[104th Congress Public Law 104]
[From the U.S. Government Printing Office]
<DOC>
[DOCID: f:publ104.104]
TELECOMMUNICATIONS ACT OF 1996
[[Page 110 STAT. 56]]
Public Law 104-104
104th Congress
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. <<NOTE: Feb. 8, 1996 - [S. 652]>>
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress
assembled, <<NOTE: Telecommunications Act of 1996. Intergovernmental
relations.>>
SECTION 1. SHORT TITLE; REFERENCES.
(a) <<NOTE: 47 USC 609 note.>> Short Title.--This Act may be cited
as the ``Telecommunications Act of 1996''.
(b) References.--Except as otherwise expressly provided, whenever in
this Act an amendment or repeal is expressed in terms of an amendment
to, or repeal of, a section or other provision, the reference shall be
considered to be made to a section or other provision of the
Communications Act of 1934 (47 U.S.C. 151 et seq.).
SEC. 2. TABLE OF CONTENTS.
The table of contents for this Act is as follows:
Sec. 1. Short title; references.
Sec. 2. Table of contents.
Sec. 3. Definitions.
TITLE I--TELECOMMUNICATION SERVICES
Subtitle A--Telecommunications Services
Sec. 101. Establishment of part II of title II.
``Part II--Development of Competitive Markets
``Sec. 251. Interconnection.
``Sec. 252. Procedures for negotiation, arbitration, and
approval of agreements.
``Sec. 253. Removal of barriers to entry.
``Sec. 254. Universal service.
``Sec. 255. Access by persons with disabilities.
``Sec. 256. Coordination for interconnectivity.
``Sec. 257. Market entry barriers proceeding.
``Sec. 258. Illegal changes in subscriber carrier selections.
``Sec. 259. Infrastructure sharing.
``Sec. 260. Provision of telemessaging service.
``Sec. 261. Effect on other requirements.''
Sec. 102. Eligible telecommunications carriers.
Sec. 103. Exempt telecommunications companies.
Sec. 104. Nondiscrimination principle.
Subtitle B--Special Provisions Concerning Bell Operating Companies
Sec. 151. Bell operating company provisions.
``PART III--SPECIAL PROVISIONS CONCERNING BELL OPERATING COMPANIES
``Sec. 271. Bell operating company entry into interLATA
services.
``Sec. 272. Separate affiliate; safeguards.
[[Page 110 STAT. 57]]
``Sec. 273. Manufacturing by Bell operating companies.
``Sec. 274. Electronic publishing by Bell operating companies.
``Sec. 275. Alarm monitoring services.
``Sec. 276. Provision of payphone service.''
TITLE II--BROADCAST SERVICES
Sec. 201. Broadcast spectrum flexibility.
``Sec. 336. Broadcast spectrum flexibility.''
Sec. 202. Broadcast ownership.
Sec. 203. Term of licenses.
Sec. 204. Broadcast license renewal procedures.
Sec. 205. Direct broadcast satellite service.
Sec. 206. Automated ship distress and safety systems.
``Sec. 365. Automated ship distress and safety systems.''
Sec. 207. Restrictions on over-the-air reception devices.
TITLE III--CABLE SERVICES
Sec. 301. Cable Act reform.
Sec. 302. Cable service provided by telephone companies.
``Part V--Video Programming Services Provided by Telephone Companies
``Sec. 651. Regulatory treatment of video programming services.
``Sec. 652. Prohibition on buy outs.
``Sec. 653. Establishment of open video systems.''
Sec. 303. Preemption of franchising authority regulation of
telecommunications services.
Sec. 304. Competitive availability of navigation devices.
``Sec. 629. Competitive availability of navigation devices.''
Sec. 305. Video programming accessibility.
``Sec. 713. Video programming accessibility.''
TITLE IV--REGULATORY REFORM
Sec. 401. Regulatory forbearance.
``Sec. 10. Competition in provision of telecommunications
service.''
Sec. 402. Biennial review of regulations; regulatory relief.
``Sec. 11. Regulatory reform.''
Sec. 403. Elimination of unnecessary Commission regulations and
functions.
TITLE V--OBSCENITY AND VIOLENCE
Subtitle A--Obscene, Harassing, and Wrongful Utilization of
Telecommunications Facilities
Sec. 501. Short title.
Sec. 502. Obscene or harassing use of telecommunications facilities
under the Communications Act of 1934.
Sec. 503. Obscene programming on cable television.
Sec. 504. Scrambling of cable channels for nonsubscribers.
``Sec. 640. Scrambling of cable channels for nonsubscribers.''
Sec. 505. Scrambling of sexually explicit adult video service
programming.
``Sec. 641. Scrambling of sexually explicit adult video service
programming.''
Sec. 506. Cable operator refusal to carry certain programs.
Sec. 507. Clarification of current laws regarding communication of
obscene materials through the use of computers.
Sec. 508. Coercion and enticement of minors.
Sec. 509. Online family empowerment.
``Sec. 230. Protection for private blocking and screening of
offensive material.''
Subtitle B--Violence
Sec. 551. Parental choice in television programming.
Sec. 552. Technology fund.
Subtitle C--Judicial Review
Sec. 561. Expedited review.
TITLE VI--EFFECT ON OTHER LAWS
Sec. 601. Applicability of consent decrees and other law.
Sec. 602. Preemption of local taxation with respect to direct-to-home
services.
TITLE VII--MISCELLANEOUS PROVISIONS
Sec. 701. Prevention of unfair billing practices for information or
services provided over toll-free telephone calls.
[[Page 110 STAT. 58]]
Sec. 702. Privacy of customer information.
``Sec. 222. Privacy of customer information.''
Sec. 703. Pole attachments.
Sec. 704. Facilities siting; radio frequency emission standards.
Sec. 705. Mobile services direct access to long distance carriers.
Sec. 706. Advanced telecommunications incentives.
Sec. 707. Telecommunications Development Fund.
``Sec. 714. Telecommunications Development Fund.''
Sec. 708. National Education Technology Funding Corporation.
Sec. 709. Report on the use of advanced telecommunications services for
medical purposes.
Sec. 710. Authorization of appropriations.
SEC. 3. DEFINITIONS.
(a) Additional Definitions.--Section 3 (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) comparable 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''; and
(2) by adding at the end thereof the following:
``(33) Affiliate.--The term `affiliate' means a person that
(directly or indirectly) owns or controls, is owned or
controlled by, or is under common ownership or control with,
another person. For purposes of this paragraph, the term `own'
means to own an equity interest (or the equivalent thereof) of
more than 10 percent.
``(34) AT&T consent decree.--The term `AT&T Consent Decree'
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.
``(35) Bell operating company.--The term `Bell operating
company'--
``(A) means any of the following companies: 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; and
``(B) includes any successor or assign of any such
company that provides wireline telephone exchange
service; but
[[Page 110 STAT. 59]]
``(C) does not include an affiliate of any such
company, other than an affiliate described in
subparagraph (A) or (B).
``(36) Cable service.--The term `cable service' has the
meaning given such term in section 602.
``(37) Cable system.--The term `cable system' has the
meaning given such term in section 602.
``(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 affiliate 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 access to telephone exchange services or
facilities for the purpose of the origination or termination of
telephone toll 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.
``(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 before the date of enactment of
the Telecommunications Act of 1996 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 AT&T Consent
Decree; or
``(B) established or modified by a Bell operating
company after such date of enactment 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
should be included in the definition of such term.
``(45) Network element.--The term `network element' means a
facility or equipment used in the provision of a
telecommunications service. Such term also includes features,
func
[[Page 110 STAT. 60]]
tions, and capabilities that are provided by means of such
facility or equipment, including subscriber numbers, databases,
signaling systems, and information sufficient for billing and
collection or used in the transmission, routing, or other
provision of a telecommunications service.
``(46) Number portability.--The term `number portability'
means the ability of users of telecommunications services to
retain, at the same location, existing telecommunications
numbers without impairment of quality, reliability, or
convenience when switching from one telecommunications carrier
to another.
``(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 recently 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
exchange access, 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 the Telecommunications Act of 1996.
``(48) Telecommunications.--The term `telecommunications'
means the transmission, between or among points specified by the
user, of information of the user's choosing, without change in
the form or content of the information as sent and received.
``(49) Telecommunications carrier.--The term
`telecommunications carrier' means any provider of
telecommunications services, except that such term does not
include aggregators of telecommunications services (as defined
in section 226). A telecommunications carrier shall be treated
as a common carrier under this Act only to the extent that it is
engaged in providing telecommunications services, except that
the Commission shall determine whether the provision of fixed
and mobile satellite service shall be treated as common
carriage.
``(50) 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).
``(51) Telecommunications service.--The term
`telecommunications service' means the offering of
telecommunications for a fee directly to the public, or to such
classes of users as to be effectively available directly to the
public, regardless of the facilities used.''.
[[Page 110 STAT. 61]]
(b) <<NOTE: 47 USC 153 note.>> Common Terminology.--Except as
otherwise provided in this Act, the terms used in this Act have the
meanings provided in section 3 of the Communications Act of 1934 (47
U.S.C. 153), as amended by this section.
(c) Stylistic Consistency.--Section 3 (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.
(d) Conforming Amendments.--The Act is amended--
(1) in section 225(a)(1), <<NOTE: 47 USC 225.>> by striking
``section 3(h)'' and inserting ``section 3'';
(2) in section 332(d), <<NOTE: 47 USC 332.>> 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), <<NOTE: 47
USC 541, 556, 557.>> by striking ``section 3(v)'' and inserting
``section 3''.
TITLE I--TELECOMMUNICATION SERVICES
Subtitle A--Telecommunications Services
SEC. 101. ESTABLISHMENT OF PART II OF TITLE II.
(a) Amendment.--Title II is amended by inserting after section 229
(47 U.S.C. 229) the following new part:
``PART II--DEVELOPMENT OF COMPETITIVE MARKETS
``SEC. 251. <<NOTE: 47 USC 251.>> INTERCONNECTION.
``(a) General Duty of Telecommunications Carriers.--Each
telecommunications carrier has the duty--
``(1) to interconnect directly or indirectly with the
facilities and equipment of other telecommunications carriers;
and
[[Page 110 STAT. 62]]
``(2) not to install network features, functions, or
capabilities that do not comply with the guidelines and
standards established pursuant to section 255 or 256.
``(b) Obligations of All Local Exchange Carriers.--Each local
exchange carrier has the following duties:
``(1) Resale.--The duty not to prohibit, and not to impose
unreasonable or discriminatory conditions or limitations on, the
resale of its telecommunications services.
``(2) Number portability.--The duty to provide, to the
extent technically feasible, number portability in accordance
with requirements prescribed by the Commission.
``(3) Dialing parity.--The duty to provide dialing parity to
competing providers of telephone exchange service and telephone
toll service, and the duty to permit all such providers to have
nondiscriminatory access to telephone numbers, operator
services, directory assistance, and directory listing, with no
unreasonable dialing delays.
``(4) 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 on rates,
terms, and conditions that are consistent with section 224.
``(5) Reciprocal compensation.--The duty to establish
reciprocal compensation arrangements for the transport and
termination of telecommunications.
