133
HR 3626 RS
‘‘(A) lacks economies of scale or scope, as
determined in accordance with regulations pre-
scribed by the Commission pursuant to this
subsection; and
‘‘(B) is a common carrier which offers tele-
phone exchange service, telephone exchange ac-
cess service, and any other service that is within
the definition of universal service, to all cus-
tomers without preference throughout one or
more exchange areas in existence on the date of
enactment of this subsection.
‘‘(3) TERMS
AND
CONDITIONS
OF
REGULA-
TIONS.—The regulations prescribed by the Commis-
sion pursuant to this subsection—
‘‘(A) shall not require any local exchange
carrier to take any action that is economically
unreasonable or that is contrary to the public
interest or to provide telecommunications facili-
ties and functions to any qualifying carrier that
is not reasonably proximate to such local ex-
change carrier;
‘‘(B) shall permit, but shall not require,
the joint ownership or operation of public
switched telecommunications network facilities,
134
HR 3626 RS
functions, and services by or among the local
exchange carrier and the qualifying carrier;
‘‘(C) shall ensure that a local exchange
carrier shall not be treated by the Commission
or any State commission as a common carrier
for hire, or as offering common carrier services,
with respect to any technology, information, fa-
cilities, or functions made available to a qualify-
ing carrier pursuant to this subsection;
‘‘(D) shall ensure that local exchange car-
riers make such technology, information, facili-
ties, or functions available to qualifying carriers
on fair and reasonable terms and conditions
that permit such qualifying carriers to fully
benefit from the economies of scale and scope
of the providing local exchange carrier, as de-
termined in accordance with guidelines pre-
scribed by the Commission in such regulations;
‘‘(E) shall establish conditions that pro-
mote cooperation between local exchange car-
riers and qualifying carriers; and
‘‘(F) shall not require any local exchange
carrier to engage in any infrastructure sharing
agreement for any geographic area where such
135
HR 3626 RS
carrier is required to provide services subject to
State regulation.
‘‘(4) INFORMATION CONCERNING DEPLOYMENT
OF NEW SERVICES AND EQUIPMENT.—Any local ex-
change carrier that has entered into an agreement
with a qualifying carrier under this subsection shall
provide to each party to such agreement timely in-
formation on the planned deployment of tele-
communications services and equipment, including
software integral to such telecommunications serv-
ices and equipment, including upgrades.’’.
(b) PREEMPTION OF FRANCHISING AUTHORITY REG-
ULATION OF TELECOMMUNICATIONS SERVICES.—
(1) TELECOMMUNICATIONS SERVICES.—Section
621(b) of the Communications Act of 1934 (47
U.S.C. 541(c)) is amended by adding at the end
thereof the following new paragraph:
‘‘(3)(A) To the extent that a cable operator or affili-
ate thereof is engaged in the provision of telecommuni-
cations 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.
136
HR 3626 RS
‘‘(B) A franchising authority may not impose any re-
quirement that has the purpose or effect of prohibiting,
limiting, restricting, or conditioning the provision of a tele-
communications 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 tele-
communications service, or
‘‘(ii) to discontinue the operation of a cable sys-
tem, to the extent such cable system is used for the
provision of a telecommunications service, by reason
of the failure of such cable operator or affiliate
thereof to obtain a franchise or franchise renewal
under this title with respect to the provision of such
telecommunications service.
‘‘(D) A franchising authority may not require a cable
operator to provide any telecommunications service or fa-
cilities as a condition of the initial grant of a franchise
or a franchise renewal.’’.
(2) FRANCHISE FEES.—Section 622(b) of the
Communications Act of 1934 (47 U.S.C. 542(b)) is
amended by inserting ‘‘to provide cable services’’ im-
mediately before the period at the end of the first
sentence thereof.
137
HR 3626 RS
(c) CONFORMING AMENDMENT.—Section 2(b) of the
Communications Act of 1934 (47 U.S.C. 152(b)) is
amended by inserting ‘‘201 (c) and (d),’’ after ‘‘Except
as provided in sections’’.
SEC. 303. TELECOMMUNICATIONS SERVICES FOR EDU-
CATIONAL INSTITUTIONS, HEALTH CARE IN-
STITUTIONS, AND LIBRARIES.
Title II of the Communications Act of 1934 is
amended by adding at the end the following new section:
‘‘SEC. 234. TELECOMMUNICATIONS SERVICES FOR EDU-
CATIONAL INSTITUTIONS, HEALTH CARE IN-
STITUTIONS, AND LIBRARIES.
‘‘(a) PROMOTION OF DELIVERY OF ADVANCED SERV-
ICES.—In fulfillment of its obligation under section 1 to
make available to all the people of the United States a
rapid, efficient, nationwide, and worldwide communica-
tions service, the Commission shall promote the provision
of advanced telecommunications services by wire, wireless,
cable, and satellite technologies to—
‘‘(1) educational institutions;
‘‘(2) health care institutions; and
‘‘(3) public libraries.
‘‘(b) ANNUAL SURVEY REQUIRED.—The National
Telecommunications and Information Administration shall
conduct a nationwide survey of the availability of advanced
138
HR 3626 RS
telecommunications services to educational institutions,
health care institutions, and public libraries. The Adminis-
tration shall complete the survey and release publicly the
results of such survey not later than one year after the
date of enactment of this section. The results of such sur-
vey shall include—
‘‘(1) the number of educational institutions and
classrooms, health care institutions, and public li-
braries;
‘‘(2) the number of educational institutions and
classrooms, health care institutions, and public li-
braries that have access to advanced telecommuni-
cations services; and
‘‘(3) the nature of the telecommunications fa-
cilities through which such educational institutions,
health care institutions, and public libraries obtain
access to advanced telecommunications services.
The National Telecommunications and Information Ad-
ministration shall update annually the survey required by
this section. The survey required under this subsection
shall be prepared in consultation with the Department of
Education, Department of Health and Human Services,
and such other Federal, State, and local departments,
agencies, and authorities that may maintain or have ac-
cess to information concerning the availability of advanced
139
HR 3626 RS
telecommunications services to educational institutions,
health care institutions, and libraries.
‘‘(c) RULEMAKING REQUIRED.—Within one year
after the date of enactment of this section, the Commis-
sion shall issue a notice of proposed rulemaking for the
purpose of adopting regulations that—
‘‘(1) enhance, to the extent technically feasible
and economically reasonable, the availability of ad-
vanced telecommunications services to all edu-
cational institutions and classrooms, health care in-
stitutions, and public libraries by the year 2000;
‘‘(2) ensure that appropriate functional require-
ments or performance standards, or both, including
interoperability standards, are established for tele-
communications systems or facilities that inter-
connect educational institutions, health care institu-
tions, and public libraries with the public switched
telecommunications network;
‘‘(3) define the circumstances under which a
carrier may be required to interconnect its tele-
communications network with educational institu-
tions, health care institutions, and public libraries;
‘‘(4) provide for either the establishment of
preferential rates for telecommunications services,
including advanced services, that are provided to
140
HR 3626 RS
educational institutions, health care institutions, and
public libraries, or the use of alternative mechanisms
to enhance the availability of advanced services to
these institutions; and
‘‘(5) address such other related matters as the
Commission may determine.
‘‘(d) FEASIBILITY STUDY.—The Commission shall
assess the feasibility of including postsecondary edu-
cational institutions in any regulations promulgated under
this section.
‘‘(e) DEFINITIONS.—For purposes of this section—
‘‘(1) the term ‘educational institutions’ means
elementary and secondary educational institutions;
and
‘‘(2) the term ‘health care institutions’ means
not-for-profit health care institutions, including hos-
pitals and clinics.’’.
SEC. 304. DISCRIMINATORY INTERCONNECTION.
Section 208 of the Communications Act of 1934 is
amended by adding at the end thereof the following new
subsection:
‘‘(c) EXPEDITED
REVIEW
OF
CERTAIN
COM-
PLAINTS.—The Commission shall issue a final order with
respect to any complaint arising from alleged violations
of the regulations and orders prescribed pursuant to sec-
141
HR 3626 RS
tion 201(c) within 180 days after the date such complaint
is filed.’’.
