures for telephone exchange service in the 
     State, and the duty not to prohibit, and not to impose 
     unreasonable or discriminatory conditions or limitations on, 
     the resale, on a bundled or unbundled basis, of services, 
     elements, features, functions, and capabilities in 
     conjunction with the furnishing of a telecommunications 
     service or an information service.
       ``(4) Number portability.--The duty to provide, to the 
     extent technically feasible, number portability in accordance 
     with requirements prescribed by the Commission.
       ``(5) Dialing parity.--The duty to provide, in accordance 
     with subsection (c), dialing parity to competing providers of 
     telephone exchange service and telephone toll service.
       ``(6) Access to rights-of-way.--The duty to afford access 
     to the poles, ducts, conduits, and rights-of-way of such 
     carrier to competing providers of telecommunications services 
     in accordance with section 224(d).
       ``(7) Network functionality and accessibility.--The duty 
     not to install network features, functions, or capabilities 
     that do not comply with any standards established pursuant to 
     section 249.
       ``(8) Good faith negotiation.--The duty to negotiate in 
     good faith, under the supervision of State commissions, the 
     particular terms and conditions of agreements to fulfill the 
     duties described in paragraphs (1) through (7). The other 
     carrier or person requesting interconnection shall also be 
     obligated to negotiate in good faith the particular terms and 
     conditions of agreements to fulfill the duties described in 
     paragraphs (1) through (7).
       ``(b) Interconnection, Compensation, and Equal Access.--
       ``(1) Interconnection.--A local exchange carrier shall 
     provide access to and interconnection with the facilities of 
     the carrier's network at any technically feasible point 
     within the carrier's network on just and reasonable terms and 
     conditions, to any other carrier or person offering (or 
     seeking to offer) telecommunications services or information 
     services requesting such access.
       ``(2) Intercarrier compensation between facilities-based 
     carriers.--
       ``(A) In general.--For the purposes of paragraph (1), the 
     terms and conditions for interconnection of the network 
     facilities of a competing provider of telephone exchange 
     service shall not be considered to be just and reasonable 
     unless--
       ``(i) such terms and conditions provide for the mutual and 
     reciprocal recovery by each carrier of costs associated with 
     the termination on such carrier's network facilities of calls 
     that originate on the network facilities of the other 
     carrier;
       ``(ii) such terms and conditions determine such costs on 
     the basis of a reasonable approximation of the additional 
     costs of terminating such calls; and
       ``(iii) the recovery of costs permitted by such terms and 
     conditions are reasonable in relation to the prices for 
     termination of calls that would prevail in a competitive 
     market.
       ``(B) Rules of construction.--This paragraph shall not be 
     construed--
       ``(i) to preclude arrangements that afford such mutual 
     recovery of costs through the offsetting of reciprocal 
     obligations, including arrangements that waive mutual 
     recovery (such as bill-and-keep arrangements); or
       ``(ii) to authorize the Commission or any State commission 
     to engage in any rate regulation proceeding to establish with 
     particularity the additional costs of terminating calls, or 
     to require carriers to maintain records with respect to the 
     additional costs of terminating calls.
       ``(3) Equal access.--A local exchange carrier shall afford, 
     to any other carrier or person offering (or seeking to offer) 
     a telecommunications service or an information service, 
     reasonable and nondiscriminatory access on an unbundled 
     basis--

[[Page 1273]]