``(c) Additional Obligations of Incumbent Local Exchange Carriers.--
In addition to the duties contained in subsection (b), each incumbent
local exchange carrier has the following duties:
``(1) Duty to negotiate.--The duty to negotiate in good
faith in accordance with section 252 the particular terms and
conditions of agreements to fulfill the duties described in
paragraphs (1) through (5) of subsection (b) and this
subsection. The requesting telecommunications carrier also has
the duty to negotiate in good faith the terms and conditions of
such agreements.
``(2) Interconnection.--The duty to provide, for the
facilities and equipment of any requesting telecommunications
carrier, interconnection with the local exchange carrier's
network--
``(A) for the transmission and routing of telephone
exchange service and exchange access;
``(B) at any technically feasible point within the
carrier's network;
``(C) that is at least equal in quality to that
provided by the local exchange carrier to itself or to
any subsidiary, affiliate, or any other party to which
the carrier provides interconnection; and
``(D) on rates, terms, and conditions that are just,
reasonable, and nondiscriminatory, in accordance with
the terms and conditions of the agreement and the
requirements of this section and section 252.
``(3) Unbundled access.--The duty to provide, to any
requesting telecommunications carrier for the provision of a
telecommunications service, nondiscriminatory access to network
elements on an unbundled basis at any technically feasible point
on rates, terms, and conditions that are just, reasonable, and
nondiscriminatory in accordance with the terms and conditions of
the agreement and the requirements of this section and section
252. An incumbent local exchange carrier shall
[[Page 110 STAT. 63]]
provide such unbundled network elements in a manner that allows
requesting carriers to combine such elements in order to provide
such telecommunications service.
``(4) Resale.--The duty--
``(A) to offer for resale at wholesale rates any
telecommunications service that the carrier provides at
retail to subscribers who are not telecommunications
carriers; and
``(B) not to prohibit, and not to impose
unreasonable or discriminatory conditions or limitations
on, the resale of such telecommunications service,
except that a State commission may, consistent with
regulations prescribed by the Commission under this
section, prohibit a reseller that obtains at wholesale
rates a telecommunications service that is available at
retail only to a category of subscribers from offering
such service to a different category of subscribers.
``(5) Notice of changes.--The duty to provide reasonable
public notice of changes in the information necessary for the
transmission and routing of services using that local exchange
carrier's facilities or networks, as well as of any other
changes that would affect the interoperability of those
facilities and networks.
``(6) Collocation.--The duty to provide, on rates, terms,
and conditions that are just, reasonable, and nondiscriminatory,
for physical collocation of equipment necessary for
interconnection or access to unbundled network elements at the
premises of the local exchange carrier, except that the carrier
may provide for virtual collocation if the local exchange
carrier demonstrates to the State commission that physical
collocation is not practical for technical reasons or because of
space limitations.
``(d) Implementation.--
``(1) <<NOTE: Regulations.>> In general.--Within 6 months
after the date of enactment of the Telecommunications Act of
1996, the Commission shall complete all actions necessary to
establish regulations to implement the requirements of this
section.
``(2) Access standards.--In determining what network
elements should be made available for purposes of subsection
(c)(3), the Commission shall consider, at a minimum, whether--
``(A) access to such network elements as are
proprietary in nature is necessary; and
``(B) the failure to provide access to such network
elements would impair the ability of the
telecommunications carrier seeking access to provide the
services that it seeks to offer.
``(3) Preservation 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--
``(A) establishes access and interconnection
obligations of local exchange carriers;
``(B) is consistent with the requirements of this
section; and
[[Page 110 STAT. 64]]
``(C) does not substantially prevent implementation
of the requirements of this section and the purposes of
this part.
``(e) Numbering Administration.--
``(1) Commission authority and jurisdiction.--The Commission
shall create or 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 all or any portion of such
jurisdiction.
``(2) Costs.--The cost of establishing telecommunications
numbering administration arrangements and number portability
shall be borne by all telecommunications carriers on a
competitively neutral basis as determined by the Commission.
``(f) Exemptions, Suspensions, and Modifications.--
``(1) Exemption for certain rural telephone companies.--
``(A) Exemption.--Subsection (c) of this section
shall not apply to a rural telephone company until (i)
such company has received a bona fide request for
interconnection, services, or network elements, and (ii)
the State commission determines (under subparagraph (B))
that such request is not unduly economically burdensome,
is technically feasible, and is consistent with section
254 (other than subsections (b)(7) and (c)(1)(D)
thereof).
``(B) State termination of exemption and
implementation schedule.--The party making a bona fide
request of a rural telephone company for
interconnection, services, or network elements shall
submit a notice of its request to the State commission.
The State commission shall conduct an inquiry for the
purpose of determining whether to terminate the
exemption under subparagraph (A). Within 120 days after
the State commission receives notice of the request, the
State commission shall terminate the exemption if the
request is not unduly economically burdensome, is
technically feasible, and is consistent with section 254
(other than subsections (b)(7) and (c)(1)(D) thereof).
Upon termination of the exemption, a State commission
shall establish an implementation schedule for
compliance with the request that is consistent in time
and manner with Commission regulations.
``(C) Limitation on exemption.--The exemption
provided by this paragraph shall not apply with respect
to a request under subsection (c) from a cable operator
providing video programming, and seeking to provide any
telecommunications service, in the area in which the
rural telephone company provides video programming. The
limitation contained in this subparagraph shall not
apply to a rural telephone company that is providing
video programming on the date of enactment of the
Telecommunications Act of 1996.
``(2) Suspensions and modifications for rural carriers.--A
local exchange carrier with fewer than 2 percent of the Nation's
subscriber lines installed in the aggregate
[[Page 110 STAT. 65]]
nationwide may petition a State commission for a suspension or
modification of the application of a requirement or requirements
of subsection (b) or (c) to telephone exchange service
facilities specified in such petition. The State commission
shall grant such petition to the extent that, and for such
duration as, the State commission determines that such
suspension or modification--
``(A) is necessary--
``(i) to avoid a significant adverse economic
impact on users of telecommunications services
generally;
``(ii) to avoid imposing a requirement that is
unduly economically burdensome; or
``(iii) to avoid imposing a requirement that
is technically infeasible; and
``(B) is consistent with the public interest,
convenience, and necessity.
The State commission shall act upon any petition filed under
this paragraph within 180 days after receiving such petition.
Pending such action, the State commission may suspend
enforcement of the requirement or requirements to which the
petition applies with respect to the petitioning carrier or
carriers.
``(g) Continued Enforcement of Exchange Access and Interconnection
Requirements.--On and after the date of enactment of the
Telecommunications Act of 1996, each local exchange carrier, to the
extent that it provides wireline services, shall provide exchange
access, information access, and exchange services for such access to
interexchange carriers and information service providers in accordance
with the same equal access and nondiscriminatory interconnection
restrictions and obligations (including receipt of compensation) that
apply to such carrier on the date immediately preceding the date of
enactment of the Telecommunications Act of 1996 under any court order,
consent decree, or regulation, order, or policy of the Commission, until
such restrictions and obligations are explicitly superseded by
regulations prescribed by the Commission after such date of enactment.
During the period beginning on such date of enactment and until such
restrictions and obligations are so superseded, such restrictions and
obligations shall be enforceable in the same manner as regulations of
the Commission.
``(h) Definition of Incumbent Local Exchange Carrier.--
``(1) Definition.--For purposes of this section, the term
`incumbent local exchange carrier' means, with respect to an
area, the local exchange carrier that--
``(A) on the date of enactment of the
Telecommunications Act of 1996, provided telephone
exchange service in such area; and
``(B)(i) on such date of enactment, was deemed to be
a member of the exchange carrier association pursuant to
section 69.601(b) of the Commission's regulations (47
C.F.R. 69.601(b)); or
``(ii) is a person or entity that, on or after such
date of enactment, became a successor or assign of a
member described in clause (i).
``(2) Treatment of comparable carriers as incumbents.--The
Commission may, by rule, provide for the treatment of a local
exchange carrier (or class or category thereof)
[[Page 110 STAT. 66]]
as an incumbent local exchange carrier for purposes of this
section if--
``(A) such carrier occupies a position in the market
for telephone exchange service within an area that is
comparable to the position occupied by a carrier
described in paragraph (1);
``(B) such carrier has substantially replaced an
incumbent local exchange carrier described in paragraph
(1); and
``(C) such treatment is consistent with the public
interest, convenience, and necessity and the purposes of
this section.
``(i) Savings Provision.--Nothing in this section shall be construed
to limit or otherwise affect the Commission's authority under section
201.
``SEC. 252. <<NOTE: 47 USC 252.>> PROCEDURES FOR NEGOTIATION,
ARBITRATION, AND APPROVAL OF AGREEMENTS.
``(a) Agreements Arrived at Through Negotiation.--
``(1) Voluntary negotiations.--Upon receiving a request for
interconnection, services, or network elements pursuant to
section 251, an incumbent local exchange carrier may negotiate
and enter into a binding agreement with the requesting
telecommunications carrier or carriers without regard to the
standards set forth in subsections (b) and (c) of section 251.
The agreement shall include a detailed schedule of itemized
charges for interconnection and each service or network element
included in the agreement. The agreement, including any
interconnection agreement negotiated before the date of
enactment of the Telecommunications Act of 1996, shall be
submitted to the State commission under subsection (e) of this
section.
``(2) Mediation.--Any party negotiating an agreement under
this section may, at any point in the negotiation, ask a State
commission to participate in the negotiation and to mediate any
differences arising in the course of the negotiation.
``(b) Agreements Arrived at Through Compulsory Arbitration.--
``(1) Arbitration.--During the period from the 135th to the
160th day (inclusive) after the date on which an incumbent local
exchange carrier receives a request for negotiation under this
section, the carrier or any other party to the negotiation may
petition a State commission to arbitrate any open issues.
``(2) Duty of petitioner.--
``(A) A party that petitions a State commission
under paragraph (1) shall, at the same time as it
submits the petition, provide the State commission all
relevant documentation concerning--
``(i) the unresolved issues;
``(ii) the position of each of the parties
with respect to those issues; and
``(iii) any other issue discussed and resolved
by the parties.
``(B) A party petitioning a State commission under
paragraph (1) shall provide a copy of the petition and
any documentation to the other party or parties not
later than the day on which the State commission
receives the petition.
[[Page 110 STAT. 67]]
``(3) Opportunity to respond.--A non-petitioning party to a
negotiation under this section may respond to the other party's
petition and provide such additional information as it wishes
within 25 days after the State commission receives the petition.
``(4) Action by state commission.--
``(A) The State commission shall limit its
consideration of any petition under paragraph (1) (and
any response thereto) to the issues set forth in the
petition and in the response, if any, filed under
paragraph (3).
``(B) The State commission may require the
petitioning party and the responding party to provide
such information as may be necessary for the State
commission to reach a decision on the unresolved issues.
If any party refuses or fails unreasonably to respond on
a timely basis to any reasonable request from the State
commission, then the State commission may proceed on the
basis of the best information available to it from
whatever source derived.
