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[Congressional Bills 103th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3626 Engrossed in House (EH)]

103d CONGRESS
  2d Session
                                H. R. 3626

_______________________________________________________________________

                                 AN ACT

 
  To supersede the Modification of Final Judgment entered August 24, 
1982, in the antitrust action styled United States v. Western Electric, 
Civil Action No. 82-0192, United States District Court for the District 
 of Columbia; to amend the Communications Act of 1934 to regulate the 
   manufacturing of Bell operating companies, and for other purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLES; TABLE OF CONTENTS.

    (a) Short Title of This Act.--This Act may be cited as the 
``Antitrust and Communications Reform Act of 1994''.
    (b) Short Title of Title I of This Act.--Title I of this Act may be 
cited as the ``Antitrust Reform Act of 1994''.
    (c) Table of Contents.--

Sec. 1. Short titles; table of contents.
      TITLE I--SUPERSESSION OF THE MODIFICATION OF FINAL JUDGMENT

Sec. 101. Authorization for Bell operating company to enter competitive 
                            lines of business.
Sec. 102. Authorization as prerequisite.
Sec. 103. Limitations on manufacturing and providing equipment.
Sec. 104. Anticompetitive tying arrangements.
Sec. 105. Enforcement.
Sec. 106. Definitions.
Sec. 107. Relationship to other laws.
Sec. 108. Required regulatory actions.
 TITLE II--REGULATION OF MANUFACTURING, ALARM SERVICES, AND ELECTRONIC 
                 PUBLISHING BY BELL OPERATING COMPANIES

Sec. 201. Regulation of manufacturing by Bell operating companies.
Sec. 202. Regulation of entry into alarm monitoring services.
Sec. 203. Regulation of electronic publishing.
Sec. 204. Privacy of customer information.
Sec. 205. Telemessaging services.
Sec. 206. Enhanced services safeguards.
      TITLE III--TELECOMMUNICATIONS INFRASTRUCTURE AND COMPETITION

Sec. 301. Policy; definitions.
Sec. 302. Equal access and network functionality and quality.
Sec. 303. Telecommunications services for educational institutions, 
                            health care institutions, and libraries.
Sec. 304. Discriminatory interconnection.
Sec. 305. Expedited licensing of new technologies and services.
Sec. 306. New or extended lines.
Sec. 307. Pole attachments.
Sec. 308. Civic participation.
Sec. 309. Competition by small business and minority-owned business 
                            concerns.
                TITLE IV--COMMUNICATIONS COMPETITIVENESS

Sec. 401. Cable service provided by telephone companies.
Sec. 402. Review of broadcasters' ownership restrictions.
Sec. 403. Review of statutory ownership restriction.
Sec. 404. Broadcaster spectrum flexibility.
Sec. 405. Interactive services and critical interfaces.
Sec. 406. Video programming accessibility.
Sec. 407. Public access.
Sec. 408. Automated ship distress and safety systems.
Sec. 409. Exclusive Federal jurisdiction over direct broadcast 
                            satellite service.
Sec. 410. Technical amendments.
Sec. 411. Availability of screening devices to preclude display of 
                            encrypted programming.
     TITLE V--PROCUREMENT PRACTICES OF TELECOMMUNICATIONS PROVIDERS

Sec. 501. Findings.
Sec. 502. Purpose.
Sec. 503. Annual plan submission.
Sec. 504. Sanctions and remedies.
Sec. 505. Definitions.
         TITLE VI--FEDERAL COMMUNICATIONS COMMISSION RESOURCES

Sec. 601. Authorization of appropriations.

      TITLE I--SUPERSESSION OF THE MODIFICATION OF FINAL JUDGMENT

SEC. 101. AUTHORIZATION FOR BELL OPERATING COMPANY TO ENTER COMPETITIVE 
              LINES OF BUSINESS.

    (a) Application.--
            (1) In general.--After the applicable date specified in 
        paragraph (2), a Bell operating company may apply to the 
        Attorney General and the Federal Communications Commission for 
        authorization, notwithstanding the Modification of Final 
        Judgment--
                    (A) to provide alarm monitoring services, or
                    (B) to provide interexchange telecommunications 
                services.
        The application shall describe with particularity the nature 
        and scope of the activity, and of each product market or 
        service market, and each geographic market, for which 
        authorization is sought.
            (2) Applicable dates.--For purposes of paragraph (1), the 
        applicable date after which a Bell operating company may apply 
        for authorization shall be--
                    (A) the date of the enactment of this Act, with 
                respect to providing interexchange telecommunications 
                services, and
                    (B) the date that occurs 66 months after the date 
                of the enactment of this Act, with respect to providing 
                alarm monitoring services.
            (3) Interagency notification.--Whenever the Attorney 
        General or the Federal Communications Commission receives an 
        application made under paragraph (1), the recipient of the 
        application shall notify the other of such receipt.
            (4) Publication.--Not later than 10 days after receiving an 
        application made under paragraph (1), the Attorney General and 
        the Federal Communications Commission jointly shall publish the 
        application in the Federal Register.
    (b) Separate Determinations by the Attorney General and the Federal 
Communications Commission.--
            (1) Comment period.--Not later than 45 days after an 
        application is published under subsection (a)(4), interested 
        persons may submit written comments to the Attorney General, to 
        the Federal Communications Commission, or to both regarding the 
        application. Submitted comments shall be available to the 
        public.
            (2) Interagency consultation.--Before making their 
        respective determinations under paragraph (3), the Attorney 
        General and the Federal Communications Commission shall consult 
        with each other regarding the application involved.
            (3) Determinations.--(A) After the time for comment under 
        paragraph (1) has expired, but not later than 180 days after 
        receiving an application made under subsection (a)(1), the 
        Attorney General and the Federal Communications Commission each 
        shall issue separately a written determination, on the record 
        after an opportunity for a hearing, with respect to granting 
        the authorization for which the Bell operating company has 
        applied.
            (B) Such determination shall be based on a preponderance of 
        the evidence.
            (C) Any person who would be threatened with loss or damage 
        as a result of the approval of the authorization requested 
        shall be permitted to participate as a party in the proceeding 
        on which the determination is based.
            (D)(i) The Attorney General shall approve the granting of 
        the authorization requested in the application only to the 
        extent that the Attorney General finds that there is no 
        substantial possibility that such company or its affiliates 
        could use monopoly power to impede competition in the market 
        such company seeks to enter. The Attorney General shall deny 
        the remainder of the requested authorization.
            (ii) The Federal Communications Commission shall approve 
        the granting of the requested authorization only to the extent 
        that the Commission finds that granting the requested 
        authorization is consistent with the public interest, 
        convenience, and necessity. The Commission shall deny the 
        remainder of the requested authorization.
            (iii) Notwithstanding clauses (i) and (ii), not later than 
        180 days after the date of the enactment of this Act, the 
        Attorney General and the Federal Communications Commission 
        shall each prescribe regulations to establish procedures and 
        criteria for the expedited determination and approval of 
        applications for authorization to provide interexchange 
        telecommunications services (other than services described in 
        section 102(c)) that are incidental to the provision of another 
        service which the Bell operating company may lawfully provide. 
        Before prescribing such regulations, the Attorney General and 
        the Commission shall consult with respect to such regulations, 
        including consultation for the purpose of avoiding unnecessary 
        inconsistencies in such regulations.
            (E) In making its determination under subparagraph (D)(ii) 
        regarding the public interest, convenience, and necessity, the 
        Commission shall take into account--
                    (i) the probability that granting the requested 
                authorization will secure reduced rates for consumers 
                of the services that are the subject of the 
                application, especially residential subscribers,
                    (ii) whether granting the requested authorization 
                will result in increases in rates for consumers of 
                exchange service,
                    (iii) the extent to which granting the requested 
                authorization will expedite the delivery of new 
                services and products to consumers,
                    (iv) the extent to which the Commission's 
                regulations, or other laws or regulations, will 
                preclude the applicant from engaging in predatory 
                pricing or other anticompetitive economic practices 
                with respect to the services that are the subject of 
                the application,
                    (v) the extent to which granting the requested 
                authorization will permit collusive acts or practices 
                between or among Bell operating companies that are not 
                affiliates of each other,
                    (vi) whether granting the requested authorization 
                will result, directly or indirectly, in increasing 
                concentration among providers of the service that is 
                the subject of the application to such an extent that 
                consumers will not be protected from rates that are 
                unjust or unreasonable or that are unjustly or 
                unreasonably discriminatory, and
                    (vii) in the case of an application to provide 
                alarm monitoring services, whether the Commission has 
                the capability to enforce effectively the regulations 
                established pursuant to section 230 of the 
                Communications Act of 1934 as added by this Act.
            (F) A determination that approves the granting of any part 
        of a requested authorization shall describe with particularity 
        the nature and scope of the activity, and of each product 
        market or service market, and each geographic market, to which 
        approval applies.
            (4) Publication.--Not later than 10 days after issuing a 
        determination under paragraph (3), the Attorney General or the 
        Federal Communications Commission, as the case may be, shall 
        publish in the Federal Register a brief description of the 
        determination.
            (5) Finality.--A determination made under paragraph (3) 
        shall be final unless a civil action with respect to such 
        determination is timely commenced under subsection (c)(1).
            (6) Authorization granted.--A requested authorization is 
        granted to the extent that--
                    (A)(i) both the Attorney General and the Federal 
                Communications Commission approve under paragraph (3) 
                the granting of the authorization, and
                    (ii) neither of their approvals is vacated or 
                reversed as a result of judicial review authorized by 
                subsection (c), or
                    (B) as a result of such judicial review of either 
                or both determinations, both the Attorney General and 
                the Federal Communications Commission approve the 
                granting of the requested authorization.
    (c) Judicial Review.--
            (1) Commencement of action.--Not later than 45 days after a 
        determination by the Attorney General or the Federal 
        Communications Commission is published under subsection (b)(4), 
        the Bell operating company that applied to the Attorney General 
        and the Federal Communications Commission under subsection (a), 
        or any person who would be threatened with loss or damage as a 
        result of the determination regarding such company's engaging 
        in the activity described in such company's application, may 
        commence an action in the United States Court of Appeals for 
        the District of Columbia Circuit against the Attorney General 
        or the Federal Communications Commission, as the case may be, 
        for judicial review of the determination regarding the 
        application.
            (2) Certification of record.--As part of the answer to the 
        complaint, the Attorney General or the Federal Communications 
        Commission, as the case may be, shall file in such court a 
        certified copy of the record upon which the determination is 
        based.
            (3) Consolidation of actions.--The court shall consolidate 
        for judicial review all actions commenced under this subsection 
        with respect to the application.
            (4) Judgment.--(A) The court shall enter a judgment after 
        reviewing the determination in accordance with section 706 of 
        title 5 of the United States Code.
            (B) A judgment--
                    (i) affirming any part of the determination that 
                approves granting all or part of the requested 
                authorization, or
                    (ii) reversing any part of the determination that 
                denies all or part of the requested authorization,
        shall describe with particularity the nature and scope of the 
        activity, and of each product market or service market, and 
        each geographic market, to which the affirmance or reversal 
        applies.

SEC. 102. AUTHORIZATION AS PREREQUISITE.

    (a) Prerequisite.--Until a Bell operating company is so authorized 
in accordance with section 101, it shall be unlawful for such company, 
directly or through an affiliated enterprise, to engage in an activity 
described in section 101(a)(1).
    (b) General Exceptions.--Except with respect to providing alarm 
monitoring services, subsection (a) shall not prohibit a Bell operating 
company from engaging, at any time after the date of the enactment of 
this Act--
            (1) 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--
                    (A) such order was entered on or before the date of 
                the enactment of this Act, or
                    (B) a request for such authorization was pending 
                before such court on the date of the enactment of this 
                Act,
            (2) in providing intrastate interexchange 
        telecommunications services if--
                    (A) after the date of the enactment of this Act, 
                the State involved approves or authorizes such company 
                to provide such services, after taking into account the 
                potential effects of such approval or authorization on 
                competition and the public interest,
                    (B) not less than 90 days before such company 
                offers to provide such services, such company gives 
                notice to the public and the Attorney General that such 
                approval or authorization has been granted by such 
                State, and appoints an agent for the purpose of 
                receiving service of process,
                    (C) the Attorney General--
                            (i) fails to commence a civil action in 
                        accordance with subsection (d), not later than 
                        90 days after the Attorney General receives the 
                        notice described in subparagraph (B), to enjoin 
                        such company from providing such services, or
                            (ii) so commences such civil action but--
                                    (I) fails to obtain an injunction 
                                from the district court involved 
                                enjoining such company from providing 
                                such services, or
                                    (II) such injunction issued by such 
                                court is vacated on appeal, and
                    (D) the Bell operating company is required by 
                regulations prescribed by the Federal Communications 
                Commission and such State, for the services subject to 
                their respective jurisdictions, to pay a 
                nondiscriminatory access charge to the local exchange 
                carrier (including itself) that provides the Bell 
                operating company with telephone exchange access, and
            (3) in providing interexchange telecommunications services 
        through resale of telecommunications services purchased from a 
        person who is not an affiliated enterprise of such company if--
                    (A) such interexchange telecommunications services 
                involve only telecommunications that originate in a 
                State in which, on the date of the enactment of this 
                Act, such company provided wireline telephone exchange 
                services,
                    (B) such State has approved or authorized persons 
                that are not affiliated enterprises of such company to 
                provide intraexchange toll telecommunications services 
                in such a manner that customers in such State have the 
                ability to route automatically, without the use of any 
                access code, their intraexchange toll 
                telecommunications to the telecommunications services 
                provider of the customer's designation from among 2 or 
                more telecommunications services providers (including 
                such company),
                    (C) after the date of the enactment of this Act and 
                not less than 90 days before such company offers to 
                provide such interexchange telecommunications services, 
                such company gives notice to the public and the 
                Attorney General that such approval or authorization 
                has been granted by such State, and
                    (D) the Attorney General--
                            (i) fails to commence a civil action in 
                        accordance with subsection (d), not later than 
                        90 days after the Attorney General receives the 
                        notice described in subparagraph (C), to enjoin 
                        such company from providing such services, or
                            (ii) so commences such civil action but--
                                    (I) fails to obtain an injunction 
                                from the district court involved 
                                enjoining such company from providing 
                                such services, or
                                    (II) such injunction issued by such 
                                court is vacated on appeal.
    (c) Exceptions for Incidental Services.--Subsection (a) shall not 
prohibit a Bell operating company, at any time after the date of the 
enactment of this Act, from providing interexchange telecommunications 
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, 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 exchange areas within a cable system 
        franchise area in which such company is not, on the date of the 
        enactment of this Act, a provider of wireline telephone 
        exchange service,
            (3) providing commercial mobile services in accordance with 
        section 332(c) of the Communications Act of 1934 (47 U.S.C. 
        332(c)) and with the regulations prescribed by the Commission 
        pursuant to paragraph (7) of such section,
            (4) providing a service that permits a customer that is 
        located in one exchange area to retrieve stored information 
        from, or file information for storage in, information storage 
        facilities of such company that are located in another exchange 
        area,
            (5) providing signaling information used in connection with 
        the provision of 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, interexchange 
        carriers at any location within the area in which such company 
        provides exchange services or exchange access.
    (d) Civil Action.--(1) For the purpose of paragraph (2) or (3) of 
subsection (b), the Attorney General shall commence a civil action, not 
later than 90 days after receiving the notice required by paragraph 
(2)(B) or (3)(C) of such subsection, respectively, to enjoin such 
company from providing interexchange telecommunications services 
pursuant to such paragraph if the Attorney General determines that the 
standard specified in the first sentence of section 101(b)(3)(D)(i) is 
not satisfied with respect to providing such interexchange 
telecommunications services.
    (2) With respect to a civil action commenced for the purpose of 
paragraph (2) or (3) of subsection (b), venue shall lie in any district 
court of the United States in the State that granted the approval or 
authorization referred to in such paragraph.
    (3) If the Attorney General does not commence a civil action in 
accordance with paragraph (1) before the expiration of the 90-day 
period beginning on the date the Attorney General receives such notice, 
the Attorney General shall publish in the Federal Register a brief 
statement that the Attorney General has determined not to commence such 
civil action.

SEC. 103. LIMITATIONS ON MANUFACTURING AND PROVIDING EQUIPMENT.