SEC. 305. EXPEDITED LICENSING OF NEW TECHNOLOGIES
AND SERVICES.
Section 7 of the Communications Act of 1934 (47
U.S.C. 157) is amended by adding at the end thereof the
following new subsection:
‘‘(c) LICENSING OF NEW TECHNOLOGIES.—
‘‘(1) EXPEDITED
RULEMAKING.—Within 24
months after making a determination under sub-
section (b) that a technology or service related to the
furnishing of telecommunications services is in the
public interest, the Commission shall, with respect to
any such service requiring a license or other author-
ization from the Commission, adopt and make effec-
tive regulations for—
‘‘(A) the provision of such technology or
service; and
‘‘(B) the filing of applications for the li-
censes or authorizations necessary to offer such
technology or service to the public, and shall act
on any such application within 24 months after
it is filed.
‘‘(2) REVIEW OF APPLICATIONS.—Any applica-
tion filed by a carrier under this subsection for the
142
HR 3626 RS
construction or extension of a line shall also be sub-
ject to section 214 and to any necessary approval by
the appropriate State commissions.’’.
SEC. 306. NEW OR EXTENDED LINES.
Section 214 of the Communications Act of 1934 (47
U.S.C. 214) is amended by adding at the end the following
new subsection:
‘‘(e) Any application filed under this section for au-
thority to construct or extend a line shall address the
means by which such construction or extension will meet
the network access needs of individuals with disabilities.’’.
SEC. 307. POLE ATTACHMENTS.
Section 224 of the Communications Act of 1934 (47
U.S.C. 244) is amended—
(1) in subsection (a)(4), by inserting after ‘‘sys-
tem’’ the following: ‘‘or a provider of telecommuni-
cations service’’;
(2) in subsection (c)(2)(B), by striking ‘‘cable
television services’’ and inserting ‘‘the services of-
fered via such attachments’’;
(3) by redesignating subsection (d)(2) as sub-
section (d)(4); and
(4) by striking subsection (d)(1) and inserting
the following:
143
HR 3626 RS
‘‘(d)(1) For purposes of subsection (b) of this section,
the Commission shall, no later than 1 year after the date
of enactment of the Antitrust and Communications Re-
form Act of 1994, prescribe regulations for ensuring that
utilities charge just and reasonable and nondiscriminatory
rates for pole attachments provided to all providers of tele-
communications services, including such attachments used
by cable television systems to provide telecommunications
services (as defined in section 3(oo) of this Act). Such reg-
ulations shall—
‘‘(A) recognize that the entire pole, duct, con-
duit, or right-of-way other than the usable space is
of equal benefit to all attachments to the pole, duct,
conduit, or right-of-way and therefore apportion the
cost of the space other than the usable space equally
among all such attachments,
‘‘(B) recognize that the usable space is of pro-
portional benefit to all entities attached to the pole,
duct, conduit, or right-of-way and therefore appor-
tion the cost of the usable space according to the
percentage of usable space required for each entity,
and
‘‘(C) allow for reasonable terms and conditions
relating to health, safety, and the provision of reli-
able utility service.
144
HR 3626 RS
‘‘(2) The final regulations prescribed by the Commis-
sion pursuant to subparagraphs (A), (B), and (C) of para-
graph (1) shall not apply to a pole attachment used by
a cable television system solely to provide cable service as
defined in section 602(6) of this Act. The rates for pole
attachments used for such purposes shall assure a utility
the recovery of not less than the additional costs of provid-
ing pole attachments, nor more than an amount deter-
mined by multiplying the percentage of the total usable
space, or the percentage of the total duct, conduit, or
right-of-way capacity, which is occupied by the pole at-
tachment by the sum of the operating expenses and actual
capital costs of the utility attributable to the entire pole,
duct, conduit, or right-of-way.
‘‘(3) For all providers of telecommunications services
except members of the exchange carrier association estab-
lished in 47 C.F.R. 69.601 as of December 31, 1993, upon
enactment of this paragraph and until the Commission
promulgates its final regulations pursuant to subpara-
graphs (A), (B), and (C) of paragraph (1), the rate for-
mula contained in any joint use pole attachment agree-
ment between the electric utility and the largest local ex-
change carrier having such a joint use agreement in the
utility’s service area, in effect on January 1, 1994, shall
also apply to the pole attachments in the utility’s service
145
HR 3626 RS
area, but if no such joint use agreement containing a rate
formula exists, then the pole attachment rate shall be the
rate applicable under paragraph (2) to cable television sys-
tems which solely provide cable service as defined in sec-
tion 602(6) of this Act. Disputes concerning the applica-
bility of a joint use agreement shall be resolved by the
Commission or the States, as appropriate.’’.
SEC. 308. CIVIC PARTICIPATION.
(a) POLICIES TO ENHANCE CIVIC DIALOGUE.—The
Commission, in consultation with the National Tele-
communications and Information Administration, shall
study policies that will enhance civic participation through
the national information infrastructure. The study shall
request and record public comments on Federal policies
that would enhance and expand democratic dialogue
through national computer and data networks. The study
shall examine, but not be limited to, the social benefits
of flat rate pricing for access to computer and data net-
works, the policies which will determine how access to
computer networks will be priced, including the access
needs of individuals with disabilities, and the appropriate
role of common carriers in the development of national
computer and data networks. The Commission shall re-
ceive comments in both paper and electronic formats and
shall establish an online discussion group accessed
146
HR 3626 RS
through the national information infrastructure to encour-
age citizen participation in the study.
(b) PARTICIPATION IN REGULATORY AFFAIRS.—The
Commission, in consultation with the Office of Consumer
Affairs, shall conduct a study of how to encourage citizen
participation in regulatory issues and, within 120 days
from the date of enactment of this Act, report to Congress
on the results of the study.
SEC. 309. COMPETITION BY SMALL BUSINESS AND MINOR-
ITY-OWNED BUSINESS CONCERNS.
Title II of the Communications Act of 1934 is
amended by adding at the end the following new section:
‘‘SEC. 235. POLICY AND RULEMAKING TO PROMOTE DIVER-
SITY OF OWNERSHIP.
‘‘(a) FINDINGS.—The Congress finds that—
‘‘(1) in furtherance of the purposes of this Act
to make available to all people of the United States
a rapid and efficient communications service, and
for the purposes of promoting a diversity of opinion
in the broadcasting service, the Commission has es-
tablished regulations and policies to promote owner-
ship of broadcasting services by members of minority
groups;
‘‘(2) these regulations have served to promote
more vigorous communications on public issues, to
147
HR 3626 RS
broaden the number and variety of stakeholders in
the American economy, and to promote innovation
by and creativity by Americans of different cultures
and national origins, and thereby have served to
build a more cohesive and productive society;
‘‘(3) while the Commission has adopted regula-
tions to promote participation by businesses owned
by members of minority groups and women, and
small businesses, in auctions for certain spectrum-
based services which promote diversity of ownership
in those services, no other regulations have been es-
tablished to promote such diversity of participation
in the provision of common carrier services or in the
provision of other telecommunications and informa-
tion services;
‘‘(4) the goals of competitively priced services,
service innovation, employment, and diversity of
viewpoint can be advanced by promoting market-
place penetration by small business concerns, busi-
ness concerns owned by women and members of mi-
nority groups, and nonprofit entities; and
‘‘(5) it should be the policy of the Commission
to promote whenever possible diversity of ownership
in the provision of information services and tele-
148
HR 3626 RS
communication services by such concerns and enti-
ties.
