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[Congressional Bills 104th Congress]
[From the U.S. Government Publishing Office]
[S. 652 Engrossed Amendment House (EAH)]

                In the House of Representatives, U. S.,

                                                      October 12, 1995.

    Resolved, That the bill from the Senate (S. 652) entitled ``An Act to 
provide for a pro-competitive, de-regulatory national policy framework designed 
to accelerate rapidly private sector deployment of advanced telecommunications 
and information technologies and services to all Americans by opening all 
telecommunications markets to competition, and for other purposes'', do pass 
with the following

                              AMENDMENTS:

    Strike out all after the enacting clause and insert:

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

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

Sec. 1. Short title; references; table of contents.

     TITLE I--DEVELOPMENT OF COMPETITIVE TELECOMMUNICATIONS MARKETS

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

             ``Part II--Development of Competitive Markets

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

              ``Part III--Special and Temporary Provisions

        ``Sec. 271. Manufacturing by Bell operating companies.
        ``Sec. 272. Electronic publishing by Bell operating companies.
        ``Sec. 273. Alarm monitoring and telemessaging services by Bell 
                            operating companies.
        ``Sec. 274. Provision of payphone service.''.
Sec. 103. Forbearance from regulation.
        ``Sec. 230. Protection for private blocking and screening of 
                            offensive material; FCC regulation of 
                            computer services prohibited.''.
Sec. 104. Online family empowerment.
Sec. 105. Privacy of customer information.
        ``Sec. 222. Privacy of customer proprietary network 
                            information.''.
Sec. 106. Pole attachments.
Sec. 107. Preemption of franchising authority regulation of 
                            telecommunications services.
Sec. 108. Facilities siting; radio frequency emission standards.
Sec. 109. Mobile service access to long distance carriers.
Sec. 110. Freedom from toll fraud.
Sec. 111. Report on means of restricting access to unwanted material in 
                            interactive telecommunications systems.
Sec. 112. Telecommunications development fund.
        ``Sec. 10. Telecommunication development fund.''.
Sec. 113. Report on the use of advanced telecommunications services for 
                            medical purposes.
Sec. 114. Telecommuting public information program.
Sec. 115. Authorization of appropriations.

             TITLE II--CABLE COMMUNICATIONS COMPETITIVENESS

Sec. 201. Cable service provided by telephone companies.

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

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

          TITLE III--BROADCAST COMMUNICATIONS COMPETITIVENESS

Sec. 301. Broadcaster spectrum flexibility.
        ``Sec. 336. Broadcast spectrum flexibility.''.
Sec. 302. Broadcast ownership.
        ``Sec. 337. Broadcast ownership.''.
Sec. 303. Foreign investment and ownership.
Sec. 304. Family viewing empowerment.
Sec. 305. Parental choice in television programming.
Sec. 306. Term of licenses.
Sec. 307. Broadcast license renewal procedures.
Sec. 308. Exclusive Federal jurisdiction over direct broadcast 
                            satellite service.
Sec. 309. Automated ship distress and safety systems.
Sec. 310. Restrictions on over-the-air reception devices.
Sec. 311. DBS signal security.
Sec. 312. Delegation of equipment testing and certification to private 
                            laboratories.

                     TITLE IV--EFFECT ON OTHER LAWS

Sec. 401. Relationship to other laws.
Sec. 402. Preemption of local taxation with respect to DBS services.
Sec. 403. Protection of minors and clarification of current laws 
                            regarding communication of obscene and 
                            indecent materials through the use of 
                            computers.

                          TITLE V--DEFINITIONS

Sec. 501. Definitions.

              TITLE VI--SMALL BUSINESS COMPLAINT PROCEDURE

Sec. 601. Complaint procedure.

     TITLE I--DEVELOPMENT OF COMPETITIVE TELECOMMUNICATIONS MARKETS

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

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

             ``PART II--DEVELOPMENT OF COMPETITIVE MARKETS

``SEC. 241. INTERCONNECTION.

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

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

    ``(a) Openness and Accessibility Obligations.--The duty under 
section 201(a) of a local exchange carrier includes the following 
duties:
            ``(1) Interconnection.--The duty to provide, in accordance 
        with subsection (b), equal access to and interconnection with 
        the facilities of the carrier's networks to any other carrier 
        or person offering (or seeking to offer) telecommunications 
        services or information services reasonably requesting such 
        equal access and interconnection, so that such networks are 
        fully interoperable with such telecommunications services and 
        information services. For purposes of this paragraph, a request 
        is not reasonable unless it contains a proposed plan, including 
        a reasonable schedule, for the implementation of the requested 
        access or interconnection.
            ``(2) Unbundling of network elements.--The duty to offer 
        unbundled services, elements, features, functions, and 
        capabilities whenever technically feasible, at just, 
        reasonable, and nondiscriminatory prices and in accordance with 
        subsection (b)(4).
            ``(3) Resale.--The duty--
                    (A) to offer services, elements, features, 
                functions, and capabilities for resale at wholesale 
                rates, and
                    (B) not to prohibit, and not to impose unreasonable 
                or discriminatory conditions or limitations on, the 
                resale of such services, elements, features, functions, 
                and capabilities, on a bundled or unbundled basis, 
                except that a carrier may prohibit a reseller that 
                obtains at wholesale rates a service, element, feature, 
                function, or capability that is available at retail 
                only to a category of subscribers from offering such 
                service, element, feature, function, or capability to a 
                different category of subscribers.
        For the purposes of this paragraph, wholesale rates shall be 
        determined on the basis of retail rates for the service, 
        element, feature, function, or capability provided, excluding 
        the portion thereof attributable to any marketing, billing, 
        collection, and other costs that are avoided by the local 
        exchange carrier.
            ``(4) Number portability.--The duty to provide, to the 
        extent technically feasible, number portability in accordance 
        with requirements prescribed by the Commission.
            ``(5) Dialing parity.--The duty to provide, in accordance 
        with subsection (c), dialing parity to competing providers of 
        telephone exchange service and telephone toll service.
            ``(6) Access to rights-of-way.--The duty to afford access 
        to the poles, ducts, conduits, and rights-of-way of such 
        carrier to competing providers of telecommunications services 
        in accordance with section 224(d).
            ``(7) Network functionality and accessibility.--The duty 
        not to install network features, functions, or capabilities 
        that do not comply with any standards established pursuant to 
        section 249.
            ``(8) Good faith negotiation.--The duty to negotiate in 
        good faith, under the supervision of State commissions, the 
        particular terms and conditions of agreements to fulfill the 
        duties described in paragraphs (1) through (7). The other 
        carrier or person requesting interconnection shall also be 
        obligated to negotiate in good faith the particular terms and 
        conditions of agreements to fulfill the duties described in 
        paragraphs (1) through (7).
    ``(b) Interconnection, Compensation, and Equal Access.--
            ``(1) Interconnection.--A local exchange carrier shall 
        provide access to and interconnection with the facilities of 
        the carrier's network at any technically feasible point within 
        the carrier's network on just and reasonable terms and 
        conditions, to any other carrier or person offering (or seeking 
        to offer) telecommunications services or information services 
        requesting such access.
            ``(2) Intercarrier compensation between facilities-based 
        carriers.--
                    ``(A) In general.--For the purposes of paragraph 
                (1), the terms and conditions for interconnection of 
                the network facilities of a competing provider of 
                telephone exchange service shall not be considered to 
                be just and reasonable unless--
                            ``(i) such terms and conditions provide for 
                        the mutual and reciprocal recovery by each 
                        carrier of costs associated with the 
                        termination on such carrier's network 
                        facilities of calls that originate on the 
                        network facilities of the other carrier;
                            ``(ii) such terms and conditions determine 
                        such costs on the basis of a reasonable 
                        approximation of the additional costs of 
                        terminating such calls; and
                            ``(iii) the recovery of costs permitted by 
                        such terms and conditions are reasonable in 
                        relation to the prices for termination of calls 
                        that would prevail in a competitive market.
                    ``(B) Rules of construction.--This paragraph shall 
                not be construed--
                            ``(i) to preclude arrangements that afford 
                        such mutual recovery of costs through the 
                        offsetting of reciprocal obligations, including 
                        arrangements that waive mutual recovery (such 
                        as bill-and-keep arrangements); or
                            ``(ii) to authorize the Commission or any 
                        State commission to engage in any rate 
                        regulation proceeding to establish with 
                        particularity the additional costs of 
                        terminating calls, or to require carriers to 
                        maintain records with respect to the additional 
                        costs of terminating calls.
            ``(3) Equal access.--A local exchange carrier shall afford, 
        to any other carrier or person offering (or seeking to offer) a 
        telecommunications service or an information service, 
        reasonable and nondiscriminatory access on an unbundled basis--
                    ``(A) to databases, signaling systems, billing and 
                collection services, poles, ducts, conduits, and 
                rights-of-way owned or controlled by a local exchange 
                carrier, or other facilities, functions, or information 
                (including subscriber numbers) integral to the 
                efficient transmission, routing, or other provision of 
                telephone exchange services or exchange access;
                    ``(B) that is equal in type and quality to the 
                access which the carrier affords to itself or to any 
                other person, and is available at nondiscriminatory 
                prices; and
                    ``(C) that is sufficient to ensure the full 
                interoperability of the equipment and facilities of the 
                carrier and of the person seeking such access.
            ``(4) Commission action required.--
                    ``(A) In general.--Within 6 months after the date 
                of enactment of this part, the Commission shall 
                complete all actions necessary (including any 
                reconsideration) to establish regulations to implement 
                the requirements of this section. The Commission shall 
                establish such regulations after consultation with the 
                Joint Board established pursuant to section 247.
                    ``(B) Accommodation of state access regulations.--
                In prescribing and enforcing regulations to implement 
                the requirements of this section, the Commission shall 
                not preclude the enforcement of any regulation, order, 
                or policy of a State commission that--
                            ``(i) establishes access and 
                        interconnection obligations of local exchange 
                        carriers;
                            ``(ii) is consistent with the requirements 
                        of this section; and
                            ``(iii) does not substantially prevent the 
                        Commission from fulfilling the requirements of 
                        this section and the purposes of this part.
                    ``(C) Collocation.--Such regulations shall provide 
                for actual collocation of equipment necessary for 
                interconnection for telecommunications services at the 
                premises of a local exchange carrier, except that the 
                regulations shall provide for virtual collocation where 
                the local exchange carrier demonstrates that actual 
                collocation is not practical for technical reasons or 
                because of space limitations.
                    ``(D) User payment of costs.--Such regulations 
                shall require that the costs that a carrier incurs in 
                offering access, interconnection, number portability, 
                or unbundled services, elements, features, functions, 
                and capabilities shall be borne by the users of such 
                access, interconnection, number portability, or 
                services, elements, features, functions, and 
                capabilities.
                    ``(E) Imputed charges to carrier.--Such regulations 
                shall require the carrier, to the extent it provides a 
                telecommunications service or an information service 
                that requires access or interconnection to its network 
                facilities, to impute such access and interconnection 
                charges to itself.
    ``(c) Number Portability and Dialing Parity.--
            ``(1) Availability.--A local exchange carrier shall ensure 
        that--
                    ``(A) number portability shall be available on 
                request in accordance with subsection (a)(4); and
                    ``(B) dialing parity shall be available upon 
                request, except that, in the case of a Bell operating 
                company, such company shall ensure that dialing parity 
                for intraLATA telephone toll service shall be available 
                not later than the date such company is authorized to 
                provide interLATA services.
            ``(2)  Number administration.--The Commission shall 
        designate one or more impartial entities to administer 
        telecommunications numbering and to make such numbers available 
        on an equitable basis. The Commission shall have exclusive 
        jurisdiction over those portions of the North American 
        Numbering Plan that pertain to the United States. Nothing in 
        this paragraph shall preclude the Commission from delegating to 
        State commissions or other entities any portion of such 
        jurisdiction.
    ``(d) Joint Marketing of Resold Elements.--
            ``(1) Restriction.--Except as provided in paragraph (2), no 
        service, element, feature, function, or capability that is made 
        available for resale in any State by a Bell operating company 
        may be jointly marketed directly or indirectly with any 
        interLATA telephone toll service until such Bell operating 
        company is authorized pursuant to section 245(c) to provide 
        interLATA services in such State.
            ``(2) Competing providers.--Paragraph (1) shall not 
        prohibit joint marketing of services, elements, features, 
        functions, or capabilities acquired from a Bell operating 
        company by an unaffiliated provider that, together with its 
        affiliates, has in the aggregate less than 2 percent of the 
        access lines installed nationwide.
    ``(e) Modifications and Waivers.--The Commission may modify or 
waive the requirements of this section for any local exchange carrier 
(or class or category of such carriers) that has, in the aggregate 
nationwide, fewer than 500,000 access lines installed, to the extent 
that the Commission determines that compliance with such requirements 
(without such modification) would be unduly economically burdensome or 
technologically infeasible.
    ``(f) Exemption for Certain Rural Telephone Companies.--Subsections 
(a) through (d) of this section shall not apply to a rural telephone 
company, until such company has received a bona fide request for 
services, elements, features or capabilities described in subsections 
(a) through (d). Following a bona fide request to the carrier and 
notice of the request to the State commission, the State commission 
shall determine within 120 days whether the request would be unduly 
economically burdensome, be technologically infeasible, and be 
consistent with subsections (b)(1) through (b)(5), (c)(1), and (c)(3) 
of section 247. The exemption provided by this subsection shall not 
apply if such carrier provides video programming services over its 
telephone exchange facilities in its telephone service area.
    ``(g) Time and Manner of Compliance.--The State shall establish, 
after determining pursuant to subsection (f) that a bona fide request 
is not economically burdensome, is technologically feasible, and is 
consistent with subsections (b)(1) through (b)(5), (c)(1), and (c)(3) 
of section 247, an implementation schedule for compliance with such 
approved bona fide request that is consistent in time and manner with 
Commission rules.
    ``(h) Avoidance of Redundant Regulations.--
            ``(1) Commission regulations.--Nothing in this section 
        shall be construed to prohibit the Commission from enforcing 
        regulations prescribed prior to the date of enactment of this 
        part in fulfilling the requirements of this section, to the 
        extent that such regulations are consistent with the provisions 
        of this section.
            ``(2) State regulations.--Nothing in this section shall be 
        construed to prohibit any State commission from enforcing 
        regulations prescribed prior to the date of enactment of this 
        part, or from prescribing regulations after such date of 
        enactment, in fulfilling the requirements of this section, if 
        (A) such regulations are consistent with the provisions of this 
        section, and (B) the enforcement of such regulations has not 
        been precluded under subsection (b)(4)(B).

``SEC. 243. REMOVAL OF BARRIERS TO ENTRY.

    (a) In General.--No State or local statute or regulation, or other 
State or local legal requirement, may prohibit or have the effect of 
prohibiting the ability of any entity to provide interstate or 
intrastate telecommunications services.
    (b) State and Local Authority.--Nothing in this section shall 
affect the ability of a State or local government to impose, on a 
competitively neutral basis and consistent with section 247 (relating 
to universal service), requirements necessary to preserve and advance 
universal service, protect the public safety and welfare, ensure the 
continued quality of telecommunications services, and safeguard the 
rights of consumers.
    (c) Local Government Authority.--Nothing in this Act affects the 
authority of a local government to manage the public rights-of-way or 
to require fair and reasonable compensation from telecommunications 
providers, on a competitively neutral and nondiscriminatory basis, for 
use of the rights-of-way on a nondiscriminatory basis, if the 
compensation required is publicly disclosed by such government.
    (d) Exception.--In the case of commercial mobile services, the 
provisions of section 332(c)(3) shall apply in lieu of the provisions 
of this section.

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

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

``SEC. 245. BELL OPERATING COMPANY ENTRY INTO INTERLATA SERVICES.

