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[Congressional Bills 103th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3636 Reported in House (RH)]

                                                 Union Calendar No. 314

103d CONGRESS

  2d Session

                               H. R. 3636

                          [Report No. 103-560]

_______________________________________________________________________

                                 A BILL

   To promote a national communications infrastructure to encourage 
deployment of advanced communications services through competition, and 
                          for other purposes.

_______________________________________________________________________

                             June 24, 1994

  Reported with an amendment, committed to the Committee of the Whole 
       House on the State of the Union and ordered to be printed

                                                 Union Calendar No. 314
103d CONGRESS
  2d Session
                                H. R. 3636

                          [Report No. 103-560]

   To promote a national communications infrastructure to encourage 
deployment of advanced communications services through competition, and 
                          for other purposes.

_______________________________________________________________________

                    IN THE HOUSE OF REPRESENTATIVES

                           November 22, 1993

 Mr. Markey (for himself, Mr. Fields of Texas, Mr. Boucher, Mr. Oxley, 
 Mr. Hall of Texas, Mr. Moorhead, Mr. Bryant, Mr. Barton of Texas, Mr. 
   Lehman, Mr. Hastert, Mr. Richardson, Mr. Gillmor, and Ms. Schenk) 
 introduced the following bill; which was referred to the Committee on 
                          Energy and Commerce

                           February 10, 1994

      Additional sponsors: Mr. Moakley, Mr. Studds, Mr. Frank of 
     Massachusetts, Mr. Levy, Mr. Meehan, Mr. Olver, Mr. Franks of 
          Connecticut, Mr. Machtley, Mr. Blute, and Mr. McHugh

                             June 24, 1994

Additional sponsors: Mr. LaFalce, Mr. Quinn, Mr. Boehlert, Mr. Nadler, 
Mr. Swett, Mr. Paxon, Mr. Torkildsen, Mr. Lazio, Mr. Engel, Mrs. Lowey, 
  Mr. Solomon, Mr. King, Ms. Molinari, Mr. Neal of Massachusetts, Mr. 
Owens, Mr. Kennedy, Mr. Shays, Mr. Tauzin, Mr. Schaefer, Mr. Yates, and 
                              Mr. Quillen

                             June 24, 1994

  Reported with an amendment, committed to the Committee of the Whole 
       House on the State of the Union and ordered to be printed
 [Strike out all after the enacting clause and insert the part printed 
                               in italic]
    [For text of introduced bill, see copy of bill as introduced on 
                           November 22, 1993]

_______________________________________________________________________

                                 A BILL

 
   To promote a national communications infrastructure to encourage 
deployment of advanced communications services through competition, 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 TITLE; TABLE OF CONTENTS.

    (a) Short Title.--This Act may be cited as the ``National 
Communications Competition and Information Infrastructure Act of 
1994''.
    (b) Table of Contents.--

Sec. 1. Short title; table of contents.

       TITLE I--TELECOMMUNICATIONS INFRASTRUCTURE AND COMPETITION

Sec. 101. Policy; definitions.
Sec. 102. Equal access and network functionality and quality.
Sec. 103. Telecommunications services for educational institutions, 
                            health care institutions, and libraries.
Sec. 104. Discriminatory interconnection.
Sec. 105. Expedited licensing of new technologies and services.
Sec. 106. New or extended lines.
Sec. 107. Pole attachments.
Sec. 108. Inquiry on civic participation.
Sec. 109. Competition by small business and minority-owned business 
                            concerns.

                TITLE II--COMMUNICATIONS COMPETITIVENESS

Sec. 201. Cable service provided by telephone companies.
Sec. 202. Review of broadcasters ownership restrictions.
Sec. 203. Review of statutory ownership restriction.
Sec. 204. Broadcaster spectrum flexibility.
Sec. 205. Interactive services and critical interfaces.
Sec. 206. Video programming accessibility.
Sec. 207. Public access.
Sec. 208. Automated ship distress and safety systems.
Sec. 209. Cable technical standards review.
Sec. 210. Exclusive Federal jurisdiction over direct broadcast 
                            satellite service.

    TITLE III--PROCUREMENT PRACTICES OF TELECOMMUNICATIONS PROVIDERS

Sec. 301. Findings.
Sec. 302. Purposes.
Sec. 303. Annual plan submission.
Sec. 304. Sanctions and remedies.
Sec. 305. Definitions.

         TITLE IV--FEDERAL COMMUNICATIONS COMMISSION RESOURCES

Sec. 401. Authorization of appropriations.