‘‘(b) RULEMAKING REQUIRED.—Within 1 year after
the date of enactment of this section, the Commission, in
consultation with the National Telecommunications and
Information Administration, shall initiate a rulemaking
proceeding for the purpose of lowering market entry bar-
riers for small business, business concerns owned by
women and members of minority groups, and nonprofit
entities that are seeking to provide telecommunication
services and information services. The proceeding shall
seek to provide remedies for, among other things, lack of
access to capital and technical and marketing expertise on
the part of such concerns and entities. Consistent with the
broad policy and finding set forth in subsection (a), the
Commission shall adopt such regulations and make such
recommendations to Congress as the Commission deems
appropriate. Not later than 2 years after the date of enact-
ment of this section, the Commission shall complete the
proceeding required by this subsection.’’.
TITLE IV—COMMUNICATIONS
COMPETITIVENESS
SEC. 401. CABLE SERVICE PROVIDED BY TELEPHONE COM-
PANIES.
(a) GENERAL REQUIREMENT.—
149
HR 3626 RS
(1) AMENDMENT.—Section 613(b) of the Com-
munications Act of 1934 (47 U.S.C. 533(b)) is
amended to read as follows:
‘‘(b)(1) Subject to the requirements of part V and
the other provisions of this title, any common carrier sub-
ject in whole or in part to title II of this Act may, either
through its own facilities or through an affiliate owned,
operated, or controlled by, or under common control with,
the common carrier, provide video programming directly
to subscribers in its telephone service area.
‘‘(2) Subject to the requirements of part V and the
other provisions of this title, any common carrier subject
in whole or in part to title II of this Act may provide chan-
nels 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 facili-
ties or arrangements are to be used for, or in connection
with, the provision of video programming directly to sub-
scribers in its telephone service area.
‘‘(3) Notwithstanding paragraphs (1) and (2), an af-
filiate that—
‘‘(A) is, consistent with section 656, owned, op-
erated, or controlled by, or under common control
150
HR 3626 RS
with, a common carrier subject in whole or in part
to title II of this Act, and
‘‘(B) provides video programming to subscribers
in the telephone service area of such carrier, but
‘‘(C) does not utilize the local exchange facili-
ties or services of any affiliated common carrier in
distributing such programming,
shall not be subject to the requirements of part V, but
shall be subject to the requirements of this part and parts
III and IV.’’.
(2) CONFORMING
AMENDMENT.—Section 602
of the Communications Act of 1934 (47 U.S.C. 531)
is amended—
(A) in paragraph (6)(B), by inserting ‘‘or
use’’ after ‘‘the selection’’;
(B) by redesignating paragraphs (18) and
(19) as paragraphs (19) and (20) respectively;
and
(C) by inserting after paragraph (17) the
following new paragraph:
‘‘(18) the term ‘telephone service area’ when
used in connection with a common carrier subject in
whole or in part to title II of this Act means the
area within which such carrier provides telephone ex-
change service as of November 20, 1993, but if any
151
HR 3626 RS
common carrier after such date transfers its ex-
change service facilities to another common carrier,
the area to which such facilities provide telephone
exchange service shall be treated as part of the tele-
phone service area of the acquiring common carrier
and not of the selling common carrier;’’.
(b) PROVISIONS FOR REGULATION OF CABLE SERV-
ICE PROVIDED BY TELEPHONE COMPANIES.—Title VI of
the Communications Act of 1934 (47 U.S.C. 521 et seq.)
is amended by adding at the end the following new part:
‘‘PART V—VIDEO PROGRAMMING SERVICES
PROVIDED BY TELEPHONE COMPANIES
‘‘SEC. 651. DEFINITIONS.
‘‘For purposes of this part—
‘‘(1) the term ‘control’ means—
‘‘(A) an ownership interest in which an en-
tity has the right to vote more than 50 percent
of the outstanding common stock or other own-
ership interest; or
‘‘(B) if no single entity directly or indi-
rectly has the right to vote more than 50 per-
cent 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 rel-
152
HR 3626 RS
evant factors and circumstances, which shall in-
clude partnership and direct ownership inter-
ests, voting stock interests, the interests of offi-
cers and directors, and the aggregation of vot-
ing 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 unin-
corporated, included in an urbanized area.
‘‘SEC. 652. SEPARATE VIDEO PROGRAMMING AFFILIATE.
‘‘(a) IN GENERAL.—Except as provided in subsection
(d) of this section, a common carrier subject to title II
of this Act shall not provide video programming directly
to subscribers in its telephone service area unless such
video programming is provided through a video program-
ming affiliate that is separate from such carrier.
‘‘(b) BOOKS AND MARKETING.—
‘‘(1) IN GENERAL.—A video programming affili-
ate of a common carrier shall—
‘‘(A) maintain books, records, and ac-
counts separate from such carrier which iden-
tify all transactions with such carrier;
153
HR 3626 RS
‘‘(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
REFER-
RAL.—Notwithstanding paragraph (1)(B), a com-
mon carrier may provide telemarketing or referral
services in response to the call of a customer or po-
tential customer related to the provision of video
programming by a video programming affiliate of
such carrier. If such services are provided to a video
programming affiliate, such services shall be made
available to any video programmer or cable operator
on request, on nondiscriminatory terms, at just and
reasonable prices, and subject to regulations of the
Commission to ensure that the carrier’s method of
providing telemarketing or referral and its price
structure do not competitively disadvantage any
video programmer or cable operator, regardless of
size, including those which do not use the carrier’s
telemarketing services.
154
HR 3626 RS
‘‘(3) JOINT
TELEMARKETING.—Notwithstand-
ing paragraph (1)(B), a common carrier may peti-
tion the Commission for permission to market video
programming directly, upon a showing that a cable
operator or other entity directly or indirectly pro-
vides telecommunications services within the tele-
phone service area of the common carrier, and mar-
kets such telecommunications services jointly with
video programming services. The common carrier
shall specify the geographic region covered by the
petition. Any such petition shall be granted or de-
nied within 180 days after the date of its submis-
sion.
‘‘(c) BUSINESS TRANSACTIONS WITH CARRIER SUB-
JECT
TO REGULATION.—Any contract, agreement, ar-
rangement, or other manner of conducting business, be-
tween a common carrier and its video programming affili-
ate, 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,
155
HR 3626 RS
shall be pursuant to regulation prescribed by the Commis-
sion, shall be on a fully compensatory and auditable basis,
shall be without cost to the telephone service ratepayers
of the carrier, shall be filed with the Commission, and
shall be in compliance with regulations established by the
Commission that will enable the Commission to assess the
compliance of any transaction.
‘‘(d) WAIVER.—
‘‘(1) CRITERIA FOR WAIVER.—The Commission
may waive any of the requirements of this section
for small telephone companies or telephone compa-
nies serving rural areas, if the Commission deter-
mines, after notice and comment, that—
‘‘(A) such waiver will not affect the ability
of the Commission to ensure that all video pro-
gramming 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.
156
HR 3626 RS
‘‘(2) DEADLINE FOR ACTION.—The Commission
shall act to approve or disapprove a waiver applica-
tion within 180 days after the date it is filed.
‘‘(3) CONTINUED APPLICABILITY OF SECTION
659.—In the case of a common carrier that obtains
a waiver under this subsection, any requirement that
section 659 applies to a video programming affiliate
shall instead apply to such carrier.
‘‘SEC. 653. ESTABLISHMENT OF VIDEO PLATFORM.
‘‘(a) COMMON CARRIER OBLIGATIONS.—
‘‘(1) IN GENERAL.—Any common carrier sub-
ject to title II of this Act, and that provides video
programming directly or indirectly to subscribers in
its telephone service area, shall establish a video
platform.
‘‘(2) IDENTIFICATION
OF
DEMAND
FOR
CAR-
RIAGE.—Any common carrier subject to the require-
ments of paragraph (1) shall, prior to establishing a
video platform, submit a notice to the Commission
of its intention to establish channel capacity for the
provision of video programming to meet the bona
fide demand for such capacity. Such notice shall—
‘‘(A) be in such form and contain such in-
formation as the Commission may require by
regulations pursuant to subsection (b);
157
HR 3626 RS
‘‘(B) specify the methods by which any en-
tity seeking to use such channel capacity should
submit to such carrier a specification of its
channel capacity requirements; and
‘‘(C) specify the procedures by which such
carrier will determine (in accordance with the
Commission’s 
regulations 
under 
subsection
(b)(1)(B)) whether such request for capacity
are bona fide.