``(C) The State commission shall resolve each issue
set forth in the petition and the response, if any, by
imposing appropriate conditions as required to implement
subsection (c) upon the parties to the agreement, and
shall conclude the resolution of any unresolved issues
not later than 9 months after the date on which the
local exchange carrier received the request under this
section.
``(5) Refusal to negotiate.--The refusal of any other party
to the negotiation to participate further in the negotiations,
to cooperate with the State commission in carrying out its
function as an arbitrator, or to continue to negotiate in good
faith in the presence, or with the assistance, of the State
commission shall be considered a failure to negotiate in good
faith.
``(c) Standards for Arbitration.--In resolving by arbitration under
subsection (b) any open issues and imposing conditions upon the parties
to the agreement, a State commission shall--
``(1) ensure that such resolution and conditions meet the
requirements of section 251, including the regulations
prescribed by the Commission pursuant to section 251;
``(2) establish any rates for interconnection, services, or
network elements according to subsection (d); and
``(3) provide a schedule for implementation of the terms and
conditions by the parties to the agreement.
``(d) Pricing Standards.--
``(1) Interconnection and network element charges.--
Determinations by a State commission of the just and reasonable
rate for the interconnection of facilities and equipment for
purposes of subsection (c)(2) of section 251, and the just and
reasonable rate for network elements for purposes of subsection
(c)(3) of such section--
``(A) shall be--
``(i) based on the cost (determined without
reference to a rate-of-return or other rate-based
proceeding) of providing the interconnection or
network element (whichever is applicable), and
``(ii) nondiscriminatory, and
``(B) may include a reasonable profit.
[[Page 110 STAT. 68]]
``(2) Charges for transport and termination of traffic.--
``(A) In general.--For the purposes of compliance by
an incumbent local exchange carrier with section
251(b)(5), a State commission shall not consider the
terms and conditions for reciprocal compensation 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 transport and
termination on each carrier's network facilities
of calls that originate on the network facilities
of the other carrier; and
``(ii) such terms and conditions determine
such costs on the basis of a reasonable
approximation of the additional costs of
terminating such calls.
``(B) Rules of construction.--This paragraph shall
not be construed--
``(i) to preclude arrangements that afford the
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 transporting or terminating
calls, or to require carriers to maintain records
with respect to the additional costs of such
calls.
``(3) Wholesale prices for telecommunications services.--For
the purposes of section 251(c)(4), a State commission shall
determine wholesale rates on the basis of retail rates charged
to subscribers for the telecommunications service requested,
excluding the portion thereof attributable to any marketing,
billing, collection, and other costs that will be avoided by the
local exchange carrier.
``(e) Approval by State Commission.--
``(1) Approval required.--Any interconnection agreement
adopted by negotiation or arbitration shall be submitted for
approval to the State commission. A State commission to which an
agreement is submitted shall approve or reject the agreement,
with written findings as to any deficiencies.
``(2) Grounds for rejection.--The State commission may only
reject--
``(A) an agreement (or any portion thereof) adopted
by negotiation under subsection (a) if it finds that--
``(i) the agreement (or portion thereof)
discriminates against a telecommunications carrier
not a party to the agreement; or
``(ii) the implementation of such agreement or
portion is not consistent with the public
interest, convenience, and necessity; or
``(B) an agreement (or any portion thereof) adopted
by arbitration under subsection (b) if it finds that the
agreement does not meet the requirements of section 251,
including the regulations prescribed by the Commission
pursuant to section 251, or the standards set forth in
subsection (d) of this section.
[[Page 110 STAT. 69]]
``(3) Preservation of authority.--Notwithstanding paragraph
(2), but subject to section 253, nothing in this section shall
prohibit a State commission from establishing or enforcing other
requirements of State law in its review of an agreement,
including requiring compliance with intrastate
telecommunications service quality standards or requirements.
``(4) Schedule for decision.--If the State commission does
not act to approve or reject the agreement within 90 days after
submission by the parties of an agreement adopted by negotiation
under subsection (a), or within 30 days after submission by the
parties of an agreement adopted by arbitration under subsection
(b), the agreement shall be deemed approved. No State court
shall have jurisdiction to review the action of a State
commission in approving or rejecting an agreement under this
section.
``(5) Commission to act if state will not act.--If a State
commission fails to act to carry out its responsibility under
this section in any proceeding or other matter under this
section, then the Commission shall issue an order preempting the
State commission's jurisdiction of that proceeding or matter
within 90 days after being notified (or taking notice) of such
failure, and shall assume the responsibility of the State
commission under this section with respect to the proceeding or
matter and act for the State commission.
``(6) Review of state commission actions.--In a case in
which a State fails to act as described in paragraph (5), the
proceeding by the Commission under such paragraph and any
judicial review of the Commission's actions shall be the
exclusive remedies for a State commission's failure to act. In
any case in which a State commission makes a determination under
this section, any party aggrieved by such determination may
bring an action in an appropriate Federal district court to
determine whether the agreement or statement meets the
requirements of section 251 and this section.
``(f) Statements of Generally Available Terms.--
``(1) In general.--A Bell operating company may prepare and
file with a State commission a statement of the terms and
conditions that such company generally offers within that State
to comply with the requirements of section 251 and the
regulations thereunder and the standards applicable under this
section.
``(2) State commission review.--A State commission may not
approve such statement unless such statement complies with
subsection (d) of this section and section 251 and the
regulations thereunder. Except as provided in section 253,
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.
``(3) Schedule for review.--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
paragraph (2) (including any reconsideration thereof),
unless the submitting carrier agrees to an extension of
the period for such review; or
[[Page 110 STAT. 70]]
``(B) permit such statement to take effect.
``(4) Authority to continue review.--Paragraph (3) shall not
preclude the State commission from continuing to review a
statement that has been permitted to take effect under
subparagraph (B) of such paragraph or from approving or
disapproving such statement under paragraph (2).
``(5) Duty to negotiate not affected.--The submission or
approval of a statement under this subsection shall not relieve
a Bell operating company of its duty to negotiate the terms and
conditions of an agreement under section 251.
``(g) Consolidation of State Proceedings.--Where not inconsistent
with the requirements of this Act, a State commission may, to the extent
practical, consolidate proceedings under sections 214(e), 251(f), 253,
and this section in order to reduce administrative burdens on
telecommunications carriers, other parties to the proceedings, and the
State commission in carrying out its responsibilities under this Act.
``(h) <<NOTE: Public information.>> Filing Required.--A State
commission shall make a copy of each agreement approved under subsection
(e) and each statement approved under subsection (f) available for
public inspection and copying within 10 days after the agreement or
statement is approved. The State commission may charge a reasonable and
nondiscriminatory fee to the parties to the agreement or to the party
filing the statement to cover the costs of approving and filing such
agreement or statement.
``(i) Availability to Other Telecommunications Carriers.--A local
exchange carrier shall make available any interconnection, service, or
network element provided under an agreement approved under this section
to which it is a party to any other requesting telecommunications
carrier upon the same terms and conditions as those provided in the
agreement.
``(j) Definition of Incumbent Local Exchange Carrier.--For purposes
of this section, the term `incumbent local exchange carrier' has the
meaning provided in section 251(h).
``SEC. 253. <<NOTE: 47 USC 253.>> 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 any interstate or
intrastate telecommunications service.
``(b) State Regulatory Authority.--Nothing in this section shall
affect the ability of a State to impose, on a competitively neutral
basis and consistent with section 254, 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) State and Local Government Authority.--Nothing in this section
affects the authority of a State or 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 public rights-of-way on a
nondiscriminatory basis, if the compensation required is publicly
disclosed by such government.
``(d) Preemption.--If, after notice and an opportunity for public
comment, the Commission determines that a State or local government has
permitted or imposed any statute, regulation, or legal requirement that
violates subsection (a) or (b), the Commission
[[Page 110 STAT. 71]]
shall preempt the enforcement of such statute, regulation, or legal
requirement to the extent necessary to correct such violation or
inconsistency.
``(e) Commercial Mobile Service Providers.--Nothing in this section
shall affect the application of section 332(c)(3) to commercial mobile
service providers.
``(f) Rural Markets.--It shall not be a violation of this section
for a State to require a telecommunications carrier that seeks to
provide telephone exchange service or exchange access in a service area
served by a rural telephone company to meet the requirements in section
214(e)(1) for designation as an eligible telecommunications carrier for
that area before being permitted to provide such service. This
subsection shall not apply--
``(1) to a service area served by a rural telephone company
that has obtained an exemption, suspension, or modification of
section 251(c)(4) that effectively prevents a competitor from
meeting the requirements of section 214(e)(1); and
``(2) to a provider of commercial mobile services.
``SEC. 254. <<NOTE: 47 USC 254.>> UNIVERSAL SERVICE.
``(a) Procedures to Review Universal Service Requirements.--
``(1) Federal-state joint board on universal service.--
Within one month after the date of enactment of the
Telecommunications Act of 1996, the Commission shall institute
and refer to a Federal-State Joint Board under section 410(c) a
proceeding to recommend changes to any of its regulations in
order to implement sections 214(e) and this section, including
the definition of the services that are supported by Federal
universal service support mechanisms and a specific timetable
for completion of such recommendations. In addition to the
members of the Joint Board required under section 410(c), one
member of such Joint Board shall be a State-appointed utility
consumer advocate nominated by a national organization of State
utility consumer advocates. The Joint Board shall, after notice
and opportunity for public comment, make its recommendations to
the Commission 9 months after the date of enactment of the
Telecommunications Act of 1996.
``(2) Commission action.--The Commission shall initiate a
single proceeding to implement the recommendations from the
Joint Board required by paragraph (1) and shall complete such
proceeding within 15 months after the date of enactment of the
Telecommunications Act of 1996. The rules established by such
proceeding shall include a definition of the services that are
supported by Federal universal service support mechanisms and a
specific timetable for implementation. Thereafter, the
Commission shall complete any proceeding to implement subsequent
recommendations from any Joint Board on universal service within
one year after receiving such recommendations.
``(b) Universal Service Principles.--The Joint Board and the
Commission shall base policies for the preservation and advancement of
universal service on the following principles:
``(1) Quality and rates.--Quality services should be
available at just, reasonable, and affordable rates.
[[Page 110 STAT. 72]]
``(2) Access to advanced services.--Access to advanced
telecommunications and information services should be provided
in all regions of the Nation.
``(3) Access in rural and high cost areas.--Consumers in all
regions of the Nation, including low-income consumers and those
in rural, insular, and high cost areas, should have access to
telecommunications and information services, including
interexchange services and advanced telecommunications and
information services, that are reasonably comparable to those
services provided in urban areas and that are available at rates
that are reasonably comparable to rates charged for similar
services in urban areas.
``(4) Equitable and nondiscriminatory contributions.--All
providers of telecommunications services should make an
equitable and nondiscriminatory contribution to the preservation
and advancement of universal service.
``(5) Specific and predictable support mechanisms.--There
should be specific, predictable and sufficient Federal and State
mechanisms to preserve and advance universal service.
``(6) Access to advanced telecommunications services for
schools, health care, and libraries.--Elementary and secondary
schools and classrooms, health care providers, and libraries
should have access to advanced telecommunications services as
described in subsection (h).