    (a) Absolute Limitation.--Until the expiration of the 1-year period 
beginning on the date of the enactment of this Act, it shall be 
unlawful for a Bell operating company, directly or through an 
affiliated enterprise, to manufacture or provide telecommunications 
equipment, or to manufacture customer premises equipment.
    (b) Qualified Limitation.--
            (1) Required conditions.--After the expiration of the 1-
        year period beginning on the date of the enactment of this Act, 
        it shall be lawful for a Bell operating company, directly or 
        through an affiliated enterprise, to manufacture or provide 
        telecommunications equipment, or to manufacture customer 
        premises equipment, to the extent described in a notification 
        to the Attorney General that meets the requirements of 
        paragraph (2) and only if--
                    (A) such company submits to the Attorney General, 
                at any time after the date of the enactment of this 
                Act, the notification described in paragraph (2) and 
                such additional material and information described in 
                such paragraph as the Attorney General may request, and 
                complies with the waiting period specified in paragraph 
                (3), and
                    (B)(i) the waiting period specified in paragraph 
                (3) expires without the commencement of a civil action 
                by the Attorney General in accordance with paragraph 
                (4) to enjoin such company from engaging in the 
                activity described in such notification, or
                    (ii) before the expiration of such waiting period, 
                the Attorney General notifies such company in writing 
                that the Attorney General does not intend to commence 
                such a civil action with respect to such activity.
            (2) Notification.--The notification required by paragraph 
        (1) shall be in such form and shall contain such documentary 
        material and information relevant to the proposed activity as 
        is necessary and appropriate for the Attorney General to 
        determine whether there is no substantial possibility that such 
        company or its affiliates could use monopoly power to impede 
        competition in the market such company seeks to enter for such 
        activity.
            (3) Waiting period.--The waiting period referred to in 
        paragraph (1) is the 1-year period beginning on the date the 
        notification required by such paragraph is received by the 
        Attorney General.
            (4) Civil action.--Not later than 1 year after receiving a 
        notification required by paragraph (1), the Attorney General 
        may commence a civil action in an appropriate district court of 
        the United States to enjoin the Bell operating company from 
        engaging in the activity described in such notification, if the 
        Attorney General determines that there is a substantial 
        possibility that such company or its affiliates could use 
        monopoly power to impede competition in the market it seeks to 
        enter with respect to such activity.
    (c) Exception for Previously Authorized Activities.--Subsections 
(a) and (b) shall not prohibit a Bell operating company from engaging, 
at any time after the date of the enactment of this Act, 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 Act, or
            (2) a request for such authorization was pending before 
        such court on the date of the enactment of this Act.

SEC. 104. ANTICOMPETITIVE TYING ARRANGEMENTS.

    A Bell operating company with monopoly power in any exchange 
service market shall not tie (directly or indirectly) in any relevant 
market the sale of any product or service to the provision of any 
telecommunications service, if the effect of such tying may be to 
substantially lessen competition, or to tend to create a monopoly, in 
any line of commerce.

SEC. 105. ENFORCEMENT.

    (a) Equitable Powers of United States Attorneys.--It shall be the 
duty of the several United States attorneys, under the direction of the 
Attorney General, to institute proceedings in equity in their 
respective districts to prevent and restrain violations of this title.
    (b) Criminal Liability.--Whoever knowingly engages or knowingly 
attempts to engage in an activity that is prohibited by section 102, 
103, or 104 shall be guilty of a felony, and on conviction thereof, 
shall be punished to the same extent as a person is punished upon 
conviction of a violation of section 1 of the Sherman Act (15 U.S.C. 
1).
    (c) Private Right of Action.--Any person who is injured in its 
business or property by reason of a violation of this title--
            (1) may bring a civil action in any district court of the 
        United States in the district in which the defendant resides or 
        is found or has an agent, without respect to the amount in 
        controversy, and
            (2) shall recover threefold the damages sustained, and the 
        cost of suit (including a reasonable attorney's fee).
The court may award under this section, pursuant to a motion by such 
person promptly made, simple interest on actual damages for the period 
beginning on the date of service of such person's pleading setting 
forth a claim under this title and ending on the date of judgment, or 
for any shorter period therein, if the court finds that the award of 
such interest for such period is just in the circumstances.
    (d) Private Injunctive Relief.--Any person shall be entitled to sue 
for and have injunctive relief, in any court of the United States 
having jurisdiction over the parties, against threatened loss or damage 
by a violation of this title, when and under the same conditions and 
principles as injunctive relief is available under section 16 of the 
Clayton Act (15 U.S.C. 26). In any action under this subsection in 
which the plaintiff substantially prevails, the court shall award the 
cost of suit, including a reasonable attorney's fee, to such plaintiff.
    (e) Jurisdiction.--(1) Subject to paragraph (2), the courts of the 
United States shall have exclusive jurisdiction to make determinations 
with respect to a duty, claim, or right arising under this title, other 
than determinations authorized to be made by the Attorney General and 
the Federal Communications Commission under section 101(b)(3).
    (2) The United States Court of Appeals for the District of Columbia 
shall have exclusive jurisdiction to review determinations made under 
section 101(b)(3).
    (3) No action commenced to assert or enforce a duty, claim, or 
right arising under this title shall be stayed pending any such 
determination by the Attorney General or the Federal Communications 
Commission.
    (f) Subpoenas.--In an action commenced under this title, a subpoena 
requiring the attendance of a witness at a hearing or a trial may be 
served at any place within the United States.
    (g) Applicability of Other Laws to Enforcement of This Title.--
            (1) Section 5 of the clayton act.--Section 5 of the Clayton 
        Act (15 U.S.C. 16) shall apply with respect to actions under 
        this section brought by or on behalf of the United States.
            (2) Antitrust civil process act.--Section 2(a) of the 
        Antitrust Civil Process Act (15 U.S.C. 1311(a)) is amended--
                    (A) in paragraph (1) by striking ``and'' at the 
                end,
                    (B) in paragraph (2) by striking the period at the 
                end and inserting ``and'', and
                    (C) by adding at the end the following:
                    ``(3) title I of the Antitrust and Communications 
                Reform Act of 1994.''.

SEC. 106. DEFINITIONS.

    For purposes of this title:
            (1) Affiliate.--The term ``affiliate'' means a person that 
        (directly or indirectly) owns or controls, is owned or 
        controlled by, or is under common ownership or control with, 
        another person. For purposes of this paragraph, to own refers 
        to owning an equity interest (or the equivalent thereof) of 
        more than 50 percent.
            (2) 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.
            (3) Antitrust laws.--The term ``antitrust laws'' has the 
        meaning given it in subsection (a) of the first section of the 
        Clayton Act (15 U.S.C. 12(a)), except that such term includes 
        the Act of June 19, 1936 (49 Stat. 1526; 15 U.S.C. 13 et seq.), 
        commonly known as the Robinson Patman Act, and section 5 of the 
        Federal Trade Commission Act (15 U.S.C. 45) to the extent that 
        such section 5 applies to unfair methods of competition.
            (4) Audio programming.--The term ``audio programming'' 
        means programming provided by, or generally considered 
        comparable to programming provided by, a radio broadcast 
        station.
            (5) 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, or
                    (C) any affiliate of any person described in 
                subparagraph (A) or (B).
            (6) Cable system.--The term ``cable system'' has the 
        meaning given such term in section 602(7) of the Communications 
        Act of 1934 (47 U.S.C. 522(7)).
            (7) Carrier.--The term ``carrier'' has the meaning given 
        such term in section 3 of the Communications Act of 1934 (47 
        U.S.C. 153).
            (8) Commercial mobile services.--The term ``commercial 
        mobile services'' has the meaning given such term in section 
        332(d) of the Communications Act of 1934 (47 U.S.C. 332(d)).
            (9) 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, and includes software integral to 
        such equipment.
            (10) Exchange access.--The term ``exchange access'' means 
        exchange services provided for the purpose of originating or 
        terminating interexchange telecommunications.
            (11) Exchange area.--The term ``exchange area'' means a 
        contiguous geographic area 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 Act.
            (12) Exchange service.--The term ``exchange service'' means 
        a telecommunications service provided within an exchange area.
            (13) Information.--Except as provided in paragraph (17), 
        the term ``information'' means knowledge or intelligence 
        represented by any form of writing, signs, signals, pictures, 
        sounds, or other symbols.
            (14) Interexchange telecommunications.--The term 
        ``interexchange telecommunications'' means telecommunications 
        between a point located in an exchange area and a point located 
        outside such exchange area.
            (15) Manufacture.--The term ``manufacture'' has the meaning 
        given such term under the Modification of Final Judgment.
            (16) 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.
            (17) 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 the Communications Act of 1934 (47 U.S.C. 522(13)).
            (18) Person.--The term ``person'' has the meaning given 
        such term in subsection (a) of the first section of the Clayton 
        Act (15 U.S.C. 12(a)).
            (19) State.--The term ``State'' means any of the several 
        States, the District of Columbia, the Commonwealth of Puerto 
        Rico, the Commonwealth of the Northern Mariana Islands, the 
        Federated States of Micronesia, the Republic of the Marshall 
        Islands, Palau, or any territory or possession of the United 
        States.
            (20) Telecommunications.--The term ``telecommunications'' 
        means the transmission of information between points by 
        electromagnetic means.
            (21) Telecommunications equipment.--The term 
        ``telecommunications equipment'' means equipment, other than 
        customer premises equipment, used by a carrier to provide a 
        telecommunications service, and includes software integral to 
        such equipment.
            (22) Telecommunications service.--The term 
        ``telecommunications service'' means the offering for hire of 
        transmission facilities or of telecommunications by means of 
        such facilities.
            (23) Transmission facilities.--The term ``transmission 
        facilities'' means equipment (including wire, cable, microwave, 
        satellite, and fiber-optics) that transmits information by 
        electromagnetic means or that directly supports such 
        transmission, but does not include customer premises equipment.
            (24) Video programming.--The term ``video programming'' has 
        the meaning given such term in section 602(19) of the 
        Communications Act of 1934 (47 U.S.C. 522(19)).

SEC. 107. RELATIONSHIP TO OTHER LAWS.

    (a) Modification of Final Judgment.--This title shall supersede the 
Modification of Final Judgment, except that this title 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.--Except as provided in section 105(g), 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), this title shall not be construed to modify, impair, or 
supersede Federal, State, or local law unless expressly so provided in 
this title.
    (2) This title shall supersede State and local law to the extent 
that such law would impair or prevent the operation of this title.
    (d) Cumulative Penalty.--Any penalty imposed, or relief granted, 
under this title shall be in addition to, and not in lieu of, any 
penalty or relief authorized by any other law to be imposed with 
respect to conduct described in this title.

SEC. 108. REQUIRED REGULATORY ACTIONS.

    (a) Regulations To Prohibit Cross-Subsidies.--Not later than 180 
days after the date of enactment of this Act, the Federal 
Communications Commission shall review its regulations and revise such 
regulations to the extent necessary to prevent a Bell operating company 
from engaging in any improper cross-subsidization in connection with 
any of the services described in paragraphs (1) through (6) of section 
102(c).
    (b) Mobile Service Access.--
            (1) Amendment.--Section 332(c) of the Communications Act of 
        1934 (47 U.S.C. 332(c)) is amended by adding at the end the 
        following new paragraph:
            ``(7) Mobile services access.--Within 180 days after the 
        date of enactment of this paragraph, the Commission shall 
        review its regulations with respect to the access to 
        interexchange services provided to subscribers to commercial 
        mobile services and revise such regulations to the extent 
        necessary to protect the public interest, convenience, and 
        necessity. In revising such regulations, the Commission--
                    ``(A) shall, until January 1, 1998, and may 
                thereafter (i) require that each provider of two-way 
                commercial mobile services afford its subscribers 
                nondiscriminatory access to a provider of interexchange 
                services of the subscriber's choice, and (ii) establish 
                geographic service areas within which providers of two-
                way commercial mobile services shall be exempt from the 
                access obligation under clause (i);
                    ``(B) may establish or revise technical 
                interconnection requirements on providers of two-way 
                commercial mobile services;
                    ``(C) subject to section 104 of the Antitrust and 
                Communications Reform Act of 1994, and the provisions 
                of paragraph (1) of this subsection and subparagraph 
                (A) of this paragraph and the regulations prescribed 
                thereunder, may permit (with or without conditions) or 
                prohibit the bundling of two-way commercial mobile 
                services with interexchange services; and
                    ``(D) shall not, in establishing any requirement 
                under subparagraph (A), (B), or (C) establish different 
                requirements--
                            ``(i) for providers of two-way commercial 
                        mobile services that also are, or are 
                        affiliated with, providers of wireline 
                        telephone exchange service; and
                            ``(ii) for providers of two-way commercial 
                        mobile services that are not, and are not 
                        affiliated with, providers of wireline 
                        telephone exchange service.
        The regulations prescribed pursuant to this paragraph shall 
        supersede any inconsistent requirements imposed by the 
        Modification of Final Judgment (as such term is defined in 
        section 106 of the Antitrust and Communications Reform Act of 
        1994). Nothing in this paragraph shall affect the Commission's 
        authority to establish the terms and conditions under which 
        providers of telephone exchange services provide access to the 
        local exchange networks for commercial mobile services or 
        interexchange services.''.
            (2) 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 (7) of section 332(c)''.

 TITLE II--REGULATION OF MANUFACTURING, ALARM SERVICES, AND ELECTRONIC 
                 PUBLISHING BY BELL OPERATING COMPANIES

SEC. 201. REGULATION OF MANUFACTURING BY BELL OPERATING COMPANIES.

    Title II of the Communications Act of 1934 (47 U.S.C. 201 et seq.) 
is amended by adding at the end the following new section:

``SEC. 229. REGULATION OF MANUFACTURING BY BELL OPERATING COMPANIES.