    ``(a) Verification of Access and Interconnection Compliance.--At 
any time after 6 months after the date of enactment of this part, a 
Bell operating company may provide to the Commission verification by 
such company with respect to one or more States that such company is in 
compliance with the requirements of this part. Such verification shall 
contain the following:
            ``(1) Certification.--A certification by each State 
        commission of such State or States that such carrier has fully 
        implemented the conditions described in subsection (b), except 
        as provided in subsection (c)(2).
            ``(2) Agreement or statement.--For each such State, either 
        of the following:
                    ``(A) Presence of a facilities-based competitor.--
                An agreement that has been approved under section 244 
                specifying the terms and conditions under which the 
                Bell operating company is providing access and 
                interconnection to its network facilities in accordance 
                with section 242 for the network facilities of an 
                unaffiliated competing provider of telephone exchange 
                service (as defined in section 3(44)(A), but excluding 
                exchange access service) to residential and business 
                subscribers. For the purpose of this subparagraph, such 
                telephone exchange service may be offered by such 
                competing provider either exclusively over its own 
                telephone exchange service facilities or predominantly 
                over its own telephone exchange service facilities in 
                combination with the resale of the services of another 
                carrier. For the purpose of this subparagraph, services 
                provided pursuant to subpart K of part 22 of the 
                Commission's regulations (47 C.F.R. 22.901 et seq.) 
                shall not be considered to be telephone exchange 
                services.
                    ``(B) Failure to request access.--If no such 
                provider has requested such access and interconnection 
                before the date which is 3 months before the date the 
                company makes its submission under this subsection, a 
                statement of the terms and conditions that the carrier 
                generally offers to provide such access and 
                interconnection that has been approved or permitted to 
                take effect by the State commission under section 244.
        For purposes of subparagraph (B), a Bell operating company 
        shall be considered not to have received any request for access 
        or interconnection if the State commission of such State or 
        States certifies that the only provider or providers making 
        such request have (i) failed to bargain in good faith under the 
        supervision of such State commission pursuant to section 
        242(a)(8), or (ii) have violated the terms of their agreement 
        by failure to comply, within a reasonable period of time, with 
        the implementation schedule contained in such agreement.
    ``(b) Certification of Compliance With Part II.--For the purposes 
of subsection (a)(1), a Bell operating company shall submit to the 
Commission a certification by a State commission of compliance with 
each of the following conditions in any area where such company 
provides local exchange service or exchange access in such State:
            ``(1) Interconnection.--The Bell operating company provides 
        access and interconnection in accordance with subsections 
        (a)(1) and (b) of section 242 to any other carrier or person 
        offering telecommunications services requesting such access and 
        interconnection, and complies with the Commission regulations 
pursuant to such section concerning such access and interconnection.
            ``(2) Unbundling of network elements.--The Bell operating 
        company provides unbundled services, elements, features, 
        functions, and capabilities in accordance with subsection 
        (a)(2) of section 242 and the regulations prescribed by the 
        Commission pursuant to such section.
            ``(3) Resale.--The Bell operating company offers services, 
        elements, features, functions, and capabilities for resale in 
        accordance with section 242(a)(3), and neither the Bell 
        operating company, nor any unit of State or local government 
        within the State, imposes any restrictions on resale or sharing 
        of telephone exchange service (or unbundled services, elements, 
        features, or functions of telephone exchange service) in 
        violation of section 242(a)(3).
            ``(4) Number portability.--The Bell operating company 
        provides number portability in compliance with the Commission's 
        regulations pursuant to subsections (a)(4) and (c) of section 
        242.
            ``(5) Dialing parity.--The Bell operating company provides 
        dialing parity in accordance with subsections (a)(5) and (c) of 
        section 242, and will, not later than the effective date of its 
        authority to commence providing interLATA services, take such 
        actions as are necessary to provide dialing parity for 
        intraLATA telephone toll service in accordance with such 
        subsections.
            ``(6) Access to conduits and rights of way.--The poles, 
        ducts, conduits, and rights of way of such Bell operating 
        company are available to competing providers of 
        telecommunications services in accordance with the requirements 
        of sections 242(a)(6) and 224(d).
            ``(7) Elimination of franchise limitations.--No unit of the 
        State or local government in such State or States enforces any 
        prohibition or limitation in violation of section 243.
            ``(8) Network functionality and accessibility.--The Bell 
        operating company will not install network features, functions, 
        or capabilities that do not comply with the standards 
        established pursuant to section 249.
            ``(9) Negotiation of terms and conditions.--The Bell 
        operating company has negotiated in good faith, under the 
        supervision of the State commission, in accordance with the 
        requirements of section 242(a)(8) with any other carrier or 
        person requesting access or interconnection.
    ``(c) Commission Review.--
            ``(1) Review of state decisions and certifications.--The 
        Commission shall review any verification submitted by a Bell 
        operating company pursuant to subsection (a). The Commission 
        may require such company to submit such additional information 
        as is necessary to validate any of the items of such 
        verification.
            ``(2) De novo review.--If--
                    ``(A) a State commission does not have the 
                jurisdiction or authority to make the certification 
                required by subsection (b);
                    ``(B) the State commission has failed to act within 
                90 days after the date a request for such certification 
                is filed with such State commission; or
                    ``(C) the State commission has sought to impose a 
                term or condition in violation of section 243;
        the local exchange carrier may request the Commission to 
        certify the carrier's compliance with the conditions specified 
        in subsection (b).
            ``(3) Consultation with the attorney general.--The 
        Commission shall notify the Attorney General promptly of any 
        verification submitted for approval under this subsection, and 
        shall identify any verification that, if approved, would 
        relieve the Bell operating company and its affiliates of the 
        prohibition concerning manufacturing contained in section 
        271(a). Before making any determination under this subsection, 
        the Commission shall consult with the Attorney General, and if 
        the Attorney General submits any comments in writing, such 
        comments shall be included in the record of the Commission's 
        decision. In consulting with and submitting comments to the 
        Commission under this paragraph, the Attorney General shall 
        provide to the Commission an evaluation of whether there is a 
        dangerous probability that the Bell operating company or its 
        affiliates would successfully use market power to substantially 
        impede competition in the market such company seeks to enter. 
        In consulting with and submitting comments to the Commission 
        under this paragraph with respect to a verification that, if 
        approved, would relieve the Bell operating company and its 
        affiliates of the prohibition concerning manufacturing 
        contained in section 271(a), the Attorney General shall also 
        provide to the Commission an evaluation of whether there is a 
        dangerous probability that the Bell operating company or its 
        affiliates would successfully use market power to substantially 
        impede competition in manufacturing.
            ``(4) Time for decision; public comment.--Unless such Bell 
        operating company consents to a longer period of time, the 
        Commission shall approve, disapprove, or approve with 
        conditions such verification within 90 days after the date of 
        its submission. During such 90 days, the Commission shall 
        afford interested persons an opportunity to present information 
        and evidence concerning such verification.
            ``(5) Standard for decision.--The Commission shall not 
        approve such verification unless the Commission determines 
        that--
                    ``(A) the Bell operating company meets each of the 
                conditions required to be certified under subsection 
                (b); and
                    ``(B) the agreement or statement submitted under 
                subsection (a)(2) complies with the requirements of 
                section 242 and the regulations thereunder.
    ``(d) Enforcement of Conditions.--
            ``(1) Commission authority.--If at any time after the 
        approval of a verification under subsection (c), the Commission 
        determines that a Bell operating company has ceased to meet any 
        of the conditions required to be certified under subsection 
        (b), the Commission may, after notice and opportunity for a 
        hearing--
                    ``(A) issue an order to such company to correct the 
                deficiency;
                    ``(B) impose a penalty on such company pursuant to 
                title V; or
                    ``(C) suspend or revoke such approval.
            ``(2) Receipt and review of complaints.--The Commission 
        shall establish procedures for the review of complaints 
        concerning failures by Bell operating companies to meet 
        conditions required to be certified under subsection (b). 
        Unless the parties otherwise agree, the Commission shall act on 
        such complaint within 90 days.
            ``(3) State authority.--The authority of the Commission 
        under this subsection shall not be construed to preempt any 
        State commission from taking actions to enforce the conditions 
        required to be certified under subsection (b).
    ``(e) Authority To Provide InterLATA Services.--
            ``(1) Prohibition.--Except as provided in paragraph (2) and 
        subsections (f), (g), and (h), a Bell operating company or 
        affiliate thereof may not provide interLATA services.
            ``(2) Authority subject to certification.--A Bell operating 
        company or affiliate thereof may, in any States to which its 
        verification under subsection (a) applies, provide interLATA 
        services--
                    ``(A) during any period after the effective date of 
                the Commission's approval of such verification pursuant 
                to subsection (c), and
                    ``(B) until the approval of such verification is 
                suspended or revoked by the Commission pursuant to 
                subsection (c).
    ``(f) Exception for Previously Authorized Activities.--Subsection 
(e) shall not prohibit a Bell operating company or affiliate from 
engaging, at any time after the date of the enactment of this part, in 
any activity as authorized by an order entered by the United States 
District Court for the District of Columbia pursuant to section VII or 
VIII(C) of the Modification of Final Judgment, if--
            ``(1) such order was entered on or before the date of the 
        enactment of this part, or
            ``(2) a request for such authorization was pending before 
        such court on the date of the enactment of this part.
    ``(g) Exceptions for Incidental Services.--Subsection (e) shall not 
prohibit a Bell operating company or affiliate thereof, at any time 
after the date of the enactment of this part, from providing interLATA 
services for the purpose of--
            ``(1)(A) providing audio programming, video programming, or 
        other programming services to subscribers to such services of 
        such company;
            ``(B) providing the capability for interaction by such 
        subscribers to select or respond to such audio programming, 
        video programming, or other programming services; or
            ``(C) providing to distributors audio programming or video 
        programming that such company owns or controls, or is licensed 
        by the copyright owner of such programming (or by an assignee 
        of such owner) to distribute;
            ``(2) providing a telecommunications service, using the 
        transmission facilities of a cable system that is an affiliate 
        of such company, and that is located within a State in which 
        such company is not, on the date of the enactment of this part, 
        a provider of wireline telephone exchange service;
            ``(3) providing commercial mobile services in accordance 
        with section 332(c) of this Act and with the regulations 
        prescribed by the Commission pursuant to paragraph (8) of such 
        section;
            ``(4) providing a service that permits a customer that is 
        located in one local access and transport area to retrieve 
        stored information from, or file information for storage in, 
        information storage facilities of such company that are located 
        in another local access and transport area;
            ``(5) providing signaling information used in connection 
        with the provision of telephone exchange services to a local 
        exchange carrier that, together with any affiliated local 
        exchange carriers, has aggregate annual revenues of less than 
        $100,000,000; or
            ``(6) providing network control signaling information to, 
        and receiving such signaling information from, common carriers 
        offering interLATA services at any location within the area in 
        which such Bell operating company provides telephone exchange 
        services or exchange access.
    ``(h) Out-of-Region Services.--When a Bell operating company and 
its affiliates have obtained Commission approval under subsection (c) 
for each State in which such Bell operating company and its affiliates 
provide telephone exchange service on the date of enactment of this 
part, such Bell operating company and any affiliate thereof may, 
notwithstanding subsection (e), provide interLATA services--
            ``(1) for calls originating in, and billed to a customer 
        in, a State in which neither such company nor any affiliate 
        provided telephone exchange service on such date of enactment; 
        or
            ``(2) for calls originating outside the United States.
    ``(i) IntraLATA Toll Dialing Parity.--Neither the Commission nor 
any State may order any Bell operating company to provide dialing 
parity for intraLATA telephone toll service in any State before the 
date such company is authorized to provide interLATA services in such 
State pursuant to this section.
    ``(j) Forbearance.--The Commission may not, pursuant to section 
230, forbear from applying any provision of this section or any 
regulation thereunder until at least 5 years after the date of 
enactment of this part.
    ``(k) Sunset.--The provisions of this section shall cease to apply 
in any local exchange market, defined by geographic area and class or 
category of service, that the Commission and the State determines has 
become subject to full and open competition.
    ``(l) Definitions.--As used in this section--
            ``(1) Audio programming.--The term `audio programming' 
        means programming provided by, or generally considered 
        comparable to programming provided by, a radio broadcast 
        station.
            ``(2) Video programming.--The term `video programming' has 
        the meaning provided in section 602.
            ``(3) Other programming services.--The term `other 
        programming services' means information (other than audio 
        programming or video programming) that the person who offers a 
        video programming service makes available to all subscribers 
        generally. For purposes of the preceding sentence, the terms 
        `information' and `makes available to all subscribers 
        generally' have the same meaning such terms have under section 
        602(13) of this Act.

``SEC. 246. COMPETITIVE SAFEGUARDS.

    ``(a) In General.--In accordance with the requirements of this 
section and the regulations adopted thereunder, a Bell operating 
company or any affiliate thereof providing any interLATA 
telecommunications or interLATA information service, shall do so 
through a subsidiary that is separate from the Bell operating company 
or any affiliate thereof that provides telephone exchange service. The 
requirements of this section shall not apply with respect to (1) 
activities in which a Bell operating company or affiliate may engage 
pursuant to section 245(f), or (2) incidental services in which a Bell 
operating company or affiliate may engage pursuant to section 245(g), 
other than services described in paragraph (4) of such section.
    ``(b) Transaction Requirements.--Any transaction between such a 
subsidiary and a Bell operating company and any other affiliate of such 
company shall be conducted on an arm's-length basis, in the same manner 
as the Bell operating company conducts business with unaffiliated 
persons, and shall not be based upon any preference or discrimination 
in favor of the subsidiary arising out of the subsidiary's affiliation 
with such company.
    ``(c) Separate Operation and Property.--A subsidiary required by 
this section shall--
            ``(1) operate independently from the Bell operating company 
        or any affiliate thereof,
            ``(2) have separate officers, directors, and employees who 
        may not also serve as officers, directors, or employees of the 
Bell operating company or any affiliate thereof,
            ``(3) not enter into any joint venture activities or 
        partnership with a Bell operating company or any affiliate 
        thereof,
            ``(4) not own any telecommunications transmission or 
        switching facilities in common with the Bell operating company 
        or any affiliate thereof, and
            ``(5) not jointly own or share the use of any other 
        property with the Bell operating company or any affiliate 
        thereof.
    ``(d) Books, Records, and Accounts.--Any subsidiary required by 
this section shall maintain books, records, and accounts in a manner 
prescribed by the Commission which shall be separate from the books, 
records, and accounts maintained by a Bell operating company or any 
affiliate thereof.
    ``(e) Provision of Services and Information.--A Bell operating 
company or any affiliate thereof may not discriminate between a 
subsidiary required by this section and any other person in the 
provision or procurement of goods, services, facilities, or 
information, or in the establishment of standards, and shall not 
provide any goods, services, facilities or information to a subsidiary 
required by this section unless such goods, services, facilities or 
information are made available to others on reasonable, 
nondiscriminatory terms and conditions.
    ``(f) Prevention of Cross-Subsidies.--A Bell operating company or 
any affiliate thereof required to maintain a subsidiary under this 
section shall establish and administer, in accordance with the 
requirements of this section and the regulations prescribed thereunder, 
a cost allocation system that prohibits any cost of providing interLATA 
telecommunications or interLATA information services from being 
subsidized by revenue from telephone exchange services and telephone 
exchange access services. The cost allocation system shall employ a 
formula that ensures that--
            ``(1) the rates for telephone exchange services and 
        exchange access are no greater than they would have been in the 
        absence of such investment in interLATA telecommunications or 
        interLATA information services (taking into account any decline 
        in the real costs of providing such telephone exchange services 
        and exchange access); and
            ``(2) such interLATA telecommunications or interLATA 
        information services bear a reasonable share of the joint and 
        common costs of facilities used to provide telephone exchange, 
        exchange access, and competitive services.
    ``(g) Assets.--The Commission shall, by regulation, ensure that the 
economic risks associated with the provision of interLATA 
telecommunications or interLATA information services by a Bell 
operating company or any affiliate thereof (including any increases in 
such company's cost of capital that occur as a result of the provision 
of such services) are not borne by customers of telephone exchange 
services and exchange access in the event of a business loss or 
failure. Investments or other expenditures assigned to interLATA 
telecommunications or interLATA information services shall not be 
reassigned to telephone exchange service or exchange access.
    ``(h) Debt.--A subsidiary required by this section shall not obtain 
credit under any arrangement that would--
            ``(1) permit a creditor, upon default, to have resource to 
        the assets of a Bell operating company; or
            ``(2) induce a creditor to rely on the tangible or 
        intangible assets of a Bell operating company in extending 
        credit.
    ``(i) Fulfillment of Certain Requests.--A Bell operating company or 
an affiliate thereof shall--
            ``(1) fulfill any requests from an unaffiliated entity for 
        telephone exchange service and exchange access within a period 
        no longer than the period in which it provides such telephone 
        exchange service and exchange access to itself or to its 
        affiliates;
            ``(2) fulfill any such requests with telephone exchange 
        service and exchange access of a quality that meets or exceeds 
        the quality of telephone exchange services and exchange access 
        provided by the Bell operating company or its affiliates to 
        itself or its affiliates; and
            ``(3) provide telephone exchange service and exchange 
        access to all providers of intraLATA or interLATA telephone 
        toll services and interLATA information services at cost-based 
        rates that are not unreasonably discriminatory.
    ``(j) Charges for Access Services.--A Bell operating company or an 
affiliate thereof shall charge the subsidiary required by this section 
an amount for telephone exchange services, exchange access, and other 
necessary associated inputs no less than the rate charged to any 
unaffiliated entity for such access and inputs.
    ``(k) Sunset.--The provisions of this section shall cease to apply 
to any Bell operating company in any State 18 months after the date 
such Bell operating company is authorized pursuant to section 245(c) to 
provide interLATA telecommunications services in such State.