``(7) Additional principles.--Such other principles as the
Joint Board and the Commission determine are necessary and
appropriate for the protection of the public interest,
convenience, and necessity and are consistent with this Act.
``(c) Definition.--
``(1) In general.--Universal service is an evolving level of
telecommunications services that the Commission shall establish
periodically under this section, taking into account advances in
telecommunications and information technologies and services.
The Joint Board in recommending, and the Commission in
establishing, the definition of the services that are supported
by Federal universal service support mechanisms shall consider
the extent to which such telecommunications services--
``(A) are essential to education, public health, or
public safety;
``(B) have, through the operation of market choices
by customers, been subscribed to by a substantial
majority of residential customers;
``(C) are being deployed in public
telecommunications networks by telecommunications
carriers; and
``(D) are consistent with the public interest,
convenience, and necessity.
``(2) Alterations and modifications.--The Joint Board may,
from time to time, recommend to the Commission modifications in
the definition of the services that are supported by Federal
universal service support mechanisms.
``(3) Special services.--In addition to the services
included in the definition of universal service under paragraph
(1), the Commission may designate additional services for such
support mechanisms for schools, libraries, and health care
providers for the purposes of subsection (h).
[[Page 110 STAT. 73]]
``(d) Telecommunications Carrier Contribution.--Every
telecommunications carrier that provides interstate telecommunications
services shall contribute, on an equitable and nondiscriminatory basis,
to the specific, predictable, and sufficient mechanisms established by
the Commission to preserve and advance universal service. The Commission
may exempt a carrier or class of carriers from this requirement if the
carrier's telecommunications activities are limited to such an extent
that the level of such carrier's contribution to the preservation and
advancement of universal service would be de minimis. Any other provider
of interstate telecommunications may be required to contribute to the
preservation and advancement of universal service if the public interest
so requires.
``(e) Universal Service Support.--After the date on which Commission
regulations implementing this section take effect, only an eligible
telecommunications carrier designated under section 214(e) shall be
eligible to receive specific Federal universal service support. A
carrier that receives such support shall use that support only for the
provision, maintenance, and upgrading of facilities and services for
which the support is intended. Any such support should be explicit and
sufficient to achieve the purposes of this section.
``(f) State Authority.--A State may adopt regulations not
inconsistent with the Commission's rules to preserve and advance
universal service. Every telecommunications carrier that provides
intrastate telecommunications services shall contribute, on an equitable
and nondiscriminatory basis, in a manner determined by the State to the
preservation and advancement of universal service in that State. A State
may adopt regulations to provide for additional definitions and
standards to preserve and advance universal service within that State
only to the extent that such regulations adopt additional specific,
predictable, and sufficient mechanisms to support such definitions or
standards that do not rely on or burden Federal universal service
support mechanisms.
``(g) <<NOTE: Rules. Rural areas.>> Interexchange and Interstate
Services.--Within 6 months after the date of enactment of the
Telecommunications Act of 1996, the Commission shall adopt rules to
require that the rates charged by providers of interexchange
telecommunications services to subscribers in rural and high cost areas
shall be no higher than the rates charged by each such provider to its
subscribers in urban areas. Such rules shall also require that a
provider of interstate interexchange telecommunications services shall
provide such services to its subscribers in each State at rates no
higher than the rates charged to its subscribers in any other State.
``(h) Telecommunications Services for Certain Providers.--
``(1) In general.--
``(A) Health care providers for rural areas.--A
telecommunications carrier shall, upon receiving a bona
fide request, provide telecommunications services which
are necessary for the provision of health care services
in a State, including instruction relating to such
services, to any public or nonprofit health care
provider that serves persons who reside in rural areas
in that State at rates that are reasonably comparable to
rates charged for similar services in urban areas in
that State. A telecommunications carrier providing
service under this paragraph shall be entitled to have
an amount equal to the difference, if any,
[[Page 110 STAT. 74]]
between the rates for services provided to health care
providers for rural areas in a State and the rates for
similar services provided to other customers in
comparable rural areas in that State treated as a
service obligation as a part of its obligation to
participate in the mechanisms to preserve and advance
universal service.
``(B) Educational providers and libraries.--All
telecommunications carriers serving a geographic area
shall, upon a bona fide request for any of its services
that are within the definition of universal service
under subsection (c)(3), provide such services to
elementary schools, secondary schools, and libraries for
educational purposes at rates less than the amounts
charged for similar services to other parties. The
discount shall be an amount that the Commission, with
respect to interstate services, and the States, with
respect to intrastate services, determine is appropriate
and necessary to ensure affordable access to and use of
such services by such entities. A telecommunications
carrier providing service under this paragraph shall--
``(i) have an amount equal to the amount of
the discount treated as an offset to its
obligation to contribute to the mechanisms to
preserve and advance universal service, or
``(ii) notwithstanding the provisions of
subsection (e) of this section, receive
reimbursement utilizing the support mechanisms to
preserve and advance universal service.
``(2) Advanced services.--The Commission shall establish
competitively neutral rules--
``(A) to enhance, to the extent technically feasible
and economically reasonable, access to advanced
telecommunications and information services for all
public and nonprofit elementary and secondary school
classrooms, health care providers, and libraries; and
``(B) to define the circumstances under which a
telecommunications carrier may be required to connect
its network to such public institutional
telecommunications users.
``(3) Terms and conditions.--Telecommunications services and
network capacity provided to a public institutional
telecommunications user under this subsection may not be sold,
resold, or otherwise transferred by such user in consideration
for money or any other thing of value.
``(4) Eligibility of users.--No entity listed in this
subsection shall be entitled to preferential rates or treatment
as required by this subsection, if such entity operates as a
for-profit business, is a school described in paragraph (5)(A)
with an endowment of more than $50,000,000, or is a library not
eligible for participation in State-based plans for funds under
title III of the Library Services and Construction Act (20
U.S.C. 335c et seq.).
``(5) Definitions.--For purposes of this subsection:
``(A) Elementary and secondary schools.--The term
`elementary and secondary schools' means elementary
schools and secondary schools, as defined in paragraphs
(14) and (25), respectively, of section 14101 of the
[[Page 110 STAT. 75]]
Elementary and Secondary Education Act of 1965 (20
U.S.C. 8801).
``(B) Health care provider.--The term `health care
provider' means--
``(i) post-secondary educational institutions
offering health care instruction, teaching
hospitals, and medical schools;
``(ii) community health centers or health
centers providing health care to migrants;
``(iii) local health departments or agencies;
``(iv) community mental health centers;
``(v) not-for-profit hospitals;
``(vi) rural health clinics; and
``(vii) consortia of health care providers
consisting of one or more entities described in
clauses (i) through (vi).
``(C) Public institutional telecommunications
user.--The term `public institutional telecommunications
user' means an elementary or secondary school, a
library, or a health care provider as those terms are
defined in this paragraph.
``(i) Consumer Protection.--The Commission and the States should
ensure that universal service is available at rates that are just,
reasonable, and affordable.
``(j) Lifeline Assistance.--Nothing in this section shall affect the
collection, distribution, or administration of the Lifeline Assistance
Program provided for by the Commission under regulations set forth in
section 69.117 of title 47, Code of Federal Regulations, and other
related sections of such title.
``(k) Subsidy of Competitive Services Prohibited.--A
telecommunications carrier may not use services that are not competitive
to subsidize services that are subject to competition. The Commission,
with respect to interstate services, and the States, with respect to
intrastate services, shall establish any necessary cost allocation
rules, accounting safeguards, and guidelines to ensure that services
included in the definition of universal service bear no more than a
reasonable share of the joint and common costs of facilities used to
provide those services.
``SEC. 255. <<NOTE: 47 USC 255.>> ACCESS BY PERSONS WITH DISABILITIES.
``(a) Definitions.--As used in this section--
``(1) Disability.--The term `disability' has the meaning
given to it by section 3(2)(A) of the Americans with
Disabilities Act of 1990 (42 U.S.C. 12102(2)(A)).
``(2) Readily achievable.--The term `readily achievable' has
the meaning given to it by section 301(9) of that Act (42 U.S.C.
12181(9)).
``(b) Manufacturing.--A manufacturer of telecommunications equipment
or customer premises equipment shall ensure that the equipment is
designed, developed, and fabricated to be accessible to and usable by
individuals with disabilities, if readily achievable.
``(c) Telecommunications Services.--A provider of telecommunications
service shall ensure that the service is accessible to and usable by
individuals with disabilities, if readily achievable.
``(d) Compatibility.--Whenever the requirements of subsections (b)
and (c) are not readily achievable, such a manufacturer or provider
shall ensure that the equipment or service is compatible
[[Page 110 STAT. 76]]
with existing peripheral devices or specialized customer premises
equipment commonly used by individuals with disabilities to achieve
access, if readily achievable.
``(e) Guidelines.--Within 18 months after the date of enactment of
the Telecommunications Act of 1996, the Architectural and Transportation
Barriers Compliance Board shall develop guidelines for accessibility of
telecommunications equipment and customer premises equipment in
conjunction with the Commission. The Board shall review and update the
guidelines periodically.
``(f) No Additional Private Rights Authorized.--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. 256. <<NOTE: 47 USC 256.>> COORDINATION FOR INTERCONNECTIVITY.
``(a) Purpose.--It is the purpose of this section--
``(1) to promote nondiscriminatory accessibility by the
broadest number of users and vendors of communications products
and services to public telecommunications networks used to
provide telecommunications service through--
``(A) coordinated public telecommunications network
planning and design by telecommunications carriers and
other providers of telecommunications service; and
``(B) public telecommunications network
interconnectivity, and interconnectivity of devices with
such networks used to provide telecommunications
service; and
``(2) to ensure the ability of users and information
providers to seamlessly and transparently transmit and receive
information between and across telecommunications networks.
``(b) Commission Functions.--In carrying out the purposes of this
section, the Commission--
``(1) shall establish procedures for Commission oversight of
coordinated network planning by telecommunications carriers and
other providers of telecommunications service for the effective
and efficient interconnection of public telecommunications
networks used to provide telecommunications service; 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 public telecommunications network
interconnectivity standards that promote access to--
``(A) public telecommunications networks used to
provide telecommunications service;
``(B) network capabilities and services by
individuals with disabilities; and
``(C) information services by subscribers of rural
telephone companies.
``(c) Commission's Authority.--Nothing in this section shall be
construed as expanding or limiting any authority that the Commission may
have under law in effect before the date of enactment of the
Telecommunications Act of 1996.
``(d) Definition.--As used in this section, the term `public
telecommunications network interconnectivity' means the ability of two
or more public telecommunications networks used to provide
telecommunications service to communicate and exchange informa
[[Page 110 STAT. 77]]
tion without degeneration, and to interact in concert with one another.
``SEC. 257. <<NOTE: 47 USC 257.>> MARKET ENTRY BARRIERS PROCEEDING.
``(a) <<NOTE: Regulations.>> Elimination of Barriers.--Within 15
months after the date of enactment of the Telecommunications Act of
1996, 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) <<NOTE: Reports.>> 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. 258. <<NOTE: 47 USC 258.>> ILLEGAL CHANGES IN SUBSCRIBER CARRIER
SELECTIONS.