    ``(a) General Authority.--Subject to the requirements of this 
section and the regulations prescribed thereunder, but notwithstanding 
any restriction or obligation imposed before the date of enactment of 
this section pursuant to the Modification of Final Judgment on the 
lines of business in which a Bell operating company may engage, a Bell 
operating company, through an affiliate of that company, may 
manufacture and provide telecommunications equipment and manufacture 
customer premises equipment.
    ``(b) Separate Manufacturing Affiliate.--Any manufacturing or 
provision authorized under subsection (a) shall be conducted only 
through an affiliate that is separate from any Bell operating company.
    ``(c) Commission Regulation of Manufacturing Affiliate.--
            ``(1) Regulations required.--The Commission shall prescribe 
        regulations to ensure that Bell operating companies and their 
        affiliates comply with the requirements of this section.
            ``(2) Books, records, accounts.--A manufacturing affiliate 
        required by subsection (b) shall--
                    ``(A) maintain books, records, and accounts that 
                are separate from the books, records, and accounts of 
                its affiliated Bell operating company and that identify 
                all financial transactions between the manufacturing 
                affiliate and its affiliated Bell operating company, 
                and
                    ``(B) even if such manufacturing affiliate is not a 
                publicly held corporation, prepare financial statements 
                which are in compliance with financial reporting 
                requirements under the Federal securities laws for 
                publicly held corporations, file such statements with 
                the Commission, and make such statements available for 
                public inspection.
            ``(3) In-kind benefits to affiliate.--Consistent with the 
        provisions of this section, neither a Bell operating company 
        nor any of its nonmanufacturing affiliates shall perform sales, 
        advertising, installation, production, or maintenance 
        operations for a manufacturing affiliate, except that--
                    ``(A) a Bell operating company and its 
                nonmanufacturing affiliates may sell, advertise, 
                install, and maintain telecommunications equipment and 
                customer premises equipment after acquiring such 
                equipment from their manufacturing affiliate; and
                    ``(B) institutional advertising, of a type not 
                related to specific telecommunications equipment, 
                carried out by the Bell operating company or its 
                affiliates, shall be permitted.
            ``(4) Domestic manufacturing required.--
                    ``(A) General rule.--Except as otherwise provided 
                in this paragraph, a manufacturing affiliate required 
                by subsection (b) shall conduct all of its 
                manufacturing within the United States and all 
                component parts of customer premises equipment 
                manufactured by such affiliate, and all component parts 
                of telecommunications equipment manufactured by such 
                affiliate, shall have been manufactured within the 
                United States.
                    ``(B) Exception.--(i) Such affiliate may use 
                component parts manufactured outside the United States 
                if--
                            ``(I) such affiliate first makes a good 
                        faith effort to obtain equivalent component 
                        parts manufactured within the United States at 
                        reasonable prices, terms, and conditions; and
                            ``(II) for the aggregate of 
                        telecommunications equipment and customer 
                        premises equipment manufactured and sold in the 
                        United States by such affiliate, the cost of 
                        the components manufactured outside the United 
                        States contained in all such equipment does not 
                        exceed 40 percent of the sales revenue derived 
                        in any calendar year from such equipment.
                    ``(ii) Subparagraph (A) shall apply except to the 
                extent that any of its provisions are determined to be 
                inconsistent with any multilateral or bilateral 
                agreement to which the United States is a party.
                    ``(C) Certification required.--Any such affiliate 
                that uses component parts manufactured outside the 
                United States in the manufacture of telecommunications 
                equipment and customer premises equipment within the 
                United States shall--
                            ``(i) certify to the Commission that a good 
                        faith effort was made to obtain equivalent 
                        parts manufactured within the United States at 
                        reasonable prices, terms, and conditions, which 
                        certification shall be filed on a quarterly 
                        basis with the Commission and list component 
                        parts, by type, manufactured outside the United 
                        States; and
                            ``(ii) certify to the Commission on an 
                        annual basis that such affiliate complied with 
                        the requirements of subparagraph (B)(ii), as 
                        adjusted in accordance with subparagraph (G).
                    ``(D) Remedies for failures.--(i) If the Commission 
                determines, after reviewing the certification required 
                in subparagraph (C)(i), that such affiliate failed to 
                make the good faith effort required in subparagraph 
                (B)(i) or, after reviewing the certification required 
                in subparagraph (C)(ii), that such affiliate has 
                exceeded the percentage specified in subparagraph 
                (B)(ii), the Commission may impose penalties or 
                forfeitures as provided for in title V of this Act.
                    ``(ii) Any supplier claiming to be damaged because 
                a manufacturing affiliate failed to make the good faith 
                effort required in subparagraph (B)(i) may make 
                complaint to the Commission as provided for in section 
                208 of this Act, or may bring suit for the recovery of 
                actual damages for which such supplier claims such 
                affiliate may be liable under the provisions of this 
                Act in any district court of the United States of 
                competent jurisdiction.
                    ``(E) Annual report.--The Commission, in 
                consultation with the Secretary of Commerce, shall, on 
                an annual basis, determine the cost of component parts 
                manufactured outside the United States contained in all 
                telecommunications equipment and customer premises 
                equipment sold in the United States as a percentage of 
                the revenues from sales of such equipment in the 
                previous calendar year.
                    ``(F) Use of intellectual property in 
                manufacture.--Notwithstanding subparagraph (A), a 
                manufacturing affiliate may use intellectual property 
                created outside the United States in the manufacture of 
                telecommunications equipment and customer premises 
                equipment in the United States. A component 
                manufactured using such intellectual property shall not 
                be treated for purposes of subparagraph (B)(ii) as a 
                component manufactured outside the United States solely 
                on the basis of the use of such intellectual property.
                    ``(G) Restrictions on commission authority.--The 
                Commission may not waive or alter the requirements of 
                this paragraph, except that the Commission, on an 
                annual basis, shall adjust the percentage specified in 
                subparagraph (B)(ii) to the percentage determined by 
                the Commission, in consultation with the Secretary of 
                Commerce, pursuant to subparagraph (E).
            ``(5) Insulation of rate payers from manufacturing 
        affiliate debt.--Any debt incurred by any such manufacturing 
        affiliate may not be issued by its affiliated Bell operating 
        company and such manufacturing affiliate shall be prohibited 
        from incurring debt in a manner that would permit a creditor, 
        on default, to have recourse to the assets of its affiliated 
        Bell operating company.
            ``(6) Relation to other affiliates.--A manufacturing 
        affiliate required by subsection (b) shall not be required to 
        operate separately from the other affiliates of its affiliated 
        Bell operating company, but if an affiliate of a Bell operating 
        company becomes affiliated with a manufacturing entity, such 
        affiliate shall be treated as a manufacturing affiliate of that 
        Bell operating company (except for purposes of paragraph (3)) 
        and shall comply with the requirements of this section.
            ``(7) Availability of equipment to other carriers.--A 
        manufacturing affiliate required by subsection (b) shall make 
        available, without discrimination or preference as to price, 
        delivery, terms, or conditions, to any common carrier any 
        telecommunications equipment that is used in the provision of 
        telephone exchange service and that is manufactured by such 
        affiliate only if such purchasing carrier--
                    ``(A) does not manufacture telecommunications 
                equipment, and does not have an affiliated 
                telecommunications equipment manufacturing entity; or
                    ``(B) agrees to make available, to the Bell 
                operating company affiliated with such manufacturing 
                affiliate or any common carrier affiliate of such Bell 
                operating company, any telecommunications equipment 
                that is used in the provision of telephone exchange 
                service and that is manufactured by such purchasing 
                carrier or by any entity or organization with which 
                such purchasing carrier is affiliated.
            ``(8) Sales practices of manufacturing affiliates.--
                    ``(A) Prohibition of discontinuation of equipment 
                for which there is reasonable demand.--A manufacturing 
                affiliate required by subsection (b) shall not 
                discontinue or restrict sales to a common carrier of 
                any telecommunications equipment that is used in the 
                provision of telephone exchange service and that such 
                affiliate manufactures for sale as long as there is 
                reasonable demand for the equipment by such carriers; 
                except that such sales may be discontinued or 
                restricted if such manufacturing affiliate demonstrates 
                to the Commission that it is not making a profit, under 
                a marginal cost standard implemented by the Commission 
                by regulation, on the sale of such equipment.
                    ``(B) Determinations of reasonable demand.--Within 
                60 days after receipt of an application under 
                subparagraph (A), the Commission shall reach a 
                determination as to the existence of reasonable demand 
                for purposes of such subparagraph. In making such 
                determination the Commission shall consider--
                            ``(i) whether the continued manufacture of 
                        the equipment will be profitable;
                            ``(ii) whether the equipment is 
                        functionally or technologically obsolete;
                            ``(iii) whether the components necessary to 
                        manufacture the equipment continue to be 
                        available;
                            ``(iv) whether alternatives to the 
                        equipment are available in the market; and
                            ``(v) such other factors as the Commission 
                        deems necessary and proper.
            ``(9) Joint planning obligations.--Each Bell operating 
        company shall, consistent with the antitrust laws, (including 
        title I of the Antitrust and Communications Reform Act of 
        1994), engage in joint network planning and design with other 
        contiguous common carriers providing telephone exchange 
        service, but agreement with such other carriers shall not be 
        required as a prerequisite for the introduction or deployment 
        of services pursuant to such joint network planning and design.
    ``(d) Information Requirements.--
            ``(1) Filing of 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) Filing as prerequisite to disclosure to affiliate.--A 
        Bell operating company shall not disclose to any of its 
        affiliates any information required to be filed under paragraph 
        (1) unless that information is 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 in competition 
        with a Bell operating company's manufacturing affiliate have 
        access to the information with respect to the protocols and 
        technical requirements for connection with and use of its 
        telephone exchange service facilities required for such 
        competition that such company makes available to its 
        manufacturing affiliate.
            ``(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.
    ``(e) Additional Competition Requirements.--The Commission shall 
prescribe regulations requiring that any Bell operating company which 
has an affiliate that engages in any manufacturing authorized by 
subsection (a) shall--
            ``(1) provide, to other manufacturers of telecommunications 
        equipment and customer premises equipment that is functionally 
        equivalent to equipment manufactured by the Bell operating 
        company manufacturing affiliate, opportunities to sell such 
        equipment to such Bell operating company which are comparable 
        to the opportunities which such Company provides to its 
        affiliates; and
            ``(2) not subsidize its manufacturing affiliate with 
        revenues from telephone exchange service or telephone toll 
        service.
    ``(f) Collaboration Permitted.--Nothing in this section (other than 
subsection (l)) shall be construed to limit or restrict the ability of 
a Bell operating company and its affiliates to engage 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.
    ``(g) Accessibility Requirements.--
            ``(1) Manufacturing.--The Commission shall, within 1 year 
        after the date of enactment of this section, prescribe such 
        regulations as are necessary to ensure that telecommunications 
        equipment and customer premises equipment designed, developed, 
        and fabricated pursuant to the authority granted in this 
        section shall be accessible and usable by individuals with 
        disabilities, including individuals with functional limitations 
        of hearing, vision, movement, manipulation, speech, and 
        interpretation of information, unless the costs of making the 
        equipment accessible and usable would result in an undue burden 
        or an adverse competitive impact.
            ``(2) Network services.--The Commission shall, within 1 
        year after the date of enactment of this section, prescribe 
        such regulations as are necessary to ensure that advances in 
        network services deployed by a Bell operating company shall be 
        accessible and usable by individuals whose access might 
        otherwise be impeded by a disability or functional limitation, 
        unless the costs of making the services accessible and usable 
        would result in an undue burden or adverse competitive impact. 
        Such regulations shall seek to 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.
            ``(3) Compatibility.--The regulations prescribed under 
        paragraphs (1) and (2) shall require that whenever an undue 
        burden or adverse competitive impact would result from the 
        manufacturing or network services requirements in such 
        paragraphs, the manufacturing affiliate that designs, develops, 
        or fabricates the equipment or the Bell operating company that 
        deploys the network service shall ensure that the equipment or 
        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.
            ``(4) Definitions.--As used in this subsection:
                    ``(A) Undue burden.--The term `undue burden' means 
                significant difficulty or expense. In determining 
                whether an activity would result in an undue burden, 
                the following factors shall be considered:
                            ``(i) The nature and cost of the activity.
                            ``(ii) The impact on the operation of the 
                        facility involved in the manufacturing of the 
                        equipment or deployment of the network service.
                            ``(iii) The financial resources of the 
                        manufacturing affiliate in the case of 
                        manufacturing of equipment, for as long as 
                        applicable regulatory rules prohibit cross-
                        subsidization of equipment manufacturing with 
                        revenues from regulated telecommunications 
                        service or when the manufacturing activities 
                        are conducted in a separate subsidiary.
                            ``(iv) The financial resources of the Bell 
                        operating company in the case of network 
                        services, or in the case of manufacturing of 
                        equipment if applicable regulatory rules permit 
                        cross-subsidization of equipment manufacturing 
                        with revenues from regulated telecommunications 
                        services and the manufacturing activities are 
                        not conducted in a separate subsidiary.
                            ``(v) The type of operation or operations 
                        of the manufacturing affiliate or Bell 
                        operating company as applicable.
                    ``(B) Adverse competitive impact.--In determining 
                whether the activity would result in an adverse 
                competitive impact, the following factors shall be 
                considered:
                            ``(i) Whether such activity would raise the 
                        cost of the equipment or network service in 
                        question beyond the level at which there would 
                        be sufficient consumer demand by the general 
                        population to make the equipment or network 
                        service profitable.
                            ``(ii) Whether such activity would, with 
                        respect to the equipment or network service in 
                        question, put the manufacturing affiliate or 
                        Bell operating company, as applicable, at a 
                        competitive disadvantage in comparison with one 
                        or more providers of one or more competing 
                        products and services. This factor may only be 
                        considered so long as competing manufacturers 
                        and network service providers are not held to 
                        the same obligation with respect to access by 
                        persons with disabilities.
                    ``(C) Activity.--For the purposes of this 
                paragraph, the term `activity' includes--
                            ``(i) the research, design, development, 
                        deployment, and fabrication activities 
                        necessary to comply with the requirements of 
                        this section; and
                            ``(ii) the acquisition of the related 
                        materials and equipment components.
            ``(5) Effective date.--The regulations required by this 
        subsection shall become effective 18 months after the date of 
        enactment of this section.
    ``(h) Public Network Enhancement.--A Bell operating company 
manufacturing affiliate shall, as a part of its overall research and 
development effort, establish a permanent program for manufacturing 
research and development of products and applications for the 
enhancement of the public switched telephone network and to promote 
public access to advanced telecommunications services. Such program 
shall focus its work substantially on developing technological 
advancements in public telephone network applications, 
telecommunication equipment and products, and access solutions to new 
services and technology, including access by (1) public institutions, 
including educational and health care institutions; and (2) people with 
disabilities and functional limitations. Notwithstanding the 
limitations in subsection (a), a Bell operating company and its 
affiliates may engage in such a program in conjunction with a Bell 
operating company not so affiliated or any of its affiliates. The 
existence or establishment of such a program that is jointly provided 
by manufacturing affiliates of Bell operating companies shall satisfy 
the requirements of this section as it pertains to all such affiliates 
of a Bell operating company.
    ``(i) Rulemaking Required.--The Commission shall prescribe 
regulations to implement this section within 180 days after the date of 
enactment of this section.
    ``(j) Administration and Enforcement Authority.--
            ``(1) Commission regulatory 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.
            ``(2) Private actions.--Any common carrier that provides 
        telephone exchange service and that is injured by an act or 
        omission of a Bell operating company or its manufacturing 
        affiliate which violates the requirements of paragraph (7) or 
        (8) of subsection (c), or the Commission's regulations 
        implementing such paragraphs, may initiate an action in a 
        district court of the United States to recover the full amount 
        of damages sustained in consequence of any such violation and 
        obtain such orders from the court as are necessary to terminate 
        existing violations and to prevent future violations; or such 
        regulated local telephone exchange carrier may seek relief from 
        the Commission pursuant to sections 206 through 209.
    ``(k) Existing Manufacturing Authority.--Nothing in this section 
shall prohibit any Bell operating company from engaging, directly or 
through any affiliate, in any manufacturing activity in which any Bell 
operating company or affiliate was authorized to engage on the date of 
enactment of this section.
    ``(l) Antitrust Laws.--Nothing in this section shall be construed 
to modify, impair, or supersede the applicability of any of the 
antitrust laws (including title I of the Antitrust and Communications 
Reform Act of 1994).
    ``(m) Definitions.--As used in this section:
            ``(1) The term `affiliate' means any organization or entity 
        that, directly or indirectly, owns or controls, is owned or 
        controlled by, or is under common ownership with a Bell 
        operating company. The terms `owns', `owned', and `ownership' 
        mean an equity interest of more than 10 percent.
            ``(2) The term `Bell operating company' means those 
        companies listed in appendix A of the Modification of Final 
        Judgment, and includes any successor or assign of any such 
        company, but does not include any affiliate of any such 
        company.
            ``(3) The term `customer premises equipment' means 
        equipment employed on the premises of a person (other than a 
        carrier) to originate, route, or terminate telecommunications.
            ``(4) The term `manufacturing' has the same meaning as such 
        term has under the Modification of Final Judgment.
            ``(5) The term `manufacturing affiliate' means an affiliate 
        of a Bell operating company established in accordance with 
        subsection (b) of this section.
            ``(6) The term `Modification of Final Judgment' means the 
        decree entered August 24, 1982, in United States v. Western 
        Electric Civil Action No. 82-0192 (United States District 
        Court, District of Columbia), and includes any judgment or 
        order with respect to such action entered on or after August 
        24, 1982, and before the date of enactment of this section.
            ``(7) The term `telecommunications' means the transmission, 
        between or among points specified by the user, of information 
        of the user's choosing, without change in the form or content 
        of the information as sent and received, 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.
            ``(8) 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).
            ``(9) The term `telecommunications service' means the 
        offering for hire of telecommunications facilities, or of 
        telecommunications by means of such facilities.''.

SEC. 202. REGULATION OF ENTRY INTO ALARM MONITORING SERVICES.

    (a) Amendment.--Title II of the Communications Act of 1934 is 
amended by adding at the end the following new section:

``SEC. 230. REGULATION OF ENTRY INTO ALARM MONITORING SERVICES.

    ``(a) Regulations Required.--The Commission shall prescribe 
regulations--
            ``(1) to establish such requirements, limitations, or 
        conditions as are (A) necessary and appropriate in the public 
        interest with respect to the provision of alarm monitoring 
        services by Bell operating companies and their affiliates, and 
        (B) effective at such time as a Bell operating company or any 
        of its affiliates is authorized to provide alarm monitoring 
        services;
            ``(2) to prohibit Bell operating companies and their 
        affiliates, at that or any earlier time after the date of 
        enactment of this section, from recording or using in any 
        fashion the occurrence or the contents of calls received by 
        providers of alarm monitoring services for the purposes of 
        marketing such services on behalf of the Bell operating 
        company, any of its affiliates, or any other entity; and
            ``(3) to establish procedures for the receipt and review of 
        complaints concerning violations by such companies of such 
        regulations, or of any other provision of this Act or the 
        regulations thereunder, that result in material financial harm 
        to a provider of alarm monitoring services.
    ``(b) Expedited Consideration of Complaints.--The procedures 
established under subsection (a)(3) shall ensure that the Commission 
will make a final determination with respect to any complaint described 
in such subsection 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, issue a cease and desist order to prevent the Bell 
operating company and its affiliates from continuing to engage in such 
violation pending such final determination.
    ``(c) Remedies.--The Commission may use any remedy available under 
title V of this Act to terminate and punish violations described in 
subsection (a)(2). Such remedies may include, if the Commission 
determines that such violation was willful or repeated, ordering the 
Bell operating company to cease offering alarm monitoring services.
    ``(d) Rulemaking Schedule.--The Commission shall prescribe the 
regulations required by subsection (a)(2) within 180 days after the 
date of enactment of this section and shall prescribe the regulations 
required by subsection (a)(1) and (a)(3) prior to the date on which any 
Bell operating company may commence providing alarm monitoring services 
pursuant to title I of the Antitrust and Communication Reform Act of 
1994.
    ``(e) Definitions.--As used in this section:
            ``(1) Bell operating company.--The term `Bell operating 
        company' has the meaning provided in subparagraphs (A) or (B) 
        of section 106(5) of the Antitrust and Communication Reform Act 
        of 1994.
            ``(2) Alarm monitoring services.--The term `alarm 
        monitoring services' has the meaning provided in section 106(2) 
        of such Act.
            ``(3) Affiliate.--The term `affiliate' means a person that 
        (directly or indirectly) owns or controls, is owned or 
        controlled by, or is under common ownership or control with, 
        another person. For purposes of this paragraph, to own refers 
        to owning an equity interest (or the equivalent thereof) of 
        more than 10 percent.''.

SEC. 203. REGULATION OF ELECTRONIC PUBLISHING.

    Title II of the Communications Act of 1934 (47 U.S.C. 201 et seq.) 
is amended by adding at the end thereof the following new section:

``SEC. 231. REGULATION OF ELECTRONIC PUBLISHING.