``SEC. 247. UNIVERSAL SERVICE.

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

``SEC. 248. PRICING FLEXIBILITY AND ABOLITION OF RATE-OF-RETURN 
              REGULATION.

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

``SEC. 249. NETWORK FUNCTIONALITY AND ACCESSIBILITY.

    ``(a) Functionality and Accessibility.--The duty of a common 
carrier under section 201(a) to furnish communications service includes 
the duty to furnish that service in accordance with any standards 
established pursuant to this section.
    ``(b) Coordination for Interconnectivity.--The Commission--
            ``(1) shall establish procedures for Commission oversight 
        of coordinated network planning by common carriers and other 
        providers of telecommunications services for the effective and 
        efficient interconnection of public switched networks; and
            ``(2) may participate, in a manner consistent with its 
        authority and practice prior to the date of enactment of this 
        section, in the development by appropriate industry standards-
        setting organizations of interconnection standards that promote 
        access to--
                    ``(A) network capabilities and services by 
                individuals with disabilities; and
                    ``(B) information services by subscribers to 
                telephone exchange service furnished by a rural 
                telephone company.
    ``(c) Accessibility for Individuals With Disabilities.--
            ``(1) Accessibility.--Within 1 year after the date of 
        enactment of this section, the Commission shall prescribe such 
        regulations as are necessary to ensure that, if readily 
        achievable, advances in network services deployed by common 
        carriers, and telecommunications equipment and customer 
        premises equipment manufactured for use in conjunction with 
        network services, shall be accessible and usable by individuals 
        with disabilities, including individuals with functional 
        limitations of hearing, vision, movement, manipulation, speech, 
        and interpretation of information. Such regulations shall 
        permit the use of both standard and special equipment, and seek 
        to minimize the need of individuals to acquire additional 
        devices beyond those used by the general public to obtain such 
        access. Throughout the process of developing such regulations, 
        the Commission shall coordinate and consult with 
        representatives of individuals with disabilities and interested 
        equipment and service providers to ensure their concerns and 
        interests are given full consideration in such process.
            ``(2) Compatibility.--Such regulations shall require that 
        whenever the requirements of paragraph (1) are not readily 
        achievable, 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 is not readily 
        achievable.
            ``(3) Readily Achieveable.--The term `readily achievable' 
        has the meaning given it by section 301(g) of the Americans 
        with Disabilities Act 1990 (42 U.S.C. 12102(g)).
            ``(4) Effective date.--The regulations required by this 
        subsection shall become effective 18 months after the date of 
        enactment of this part.
    ``(d) Private Rights of Actions Prohibited.--Nothing in this 
section shall be construed to authorize any private right of action to 
enforce any requirement of this section or any regulation thereunder. 
The Commission shall have exclusive jurisdiction with respect to any 
complaint under this section.

``SEC. 250. MARKET ENTRY BARRIERS.

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

``SEC. 251. ILLEGAL CHANGES IN SUBSCRIBER CARRIER SELECTIONS.

    ``(a) Prohibition .--No common carrier shall submit or execute a 
change in a subscriber's selection of a provider of telephone exchange 
service or telephone toll service except in accordance with such 
verification procedures as the Commission shall prescribe. Nothing in 
this section shall preclude any State commission from enforcing such 
procedures with respect to intrastate services.
    ``(b) Liability for Charges.--Any common carrier that violates the 
verification procedures described in subsection (a) and that collects 
charges for telephone exchange service or telephone toll service from a 
subscriber shall be liable to the carrier previously selected by the 
subscriber in an amount equal to all charges paid by such subscriber 
after such violation, in accordance with such procedures as the 
Commission may prescribe. The remedies provided by this subsection are 
in addition to any other remedies available by law.

``SEC. 252. STUDY.

    ``Within 3 years after the date of enactment of this part, the 
Commission shall conduct a study that--
            ``(1) reviews the definition of, and the adequacy of 
        support for, universal service, and evaluates the extent to 
        which universal service has been protected and access to 
        advanced services has been facilitated pursuant to this part 
        and the plans and regulations thereunder;
            ``(2) evaluates the extent to which access to advanced 
        telecommunications services for students in elementary and 
        secondary school classrooms has been attained pursuant to 
        section 247(b)(5); and
            ``(3) determines whether the regulations established under 
        section 249(c) have ensured that advances in network services 
        by providers of telecommunications services and information 
        services are accessible and usable by individuals with 
        disabilities.''.
    (b) Consolidated Rulemaking Proceeding.--The Commission shall 
conduct a single consolidated rulemaking proceeding to prescribe or 
amend regulations necessary to implement the requirements of--
            (1) part II of title II of the Act as added by subsection 
        (a) of this section;
            (2) section 222 as amended by section 104 of this Act; and
            (3) section 224 as amended by section 105 of this Act.
    (c) Designation of Part I.--Title II of the Act is further amended 
by inserting before the heading of section 201 the following new 
heading:

          ``PART I--REGULATION OF DOMINANT COMMON CARRIERS''.

    (d) Sylistic Consistency.--The Act is amended so that--
            (1) the designation and heading of each title of the Act 
        shall be in the form and typeface of the designation and 
        heading of this title of this Act; and
            (2) the designation and heading of each part of each title 
        of the Act shall be in the form and typeface of the designation 
        and heading of part I of title II of the Act, as amended by 
        subsection (c).
    (e) Conforming Amendments.--
            (1) Federal-state jurisdiction.--Section 2(b) of the Act 
        (47 U.S.C. 152(b)) is amended by inserting ``part II of title 
        II,'' after ``227, inclusive,''.
            (2) Forfeitures.--Sections 503(b)(1) and 504(b) of such Act 
        (47 U.S.C. 503(b)) are each amended by inserting ``part I of'' 
        before ``title II''.

SEC. 102. COMPETITION IN MANUFACTURING, INFORMATION SERVICES, ALARM 
              SERVICES, AND PAY-PHONE SERVICES.

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

              ``PART III--SPECIAL AND TEMPORARY PROVISIONS

``SEC. 271. MANUFACTURING BY BELL OPERATING COMPANIES.

    ``(a) Limitations on Manufacturing.--
            ``(1) Access and interconnection required.--It shall be 
        unlawful for a Bell operating company, directly or through an 
        affiliate, to manufacture telecommunications equipment or 
        customer premises equipment, until the Commission has approved 
        under section 245(c) verifications that such Bell operating 
        company, and each Bell operating company with which it is 
        affiliated, are in compliance with the access and 
        interconnection requirements of part II of this title.
            ``(2) Separate subsidiary required.--During the first 18 
        months after the expiration of the limitation contained in 
        paragraph (1), a Bell operating company may engage in 
        manufacturing telecommunications equipment or customer premises 
        equipment only through a separate subsidiary established and 
        operated in accordance with section 246.
    ``(b) Collaboration; Research and Royalty Agreements.--
            ``(1) Collaboration.--Subsection (a) shall not prohibit a 
        Bell operating company from engaging in close collaboration 
        with any manufacturer of customer premises equipment or 
        telecommunications equipment during the design and development 
        of hardware, software, or combinations thereof related to such 
        equipment.
            ``(2) Research; royalty agreements.--Subsection (a) shall 
        not prohibit a Bell operating company, directly or through an 
        subsidiary, from--
                    ``(A) engaging in any research activities related 
                to manufacturing, and
                    ``(B) entering into royalty agreements with 
                manufacturers of telecommunications equipment.
    ``(c) Information Requirements.--
            ``(1) Information on protocols and technical 
        requirements.--Each Bell operating company shall, in accordance 
        with regulations prescribed by the Commission, maintain and 
        file with the Commission full and complete information with 
        respect to the protocols and technical requirements for 
        connection with and use of its telephone exchange service 
        facilities. Each such company shall report promptly to the 
        Commission any material changes or planned changes to such 
        protocols and requirements, and the schedule for implementation 
        of such changes or planned changes.
            ``(2) Disclosure of information.--A Bell operating company 
        shall not disclose any information required to be filed under 
        paragraph (1) unless that information has been filed promptly, 
        as required by regulation by the Commission.
            ``(3) Access by competitors to information.--The Commission 
        may prescribe such additional regulations under this subsection 
        as may be necessary to ensure that manufacturers have access to 
        the information with respect to the protocols and technical 
        requirements for connection with and use of telephone exchange 
        service facilities that a Bell operating company makes 
        available to any manufacturing affiliate or any unaffiliated 
        manufacturer.
            ``(4) Planning information.--Each Bell operating company 
        shall provide, to contiguous common carriers providing 
        telephone exchange service, timely information on the planned 
        deployment of telecommunications equipment.
    ``(d) Manufacturing Limitations for Standard-Setting 
Organizations.--
            ``(1) Application to bell communications research or 
        manufacturers.--Bell Communications Research, Inc., or any 
        successor entity or affiliate--
                    ``(A) shall not be considered a Bell operating 
                company or a successor or assign of a Bell operating 
                company at such time as it is no longer an affiliate of 
                any Bell operating company; and
                    ``(B) notwithstanding paragraph (3), shall not 
                engage in manufacturing telecommunications equipment or 
                customer premises equipment as long as it is an 
                affiliate of more than 1 otherwise unaffiliated Bell 
                operating company or successor or assign of any such 
                company.
        Nothing in this subsection prohibits Bell Communications 
        Research, Inc., or any successor entity, from engaging in any 
        activity in which it is lawfully engaged on the date of 
        enactment of this subsection. Nothing provided in this 
        subsection shall render Bell Communications Research, Inc., or 
        any successor entity, a common carrier under title II of this 
        Act. Nothing in this section restricts any manufacturer from 
        engaging in any activity in which it is lawfully engaged on the 
        date of enactment of this section.
            ``(2) Proprietary information.--Any entity which 
        establishes standards for telecommunications equipment or 
        customer premises equipment, or generic network requirements 
        for such equipment, or certifies telecommunications equipment, 
        or customer premises equipment, shall be prohibited from 
        releasing or otherwise using any proprietary information, 
        designated as such by its owner, in its possession as a result 
        of such activity, for any purpose other than purposes 
        authorized in writing by the owner of such information, even 
        after such entity ceases to be so engaged.
            ``(3) Manufacturing safeguards.--(A) Except as prohibited 
        in paragraph (1), and subject to paragraph (6), any entity 
        which certifies telecommunications equipment or customer 
        premises equipment manufactured by an unaffiliated entity shall 
        only manufacture a particular class of telecommunications 
        equipment or customer premises equipment for which it is 
        undertaking or has undertaken, during the previous 18 months, 
        certification activity for such class of equipment through a 
        separate affiliate.
            ``(B) Such separate affiliate shall--
                    ``(i) maintain books, records, and accounts 
                separate from those of the entity that certifies such 
                equipment, consistent with generally acceptable 
                accounting principles;
                    ``(ii) not engage in any joint manufacturing 
                activities with such entity; and
                    ``(iii) have segregated facilities and separate 
                employees with such entity.
            ``(C) Such entity that certifies such equipment shall--
                    ``(i) not discriminate in favor of its 
                manufacturing affiliate in the establishment of 
                standards, generic requirements, or product 
                certification;
                    ``(ii) not disclose to the manufacturing affiliate 
                any proprietary information that has been received at 
                any time from an unaffiliated manufacturer, unless 
                authorized in writing by the owner of the information; 
                and
                    ``(iii) not permit any employee engaged in product 
                certification for telecommunications equipment or 
                customer premises equipment to engage jointly in sales 
                or marketing of any such equipment with the affiliated 
                manufacturer.
            ``(4) Standard-setting entities.--Any entity which is not 
        an accredited standards development organization and which 
        establishes industry-wide standards for telecommunications 
        equipment or customer premises equipment, or industry-wide 
        generic network requirements for such equipment, or which 
        certifies telecommunications equipment or customer premises 
        equipment manufactured by an unaffiliated entity, shall--
                    ``(A) establish and publish any industry-wide 
                standard for, industry-wide generic requirement for, or 
                any substantial modification of an existing industry-
                wide standard or industry-wide generic requirement for, 
                telecommunications equipment or customer premises 
                equipment only in compliance with the following 
                procedure:
                            ``(i) such entity shall issue a public 
                        notice of its consideration of a proposed 
                        industry-wide standard or industry-wide generic 
                        requirement;
                            ``(ii) such entity shall issue a public 
                        invitation to interested industry parties to 
                        fund and participate in such efforts on a 
                        reasonable and nondiscriminatory basis, 
                        administered in such a manner as not to 
                        unreasonably exclude any interested industry 
                        party;
                            ``(iii) such entity shall publish a text 
                        for comment by such parties as have agreed to 
                        participate in the process pursuant to clause 
                        (ii), provide such parties a full opportunity 
                        to submit comments, and respond to comments 
                        from such parties;
                            ``(iv) such entity shall publish a final 
                        text of the industry-wide standard or industry-
                        wide generic requirement, including the 
                        comments in their entirety, of any funding 
                        party which requests to have its comments so 
                        published; and
                            ``(v) such entity shall attempt, prior to 
                        publishing a text for comment, to agree with 
                        the funding parties as a group on a mutually 
                        satisfactory dispute resolution process which 
                        such parties shall utilize as their sole 
                        recourse in the event of a dispute on technical 
                        issues as to which there is disagreement 
                        between any funding party and the entity 
                        conducting such activities, except that if no 
                        dispute resolution process is agreed to by all 
                        the parties, a funding party may utilize the 
                        dispute resolution procedures established 
                        pursuant to paragraph (5) of this subsection;
                    ``(B) engage in product certification for 
                telecommunications equipment or customer premises 
                equipment manufactured by unaffiliated entities only 
                if--
                            ``(i) such activity is performed pursuant 
                        to published criteria;
                            ``(ii) such activity is performed pursuant 
                        to auditable criteria; and
                            ``(iii) such activity is performed pursuant 
                        to available industry-accepted testing methods 
                        and standards, where applicable, unless 
                        otherwise agreed upon by the parties funding 
                        and performing such activity;
                    ``(C) not undertake any actions to monopolize or 
                attempt to monopolize the market for such services; and
                    ``(D) not preferentially treat its own 
                telecommunications equipment or customer premises 
                equipment, or that of its affiliate, over that of any 
                other entity in establishing and publishing industry-
                wide standards or industry-wide generic requirements 
                for, and in certification of, telecommunications 
                equipment and customer premises equipment.
            ``(5) Alternate dispute resolution.--Within 90 days after 
        the date of enactment of this section, the Commission shall 
        prescribe a dispute resolution process to be utilized in the 
        event that a dispute resolution process is not agreed upon by 
        all the parties when establishing and publishing any industry-
        wide standard or industry-wide generic requirement for 
        telecommunications equipment or customer premises equipment, 
        pursuant to paragraph (4)(A)(v). The Commission shall not 
        establish itself as a party to the dispute resolution process. 
        Such dispute resolution process shall permit any funding party 
        to resolve a dispute with the entity conducting the activity 
        that significantly affects such funding party's interests, in 
        an open, nondiscriminatory, and unbiased fashion, within 30 
        days after the filing of such dispute. Such disputes may be 
        filed within 15 days after the date the funding party receives 
        a response to its comments from the entity conducting the 
        activity. The Commission shall establish penalties to be 
        assessed for delays caused by referral of frivolous disputes to 
        the dispute resolution process. The overall intent of 
        establishing this dispute resolution provision is to enable all 
        interested funding parties an equal opportunity to influence 
        the final resolution of the dispute without significantly 
        impairing the efficiency, timeliness, and technical quality of 
        the activity.
            ``(6) Sunset.--The requirements of paragraphs (3) and (4) 
        shall terminate for the particular relevant activity when the 
        Commission determines that there are alternative sources of 
        industry-wide standards, industry-wide generic requirements, or 
        product certification for a particular class of 
        telecommunications equipment or customer premises equipment 
        available in the United States. Alternative sources shall be 
        deemed to exist when such sources provide commercially viable 
        alternatives that are providing such services to customers. The 
        Commission shall act on any application for such a 
        determination within 90 days after receipt of such application, 
        and shall receive public comment on such application.
            ``(7) Administration and enforcement authority.--For the 
        purposes of administering this subsection and the regulations 
        prescribed thereunder, the Commission shall have the same 
        remedial authority as the Commission has in administering and 
        enforcing the provisions of this title with respect to any 
        common carrier subject to this Act.
            ``(8) Definitions.--For purposes of this subsection:
                    ``(A) The term `affiliate' shall have the same 
                meaning as in section 3 of this Act, except that, for 
                purposes of paragraph (1)(B)--
                            ``(i) an aggregate voting equity interest 
                        in Bell Communications Research, Inc., of at 
                        least 5 percent of its total voting equity, 
                        owned directly or indirectly by more than 1 
                        otherwise unaffiliated Bell operating company, 
                        shall constitute an affiliate relationship; and
                            ``(ii) a voting equity interest in Bell 
                        Communications Research, Inc., by any otherwise 
                        unaffiliated Bell operating company of less 
                        than 1 percent of Bell Communications 
                        Research's total voting equity shall not be 
                        considered to be an equity interest under this 
                        paragraph.
                    ``(B) The term `generic requirement' means a 
                description of acceptable product attributes for use by 
                local exchange carriers in establishing product 
                specifications for the purchase of telecommunications 
                equipment, customer premises equipment, and software 
                integral thereto.
                    ``(C) The term `industry-wide' means activities 
                funded by or performed on behalf of local exchange 
                carriers for use in providing wireline local exchange 
                service whose combined total of deployed access lines 
                in the United States constitutes at least 30 percent of 
                all access lines deployed by telecommunications 
                carriers in the United States as of the date of 
                enactment.
                    ``(D) The term `certification' means any technical 
                process whereby a party determines whether a product, 
                for use by more than one local exchange carrier, 
                conforms with the specified requirements pertaining to 
                such product.
                    ``(E) The term `accredited standards development 
                organization' means an entity composed of industry 
                members which has been accredited by an institution 
                vested with the responsibility for standards 
                accreditation by the industry.
    ``(e) Bell Operating Company Equipment Procurement and Sales.--
            ``(1) Objective basis.--Each Bell operating company and any 
        entity acting on behalf of a Bell operating company shall make 
        procurement decisions and award all supply contracts for 
        equipment, services, and software on the basis of an objective 
        assessment of price, quality, delivery, and other commercial 
        factors.
            ``(2) Sales restrictions.--A Bell operating company engaged 
        in manufacturing may not restrict sales to any local exchange 
        carrier of telecommunications equipment, including software 
        integral to the operation of such equipment and related 
        upgrades.
            ``(3) Protection of proprietary information.--A Bell 
        operating company and any entity it owns or otherwise controls 
        shall protect the proprietary information submitted for 
        procurement decisions from release not specifically authorized 
        by the owner of such information.
    ``(f) Administration and Enforcement Authority.--For the purposes 
of administering and enforcing the provisions of this section and the 
regulations prescribed thereunder, the Commission shall have the same 
authority, power, and functions with respect to any Bell operating 
company or any affiliate thereof as the Commission has in administering 
and enforcing the provisions of this title with respect to any common 
carrier subject to this Act.
    ``(g) Exception for Previously Authorized Activities.--Nothing in 
this section shall prohibit a Bell operating company or affiliate from 
engaging, at any time after the date of the enactment of this part, in 
any activity as authorized by an order entered by the United States 
District Court for the District of Columbia pursuant to section VII or 
VIII(C) of the Modification of Final Judgment, if--
            ``(1) such order was entered on or before the date of the 
        enactment of this part, or
            ``(2) a request for such authorization was pending before 
        such court on the date of the enactment of this part.
    ``(h) Antitrust Laws.--Nothing in this section shall be construed 
to modify, impair, or supersede the applicability of any of the 
antitrust laws.
    ``(i) Definition.--As used in this section, the term 
`manufacturing' has the same meaning as such term has under the 
Modification of Final Judgment.