The Commission shall submit any such notice for
publication in the Federal Register within 5 working
days.
‘‘(3) RESPONSE TO REQUEST FOR CARRIAGE.—
After receiving and reviewing the requests for capac-
ity submitted pursuant to such notice, such common
carrier shall, subject to approval of a certificate
under section 214, establish channel capacity that is
sufficient to provide carriage for—
‘‘(A) all bona fide requests submitted pur-
suant to such notice,
‘‘(B) any additional channels required pur-
suant to section 659, and
‘‘(C) any additional channels required by
the Commission’s regulations under subsection
(b)(1)(C).
158
HR 3626 RS
‘‘(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 re-
sponse to bona fide requests for carriage from
existing or additional video programming pro-
viders;
‘‘(C) if at any time the number of channels
required for bona fide requests for carriage may
reasonably be expected soon to exceed the exist-
ing capacity of such video platform, imme-
diately notify the Commission of such expecta-
tion and of the manner and date by which such
carrier will provide sufficient capacity to meet
such excess demand; and
‘‘(D) construct, subject to approval of a
certificate under section 214, such additional
capacity as may be necessary to meet such ex-
cess demand.
159
HR 3626 RS
‘‘(5) DISPUTE RESOLUTION.—The Commission
shall have the authority to resolve disputes under
this section and the regulations prescribed there-
under. 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 sepa-
rate damages proceeding, the Commission may
award damages sustained in consequence of any vio-
lation of this section to any person denied carriage,
or require carriage, or both. Any aggrieved party
may seek any other remedy available under this Act.
‘‘(b) COMMISSION REGULATIONS.—
‘‘(1) IN GENERAL.—Within one year after the
date of the enactment of this section, the Commis-
sion shall prescribe regulations that—
‘‘(A) consistent with the requirements of
section 659, prohibit a common carrier from
discriminating among video programming pro-
viders with regard to carriage on its video plat-
form, and ensure that the rates, terms, and
conditions for such carriage are just, reason-
able, and nondiscriminatory;
‘‘(B) prescribe definitions and criteria for
the purposes of determining whether a request
160
HR 3626 RS
shall be considered a bona fide request for pur-
poses of this section;
‘‘(C) establish a requirement that video
platforms contain a suitable margin of unused
channel capacity to meet reasonable growth in
bona fide demand for such capacity;
‘‘(D) extend to video platforms the Com-
mission’s regulations concerning network non-
duplication (47 C.F.R. 76.92 et seq.) and syn-
dicated exclusivity (47 C.F.R. 76.151 et seq.);
‘‘(E) require the video platform to provide
service, 
transmission, 
interconnection, 
and
interoperability for unaffiliated or independent
video programming providers that is equivalent
to that provided to the common carrier’s video
programming affiliate;
‘‘(F)(i) prohibit a common carrier from
discriminating among video programming pro-
viders 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
161
HR 3626 RS
holders (or both) are able suitably and uniquely
to identify their programming services to sub-
scribers; 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 ex-
cluding areas from its video platform service
area on the basis of the ethnicity, race, or in-
come of the residents of that area, and provide
for public comments on the adequacy of the
proposed service area on the basis of the stand-
ards set forth under this subparagraph.
‘‘(2) EXTENSION OF REGULATIONS TO OTHER
HIGH
CAPACITY
SYSTEMS.—The Commission shall
extend the requirements of the regulations pre-
scribed pursuant to this section, in lieu of the re-
quirements of section 612, to any cable operator of
a cable system that has installed a switched,
broadband video programming delivery system, ex-
cept that the Commission shall not extend the re-
quirements of the regulations prescribed pursuant to
subsection (b)(1)(D) or any other requirement that
the Commission determines is clearly inappropriate.
162
HR 3626 RS
‘‘(c) COMMISSION INQUIRY.—The Commission shall
conduct a study of whether it is in the public interest to
extend the requirements of subsection (a) to any other
cable operators in lieu of the requirements of section 612.
The Commission shall submit to the Congress a report on
the results of such study not later than 2 years after the
date of enactment of this section.
‘‘SEC. 654. EQUAL ACCESS COMPLIANCE.
‘‘(a) CERTIFICATION REQUIRED.—
‘‘(1) IN GENERAL.—A common carrier subject
to title II of this Act shall not provide video pro-
gramming directly to subscribers in its telephone
service area unless such carrier has certified to the
Commission that such carrier is in compliance with
the requirements of paragraphs (1) and (2) of sec-
tion 201(c) of this Act, and regulations prescribed
pursuant to such paragraphs.
‘‘(2) EXCEPTION.—Notwithstanding paragraph
(1), a common carrier subject to title II of this Act
may provide video programming directly to subscrib-
ers in its telephone service area during any period
prior to the date the Commission first prescribes
final regulations pursuant to paragraphs (1) and (2)
of section 201(c) of this Act if such carrier has cer-
tified to the Commission that such carrier is in com-
163
HR 3626 RS
pliance with State laws and regulations concerning
equal access, interconnection, and unbundling that
are substantially similar to and fully consistent with
the requirements of such paragraphs or if there is
no statutory prohibition against such carrier provid-
ing video programming directly to subscribers in its
telephone service area on the date of enactment of
this section. A common carrier that is permitted to
provide video programming under this paragraph
prior to the effective date of such regulations shall
not be exempt from the requirements of paragraph
(1) after the effective date of such final regulations.
‘‘(b) 
CERTIFICATION
AND
APPLICATION
AP-
PROVAL.—A common carrier that submits a certification
under paragraph (1) or (2) of subsection (a) shall be eligi-
ble to provide video programming to subscribers in accord-
ance with the requirements of this part, subject to the ap-
proval of any necessary application under section 214 for
authority to establish a video platform. An application
under section 214 may be filed simultaneously with the
filing of such certification or at any time after the date
of enactment of this section, and the Commission shall act
to approve (with or without modification) or reject such
application within 180 days after the date of its submis-
sion. If the Commission acts to approve such an applica-
164
HR 3626 RS
tion prior to the filing of such certification, such approval
shall not be effective until such certification is filed.
‘‘SEC. 655. PROHIBITION OF CROSS-SUBSIDIZATION.
‘‘(a) CROSS SUBSIDIES PROHIBITION.—The Commis-
sion shall—
‘‘(1) prescribe regulations to prohibit a common
carrier from engaging in any practice that results in
the inclusion in rates for telephone exchange service
or telephone exchange access service of any operat-
ing expenses, costs, depreciation charges, capital in-
vestments, or other expenses directly associated with
the provision of competing video programming serv-
ices by the common carrier or affiliate; and
‘‘(2) ensure such competing video programming
services bear a reasonable share of the joint and
common costs of facilities used to provide telephone
exchange service or telephone exchange access serv-
ice and competing video programming services.
‘‘(b) CABLE OPERATOR PROHIBITIONS.—The Com-
mission shall prescribe regulations to prohibit a cable op-
erator from engaging in any practice that results in im-
proper cross-subsidization between its regulated cable op-
erations and its provision of telecommunications service,
either directly or through an affiliate.
165
HR 3626 RS
‘‘SEC. 656. PROHIBITION ON BUYOUTS.
‘‘(a) GENERAL PROHIBITION.—No common carrier
that provides telephone exchange service, and no entity
owned by or under common ownership or control with such
carrier, may purchase or otherwise obtain control over any
cable system that is located within its telephone service
area and is owned by an unaffiliated person.