``(a) Prohibition.--No telecommunications 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 telecommunications 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. 259. <<NOTE: 47 USC 259.>> INFRASTRUCTURE SHARING.
``(a) Regulations Required.--The Commission shall prescribe, within
one year after the date of enactment of the Telecommunications Act of
1996, regulations that require incumbent local exchange carriers (as
defined in section 251(h)) to make available to any qualifying carrier
such public switched network infrastructure, technology, information,
and telecommunications facilities and functions as may be requested by
such qualifying carrier for the purpose of enabling such qualifying
carrier to provide telecommunications services, or to provide access to
information services, in the service area in which such qualifying
carrier has requested
[[Page 110 STAT. 78]]
and obtained designation as an eligible telecommunications carrier under
section 214(e).
``(b) Terms and Conditions of Regulations.--The regulations
prescribed by the Commission pursuant to this section shall--
``(1) not require a local exchange carrier to which this
section applies to take any action that is economically
unreasonable or that is contrary to the public interest;
``(2) permit, but shall not require, the joint ownership or
operation of public switched network infrastructure and services
by or among such local exchange carrier and a qualifying
carrier;
``(3) ensure that such local exchange carrier will not be
treated by the Commission or any State as a common carrier for
hire or as offering common carrier services with respect to any
infrastructure, technology, information, facilities, or
functions made available to a qualifying carrier in accordance
with regulations issued pursuant to this section;
``(4) ensure that such local exchange carrier makes such
infrastructure, technology, information, facilities, or
functions available to a qualifying carrier on just and
reasonable terms and conditions that permit such qualifying
carrier to fully benefit from the economies of scale and scope
of such local exchange carrier, as determined in accordance with
guidelines prescribed by the Commission in regulations issued
pursuant to this section;
``(5) establish conditions that promote cooperation between
local exchange carriers to which this section applies and
qualifying carriers;
``(6) not require a local exchange carrier to which this
section applies to engage in any infrastructure sharing
agreement for any services or access which are to be provided or
offered to consumers by the qualifying carrier in such local
exchange carrier's telephone exchange area; and
``(7) require that such local exchange carrier file with the
Commission or State for public inspection, any tariffs,
contracts, or other arrangements showing the rates, terms, and
conditions under which such carrier is making available public
switched network infrastructure and functions under this
section.
``(c) Information Concerning Deployment of New Services and
Equipment.--A local exchange carrier to which this section applies that
has entered into an infrastructure sharing agreement under this section
shall provide to each party to such agreement timely information on the
planned deployment of telecommunications services and equipment,
including any software or upgrades of software integral to the use or
operation of such telecommunications equipment.
``(d) Definition.--For purposes of this section, the term
`qualifying carrier' means a telecommunications carrier that--
``(1) lacks economies of scale or scope, as determined in
accordance with regulations prescribed by the Commission
pursuant to this section; and
``(2) offers telephone exchange service, exchange access,
and any other service that is included in universal service, to
all consumers without preference throughout the service area for
which such carrier has been designated as an eligible
telecommunications carrier under section 214(e).
[[Page 110 STAT. 79]]
``SEC. 260. <<NOTE: 47 USC 260.>> PROVISION OF TELEMESSAGING SERVICE.
``(a) Nondiscrimination Safeguards.--Any local exchange carrier
subject to the requirements of section 251(c) that provides
telemessaging service--
``(1) shall not subsidize its telemessaging service directly
or indirectly from its telephone exchange service or its
exchange access; and
``(2) shall not prefer or discriminate in favor of its
telemessaging service operations in its provision of
telecommunications services.
``(b) Expedited Consideration of Complaints.--The Commission shall
establish procedures for the receipt and review of complaints concerning
violations of subsection (a) or the regulations thereunder that result
in material financial harm to a provider of telemessaging service. Such
procedures shall ensure that the Commission will make a final
determination with respect to any such complaint within 120 days after
receipt of the complaint. If the complaint contains an appropriate
showing that the alleged violation occurred, the Commission shall,
within 60 days after receipt of the complaint, order the local exchange
carrier and any affiliates to cease engaging in such violation pending
such final determination.
``(c) Definition.--As used in this section, the term `telemessaging
service' means voice mail and voice storage and retrieval services, any
live operator services used to record, transcribe, or relay messages
(other than telecommunications relay services), and any ancillary
services offered in combination with these services.
``SEC. 261. <<NOTE: 47 USC 261.>> EFFECT ON OTHER REQUIREMENTS.
``(a) Commission Regulations.--Nothing in this part shall be
construed to prohibit the Commission from enforcing regulations
prescribed prior to the date of enactment of the Telecommunications Act
of 1996 in fulfilling the requirements of this part, to the extent that
such regulations are not inconsistent with the provisions of this part.
``(b) Existing State Regulations.--Nothing in this part shall be
construed to prohibit any State commission from enforcing regulations
prescribed prior to the date of enactment of the Telecommunications Act
of 1996, or from prescribing regulations after such date of enactment,
in fulfilling the requirements of this part, if such regulations are not
inconsistent with the provisions of this part.
``(c) Additional State Requirements.--Nothing in this part precludes
a State from imposing requirements on a telecommunications carrier for
intrastate services that are necessary to further competition in the
provision of telephone exchange service or exchange access, as long as
the State's requirements are not inconsistent with this part or the
Commission's regulations to implement this part.''.
(b) 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--COMMON CARRIER REGULATION''.
(c) <<NOTE: 47 USC 151 note.>> Stylistic Consistency.--The Act is
amended so that--
[[Page 110 STAT. 80]]
(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 (a).
SEC. 102. ELIGIBLE TELECOMMUNICATIONS CARRIERS.
(a) In General.--Section 214 (47 U.S.C. 214) is amended by adding at
the end thereof the following new subsection:
``(e) Provision of Universal Service.--
``(1) Eligible telecommunications carriers.--A common
carrier designated as an eligible telecommunications carrier
under paragraph (2) or (3) shall be eligible to receive
universal service support in accordance with section 254 and
shall, throughout the service area for which the designation is
received--
``(A) offer the services that are supported by
Federal universal service support mechanisms under
section 254(c), either using its own facilities or a
combination of its own facilities and resale of another
carrier's services (including the services offered by
another eligible telecommunications carrier); and
``(B) advertise the availability of such services
and the charges therefor using media of general
distribution.
``(2) Designation of eligible telecommunications carriers.--
A State commission shall upon its own motion or upon request
designate a common carrier that meets the requirements of
paragraph (1) as an eligible telecommunications carrier for a
service area designated by the State commission. Upon request
and consistent with the public interest, convenience, and
necessity, the State commission may, in the case of an area
served by a rural telephone company, and shall, in the case of
all other areas, designate more than one common carrier as an
eligible telecommunications carrier for a service area
designated by the State commission, so long as each additional
requesting carrier meets the requirements of paragraph (1).
Before designating an additional eligible telecommunications
carrier for an area served by a rural telephone company, the
State commission shall find that the designation is in the
public interest.
``(3) Designation of eligible telecommunications carriers
for unserved areas.--If no common carrier will provide the
services that are supported by Federal universal service support
mechanisms under section 254(c) to an unserved community or any
portion thereof that requests such service, the Commission, with
respect to interstate services, or a State commission, with
respect to intrastate services, shall determine which common
carrier or carriers are best able to provide such service to the
requesting unserved community or portion thereof and shall order
such carrier or carriers to provide such service for that
unserved community or portion thereof. Any carrier or carriers
ordered to provide such service under this paragraph shall meet
the requirements of paragraph (1) and shall be designated as an
eligible telecommunications carrier for that community or
portion thereof.
[[Page 110 STAT. 81]]
``(4) Relinquishment of universal service.--A State
commission shall permit an eligible telecommunications carrier
to relinquish its designation as such a carrier in any area
served by more than one eligible telecommunications carrier. An
eligible telecommunications carrier that seeks to relinquish its
eligible telecommunications carrier designation for an area
served by more than one eligible telecommunications carrier
shall give advance notice to the State commission of such
relinquishment. Prior to permitting a telecommunications carrier
designated as an eligible telecommunications carrier to cease
providing universal service in an area served by more than one
eligible telecommunications carrier, the State commission shall
require the remaining eligible telecommunications carrier or
carriers to ensure that all customers served by the
relinquishing carrier will continue to be served, and shall
require sufficient notice to permit the purchase or construction
of adequate facilities by any remaining eligible
telecommunications carrier. The State commission shall establish
a time, not to exceed one year after the State commission
approves such relinquishment under this paragraph, within which
such purchase or construction shall be completed.
``(5) Service area defined.--The term `service area' means a
geographic area established by a State commission for the
purpose of determining universal service obligations and support
mechanisms. In the case of an area served by a rural telephone
company, `service area' means such company's `study area' unless
and until the Commission and the States, after taking into
account recommendations of a Federal-State Joint Board
instituted under section 410(c), establish a different
definition of service area for such company.''.
SEC. 103. EXEMPT TELECOMMUNICATIONS COMPANIES.
The Public Utility Holding Company Act of 1935 (15 U.S.C. 79 and
following) is amended by redesignating sections 34 and 35 <<NOTE: 15 USC
79z-6, 79.>> as sections 35 and 36, respectively, and by inserting the
following new section after section 33:
``SEC. 34. <<NOTE: 15 USC 79z-5c.>> EXEMPT TELECOMMUNICATIONS
COMPANIES.
``(a) Definitions.--For purposes of this section--
``(1) Exempt telecommunications company.--The term `exempt
telecommunications company' means any person determined by the
Federal Communications Commission to be engaged directly or
indirectly, wherever located, through one or more affiliates (as
defined in section 2(a)(11)(B)), and exclusively in the business
of providing---
``(A) telecommunications services;
``(B) information services;
``(C) other services or products subject to the
jurisdiction of the Federal Communications Commission;
or
``(D) products or services that are related or
incidental to the provision of a product or service
described in subparagraph (A), (B), or (C).
No person shall be deemed to be an exempt telecommunications
company under this section unless such person has applied to the
Federal Communications Commission for a determination under this
paragraph. A person applying in good faith for such a
determination shall be deemed an exempt telecommunications
company under this section, with all of the exemptions
[[Page 110 STAT. 82]]
provided by this section, until the Federal Communications
Commission makes such determination. <<NOTE: Notification.>>
The Federal Communications Commission shall make such
determination within 60 days of its receipt of any such
application filed after the enactment of this section and shall
notify the Commission whenever a determination is made under
this paragraph that any person is an exempt telecommunications
company. <<NOTE: Rules.>> Not later than 12 months after the
date of enactment of this section, the Federal Communications
Commission shall promulgate rules implementing the provisions of
this paragraph which shall be applicable to applications filed
under this paragraph after the effective date of such rules.
``(2) Other terms.--For purposes of this section, the terms
`telecommunications services' and `information services' shall
have the same meanings as provided in the Communications Act of
1934.