       ``(A) to databases, signaling systems, billing and 
     collection services, poles, ducts, conduits, and rights-of-
     way owned or controlled by a local exchange carrier, or other 
     facilities, functions, or information (including subscriber 
     numbers) integral to the efficient transmission, routing, or 
     other provision of telephone exchange services or exchange 
     access;
       ``(B) that is equal in type and quality to the access which 
     the carrier affords to itself or to any other person, and is 
     available at nondiscriminatory prices; and
       ``(C) that is sufficient to ensure the full 
     interoperability of the equipment and facilities of the 
     carrier and of the person seeking such access.
       ``(4) Commission action required.--
       ``(A) In general.--Within 15 months after the date of 
     enactment of this part, the Commission shall complete all 
     actions necessary (including any reconsideration) to 
     establish regulations to implement the requirements of this 
     section. The Commission shall establish such regulations 
     after consultation with the Joint Board established pursuant 
     to section 247.
       ``(B) Collocation.--Such regulations shall provide for 
     actual collocation of equipment necessary for interconnection 
     for telecommunications services at the premises of a local 
     exchange carrier, except that the regulations shall provide 
     for virtual collocation where the local exchange carrier 
     demonstrates that actual collocation is not practical for 
     technical reasons or because of space limitations.
       ``(C) User payment of costs.--Such regulations shall 
     require that the costs that a carrier incurs in offering 
     access, interconnection, number portability, or unbundled 
     services, elements, features, functions, and capabilities 
     shall be borne by the users of such access, interconnection, 
     number portability, or services, elements, features, 
     functions, and capabilities.
       ``(D) Imputed charges to carrier.--Such regulations shall 
     require the carrier, to the extent it provides a 
     telecommunications service or an information service that 
     requires access or interconnection to its network facilities, 
     to impute such access and interconnection charges to itself.
       ``(c) Number Portability and Dialing Parity.--
       ``(1) Availability.--A local exchange carrier shall ensure 
     that--
       ``(A) number portability shall be available on request in 
     accordance with subsection (a)(4); and
       ``(B) dialing parity shall be available upon request, 
     except that, in the case of a Bell operating company, such 
     company shall ensure that dialing parity for intraLATA 
     telephone toll service shall be available not later than the 
     date such company is authorized to provide interLATA 
     services.
       ``(2)  Number administration.--The Commission shall 
     designate one or more impartial entities to administer 
     telecommunications numbering and to make such numbers 
     available on an equitable basis. The Commission shall have 
     exclusive jurisdiction over those portions of the North 
     American Numbering Plan that pertain to the United States. 
     Nothing in this paragraph shall preclude the Commission from 
     delegating to State commissions or other entities any portion 
     of such jurisdiction.
       ``(d) Joint Marketing of Resold Elements.--
       ``(1) Restriction.--Except as provided in paragraph (2), no 
     service, element, feature, function, or capability that is 
     made available for resale in any State by a Bell operating 
     company may be jointly marketed directly or indirectly with 
     any interLATA telephone toll service until such Bell 
     operating company is authorized pursuant to section 245(d) to 
     provide interLATA services in such State.
       ``(2) Existing providers.--Paragraph (1) shall not prohibit 
     joint marketing of services, elements, features, functions, 
     or capabilities acquired from a Bell operating company by 
     another provider if that provider jointly markets services, 
     elements, features, functions, and capabilities acquired from 
     a Bell operating company anywhere in the telephone service 
     territory of such Bell operating company, or in the telephone 
     service territory of any affiliate of such Bell operating 
     company that provides telephone exchange service, pursuant to 
     any agreement, tariff, or other arrangement entered into or 
     in effect before the date of enactment of this part.
       ``(e) Modifications and Waivers.--The Commission may modify 
     or waive the requirements of this section for any local 
     exchange carrier (or class or category of such carriers) that 
     has, in the aggregate nationwide, fewer than 500,000 access 
     lines installed, to the extent that the Commission determines 
     that compliance with such requirements (without such 
     modification) would be unduly economically burdensome, 
     technologically infeasible, or otherwise not in the public 
     interest.
       ``(f) Waiver for Rural Telephone Companies.--A State 
     commission may waive the requirements of this section with 
     respect to any rural telephone company.
       ``(g) Exemption for Certain Rural Telephone Companies.--
     Subsections (a) through (d) of this section shall not apply 
     to a carrier that has fewer than 50,000 access lines in a 
     local exchange study area, if such carrier does not provide 
     video programming services over its telephone exchange 
     facilities in such study area, except that a State commission 
     may terminate the exemption under this subsection if the 
     State commission determines that the termination of such 
     exemption is consistent with the public interest, 
     convenience, and necessity.
       ``(h) Avoidance of Redundant Regulations.--Nothing in this 
     section shall be construed to prohibit the Commission or any 
     State commission from enforcing regulations prescribed prior 
     to the date of enactment of this part in fulfilling the 
     requirements of this section, to the extent that such 
     regulations are consistent with the provisions of this 
     section.