‘‘(b) EXCEPTIONS.—Notwithstanding subsection (a),
a common carrier may—
‘‘(1) obtain a controlling interest in, or form a
joint venture or other partnership with, a cable sys-
tem 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
166
HR 3626 RS
50,000 inhabitants if such system is not affili-
ated (as such term is defined in section 602)
with any other system whose franchise area is
contiguous to the franchise area of the acquired
system;
‘‘(3) obtain, with the concurrence of the cable
operator on the rates, terms, and conditions, the use
of that part of the transmission facilities of such a
cable system extending from the last multi-user ter-
minal to the premises of the end user, if such use
is reasonably limited in scope and duration, as deter-
mined 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 sys-
tem operator, and the subject cable system is
not the largest cable system in such television
market;
‘‘(B) the subject cable system and the larg-
est cable system in such television market held
167
HR 3626 RS
on March 1, 1994, cable television franchises
from the largest municipality in the television
market and the boundaries of such franchises
were identical on such date;
‘‘(C) the subject cable system is not owned
by or under common ownership or control of
any one of the 50 largest cable system opera-
tors as existed on March 1, 1994; and
‘‘(D) the largest system in the television
market is owned by or under common owner-
ship or control of any one of the 10 largest
cable system operators as existed on March 1,
1994.
‘‘(c) WAIVER.—
‘‘(1) CRITERIA FOR WAIVER.—The Commission
may waive the restrictions in subsection (a) of this
section only upon a showing by the applicant that—
‘‘(A) because of the nature of the market
served by the cable system concerned—
‘‘(i) the incumbent cable operator
would be subjected to undue economic dis-
tress by the enforcement of such sub-
section; or
168
HR 3626 RS
‘‘(ii) the cable system would not be
economically viable if such subsection were
enforced; and
‘‘(B) the local franchising authority ap-
proves of such waiver.
‘‘(2) DEADLINE FOR ACTION.—The Commission
shall act to approve or disapprove a waiver applica-
tion within 180 days after the date it is filed.
‘‘SEC. 657. PENALTIES.
‘‘If the Commission finds that any common carrier
has knowingly violated any provision of this part, the
Commission shall assess such fines and penalties as it
deems appropriate pursuant to this Act.
‘‘SEC. 658. CONSUMER PROTECTION.
‘‘(a) JOINT BOARD REQUIRED.—Within 30 days
after the date of enactment of this part, the Commission
shall convene a Federal-State Joint Board under the pro-
visions of section 410(c) for the purpose of recommending
a decision concerning the practices, classifications, and
regulations as may be necessary to ensure proper jurisdic-
tional separation and allocation of the costs of establishing
and providing a video platform. The Board shall issue its
recommendations to the Commission within 270 days after
the date of enactment of this part.
169
HR 3626 RS
‘‘(b) COMMISSION REGULATIONS REQUIRED.—The
Commission, with respect to interstate switched access
service, and the States, with respect to telephone exchange
service and intrastate interexchange service, shall establish
such regulations as may be necessary to implement section
655 within one year after the date of the enactment of
this part.
‘‘(c) NO EFFECT
ON CARRIER REGULATION AU-
THORITY.—Nothing in this section shall be construed to
limit or supersede the authority of any State or the Com-
mission with respect to the allocation of costs associated
with intrastate or interstate communication services.
‘‘SEC. 659. APPLICABILITY OF FRANCHISE AND OTHER RE-
QUIREMENTS.
‘‘(a) IN GENERAL.—Any provision that applies to a
cable operator under—
‘‘(1) sections 613, 616, 617, 628, 631, 632,
and 634 of this title, shall apply,
‘‘(2) sections 611, 612, 614, and 615 of this
title, and section 325 of title III, shall apply in ac-
cordance with the regulations prescribed under sub-
section (b), and
‘‘(3) parts III and IV (other than sections 628,
631, 632, and 634) of this title shall not apply,
170
HR 3626 RS
to any video programming affiliate established by a com-
mon carrier in accordance with the requirements of this
part.
‘‘(b) IMPLEMENTATION OF REQUIREMENTS.—
‘‘(1) REGULATIONS.—The Commission shall
prescribe regulations to ensure that a video pro-
gramming affiliate of a common carrier shall provide
(A) capacity, services, facilities, and equipment for
public, educational, and governmental use, (B) ca-
pacity for commercial use, (C) carriage of commer-
cial and non-commercial broadcast television sta-
tions, and (D) an opportunity for commercial broad-
cast 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 ob-
ligations that are no greater or lesser than the obli-
gations contained in the provisions described in sub-
section (a)(2) of this section. Such regulations shall
also require that, if a common carrier establishes a
video platform but does not provide or ceases to pro-
vide video programming through a video program-
ming affiliate, such carrier shall comply with the
regulations prescribed under this paragraph and
171
HR 3626 RS
with the provisions described in subsection (a)(1) in
the operation of its video platform.
‘‘(2) FEES.—A video programming affiliate of
any common carrier that establishes a video plat-
form under this part, and any multichannel video
programming distributor offering a competing serv-
ice using such video platform (as determined in ac-
cordance with regulations of the Commission), shall
be subject to the payment of fees imposed by a local
franchising authority, in lieu of the fees required
under section 622. The rate at which such fees are
imposed shall not exceed the rate at which franchise
fees are imposed on any cable operator transmitting
video programming in the same service area.
‘‘SEC. 660. RURAL AREA EXEMPTION.
‘‘The provisions of sections 652, 653, 654, and 656
shall not apply to video programming provided in a rural
area by a common carrier that provides telephone ex-
change service in the same area.’’.
SEC. 402. REVIEW OF BROADCASTERS’ OWNERSHIP RE-
STRICTIONS.
Within one year after the date of enactment of this
Act, the Commission shall, after a notice and comment
proceeding, prescribe regulations to modify, maintain, or
remove the ownership regulations on radio and television
172
HR 3626 RS
broadcasters as necessary to ensure that broadcasters are
able to compete fairly with other information providers
while protecting the goals of diversity and localism.
SEC. 403. REVIEW OF STATUTORY OWNERSHIP RESTRIC-
TION.
Within one year after the date of enactment of this
Act, the Commission shall review the ownership restriction
in section 613(a)(1) of the Communications Act of 1934
(47 U.S.C. 553(a)(1)) and report to Congress whether or
not such restriction continues to serve the public interest.
SEC. 404. BROADCASTER SPECTRUM FLEXIBILITY.
(a) REGULATIONS REQUIRED.—If the Commission
determines to issue additional licenses for advanced tele-
vision services, and initially limits the eligibility for such
licenses to persons that, as of the date of such issuance,
are licensed to operate a television broadcast station or
hold a permit to construct such a station (or both), the
Commission shall adopt regulations that allow such licens-
ees 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—
173
HR 3626 RS
(1) only permit such licensee or permittee to
offer ancillary or supplementary services if the use
of a designated frequency for such services is indivis-
ible from the use of such designated frequency for
the provision of advanced television services;
(2) limit the broadcasting of ancillary or supple-
mentary services on designated frequencies so as to
avoid derogation of any advanced television services,
including high definition television broadcasts, that
the Commission may require using such frequencies;
(3) treat any such ancillary or supplementary
services for which the licensee or permittee solicits
and receives compensation in return for transmitting
commercial advertising as broadcast services for the
purposes of the Communications Act of 1934 and
the Children’s Television Act of 1990 (47 U.S.C.
303a), and the Commission’s regulations thereunder,
including regulations promulgated pursuant to sec-
tion 315 of the Communications Act of 1934 (47
U.S.C. 315);
(4) apply to any other ancillary or supple-
mentary service such of the Commission’s regula-
tions as are applicable to the offering of analogous
services by any other person;
174
HR 3626 RS
(5) adopt such technical and other requirements
as may be necessary or appropriate to assure the
quality of the signal used to provide advanced tele-
vision services, including regulations that stipulate
the minimum number of hours per day that such
signal must be transmitted; and
(6) prescribe such other regulations as may be
necessary for the protection of the public interest,
convenience, and necessity.
(c) RECOVERY OF LICENSE.—
(1) CONDITIONS
REQUIRED.—If the Commis-
sion limits the eligibility for licenses to provide ad-
vanced television services in the manner described in
subsection (a), the Commission shall, as a condition
of such license, require that, upon a determination
by the Commission pursuant to the regulations pre-
scribed under paragraph (2), either the additional li-
cense or the original license held by the licensee be
surrendered to the Commission in accordance with
such regulations for reallocation or reassignment (or
both) pursuant to Commission regulation.