       TITLE I--TELECOMMUNICATIONS INFRASTRUCTURE AND COMPETITION

SEC. 101. 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:
    ``(gg) `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.
    ``(hh) `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.
    ``(ii) `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.
    ``(jj) `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.
    ``(kk) `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.
    ``(ll) `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.
    ``(mm) `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. 102. 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 is not inconsistent with 
                subparagraph (A) 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) 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.
                    ``(D) 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 ensure 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, 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 shall 
                        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.
                            ``(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 educational, library, public 
                        broadcast, and other tax-exempt institutions, 
                        and governmental entities, both as producers 
                        and users of services as soon as technically 
                        feasible and economically reasonable. Such 
                        preferential rates should only be made 
                        available to such institutions and entities 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 and entities.
                            ``(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.
            ``(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 such service) in conjunction with the furnishing 
        of a telecommunications service or any 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) Continuing oversight.--Commencing not later 
                than 2 years after the date of enactment of this 
                subsection, the Commission shall conduct an inquiry on 
                the progress of open platform service deployment. The 
                Commission shall submit a report to the Congress on the 
                results of such inquiry within 180 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 any qualifying carrier such public switched 
        telecommunications network technology and information and 
        telecommunications facilities and functions as may be requested 
        by such 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;
                    ``(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. 103. 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. 229. 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. 104. 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. 105. 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. 106. NEW OR EXTENDED LINES.

    Section 214 of the Communications Act of 1934 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. 107. 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 National Communications Competition and Information Infrastructure 
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(mm) 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 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 subsection (d)(1) shall not apply 
to a pole attachment used by a cable television system which solely 
provides 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. 108. INQUIRY ON CIVIC PARTICIPATION.

    (a) Inquiry on Policies To Enhance Civic Participation on the 
Internet.--The Commission, in consultation with the National 
Telecommunications and Information Administration, shall initiate an 
inquiry into policies that will enhance civic participation through the 
Internet. The inquiry shall request public comment on the question of 
whether common carriers should be required to provide citizens with a 
flat rate service for gaining access to the Internet.
    (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. 109. 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. 230. POLICY AND RULEMAKING TO PROMOTE COMPETITION BY SMALL 
              BUSINESS AND MINORITY-OWNED BUSINESS CONCERNS.

    ``(a) Policy; Finding.--It shall be the policy of the Commission to 
promote whenever possible the ownership of information services and 
telecommunication services by small business concerns, minority-owned 
business concerns, and nonprofit entities. The Congress finds that the 
goals of competitively priced services, service innovation, employment, 
and diversity of viewpoint can be advanced by promoting marketplace 
penetration 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, minority-owned business concerns, 
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 II--COMMUNICATIONS COMPETITIVENESS

SEC. 201. 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) actual working control, as defined in the 
                order of the Commission entitled `Implementation of 
                Sections 11 and 13 of the Cable Television Consumer 
                Protection and Competitive Act of 1992--Horizontal and 
                Vertical Ownership Limits, Cross-Ownership Limitations, 
                and Anti-Trafficking Provisions', MM Docket 92-264, 
                adopted September 23, 1993, 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;
            ``(2) the term `video platform' has the same meaning as the 
        term `basic platform' in the order of the Commission entitled 
        `Telephone Company-Cable Television Cross-Ownership Rules, 
        Sections 63.54-63.58', CC Docket No. 87-266, adopted July 16, 
        1992, except that the Commission may modify this definition by 
        regulation consistent with the purposes of this Act; and
            ``(3) 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, through a video programming 
        affiliate, video programming directly 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 submits a certification pursuant to this paragraph 
        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; or
            ``(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.
    ``(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. 202. 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. 203. 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. 204. 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. 205. 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 manufactures, 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 its service 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. 206. 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 close 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. 207. 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. 208. 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. 209. CABLE TECHNICAL STANDARDS REVIEW.

    Within one year after the date of enactment of this Act, the 
Commission shall review its standards under sections 624(e) and 624A of 
the Communications Act of 1934 (47 U.S.C. 544, 544a) to determine 
whether such standards may be revised to ensure that neither the video 
programming, nor the accompanying audio signal, of any programming that 
is provided on a per channel or per program basis is able to be 
presented on the television receivers of subscribers unless the 
subscriber has requested that programming, whether or not that 
subscriber uses a converter or other device provided by the cable 
operator.

SEC. 210. 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.''.

    TITLE III--PROCUREMENT PRACTICES OF TELECOMMUNICATIONS PROVIDERS

SEC. 301. 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. 302. 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. 303. 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. 304. 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 is 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. 305. 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(mm) of the Communications Act of 1934 (as 
        added by this Act).

         TITLE IV--FEDERAL COMMUNICATIONS COMMISSION RESOURCES

SEC. 401. 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), 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).
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