``SEC. 272. ELECTRONIC PUBLISHING BY BELL OPERATING COMPANIES.

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

``SEC. 273. ALARM MONITORING AND TELEMESSAGING SERVICES BY BELL 
              OPERATING COMPANIES.

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

``SEC. 274. PROVISION OF PAYPHONE SERVICE.

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

SEC. 103. FORBEARANCE FROM REGULATION.

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

``SEC. 230. FORBEARANCE FROM REGULATION.

    ``(a) Authority to Forbear.--The Commission shall forbear from 
applying any provision of this part or part II (other than sections 
201, 202, 208, 243, and 248), or any regulation of the Commission 
thereunder, to a common carrier or service, or class of carriers or 
services, in any or some of its or their geographic markets, unless the 
Commission determines that--
            ``(1) enforcement of such provision or regulation is 
        necessary to ensure that the charges, practices, 
        classifications, or regulations by, for, or in connection with 
that carrier or service are just and reasonable and are not unjustly or 
unreasonably discriminatory;
            ``(2) enforcement of such regulation or provision is not 
        necessary for the protection of consumers; or
            ``(3) forbearance from applying such provision or 
        regulation is inconsistent with the public interest.
    ``(b) Competitive Effect To Be Weighed.--In making the 
determination under subsection (a)(3), the Commission shall consider 
whether forbearance from enforcing the provision or regulation will 
promote competitive market conditions, including the extent to which 
such forbearance will enhance competition among providers of 
telecommunications services. If the Commission determines that such 
forbearance will promote competition among providers of 
telecommunications services, that determination may be the basis for a 
Commission finding that forbearance is in the public interest.
    ``(c) Commercial Mobile Service Joint Marketing.--Notwithstanding 
section 22.903 of the Commission's regulations (47 C.F.R. 22.903) or 
any other Commission regulation, or any judicial decree or proposed 
judicial decree, a Bell operating company or any other company may, 
except as provided in sections 242(d) and 246 as they relate to 
wireline service, jointly market and sell commercial mobile services in 
conjunction with telephone exchange service, exchange access, intraLATA 
telecommunications service, interLATA telecommunications service, and 
information services.''.

SEC. 104. ONLINE FAMILY EMPOWERMENT.

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

``SEC. 230. PROTECTION FOR PRIVATE BLOCKING AND SCREENING OF OFFENSIVE 
              MATERIAL; FCC REGULATION OF COMPUTER SERVICES PROHIBITED.

    ``(a) Findings.--The Congress finds the following:
            ``(1) The rapidly developing array of Internet and other 
        interactive computer services available to individual Americans 
        represent an extraordinary advance in the availability of 
        educational and informational resources to our citizens.
            ``(2) These services offer users a great degree of control 
        over the information that they receive, as well as the 
        potential for even greater control in the future as technology 
        develops.
            ``(3) The Internet and other interactive computer services 
        offer a forum for a true diversity of political discourse, 
        unique opportunities for cultural development, and myriad 
        avenues for intellectual activity.
            ``(4) The Internet and other interactive computer services 
        have flourished, to the benefit of all Americans, with a 
        minimum of government regulation.
            ``(5) Increasingly Americans are relying on interactive 
        media for a variety of political, educational, cultural, and 
        entertainment services.
    ``(b) Policy.--It is the policy of the United States to--
            ``(1) promote the continued development of the Internet and 
        other interactive computer services and other interactive 
        media;
            ``(2) preserve the vibrant and competitive free market that 
        presently exists for the Internet and other interactive 
        computer services, unfettered by State or Federal regulation;
            ``(3) encourage the development of technologies which 
        maximize user control over the information received by 
        individuals, families, and schools who use the Internet and 
        other interactive computer services;
            ``(4) remove disincentives for the development and 
        utilization of blocking and filtering technologies that empower 
        parents to restrict their children's access to objectionable or 
        inappropriate online material; and
            ``(5) ensure vigorous enforcement of criminal laws to deter 
        and punish trafficking in obscenity, stalking, and harassment 
        by means of computer.
    ``(c) Protection for `Good Samaritan' Blocking and Screening of 
Offensive Material.--No provider or user of interactive computer 
services shall be treated as the publisher or speaker of any 
information provided by an information content provider. No provider or 
user of interactive computer services shall be held liable on account 
of--
            ``(1) any action voluntarily taken in good faith to 
        restrict access to material that the provider or user considers 
        to be obscene, lewd, lascivious, filthy, excessively violent, 
        harassing, or otherwise objectionable, whether or not such 
        material is constitutionally protected; or
            ``(2) any action taken to make available to information 
        content providers or others the technical means to restrict 
        access to material described in paragraph (1).
    ``(d) FCC Regulation of the Internet and Other Interactive Computer 
Services Prohibited.--Nothing in this Act shall be construed to grant 
any jurisdiction or authority to the Commission with respect to content 
or any other regulation of the Internet or other interactive computer 
services.
    ``(e) Effect on Other Laws.--
            ``(1) No effect on criminal law.--Nothing in this section 
        shall be construed to impair the enforcement of section 223 of 
        this Act, chapter 71 (relating to obscenity) or 110 (relating 
        to sexual exploitation of children) of title 18, United States 
        Code, or any other Federal criminal statute.
            ``(2) No effect on intellectual property law.--Nothing in 
        this section shall be construed to limit or expand any law 
        pertaining to intellectual property.
            ``(3) In general.--Nothing in this section shall be 
        construed to prevent any State from enforcing any State law 
        that is consistent with this section.
    ``(f) Definitions.--As used in this section:
            ``(1) Internet.--The term `Internet' means the 
        international computer network of both Federal and non-Federal 
        interoperable packet switched data networks.
            ``(2) Interactive computer service.--The term `interactive 
        computer service' means any information service that provides 
        computer access to multiple users via modem to a remote 
        computer server, including specifically a service that provides 
        access to the Internet.
            ``(3) Information content provider.--The term `information 
        content provider' means any person or entity that is 
        responsible, in whole or in part, for the creation or 
        development of information provided by the Internet or any 
        other interactive computer service, including any person or 
        entity that creates or develops blocking or screening software 
        or other techniques to permit user control over offensive 
        material.
            ``(4) Information service.--The term `information service' 
        means the offering of a capability for generating, acquiring, 
        storing, transforming, processing, retrieving, utilizing, or 
        making available information via telecommunications, and 
        includes electronic publishing, but does not include any use of 
        any such capability for the management, control, or operation 
        of a telecommunications system or the management of a 
        telecommunications service.''.

SEC. 105. PRIVACY OF CUSTOMER INFORMATION.

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

``SEC. 222. PRIVACY OF CUSTOMER PROPRIETARY NETWORK INFORMATION.

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

SEC. 106. POLE ATTACHMENTS.

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

SEC. 107. PREEMPTION OF FRANCHISING AUTHORITY REGULATION OF 
              TELECOMMUNICATIONS SERVICES.

    (a) Telecommunications Services.--Section 621(b) of the Act (47 
U.S.C. 541(c)) is amended by adding at the end thereof the following 
new paragraph:
    ``(3)(A) To the extent that a cable operator or affiliate thereof 
is engaged in the provision of telecommunications services--
            ``(i) such cable operator or affiliate shall not be 
        required to obtain a franchise under this title; and
            ``(ii) the provisions of this title shall not apply to such 
        cable operator or affiliate.
    ``(B) A franchising authority may not impose any requirement that 
has the purpose or effect of prohibiting, limiting, restricting, or 
conditioning the provision of a telecommunications service by a cable 
operator or an affiliate thereof.
    ``(C) A franchising authority may not order a cable operator or 
affiliate thereof--
            ``(i) to discontinue the provision of a telecommunications 
        service, or
            ``(ii) to discontinue the operation of a cable system, to 
        the extent such cable system is used for the provision of a 
        telecommunications service, by reason of the failure of such 
        cable operator or affiliate thereof to obtain a franchise or 
        franchise renewal under this title with respect to the 
        provision of such telecommunications service.
    ``(D) Except as otherwise permitted by sections 611 and 612, a 
franchising authority may not require a cable operator to provide any 
telecommunications service or facilities, other than intragovernmental 
telecommunications services, as a condition of the initial grant of a 
franchise or a franchise renewal.''.
    (b) Franchise Fees.--Section 622(b) of the Act (47 U.S.C. 542(b)) 
is amended by inserting ``to provide cable services'' immediately 
before the period at the end of the first sentence thereof.

SEC. 108. FACILITIES SITING; RADIO FREQUENCY EMISSION STANDARDS.

    (a) National Wireless Telecommunications Siting Policy.--Section 
332(c) of the Act (47 U.S.C. 332(c)) is amended by adding at the end 
the following new paragraph:
            ``(7) Facilities siting policies.--(A) Within 180 days 
        after enactment of this paragraph, the Commission shall 
        prescribe and make effective a policy to reconcile State and 
        local regulation of the siting of facilities for the provision 
        of commercial mobile services or unlicensed services with the 
        public interest in fostering competition through the rapid, 
        efficient, and nationwide deployment of commercial mobile 
        services or unlicensed services.
            ``(B) Pursuant to subchapter III of chapter 5, title 5, 
        United States Code, the Commission shall establish a negotiated 
        rulemaking committee to negotiate and develop a proposed policy 
        to comply with the requirements of this paragraph. Such 
        committee shall include representatives from State and local 
        governments, affected industries, and public safety agencies.
            ``(C) The policy prescribed pursuant to this subparagraph 
        shall take into account--
                    ``(i) the need to enhance the coverage and quality 
                of commercial mobile services and unlicensed services 
                and foster competition in the provision of commercial 
                mobile services and unlicensed services on a timely 
                basis;
                    ``(ii) the legitimate interests of State and local 
                governments in matters of exclusively local concern, 
                and the need to provide State and local government with 
                maximum flexibility to address such local concerns, 
                while ensuring that such interests do not prohibit or 
                have the effect of precluding any commercial mobile 
                service or unlicensed service;
                    ``(iii) the effect of State and local regulation of 
                facilities siting on interstate commerce;
                    ``(iv) the administrative costs to State and local 
                governments of reviewing requests for authorization to 
                locate facilities for the provision of commercial 
                mobile services or unlicensed services; and
                    ``(v) the need to provide due process in making any 
                decision by a State or local government or 
                instrumentality thereof to grant or deny a request for 
                authorization to locate, construct, modify, or operate 
                facilities for the provision of commercial mobile 
                services or unlicensed services.
            ``(D) The policy prescribed pursuant to this paragraph 
        shall provide that no State or local government or any 
        instrumentality thereof may regulate the placement, 
        construction, modification, or operation of such facilities on 
        the basis of the environmental effects of radio frequency 
        emissions, to the extent that such facilities comply with the 
        Commission's regulations concerning such emissions.
            ``(E) The proceeding to prescribe such policy pursuant to 
        this paragraph shall supercede any proceeding pending on the 
        date of enactment of this paragraph relating to preemption of 
        State and local regulation of tower siting for commercial 
        mobile services, unlicensed services, and providers thereof. In 
        accordance with subchapter III of chapter 5, title 5, United 
        States Code, the Commission shall periodically establish a 
        negotiated rulemaking committee to review the policy prescribed 
        by the Commission under this paragraph and to recommend 
        revisions to such policy.
            ``(F) For purposes of this paragraph, the term `unlicensed 
        service' means the offering of telecommunications using duly 
        authorized devices which do not require individual licenses.''.
    (b) Radio Frequency Emissions.--Within 180 days after the enactment 
of this Act, the Commission shall complete action in ET Docket 93-62 to 
prescribe and make effective rules regarding the environmental effects 
of radio frequency emissions.
    (c) Availability of Property.--Within 180 days of the enactment of 
this Act, the Commission shall prescribe procedures by which Federal 
departments and agencies may make available on a fair, reasonable, and 
nondiscriminatory basis, property, rights-of-way, and easements under 
their control for the placement of new telecommunications facilities by 
duly licensed providers of telecommunications services that are 
dependent, in whole or in part, upon the utilization of Federal 
spectrum rights for the transmission or reception of such services. 
These procedures may establish a presumption that requests for the use 
of property, rights-of-way, and easements by duly authorized providers 
should be granted absent unavoidable direct conflict with the 
department or agency's mission, or the current or planned use of the 
property, rights-of-way, and easements in question. Reasonable fees may 
be charged to providers of such telecommunications services for use of 
property, rights-of-way, and easements. The Commission shall provide 
technical support to States to encourage them to make property, rights-
of-way, and easements under their jurisdiction available for such 
purposes.

SEC. 109. MOBILE SERVICE ACCESS TO LONG DISTANCE CARRIERS.

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

SEC. 110. FREEDOM FROM TOLL FRAUD.

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

SEC. 111. REPORT ON MEANS OF RESTRICTING ACCESS TO UNWANTED MATERIAL IN 
              INTERACTIVE TELECOMMUNICATIONS SYSTEMS.

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

SEC. 112. TELECOMMUNICATIONS DEVELOPMENT FUND.

    (a) Deposit and Use of Auction Escrow Accounts.--Section 309(j)(8) 
of the Act (47 U.S.C. 309(j)(8)) is amended by adding at the end the 
following new subparagraph:
                    ``(C) Deposit and use of auction escrow accounts.--
                Any deposits the Commission may require for the 
                qualification of any person to bid in a system of 
                competitive bidding pursuant to this subsection shall 
                be deposited in an interest bearing account at a 
                financial institution designated for purposes of this 
                subsection by the Commission (after consultation with 
                the Secretary of the Treasury). Within 45 days 
                following the conclusion of the competitive bidding--
                            ``(i) the deposits of successful bidders 
                        shall be paid to the Treasury;
                            ``(ii) the deposits of unsuccessful bidders 
                        shall be returned to such bidders; and
                            ``(iii) the interest accrued to the account 
                        shall be transferred to the Telecommunications 
                        Development Fund established pursuant to 
                        section 10 of this Act.''.
    (b) Establishment and Operation of Fund.--Title I of the Act is 
amended by adding at the end the following new section:

``SEC. 10. TELECOMMUNICATIONS DEVELOPMENT FUND.