(2) REGULATIONS.—The Commission shall pre-
scribe regulations establishing criteria for rendering
determinations concerning license surrender pursu-
175
HR 3626 RS
ant to license conditions required by paragraph (1).
Such regulations shall—
(A) require such determinations to be
based on whether the substantial majority of
the public have obtained television receivers
that are capable of receiving advanced television
services; and
(B) not require the cessation of the broad-
casting if such cessation would render the tele-
vision receivers of a substantial portion of the
public useless, or otherwise cause undue bur-
dens on the owners of such television receivers.
(d) FEES REQUIRED.—
(1) SERVICES TO WHICH FEES APPLY.—If the
regulations prescribed pursuant to subsection (a)
permit a licensee to offer ancillary or supplementary
services on a designated frequency—
(A) for which the payment of a subscrip-
tion fee is required in order to receive such
services, or
(B) for which the licensee directly or indi-
rectly receives compensation from a third party
in return for transmitting material furnished by
such third party (other than commercial adver-
176
HR 3626 RS
tisements used to support broadcasting for
which a subscription fee is not required),
the Commission shall establish by regulation a pro-
gram to assess and collect an annual fee or royalty
payment.
(2) CRITERIA FOR REGULATIONS.—The regula-
tions required by paragraph (1) shall—
(A) be designed (i) to recover for the pub-
lic a portion of the value of the public spectrum
resource made available for such commercial
use, and (ii) to avoid unjust enrichment
through the method employed to permit such
uses of that resource;
(B) recover for the public an amount that
is, to maximum extent feasible, equal (over the
term of the license) to the amount that would
have been recovered had such services been li-
censed pursuant to the provisions of section
309(j) of the Communications Act of 1934 (47
U.S.C. 309(j)) and the Commission’s regula-
tions 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.—
177
HR 3626 RS
(A) GENERAL RULE.—Except as provided
in subparagraph (B), all proceeds obtained pur-
suant to the regulations required by this sub-
section shall be deposited in the Treasury in ac-
cordance with chapter 33 of title 31, United
States Code.
(B) RETENTION OF REVENUES.—Notwith-
standing subparagraph (A), the salaries and ex-
penses 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 re-
quired by this section and regulating and super-
vising advanced television services. Such offset-
ting collections shall be available for obligation
subject to the terms and conditions of the re-
ceiving appropriations account, and shall be de-
posited 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 annu-
ally thereafter advise the Congress on the amounts
collected pursuant to such program.
178
HR 3626 RS
(e) EVALUATION REQUIRED.—Within 10 years after
the date the Commission first issues additional licenses for
advanced television services, the Commission shall conduct
an evaluation of the advanced television services program.
Such evaluation shall include—
(1) an assessment of the willingness of consum-
ers 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 spec-
trum assigned to licensees in order to issue addi-
tional licenses for the provision of advanced tele-
vision services.
(f) DEFINITIONS.—As used in this section:
(1) ADVANCED
TELEVISION
SERVICES.—The
term ‘‘advanced television services’’ means television
services provided using digital or other advanced
technology to enhance audio quality and video reso-
lution, as further defined in the opinion, report, and
order of the Commission entitled ‘‘Advanced Tele-
vision Systems and Their Impact Upon the Existing
Television Broadcast Service’’, MM Docket 87–268,
179
HR 3626 RS
adopted September 17, 1992, and successor proceed-
ings.
(2) DESIGNATED
FREQUENCIES.—The term
‘‘designated frequency’’ means each of the fre-
quencies designated by the Commission for licenses
for advanced television services.
(3) HIGH DEFINITION TELEVISION.—The term
‘‘high definition television’’ refers to systems that
offer approximately twice the vertical and horizontal
resolution of receivers generally available on the date
of enactment of this section, as further defined in
the proceedings described in paragraph (1) of this
subsection.
SEC. 405. INTERACTIVE SERVICES AND CRITICAL INTER-
FACES.
(a) FINDINGS.—The Congress finds that—
(1) the convergence of communications, com-
puting, and video technologies will permit improve-
ments in interoperability between and among those
technologies;
(2) in the public switched telecommunications
network, open protocols and technical requirements
for connection between the network and the
consumer, and the availability of unbundled cus-
tomer equipment through retailers and other third
180
HR 3626 RS
party vendors, have served to broaden consumer
choice, lower prices, and spur competition and inno-
vation in the customer equipment industry;
(3) set-top boxes and other interactive commu-
nications devices could similarly serve as a critical
gateway between American homes and businesses
and advanced telecommunications and video pro-
gramming networks;
(4) American consumers have benefited from
the ability to own or rent customer premises equip-
ment obtained from retailers and other vendors and
the ability to access the network with portable, com-
patible equipment;
(5) in order to promote diversity, competition,
and technological innovation among suppliers of
equipment and services, it may be necessary to make
certain critical interfaces with such networks open
and accessible to a broad range of equipment manu-
facturers and information providers;
(6) the identification of critical interfaces with
such networks and the assessment of their openness
must be accomplished with due recognition that open
and accessible systems may include standards that
involve both nonproprietary and proprietary tech-
nologies;
181
HR 3626 RS
(7) such identification and assessment must
also be accomplished with due recognition of the
need for owners and distributors of video program-
ming and information services to ensure system and
signal security and to prevent theft of service;
(8) whenever possible, standards in dynamic in-
dustries such as interactive systems are best set by
the marketplace or by private sector standard-set-
ting bodies; and
(9) the role of the Commission in this regard
is—
(A) to identify, in consultation with indus-
try groups, consumer interests, and independent
experts, critical interfaces with such networks
(i) to ensure that end users can connect infor-
mation devices to such networks, and (ii) to en-
sure that information service providers are able
to transmit information to end users, and
(B) as necessary, to take steps to ensure
these networks and services are accessible to a
broad range of equipment manufacturers, infor-
mation providers, and program suppliers.
(b) INQUIRY REQUIRED.—Within 6 months after the
date of the enactment of this Act, the Commission shall
commence an inquiry—
182
HR 3626 RS
(1) to examine the impact of the convergence of
technologies on cable, telephone, satellite, and wire-
less and other communications technologies likely to
offer interactive communications services;
(2) to ascertain the importance of maintaining
open and accessible systems in interactive commu-
nications services;
(3) to examine the costs and benefits of main-
taining varying levels of interoperability between and
among interactive communications services;
(4) to examine the costs and benefits of estab-
lishing open interfaces (A) between the network pro-
vider and the set-top box or other interactive com-
munications devices used in the home or office, and
(B) between network providers and information serv-
ice providers, and to determine how best to establish
such interfaces;
(5) to determine methods by which converter
boxes or other interactive communications devices
may be sold through retailers and other third party
vendors and to determine the vendors’ responsibil-
ities for ensuring that their devices are interoperable
with interactive networks;
(6) to assess how the security of cable, satellite,
and other interactive systems or their services can
183
HR 3626 RS
continue to be ensured with the establishment of an
interface between the network and a converter box
or other interactive communications device, including
those manufactured and distributed at retail by enti-
ties independent of network providers and informa-
tion service providers, and to determine the respon-
sibilities of such independent entities for assuring
network security and for conforming to signal inter-
ference standards;
(7) to ascertain the conditions necessary to en-
sure that any critical interface is available to infor-
mation and content providers and others who seek to
design, build, and distribute interoperable devices for
these networks so as to ensure network access and
fair competition for independent information provid-
ers and consumers;
(8) to assess the impact of the deployment of
digital technologies on individuals with disabilities,
with particular emphasis on any regulatory, policy,
or design barriers which would limit functionally
equivalent access by such individuals;
(9) to assess current regulation of telephone,
cable, satellite, and other communications delivery
systems to ascertain how best to ensure interoper-
ability between those systems;
184
HR 3626 RS
(10) to assess the adequacy of current regula-
tion of telephone, cable, satellite, and other commu-
nications delivery systems with respect to bundling
of equipment and services and to identify any
changes in unbundling regulations necessary to as-
sure effective competition and encourage techno-
logical innovation, consistent with the finding in sub-
section (a)(6) and the objectives of paragraph (6) of
this subsection, in the market for converter boxes or
interactive communications devices and for other
customer premises equipment;
(11) to solicit comment on any changes in the
Commission’s regulations that are necessary to en-
sure that diversity, competition, and technological
innovation are promoted in communications services
and equipment; and
(12) to prepare recommendations to the Con-
gress for any legislative changes required.