``(b) State Consent for Sale of Existing Rate-Based Facilities.--If
a rate or charge for the sale of electric energy or natural gas (other
than any portion of a rate or charge which represents recovery of the
cost of a wholesale rate or charge) for, or in connection with, assets
of a public utility company that is an associate company or affiliate of
a registered holding company was in effect under the laws of any State
as of December 19, 1995, the public utility company owning such assets
may not sell such assets to an exempt telecommunications company that is
an associate company or affiliate unless State commissions having
jurisdiction over such public utility company approve such sale. Nothing
in this subsection shall preempt the otherwise applicable authority of
any State to approve or disapprove the sale of such assets. The approval
of the Commission under this Act shall not be required for the sale of
assets as provided in this subsection.
``(c) Ownership of ETCS by Exempt Holding Companies.--
Notwithstanding any provision of this Act, a holding company that is
exempt under section 3 of this Act shall be permitted, without condition
or limitation under this Act, to acquire and maintain an interest in the
business of one or more exempt telecommunications companies.
``(d) Ownership of ETCS by Registered Holding Companies.--
Notwithstanding any provision of this Act, a registered holding company
shall be permitted (without the need to apply for, or receive, approval
from the Commission, and otherwise without condition under this Act) to
acquire and hold the securities, or an interest in the business, of one
or more exempt telecommunications companies.
``(e) Financing and Other Relationships Between ETCS and Registered
Holding Companies.--The relationship between an exempt
telecommunications company and a registered holding company, its
affiliates and associate companies, shall remain subject to the
jurisdiction of the Commission under this Act: Provided, That--
``(1) section 11 of this Act shall not prohibit the
ownership of an interest in the business of one or more exempt
telecommunications companies by a registered holding company
(regardless of activities engaged in or where facilities owned
or operated by such exempt telecommunications companies are
located), and such ownership by a registered holding company
[[Page 110 STAT. 83]]
shall be deemed consistent with the operation of an integrated
public utility system;
``(2) the ownership of an interest in the business of one or
more exempt telecommunications companies by a registered holding
company (regardless of activities engaged in or where facilities
owned or operated by such exempt telecommunications companies
are located) shall be considered as reasonably incidental, or
economically necessary or appropriate, to the operations of an
integrated public utility system;
``(3) the Commission shall have no jurisdiction under this
Act over, and there shall be no restriction or approval required
under this Act with respect to (A) the issue or sale of a
security by a registered holding company for purposes of
financing the acquisition of an exempt telecommunications
company, or (B) the guarantee of a security of an exempt
telecommunications company by a registered holding company; and
``(4) except for costs that should be fairly and equitably
allocated among companies that are associate companies of a
registered holding company, the Commission shall have no
jurisdiction under this Act over the sales, service, and
construction contracts between an exempt telecommunications
company and a registered holding company, its affiliates and
associate companies.
``(f) Reporting Obligations Concerning Investments and Activities of
Registered Public-Utility Holding Company Systems.--
``(1) Obligations to report information.--Any registered
holding company or subsidiary thereof that acquires or holds the
securities, or an interest in the business, of an exempt
telecommunications company shall file with the Commission such
information as the Commission, by rule, may prescribe
concerning--
``(A) investments and activities by the registered
holding company, or any subsidiary thereof, with respect
to exempt telecommunications companies, and
``(B) any activities of an exempt telecommunications
company within the holding company system,
that are reasonably likely to have a material impact on the
financial or operational condition of the holding company
system.
``(2) Authority to require additional information.--If,
based on reports provided to the Commission pursuant to
paragraph (1) of this subsection or other available information,
the Commission reasonably concludes that it has concerns
regarding the financial or operational condition of any
registered holding company or any subsidiary thereof (including
an exempt telecommunications company), the Commission may
require such registered holding company to make additional
reports and provide additional information.
``(3) Authority to limit disclosure of information.--
Notwithstanding any other provision of law, the Commission shall
not be compelled to disclose any information required to be
reported under this subsection. Nothing in this subsection shall
authorize the Commission to withhold the information from
Congress, or prevent the Commission from complying with a
request for information from any other Federal or State
department or agency requesting the information for purposes
[[Page 110 STAT. 84]]
within the scope of its jurisdiction. For purposes of section
552 of title 5, United States Code, this subsection shall be
considered a statute described in subsection (b)(3)(B) of such
section 552.
``(g) Assumption of Liabilities.--Any public utility company that is
an associate company, or an affiliate, of a registered holding company
and that is subject to the jurisdiction of a State commission with
respect to its retail electric or gas rates shall not issue any security
for the purpose of financing the acquisition, ownership, or operation of
an exempt telecommunications company. Any public utility company that is
an associate company, or an affiliate, of a registered holding company
and that is subject to the jurisdiction of a State commission with
respect to its retail electric or gas rates shall not assume any
obligation or liability as guarantor, endorser, surety, or otherwise by
the public utility company in respect of any security of an exempt
telecommunications company.
``(h) Pledging or Mortgaging of Assets.--Any public utility company
that is an associate company, or affiliate, of a registered holding
company and that is subject to the jurisdiction of a State commission
with respect to its retail electric or gas rates shall not pledge,
mortgage, or otherwise use as collateral any assets of the public
utility company or assets of any subsidiary company thereof for the
benefit of an exempt telecommunications company.
``(i) Protection Against Abusive Affiliate Transactions.--A public
utility company may enter into a contract to purchase services or
products described in subsection (a)(1) from an exempt
telecommunications company that is an affiliate or associate company of
the public utility company only if--
``(1) every State commission having jurisdiction over the
retail rates of such public utility company approves such
contract; or
``(2) such public utility company is not subject to State
commission retail rate regulation and the purchased services or
products--
``(A) would not be resold to any affiliate or
associate company; or
``(B) would be resold to an affiliate or associate
company and every State commission having jurisdiction
over the retail rates of such affiliate or associate
company makes the determination required by subparagraph
(A).
The requirements of this subsection shall not apply in any case in which
the State or the State commission concerned publishes a notice that the
State or State commission waives its authority under this subsection.
``(j) Nonpreemption of Rate Authority.--Nothing in this Act shall
preclude the Federal Energy Regulatory Commission or a State commission
from exercising its jurisdiction under otherwise applicable law to
determine whether a public utility company may recover in rates the
costs of products or services purchased from or sold to an associate
company or affiliate that is an exempt telecommunications company,
regardless of whether such costs are incurred through the direct or
indirect purchase or sale of products or services from such associate
company or affiliate.
``(k) Reciprocal Arrangements Prohibited.--Reciprocal arrangements
among companies that are not affiliates or associate companies of each
other that are entered into in order to avoid the provisions of this
section are prohibited.
[[Page 110 STAT. 85]]
``(l) Books and Records.--(1) Upon written order of a State
commission, a State commission may examine the books, accounts,
memoranda, contracts, and records of--
``(A) a public utility company subject to its regulatory
authority under State law;
``(B) any exempt telecommunications company selling products
or services to such public utility company or to an associate
company of such public utility company; and
``(C) any associate company or affiliate of an exempt
telecommunications company which sells products or services to a
public utility company referred to in subparagraph (A),
wherever located, if such examination is required for the effective
discharge of the State commission's regulatory responsibilities
affecting the provision of electric or gas service in connection with
the activities of such exempt telecommunications company.
``(2) <<NOTE: Confidentiality.>> Where a State commission issues an
order pursuant to paragraph (1), the State commission shall not publicly
disclose trade secrets or sensitive commercial information.
``(3) <<NOTE: Courts.>> Any United States district court located in
the State in which the State commission referred to in paragraph (1) is
located shall have jurisdiction to enforce compliance with this
subsection.
``(4) Nothing in this section shall--
``(A) preempt applicable State law concerning the provision
of records and other information; or
``(B) in any way limit rights to obtain records and other
information under Federal law, contracts, or otherwise.
``(m) Independent Audit Authority for State Commissions.--
``(1) State may order audit.--Any State commission with
jurisdiction over a public utility company that--
``(A) is an associate company of a registered
holding company; and
``(B) transacts business, directly or indirectly,
with a subsidiary company, an affiliate or an associate
company that is an exempt telecommunications company,
may order an independent audit to be performed, no more
frequently than on an annual basis, of all matters deemed
relevant by the selected auditor that reasonably relate to
retail rates: Provided, That such matters relate, directly or
indirectly, to transactions or transfers between the public
utility company subject to its jurisdiction and such exempt
telecommunications company.
``(2) Selection of firm to conduct audit.--(A) If a State
commission orders an audit in accordance with paragraph (1), the
public utility company and the State commission shall jointly
select, within 60 days, a firm to perform the audit. The firm
selected to perform the audit shall possess demonstrated
qualifications relating to--
``(i) competency, including adequate technical
training and professional proficiency in each discipline
necessary to carry out the audit; and
``(ii) independence and objectivity, including that
the firm be free from personal or external impairments
to independence, and should assume an independent
position with the State commission and auditee, making
certain that the audit is based upon an impartial
consideration of all pertinent facts and responsible
opinions.
[[Page 110 STAT. 86]]
``(B) The public utility company and the exempt
telecommunications company shall cooperate fully with all
reasonable requests necessary to perform the audit and the
public utility company shall bear all costs of having the audit
performed.
``(3) Availability of auditor's report.--The auditor's
report shall be provided to the State commission not later than
6 months after the selection of the auditor, and provided to the
public utility company not later than 60 days thereafter.
``(n) Applicability of Telecommunications Regulation.--Nothing in
this section shall affect the authority of the Federal Communications
Commission under the Communications Act of 1934, or the authority of
State commissions under State laws concerning the provision of
telecommunications services, to regulate the activities of an exempt
telecommunications company.''.
SEC. 104. NONDISCRIMINATION PRINCIPLE.
Section 1 (47 U.S.C. 151) is amended by inserting after ``to all
the people of the United States'' the following: ``, without
discrimination on the basis of race, color, religion, national origin,
or sex,''.
Subtitle B--Special Provisions Concerning Bell Operating Companies
SEC. 151. BELL OPERATING COMPANY PROVISIONS.
(a) Establishment of Part III of Title II.--Title II is amended by
adding at the end of part II (as added by section 101) the following new
part:
``PART III--SPECIAL PROVISIONS CONCERNING BELL OPERATING COMPANIES
``SEC. 271. <<NOTE: 47 USC 271.>> BELL OPERATING COMPANY ENTRY INTO
INTERLATA SERVICES.
``(a) General Limitation.--Neither a Bell operating company, nor any
affiliate of a Bell operating company, may provide interLATA services
except as provided in this section.
``(b) InterLATA Services to Which This Section Applies.--
``(1) In-region services.--A Bell operating company, or any
affiliate of that Bell operating company, may provide interLATA
services originating in any of its in-region States (as defined
in subsection (i)) if the Commission approves the application of
such company for such State under subsection (d)(3).
``(2) Out-of-region services.--A Bell operating company, or
any affiliate of that Bell operating company, may provide
interLATA services originating outside its in-region States
after the date of enactment of the Telecommunications Act of
1996, subject to subsection (j).
``(3) Incidental interlata services.--A Bell operating
company, or any affiliate of a Bell operating company, may
provide incidental interLATA services (as defined in subsection
(g)) originating in any State after the date of enactment of the
Telecommunications Act of 1996.
[[Page 110 STAT. 87]]
``(4) Termination.--Nothing in this section prohibits a Bell
operating company or any of its affiliates from providing
termination for interLATA services, subject to subsection (j).