    ``(a) In General.--
            ``(1) Prohibition.--A Bell operating company and any 
        affiliate shall not 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.
            ``(2) Permitted activities of separated affiliate.--Nothing 
        in this section shall prohibit a separated affiliate or 
        electronic publishing joint venture from engaging in the 
        provision of electronic publishing or any other lawful service 
        in any area.
            ``(3) Rule of construction.--Nothing in this section shall 
        prohibit a Bell operating company or affiliate from engaging in 
        the provision of any lawful service other than electronic 
        publishing in any area or from engaging in the provision of 
        electronic publishing that is not disseminated by means of such 
        Bell operating company's or any of its affiliates' basic 
        telephone service.
    ``(b) Separated Affiliate or Electronic Publishing Joint Venture 
Requirements.--A separated affiliate or electronic publishing joint 
venture shall--
            ``(1) maintain books, records, and accounts that are 
        separate from those of the Bell operating company and from any 
        affiliate and that record in accordance with generally accepted 
        accounting principles all transactions, whether direct or 
        indirect, with the Bell operating company;
            ``(2) not incur debt in a manner that would permit a 
        creditor upon default to have recourse to the assets of the 
        Bell operating company;
            ``(3) prepare financial statements that are not 
        consolidated with those of the Bell operating company or an 
        affiliate, provided that consolidated statements may also be 
        prepared;
            ``(4) file with the Commission annual reports in a form 
        substantially equivalent to the Form 10-K required by 
        regulations of the Securities and Exchange;
            ``(5) after 1 year from the effective date of this section, 
        not hire--
                    ``(A) as corporate officers, sales and marketing 
                management personnel whose responsibilities at the 
                separated affiliate or electronic publishing joint 
                venture will include the geographic area where the Bell 
                operating company provides basic telephone service;
                    ``(B) network operations personnel whose 
                responsibilities at the separated affiliate or 
                electronic publishing joint venture would require 
                dealing directly with the Bell operating company; or
                    ``(C) any person who was employed by the Bell 
                operating company during the year preceding their date 
                of hire,
        except that the requirements of this paragraph shall not apply 
        to persons subject to a collective bargaining agreement that 
        gives such persons rights to be employed by a separated 
        affiliate or electronic publishing joint venture of the Bell 
        operating company;
            ``(6) not provide any wireline telephone exchange service 
        in any telephone exchange area where a Bell operating company 
        with which it is under common ownership or control provides 
        basic telephone exchange service except on a resale basis;
            ``(7) not use 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;
            ``(8) have performed annually by March 31, or any other 
        date prescribed by the Commission, a compliance review--
                    ``(A) that is conducted by an independent entity 
                that is subject to professional, legal, and ethical 
                obligations for the purpose of determining compliance 
                during the preceding calendar year with any provision 
                of this section that imposes a requirement on such 
                separated affiliate or electronic publishing joint 
                venture; and
                    ``(B) the results of which are maintained by the 
                separated affiliate 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) Bell Operating Company Requirements.--A Bell operating 
company under common ownership or control with a separated affiliate or 
electronic publishing joint venture shall--
            ``(1) not provide a separated affiliate any facilities, 
        services, or basic telephone service information unless it 
        makes such facilities, services, or information available to 
        unaffiliated entities upon request and on the same terms and 
        conditions;
            ``(2) carry out transactions with a separated affiliate in 
        a manner equivalent to the manner that unrelated parties would 
        carry out independent transactions and not based upon the 
        affiliation;
            ``(3) carry out transactions with a separated affiliate, 
        which involve the transfer of personnel, assets, or anything of 
        value, pursuant to written contracts or tariffs that are filed 
        with the Commission and made publicly available;
            ``(4) carry out transactions with a separated affiliate in 
        a manner that is auditable in accordance with generally 
        accepted auditing standards;
            ``(5) value any assets that are transferred to a separated 
        affiliate at the greater of net book cost or fair market value;
            ``(6) value any assets that are transferred to the Bell 
        operating company by its separated affiliate at the lesser of 
        net book cost or fair market value;
            ``(7) except for--
                    ``(A) instances where Commission or State 
                regulations permit in-arrears payment for tariffed 
                telecommunications services; or
                    ``(B) the investment by an affiliate of dividends 
                or profits derived from a Bell operating company,
        not provide debt or equity financing directly or indirectly to 
        a separated affiliate;
            ``(8) comply fully with all applicable Commission and State 
        cost allocation and other accounting rules;
            ``(9) have performed annually by March 31, or any other 
        date prescribed by the Commission, a compliance review--
                    ``(A) that is conducted by an independent entity 
                that is subject to professional, legal, and ethical 
                obligations for the purpose of determining compliance 
                during the preceding calendar year with any provision 
                of this section that imposes a requirement on such Bell 
                operating company; and
                    ``(B) the results of which are maintained by the 
                Bell operating company for a period of 5 years subject 
                to review by any lawful authority;
            ``(10) within 90 days of receiving a review described in 
        paragraph (9), 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;
            ``(11) if it provides facilities or services for 
        telecommunication, transmission, billing and collection, or 
        physical collocation to any electronic publisher, including a 
        separated affiliate, for use with or in connection with the 
        provision of electronic publishing that is disseminated by 
        means of such Bell operating company's or any of its 
        affiliates' basic telephone service, provide to all other 
        electronic publishers the same type of facilities and services 
        on request, on the same terms and conditions or as required by 
        the Commission or a State, and unbundled and individually 
        tariffed to the smallest extent that is technically feasible 
        and economically reasonable to provide;
            ``(12) provide network access and interconnections for 
        basic telephone service to electronic publishers at any 
        technically feasible and economically reasonable point within 
        the Bell operating company's network and at just and reasonable 
        rates that are tariffed (so long as rates for such services are 
        subject to regulation) and that are not higher on a per-unit 
        basis than those charged for such services to any other 
        electronic publisher or any separated affiliate engaged in 
        electronic publishing;
            ``(13) if prices for network access and interconnection for 
        basic telephone service are no longer subject to regulation, 
        provide electronic publishers such services on the same terms 
        and conditions as a separated affiliate receives such services;
            ``(14) if any basic telephone service used by electronic 
        publishers ceases to require a tariff, provide electronic 
        publishers with such service on the same terms and conditions 
        as a separated affiliate receives such service;
            ``(15) provide reasonable advance notification at the same 
        time and on the same terms to all affected electronic 
        publishers of information if such information is within any one 
        or more of the following categories:
                    ``(A) such information is necessary for the 
                transmission or routing of information by an 
                interconnected electronic publisher;
                    ``(B) such information is necessary to ensure the 
                interoperability of an electronic publisher's and the 
                Bell operating company's networks; or
                    ``(C) such information concerns changes in basic 
                telephone service network design and technical 
                standards which may affect the provision of electronic 
                publishing;
            ``(16) not directly or indirectly provide anything of 
        monetary value to a separated affiliate unless in exchange for 
        consideration at least equal to the greater of its net book 
        cost or fair market value, except the investment by an 
        affiliate of dividends or profits derived from a Bell operating 
        company;
            ``(17) not discriminate in the presentation or provision of 
        any gateway for electronic publishing services or any 
        electronic directory of information services, which is provided 
        over such Bell operating company's basic telephone service;
            ``(18) have no directors, officers, or employees in common 
        with a separated affiliate;
            ``(19) not own any property in common with a separated 
        affiliate;
            ``(20) not perform hiring or training of personnel 
        performed on behalf of a separated affiliate;
            ``(21) not 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; and
            ``(22) not perform research and development on behalf of a 
        separated affiliate.
    ``(d) Customer Proprietary Network Information.--Consistent with 
section 232 of this Act, a Bell operating company or any affiliate 
shall not provide to any electronic publisher, including a separated 
affiliate or electronic publishing joint venture, customer proprietary 
network information for use with or in connection with the provision of 
electronic publishing that is disseminated by means of such Bell 
operating company's or any of its affiliates' basic telephone service 
that is not made available by the Bell operating company or affiliate 
to all electronic publishers on the same terms and conditions.
    ``(e) Compliance With Safeguards.--No Bell operating company or 
affiliate thereof (including a separated affiliate) shall act in 
concert with another Bell operating company or any other entity in 
order to knowingly and willfully violate or evade the requirements of 
this section.
    ``(f) Telephone Operating Company Dividends.--Nothing in this 
section shall prohibit an affiliate from investing dividends derived 
from a Bell operating company in its separated affiliate, and 
subsections (i) and (j) of this section shall not apply to any such 
investment.
    ``(g) Joint Marketing.--Except as provided in subsection (h)--
            ``(1) a Bell operating company shall not carry out any 
        promotion, marketing, sales, or advertising for or in 
        conjunction with a separated affiliate; and
            ``(2) 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.
    ``(h) Permissible Joint Activities.--
            ``(1) 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, at compensatory prices, and subject to 
        regulations of the Commission to ensure that the Bell operating 
        company's method of providing telemarketing or referral and its 
        price structure do not competitively disadvantage any 
        electronic publishers regardless of size, including those which 
        do not use the Bell operating company's telemarketing services.
            ``(2) 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 provided that the Bell 
        operating company only provides facilities, services, and basic 
        telephone service information as authorized by this section and 
        provided that the Bell operating company does not own such 
        teaming or business arrangement.
            ``(3) 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, 
        provided that 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.
    ``(i) Transactions Related to the Provision of Electronic 
Publishing Between a Telephone Operating Company and any Affiliate.--
            ``(1) Records of transactions.--Any provision of 
        facilities, services, or basic telephone service information, 
        or any transfer of assets, personnel, or anything of commercial 
        or competitive value, from a Bell operating company to any 
        affiliate related to the provision of electronic publishing 
        shall be--
                    ``(A) recorded in the books and records of each 
                entity;
                    ``(B) auditable in accordance with generally 
                accepted auditing standards; and
                    ``(C) pursuant to written contracts or tariffs 
                filed with the Commission or a State and made publicly 
                available.
            ``(2) Valuation of transfers.--Any transfer of assets 
        directly related to the provision of electronic publishing from 
        a Bell operating company to an affiliate shall be valued at the 
        greater of net book cost or fair market value. Any transfer of 
        assets related to the provision of electronic publishing from 
        an affiliate to the Bell operating company shall be valued at 
        the lesser of net book cost or fair market value.
            ``(3) Prohibition of evasions.--A Bell operating company 
        shall not provide directly or indirectly to a separated 
        affiliate any facilities, services, or basic telephone service 
        information related to the provision of electronic publishing 
        that are not made available to unaffiliated companies on the 
        same terms and conditions.
    ``(j) Transactions Related to the Provision of Electronic 
Publishing Between an Affiliate and a Separated Affiliate.--
            ``(1) Records of transactions.--Any facilities, services, 
        or basic telephone service information provided or any assets, 
        personnel, or anything of commercial or competitive value 
        transferred, from a Bell operating company to any affiliate as 
        described in subsection (i) and then provided or transferred to 
        a separated affiliate shall be--
                    ``(A) recorded in the books and records of each 
                entity;
                    ``(B) auditable in accordance with generally 
                accepted auditing standards; and
                    ``(C) pursuant to written contracts or tariffs 
                filed with the Commission or a State and made publicly 
                available.
            ``(2) Valuation of transfers.--Any transfer of assets 
        directly related to the provision of electronic publishing from 
        a Bell operating company to any affiliate as described in 
        subsection (i) and then transferred to a separated affiliate 
        shall be valued at the greater of net book cost or fair market 
        value. Any transfer of assets related to the provision of 
        electronic publishing from a separated affiliate to any 
        affiliate and then transferred to the Bell operating company as 
        described in subsection (i) shall be valued at the lesser of 
        net book cost or fair market value.
            ``(3) Prohibition of evasions.--An affiliate shall not 
        provide directly or indirectly to a separated affiliate any 
        facilities, services, or basic telephone service information 
        related to the provision of electronic publishing that are not 
        made available to unaffiliated companies on the same terms and 
        conditions.
    ``(k) Other Electronic Publishers.--Except as provided in 
subsection (h)(3)--
            ``(1) A Bell operating company shall not have any officers, 
        employees, property, or facilities in common with any entity 
        whose principal business is publishing of which a part is 
        electronic publishing.
            ``(2) No officer or employee of a Bell operating company 
        shall serve as a director of any entity whose principal 
        business is publishing of which a part is electronic 
        publishing.
            ``(3) For the purposes of paragraphs (1) and (2), a Bell 
        operating company or an affiliate that owns an electronic 
        publishing joint venture shall not be deemed to be engaged in 
        the electronic publishing business solely because of such 
        ownership.
            ``(4) A Bell operating company shall not carry out--
                    ``(A) any marketing or sales for any entity that 
                engages in electronic publishing; or
                    ``(B) any hiring of personnel, purchasing, or 
                production,
        for any entity that engages in electronic publishing.
            ``(5) The Bell operating company shall not provide any 
        facilities, services, or basic telephone service information to 
        any entity that engages in electronic publishing, for use with 
        or in connection with the provision of electronic publishing 
        that is disseminated by means of such Bell operating company's 
        or any of its affiliates' basic telephone service, unless 
        equivalent facilities, services, or information are made 
        available on equivalent terms and conditions to all.
    ``(l) 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.
    ``(m) Sunset.--The provisions of this section shall not apply to 
conduct occurring after June 30, 2000.
    ``(n) 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 separate<plus-minus>d 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)(8) or (c)(9) 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.
    ``(o) Antitrust Laws.--Nothing in this section shall be construed 
to modify, impair, or supersede the applicability of any of the 
antitrust laws (including title I of the Antitrust and Communications 
Reform Act of 1994).
    ``(p) Equal Employment Opportunities.--Any Bell operating company, 
and any affiliate or joint venture or other business partner of a Bell 
operating company, that is engaged in the provision of electronic 
publishing shall be subject to the provisions of section 634 of this 
Act, except that the Commission shall prescribe by regulation 
appropriate job classifications in lieu of the job classifications in 
subsection (d)(3)(A) of such section.
    ``(q) Definitions.--As used in this section--
            ``(1) The term `affiliate' means any entity that, directly 
        or indirectly, owns or controls, is owned or controlled by, or 
        is under common ownership or control with, a Bell operating 
        company. Such term shall not include a separated affiliate.
            ``(2) The term `basic telephone service' means any wireline 
        telephone exchange service, or wireline telephone exchange 
        facility, provided by a Bell operating company in a telephone 
        exchange area, except--
                    ``(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 provided by an 
                affiliate that is required by the Commission to be a 
                corporate entity separate from the Bell operating 
                company.
            ``(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)(A) The term `electronic publishing' means the 
        dissemination, provision, publication, or sale to an 
        unaffiliated entity or person, using a Bell operating company's 
        basic telephone service, of--
                    ``(i) news,
                    ``(ii) entertainment (other than interactive 
                games),
                    ``(iii) business, financial, legal, consumer, or 
                credit material;
                    ``(iv) editorials;
                    ``(v) columns;
                    ``(vi) sports reporting;
                    ``(vii) features;
                    ``(viii) advertising;
                    ``(ix) photos or images;
                    ``(x) archival or research material;
                    ``(xi) legal notices or public records;
                    ``(xii) scientific, educational, instructional, 
                technical, professional, trade, or other literary 
                materials; or
                    ``(xiii) other like or similar information.
            ``(B) The term `electronic publishing' shall not include 
        the following network services:
                    ``(i) Information access, as that term is defined 
                by the Modification of Final Judgment.
                    ``(ii) The transmission of information as a common 
                carrier.
                    ``(iii) 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.
                    ``(iv) Voice storage and retrieval services, 
                including voice messaging and electronic mail services.
                    ``(v) Level 2 gateway services as those services 
                are defined by the Commission's Second Report and 
                Order, Recommendation to Congress and Second Further 
                Notice of Proposed Rulemaking in CC Docket No. 87-266 
                dated August 14, 1992.
                    ``(vi) Data processing services that do not involve 
                the generation or alteration of the content of 
                information.
                    ``(vii) Transaction processing systems that do not 
                involve the generation or alteration of the content of 
                information.
                    ``(viii) Electronic billing or advertising of a 
                Bell operating company's regulated telecommunications 
                services.
                    ``(ix) Language translation.
                    ``(x) Conversion of data from one format to 
                another.
                    ``(xi) The provision of information necessary for 
                the management, control, or operation of a telephone 
                company telecommunications system.
                    ``(xii) The provision of directory assistance that 
                provides names, addresses, and telephone numbers and 
                does not include advertising.
                    ``(xiii) Caller identification services.
                    ``(xiv) Repair and provisioning databases for 
                telephone company operations.
                    ``(xv) Credit card and billing validation for 
                telephone company operations.
                    ``(xvi) 911-E and other emergency assistance 
                databases.
                    ``(xvii) 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.
                    ``(xviii) Any upgrades to these network services 
                that do not involve the generation or alteration of the 
                content of information.
            ``(C) The term `electronic publishing' also shall not 
        include--
                    ``(i) full motion video entertainment on demand; 
                and
                    ``(ii) video programming as defined in section 602 
                of the Communications Act of 1934.
            ``(6) 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.
            ``(7) The term `entity' means any organization, and 
        includes corporations, partnerships, sole proprietorships, 
        associations, and joint ventures.
            ``(8) The term `inbound telemarketing' means the marketing 
        of property, goods, or services by telephone to a customer or 
        potential customer who initiated the call.
            ``(9) 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.
            ``(10) 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.
            ``(11) The term `Bell operating company' means the 
        corporations subject to the Modification of Final Judgment and 
        listed in Appendix A thereof, or any entity owned or controlled 
        by such corporation, or any successor or assign of such 
        corporation, but does not include an electronic publishing 
        joint venture owned by such corporation or entity.''.

SEC. 204. PRIVACY OF CUSTOMER INFORMATION.

    (a) Privacy of Customer Proprietary Network Information.--
            (1) Amendment.--Title II of the Communications Act of 1934 
        is amended by adding at the end the following new section:

``SEC. 232. PRIVACY OF CUSTOMER PROPRIETARY NETWORK INFORMATION.

    ``(a) Duty To Provide Subscriber List Information.--Notwithstanding 
subsections (b), (c), and (d), a carrier that provides subscriber list 
information to any affiliated or unaffiliated service provider or 
person shall provide subscriber list information on a timely and 
unbundled basis, under nondiscriminatory and reasonable rates, terms, 
and conditions, to any person upon request.
    ``(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 
                communications services, (ii) in the provision of a 
                service necessary to or used in the provision of common 
                carrier communications services, including the 
                publishing of directories, or (iii) to continue to 
                provide a particular information service that the 
                carrier provided as of March 15, 1994, 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 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 subparagraph (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) Regulations.--The Commission shall prescribe regulations to 
carry out this section within 1 year after the date of its enactment.
    ``(f) Definition of Aggregate Information.--For purposes of this 
section, 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.''.
            (2) Conforming amendment.--Section 3 of the Communications 
        Act of 1934 (47 U.S.C. 153) is amended by adding at the end the 
        following:
    ``(gg) `Customer proprietary network information' means--
            ``(1) 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;
            ``(2) information contained in the bills pertaining to 
        telephone exchange service or telephone toll service received 
        by a customer of a carrier; and
            ``(3) 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 
        interexchange telephone 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.
    ``(hh) `Subscriber list information' means any information--
            ``(1) identifying the listed names of subscribers of a 
        carrier and such subscribers' telephone numbers, addresses, or 
        primary advertising classifications, or any combination of such 
        listed names, numbers, addresses, or classifications; and
            ``(2) that the carrier or an affiliate has published or 
        accepted for future publication.''.
    (b) Impact of Converging Communications Technologies on Consumer 
Privacy.--
            (1) Proceeding required.--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. 205. TELEMESSAGING SERVICES.