(c) REPORT TO CONGRESS.—Within 12 months after
the date of the enactment of this Act, the Commission
shall submit to the Congress a report on the results of
the inquiry required by subsection (b). Within 6 months
after the date of submission of such report, the Commis-
sion shall prescribe such changes in its regulations as the
185
HR 3626 RS
Commission determines are necessary pursuant to sub-
section (b)(10).
(d) PRESERVATION
OF EXISTING AUTHORITY.—
Nothing in this section shall be construed as limiting, su-
perseding, or otherwise modifying the existing authority
and responsibilities of the Commission or National Insti-
tute of Standards and Technology.
SEC. 406. VIDEO PROGRAMMING ACCESSIBILITY.
(a) INQUIRY REQUIRED.—Within 180 days after the
date of enactment of this section, the Federal Communica-
tions 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 program-
ming owner providing closed captioning, the size of the
market served, the relative audience shares achieved, or
any other related factors. The Commission shall submit
to the Congress a report on the results of such inquiry.
(b) CONTENTS
OF
REGULATIONS.—Within 18
months after the date of enactment, the Commission shall
prescribe such regulations as are necessary to implement
this section. Such regulations shall ensure that—
(1) video programming first published or exhib-
ited after the effective date of such regulations is
186
HR 3626 RS
fully accessible through the provision of closed cap-
tions, except as provided in subsection (d); and
(2) video programming providers or owners
maximize the accessibility of video programming
first published or exhibited prior to the effective date
of such regulations through the provision of closed
captions, except as provided in subsection (d).
(c) CONTENTS OF REGULATIONS.—Such regulations
shall include an appropriate schedule of deadlines for the
provision of closed captioning of video programming.
(d) 
EXEMPTIONS.—Notwithstanding 
subsection
(b)—
(1) the Commission may exempt by regulation
programs, classes of programs, or services for which
the Commission has determined that the provision of
closed captioning would be economically burdensome
to the provider or owner of such programming;
(2) a provider of video programming or the
owner of any program carried by the provider shall
not be obligated to supply closed captions if such ac-
tion would be inconsistent with contracts in effect on
the date of enactment of this Act, except that noth-
ing in this section shall be construed to relieve a
video programming provider of its obligations to pro-
vide services required by Federal law; and
187
HR 3626 RS
(3) a provider of video programming or pro-
gram owner may petition the Commission for an ex-
emption from the requirements of this section, and
the Commission may grant such petition upon a
showing that the requirements contained in this sec-
tion would result in an undue burden.
(e) UNDUE BURDEN.—The term ‘undue burden’
means significant difficulty or expense. In determining
whether the closed captions necessary to comply with the
requirements of this paragraph would result in an undue
economic burden, the factors to be considered include—
(1) the nature and cost of the closed captions
for the programming;
(2) the impact on the operation of the provider
or program owner;
(3) the financial resources of the provider or
program owner; and
(4) the type of operations of the provider or
program owner.
(f) ADDITIONAL PROCEEDING ON VIDEO DESCRIP-
TIONS REQUIRED.—Within 6 months after the date of en-
actment 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 re-
188
HR 3626 RS
port to Congress on its findings. The Commission’s report
shall assess appropriate methods and schedules for phas-
ing 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 in-
quiry, the Commission may adopt regulation it deems nec-
essary to promote the accessibility of video programming
to persons with visual impairments.
(g) MODEL PROGRAM.—The National Telecommuni-
cations and Information Administration shall establish
and oversee, and (to the extent of available funds) provide
financial support for, marketplace tests of video descrip-
tions on commercial and noncommercial video program-
ming services.
(h) VIDEO DESCRIPTION.—For purposes of this sec-
tion, ‘‘video description’’ means the insertion of audio nar-
rated descriptions of a television program’s key visual ele-
ments into natural pauses between the program’s dia-
logue.
SEC. 407. PUBLIC ACCESS.
Within one year after the date of enactment of this
Act, the Federal Communications Commission shall pre-
scribe regulations to reserve appropriate capacity for the
189
HR 3626 RS
public at preferential rates on cable systems and video
platforms.
SEC. 408. AUTOMATED SHIP DISTRESS AND SAFETY SYS-
TEMS.
Notwithstanding any provision of the Communica-
tions Act of 1934, a ship documented under the laws of
the United States operating in accordance with the Global
Maritime Distress and Safety System provisions of the
Safety of Life at Sea Convention shall not be required to
be equipped with a radio station operated by one or more
radio officers or operators.
SEC. 409. EXCLUSIVE FEDERAL JURISDICTION OVER DI-
RECT BROADCAST SATELLITE SERVICE.
Section 303 of the Communications Act of 1934 (47
U.S.C. 303) is amended by adding at the end thereof the
following new subsection:
‘‘(v) Have exclusive jurisdiction over the regulation
of the direct broadcast satellite service.’’.
SEC. 410. TECHNICAL AMENDMENTS.
(a) RETRANSMISSION.—Section 325(b)(2)(D) of the
Communications Act of 1934 (47 U.S.C. 325(b)(2)(D))
is amended to read as follows:
‘‘(D) retransmission by a cable operator or
other multichannel video programming distributor of
the signal of a superstation if (i) the customers
190
HR 3626 RS
served by the cable operator or other multichannel
video programming distributor reside outside the
originating station’s television market, as defined by
the 
Commission 
for 
purposes 
of 
section
614(h)(1)(C); (ii) such signal was obtained from a
satellite carrier or terrestrial microwave common
carrier; and (iii) and the origination station was a
superstation on May 1, 1991.
(b) 
MARKET
DETERMINATIONS.—Section
614(h)(1)(C)(i) of the Communications Act of 1934 (47
U.S.C. 534(h)(1)(C)(i)) is amended by striking out ‘‘in the
manner provided in section 73.3555(d)(3)(i) of title 47,
Code of Federal Regulations, as in effect on May 1,
1991,’’ and inserting ‘‘by the Commission by regulation
or order using, where available, commercial publications
which delineate television markets based on viewing pat-
terns,’’.
SEC. 411. AVAILABILITY OF SCREENING DEVICES TO PRE-
CLUDE DISPLAY OF ENCRYPTED PROGRAM-
MING.
(a) CUSTOMER NOTICE.—Section 624(d)(2)(A) of
the 
Communications 
Act 
of 
1934 
(47 
U.S.C.
544(d)(2)(A)) is amended by adding at the end the follow-
ing new sentence: ‘‘Upon beginning service to any new
subscriber and not less frequently than once each calendar
191
HR 3626 RS
year for current subscribers, the cable operator shall in-
form subscribers of the right to request and obtain such
device.’’.
(b) SIGNAL LEAKAGE.—Section 624(d)(2) of such
Act is further amended by adding at the end the following
new subparagraph:
‘‘(C) The Commission shall prescribe regulations to
require, to the extent technically feasible, the transmission
of programming described in subparagraph (A) by means
of encrypted signals that permit subscribers to effectively
and entirely prevent the display of both the audio and
video portions of such programming with or without the
use of a device described in subparagraph (A).’’.
TITLE V—PROCUREMENT PRAC-
TICES 
OF 
TELECOMMUNI-
CATIONS PROVIDERS.
SEC. 501. FINDINGS.
The Congress finds the following:
(1) It is in the public interest for business en-
terprises owned by minorities and women to partici-
pate in procurement contracts of all providers of
telecommunications services.