``(c) Requirements for Providing Certain In-Region InterLATA
Services.--
``(1) Agreement or statement.--A Bell operating company
meets the requirements of this paragraph if it meets the
requirements of subparagraph (A) or subparagraph (B) of this
paragraph for each State for which the authorization is sought.
``(A) Presence of a facilities-based competitor.--A
Bell operating company meets the requirements of this
subparagraph if it has entered into one or more binding
agreements that have been approved under section 252
specifying the terms and conditions under which the Bell
operating company is providing access and
interconnection to its network facilities for the
network facilities of one or more unaffiliated competing
providers of telephone exchange service (as defined in
section 3(47)(A), but excluding exchange access) to
residential and business subscribers. For the purpose of
this subparagraph, such telephone exchange service may
be offered by such competing providers either
exclusively over their own telephone exchange service
facilities or predominantly over their own telephone
exchange service facilities in combination with the
resale of the telecommunications 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.--A Bell operating
company meets the requirements of this subparagraph if,
after 10 months after the date of enactment of the
Telecommunications Act of 1996, no such provider has
requested the access and interconnection described in
subparagraph (A) before the date which is 3 months
before the date the company makes its application under
subsection (d)(1), and a statement of the terms and
conditions that the company generally offers to provide
such access and interconnection has been approved or
permitted to take effect by the State commission under
section 252(f). For purposes of this subparagraph, a
Bell operating company shall be considered not to have
received any request for access and interconnection if
the State commission of such State certifies that the
only provider or providers making such a request have
(i) failed to negotiate in good faith as required by
section 252, or (ii) violated the terms of an agreement
approved under section 252 by the provider's failure to
comply, within a reasonable period of time, with the
implementation schedule contained in such agreement.
``(2) Specific interconnection requirements.--
``(A) Agreement required.--A Bell operating company
meets the requirements of this paragraph if, within the
State for which the authorization is sought--
``(i)(I) such company is providing access and
interconnection pursuant to one or more agreements
described in paragraph (1)(A), or
[[Page 110 STAT. 88]]
``(II) such company is generally offering
access and interconnection pursuant to a statement
described in paragraph (1)(B), and
``(ii) such access and interconnection meets
the requirements of subparagraph (B) of this
paragraph.
``(B) Competitive checklist.--Access or
interconnection provided or generally offered by a Bell
operating company to other telecommunications carriers
meets the requirements of this subparagraph if such
access and interconnection includes each of the
following:
``(i) Interconnection in accordance with the
requirements of sections 251(c)(2) and 252(d)(1).
``(ii) Nondiscriminatory access to network
elements in accordance with the requirements of
sections 251(c)(3) and 252(d)(1).
``(iii) Nondiscriminatory access to the poles,
ducts, conduits, and rights-of-way owned or
controlled by the Bell operating company at just
and reasonable rates in accordance with the
requirements of section 224.
``(iv) Local loop transmission from the
central office to the customer's premises,
unbundled from local switching or other services.
``(v) Local transport from the trunk side of a
wireline local exchange carrier switch unbundled
from switching or other services.
``(vi) Local switching unbundled from
transport, local loop transmission, or other
services.
``(vii) Nondiscriminatory access to--
``(I) 911 and E911 services;
``(II) directory assistance services
to allow the other carrier's customers
to obtain telephone numbers; and
``(III) operator call completion
services.
``(viii) White pages directory listings for
customers of the other carrier's telephone
exchange service.
``(ix) Until the date by which
telecommunications numbering administration
guidelines, plan, or rules are established,
nondiscriminatory access to telephone numbers for
assignment to the other carrier's telephone
exchange service customers. After that date,
compliance with such guidelines, plan, or rules.
``(x) Nondiscriminatory access to databases
and associated signaling necessary for call
routing and completion.
``(xi) Until the date by which the Commission
issues regulations pursuant to section 251 to
require number portability, interim
telecommunications number portability through
remote call forwarding, direct inward dialing
trunks, or other comparable arrangements, with as
little impairment of functioning, quality,
reliability, and convenience as possible. After
that date, full compliance with such regulations.
``(xii) Nondiscriminatory access to such
services or information as are necessary to allow
the requesting carrier to implement local dialing
parity in accordance with the requirements of
section 251(b)(3).
[[Page 110 STAT. 89]]
``(xiii) Reciprocal compensation arrangements
in accordance with the requirements of section
252(d)(2).
``(xiv) Telecommunications services are
available for resale in accordance with the
requirements of sections 251(c)(4) and 252(d)(3).
``(d) Administrative Provisions.--
``(1) Application to commission.--On and after the date of
enactment of the Telecommunications Act of 1996, a Bell
operating company or its affiliate may apply to the Commission
for authorization to provide interLATA services originating in
any in-region State. The application shall identify each State
for which the authorization is sought.
``(2) Consultation.--
``(A) <<NOTE: Notification.>> Consultation with the
attorney general.--The Commission shall notify the
Attorney General promptly of any application under
paragraph (1). 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 the
application using any standard the Attorney General
considers appropriate. The Commission shall give
substantial weight to the Attorney General's evaluation,
but such evaluation shall not have any preclusive effect
on any Commission decision under paragraph (3).
``(B) Consultation with state commissions.--Before
making any determination under this subsection, the
Commission shall consult with the State commission of
any State that is the subject of the application in
order to verify the compliance of the Bell operating
company with the requirements of subsection (c).
``(3) Determination.--Not later than 90 days after receiving
an application under paragraph (1), the Commission shall issue a
written determination approving or denying the authorization
requested in the application for each State. The Commission
shall not approve the authorization requested in an application
submitted under paragraph (1) unless it finds that--
``(A) the petitioning Bell operating company has met
the requirements of subsection (c)(1) and--
``(i) with respect to access and
interconnection provided pursuant to subsection
(c)(1)(A), has fully implemented the competitive
checklist in subsection (c)(2)(B); or
``(ii) with respect to access and
interconnection generally offered pursuant to a
statement under subsection (c)(1)(B), such
statement offers all of the items included in the
competitive checklist in subsection (c)(2)(B);
``(B) the requested authorization will be carried
out in accordance with the requirements of section 272;
and
``(C) the requested authorization is consistent with
the public interest, convenience, and necessity.
The Commission shall state the basis for its approval or denial
of the application.
[[Page 110 STAT. 90]]
``(4) Limitation on commission.--The Commission may not, by
rule or otherwise, limit or extend the terms used in the
competitive checklist set forth in subsection (c)(2)(B).
``(5) <<NOTE: Federal Register, publication.>>
Publication.--Not later than 10 days after issuing a
determination under paragraph (3), the Commission shall publish
in the Federal Register a brief description of the
determination.
``(6) Enforcement of conditions.--
``(A) Commission authority.--If at any time after
the approval of an application under paragraph (3), the
Commission determines that a Bell operating company has
ceased to meet any of the conditions required for such
approval, the Commission may, after notice and
opportunity for a hearing--
``(i) issue an order to such company to
correct the deficiency;
``(ii) impose a penalty on such company
pursuant to title V; or
``(iii) suspend or revoke such approval.
``(B) 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 for approval under
paragraph (3). Unless the parties otherwise agree, the
Commission shall act on such complaint within 90 days.
``(e) Limitations.--
``(1) Joint marketing of local and long distance services.--
Until a Bell operating company is authorized pursuant to
subsection (d) to provide interLATA services in an in-region
State, or until 36 months have passed since the date of
enactment of the Telecommunications Act of 1996, whichever is
earlier, a telecommunications carrier that serves greater than 5
percent of the Nation's presubscribed access lines may not
jointly market in such State telephone exchange service obtained
from such company pursuant to section 251(c)(4) with interLATA
services offered by that telecommunications carrier.
``(2) Intralata toll dialing parity.--
``(A) Provision required.--A Bell operating company
granted authority to provide interLATA services under
subsection (d) shall provide intraLATA toll dialing
parity throughout that State coincident with its
exercise of that authority.
``(B) Limitation.--Except for single-LATA States and
States that have issued an order by December 19, 1995,
requiring a Bell operating company to implement
intraLATA toll dialing parity, a State may not require a
Bell operating company to implement intraLATA toll
dialing parity in that State before a Bell operating
company has been granted authority under this section to
provide interLATA services originating in that State or
before 3 years after the date of enactment of the
Telecommunications Act of 1996, whichever is earlier.
Nothing in this subparagraph precludes a State from
issuing an order requiring intraLATA toll dialing parity
in that State prior to either such date so long as such
order does not take effect until after the earlier of
either such dates.
[[Page 110 STAT. 91]]
``(f) Exception for Previously Authorized Activities.--Neither
subsection (a) nor section 273 shall prohibit a Bell operating company
or affiliate from engaging, at any time after the date of enactment of
the Telecommunications Act of 1996, in any activity to the extent
authorized by, and subject to the terms and conditions contained in, an
order entered by the United States District Court for the District of
Columbia pursuant to section VII or VIII(C) of the AT&T Consent Decree
if such order was entered on or before such date of enactment, to the
extent such order is not reversed or vacated on appeal. Nothing in this
subsection shall be construed to limit, or to impose terms or conditions
on, an activity in which a Bell operating company is otherwise
authorized to engage under any other provision of this section.
``(g) Definition of Incidental InterLATA Services.--For purposes of
this section, the term `incidental interLATA services' means the
interLATA provision by a Bell operating company or its affiliate--
``(1)(A) of audio programming, video programming, or other
programming services to subscribers to such services of such
company or affiliate;
``(B) of the capability for interaction by such subscribers
to select or respond to such audio programming, video
programming, or other programming services;
``(C) to distributors of audio programming or video
programming that such company or affiliate owns or controls, or
is licensed by the copyright owner of such programming (or by an
assignee of such owner) to distribute; or
``(D) of alarm monitoring services;
``(2) of two-way interactive video services or Internet
services over dedicated facilities to or for elementary and
secondary schools as defined in section 254(h)(5);
``(3) of 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) of a service that permits a customer that is located
in one LATA to retrieve stored information from, or file
information for storage in, information storage facilities of
such company that are located in another LATA;
``(5) of signaling information used in connection with the
provision of telephone exchange services or exchange access by a
local exchange carrier; or
``(6) of network control signaling information to, and
receipt of 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) Limitations.--The provisions of subsection (g) are intended to
be narrowly construed. The interLATA services provided under
subparagraph (A), (B), or (C) of subsection (g)(1) are limited to those
interLATA transmissions incidental to the provision by a Bell operating
company or its affiliate of video, audio, and other programming services
that the company or its affiliate is engaged in providing to the public.
The Commission shall ensure that the provision of services authorized
under subsection (g) by a Bell operating company or its affiliate will
not adversely affect telephone exchange service ratepayers or
competition in any telecommunications market.
[[Page 110 STAT. 92]]
``(i) Additional Definitions.--As used in this section--
``(1) In-region state.--The term `in-region State' means a
State in which a Bell operating company or any of its affiliates
was authorized to provide wireline telephone exchange service
pursuant to the reorganization plan approved under the AT&T
Consent Decree, as in effect on the day before the date of
enactment of the Telecommunications Act of 1996.