     ``SEC. 243. PREEMPTION.

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

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

       ``(a) In General.--Within 18 months after the date of 
     enactment of this part, and from time to time thereafter, a 
     local exchange carrier shall prepare and file with a State 
     commission statements of the terms and conditions that such 
     carrier generally offers within that State with respect to 
     the services, elements, features, functions, or capabilities 
     provided to comply with the requirements of section 242 and 
     the regulations thereunder. Any such statement pertaining to 
     the charges for interstate services, elements, features, 
     functions, or capabilities shall be filed with the 
     Commission.
       ``(b) Review.--
       ``(1) State commission review.--A State commission to which 
     a statement is submitted under subsection (a) shall review 
     such statement in accordance with State law. A State 
     commission may not approve such statement unless such 
     statement complies with section 242 and the regulations 
     thereunder. Except as provided in section 243, nothing in 
     this section shall prohibit a State commission from 
     establishing or enforcing other requirements of State law in 
     its review of such statement, including requiring compliance 
     with intrastate telecommunications service quality standards 
     or requirements.
       ``(2) FCC review.--The Commission shall review such 
     statements to ensure that--
       ``(A) the charges for interstate services, elements, 
     features, functions, or capabilities are just, reasonable, 
     and nondiscriminatory; and
       ``(B) the terms and conditions for such interstate services 
     or elements unbundle any separable services, elements, 
     features, functions, or capabilities in accordance with 
     section 242(a)(2) and any regulations thereunder.
       ``(c) Time for Review.--
       ``(1) Schedule for review.--The Commission and the State 
     commission to which a statement is submitted shall, not later 
     than 60 days after the date of such submission--
       ``(A) complete the review of such statement under 
     subsection (b) (including any reconsideration thereof), 
     unless the submitting

[[Page 1274]]

     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.

[[Page 1275]]

       ``(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.

[[Page 1276]]

       ``(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

[[Page 1277]]

     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.

[[Page 1278]]

       ``(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.

[[Page 1279]]

       ``(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:

[[Page 1280]]

       ``(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:

[[Page 1281]]

       ``(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--

[[Page 1282]]