    ``(a) Purpose of Section.--It is the purpose of this section--
            ``(1) to promote access to capital for small businesses in 
        order to enhance competition in the telecommunications 
        industry;
            ``(2) to stimulate new technology development, and promote 
        employment and training; and
            ``(3) to support universal service and promote delivery of 
        telecommunications services to underserved rural and urban 
        areas.
    ``(b) Establishment of Fund.--There is hereby established a body 
corporate to be known as the Telecommunications Development Fund, which 
shall have succession until dissolved. The Fund shall maintain its 
principal office in the District of Columbia and shall be deemed, for 
purposes of venue and jurisdiction in civil actions, to be a resident 
and citizen thereof.
    ``(c) Board of Directors.--
            ``(1) Composition of board; chairman.--The Fund shall have 
        a Board of Directors which shall consist of 7 persons appointed 
        by the Chairman of the Commission. Four of such directors shall 
        be representative of the private sector and three of such 
        directors shall be representative of the Commission, the Small 
        Business Administration, and the Department of the Treasury, 
        respectively. The Chairman of the Commission shall appoint one 
        of the representatives of the private sector to serve as 
        chairman of the Fund within 30 days after the date of enactment 
        of this section, in order to facilitate rapid creation and 
        implementation of the Fund. The directors shall include members 
        with experience in a number of the following areas: finance, 
        investment banking, government banking, communications law and 
        administrative practice, and public policy.
            ``(2) Terms of appointed and elected members.--The 
        directors shall be eligible to serve for terms of 5 years, 
        except of the initial members, as designated at the time of 
        their appointment--
                    ``(A) 1 shall be eligible to service for a term of 
                1 year;
                    ``(B) 1 shall be eligible to service for a term of 
                2 years;
                    ``(C) 1 shall be eligible to service for a term of 
                3 years;
                    ``(D) 2 shall be eligible to service for a term of 
                4 years; and
                    ``(E) 2 shall be eligible to service for a term of 
                5 years (1 of whom shall be the Chairman).
        Directors may continue to serve until their successors have 
        been appointed and have qualified.
            ``(3) Meetings and functions of the board.--The Board of 
        Directors shall meet at the call of its Chairman, but at least 
        quarterly. The Board shall determine the general policies which 
        shall govern the operations of the Fund. The Chairman of the 
        Board shall, with the approval of the Board, select, appoint, 
        and compensate qualified persons to fill the offices as may be 
        provided for in the bylaws, with such functions, powers, and 
        duties as may be prescribed by the bylaws or by the Board of 
        Directors, and such persons shall be the officers of the Fund 
        and shall discharge all such functions, powers, and duties.
    ``(d) Accounts of the Fund.--The Fund shall maintain its accounts 
at a financial institution designated for purposes of this section by 
the Chairman of the Board (after consultation with the Commission and 
the Secretary of the Treasury). The accounts of the Fund shall consist 
of--
            ``(1) interest transferred pursuant to section 309(j)(8)(C) 
        of this Act;
            ``(2) such sums as may be appropriated to the Commission 
        for advances to the Fund;
            ``(3) any contributions or donations to the Fund that are 
        accepted by the Fund; and
            ``(4) any repayment of, or other payment made with respect 
        to, loans, equity, or other extensions of credit made from the 
        Fund.
    ``(e) Use of the Fund.--All moneys deposited into the accounts of 
the Fund shall be used solely for--
            ``(1) the making of loans, investments, or other extensions 
        of credits to eligible small businesses in accordance with 
        subsection (f);
            ``(2) the provision of financial advise to eligible small 
        businesses;
            ``(3) expenses for the administration and management of the 
        Fund;
            ``(4) preparation of research, studies, or financial 
        analyses; and
            ``(5) other services consistent with the purposes of this 
        section.
    ``(f) Lending and Credit Operations.--Loans or other extensions of 
credit from the Fund shall be made available to eligible small business 
on the basis of--
            ``(1) the analysis of the business plan of the eligible 
        small business;
            ``(2) the reasonable availability of collateral to secure 
        the loan or credit extension;
            ``(3) the extent to which the loan or credit extension 
        promotes the purposes of this section; and
            ``(4) other lending policies as defined by the Board.
    ``(g) Return of Advances.--Any advances appropriated pursuant to 
subsection (b)(2) shall be upon such terms and conditions (including 
conditions relating to the time or times of repayment) as the Board 
determines will best carry out the purposes of this section, in light 
of the maturity and solvency of the Fund.
    ``(h) General Corporate Powers.--The Fund shall have power--
            ``(1) to sue and be sued, complain and defend, in its 
        corporate name and through its own counsel;
            ``(2) to adopt, alter, and use the corporate seal, which 
        shall be judicially noticed;
            ``(3) to adopt, amend, and repeal by its Board of 
        Directors, bylaws, rules, and regulations as may be necessary 
        for the conduct of its business;
            ``(4) to conduct its business, carry on its operations, and 
        have officers and exercise the power granted by this section in 
        any State without regard to any qualification or similar 
        statute in any State;
            ``(5) to lease, purchase, or otherwise acquire, own, hold, 
        improve, use, or otherwise deal in and with any property, real, 
        personal, or mixed, or any interest therein, wherever situated;
            ``(6) to accept gifts or donations of services, or of 
        property, real, personal, or mixed, tangible or intangible, in 
        aid of any of the purposes of the Fund;
            ``(7) to sell, convey, mortgage, pledge, lease, exchange, 
        and otherwise dispose of its property and assets;
            ``(8) to appoint such officers, attorneys, employees, and 
        agents as may be required, to determine their qualifications, 
        to define their duties, to fix their salaries, require bonds 
        for them, and fix the penalty thereof; and
            ``(9) to enter into contracts, to execute instruments, to 
        incur liabilities, to make loans and equity investment, and to 
        do all things as are necessary or incidental to the proper 
        management of its affairs and the proper conduct of its 
        business.
    ``(i) Accounting, Auditing, and Reporting.--The accounts of the 
Fund shall be audited annually. Such audits shall be conducted in 
accordance with generally accepted auditing standards by independent 
certified public accountants. A report of each such audit shall be 
furnished to the Secretary of the Treasury and the Commission. The 
representatives of the Secretary and the Commission shall have access 
to all books, accounts, financial records, reports, files, and all 
other papers, things, or property belonging to or in use by the Fund 
and necessary to facilitate the audit.
    ``(j) Report on Audits by Treasury.--A report of each such audit 
for a fiscal year shall be made by the Secretary of the Treasury to the 
President and to the Congress not later than 6 months following the 
close of such fiscal year. The report shall set forth the scope of the 
audit and shall include a statement of assets and liabilities, capital 
and surplus or deficit; a statement of surplus or deficit analysis; a 
statement of income and expense; a statement of sources and application 
of funds; and such comments and information as may be deemed necessary 
to keep the President and the Congress informed of the operations and 
financial condition of the Fund, together with such recommendations 
with respect thereto as the Secretary may deem advisable.
    ``(k) Definitions.--As used in this section:
            ``(1) Eligible small business.--The term `eligible small 
        business' means business enterprises engaged in the 
        telecommunications industry that have $50,000,000 or less in 
        annual revenues, on average over the past 3 years prior to 
        submitting the application under this section.
            ``(2) Fund.--The term `Fund' means the Telecommunications 
        Development Fund established pursuant to this section.
            ``(3) Telecommunications industry.--The term 
        `telecommunications industry' means communications businesses 
        using regulated or unregulated facilities or services and 
        includes the broadcasting, telephony, cable, computer, data 
        transmission, software, programming, advanced messaging, and 
        electronics businesses.''.

SEC. 113. REPORT ON THE USE OF ADVANCED TELECOMMUNICATIONS SERVICES FOR 
              MEDICAL PURPOSES.

    The Assistant Secretary of Commerce for Communications and 
Information, in consultation with the Secretary of Health and Human 
Services and other appropriate departments and agencies, shall submit a 
report to the Committee on Commerce of the House of Representatives and 
the Committee on Commerce, Science and Transportation of the Senate 
concerning the activities of the Joint Working Group on Telemedicine, 
together with any findings reached in the studies and demonstrations on 
telemedicine funded by the Public Health Service or other Federal 
agencies. The report shall examine questions related to patient safety, 
the efficacy and quality of the services provided, and other legal, 
medical, and economic issues related to the utilization of advanced 
telecommunications services for medical purposes. The report shall be 
submitted to the respective Committees annually, by January 31, 
beginning in 1996.

SEC. 114. TELECOMMUTING PUBLIC INFORMATION PROGRAM.

    (a) Telecommuting Research Programs and Public Information 
Dissemination.--The Assistant Secretary of Commerce for Communications 
and Information, in consultation with the Secretary of Transportation, 
the Secretary of Labor, and the Administrator of the Environmental 
Protection Agency, shall, within three months of the date of enactment 
of this Act, carry out research to identify successful telecommuting 
programs in the public and private sectors and provide for the 
dissemination to the public of information regarding--
            (1) the establishment of successful telecommuting programs; 
        and
            (2) the benefits and costs of telecommuting.
    (b) Report.--Within one year of the date of enactment of this Act, 
the Assistant Secretary of Commerce for Communications and Information 
shall report to Congress the findings, conclusions, and recommendations 
regarding telecommuting developed under this section.

SEC. 115. AUTHORIZATION OF APPROPRIATIONS.

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

             TITLE II--CABLE COMMUNICATIONS COMPETITIVENESS

SEC. 201. CABLE SERVICE PROVIDED BY TELEPHONE COMPANIES.

    (a) General Requirement.--
            (1) Amendment.--Section 613(b) of the Act (47 U.S.C. 
        533(b)) is amended to read as follows:
    ``(b)(1) Subject to the requirements of part V and the other 
provisions of this title, any common carrier subject in whole or in 
part to title II of this Act may, either through its own facilities or 
through an affiliate, provide video programming directly to subscribers 
in its telephone service area.
    ``(2) Subject to the requirements of part V and the other 
provisions of this title, any common carrier subject in whole or in 
part to title II of this Act may provide channels of communications or 
pole, line, or conduit space, or other rental arrangements, to any 
entity which is directly or indirectly owned, operated, or controlled 
by, or under common control with, such common carrier, if such 
facilities or arrangements are to be used for, or in connection with, 
the provision of video programming directly to subscribers in its 
telephone service area.
    ``(3)(A) Notwithstanding paragraphs (1) and (2), an affiliate 
described in subparagraph (B) shall not be subject to the requirements 
of part V (other than section 652), but--
            ``(i) if providing video programming as a cable service 
        using a cable system, shall be subject to the requirements of 
        this part and parts III and IV; and
            ``(ii) if providing such video programming by means of 
        radio communication, shall be subject to the requirements of 
        title III.
    ``(B) For purposes of subparagraph (A), an affiliate is described 
in this subparagraph if such affiliate--
            ``(i) is, consistently with section 655, owned, operated, 
        or controlled by, or under common control with, a common 
        carrier subject in whole or in part to title II of this Act;
            ``(ii) provides video programming to subscribers in the 
        telephone service area of such carrier; and
            ``(iii) has not established a video platform in accordance 
        with section 653.''.
            (2) Conforming amendment.--Section 602 of the Act (47 
        U.S.C. 531) is amended--
                    (A) by redesignating paragraphs (18) and (19) as 
                paragraphs (19) and (20) respectively; and
                    (B) by inserting after paragraph (17) the following 
                new paragraph:
            ``(18) the term `telephone service area' when used in 
        connection with a common carrier subject in whole or in part to 
        title II of this Act means the area within which such carrier 
        provides telephone exchange service as of January 1, 1993, but 
        if any common carrier after such date transfers its exchange 
        service facilities to another common carrier, the area to which 
        such facilities provide telephone exchange service shall be 
        treated as part of the telephone service area of the acquiring 
        common carrier and not of the selling common carrier;''.
    (b) Provisions for Regulation of Cable Service Provided by 
Telephone Companies.--Title VI of the Act (47 U.S.C. 521 et seq.) is 
amended by adding at the end the following new part:

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

``SEC. 651. DEFINITIONS.

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

``SEC. 652. SEPARATE VIDEO PROGRAMMING AFFILIATE.

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

``SEC. 653. ESTABLISHMENT OF VIDEO PLATFORM.

    ``(a) Video Platform.--
            ``(1) In general.--Except as provided in section 613(b)(3), 
        any common carrier subject to title II of this Act, and that 
        provides video programming directly to subscribers in its 
        telephone service area, may establish a video platform. This 
        paragraph shall not apply to any carrier to the extent that it 
        provides video programming directly to subscribers in its 
        telephone service area solely through a cable system acquired 
        in accordance with section 655(b).
            ``(2) Identification of demand for carriage.--Any common 
        carrier subject to the requirements of paragraph (1) shall, 
        prior to establishing a video platform, submit a notice to the 
        Commission of its intention to establish channel capacity for 
        the provision of video programming to meet the bona fide demand 
        for such capacity. Such notice shall--
                    ``(A) be in such form and contain information 
                concerning the geographic area intended to be served 
                and such information as the Commission may require by 
                regulations pursuant to subsection (b);
                    ``(B) specify the methods by which any entity 
                seeking to use such channel capacity should submit to 
                such carrier a specification of its channel capacity 
                requirements; and
                    ``(C) specify the procedures by which such carrier 
                will determine (in accordance with the Commission's 
                regulations under subsection (b)(1)(B)) whether such 
                requests for capacity are bona fide.
        The Commission shall submit any such notice for publication in 
        the Federal Register within 5 working days.
            ``(3) Response to request for carriage.--After receiving 
        and reviewing the requests for capacity submitted pursuant to 
        such notice, such common carrier shall establish channel 
        capacity that is sufficient to provide carriage for--
                    ``(A) all bona fide requests submitted pursuant to 
                such notice,
                    ``(B) any additional channels required pursuant to 
                section 656, and
                    ``(C) any additional channels required by the 
                Commission's regulations under subsection (b)(1)(C).
            ``(4) Responses to changes in demand for capacity.--Any 
        common carrier that establishes a video platform under this 
        section shall--
                    ``(A) immediately notify the Commission and each 
                video programming provider of any delay in or denial of 
                channel capacity or service, and the reasons therefor;
                    ``(B) continue to receive and grant, to the extent 
                of available capacity, carriage in response to bona 
                fide requests for carriage from existing or additional 
                video programming providers;
                    ``(C) if at any time the number of channels 
                required for bona fide requests for carriage may 
                reasonably be expected soon to exceed the existing 
                capacity of such video platform, immediately notify the 
                Commission of such expectation and of the manner and 
                date by which such carrier will provide sufficient 
                capacity to meet such excess demand; and
                    ``(D) construct such additional capacity as may be 
                necessary to meet such excess demand.
            ``(5) Dispute resolution.--The Commission shall have the 
        authority to resolve disputes under this section and the 
        regulations prescribed thereunder. Any such dispute shall be 
        resolved within 180 days after notice of such dispute is 
        submitted to the Commission. At that time or subsequently in a 
        separate damages proceeding, the Commission may award damages 
        sustained in consequence of any violation of this section to 
        any person denied carriage, or require carriage, or both. Any 
        aggrieved party may seek any other remedy available under this 
        Act.
    ``(b) Commission Actions.--
            ``(1) In general.--Within 6 months after the date of the 
        enactment of this section, the Commission shall complete all 
        actions necessary (including any reconsideration) to prescribe 
        regulations that--
                    ``(A) consistent with the requirements of section 
                656, prohibit a common carrier from discriminating 
                among video programming providers with regard to 
                carriage on its video platform, and ensure that the 
                rates, terms, and conditions for such carriage are 
                just, reasonable, and nondiscriminatory;
                    ``(B) prescribe definitions and criteria for the 
                purposes of determining whether a request shall be 
                considered a bona fide request for purposes of this 
                section;
                    ``(C) permit a common carrier to carry on only one 
                channel any video programming service that is offered 
                by more than one video programming provider (including 
                the common carrier's video programming affiliate), 
                provided that subscribers have ready and immediate 
                access to any such video programming service;
                    ``(D) extend to the distribution of video 
                programming over video platforms the Commission's 
                regulations concerning sports exclusivity (47 C.F.R. 
                76.67), network nonduplication (47 C.F.R. 76.92 et 
                seq.), and syndicated exclusivity (47 C.F.R. 76.151 et 
                seq.);
                    ``(E) require the video platform to provide 
                service, transmission, and interconnection for 
                unaffiliated or independent video programming providers 
                that is equivalent to that provided to the common 
                carrier's video programming affiliate, except that the 
                video platform shall not discriminate between analog 
                and digital video programming offered by such 
                unaffiliated or independent video programming 
                providers;
                    ``(F)(i) prohibit a common carrier from 
                unreasonably discriminating in favor of its video 
                programming affiliate with regard to material or 
                information provided by the common carrier to 
                subscribers for the purposes of selecting programming 
                on the video platform, or in the way such material or 
                information is presented to subscribers;
                    ``(ii) require a common carrier to ensure that 
                video programming providers or copyright holders (or 
                both) are able suitably and uniquely to identify their 
                programming services to subscribers; and
                    ``(iii) if such identification is transmitted as 
                part of the programming signal, require the carrier to 
                transmit such identification without change or 
                alteration; and
                    ``(G) prohibit a common carrier from excluding 
                areas from its video platform service area on the basis 
                of the ethnicity, race, or income of the residents of 
                that area, and provide for public comments on the 
                adequacy of the proposed service area on the basis of 
                the standards set forth under this subparagraph.
        Nothing in this section prohibits a common carrier or its 
        affiliate from negotiating mutually agreeable terms and 
        conditions with over-the-air broadcast stations and other 
        unaffiliated video programming providers to allow consumer 
        access to their signals on any level or screen of any gateway, 
        menu, or other program guide, whether provided by the carrier 
        or its affiliate.
    ``(2) Regulatory Streamlining.--With respect to the establishment 
and operation of a video platform, the requirements of this section 
shall apply in lieu of, and not in addition to, the requirements of 
title II.

