paragraph (2), provide for the deposit into the Fund of
such portion of the monetary contributions required under
that paragraph as the Commission shall prescribe.
‘‘(ii) The regulations under this subparagraph shall
also establish guidelines governing the deposit into the
Fund of all or a portion of the following:
‘‘(I) Payments to the Commission as a result of
the determination by the Commission of overcharges
on the part of an entity.
‘‘(II) Payments of penalties assessed by the
Commission.
‘‘(iii) The Commission may prescribe in regulations
under this subparagraph for the deposit into the Fund of
funds from such other sources and in such amounts as
the Commission determines appropriate.
‘‘(4) Not later than 2 years after the date of the en-
actment of this section, the Secretary of Education, the
Secretary of Commerce, and the Commission shall jointly
prescribe regulations relating to the disbursement of sums
in the Fund. Such regulations shall include the following
provisions:
‘‘(A) Provisions governing the utilization of
sums in the Fund, including the projects for which
sums in the Fund shall be available.
‘‘(B) Provisions for determining the State and
local entities eligible for awards of sums from the
Funds.
‘‘(C) Provisions establishing a fair and expedi-
tious process for the application for and selection of
the entities to be awarded sums from the Fund.
‘‘(D) Provisions governing the evaluation of the
activities of entities that are awarded sums from the
Fund.
‘‘(E) Provisions ensuring that entities awarded
sums in the Fund utilize such sums for the purposes
for which such sums were awarded.
‘‘(c) PRIMARY RESPONSIBILITY.—(1) The Commis-
sion shall delegate to each State the primary responsibility
for defining universal service and ensuring that universal
service goals are met. Each State may impose a non-
discriminatory charge on intrastate telecommunications,
or take other action, as the State finds necessary to pro-
tect and advance universal service.
‘‘(2) In considering methods of protecting and ad-
vancing universal service, the State may consider assisting
directly telecommunications carriers, assisting directly in-
dividuals and entities who cannot afford the cost of certain
telecommunications services, assisting directly individuals
or entities in purchasing or leasing equipment or program-
ming, allowing carriers to compete for the right to obtain
funding in exchange for providing certain services, and
other options. To the extent that a State establishes a
fund to support universal service, all providers of tele-
communications services shall be eligible to receive pay-
ment from such fund.
‘‘(3) If a State has not implemented procedures to
carry out the objectives of paragraphs (1) and (2) within
two years after the date of enactment of this section, or
at any time thereafter fails to meet the objectives of such
paragraphs, the Commission shall assume the primary re-
sponsibility to ensure that those objectives are met.’’.
(b) 
CONFORMING
AMENDMENT.—Section
332(c)(1)(A) of the Communications Act of 1934 (47
U.S.C. 332(c)(1)(A)) is amended by inserting ‘‘201A,’’
immediately after ‘‘section 201,’’.
SEC. 302. PUBLIC ACCESS.
(a) AMENDMENT.—Section 202 of the Communica-
tions Act of 1934 (47 U.S.C. 202) is amended by adding
at the end the following new subsection:
‘‘(d)(1) Notwithstanding subsections (a) through (c),
it shall be the duty of all telecommunications carriers that
use public rights of way to permit educational institutions,
health-care institutions, local and State governments, pub-
lic broadcast stations, public libraries, other public enti-
ties, community newspapers, and broadcasters in the
smallest markets to obtain access to intrastate and inter-
state services provided by such carriers at preferential
rates. Entities that obtain services under this provision
may not resell such services, except to other entities that
are eligible for preferential rates under this subsection.
‘‘(2) Within one year after the date of enactment of
this subsection, the Commission shall prescribe regulations
to enforce the provisions of this subsection.’’.
(b) RULEMAKING
ON ADVANCED TELECOMMUNI-
CATIONS SERVICES.—The Commission shall commence a
rulemaking proceeding for the purpose of prescribing reg-
ulations that—
(1) enhance, to the extent feasible, the availabil-
ity of advanced telecommunications services to all
public elementary and secondary school classrooms,
health care institutions, and libraries; and
(2) ensure that appropriate functional require-
ments or performance standards, or both, including
interoperability standards, are established for tele-
communications arrangements that interconnect
educational institutions, health care institutions, and
libraries with the public switched network.
(c) TELECOMMUNICATIONS
SERVICES
FOR
EDU-
CATIONAL INSTITUTIONS.—(1) Not later than 180 days
after the date of the enactment of this Act, the Assistant
Secretary of Commerce for Communications and Informa-
tion shall, in consultation with the Federal Communica-
tions Commission, the Secretary of Education and Sec-
retary of Commerce—
(A) issue a notice of inquiry into the feasibility
of establishing an educational telecommunications
and technology corporation in order to provide credit
and grant funds to support the national goal of en-
suring that elementary and secondary schools have
complete access to existing and innovative tele-
communications and information technologies and
services;
(B) review alternatives for an appropriate orga-
nizational form for such a corporation; and
(C) recommend to the Federal Communications
Commission, the Secretary of Education and Sec-
retary of Commerce an organizational form for such
a corporation.
(2) The Assistant Secretary shall complete proceed-
ings on the notice of inquiry and publish the recommenda-
tions referred to in paragraph (1)(C) not later than 1 year
after the date of enactment of this Act.
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HR 5013 IH——2