    Title II of the Communications Act of 1934 (47 U.S.C. 201 et seq.) 
is amended by adding at the end thereof the following new section:

``SEC. 233. TELEMESSAGING SERVICES.

    ``(a) Nondiscrimination.--A common carrier engaged in the provision 
of telemessaging services shall--
            ``(1) provide nonaffiliated entities, upon reasonable 
        request, with the network services it provides to its own 
        telemessaging operations, on nondiscriminatory terms and 
        conditions; and
            ``(2) not subsidize its telemessaging services with 
        revenues from telephone exchange service.
    ``(b) Expedited Consideration of Complaints.--The Commission shall 
establish procedures for the receipt and review of complaints 
concerning violations of subsection (a) or the regulations thereunder 
that result in material financial harm to a provider of telemessaging 
service. Such procedures shall ensure that the Commission will make a 
final determination with respect to any such complaint within 120 days 
after receipt of the complaint. If the complaint contains an 
appropriate showing that the alleged violation occurred, 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.
    ``(c) Definitions.--As used in this section, 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. 206. ENHANCED SERVICES SAFEGUARDS.

    Within 60 days after the date of the enactment of this Act, the 
Commission shall initiate a proceeding to reconsider its decision in 
the Report and Order In the Matter of Computer III Remand Proceedings, 
CC Docket No. 90-623, released December 20, 1993, relieving the Bell 
operating companies of the obligation to provide enhanced services 
through fully separate affiliates. Within 180 days after the date of 
the enactment of this Act, the Commission shall, to the extent it 
determines necessary or appropriate in the public interest, adopt 
regulations prescribing the structural or nonstructural safeguards, or 
both, with which local exchange carriers shall comply when providing 
enhanced services.

      TITLE III--TELECOMMUNICATIONS INFRASTRUCTURE AND COMPETITION

SEC. 301. POLICY; DEFINITIONS.

    (a) Policy.--Section 1 of the Communications Act of 1934 (47 U.S.C. 
151) is amended--
            (1) by inserting ``(a)'' after ``Section 1.''; and
            (2) by adding at the end thereof the following new 
        subsection:
    ``(b) The purposes described in subsection (a), as they relate to 
common carrier services, include--
            ``(1) to preserve and enhance universal telecommunications 
        service at just and reasonable rates;
            ``(2) to encourage the continued development and deployment 
        of advanced and reliable capabilities and services in 
        telecommunications networks;
            ``(3) to make available, so far as possible, to all the 
        people of the United States, regardless of location or 
        disability, a switched, broadband telecommunications network 
        capable of enabling users to originate and receive affordable 
        high quality voice, data, graphics, and video 
        telecommunications services;
            ``(4) to ensure that the costs of such networks and 
        services are allocated equitably among users and are 
        constrained by competition whenever possible;
            ``(5) to ensure a seamless and open nationwide 
        telecommunications network through joint planning, 
        coordination, and service arrangements between and among 
        carriers; and
            ``(6) to ensure that common carriers' networks function at 
        a high standard of quality in delivering advances in network 
        capabilities and services.''.
    (b) Definitions.--Section 3 of such 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:
    ``(ii) `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.
    ``(jj) `Equal access' means to afford, to any person seeking to 
provide an information service or a telecommunications service, 
reasonable and nondiscriminatory access on an unbundled basis--
            ``(1) to databases, signaling systems, 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 telephone exchange access 
        services;
            ``(2) that is at least equal in type, quality, and price to 
        the access which the carrier affords to itself or to any other 
        person; and
            ``(3) that is sufficient to ensure the full 
        interoperability of the equipment and facilities of the carrier 
        and of the person seeking such access.
    ``(kk) `Open platform service' means a switched, end-to-end digital 
telecommunications service that is subject to title II of this Act, and 
that (1) provides subscribers with sufficient network capability to 
access multimedia information services, (2) is widely available 
throughout a State, (3) is provided based on industry standards, and 
(4) is available to all subscribers on a single line basis upon 
reasonable request.
    ``(ll) `Local exchange carrier' means any person that is engaged in 
the provision of telephone exchange service or telephone exchange 
access service. 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.
    ``(mm) `Telephone exchange access service' means the offering of 
telephone exchange services or facilities for the purpose of the 
origination or termination of interexchange telecommunications services 
to or from an exchange area.
    ``(nn) `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.
    ``(oo) `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.''.

SEC. 302. EQUAL ACCESS AND NETWORK FUNCTIONALITY AND QUALITY.