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

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

``SEC. 655. PROHIBITION ON BUY OUTS.

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

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

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

``SEC. 657. RURAL AREA EXEMPTION.

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

SEC. 202. COMPETITION FROM CABLE SYSTEMS.

    (a) Definition of Cable Service.--Section 602(6)(B) of the Act (47 
U.S.C. 522(6)(B)) is amended by inserting ``or use'' after ``the 
selection''.
    (b) Clustering.--Section 613 of the Act (47 U.S.C. 533) is amended 
by adding at the end the following new subsection:
    ``(i) Acquisition of Cable Systems.--Except as provided in section 
655, the Commission may not require divestiture of, or restrict or 
prevent the acquisition of, an ownership interest in a cable system by 
any person based in whole or in part on the geographic location of such 
cable system.''.
    (c) Equipment.--Section 623(a) of the Act (47 U.S.C. 543(a)) is 
amended--
            (1) in paragraph (6)--
                    (A) by striking ``paragraph (4)'' and inserting 
                ``paragraph (5)'';
                    (B) by striking ``paragraph (5)'' and inserting 
                ``paragraph (6)''; and
                    (C) by striking ``paragraph (3)'' and inserting 
                ``paragraph (4)'';
            (2) by redesignating paragraphs (3) through (6) as 
        paragraphs (4) through (7), respectively; and
            (3) by inserting after paragraph (2) the following new 
        paragraph:
            ``(3) Equipment.--If the Commission finds that a cable 
        system is subject to effective competition under subparagraph 
        (D) of subsection (l)(1), the rates for equipment, 
        installations, and connections for additional television 
        receivers (other than equipment, installations, and connections 
        furnished by such system to subscribers who receive only a rate 
        regulated basic service tier) shall not be subject to 
        regulation by the Commission or by a State or franchising 
        authority. If the Commission finds that a cable system is 
        subject to effective competition under subparagraph (A), (B), 
        or (C) of subsection (l)(1), the rates for any equipment, 
        installations, and connections furnished by such system to any 
        subscriber shall not be subject to regulation by the 
        Commission, or by a State or franchising authority. No Federal 
        agency, State, or franchising authority may establish the price 
        or rate for the installation, sale, or lease of any equipment 
        furnished to any subscriber by a cable system solely in 
        connection with video programming offered on a per channel or 
        per program basis.''.
    (d) Limitation on Basic Tier Rate Increases; Scope of Review.--
Section 623(a) of the Act (47 U.S.C. 543(a)) is further amended by 
adding at the end the following new paragraph:
            ``(8) Limitation on basic tier rate increases; scope of 
        review.--A cable operator may not increase its basic service 
        tier rate more than once every 6 months. Such increase may be 
        implemented, using any reasonable billing or proration method, 
        30 days after providing notice to subscribers and the 
        appropriate regulatory authority. The rate resulting from such 
        increase shall be deemed reasonable and shall not be subject to 
        reduction or refund if the franchising authority or the 
        Commission, as appropriate, does not complete its review and 
        issue a final order within 90 days after implementation of such 
        increase. The review by the franchising authority or the 
        Commission of any future increase in such rate shall be limited 
        to the incremental change in such rate effected by such 
        increase.''.
    (e) National Information Infrastructure Development.--Section 
623(a) of the Act (47 U.S.C. 543) is further amended by adding at the 
end the following new paragraph:
            ``(9) National information infrastructure.--
                    ``(A) Purpose.--It is the purpose of this paragraph 
                to--
                            ``(i) promote the development of the 
                        National Information Infrastructure;
                            ``(ii) enhance the competitiveness of the 
                        National Information Infrastructure by ensuring 
                        that cable operators have incentives comparable 
                        to other industries to develop such 
                        infrastructure; and
                            ``(iii) encourage the rapid deployment of 
                        digital technology necessary to the development 
                        of the National Information Infrastructure.
                    ``(B) Aggregation of equipment costs.--The 
                Commission shall allow cable operators, pursuant to any 
                rules promulgated under subsection (b)(3), to 
                aggregate, on a franchise, system, regional, or company 
                level, their equipment costs into broad categories, 
                such as converter boxes, regardless of the varying 
                levels of functionality of the equipment within each 
                such broad category. Such aggregation shall not be 
                permitted with respect to equipment used by subscribers 
                who receive only a rate regulated basic service tier.
                    ``(C) Revision to commission rules; forms.--Within 
                120 days of the date of enactment of this paragraph, 
                the Commission shall issue revisions to the appropriate 
                rules and forms necessary to implement subparagraph 
                (B).''.
    (f) Complaint Threshold; Scope of Commission Review.--Section 
623(c) of the Act (47 U.S.C. 543(c)) is amended--
            (1) by striking paragraph (3) and inserting the following:
            ``(3) Review of complaints.--
                    ``(A) Complaint threshold.--The Commission shall 
                have the authority to review any increase in the rates 
                for cable programming services implemented after the 
                date of enactment of the Communications Act of 1995 
                only if, within 90 days after such increase becomes 
                effective, at least 10 subscribers to such services or 
                3 percent of the subscribers to such services, 
                whichever is greater, file separate, individual 
                complaints against such increase with the Commission in 
                accordance with the requirements established under 
                paragraph (1)(B).
                    ``(B) Time period for commission review.--The 
                Commission shall complete its review of any such 
                increase and issue a final order within 90 days after 
                it receives the number of complaints required by 
                subparagraph (A).
            ``(4) Treatment of pending cable programming services 
        complaints.--Upon enactment of the Communications Act of 1995, 
        the Commission shall suspend the processing of all pending 
        cable programming services rate complaints. These pending 
        complaints shall be counted by the Commission toward the 
        complaint threshold specified in paragraph (3)(A). Parties 
        shall have an additional 90 days from the date of enactment of 
        such Act to file complaints about prior increases in cable 
        programming services rates if such rate increases were already 
        subject to a valid, pending complaint on such date of 
enactment. At the expiration of such 90-day period, the Commission 
shall dismiss all pending cable programming services rate cases for 
which the complaint threshold has not been met, and may resume its 
review of those pending cable programming services rate cases for which 
the complaint threshold has been met, which review shall be completed 
within 180 days after the date of enactment of the Communications Act 
of 1995.
            ``(5) Scope of commission review.--A cable programming 
        services rate shall be deemed not unreasonable and shall not be 
        subject to reduction or refund if--
                    ``(A) such rate was not the subject of a pending 
                complaint at the time of enactment of the 
                Communications Act of 1995;
                    ``(B) such rate was the subject of a complaint that 
                was dismissed pursuant to paragraph (4);
                    ``(C) such rate resulted from an increase for which 
                the complaint threshold specified in paragraph (3)(A) 
                has not been met;
                    ``(D) the Commission does not complete its review 
                and issue a final order in the time period specified in 
                paragraph (3)(B) or (4); or
                    ``(E) the Commission issues an order finding such 
                rate to be not unreasonable.
        The review by the Commission of any future increase in such 
        rate shall be limited to the incremental change in such rate 
        effected by such increase.'';
            (2) in paragraph (1)(B) by striking ``obtain Commission 
        consideration and resolution of whether the rate in question is 
        unreasonable'' and inserting ``be counted toward the complaint 
        threshold specified in paragraph (3)(A)''; and
            (3) in paragraph (1)(C) by striking ``such complaint'' and 
        inserting in lieu thereof ``the first complaint''.
    (g) Uniform Rate Structure.--Section 623(d) of the Act (47 U.S.C. 
543(d)) is amended to read as follows:
    ``(d) Uniform Rate Structure.--A cable operator shall have a 
uniform rate structure throughout its franchise area for the provision 
of cable services that are regulated by the Commission or the 
franchising authority. Bulk discounts to multiple dwelling units shall 
not be subject to this requirement.''.
    (h) Effective Competition.--Section 623(l)(1) of the Act (47 U.S.C. 
543(l)(1)) is amended--
            (1) in subparagraph (B)(ii)--
                    (A) by inserting ``all'' before ``multichannel 
                video programming distributors''; and
                    (B) by striking ``or'' at the end thereof;
            (2) by striking the period at the end of subparagraph (C) 
        and inserting ``; or''; and
            (3) by adding at the end the following:
                    ``(D) with respect to cable programming services 
                and subscriber equipment, installations, and 
                connections for additional television receivers (other 
                than equipment, installations, and connections 
                furnished to subscribers who receive only a rate 
                regulated basic service tier)--
                            ``(i) a common carrier has been authorized 
                        by the Commission to construct facilities to 
                        provide video dialtone service in the cable 
                        operator's franchise area;
                            ``(ii) a common carrier has been authorized 
                        by the Commission or pursuant to a franchise to 
                        provide video programming directly to 
                        subscribers in the franchise area; or
                            ``(iii) 270 days have elapsed since the 
                        Commission has completed all actions necessary 
                        (including any reconsideration) to prescribe 
                        regulations pursuant to section 653(b)(1) 
                        relating to video platforms.''.
    (i) Relief for Small Cable Operators.--Section 623 of the Act (47 
U.S.C. 543) is amended by adding at the end the following new 
subsection:
    ``(m) Small Cable Operators.--
            ``(1) Small cable operator relief.--A small cable operator 
        shall not be subject to subsections (a), (b), (c), or (d) in 
        any franchise area with respect to the provision of cable 
        programming services, or a basic service tier where such tier 
        was the only tier offered in such area on December 31, 1994.
            ``(2) Definition of small cable operator.--For purposes of 
        this subsection, `small cable operator' means a cable operator 
        that--
                    ``(A) directly or through an affiliate, serves in 
                the aggregate fewer than 1 percent of all cable 
                subscribers in the United States; and
                    ``(B) is not affiliated with any entity or entities 
                whose gross annual revenues in the aggregate exceed 
                $250,000,000.''.
    (j) Technical Standards.--Section 624(e) of the Act (47 U.S.C. 
544(e)) is amended by striking the last two sentences and inserting the 
following: ``No State or franchising authority may prohibit, condition, 
or restrict a cable system's use of any type of subscriber equipment or 
any transmission technology.''.
    (k) Cable Security Systems.--Section 624A(b)(2) of the Act (47 
U.S.C. 544a(b)(2)) is amended to read as follows:
            ``(2) Cable security systems.--No Federal agency, State, or 
        franchising authority may prohibit a cable operator's use of 
        any security system (including scrambling, encryption, traps, 
        and interdiction), except that the Commission may prohibit the 
        use of any such system solely with respect to the delivery of a 
        basic service tier that, as of January 1, 1995, contained only 
        the signals and programming specified in section 623(b)(7)(A), 
        unless the use of such system is necessary to prevent the 
        unauthorized reception of such tier.''.
    (l) Cable Equipment Compatibility.--Section 624A of the Act (47 
U.S.C. 544A), is amended--
            (1) in subsection (a) by striking ``and'' at the end of 
        paragraph (2), by striking the period at the end of paragraph 
        (3) and inserting ``; and''; and by adding at the end the 
        following new paragraph:
            ``(4) compatibility among televisions, video cassette 
        recorders, and cable systems can be assured with narrow 
        technical standards that mandate a minimum degree of common 
design and operation, leaving all features, functions, protocols, and 
other product and service options for selection through open 
competition in the market.'';
            (2) in subsection (c)(1)--
                    (A) by redesignating subparagraphs (A) and (B) as 
                subparagraphs (B) and (C), respectively; and
                    (B) by inserting before such redesignated 
                subparagraph (B) the following new subparagraph:
                    ``(A) the need to maximize open competition in the 
                market for all features, functions, protocols, and 
                other product and service options of converter boxes 
                and other cable converters unrelated to the 
                descrambling or decryption of cable television 
                signals;''; and
            (3) in subsection (c)(2)--
                    (A) by redesignating subparagraphs (D) and (E) as 
                subparagraphs (E) and (F), respectively; and
                    (B) by inserting after subparagraph (C) the 
                following new subparagraph:
                    ``(D) to ensure that any standards or regulations 
                developed under the authority of this section to ensure 
                compatibility between televisions, video casette 
                recorders, and cable systems do not affect features, 
                functions, protocols, and other product and service 
                options other than those specified in paragraph (1)(B), 
                including telecommunications interface equipment, home 
                automation communications, and computer network 
                services;''.
    (m) Retiering of Basic Tier Services.--Section 625(d) of the Act 
(47 U.S.C. 543(d)) is amended by adding at the end the following new 
sentence: ``Any signals or services carried on the basic service tier 
but not required under section 623(b)(7)(A) may be moved from the basic 
service tier at the operator's sole discretion, provided that the 
removal of such a signal or service from the basic service tier is 
permitted by contract. The movement of such signals or services to an 
unregulated package of services shall not subject such package to 
regulation.''.
    (n) Subscriber Notice.--Section 632 of the Act (47 U.S.C. 552) is 
amended--
            (1) by redesignating subsection (c) as subsection (d); and
            (2) by inserting after subsection (b) the following new 
        subsection:
    ``(c) Subscriber Notice.--A cable operator may provide notice of 
service and rate changes to subscribers using any reasonable written 
means at its sole discretion. Notwithstanding section 623(b)(6) or any 
other provision of this Act, a cable operator shall not be required to 
provide prior notice of any rate change that is the result of a 
regulatory fee, franchise fee, or any other fee, tax, assessment, or 
charge of any kind imposed by any Federal agency, State, or franchising 
authority on the transaction between the operator and the 
subscriber.''.
    (o) Treatment of Prior Year Losses.--
            (1) Amendment.--Section 623 (48 U.S.C. 543) is amended by 
        adding at the end thereof the following:
    ``(n) Treatment of Prior Year Losses.--Notwithstanding any other 
provision of this section or of section 612, losses (including losses 
associated with the acquisitions of such franchise) that were incurred 
prior to September 4, 1992, with respect to a cable system that is 
owned and operated by the original franchisee of such system shall not 
be disallowed, in whole or in part, in the determination of whether the 
rates for any tier of service or any type of equipment that is subject 
to regulation under this section are lawful.''.
            (2) Effective date.--The amendment made by paragraph (1) 
        shall take effect on the date of enactment of this Act and 
        shall be applicable to any rate proposal filed on or after 
        September 4, 1993.

SEC. 203. COMPETITIVE AVAILABILITY OF NAVIGATION DEVICES.

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

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

    ``(a) Definitions.--As used in this section:
            ``(1) The term `telecommunications subscription service' 
        means the provision directly to subscribers of video, voice, or 
        data services for which a subscriber charge is made.
            ``(2) The term `telecommunications system' or a 
        `telecommunications system operator' means a provider of 
        telecommunications subscription service.
    ``(b) Competitive Consumer Availability of Customer Premises 
Equipment.--The Commission shall adopt regulations to assure 
competitive availability, to consumers of telecommunications 
subscription services, of converter boxes, interactive communications 
devices, and other customer premises equipment from manufacturers, 
retailers, and other vendors not affiliated with any telecommunications 
system operator. Such regulations shall not prohibit any 
telecommunications system operator from also offering devices and 
customer premises equipment to consumers, provided that the system 
operator's charges to consumers for such devices and equipment are 
separately stated and not subsidized by charges for any 
telecommunications subscription service.
    ``(c) Protection of System Security.--The Commission shall not 
prescribe regulations pursuant to subsection (b) which would jeopardize 
the security of a telecommunications system or impede the legal rights 
of a provider of such service to prevent theft of service.
    ``(d) Waiver for New Network Services.--The Commission shall waive 
a regulation adopted pursuant to subsection (b) for a limited time upon 
an appropriate showing by a telecommunications system operator that 
such waiver is necessary to assist the development or introduction of a 
new or improved telecommunications subscription service or technology.
    ``(e) Avoidance of Redundant Regulations.--
            ``(1) Market competitiveness determinations.--
        Determinations made or regulations prescribed by the Commission 
        with respect to market competitiveness of customer premises 
        equipment prior to the date of enactment of this section shall 
        fulfill the requirements of this section.
            ``(2) Regulations.--Nothing in this section affects the 
        Commission's regulations governing the interconnection and 
        competitive provision of customer premises equipment used in 
        connection with basic telephone service.
    ``(f) Sunset.--The regulations adopted pursuant to this section 
shall cease to apply to any market for the acquisition of converter 
boxes, interactive communications devices, or other customer premises 
equipment when the Commission determines that such market is 
competitive.''.