       ``(i) regulation of the placement, construction, and 
     modification of facilities for the provision of commercial 
     mobile services by any State or local government or 
     instrumentality thereof--
       ``(I) is reasonable, nondiscriminatory, and limited to the 
     minimum necessary to accomplish the State or local 
     government's legitimate purposes; and
       ``(II) does not prohibit or have the effect of precluding 
     any commercial mobile service; and
       ``(ii) a State or local government or instrumentality 
     thereof shall act on any request for authorization to locate, 
     construct, modify, or operate facilities for the provision of 
     commercial mobile services within a reasonable period of time 
     after the request is fully filed with such government or 
     instrumentality; and
       ``(iii) any decision by a State or local government or 
     instrumentality thereof to deny a request for authorization 
     to locate, construct, modify, or operate facilities for the 
     provision of commercial mobile services shall be in writing 
     and shall be supported by substantial evidence contained in a 
     written record.
       ``(D) The policy prescribed pursuant to this paragraph 
     shall provide that no State or local government or any 
     instrumentality thereof may regulate the placement, 
     construction, modification, or operation of such facilities 
     on the basis of the environmental effects of radio frequency 
     emissions, to the extent that such facilities comply with the 
     Commission's regulations concerning such emissions.
       ``(E) In accordance with subchapter III of chapter 5, title 
     5, United States Code, the Commission shall periodically 
     establish a negotiated rulemaking committee to review the 
     policy prescribed by the Commission under this paragraph and 
     to recommend revisions to such policy.''.
       (b) Radio Frequency Emissions.--Within 180 days after the 
     enactment of this Act, the Commission shall complete action 
     in ET Docket 93-62 to prescribe and make effective rules 
     regarding the environmental effects of radio frequency 
     emissions.
       (c) Availability of Property.--Within 180 days of the 
     enactment of this Act, the Commission shall prescribe 
     procedures by which Federal departments and agencies may make 
     available on a fair, reasonable, and nondiscriminatory basis, 
     property, rights-of-way, and easements under their control 
     for the placement of new telecommunications facilities by 
     duly licensed providers of telecommunications services that 
     are dependent, in whole or in part, upon the utilization of 
     Federal spectrum rights for the transmission or reception of 
     such services. These procedures may establish a presumption 
     that requests for the use of property, rights-of-way, and 
     easements by duly authorized providers should be granted 
     absent unavoidable direct conflict with the department or 
     agency's mission, or the current or planned use of the 
     property, rights-of-way, and easements in question. 
     Reasonable cost-based fees may be charged to providers of 
     such telecommunications services for use of property, rights-
     of-way, and easements. The Commission shall provide technical 
     support to States to encourage them to make property, rights-
     of-way, and easements under their jurisdiction available for 
     such purposes.

     SEC. 108. MOBILE SERVICE ACCESS TO LONG DISTANCE CARRIERS.

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

     SEC. 109. FREEDOM FROM TOLL FRAUD.

       (a) Amendment.--Section 228(c) of the Act (47 U.S.C. 
     228(c)) is amended--
       (1) by striking subparagraph (C) of paragraph (7) and 
     inserting the following:
       ``(C) the calling party being charged for information 
     conveyed during the call unless--
       ``(i) the calling party has a written subscription 
     agreement with the information provider that meets the 
     requirements of paragraph (8); or
       ``(ii) the calling party is charged in accordance with 
     paragraph (9); or''; and
       (2) by adding at the end the following new paragraphs:
       ``(8) Subscription agreements for billing for information 
     provided via toll-free calls.--
       ``(A) In general.--For purposes of paragraph (7)(C)(i), a 
     written subscription agreement shall specify the terms and 
     conditions under which the information is offered and 
     include--
       ``(i) the rate at which charges are assessed for the 
     information;
       ``(ii) the information provider's name;
       ``(iii) the information provider's business address;
       ``(iv) the information provider's regular business 
     telephone number;
       ``(v) the information provider's agreement to notify the 
     subscriber at least 30 days in advance of all future changes 
     in the rates charged for the information;
       ``(vi) the signature of a legally competent subscriber 
     agreeing to the terms of the agreement; and
       ``(vii) the subscriber's choice of payment method, which 
     may be by phone bill or credit, prepaid, or calling card.
       ``(B) Billing arrangements.--If a subscriber elects, 
     pursuant to subparagraph (A)(vii), to pay by means of a phone 
     bill--
       ``(i) the agreement shall clearly explain that the 
     subscriber will be assessed for calls made to the information 
     service from the subscriber's phone line;
       ``(ii) the phone bill shall include, in prominent type, the 
     following disclaimer:

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

       ``(iii) the phone bill shall clearly list the 800 number 
     dialed.
       ``(C) Use of pin's to prevent unauthorized use.--A written 
     agreement does not meet the requirements of this paragraph 
     unless it provides the subscriber a personal identification 
     number to obtain access to the information provided, and 
     includes instructions on its use.
       ``(D) Exceptions.--Notwithstanding paragraph (7)(C), a 
     written agreement that meets the requirements of this 
     paragraph is not required--
       ``(i) for services provided pursuant to a tariff that has 
     been approved or permitted to take effect by the Commission 
     or a State commission; or
       ``(ii) for any purchase of goods or of services that are 
     not information services.
       ``(E) Termination of service.--On complaint by any person, 
     a carrier may terminate the provision of service to an 
     information provider unless the provider supplies evidence of 
     a written agreement that meets the requirements of this 
     section. The remedies provided in this paragraph are in 
     addition to any other remedies that are available under title 
     V of this Act.
       ``(9) Charges by credit, prepaid, or calling card in 
     absence of agreement.--For purposes of paragraph (7)(C)(ii), 
     a calling party is not charged in accordance with this 
     paragraph unless the calling party is charged by means of a 
     credit, prepaid, or calling card and the information service 
     provider includes in response to each call an introductory 
     disclosure message that--
       ``(A) clearly states that there is a charge for the call;
       ``(B) clearly states the service's total cost per minute 
     and any other fees for the service or for any service to 
     which the caller may be transferred;
       ``(C) explains that the charges must be billed on either a 
     credit, prepaid, or calling card;
       ``(D) asks the caller for the credit or calling card 
     number;
       ``(E) clearly states that charges for the call begin at the 
     end of the introductory message; and
       ``(F) clearly states that the caller can hang up at or 
     before the end of the introductory message without incurring 
     any charge whatsoever.
       ``(10) Definition of calling card.--As used in this 
     subsection, the term `calling card' means an identifying 
     number or code unique to the individual, that is issued to 
     the individual by a common carrier and enables the individual 
     to be charged by means of a phone bill for charges incurred 
     independent of where the call originates.''.
       (b) Regulations.--The Federal Communications Commission 
     shall revise its regulations to comply with the amendment 
     made by subsection (a) of this section within 180 days after 
     the date of enactment of this Act.

     SEC. 110. REPORT ON MEANS OF RESTRICTING ACCESS TO UNWANTED 
                   MATERIAL IN INTERACTIVE TELECOMMUNICATIONS 
                   SYSTEMS.

       (a) Report.--Not later than 150 days after the date of the 
     enactment of this Act, the Attorney General shall submit to 
     the Committees on the Judiciary and Commerce, Science, and 
     Transportation of the Senate and the Committees on the 
     Judiciary and Commerce of the House of Representatives a 
     report containing--
       (1) an evaluation of the enforceability with respect to 
     interactive media of current criminal laws governing the 
     distribution of obscenity over computer networks and the 
     creation and distribution of child pornography by means of 
     computers;
       (2) an assessment of the Federal, State, and local law 
     enforcement resources that are currently available to enforce 
     such laws;
       (3) an evaluation of the technical means available--
       (A) to enable parents to exercise control over the 
     information that their children receive by interactive 
     telecommunications systems so that children may avoid 
     violent, sexually explicit, harassing, offensive, and other 
     unwanted material on such systems;

[[Page 1283]]

       (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

[[Page 1284]]

     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--

[[Page 1285]]

       ``(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''.

[[Page 1286]]

       (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

[[Page 1287]]

     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

[[Page 1288]]

     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

[[Page 1289]]

     country with respect to which it has made a determination 
     under paragraph (1) has ceased to meet the requirements for 
     that determination. In making this determination, the 
     Commission shall exercise great deference to the President 
     with respect to United States national security, law 
     enforcement requirements, foreign policy, the interpretation 
     of international agreements, and trade policy (as well as 
     direct investment as it relates to international trade 
     policy). If a determination under this paragraph is made 
     then--
       ``(A) subsection (b) shall apply with respect to such 
     aliens, corporation, and government (or their 
     representatives) on the date that the Commission publishes 
     notice of its determination under this paragraph; and
       ``(B) any license held, or application filed, which could 
     not be held or granted under subsection (b) shall be reviewed 
     by the Commission under the provisions of paragraphs (1)(B) 
     and (2).
       ``(4) Observance of international obligations.--Paragraph 
     (3) shall not apply to the extent the President determines 
     that it is inconsistent with any international agreement to 
     which the United States is a party.
       ``(5) Notifications to congress.--The President and the 
     Commission shall notify the appropriate committees of the 
     Congress of any determinations made under paragraph (1), (2), 
     or (3).''.