    (a) Amendment.--Section 201 of the Communications Act of 1934 (47 
U.S.C. 201) is amended by adding at the end thereof the following new 
subsections:
    ``(c) Equal Access.--
            ``(1) Openness and accessibility obligations.--
                    ``(A) Common carrier obligations.--The duty of a 
                common carrier under subsection (a) to furnish 
                communications service includes the duty to 
                interconnect with the facilities and equipment of other 
                providers of telecommunications services and 
                information services in accordance with such 
                regulations as the Commission may prescribe as 
                necessary or desirable in the public interest with 
                respect to the openness and accessibility of common 
                carrier networks.
                    ``(B) Additional obligations of local exchange 
                carriers.--The duty under subsection (a) of a local 
                exchange carrier includes the duty--
                            ``(i) to provide, in accordance with the 
                        regulations prescribed under paragraph (2), 
                        equal access to and interconnection with the 
                        facilities of the carrier's networks to any 
                        other carrier or person providing 
                        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; and
                            ``(ii) to offer unbundled features, 
                        functions, and capabilities whenever 
                        technically feasible and economically 
                        reasonable, in accordance with requirements 
                        prescribed by the Commission pursuant to this 
                        subsection and other laws.
            ``(2) Equal access and interconnection regulations.--
                    ``(A) Regulations required.--Within 1 year after 
                the date of enactment of this subsection, the 
                Commission shall establish regulations that require 
                reasonable and nondiscriminatory equal access to and 
                interconnection with the facilities of a local exchange 
                carrier's network at any technically feasible and 
                economically reasonable point within the carrier's 
                network on reasonable terms and conditions, to any 
                other carrier or person offering telecommunications 
                services requesting such access. The Commission shall 
                establish such regulations after consultation with the 
                Joint Board established pursuant to subparagraph (D). 
                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.
                    ``(B) Compensation.--Within 1 year after the date 
                of enactment of this subsection, the Commission shall 
                establish regulations requiring just and reasonable 
                compensation to the exchange carrier providing such 
                equal access and interconnection pursuant to 
                subparagraph (A). Such regulations shall include 
                regulations to require the carrier, to the extent it 
                provides a telecommunications service or an information 
                service, to impute such access and interconnection 
                charges to itself as the Commission determines are 
                reasonable and nondiscriminatory.
                    ``(C) Exemptions and modifications.--
                Notwithstanding paragraph (1) or subparagraph (A) of 
                this paragraph, a rural telephone company shall not be 
                required to provide equal access and interconnection to 
                another local exchange carrier. The Commission shall 
                not apply the requirements of this paragraph or impose 
                requirements pursuant to paragraph (1)(B)(ii) to any 
                rural telephone company, except to the extent that the 
                Commission determines that compliance with such 
                requirements would not be unduly economically 
                burdensome, unfairly competitive, technologically 
                infeasible, or otherwise not in the public interest. 
                The Commission may modify the requirements of this 
                paragraph for any other local exchange carrier 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. 
                The Commission may include, in the regulations 
                prescribed pursuant to paragraph (1)(B), modified 
                requirements for any feature, function, or capability 
                that the Commission determines is generally available 
                to competing providers of telecommunications services 
                or information services at the same or better price, 
                terms, and conditions.
                    ``(D) Joint board on equal access and 
                interconnection standards.--Within 30 days after the 
                date of enactment of this subsection, the Commission 
                shall convene a Federal-State Joint Board under section 
                410(c) for the purpose of preparing a recommended 
                decision for the Commission with respect to the equal 
                access and interconnection regulations required by this 
                paragraph.
                    ``(E) Enforcement of existing regulations.--Nothing 
                in this section shall be construed to prohibit the 
                Commission from enforcing regulations prescribed prior 
                to the date of enactment of this subsection in 
                fulfilling the requirements of this subsection, to the 
                extent that such regulations are consistent with the 
                provisions of this subsection.
                    ``(F) Definition of rural telephone company.--For 
                the purpose of subparagraph (C) of this paragraph, the 
                term `rural telephone company' means a local exchange 
                carrier operating entity to the extent that such 
                entity--
                            ``(i) 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;
                            ``(ii) provides telephone exchange service, 
                        including telephone exchange access service, to 
                        fewer than 50,000 access lines; or
                            ``(iii) provides telephone exchange service 
                        to any local exchange carrier study area with 
                        fewer than 100,000 access lines.
            ``(3) Preemption.--
                    ``(A) Limitation.--Notwithstanding section 2(b), no 
                State or local government may, after one year after the 
                date of enactment of this subsection--
                            ``(i) effectively prohibit any person or 
                        carrier from providing any interstate or 
                        intrastate telecommunications service or 
                        information service, or impose any restriction 
                        or condition on entry into the business of 
                        providing any such service;
                            ``(ii) prohibit any carrier or other person 
                        providing interstate or intrastate 
                        telecommunications services or information 
                        services from exercising the access and 
                        interconnection rights provided under this 
                        subsection; or
                            ``(iii) impose any limitation on the 
                        exercise of such rights.
                    ``(B) Permitted terms and conditions.--Subparagraph 
                (A) shall not be construed to prohibit a State from 
                imposing a term or condition on providers of 
                telecommunications services or information services if 
                such term or condition does not effectively prohibit 
                any person or carrier from providing any interstate or 
                intrastate telecommunications service or information 
                service and is necessary and appropriate to--
                            ``(i) protect public safety and welfare;
                            ``(ii) ensure the continued quality of 
                        intrastate telecommunications;
                            ``(iii) ensure that rates for intrastate 
                        telecommunications services are just and 
                        reasonable; or
                            ``(iv) ensure that the provider's business 
                        practices are consistent with consumer 
                        protection laws and regulations.
                    ``(C) Normal construction permits permitted.--
                Subparagraph (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 (i) such permit is 
                required without regard to the nature of the business, 
                and (ii) 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 paragraph.
                    ``(E) Parity of franchise and other charges.--
                Notwithstanding section 2(b), no local government may, 
                after 1 year after the date of enactment of this 
                subsection, 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.
            ``(4) Tariffs.--
                    ``(A) Generally.--Within 18 months after the date 
                of enactment of this subsection, a local exchange 
                carrier shall prepare and file tariffs in accordance 
                with this Act with respect to the services or elements 
                offered to comply with the equal access and 
                interconnection regulations required under this 
                subsection. The costs that a carrier incurs in 
                providing such services or elements shall be borne 
                solely by the users of the features and functions 
                comprising such services or elements or of the feature 
                or function that uses or includes such services or 
                elements. The Commission shall review such tariffs to 
                ensure that--
                            ``(i) the charges for such services or 
                        elements are cost-based; and
                            ``(ii) the terms and conditions contained 
                        in such tariffs unbundle any separable 
                        services, elements, features, or functions in 
                        accordance with paragraph (1)(B)(ii) and any 
                        regulations thereunder.
                    ``(B) Supporting information.--A local exchange 
                carrier shall submit supporting information with its 
                tariffs for equal access and interconnection that is 
                sufficient to enable the Commission and the public to 
                determine the relationship between the proposed charges 
                and the costs of providing such services or elements. 
                The submission of such information shall be pursuant to 
                regulations adopted by the Commission to ensure that 
                similarly situated carriers provide such information in 
                a uniform fashion.
            ``(5) Pricing flexibility.--
                    ``(A) Establishment of criteria.--Within 270 days 
                after the date of enactment of this subsection, the 
                Commission, by regulation, shall establish criteria for 
                determining--
                            ``(i) 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;
                            ``(ii) whether such competition will 
                        effectively prevent rates for such service that 
                        are unjust or unreasonable or that are unjustly 
                        or unreasonably discriminatory; and
                            ``(iii) appropriate flexible pricing 
                        procedures that can be used in lieu of the 
                        filing of tariff schedules, or in lieu of other 
                        pricing procedures established by the 
                        Commission, and that are consistent with the 
                        protection of subscribers and the public 
                        interest, convenience, and necessity.
                    ``(B) 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--
                            ``(i) render determinations in accordance 
                        with the criteria established under clauses (i) 
                        and (ii) of subparagraph (A) concerning the 
                        services or providers that are the subject of 
                        such application; and
                            ``(ii) upon a proper showing, establish 
                        appropriate flexible pricing procedures 
                        consistent with the criteria established under 
                        clause (iii) of such subparagraph.
                The Commission shall approve or reject any such 
                application within 180 days after the date of its 
                submission.
                    ``(C) Exception.--In the case of commercial mobile 
                services, the provisions of section 332(c)(1) shall 
                apply in lieu of the provisions of this paragraph.
            ``(6) Joint board to preserve universal service.--
                    ``(A) Establishment; functions.--Within 30 days 
                after the date of enactment of this subsection, 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. As a part of 
                preparing such recommendations, the Joint Board shall 
                survey providers and users of telephone exchange 
                service and consult with State commissions in order to 
                determine the pecuniary difference between the cost of 
                providing universal service and the prices determined 
                to be appropriate for such service.
                    ``(B) Principles.--The Joint Board shall base 
                policies for the preservation of universal service on 
                the following principles:
                            ``(i) 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.
                            ``(ii) Such plan should define 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, 
                        including open platform service, for all 
                        Americans by including access to advanced 
                        telecommunications services and capabilities in 
                        the definition of universal service while 
                        maintaining just and reasonable rates. Such 
                        plan should seek to promote reasonably 
                        comparable services for the general public in 
                        urban and rural areas.
                            ``(iii) Such plan should establish specific 
                        and predictable mechanisms to provide adequate 
                        and sustainable support for universal service.
                            ``(iv) All providers of telecommunications 
                        services should make an equitable and 
                        nondiscriminatory contribution to preservation 
                        of universal service.
                            ``(v) Such plan should permit residential 
                        subscribers to continue to receive only basic 
                        voice-grade local telephone service, for a 
                        period of not more than 5 years, equivalent to 
                        the service generally available to residential 
                        subscribers on the date of enactment of this 
                        subsection, 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. If the plan would result in any 
                        increases in the rates for such services for 
                        residential subscribers that are not 
                        attributable to changes in consumer prices 
                        generally, such plan should include a 
                        requirement that a rate increase shall be 
                        permitted in any proceeding commenced after 
                        March 16, 1994, only upon a showing that such 
                        increase is necessary to prevent competitive 
                        disadvantages for one or more service providers 
                        and is in the public interest. Such plan should 
                        provide that any such increase in rates shall 
                        be minimized to the greatest extent practical 
                        and shall be implemented over a time period of 
                        not less than 5 years after the date of 
                        enactment of this subsection.
                            ``(vi) To the extent that a common carrier 
                        establishes advanced telecommunications 
                        services, such plan should include provisions 
                        to promote public access to advanced 
                        telecommunications services, other than a video 
                        platform, at a preferential rate that will 
                        recover only the added costs of providing such 
                        service, for public service institutions, both 
                        as producers and users of services, as soon as 
                        technically feasible and economically 
                        reasonable. Such plan shall provide that such 
                        preferential rates should only be made 
                        available to such institutions for the purpose 
                        of providing noncommercial information services 
                        or telecommunications services to the general 
                        public and not for the internal 
                        telecommunications needs or commercial use of 
                        such institutions.
                            ``(vii) Such plan should determine and 
                        establish mechanisms to ensure that rates 
                        charged by a provider of interexchange 
                        telecommunications services for services in 
                        rural areas are maintained at levels no higher 
                        than those charged by the same carrier to 
                        subscribers in urban areas.
                            ``(viii) Such plan should, notwithstanding 
                        any other provision of law, require common 
                        carriers serving more than 1,800,000 access 
                        lines in the aggregate nationwide, to be 
                        subject to alternative or price regulation, and 
                        not cost-based rate-of-return regulation, for 
                        services that are subject to the jurisdiction 
                        of the Commission or the States, as applicable, 
                        when such carrier's network has been made open 
                        to competition as a result of its 
                        implementation of the equal access, 
                        interconnection, and accessibility provisions 
                        of this subsection.
                            ``(ix) 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; access to 
                advanced services.--In defining the nature and extent 
                of the services encompassed within carriers' universal 
                service obligations under subparagraph (B)(ii), the 
                Joint Board shall consider the extent to which--
                            ``(i) a telecommunications service has, 
                        through the operation of market choices by 
                        customers, been subscribed to by a substantial 
                        majority of residential customers;
                            ``(ii) denial of access to such service to 
                        any individual would unfairly deny that 
                        individual educational and economic 
                        opportunities;
                            ``(iii) such service has been deployed in 
                        the public switched telecommunications network; 
                        and
                            ``(iv) 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 subparagraph (B).
                    ``(D) Report; commission response.--The Joint Board 
                convened pursuant to subparagraph (A) shall report its 
                recommendations within 270 days after the date of 
                enactment of this subsection. The Commission shall 
                complete any proceeding to act upon such 
                recommendations within one year after such date of 
                enactment. A State may adopt regulations to implement 
                the Joint Board's recommendations, except that such 
                regulations shall not, after 18 months after such date 
                of enactment, be inconsistent with regulations 
                prescribed by the Commission to implement such 
                recommendations.
                    ``(E) Definition of Public Service Institution.--
                For the purposes of this paragraph, the term `public 
                service institution' means--
                            ``(i) an agency or instrumentality of 
                        Federal, State, or local government;
                            ``(ii) a nonprofit educational institution, 
                        health care institution, public library, public 
                        museum, or public broadcasting station or 
                        entity;
                            ``(iii) a charitable organization that (I) 
                        is exempt from Federal income taxes under 
                        section 501(c)(3) of the Internal Revenue Code 
                        of 1986; (II) provides public services in 
                        conjunction with an agency, instrumentality, 
                        institution, or entity described in clause (i) 
                        or (ii); and (III) provides information that is 
                        useful to the public and that is related to the 
                        work of such an agency, instrumentality, 
                        institution, or entity.
            ``(7) Cross subsidies prohibition.--The Commission shall--
                    ``(A) prescribe regulations to prohibit a common 
                carrier from engaging in any practice that results in 
                the inclusion in rates for telephone exchange service 
                or telephone exchange access service of any operating 
                expenses, costs, depreciation charges, capital 
                investments, or other expenses directly associated with 
                the provision of competing telecommunications services, 
                information services, or video programming services by 
                the common carrier or affiliate; and
                    ``(B) ensure such competing telecommunications 
                services, information services or video programming 
                services bear a reasonable share of the joint and 
                common costs of facilities used to provide telephone 
                exchange service or telephone exchange access service 
                and competing telecommunications services, information 
                services, or video programming services.
            ``(8) Resale.--The resale or sharing of telephone exchange 
        service (or unbundled services, elements, features, or 
        functions of telephone exchange service) in conjunction with 
        the furnishing of a telecommunications service or an 
        information service shall not be prohibited nor subject to 
        unreasonable conditions by the carrier, the Commission, or any 
        State.
            ``(9) Telecommunications number portability.--The 
        Commission shall prescribe regulations to ensure that--
                    ``(A) telecommunications number portability shall 
                be available, upon request, as soon as technically 
                feasible and economically reasonable; and
                    ``(B) an impartial entity shall administer 
                telecommunications numbering and 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. For the purpose of this paragraph, the term 
        `telecommunications number portability' means the ability of 
        users of telecommunications services to retain existing 
        telecommunications numbers without impairment of quality, 
        reliability, or convenience when switching from one provider of 
        telecommunications services to another.
            ``(10) Review of standards and requirements.--At least once 
        every three years, the Commission shall--
                    ``(A) conduct a proceeding in which interested 
                parties shall have an opportunity to comment on whether 
                the standards and requirements established by or under 
                this subsection have opened the networks of carriers to 
                reasonable and nondiscriminatory access by providers of 
                telecommunications services and information services;
                    ``(B) review the definition of, and the adequacy of 
                support for, universal service, and evaluate the extent 
                to which universal service has been protected and 
                access to advanced services has been facilitated 
                pursuant to this subsection and the plans and 
                regulations thereunder; and
                    ``(C) submit to the Congress a report containing a 
                statement of the Commission's findings pursuant to such 
                proceeding, and including an identification of any 
                defects or delays observed in attaining the objectives 
                of this subsection and a plan for correcting such 
                defects and delays.
            ``(11) Study of rural phone service.--Within 1 year after 
        the date of enactment of this subsection, the Commission shall 
        initiate an inquiry to examine the effects of competition in 
        the provision of telephone exchange access service and 
        telephone exchange service on the availability and rates for 
        telephone exchange access service and telephone exchange 
        service furnished by rural exchange carriers.
    ``(d) Network Functionality and Quality.--
            ``(1) Functionality and reliability obligations.--The duty 
        of a common carrier under subsection (a) to furnish 
        communications service includes the duty to furnish that 
        service in accordance with such regulations of functionality 
        and reliability as the Commission may prescribe as necessary or 
        desirable in the public interest pursuant to this subsection.
            ``(2) Coordinated planning for interoperability and other 
        purposes.--The Commission shall establish--
                    ``(A) procedures for the conduct of coordinated 
                network planning by common carriers and other providers 
                of telecommunications services or information services, 
                subject to Commission supervision, for the effective 
                and efficient interconnection and interoperability of 
                public and private networks; and
                    ``(B) procedures for Commission oversight of the 
                development by appropriate standards-setting 
                organizations of--
                            ``(i) standards for the interconnection and 
                        interoperability of such networks;
                            ``(ii) standards that promote access to 
                        network capabilities and services by 
                        individuals with disabilities; and
                            ``(iii) standards that promote access to 
                        information services by subscribers to 
                        telephone exchange service furnished by a rural 
                        telephone company (as such term is defined in 
                        subsection (c)(2)(F)).
            ``(3) Open platform service.--
                    ``(A) Study.--Within 90 days after the date of 
                enactment of this subsection, the Commission shall 
                initiate an inquiry to consider the regulations and 
                policies necessary to make open platform service 
                available to subscribers at reasonable rates based on 
                the reasonably identifiable costs of providing such 
                service, utilizing existing facilities or new 
                facilities with improved capability or efficiency. The 
                inquiry required under this paragraph shall be 
                completed within 180 days after the date of its 
                initiation.
                    ``(B) Regulations.--On the basis of the results of 
                the inquiry required under subparagraph (A), the 
                Commission shall prescribe and make effective such 
                regulations as are necessary to implement the inquiry's 
                conclusions. Such regulations may require a local 
                exchange carrier to file, in the appropriate 
                jurisdiction, tariffs for the origination and 
                termination of open platform service as soon as such 
                service is economically and technically feasible. In 
                establishing any such regulations, the Commission shall 
                take into account the proximate and long-term 
                deployment plans of local exchange carriers.
                    ``(C) Temporary waiver.--The Commission shall also 
                establish a procedure to waive temporarily specific 
                provisions of the regulations prescribed under this 
                paragraph if a local exchange carrier demonstrates that 
                compliance with such requirement--
                            ``(i) would be economically or technically 
                        infeasible, or
                            ``(ii) would materially delay the 
                        deployment of new facilities with improved 
                        capabilities or efficiencies that will be used 
                        to meet the requirements of open platform 
                        services.
                Such petitions shall be decided by the Commission 
                within 180 days after the date of its submission.
                    ``(D) Cost allocation.--Any such regulations shall 
                provide for the allocation of all costs of facilities 
                jointly used to provide open platform service and 
                telephone exchange service or telephone exchange access 
                services.
                    ``(E) State authority.--Nothing in this paragraph 
                shall be construed to limit a State's authority to 
                continue to regulate any services subject to State 
                jurisdiction under this Act.
                    ``(F) Commission Inquiry.--Within 2 years after the 
                date of enactment of this paragraph, the Commission 
                shall conduct an inquiry concerning the deployment of 
                open platform service and other advanced 
                telecommunications network capabilities, including 
                switched, broadband telecommunications facilities. In 
                conducting such inquiry, the Commission shall seek to 
                develop information concerning--
                            ``(i) the availability of such network 
                        capabilities to all Americans;
                            ``(ii) the availability of such network 
                        capabilities to different regions, States, and 
                        classes of subscribers;
                            ``(iii) the availability of advanced 
                        network technology needed to deploy such 
                        network capabilities; and
                            ``(iv) likely deployment schedules for such 
                        network capabilities by region, State, and 
                        classes of subscribers.
                The Commission shall submit a report to the Congress on 
                the results of such inquiry within 270 days after the 
                commencement of such inquiry, and annually thereafter 
                for the succeeding 5 years.
            ``(4) Accessibility regulations.--
                    ``(A) Regulations.--Within 1 year after the date of 
                enactment of this section, the Commission shall 
                prescribe such regulations as are necessary to ensure 
                that advances in network services deployed by local 
                exchange carriers shall be accessible and usable by 
                individuals with disabilities, including individuals 
                with functional limitations of hearing, vision, 
                movement, manipulation, speech, and interpretation of 
                information, unless the cost of making the services 
                accessible and usable would result in an undue burden 
                or adverse competitive impact. Such regulations shall 
                seek to 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.
                    ``(B) Compatibility.--Such regulations shall 
                require that whenever an undue burden or adverse 
                competitive impact would result from the requirements 
                in subparagraph (A), 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.
                    ``(C) Undue burden.--The term `undue burden' means 
                significant difficulty or expense. In determining 
                whether the activity necessary to comply with the 
                requirements of this paragraph would result in an undue 
                burden, the factors to be considered include the 
                following:
                            ``(i) The nature and cost of the activity.
                            ``(ii) The impact on the operation of the 
                        facility involved in the deployment of the 
                        network service.
                            ``(iii) The financial resources of the 
                        local exchange carrier.
                            ``(iv) The type of operations of the local 
                        exchange carrier.
                    ``(D) Adverse competitive impact.--In determining 
                whether the activity necessary to comply with the 
                requirements of this paragraph would result in adverse 
                competitive impact, the following factors shall be 
                considered:
                            ``(i) 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.
                            ``(ii) 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.
                    ``(E) Review of standards and requirements.--At 
                least once every 3 years, the Commission shall conduct 
                a proceeding in which interested parties shall have an 
                opportunity to comment on whether the regulations 
                established under this paragraph have ensured that 
                advances in network services by providers of 
                telecommunications services and information services 
                are accessible and usable by individuals with 
                disabilities.
                    ``(F) Effective date.--The regulations required by 
                this paragraph shall become effective 18 months after 
                the date of enactment of this subsection.
            ``(5) Quality rules.--
                    ``(A) Measures or benchmarks required.--The 
                Commission shall designate or otherwise establish 
                network reliability and quality performance measures or 
                benchmarks for common carriers for the purpose of 
                ensuring the continued maintenance and evolution of 
                common carrier facilities and service. Not later than 
                180 days after the date of enactment of this 
                subsection, the Commission shall initiate a rulemaking 
                proceeding to establish such performance measures or 
                benchmarks.
                    ``(B) Contents of regulations.--Such regulations 
                shall include--
                            ``(i) quantitative network reliability and 
                        service quality performance measures or 
                        benchmarks;
                            ``(ii) procedures to monitor and evaluate 
                        common carrier efforts to increase network 
                        reliability and service quality; and
                            ``(iii) procedures to resolve network 
                        reliability and service quality complaints.
                    ``(C) Coordination and consultation.--Throughout 
                the process of developing network reliability and 
                service quality performance measures or benchmarks, as 
                required by subparagraphs (A) and (B), the Commission 
                shall coordinate and consult with service and equipment 
                providers and users and State regulatory bodies to 
                ensure their concerns and interests are given full 
                consideration in such process.
            ``(6) Rural exemption.--The Commission may modify, or grant 
        exemptions from, the requirements of this subsection in the 
        case of a common carrier providing telecommunications services 
        in a rural area.
    ``(e) Infrastructure Sharing.--
            ``(1) Regulations required.--Within one year after the date 
        of enactment of this subsection, the Commission shall prescribe 
        regulations that require local exchange carriers to make 
        available to qualifying carriers such public switched 
        telecommunications network technology and information and 
        telecommunications facilities and functions as may be requested 
        by such a qualifying carrier for the purpose of enabling that 
        carrier to provide telecommunications services, or to provide 
        access to information services, in the geographic area in which 
        that carrier has requested and obtained designation as the 
        qualifying carrier.
            ``(2) Qualifying carriers.--For purposes of paragraph (1), 
        the term `qualifying carrier' means a local exchange carrier 
        that--
                    ``(A) lacks economies of scale or scope, as 
                determined in accordance with regulations prescribed by 
                the Commission pursuant to this subsection; and
                    ``(B) is a common carrier which offers telephone 
                exchange service, telephone exchange access service, 
                and any other service that is within the definition of 
                universal service, to all customers without preference 
                throughout one or more exchange areas in existence on 
                the date of enactment of this subsection.
            ``(3) Terms and conditions of regulations.--The regulations 
        prescribed by the Commission pursuant to this subsection--
                    ``(A) shall not require any local exchange carrier 
                to take any action that is economically unreasonable or 
                that is contrary to the public interest or to provide 
                telecommunications facilities and functions to any 
                qualifying carrier that is not reasonably proximate to 
                such local exchange carrier;
                    ``(B) shall permit, but shall not require, the 
                joint ownership or operation of public switched 
                telecommunications network facilities, functions, and 
                services by or among the local exchange carrier and the 
                qualifying carrier;
                    ``(C) shall ensure that a local exchange carrier 
                shall not be treated by the Commission or any State 
                commission as a common carrier for hire, or as offering 
                common carrier services, with respect to any 
                technology, information, facilities, or functions made 
                available to a qualifying carrier pursuant to this 
                subsection;
                    ``(D) shall ensure that local exchange carriers 
                make such technology, information, facilities, or 
                functions available to qualifying carriers on fair and 
                reasonable terms and conditions that permit such 
                qualifying carriers to fully benefit from the economies 
                of scale and scope of the providing local exchange 
                carrier, as determined in accordance with guidelines 
                prescribed by the Commission in such regulations;
                    ``(E) shall establish conditions that promote 
                cooperation between local exchange carriers and 
                qualifying carriers; and
                    ``(F) shall not require any local exchange carrier 
                to engage in any infrastructure sharing agreement for 
                any geographic area where such carrier is required to 
                provide services subject to State regulation.
            ``(4) Information concerning deployment of new services and 
        equipment.--Any local exchange carrier that has entered into an 
        agreement with a qualifying carrier under this subsection shall 
        provide to each party to such agreement timely information on 
        the planned deployment of telecommunications services and 
        equipment, including software integral to such 
        telecommunications services and equipment, including 
        upgrades.''.
    (b) Preemption of Franchising Authority Regulation of 
Telecommunications Services.--
            (1) Telecommunications services.--Section 621(b) of the 
        Communications Act of 1934 (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.''.
            (2) Franchise fees.--Section 622(b) of the Communications 
        Act of 1934 (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.
    (c) Conforming Amendment.--Section 2(b) of the Communications Act 
of 1934 (47 U.S.C. 152(b)) is amended by inserting ``201 (c) and (d),'' 
after ``Except as provided in sections''.

SEC. 303. TELECOMMUNICATIONS SERVICES FOR EDUCATIONAL INSTITUTIONS, 
              HEALTH CARE INSTITUTIONS, AND LIBRARIES.

    Title II of the Communications Act of 1934 is amended by adding at 
the end the following new section:

``SEC. 234. TELECOMMUNICATIONS SERVICES FOR EDUCATIONAL INSTITUTIONS, 
              HEALTH CARE INSTITUTIONS, AND LIBRARIES.

    ``(a) Promotion of Delivery of Advanced Services.--In fulfillment 
of its obligation under section 1 to make available to all the people 
of the United States a rapid, efficient, nationwide, and worldwide 
communications service, the Commission shall promote the provision of 
advanced telecommunications services by wire, wireless, cable, and 
satellite technologies to--
            ``(1) educational institutions;
            ``(2) health care institutions; and
            ``(3) public libraries.
    ``(b) Annual Survey Required.--The National Telecommunications and 
Information Administration shall conduct a nationwide survey of the 
availability of advanced telecommunications services to educational 
institutions, health care institutions, and public libraries. The 
Administration shall complete the survey and release publicly the 
results of such survey not later than one year after the date of 
enactment of this section. The results of such survey shall include--
            ``(1) the number of educational institutions and 
        classrooms, health care institutions, and public libraries;
            ``(2) the number of educational institutions and 
        classrooms, health care institutions, and public libraries that 
        have access to advanced telecommunications services; and
            ``(3) the nature of the telecommunications facilities 
        through which such educational institutions, health care 
        institutions, and public libraries obtain access to advanced 
        telecommunications services.
The National Telecommunications and Information Administration shall 
update annually the survey required by this section. The survey 
required under this subsection shall be prepared in consultation with 
the Department of Education, Department of Health and Human Services, 
and such other Federal, State, and local departments, agencies, and 
authorities that may maintain or have access to information concerning 
the availability of advanced telecommunications services to educational 
institutions, health care institutions, and libraries.
    ``(c) Rulemaking Required.--Within one year after the date of 
enactment of this section, the Commission shall issue a notice of 
proposed rulemaking for the purpose of adopting regulations that--
            ``(1) enhance, to the extent technically feasible and 
        economically reasonable, the availability of advanced 
        telecommunications services to all educational institutions and 
        classrooms, health care institutions, and public libraries by 
        the year 2000;
            ``(2) ensure that appropriate functional requirements or 
        performance standards, or both, including interoperability 
        standards, are established for telecommunications systems or 
        facilities that interconnect educational institutions, health 
        care institutions, and public libraries with the public 
        switched telecommunications network;
            ``(3) define the circumstances under which a carrier may be 
        required to interconnect its telecommunications network with 
        educational institutions, health care institutions, and public 
        libraries;
            ``(4) provide for either the establishment of preferential 
        rates for telecommunications services, including advanced 
        services, that are provided to educational institutions, health 
        care institutions, and public libraries, or the use of 
        alternative mechanisms to enhance the availability of advanced 
        services to these institutions; and
            ``(5) address such other related matters as the Commission 
        may determine.
    ``(d) Feasibility Study.--The Commission shall assess the 
feasibility of including postsecondary educational institutions in any 
regulations promulgated under this section.
    ``(e) Definitions.--For purposes of this section--
            ``(1) the term `educational institutions' means elementary 
        and secondary educational institutions; and
            ``(2) the term `health care institutions' means not-for-
        profit health care institutions, including hospitals and 
        clinics.''.