(2) The opportunity for full participation in our
free enterprise system by business enterprises that
are owned by minorities and women is essential if
192
HR 3626 RS
this Nation is to attain social and economic equality
for those businesses and improve the functioning of
the national economy.
(3) It is in this Nation’s interest to expedi-
tiously improve the economically disadvantaged posi-
tion of business enterprises that are owned by mi-
norities and women.
(4) The position of these businesses can be im-
proved through the development by the providers of
telecommunications services of substantial long-
range and annual goals, which are supported by
training and technical assistance, for the purchase,
to the maximum practicable extent, of technology,
equipment, supplies, services, material and construc-
tion from minority business enterprises.
(5) Procurement policies which include partici-
pation of business enterprises that are owned by mi-
norities and women also benefit the communication
industry and its consumers by encouraging the ex-
pansion of the numbers of suppliers for procure-
ment, thereby encouraging competition among sup-
pliers and promoting economic efficiency in the proc-
ess.
SEC. 502. PURPOSE.
The purposes of this title are—
194
HR 3626 RS
to submit annually a detailed and verifiable plan for
increasing its procurement from business enterprises
that are owned by minorities or women in all cat-
egories of procurement in which minorities are under
represented.
(2) CONTENTS OF PLANS.—The annual plans
required by paragraph (1) shall include (but not be
limited to) short- and long-term progressive goals
and timetables, technical assistance, and training
and shall, in addition to goals for direct contracting
opportunities, include methods for encouraging both
prime contractors and grantees to engage business
enterprises that are owned by minorities and women
in subcontracts in all categories in which minorities
are under represented.
(3) IMPLEMENTATION REPORT.—Each provider
of telecommunications services shall furnish an an-
nual report to the Commission regarding the imple-
mentation of programs established pursuant to this
title in such form as the Commission shall require,
and at such time as the Commission shall annually
designate.
(4) REPORT TO CONGRESS.—The Commission
shall provide an annual report to Congress, begin-
ning in January 1995, on the progress of activities
195
HR 3626 RS
undertaken by each provider of telecommunications
services regarding the implementation of activities
pursuant to this title to develop business enterprises
that are owned by minorities or women. The report
shall evaluate the accomplishments under this title
and shall recommend a program for enhancing the
policy declared in this title, together with such rec-
ommendations for legislation as it deems necessary
or desirable to further that policy.
(b) REGULATIONS AND CRITERIA FOR DETERMINING
ELIGIBILITY OF MINORITY BUSINESS ENTERPRISES FOR
PROCUREMENT CONTRACTS.—
(1) IN GENERAL.—The Commission shall estab-
lish regulations for implementing programs pursuant
to this title that will govern providers of tele-
communications services and their affiliates.
(2) VERIFYING
CRITERIA.—The Commission
shall develop and publish regulations setting forth
criteria for verifying and determining the eligibility
of business enterprises that are owned by minorities
or women for procurement contracts.
(3) OUTREACH.—The Commission’s regulations
shall require each provider of telecommunications
services and its affiliates to develop and to imple-
ment an outreach program to inform and recruit
196
HR 3626 RS
business enterprises that are owned by minorities or
women to apply for procurement contracts under
this title.
(4) ENFORCEMENT.—The Commission shall es-
tablish and promulgate such regulations necessary to
enforce the provisions of this title.
(c) WAIVER AUTHORITY.—The requirements of this
section may be waived, in whole or in part, by the Commis-
sion with respect to a particular contract or subcontract
in accordance with guidelines set forth in regulations
which the Commission shall prescribe when it determines
that the application of such regulations prove to result in
undue hardship or unreasonable expense to a provider of
telecommunications services.
SEC. 504. SANCTIONS AND REMEDIES.
(a) FALSE REPRESENTATION OF BUSINESSES; SANC-
TIONS.—
(1) IN GENERAL.—Any person or corporation,
through its directors, officers, or agent, which falsely
represents the business as a business enterprise that
are owned by minorities or women in the procure-
ment or attempt to procure contracts from telephone
operating companies and their affiliates pursuant to
this article, shall be punished by a fine of not more
than $5,000, or by imprisonment for a period not to
197
HR 3626 RS
exceed 5 years of its directors, officers, or agents re-
sponsible for the false statements, or by both fine
and imprisonment.
(2) HOLDING
COMPANIES.—Any provider of
telecommunications services which falsely represents
its annual report to the Commission or its imple-
mentation of its programs pursuant to this section
shall be subject to a fine of $100,000 and be subject
to a penalty of up to 5 years restriction from partici-
pation in lines of business activities provided for in
this title.
(b) INDEPENDENT CAUSE OF ACTION, REMEDIES,
AND ATTORNEY FEES.—
(1) DISCRIMINATION PROHIBITED.—No other-
wise qualified business enterprise that are owned by
minorities or women shall solely, by reason of its ra-
cial, ethnic, or gender composition be excluded from
the participation in, be denied the benefits of, or be
subjected to discrimination in procuring contracts
from telephone utilities.
(2) CIVIL ACTIONS AUTHORIZED.—Whenever a
qualified business enterprise that is owned by mi-
norities or women has reasonable cause to believe
that a provider of telecommunications services or its
affiliate is engaged in a pattern or practice of resist-
198
HR 3626 RS
ance to the full compliance of any provision of this
title, the business enterprise may bring a civil action
in the appropriate district court of the United States
against the provider of telecommunications services
or its affiliate requesting such monetary or injunc-
tive relief, or both, as deemed necessary to ensure
the full benefits of this title.
(3) ATTORNEYS’ FEES AND COSTS.—In any ac-
tion or proceeding to enforce or charge of a violation
of a provision of this title, the court, in its discre-
tion, may allow the prevailing party reasonable at-
torneys’ fees and costs.
SEC. 505. DEFINITIONS.
For the purpose of this title, the following definitions
apply:
(1) The term ‘‘business enterprise owned by mi-
norities or women’’ means—
(A) a business enterprise that is at least
51 percent owned by a person or persons who
are minority persons or women; or
(B) in the case of any publicly owned busi-
ness, at least 51 percent of the stock of which
is owned by one or more persons who are mi-
nority persons or women, and whose manage-
199
HR 3626 RS
ment and daily business operations are con-
trolled by one or more of those persons.
(2) The term ‘‘minority person’’ means persons
who are Black Americans, Hispanic Americans, Na-
tive Americans, Asian Americans, and Pacific Amer-
icans.
(3) The term ‘‘control’’ means exercising the
power to make financial and policy decisions.
(4) The term ‘‘operate’’ means the active in-
volvement in the day-to-day management of the
business and not merely being officers or directors.
(5) The term ‘‘Commission’’ means the Federal
Communications Commission.
(6) The term ‘‘telecommunications service’’ has
the meaning provided in section 3(oo) of the Com-
munications Act of 1934 (as added by this Act).
TITLE 
VI—FEDERAL 
COMMU-
NICATIONS COMMISSION RE-
SOURCES
SEC. 601. AUTHORIZATION OF APPROPRIATIONS.
(a) IN GENERAL.—In addition to any other sums au-
thorized 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 amend-
ments made by this Act.
200
HR 3626 RS
(b) EFFECT
ON FEES.—For purposes of section
9(b)(2) of the Communications Act of 1934 (47 U.S.C.
159(b)(2)), additional amounts appropriated pursuant to
subsection (a) shall be construed to be changes in the
amounts appropriated for the performance of activities de-
scribed in section 9(a) of such Act.
Passed the House of Representatives June 28, 1994.
Attest:
DONNALD K. ANDERSON,
Clerk.
HR 3626 RS——2
HR 3626 RS——3
HR 3626 RS——4
HR 3626 RS——5
HR 3626 RS——6
HR 3626 RS——7
HR 3626 RS——8
HR 3626 RS——9
HR 3626 RS——10
HR 3626 RS——11
HR 3626 RS——12
HR 3626 RS——13
HR 3626 RS——14