SEC. 204. VIDEO PROGRAMMING ACCESSIBILITY.

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

SEC. 205. TECHNICAL AMENDMENTS.

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

          TITLE III--BROADCAST COMMUNICATIONS COMPETITIVENESS

SEC. 301. BROADCASTER SPECTRUM FLEXIBILITY.

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

``SEC. 336. BROADCAST SPECTRUM FLEXIBILITY.

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

SEC. 302. BROADCAST OWNERSHIP.

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

``SEC. 337. BROADCAST OWNERSHIP.

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

SEC. 303. FOREIGN INVESTMENT AND OWNERSHIP.

    (a) Station Licenses.--Section 310(a) (47 U.S.C. 310(a)) is amended 
to read as follows:
    ``(a) Grant to or Holding by Foreign Government or 
Representative.--No station license required under title III of this 
Act shall be granted to or held by any foreign government or any 
representative thereof. This subsection shall not apply to licenses 
issued under such terms and conditions as the Commission may prescribe 
to mobile earth stations engaged in occasional or short-term 
transmissions via satellite of audio or television program material and 
auxilliary signals if such transmissions are not intended for direct 
reception by the general public in the United States.''.
    (b) Termination of Foreign Ownership Restrictions.--Section 310 (47 
U.S.C. 310) is amended by adding at the end thereof the following new 
subsection:
    ``(f) Termination of Foreign Ownership Restrictions.--
            ``(1) Restriction not to apply.--Subsection (b) shall not 
        apply to any common carrier license granted, held, or for which 
        application is made, after the date of enactment of this 
        subsection with respect to any alien (or representative 
        thereof), corporation, or foreign government (or representative 
        thereof) if--
                    ``(A) the President determines--
                            ``(i) that the foreign country of which 
                        such alien is a citizen, in which such 
                        corporation is organized, or in which the 
                        foreign government is in control is party to an 
                        international agreement which requires the 
                        United States to provide national or most-
                        favored-nation treatment in the grant of common 
                        carrier licenses; and
                            ``(ii) that not applying subsection (b) 
                        would be consistent with national security and 
                        effective law enforcement; or
                    ``(B) the Commission determines that not applying 
                subsection (b) would serve the public interest.
            ``(2) Commission considerations.--In making its 
        determination under paragraph (1), the Commission shall abide 
        by any decision of the President whether application of section 
        (b) is in the public interest due to national security, law 
        enforcement, foreign policy or trade (including direct 
        investment as it relates to international trade policy) 
        concerns, or due to the interpretation of international 
        agreements. In the absence of a decision by the President, the 
        Commission may consider, among other public interest factors, 
        whether effective competitive opportunities are available to 
        United States nationals or corporations in the applicant's home 
        market. Upon receipt of an application that requires a 
        determination under this paragraph, the Commission shall cause 
        notice of the application to be given to the President or any 
        agencies designated by the President to receive such 
        notification. The Commission shall not make a determination 
        under paragraph (1)(B) earlier than 30 days after the end of 
        the pleading cycle or later than 180 days after the end of the 
        pleading cycle.
            ``(3) Further commission review.--The Commission may 
        determine that, due to changed circumstances relating to United 
        States national security or law enforcement, a prior 
        determination under paragraph (1) ought to be reversed or 
        altered. In making this determination, the Commission shall 
        accord great deference to any recommendation of the President 
        with respect to United States national security or law 
        enforcement. If a determination under this paragraph is made 
        then--
                    ``(A) subsection (b) shall apply with respect to 
                such aliens, corporation, and government (or their 
                representatives) on the date that the Commission 
                publishes notice of its determination under this 
                paragraph; and
                    ``(B) any license held, or application filed, which 
                could not be held or granted under subsection (b) shall 
                be reviewed by the Commission under the provisions of 
                paragraphs (1)(B) and (2).
            ``(4) Notification to congress.--The President and the 
        Commission shall notify the appropriate committees of the 
        Congress of any determinations made under paragraph (1), (2), 
        or (3).
            ``(5) Miscellaneous.--Any Presidential decisions made under 
        the provisions of this subsection shall not be subject to 
        judicial review.''.
    (c) Effective Dates.--The amendments made by this section shall not 
apply to any proceeding commenced before the date of enactment of this 
Act.

SEC. 304. FAMILY VIEWING EMPOWERMENT.

    (a) Findings.--The Congress makes the following findings:
            (1) Television is pervasive in daily life and exerts a 
        powerful influence over the perceptions of viewers, especially 
        children, concerning the society in which we live.
            (2) Children completing elementary school have been exposed 
        to 25 or more hours of television per week and as many as 11 
        hours per day.
            (3) Children completing elementary school have been exposed 
        to an estimated average of 8,000 murders and 100,000 acts of 
        violence on television.
            (4) Studies indicate that the exposure of young children to 
        such levels of violent programming correlates to an increased 
        tendency toward and tolerance of violent and aggressive 
        behavior in later years.
            (5) Studies also suggest that the depiction of other 
        material such as sexual conduct in a cavalier and amoral 
        context may undermine the ability of parents to instill in 
        their children responsible attitudes regarding such activities.
            (6) Studies also suggest that a significant relationship 
        exists between exposure to television violence and antisocial 
        acts, including serious, violent criminal offenses.
            (7) Parents and other viewers are increasingly demanding 
        that they be empowered to make and implement viewing choices 
        for themselves and their families.
            (8) The public is becoming increasingly aware of and 
        concerned about objectionable video programming content.
            (9) The broadcast television industry and other video 
        programmers have a responsibility to assess the impact of their 
        work and to understand the damage that comes from the 
        incessant, repetitive, mindless violence and irresponsible 
        content.
            (10) The broadcast television industry and other video 
        programming distributors should be committed to facilitating 
        viewers' access to the information and capabilities required to 
        prevent the exposure of their children to excessively violent 
        and otherwise objectionable and harmful video programming.
            (11) The technology for implementing individual viewing 
        choices is rapidly advancing and numerous options for viewer 
        control are or soon will be available in the marketplace at 
        affordable prices.
            (12) There is a compelling national interest in ensuring 
        that parents are provided with the information and capabilities 
        required to prevent the exposure of their children to 
        excessively violent and otherwise objectionable and harmful 
        video programming.
    (b) Policy.--It is the policy of the United States to--
            (1) encourage broadcast television, cable, satellite, 
        syndication, other video programming distributors, and relevant 
        related industries (in consultation with appropriate public 
        interest groups and interested individuals from the private 
        sector) to--
                    (A) establish a technology fund to encourage 
                television and electronics equipment manufacturers to 
                facilitate the development of technology which would 
                empower parents to block programming they deem 
                inappropriate for their children;
                    (B) report to the viewing public on the status of 
                the development of affordable, easy to use blocking 
                technology; and
                    (C) establish and promote effective procedures, 
                standards, systems, advisories, or other mechanisms for 
                ensuring that users have easy and complete access to 
                the information necessary to effectively utilize 
                blocking technology; and
            (2) evaluate whether, not later than 1 year after the date 
        of enactment of this Act, industry-wide procedures, standards, 
        systems advisories, or other mechanisms established by the 
        broadcast television, cable satellite, syndication, other video 
        programming distribution, and relevant related industries--
                    (A) are informing viewers regarding their options 
                to utilize blocking technology; and
                    (B) encouraging the development of blocking 
                technologies.
    (c) GAO Audit.--
            (1) Audit required.--No later than 18 months after the date 
        of the enactment of this Act, the Comptroller General shall 
        submit to Congress an evaluation of--
                    (A) the proliferation of new and existing blocking 
                technology;
                    (B) the accessibility of information to empower 
                viewing choices; and
                    (C) the consumer satisfaction with information and 
                technological solutions.
            (2) Contents of evaluation.--The evaluation shall--
                    (A) describe the blocking technology available to 
                viewers including the costs thereof; and
                    (B) assess the extent of consumer knowledge and 
                attitudes toward available blocking technologies;
            (3) describe steps taken by broadcast, cable, satellite, 
        syndication, and other video programming distribution services 
        to inform the public and promote the availability of viewer 
        empowerment technologies, devices, and techniques;
            (4) evaluate the degree to which viewer empowerment 
        technology is being utilized;
            (5) assess consumer satisfaction with technological 
        options; and
            (6) evaluate consumer demand for information and 
        technological solutions.

SEC. 305. PARENTAL CHOICE IN TELEVISION PROGRAMMING.

    (a) Findings.--The Congress makes the following findings:
            (1) Television influences children's perception of the 
        values and behavior that are common and acceptable in society.
            (2) Television station operators, cable television system 
        operators, and video programmers should follow practices in 
        connection with video programming that take into consideration 
        that television broadcast and cable programming has established 
        a uniquely pervasive presence in the lives of American 
        children.
            (3) The average American child is exposed to 25 hours of 
        television each week and some children are exposed to as much 
        as 11 hours of television a day.
            (4) Studies have shown that children exposed to violent 
        video programming at a young age have a higher tendency for 
        violent and aggressive behavior later in life than children not 
        so exposed, and that children exposed to violent video 
        programming are prone to assume that acts of violence are 
        acceptable behavior.
            (5) Children in the United States are, on average, exposed 
        to an estimated 8,000 murders and 100,000 acts of violence on 
        television by the time the child completes elementary school.
            (6) Studies indicate that children are affected by the 
        pervasiveness and casual treatment of sexual material on 
        television, eroding the ability of parents to develop 
        responsible attitudes and behavior in their children.
            (7) Parents express grave concern over violent and sexual 
        video programming and strongly support technology that would 
        give them greater control to block video programming in the 
        home that they consider harmful to their children.
            (8) There is a compelling governmental interest in 
        empowering parents to limit the negative influences of video 
        programming that is harmful to children.
            (9) Providing parents with timely information about the 
        nature of upcoming video programming and with the technological 
        tools that allow them easily to block violent, sexual, or other 
        programming that they believe harmful to their children is the 
        least restrictive and most narrowly tailored means of achieving 
        that compelling governmental interest.
    (b) Establishment of Television Rating Code.--Section 303 of the 
Act (47 U.S.C. 303) is amended by adding at the end the following:
    ``(v) Prescribe--
            ``(1) on the basis of recommendations from an advisory 
        committee established by the Commission that is composed of 
        parents, television broadcasters, television programming 
        producers, cable operators, appropriate public interest groups, 
        and other interested individuals from the private sector and 
        that is fairly balanced in terms of political affiliation, the 
        points of view represented, and the functions to be performed 
        by the committee, guidelines and recommended procedures for the 
        identification and rating of video programming that contains 
        sexual, violent, or other indecent material about which parents 
        should be informed before it is displayed to children, provided 
        that nothing in this paragraph shall be construed to authorize 
        any rating of video programming on the basis of its political 
        or religious content; and
            ``(2) with respect to any video programming that has been 
        rated (whether or not in accordance with the guidelines and 
        recommendations prescribed under paragraph (1)), rules 
        requiring distributors of such video programming to transmit 
        such rating to permit parents to block the display of video 
        programming that they have determined is inappropriate for 
        their children.''.
    (c) Requirement for Manufacture of Televisions That Block 
Programs.--Section 303 of the Act, as amended by subsection (a), is 
further amended by adding at the end the following:
    ``(w) Require, in the case of apparatus designed to receive 
television signals that are manufactured in the United States or 
imported for use in the United States and that have a picture screen 13 
inches or greater in size (measured diagonally), that such apparatus be 
equipped with circuitry designed to enable viewers to block display of 
all programs with a common rating, except as otherwise permitted by 
regulations pursuant to section 330(c)(4).''.
    (d) Shipping or Importing of Televisions That Block Programs.--
            (1) Regulations.--Section 330 of the Communications Act of 
        1934 (47 U.S.C. 330) is amended--
                    (A) by redesignating subsection (c) as subsection 
                (d); and
                    (B) by adding after subsection (b) the following 
                new subsection (c):
    ``(c)(1) Except as provided in paragraph (2), no person shall ship 
in interstate commerce, manufacture, assemble, or import from any 
foreign country into the United States any apparatus described in 
section 303(w) of this Act except in accordance with rules prescribed 
by the Commission pursuant to the authority granted by that section.
    ``(2) This subsection shall not apply to carriers transporting 
apparatus referred to in paragraph (1) without trading it.
    ``(3) The rules prescribed by the Commission under this subsection 
shall provide for the oversight by the Commission of the adoption of 
standards by industry for blocking technology. Such rules shall require 
that all such apparatus be able to receive the rating signals which 
have been transmitted by way of line 21 of the vertical blanking 
interval and which conform to the signal and blocking specifications 
established by industry under the supervision of the Commission.
    ``(4) As new video technology is developed, the Commission shall 
take such action as the Commission determines appropriate to ensure 
that blocking service continues to be available to consumers. If the 
Commission determines that an alternative blocking technology exists 
that--
            ``(A) enables parents to block programming based on 
        identifying programs without ratings,
            ``(B) is available to consumers at a cost which is 
        comparable to the cost of technology that allows parents to 
        block programming based on common ratings, and
            ``(C) will allow parents to block a broad range of programs 
        on a multichannel system as effectively and as easily as 
        technology that allows parents to block programming based on 
        common ratings,
the Commission shall amend the rules prescribed pursuant to section 
303(w) to require that the apparatus described in such section be 
equipped with either the blocking technology described in such section 
or the alternative blocking technology described in this paragraph.''.
            (2) Conforming amendment.--Section 330(d) of such Act, as 
        redesignated by subsection (a)(1), is amended by striking 
        ``section 303(s), and section 303(u)'' and inserting in lieu 
        thereof ``and sections 303(s), 303(u), and 303(w)''.
    (e) Applicability and Effective Dates.--
            (1) Applicability of rating provision.--The amendment made 
        by subsection (b) of this section shall take effect 1 year 
        after the date of enactment of this Act, but only if the 
        Commission determines, in consultation with appropriate public 
        interest groups and interested individuals from the private 
        sector, that distributors of video programming have not, by 
        such date--
                    (A) established voluntary rules for rating video 
                programming that contains sexual, violent, or other 
                indecent material about which parents should be 
                informed before it is displayed to children, and such 
                rules are acceptable to the Commission; and
                    (B) agreed voluntarily to broadcast signals that 
                contain ratings of such programming.
            (2) Effective date of manufacturing provision.--In 
        prescribing regulations to implement the amendment made by 
        subsection (c), the Federal Communications Commission shall, 
        after consultation with the television manufacturing industry, 
        specify the effective date for the applicability of the 
        requirement to the apparatus covered by such amendment, which 
        date shall not be less than one year after the date of the 
        enactment of this Act.

SEC. 306. TERM OF LICENSES.

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

SEC. 307. BROADCAST LICENSE RENEWAL PROCEDURES.

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

SEC. 308. EXCLUSIVE FEDERAL JURISDICTION OVER DIRECT BROADCAST 
              SATELLITE SERVICE.

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

SEC. 309. AUTOMATED SHIP DISTRESS AND SAFETY SYSTEMS.

    Notwithstanding any provision of the Communications Act of 1934 or 
any other provision of law or regulation, a ship documented under the 
laws of the United States operating in accordance with the Global 
Maritime Distress and Safety System provisions of the Safety of Life at 
Sea Convention shall not be required to be equipped with a radio 
telegraphy station operated by one or more radio officers or operators. 
This section shall take effect for each vessel upon a determination by 
the United States Coast Guard that such vessel has the equipment 
required to implement the Global Maritime Distress and Safety System 
installed and operating in good working condition.

SEC. 310. RESTRICTIONS ON OVER-THE-AIR RECEPTION DEVICES.

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

SEC. 311. DBS SIGNAL SECURITY.

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

SEC. 312. DELEGATION OF EQUIPMENT TESTING AND CERTIFICATION TO PRIVATE 
              LABORATORIES.