SEC. 304. DISCRIMINATORY INTERCONNECTION.

    Section 208 of the Communications Act of 1934 is amended by adding 
at the end thereof the following new subsection:
    ``(c) Expedited Review of Certain Complaints.--The Commission shall 
issue a final order with respect to any complaint arising from alleged 
violations of the regulations and orders prescribed pursuant to section 
201(c) within 180 days after the date such complaint is filed.''.

SEC. 305. EXPEDITED LICENSING OF NEW TECHNOLOGIES AND SERVICES.

    Section 7 of the Communications Act of 1934 (47 U.S.C. 157) is 
amended by adding at the end thereof the following new subsection:
    ``(c) Licensing of New Technologies.--
            ``(1) Expedited rulemaking.--Within 24 months after making 
        a determination under subsection (b) that a technology or 
        service related to the furnishing of telecommunications 
        services is in the public interest, the Commission shall, with 
        respect to any such service requiring a license or other 
        authorization from the Commission, adopt and make effective 
        regulations for--
                    ``(A) the provision of such technology or service; 
                and
                    ``(B) the filing of applications for the licenses 
                or authorizations necessary to offer such technology or 
                service to the public, and shall act on any such 
                application within 24 months after it is filed.
            ``(2) Review of applications.--Any application filed by a 
        carrier under this subsection for the construction or extension 
        of a line shall also be subject to section 214 and to any 
        necessary approval by the appropriate State commissions.''.

SEC. 306. NEW OR EXTENDED LINES.

    Section 214 of the Communications Act of 1934 (47 U.S.C. 214) is 
amended by adding at the end the following new subsection:
    ``(e) Any application filed under this section for authority to 
construct or extend a line shall address the means by which such 
construction or extension will meet the network access needs of 
individuals with disabilities.''.

SEC. 307. POLE ATTACHMENTS.

    Section 224 of the Communications Act of 1934 (47 U.S.C. 244) is 
amended--
            (1) in subsection (a)(4), by inserting after ``system'' the 
        following: ``or a provider of 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 Antitrust and Communications Reform Act of 1994, 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(oo) 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 to 
        all attachments to the pole, duct, conduit, or right-of-way 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 attached 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 subparagraphs (A), (B), and (C) of paragraph (1) shall not apply to 
a pole attachment used by a cable television system solely to provide 
cable service as defined in section 602(6) of this Act. The rates for 
pole attachments used for such purposes 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, conduit, or right-of-way 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) For all providers of telecommunications services except 
members of the exchange carrier association established in 47 C.F.R. 
69.601 as of December 31, 1993, upon enactment of this paragraph and 
until the Commission promulgates its final regulations pursuant to 
subparagraphs (A), (B), and (C) of paragraph (1), the rate formula 
contained in any joint use pole attachment agreement between the 
electric utility and the largest local exchange carrier having such a 
joint use agreement in the utility's service area, in effect on January 
1, 1994, shall also apply to the pole attachments in the utility's 
service area, but if no such joint use agreement containing a rate 
formula exists, then the pole attachment rate shall be the rate 
applicable under paragraph (2) to cable television systems which solely 
provide cable service as defined in section 602(6) of this Act. 
Disputes concerning the applicability of a joint use agreement shall be 
resolved by the Commission or the States, as appropriate.''.

SEC. 308. CIVIC PARTICIPATION.

    (a) Policies To Enhance Civic Dialogue.--The Commission, in 
consultation with the National Telecommunications and Information 
Administration, shall study policies that will enhance civic 
participation through the national information infrastructure. The 
study shall request and record public comments on Federal policies that 
would enhance and expand democratic dialogue through national computer 
and data networks. The study shall examine, but not be limited to, the 
social benefits of flat rate pricing for access to computer and data 
networks, the policies which will determine how access to computer 
networks will be priced, including the access needs of individuals with 
disabilities, and the appropriate role of common carriers in the 
development of national computer and data networks. The Commission 
shall receive comments in both paper and electronic formats and shall 
establish an online discussion group accessed through the national 
information infrastructure to encourage citizen participation in the 
study.
    (b) Participation in Regulatory Affairs.--The Commission, in 
consultation with the Office of Consumer Affairs, shall conduct a study 
of how to encourage citizen participation in regulatory issues and, 
within 120 days from the date of enactment of this Act, report to 
Congress on the results of the study.

SEC. 309. COMPETITION BY SMALL BUSINESS AND MINORITY-OWNED BUSINESS 
              CONCERNS.

    Title II of the Communications Act of 1934 is amended by adding at 
the end the following new section:

``SEC. 235. POLICY AND RULEMAKING TO PROMOTE DIVERSITY OF OWNERSHIP.

    ``(a) Findings.--The Congress finds that--
            ``(1) in furtherance of the purposes of this Act to make 
        available to all people of the United States a rapid and 
        efficient communications service, and for the purposes of 
        promoting a diversity of opinion in the broadcasting service, 
        the Commission has established regulations and policies to 
        promote ownership of broadcasting services by members of 
        minority groups;
            ``(2) these regulations have served to promote more 
        vigorous communications on public issues, to broaden the number 
        and variety of stakeholders in the American economy, and to 
        promote innovation by and creativity by Americans of different 
        cultures and national origins, and thereby have served to build 
        a more cohesive and productive society;
            ``(3) while the Commission has adopted regulations to 
        promote participation by businesses owned by members of 
        minority groups and women, and small businesses, in auctions 
        for certain spectrum-based services which promote diversity of 
        ownership in those services, no other regulations have been 
        established to promote such diversity of participation in the 
        provision of common carrier services or in the provision of 
        other telecommunications and information services;
            ``(4) the goals of competitively priced services, service 
        innovation, employment, and diversity of viewpoint can be 
        advanced by promoting marketplace penetration by small business 
        concerns, business concerns owned by women and members of 
        minority groups, and nonprofit entities; and
            ``(5) it should be the policy of the Commission to promote 
        whenever possible diversity of ownership in the provision of 
        information services and telecommunication services by such 
        concerns and entities.
    ``(b) Rulemaking Required.--Within 1 year after the date of 
enactment of this section, the Commission, in consultation with the 
National Telecommunications and Information Administration, shall 
initiate a rulemaking proceeding for the purpose of lowering market 
entry barriers for small business, business concerns owned by women and 
members of minority groups, and nonprofit entities that are seeking to 
provide telecommunication services and information services. The 
proceeding shall seek to provide remedies for, among other things, lack 
of access to capital and technical and marketing expertise on the part 
of such concerns and entities. Consistent with the broad policy and 
finding set forth in subsection (a), the Commission shall adopt such 
regulations and make such recommendations to Congress as the Commission 
deems appropriate. Not later than 2 years after the date of enactment 
of this section, the Commission shall complete the proceeding required 
by this subsection.''.

                TITLE IV--COMMUNICATIONS COMPETITIVENESS

SEC. 401. CABLE SERVICE PROVIDED BY TELEPHONE COMPANIES.

    (a) General Requirement.--
            (1) Amendment.--Section 613(b) of the Communications Act of 
        1934 (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 owned, operated, or controlled by, or under common 
control with, the common carrier, 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) Notwithstanding paragraphs (1) and (2), an affiliate that--
            ``(A) is, consistent with section 656, 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, and
            ``(B) provides video programming to subscribers in the 
        telephone service area of such carrier, but
            ``(C) does not utilize the local exchange facilities or 
        services of any affiliated common carrier in distributing such 
        programming,
shall not be subject to the requirements of part V, but shall be 
subject to the requirements of this part and parts III and IV.''.
            (2) Conforming amendment.--Section 602 of the 
        Communications Act of 1934 (47 U.S.C. 531) is amended--
                    (A) in paragraph (6)(B), by inserting ``or use'' 
                after ``the selection'';
                    (B) by redesignating paragraphs (18) and (19) as 
                paragraphs (19) and (20) respectively; and
                    (C) 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 November 20, 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 Communications Act of 1934 (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.

``SEC. 652. SEPARATE VIDEO PROGRAMMING AFFILIATE.

    ``(a) In General.--Except as provided in subsection (d) of this 
section, 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, and subject to regulations of the 
        Commission to ensure that the carrier's method of providing 
        telemarketing or referral and its price structure do not 
        competitively disadvantage any video programmer or cable 
        operator, regardless of size, including those which do not use 
        the carrier's telemarketing services.
            ``(3) Joint telemarketing.--Notwithstanding paragraph 
        (1)(B), a common carrier may petition the Commission for 
        permission to market video programming directly, upon a showing 
        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 petition. Any such petition shall be 
        granted or denied within 180 days after the date of its 
        submission.
    ``(c) Business Transactions With Carrier Subject to Regulation.--
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 pursuant to regulation prescribed by the Commission, shall be 
on a fully compensatory and auditable basis, shall be without cost to 
the telephone service ratepayers of the carrier, shall be filed with 
the Commission, 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 659.--In the case 
        of a common carrier that obtains a waiver under this 
        subsection, any requirement that section 659 applies to a video 
        programming affiliate shall instead apply to such carrier.

``SEC. 653. ESTABLISHMENT OF VIDEO PLATFORM.

    ``(a) Common Carrier Obligations.--
            ``(1) In general.--Any common carrier subject to title II 
        of this Act, and that provides video programming directly or 
        indirectly to subscribers in its telephone service area, shall 
        establish a video platform.
            ``(2) Identification of demand for carriage.--Any common 
        carrier subject to the requirements of paragraph (1) shall, 
        prior to establishing a video platform, submit a notice to the 
        Commission of its intention to establish channel capacity for 
        the provision of video programming to meet the bona fide demand 
        for such capacity. Such notice shall--
                    ``(A) be in such form and contain 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 
                request 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, subject to approval of 
        a certificate under section 214, 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 659, 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, subject to approval of a 
                certificate under section 214, 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 Regulations.--
            ``(1) In general.--Within one year after the date of the 
        enactment of this section, the Commission shall prescribe 
        regulations that--
                    ``(A) consistent with the requirements of section 
                659, 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) establish a requirement that video platforms 
                contain a suitable margin of unused channel capacity to 
                meet reasonable growth in bona fide demand for such 
                capacity;
                    ``(D) extend to 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, interconnection, and 
                interoperability for unaffiliated or independent video 
                programming providers that is equivalent to that 
                provided to the common carrier's video programming 
                affiliate;
                    ``(F)(i) prohibit a common carrier from 
                discriminating among video programming providers 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.
            ``(2) Extension of regulations to other high capacity 
        systems.--The Commission shall extend the requirements of the 
        regulations prescribed pursuant to 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 extend the requirements of the regulations prescribed 
        pursuant to subsection (b)(1)(D) or any other requirement that 
        the Commission determines is clearly inappropriate.
    ``(c) 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. EQUAL ACCESS COMPLIANCE.

    ``(a) Certification Required.--
            ``(1) In general.--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 carrier 
        has certified to the Commission that such carrier is in 
        compliance with the requirements of paragraphs (1) and (2) of 
        section 201(c) of this Act, and regulations prescribed pursuant 
        to such paragraphs.
            ``(2) Exception.--Notwithstanding paragraph (1), a common 
        carrier subject to title II of this Act may provide video 
        programming directly to subscribers in its telephone service 
        area during any period prior to the date the Commission first 
        prescribes final regulations pursuant to paragraphs (1) and (2) 
        of section 201(c) of this Act if such carrier has certified to 
        the Commission that such carrier is in compliance with State 
        laws and regulations concerning equal access, interconnection, 
        and unbundling that are substantially similar to and fully 
        consistent with the requirements of such paragraphs or if there 
        is no statutory prohibition against such carrier providing 
        video programming directly to subscribers in its telephone 
        service area on the date of enactment of this section. A common 
        carrier that is permitted to provide video programming under 
        this paragraph prior to the effective date of such regulations 
        shall not be exempt from the requirements of paragraph (1) 
        after the effective date of such final regulations.
    ``(b) Certification and Application Approval.--A common carrier 
that submits a certification under paragraph (1) or (2) of subsection 
(a) shall be eligible to provide video programming to subscribers in 
accordance with the requirements of this part, subject to the approval 
of any necessary application under section 214 for authority to 
establish a video platform. An application under section 214 may be 
filed simultaneously with the filing of such certification or at any 
time after the date of enactment of this section, and the Commission 
shall act to approve (with or without modification) or reject such 
application within 180 days after the date of its submission. If the 
Commission acts to approve such an application prior to the filing of 
such certification, such approval shall not be effective until such 
certification is filed.

``SEC. 655. PROHIBITION OF CROSS-SUBSIDIZATION.

    ``(a) Cross Subsidies Prohibition.--The Commission shall--
            ``(1) prescribe regulations to prohibit a common carrier 
        from engaging in any practice that results in the inclusion in 
        rates for telephone exchange service or telephone exchange 
        access service 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; and
            ``(2) ensure such competing video programming services bear 
        a reasonable share of the joint and common costs of facilities 
        used to provide telephone exchange service or telephone 
        exchange access service and competing video programming 
        services.
    ``(b) Cable Operator Prohibitions.--The Commission shall prescribe 
regulations to prohibit a cable operator from engaging in any practice 
that results in improper cross-subsidization between its regulated 
cable operations and its provision of telecommunications service, 
either directly or through an affiliate.

``SEC. 656. PROHIBITION ON BUYOUTS.

    ``(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 (as such term is defined in section 602) 
                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 March 1, 
                1994, 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 March 1, 
                1994; 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 March 1, 1994.
    ``(c) Waiver.--
            ``(1) Criteria for waiver.--The Commission may waive the 
        restrictions in subsection (a) of this section only upon a 
        showing by the applicant that--
                    ``(A) because of the nature of the market served by 
                the cable system concerned--
                            ``(i) the incumbent cable operator would be 
                        subjected to undue economic distress by the 
                        enforcement of such subsection; or
                            ``(ii) the cable system would not be 
                        economically viable if such subsection were 
                        enforced; and
                    ``(B) the local franchising authority approves of 
                such waiver.
            ``(2) Deadline for action.--The Commission shall act to 
        approve or disapprove a waiver application within 180 days 
        after the date it is filed.

``SEC. 657. PENALTIES.

    ``If the Commission finds that any common carrier has knowingly 
violated any provision of this part, the Commission shall assess such 
fines and penalties as it deems appropriate pursuant to this Act.

``SEC. 658. CONSUMER PROTECTION.

    ``(a) Joint Board Required.--Within 30 days after the date of 
enactment of this part, the Commission shall convene a Federal-State 
Joint Board under the provisions of section 410(c) for the purpose of 
recommending a decision concerning the practices, classifications, and 
regulations as may be necessary to ensure proper jurisdictional 
separation and allocation of the costs of establishing and providing a 
video platform. The Board shall issue its recommendations to the 
Commission within 270 days after the date of enactment of this part.
    ``(b) Commission Regulations Required.--The Commission, with 
respect to interstate switched access service, and the States, with 
respect to telephone exchange service and intrastate interexchange 
service, shall establish such regulations as may be necessary to 
implement section 655 within one year after the date of the enactment 
of this part.
    ``(c) No Effect on Carrier Regulation Authority.--Nothing in this 
section shall be construed to limit or supersede the authority of any 
State or the Commission with respect to the allocation of costs 
associated with intrastate or interstate communication services.

``SEC. 659. APPLICABILITY OF FRANCHISE AND OTHER REQUIREMENTS.

    ``(a) In General.--Any provision that applies to a cable operator 
under--
            ``(1) sections 613, 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 of Requirements.--
            ``(1) Regulations.--The Commission shall prescribe 
        regulations to ensure that a video programming affiliate of a 
        common carrier 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. Such regulations shall also require 
        that, if a common carrier establishes a video platform but does 
        not provide or ceases to provide video programming through a 
        video programming affiliate, such carrier shall comply with the 
        regulations prescribed under this paragraph and with the 
        provisions described in subsection (a)(1) in the operation of 
        its video platform.
            ``(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. 660. RURAL AREA EXEMPTION.

    ``The provisions of sections 652, 653, 654, and 656 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. 402. REVIEW OF BROADCASTERS' OWNERSHIP RESTRICTIONS.

    Within one year after the date of enactment of this Act, the 
Commission shall, after a notice and comment proceeding, prescribe 
regulations to modify, maintain, or remove the ownership regulations on 
radio and television broadcasters as necessary to ensure that 
broadcasters are able to compete fairly with other information 
providers while protecting the goals of diversity and localism.

SEC. 403. REVIEW OF STATUTORY OWNERSHIP RESTRICTION.

    Within one year after the date of enactment of this Act, the 
Commission shall review the ownership restriction in section 613(a)(1) 
of the Communications Act of 1934 (47 U.S.C. 553(a)(1)) and report to 
Congress whether or not such restriction continues to serve the public 
interest.

SEC. 404. BROADCASTER SPECTRUM FLEXIBILITY.