     SEC. 304. TERM OF LICENSES.

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

     SEC. 305. BROADCAST LICENSE RENEWAL PROCEDURES.

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

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

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

     SEC. 307. AUTOMATED SHIP DISTRESS AND SAFETY SYSTEMS.

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

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

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

     SEC. 309. DBS SIGNAL SECURITY.

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

     SEC. 401. RELATIONSHIP TO OTHER LAWS.

       (a) Modification of Final Judgment.--Parts II and III of 
     title II of the Communications Act of 1934 (as added by this 
     Act) shall supersede the Modification of Final Judgment, 
     except that such part shall not affect--
       (1) section I of the Modification of Final Judgment, 
     relating to AT&T reorganization,
       (2) section II(A) (including appendix B) and II(B) of the 
     Modification of Final Judgment, relating to equal access and 
     nondiscrimination,
       (3) section IV(F) and IV(I) of the Modification of Final 
     Judgment, with respect to the requirements included in the 
     definitions of ``exchange access'' and ``information 
     access'',
       (4) section VIII(B) of the Modification of Final Judgment, 
     relating to printed advertising directories,
       (5) section VIII(E) of the Modification of Final Judgment, 
     relating to notice to customers of AT&T,
       (6) section VIII(F) of the Modification of Final Judgment, 
     relating to less than equal exchange access,
       (7) section VIII(G) of the Modification of Final Judgment, 
     relating to transfer of AT&T assets, including all exceptions 
     granted thereunder before the date of the enactment of this 
     Act, and
       (8) with respect to the parts of the Modification of Final 
     Judgment described in paragraphs (1) through (7)--
       (A) section III of the Modification of Final Judgment, 
     relating to applicability and effect,
       (B) section IV of the Modification of Final Judgment, 
     relating to definitions,
       (C) section V of the Modification of Final Judgment, 
     relating to compliance,
       (D) section VI of the Modification of Final Judgment, 
     relating to visitorial provisions,
       (E) section VII of the Modification of Final Judgment, 
     relating to retention of jurisdiction, and
       (F) section VIII(I) of the Modification of Final Judgment, 
     relating to the court's sua sponte authority.
       (b) Antitrust Laws.--Nothing in this Act shall be construed 
     to modify, impair, or supersede the applicability of any of 
     the antitrust laws.
       (c) Federal, State, and Local Law.--(1) Except as provided 
     in paragraph (2), parts II and III of title II of the 
     Communications Act of 1934 shall not be construed to modify, 
     impair, or supersede Federal, State, or local law unless 
     expressly so provided in such part.
       (2) Parts II and III of title II of the Communications Act 
     of 1934 shall supersede State and local law to the extent 
     that such law would impair or prevent the operation of such 
     part.
       (d) Termination.--The provisions of the GTE consent decree 
     shall cease to be effective on the date of enactment of this 
     Act. For purposes of this subsection, the term ``GTE consent 
     decree'' means the order entered on December 21, 1984 (as 
     restated on January 11, 1985), in United States v. GTE 
     Corporation, Civil Action No. 83-1298, in the United States 
     District Court for the District of Columbia, and includes any 
     judgment or order with respect to such action entered on or 
     after December 21, 1984.
       (e) Inapplicability of Final Judgment to Wireless 
     Successors.--No person shall be subject to the provisions of 
     the Modification of Final Judgment by reason of having 
     acquired wireless exchange assets or operations previously 
     owned by a Bell operating com

[[Page 1290]]

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

     SEC. 501. DEFINITIONS.

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

[[Page 1291]]

       (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

[[Page 1292]]

       ``(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
```