    Section 302 of the Act (47 U.S.C. 302) is amended by adding at the 
end the following:
    ``(e) Use of Private Organizations for Testing and Certification.--
The Commission may--
            ``(1) authorize the use of private organizations for 
        testing and certifying the compliance of devices or home 
        electronic equipment and systems with regulations promulgated 
        under this section;
            ``(2) accept as prima facie evidence of such compliance the 
        certification by any such organization; and
            ``(3) establish such qualifications and standards as it 
        deems appropriate for such private organizations, testing, and 
        certification.''.

                     TITLE IV--EFFECT ON OTHER LAWS

SEC. 401. RELATIONSHIP TO OTHER LAWS.

    (a) Modification of Final Judgment.--This Act and the amendments 
made by title I of this Act shall supersede only the following sections 
of the Modification of Final Judgment:
            (1) Section II(C) of the Modification of Final Judgment, 
        relating to deadline for procedures for equal access 
        compliance.
            (2) Section II(D) of the Modification of Final Judgment, 
        relating to line of business restrictions.
            (3) Section VIII(A) of the Modification of Final Judgment, 
        relating to manufacturing restrictions.
            (4) Section VIII(C) of the Modification of Final Judgment, 
        relating to standard for entry into the interexchange market.
            (5) Section VIII(D) of the Modification of Final Judgment, 
        relating to prohibition on entry into electronic publishing.
            (6) Section VIII(H) of the Modification of Final Judgment, 
        relating to debt ratios at the time of transfer.
            (7) Section VIII(J) of the Modification of Final Judgment, 
        relating to prohibition on implementation of the plan of 
        reorganization before court approval.
    (b) Antitrust Laws.--Nothing in this Act or in the amendments made 
by this Act shall be construed to modify, impair, or supersede the 
applicability of any of the antitrust laws.
    (c) Federal, State, and Local Law.--(1) Parts II and III of title 
II of the Communications Act of 1934 shall not be construed to modify, 
impair, or supersede Federal, State, or local law unless expressly so 
provided in such part.
    (2) State Tax Savings Provision.--Notwithstanding paragraph (1), 
nothing in this Act or the amendments made by this Act shall be 
construed to modify, impair, or supersede, or authorize the 
modification, impairment, or supersession of, any State or local law 
pertaining to taxation, except as provided in sections 243(e) and 622 
of the Communications Act of 1934 and section 402 of this Act.
    (d) Application to Other Action.--This Act shall supersede the 
final judgment entered December 21, 1984 and as restated January 11, 
1985, in the action styled United States v. GTE Corp., Civil Action No. 
83-1298, in the United States District Court for the District of 
Columbia, and any judgment or order with respect to such action entered 
on or after December 21, 1984, and such final judgment shall not be 
enforced with respect to conduct occurring after the date of the 
enactment of this Act.
    (e) Inapplicability of Final Judgment to Wireless Successors.--No 
person shall be considered to be an affiliate, a successor, or an 
assign of a Bell operating company under section III of the 
Modification of Final Judgment by reason of having acquired wireless 
exchange assets or operations previously owned by a Bell operating 
company or an affiliate of a Bell operating company.
    (f) Antitrust Laws.--As used in this section, the term ``antitrust 
laws'' has the meaning given it in subsection (a) of the first section 
of the Clayton Act (15 U.S.C. 12(a)), except that such term includes 
the Act of June 19, 1936 (49 Stat. 1526; 15 U.S.C. 13 et seq.), 
commonly known as the Robinson Patman Act, and section 5 of the Federal 
Trade Commission Act (15 U.S.C. 45) to the extent that such section 5 
applies to unfair methods of competition.
    (g) Additional Definitions.--As used in this section, the terms 
``Modification of Final Judgment'' and ``Bell operating company'' have 
the same meanings provided such terms in section 3 of the 
Communications Act of 1934.

SEC. 402. PREEMPTION OF LOCAL TAXATION WITH RESPECT TO DBS SERVICE.

    (a) Preemption.--A provider of direct-to-home satellite service 
shall be exempt from the collection or remittance, or both, of any tax 
or fee imposed by any local taxing jurisdiction with respect to the 
provision of direct-to-home satellite service. Nothing in this section 
shall be construed to exempt from collection or remittance any tax or 
fee on the sale of equipment.
    (b) Definitions.--For the purposes of this section--
            (1) Direct-to-home satellite service.--The term ``direct-
        to-home satellite service'' means the transmission or 
        broadcasting by satellite of programming directly to the 
        subscribers' premises without the use of ground receiving or 
        distribution equipment, except at the subscribers' premises or 
        in the uplink process to the satellite.
            (2) Provider of direct-to-home satellite service.--For 
        purposes of this section, a ``provider of direct-to-home 
        satellite service'' means a person who transmits, broadcasts, 
        sells, or distributes direct-to-home satellite service.
            (3) Local taxing jurisdiction.--The term ``local taxing 
        jurisdiction'' means any municipality, city, county, township, 
        parish, transportation district, or assessment jurisdiction, or 
        any other local jurisdiction in the territorial jurisdiction of 
        the United States with the authority to impose a tax or fee, 
        but does not include a State.
            (4) State.--The term ``State'' means any of the several 
        States, the District of Columbia, or any territory or 
        possession of the United States.
            (5) Tax or fee.--The terms ``tax'' and ``fee'' mean any 
        local sales tax, local use tax, local intangible tax, local 
        income tax, business license tax, utility tax, privilege tax, 
        gross receipts tax, excise tax, franchise fees, local 
        telecommunications tax, or any other tax, license, or fee that 
        is imposed for the privilege of doing business, regulating, or 
        raising revenue for a local taxing jurisdiction.
    (c) Preservation of State Authority.--This section shall not be 
construed to prevent taxation of a provider of direct-to-home satellite 
service by a State or to prevent a local taxing jurisdiction from 
receiving revenue derived from a tax or fee imposed and collected by a 
State.

SEC. 403. PROTECTION OF MINORS AND CLARIFICATION OF CURRENT LAWS 
              REGARDING COMMUNICATION OF OBSCENE AND INDECENT MATERIALS 
              THROUGH THE USE OF COMPUTERS.

    (a) Protection of Minors.--
            (1) Generally.--Section 1465 of title 18, United States 
        Code, is amended by adding at the end the following:
    ``Whoever intentionally communicates by computer, in or affecting 
interstate or foreign commerce, to any person the communicator believes 
has not attained the age of 18 years, any material that, in context, 
depicts or describes, in terms patently offensive as measured by 
contemporary community standards, sexual or excretory activities or 
organs, or attempts to do so, shall be fined under this title or 
imprisoned not more than five years, or both.''.
            (2) Conforming Amendments Relating to Forfeiture.--
                    (A) Section 1467(a)(1) of title 18, United States 
                Code, is amended by inserting ``communicated,'' after 
                ``transported,''.
                    (B) Section 1467 of title 18, United States Code, 
                is amended in subsection (a)(1), by striking 
                ``obscene''.
                    (C) Section 1469 of title 18, United States Code, 
                is amended by inserting ``communicated,'' after 
                ``transported,'' each place it appears.
    (b) Clarification of Current Laws Regarding Communication of 
Obscene Materials Through the Use of Computers.--
            (1) Importation or transportation.--Section 1462 of title 
        18, United States Code, is amended--
                    (A) in the first undesignated paragraph, by 
                inserting ``(including by computer) after ``thereof''; 
                and
                    (B) in the second undesignated paragraph--
                            (i) by inserting ``or receives,'' after 
                        ``takes'';
                            (ii) by inserting ``, or by computer,'' 
                        after ``common carrier''; and
                            (iii) by inserting ``or importation'' after 
                        ``carriage''.
            (2) Transportation for purposes of sale or distribution.--
        The first undesignated paragraph of section 1465 of title 18, 
        United States Code, is amended--
                    (A) by striking ``transports in'' and inserting 
                ``transports or travels in, or uses a facility or means 
                of,'';
                    (B) by inserting ``(including a computer in or 
                affecting such commerce)'' after ``foreign commerce'' 
                the first place it appears; and
                    (C) by striking ``, or knowingly travels in'' and 
                all that follows through ``obscene material in 
                interstate or foreign commerce,'' and inserting ``of''.

                          TITLE V--DEFINITIONS

SEC. 501. DEFINITIONS.

    (a) Additional Definitions.--Section 3 of the Act (47 U.S.C. 153) 
is amended--
            (1) in subsection (r)--
                    (A) by inserting ``(A)'' after ``means''; and
                    (B) by inserting before the period at the end the 
                following: ``, or (B) service provided through a system 
                of switches, transmission equipment, or other 
                facilities (or combination thereof) by which a 
                subscriber can originate and terminate a 
                telecommunications service within a State but which 
                does not result in the subscriber incurring a telephone 
                toll charge''; and
            (2) by adding at the end thereof the following:
            ``(35) Affiliate.--The term `affiliate', when used in 
        relation to any person or entity, means another person or 
        entity who owns or controls, is owned or controlled by, or is 
        under common ownership or control with, such person or entity.
            ``(36) Bell operating company.--The term `Bell operating 
        company' means--
                    ``(A) Bell Telephone Company of Nevada, Illinois 
                Bell Telephone Company, Indiana Bell Telephone Company, 
                Incorporated, Michigan Bell Telephone Company, New 
                England Telephone and Telegraph Company, New Jersey 
                Bell Telephone Company, New York Telephone Company, U S 
                West Communications Company, South Central Bell 
                Telephone Company, Southern Bell Telephone and 
                Telegraph Company, Southwestern Bell Telephone Company, 
                The Bell Telephone Company of Pennsylvania, The 
                Chesapeake and Potomac Telephone Company, The 
                Chesapeake and Potomac Telephone Company of Maryland, 
                The Chesapeake and Potomac Telephone Company of 
                Virginia, The Chesapeake and Potomac Telephone Company 
                of West Virginia, The Diamond State Telephone Company, 
                The Ohio Bell Telephone Company, The Pacific Telephone 
                and Telegraph Company, or Wisconsin Telephone Company;
                    ``(B) any successor or assign of any such company 
                that provides telephone exchange service.
            ``(37) Cable system.--The term `cable system' has the 
        meaning given such term in section 602(7) of this Act.
            ``(38) Customer premises equipment.--The term `customer 
        premises equipment' means equipment employed on the premises of 
        a person (other than a carrier) to originate, route, or 
        terminate telecommunications.
            ``(39) Dialing parity.--The term `dialing parity' means 
        that a person that is not an affiliated enterprise of a local 
        exchange carrier is able to provide telecommunications services 
        in such a manner that customers have the ability to route 
        automatically, without the use of any access code, their 
        telecommunications to the telecommunications services provider 
        of the customer's designation from among 2 or more 
        telecommunications services providers (including such local 
        exchange carrier).
            ``(40) Exchange access.--The term `exchange access' means 
        the offering of telephone exchange services or facilities for 
        the purpose of the origination or termination of interLATA 
        services.
            ``(41) Information service.--The term `information service' 
        means the offering of a capability for generating, acquiring, 
        storing, transforming, processing, retrieving, utilizing, or 
        making available information via telecommunications, and 
        includes electronic publishing, but does not include any use of 
        any such capability for the management, control, or operation 
        of a telecommunications system or the management of a 
        telecommunications service. For purposes of section 242, such 
        term shall not include the provision of video programming 
        directly to subscribers.
            ``(42) Interlata service.--The term `interLATA service' 
        means telecommunications between a point located in a local 
        access and transport area and a point located outside such 
        area.
            ``(43) Local access and transport area.--The term `local 
        access and transport area' or `LATA' means a contiguous 
        geographic area--
                    ``(A) established by a Bell operating company such 
                that no exchange area includes points within more than 
                1 metropolitan statistical area, consolidated 
                metropolitan statistical area, or State, except as 
                expressly permitted under the Modification of Final 
                Judgment before the date of the enactment of this 
                paragraph; or
                    ``(B) established or modified by a Bell operating 
                company after the date of enactment of this paragraph 
                and approved by the Commission.
            ``(44) Local exchange carrier.--The term `local exchange 
        carrier' means any person that is engaged in the provision of 
        telephone exchange service or exchange access. Such term does 
        not include a person insofar as such person is engaged in the 
        provision of a commercial mobile service under section 332(c), 
        except to the extent that the Commission finds that such 
        service as provided by such person in a State is a replacement 
        for a substantial portion of the wireline telephone exchange 
        service within such State.
            ``(45) Modification of final judgment.--The term 
        `Modification of Final Judgment' means the order entered August 
        24, 1982, in the antitrust action styled United States v. 
        Western Electric, Civil Action No. 82-0192, in the United 
        States District Court for the District of Columbia, and 
        includes any judgment or order with respect to such action 
        entered on or after August 24, 1982.
            ``(46) Number portability.--The term `number portability' 
        means the ability of users of telecommunications services to 
        retain existing telecommunications numbers without impairment 
        of quality, reliability, or convenience when changing from one 
        provider of telecommunications services to another, as long as 
        such user continues to be located within the area served by the 
        same central office of the carrier from which the user is 
        changing.
            ``(47) Rural telephone company.--The term `rural telephone 
        company' means a local exchange carrier operating entity to the 
        extent that such entity--
                    ``(A) provides common carrier service to any local 
                exchange carrier study area that does not include 
                either--
                            ``(i) any incorporated place of 10,000 
                        inhabitants or more, or any part thereof, based 
                        on the most recent available population 
                        statistics of the Bureau of the Census; or
                            ``(ii) any territory, incorporated or 
                        unincorporated, included in an urbanized area, 
                        as defined by the Bureau of the Census as of 
                        August 10, 1993;
                    ``(B) provides telephone exchange service, 
                including telephone exchange access service, to fewer 
                than 50,000 access lines;
                    ``(C) provides telephone exchange service to any 
                local exchange carrier study area with fewer than 
                100,000 access lines; or
                    ``(D) has less than 15 percent of its access lines 
                in communities of more than 50,000 on the date of 
                enactment of this paragraph.
            ``(48) Telecommunications.--The term `telecommunications' 
        means the transmission, between or among points specified by 
        the subscriber, of information of the subscriber's choosing, 
        without change in the form or content of the information as 
        sent and received, by means of an electromagnetic transmission 
        medium, including all instrumentalities, facilities, apparatus, 
        and services (including the collection, storage, forwarding, 
        switching, and delivery of such information) essential to such 
        transmission.
            ``(49) Telecommunications equipment.--The term 
        `telecommunications equipment' means equipment, other than 
        customer premises equipment, used by a carrier to provide 
        telecommunications services, and includes software integral to 
        such equipment (including upgrades).
            ``(50) Telecommunications service.--The term 
        `telecommunications service' means the offering, on a common 
        carrier basis, of telecommunications facilities, or of 
        telecommunications by means of such facilities. Such term does 
        not include an information service.''.
    (b) Stylistic Consistency.--Section 3 of the Act (47 U.S.C. 153) is 
amended--
            (1) in subsections (e) and (n), by redesignating clauses 
        (1), (2) and (3), as clauses (A), (B), and (C), respectively;
            (2) in subsection (w), by redesignating paragraphs (1) 
        through (5) as subparagraphs (A) through (E), respectively;
            (3) in subsections (y) and (z), by redesignating paragraphs 
        (1) and (2) as subparagraphs (A) and (B), respectively;
            (4) by redesignating subsections (a) through (ff) as 
        paragraphs (1) through (32);
            (5) by indenting such paragraphs 2 em spaces;
            (6) by inserting after the designation of each such 
        paragraph--
                    (A) a heading, in a form consistent with the form 
                of the heading of this subsection, consisting of the 
                term defined by such paragraph, or the first term so 
                defined if such paragraph defines more than one term; 
                and
                    (B) the words ``The term'';
            (7) by changing the first letter of each defined term in 
        such paragraphs from a capital to a lower case letter (except 
        for ``United States'', ``State'', ``State commission'', and 
        ``Great Lakes Agreement''); and
            (8) by reordering such paragraphs and the additional 
        paragraphs added by subsection (a) in alphabetical order based 
        on the headings of such paragraphs and renumbering such 
        paragraphs as so reordered.
    (c) Conforming Amendments.--The Act is amended--
            (1) in section 225(a)(1), by striking ``section 3(h)'' and 
        inserting ``section 3'';
            (2) in section 332(d), by striking ``section 3(n)'' each 
        place it appears and inserting ``section 3''; and
            (3) in sections 621(d)(3), 636(d), and 637(a)(2), by 
        striking ``section 3(v)'' and inserting ``section 3''.

              TITLE VI--SMALL BUSINESS COMPLAINT PROCEDURE

SEC. 601. COMPLAINT PROCEDURE.

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

    Amend the title so as to read: ``An Act to promote competition and reduce 
regulation in order to secure lower prices and higher quality services for 
American telecommunications consumers and encourage the rapid deployment of new 
telecommunications technologies.''.
            Attest:

                                                                          Clerk.
104th CONGRESS

  1st Session

                                 S. 652

_______________________________________________________________________

                               AMENDMENTS
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