    (a) Regulations Required.--If the Commission determines to issue 
additional licenses for advanced television services, and initially 
limits the 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), the 
Commission shall 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 indivisible from the use of such 
        designated frequency 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) treat any such ancillary or supplementary services for 
        which the licensee or permittee solicits and receives 
        compensation in return for transmitting commercial advertising 
        as broadcast services for the purposes of the Communications 
        Act of 1934 and the Children's Television Act of 1990 (47 
        U.S.C. 303a), and the Commission's regulations thereunder, 
        including regulations promulgated pursuant to section 315 of 
        the Communications Act of 1934 (47 U.S.C. 315);
            (4) 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;
            (5) 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, including 
        regulations that stipulate the minimum number of hours per day 
        that such signal must be transmitted; and
            (6) 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 limits the 
        eligibility for licenses to provide advanced television 
        services in the manner described in subsection (a), 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) Regulations.--The Commission shall prescribe 
        regulations establishing criteria for rendering determinations 
        concerning license surrender pursuant to license conditions 
        required by paragraph (1). Such regulations shall--
                    (A) require such determinations to be based 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 
                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.
    (d) Fees Required.--
            (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 by regulation a program to 
        assess and collect an annual fee or royalty payment.
            (2) Criteria for regulations.--The regulations 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 is, to 
                maximum extent feasible, equal (over the term of the 
                license) to the amount that would have been recovered 
                had such services been licensed pursuant to the 
                provisions of section 309(j) of the Communications Act 
                of 1934 (47 U.S.C. 309(j)) 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 Required.--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 in 
        order to issue additional licenses for the provision of 
        advanced television services.
    (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 to enhance audio quality 
        and video resolution, 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. 405. INTERACTIVE SERVICES AND CRITICAL INTERFACES.

    (a) Findings.--The Congress finds that--
            (1) the convergence of communications, computing, and video 
        technologies will permit improvements in interoperability 
        between and among those technologies;
            (2) in the public switched telecommunications network, open 
        protocols and technical requirements for connection between the 
        network and the consumer, and the availability of unbundled 
        customer equipment through retailers and other third party 
        vendors, have served to broaden consumer choice, lower prices, 
        and spur competition and innovation in the customer equipment 
        industry;
            (3) set-top boxes and other interactive communications 
        devices could similarly serve as a critical gateway between 
        American homes and businesses and advanced telecommunications 
        and video programming networks;
            (4) American consumers have benefited from the ability to 
        own or rent customer premises equipment obtained from retailers 
        and other vendors and the ability to access the network with 
        portable, compatible equipment;
            (5) in order to promote diversity, competition, and 
        technological innovation among suppliers of equipment and 
        services, it may be necessary to make certain critical 
        interfaces with such networks open and accessible to a broad 
        range of equipment manufacturers and information providers;
            (6) the identification of critical interfaces with such 
        networks and the assessment of their openness must be 
        accomplished with due recognition that open and accessible 
        systems may include standards that involve both nonproprietary 
        and proprietary technologies;
            (7) such identification and assessment must also be 
        accomplished with due recognition of the need for owners and 
        distributors of video programming and information services to 
        ensure system and signal security and to prevent theft of 
        service;
            (8) whenever possible, standards in dynamic industries such 
        as interactive systems are best set by the marketplace or by 
        private sector standard-setting bodies; and
            (9) the role of the Commission in this regard is--
                    (A) to identify, in consultation with industry 
                groups, consumer interests, and independent experts, 
                critical interfaces with such networks (i) to ensure 
                that end users can connect information devices to such 
                networks, and (ii) to ensure that information service 
                providers are able to transmit information to end 
                users, and
                    (B) as necessary, to take steps to ensure these 
                networks and services are accessible to a broad range 
                of equipment manufacturers, information providers, and 
                program suppliers.
    (b) Inquiry Required.--Within 6 months after the date of the 
enactment of this Act, the Commission shall commence an inquiry--
            (1) to examine the impact of the convergence of 
        technologies on cable, telephone, satellite, and wireless and 
        other communications technologies likely to offer interactive 
        communications services;
            (2) to ascertain the importance of maintaining open and 
        accessible systems in interactive communications services;
            (3) to examine the costs and benefits of maintaining 
        varying levels of interoperability between and among 
        interactive communications services;
            (4) to examine the costs and benefits of establishing open 
        interfaces (A) between the network provider and the set-top box 
        or other interactive communications devices used in the home or 
        office, and (B) between network providers and information 
        service providers, and to determine how best to establish such 
        interfaces;
            (5) to determine methods by which converter boxes or other 
        interactive communications devices may be sold through 
        retailers and other third party vendors and to determine the 
        vendors' responsibilities for ensuring that their devices are 
        interoperable with interactive networks;
            (6) to assess how the security of cable, satellite, and 
        other interactive systems or their services can continue to be 
        ensured with the establishment of an interface between the 
        network and a converter box or other interactive communications 
        device, including those manufactured and distributed at retail 
        by entities independent of network providers and information 
        service providers, and to determine the responsibilities of 
        such independent entities for assuring network security and for 
        conforming to signal interference standards;
            (7) to ascertain the conditions necessary to ensure that 
        any critical interface is available to information and content 
        providers and others who seek to design, build, and distribute 
        interoperable devices for these networks so as to ensure 
        network access and fair competition for independent information 
        providers and consumers;
            (8) to assess the impact of the deployment of digital 
        technologies on individuals with disabilities, with particular 
        emphasis on any regulatory, policy, or design barriers which 
        would limit functionally equivalent access by such individuals;
            (9) to assess current regulation of telephone, cable, 
        satellite, and other communications delivery systems to 
        ascertain how best to ensure interoperability between those 
        systems;
            (10) to assess the adequacy of current regulation of 
        telephone, cable, satellite, and other communications delivery 
        systems with respect to bundling of equipment and services and 
        to identify any changes in unbundling regulations necessary to 
        assure effective competition and encourage technological 
        innovation, consistent with the finding in subsection (a)(6) 
        and the objectives of paragraph (6) of this subsection, in the 
        market for converter boxes or interactive communications 
        devices and for other customer premises equipment;
            (11) to solicit comment on any changes in the Commission's 
        regulations that are necessary to ensure that diversity, 
        competition, and technological innovation are promoted in 
        communications services and equipment; and
            (12) to prepare recommendations to the Congress for any 
        legislative changes required.
    (c) Report to Congress.--Within 12 months after the date of the 
enactment of this Act, the Commission shall submit to the Congress a 
report on the results of the inquiry required by subsection (b). Within 
6 months after the date of submission of such report, the Commission 
shall prescribe such changes in its regulations as the Commission 
determines are necessary pursuant to subsection (b)(10).
    (d) Preservation of Existing Authority.--Nothing in this section 
shall be construed as limiting, superseding, or otherwise modifying the 
existing authority and responsibilities of the Commission or National 
Institute of Standards and Technology.

SEC. 406. VIDEO PROGRAMMING ACCESSIBILITY.

    (a) Inquiry Required.--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) Contents of Regulations.--Within 18 months after the date of 
enactment, the Commission shall prescribe such regulations as are 
necessary to implement this section. Such regulations shall ensure 
that--
            (1) video programming first published or exhibited after 
        the effective date of such regulations is fully accessible 
        through the provision of closed captions, except as provided in 
        subsection (d); and
            (2) video programming providers or owners maximize the 
        accessibility of video programming first published or exhibited 
        prior to the effective date of such regulations through the 
        provision of closed captions, except as provided in subsection 
        (d).
    (c) Contents of Regulations.--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) Additional Proceeding on Video Descriptions Required.--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) Model Program.--The National Telecommunications and Information 
Administration shall establish and oversee, and (to the extent of 
available funds) provide financial support for, marketplace tests of 
video descriptions on commercial and noncommercial video programming 
services.
    (h) 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.

SEC. 407. PUBLIC ACCESS.

    Within one year after the date of enactment of this Act, the 
Federal Communications Commission shall prescribe regulations to 
reserve appropriate capacity for the public at preferential rates on 
cable systems and video platforms.

SEC. 408. AUTOMATED SHIP DISTRESS AND SAFETY SYSTEMS.

    Notwithstanding any provision of the Communications Act of 1934, 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 station operated by one or more 
radio officers or operators.

SEC. 409. EXCLUSIVE FEDERAL JURISDICTION OVER DIRECT BROADCAST 
              SATELLITE SERVICE.

    Section 303 of the Communications Act of 1934 (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. 410. TECHNICAL AMENDMENTS.

    (a) Retransmission.--Section 325(b)(2)(D) of the Communications Act 
of 1934 (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 
Communications Act of 1934 (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,''.

SEC. 411. AVAILABILITY OF SCREENING DEVICES TO PRECLUDE DISPLAY OF 
              ENCRYPTED PROGRAMMING.

    (a) Customer Notice.--Section 624(d)(2)(A) of the Communications 
Act of 1934 (47 U.S.C. 544(d)(2)(A)) is amended by adding at the end 
the following new sentence: ``Upon beginning service to any new 
subscriber and not less frequently than once each calendar year for 
current subscribers, the cable operator shall inform subscribers of the 
right to request and obtain such device.''.
    (b) Signal Leakage.--Section 624(d)(2) of such Act is further 
amended by adding at the end the following new subparagraph:
    ``(C) The Commission shall prescribe regulations to require, to the 
extent technically feasible, the transmission of programming described 
in subparagraph (A) by means of encrypted signals that permit 
subscribers to effectively and entirely prevent the display of both the 
audio and video portions of such programming with or without the use of 
a device described in subparagraph (A).''.

    TITLE V--PROCUREMENT PRACTICES OF TELECOMMUNICATIONS PROVIDERS.

SEC. 501. FINDINGS.

    The Congress finds the following:
            (1) It is in the public interest for business enterprises 
        owned by minorities and women to participate in procurement 
        contracts of all providers of telecommunications services.
            (2) The opportunity for full participation in our free 
        enterprise system by business enterprises that are owned by 
        minorities and women is essential if this Nation is to attain 
        social and economic equality for those businesses and improve 
        the functioning of the national economy.
            (3) It is in this Nation's interest to expeditiously 
        improve the economically disadvantaged position of business 
        enterprises that are owned by minorities and women.
            (4) The position of these businesses can be improved 
        through the development by the providers of telecommunications 
        services of substantial long-range and annual goals, which are 
        supported by training and technical assistance, for the 
        purchase, to the maximum practicable extent, of technology, 
        equipment, supplies, services, material and construction from 
        minority business enterprises.
            (5) Procurement policies which include participation of 
        business enterprises that are owned by minorities and women 
        also benefit the communication industry and its consumers by 
        encouraging the expansion of the numbers of suppliers for 
        procurement, thereby encouraging competition among suppliers 
        and promoting economic efficiency in the process.

SEC. 502. PURPOSE.

    The purposes of this title are--
            (1) to encourage and foster greater economic opportunity 
        for business enterprises that are owned by minorities and 
        women;
            (2) to promote competition among suppliers to providers of 
        telecommunications services and their affiliates to enhance 
        economic efficiency in the procurement of telephone corporation 
        contracts and contracts of their State commission-regulated 
        subsidiaries and affiliates;
            (3) to clarify and expand a program for the procurement by 
        State and federally-regulated telephone companies of 
        technology, equipment, supplies, services, materials and 
        construction work from business enterprises that are owned by 
        minorities and women; and
            (4) to ensure that a fair proportion of the total 
        purchases, contracts, and subcontracts for supplies, 
        commodities, technology, property, and services offered by the 
        providers of telecommunications services and their affiliates 
        are awarded to minority and women business enterprises.

SEC. 503. ANNUAL PLAN SUBMISSION.

    (a) Annual Plans Required.--
            (1) In general.--The Commission shall require each provider 
        of telecommunications services to submit annually a detailed 
        and verifiable plan for increasing its procurement from 
        business enterprises that are owned by minorities or women in 
        all categories of procurement in which minorities are under 
        represented.
            (2) Contents of plans.--The annual plans required by 
        paragraph (1) shall include (but not be limited to) short- and 
        long-term progressive goals and timetables, technical 
        assistance, and training and shall, in addition to goals for 
        direct contracting opportunities, include methods for 
        encouraging both prime contractors and grantees to engage 
        business enterprises that are owned by minorities and women in 
        subcontracts in all categories in which minorities are under 
        represented.
            (3) Implementation report.--Each provider of 
        telecommunications services shall furnish an annual report to 
        the Commission regarding the implementation of programs 
        established pursuant to this title in such form as the 
        Commission shall require, and at such time as the Commission 
        shall annually designate.
            (4) Report to congress.--The Commission shall provide an 
        annual report to Congress, beginning in January 1995, on the 
        progress of activities undertaken by each provider of 
        telecommunications services regarding the implementation of 
        activities pursuant to this title to develop business 
        enterprises that are owned by minorities or women. The report 
        shall evaluate the accomplishments under this title and shall 
        recommend a program for enhancing the policy declared in this 
        title, together with such recommendations for legislation as it 
        deems necessary or desirable to further that policy.
    (b) Regulations and Criteria for Determining Eligibility of 
Minority Business Enterprises for Procurement Contracts.--
            (1) In general.--The Commission shall establish regulations 
        for implementing programs pursuant to this title that will 
        govern providers of telecommunications services and their 
        affiliates.
            (2) Verifying criteria.--The Commission shall develop and 
        publish regulations setting forth criteria for verifying and 
        determining the eligibility of business enterprises that are 
        owned by minorities or women for procurement contracts.
            (3) Outreach.--The Commission's regulations shall require 
        each provider of telecommunications services and its affiliates 
        to develop and to implement an outreach program to inform and 
        recruit business enterprises that are owned by minorities or 
        women to apply for procurement contracts under this title.
            (4) Enforcement.--The Commission shall establish and 
        promulgate such regulations necessary to enforce the provisions 
        of this title.
    (c) Waiver Authority.--The requirements of this section may be 
waived, in whole or in part, by the Commission with respect to a 
particular contract or subcontract in accordance with guidelines set 
forth in regulations which the Commission shall prescribe when it 
determines that the application of such regulations prove to result in 
undue hardship or unreasonable expense to a provider of 
telecommunications services.

SEC. 504. SANCTIONS AND REMEDIES.

    (a) False Representation of Businesses; Sanctions.--
            (1) In general.--Any person or corporation, through its 
        directors, officers, or agent, which falsely represents the 
        business as a business enterprise that are owned by minorities 
        or women in the procurement or attempt to procure contracts 
        from telephone operating companies and their affiliates 
        pursuant to this article, shall be punished by a fine of not 
        more than $5,000, or by imprisonment for a period not to exceed 
        5 years of its directors, officers, or agents responsible for 
        the false statements, or by both fine and imprisonment.
            (2) Holding companies.--Any provider of telecommunications 
        services which falsely represents its annual report to the 
        Commission or its implementation of its programs pursuant to 
        this section shall be subject to a fine of $100,000 and be 
        subject to a penalty of up to 5 years restriction from 
        participation in lines of business activities provided for in 
        this title.
    (b) Independent Cause of Action, Remedies, and Attorney Fees.--
            (1) Discrimination prohibited.--No otherwise qualified 
        business enterprise that are owned by minorities or women shall 
        solely, by reason of its racial, ethnic, or gender composition 
        be excluded from the participation in, be denied the benefits 
        of, or be subjected to discrimination in procuring contracts 
        from telephone utilities.
            (2) Civil actions authorized.--Whenever a qualified 
        business enterprise that is owned by minorities or women has 
        reasonable cause to believe that a provider of 
        telecommunications services or its affiliate is engaged in a 
        pattern or practice of resistance to the full compliance of any 
        provision of this title, the business enterprise may bring a 
        civil action in the appropriate district court of the United 
        States against the provider of telecommunications services or 
        its affiliate requesting such monetary or injunctive relief, or 
        both, as deemed necessary to ensure the full benefits of this 
        title.
            (3) Attorneys' fees and costs.--In any action or proceeding 
        to enforce or charge of a violation of a provision of this 
        title, the court, in its discretion, may allow the prevailing 
        party reasonable attorneys' fees and costs.

SEC. 505. DEFINITIONS.

    For the purpose of this title, the following definitions apply:
            (1) The term ``business enterprise owned by minorities or 
        women'' means--
                    (A) a business enterprise that is at least 51 
                percent owned by a person or persons who are minority 
                persons or women; or
                    (B) in the case of any publicly owned business, at 
                least 51 percent of the stock of which is owned by one 
                or more persons who are minority persons or women, and 
                whose management and daily business operations are 
                controlled by one or more of those persons.
            (2) The term ``minority person'' means persons who are 
        Black Americans, Hispanic Americans, Native Americans, Asian 
        Americans, and Pacific Americans.
            (3) The term ``control'' means exercising the power to make 
        financial and policy decisions.
            (4) The term ``operate'' means the active involvement in 
        the day-to-day management of the business and not merely being 
        officers or directors.
            (5) The term ``Commission'' means the Federal 
        Communications Commission.
            (6) The term ``telecommunications service'' has the meaning 
        provided in section 3(oo) of the Communications Act of 1934 (as 
        added by this Act).

         TITLE VI--FEDERAL COMMUNICATIONS COMMISSION RESOURCES

SEC. 601. 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 purposes of section 9(b)(2) of the 
Communications Act of 1934 (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.

            Passed the House of Representatives June 28, 1994.

            Attest:

                                                                 Clerk.
                                     

103d CONGRESS

  2d Session

                               H. R. 3626

_______________________________________________________________________

                                 AN ACT

  To supersede the Modification of Final Judgment entered August 24, 
1982, in the antitrust action styled United States v. Western Electric, 
Civil Action No. 82-0192, United States District Court for the District 
 of Columbia; to amend the Communications Act of 1934 to regulate the 
   manufacturing of Bell operating companies, and for other purposes.
```