``(2) Audio programming services.--The term `audio
programming services' means programming provided by, or
generally considered to be comparable to programming provided
by, a radio broadcast station.
``(3) Video programming services; other programming
services.--The terms `video programming service' and `other
programming services' have the same meanings as such terms have
under section 602 of this Act.
``(j) Certain Service Applications Treated as In-Region Service
Applications.--For purposes of this section, a Bell operating company
application to provide 800 service, private line service, or their
equivalents that--
``(1) terminate in an in-region State of that Bell operating
company, and
``(2) allow the called party to determine the interLATA
carrier,
shall be considered an in-region service subject to the requirements of
subsection (b)(1).
``SEC. 272. <<NOTE: 47 USC 272.>> SEPARATE AFFILIATE; SAFEGUARDS.
``(a) Separate Affiliate Required for Competitive Activities.--
``(1) In general.--A Bell operating company (including any
affiliate) which is a local exchange carrier that is subject to
the requirements of section 251(c) may not provide any service
described in paragraph (2) unless it provides that service
through one or more affiliates that--
``(A) are separate from any operating company entity
that is subject to the requirements of section 251(c);
and
``(B) meet the requirements of subsection (b).
``(2) Services for which a separate affiliate is required.--
The services for which a separate affiliate is required by
paragraph (1) are:
``(A) Manufacturing activities (as defined in
section 273(h)).
``(B) Origination of interLATA telecommunications
services, other than--
``(i) incidental interLATA services described
in paragraphs (1), (2), (3), (5), and (6) of
section 271(g);
``(ii) out-of-region services described in
section 271(b)(2); or
``(iii) previously authorized activities
described in section 271(f).
``(C) InterLATA information services, other than
electronic publishing (as defined in section 274(h)) and
alarm monitoring services (as defined in section
275(e)).
``(b) Structural and Transactional Requirements.--The separate
affiliate required by this section--
``(1) shall operate independently from the Bell operating
company;
[[Page 110 STAT. 93]]
``(2) <<NOTE: Records.>> shall maintain books, records, and
accounts in the manner prescribed by the Commission which shall
be separate from the books, records, and accounts maintained by
the Bell operating company of which it is an affiliate;
``(3) shall have separate officers, directors, and employees
from the Bell operating company of which it is an affiliate;
``(4) may not obtain credit under any arrangement that would
permit a creditor, upon default, to have recourse to the assets
of the Bell operating company; and
``(5) shall conduct all transactions with the Bell operating
company of which it is an affiliate on an arm's length basis
with any such transactions reduced to writing and available for
public inspection.
``(c) Nondiscrimination Safeguards.--In its dealings with its
affiliate described in subsection (a), a Bell operating company--
``(1) may not discriminate between that company or affiliate
and any other entity in the provision or procurement of goods,
services, facilities, and information, or in the establishment
of standards; and
``(2) shall account for all transactions with an affiliate
described in subsection (a) in accordance with accounting
principles designated or approved by the Commission.
``(d) Biennial Audit.--
``(1) General requirement.--A company required to operate a
separate affiliate under this section shall obtain and pay for a
joint Federal/State audit every 2 years conducted by an
independent auditor to determine whether such company has
complied with this section and the regulations promulgated under
this section, and particularly whether such company has complied
with the separate accounting requirements under subsection (b).
``(2) <<NOTE: Public information.>> Results submitted to
commission; state commissions.--The auditor described in
paragraph (1) shall submit the results of the audit to the
Commission and to the State commission of each State in which
the company audited provides service, which shall make such
results available for public inspection. Any party may submit
comments on the final audit report.
``(3) <<NOTE: Records.>> Access to documents.--For purposes
of conducting audits and reviews under this subsection--
``(A) the independent auditor, the Commission, and
the State commission shall have access to the financial
accounts and records of each company and of its
affiliates necessary to verify transactions conducted
with that company that are relevant to the specific
activities permitted under this section and that are
necessary for the regulation of rates;
``(B) the Commission and the State commission shall
have access to the working papers and supporting
materials of any auditor who performs an audit under
this section; and
``(C) the State commission shall implement
appropriate procedures to ensure the protection of any
proprietary information submitted to it under this
section.
``(e) Fulfillment of Certain Requests.--A Bell operating company and
an affiliate that is subject to the requirements of section 251(c)--
[[Page 110 STAT. 94]]
``(1) shall 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) shall not provide any facilities, services, or
information concerning its provision of exchange access to the
affiliate described in subsection (a) unless such facilities,
services, or information are made available to other providers
of interLATA services in that market on the same terms and
conditions;
``(3) shall charge the affiliate described in subsection
(a), or impute to itself (if using the access for its provision
of its own services), an amount for access to its telephone
exchange service and exchange access that is no less than the
amount charged to any unaffiliated interexchange carriers for
such service; and
``(4) may provide any interLATA or intraLATA facilities or
services to its interLATA affiliate if such services or
facilities are made available to all carriers at the same rates
and on the same terms and conditions, and so long as the costs
are appropriately allocated.
``(f) Sunset.--
``(1) Manufacturing and long distance.--The provisions of
this section (other than subsection (e)) shall cease to apply
with respect to the manufacturing activities or the interLATA
telecommunications services of a Bell operating company 3 years
after the date such Bell operating company or any Bell operating
company affiliate is authorized to provide interLATA
telecommunications services under section 271(d), unless the
Commission extends such 3-year period by rule or order.
``(2) InterLATA information services.--The provisions of
this section (other than subsection (e)) shall cease to apply
with respect to the interLATA information services of a Bell
operating company 4 years after the date of enactment of the
Telecommunications Act of 1996, unless the Commission extends
such 4-year period by rule or order.
``(3) Preservation of existing authority.--Nothing in this
subsection shall be construed to limit the authority of the
Commission under any other section of this Act to prescribe
safeguards consistent with the public interest, convenience, and
necessity.
``(g) Joint Marketing.--
``(1) Affiliate sales of telephone exchange services.--A
Bell operating company affiliate required by this section may
not market or sell telephone exchange services provided by the
Bell operating company unless that company permits other
entities offering the same or similar service to market and sell
its telephone exchange services.
``(2) Bell operating company sales of affiliate services.--A
Bell operating company may not market or sell interLATA service
provided by an affiliate required by this section within any of
its in-region States until such company is authorized to provide
interLATA services in such State under section 271(d).
``(3) Rule of construction.--The joint marketing and sale of
services permitted under this subsection shall not be
[[Page 110 STAT. 95]]
considered to violate the nondiscrimination provisions of
subsection (c).
``(h) Transition.--With respect to any activity in which a Bell
operating company is engaged on the date of enactment of the
Telecommunications Act of 1996, such company shall have one year from
such date of enactment to comply with the requirements of this section.
``SEC. 273. <<NOTE: 47 USC 273.>> MANUFACTURING BY BELL OPERATING
COMPANIES.
``(a) Authorization.--A Bell operating company may manufacture and
provide telecommunications equipment, and manufacture customer premises
equipment, if the Commission authorizes that Bell operating company or
any Bell operating company affiliate to provide interLATA services under
section 271(d), subject to the requirements of this section and the
regulations prescribed thereunder, except that neither a Bell operating
company nor any of its affiliates may engage in such manufacturing in
conjunction with a Bell operating company not so affiliated or any of
its affiliates.
``(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) Certain research arrangements; royalty agreements.--
Subsection (a) shall not prohibit a Bell operating company
from--
``(A) engaging in research activities related to
manufacturing, and
``(B) entering into royalty agreements with
manufacturers of telecommunications equipment.
``(c) Information Requirements.--
``(1) <<NOTE: Regulations.>> 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.
[[Page 110 STAT. 96]]
``(4) Planning information.--Each Bell operating company
shall provide, to interconnecting 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 the Telecommunications Act of 1996. 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 subsection restricts any
manufacturer from engaging in any activity in which it is
lawfully engaged on the date of enactment of the
Telecommunications Act of 1996.
``(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) <<NOTE: Records.>> 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--
[[Page 110 STAT. 97]]
``(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 that is not an
accredited standards development organization and that
establishes industry-wide standards for telecommunications
equipment or customer premises equipment, or industry-wide
generic network requirements for such equipment, or that
certifies telecommunications equipment or customer premises
equipment manufactured by an unaffiliated entity, shall--
``(A) <<NOTE: Publication.>> 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) <<NOTE: Notice.>> 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--
[[Page 110 STAT. 98]]
``(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 the Telecommunications Act of 1996, 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. <<NOTE: Penalties.>> The Commission shall establish
penalties to be assessed for delays caused by referral of
frivolous disputes to the dispute resolution process.
``(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:
[[Page 110 STAT. 99]]
``(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 telephone
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 of the Telecommunications Act of
1996.
``(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) Nondiscrimination standards for manufacturing.--In the
procurement or awarding of supply contracts for
telecommunications equipment, a Bell operating company, or any
entity acting on its behalf, for the duration of the requirement
for a separate subsidiary including manufacturing under this
Act--
``(A) shall consider such equipment, produced or
supplied by unrelated persons; and
``(B) may not discriminate in favor of equipment
produced or supplied by an affiliate or related person.
``(2) Procurement standards.--Each Bell operating company or
any entity acting on its behalf 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.
``(3) Network planning and design.--A Bell operating company
shall, to the extent consistent with the antitrust laws, engage
in joint network planning and design with local exchange
carriers operating in the same area of interest. No
[[Page 110 STAT. 100]]
participant in such planning shall be allowed to delay the
introduction of new technology or the deployment of facilities
to provide telecommunications services, and agreement with such
other carriers shall not be required as a prerequisite for such
introduction or deployment.
``(4) Sales restrictions.--Neither a Bell operating company
engaged in manufacturing nor a manufacturing affiliate of such a
company shall restrict sales to any local exchange carrier of
telecommunications equipment, including software integral to the
operation of such equipment and related upgrades.
``(5) 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) Additional Rules and Regulations.--The Commission may
prescribe such additional rules and regulations as the Commission
determines are necessary to carry out the provisions of this section,
and otherwise to prevent discrimination and cross-subsidization in a
Bell operating company's dealings with its affiliate and with third
parties.
``(h) Definition.--As used in this section, the term `manufacturing'
has the same meaning as such term has under the AT&T Consent Decree.
``SEC. 274. <<NOTE: 47 USC 274.>> 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) <<NOTE: Records.>> 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;
[[Page 110 STAT. 101]]
``(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 owned by 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) <<NOTE: Reports.>> 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
[[Page 110 STAT. 102]]
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 a 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
[[Page 110 STAT. 103]]
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 the Telecommunications Act of 1996
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 4 years after the date of
enactment of the Telecommunications Act of 1996.
``(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 AT&T Consent Decree.
``(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.
[[Page 110 STAT. 104]]
``(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, or
``(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.
[[Page 110 STAT. 105]]
``(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. 275. <<NOTE: 47 USC 275.>> ALARM MONITORING SERVICES.
``(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 5 years after the date of
enactment of the Telecommunications Act of 1996.
``(2) Existing activities.--Paragraph (1) does not prohibit
or limit the provision, directly or through an affiliate, of
alarm monitoring services by a Bell operating company that was
engaged in providing alarm monitoring services as of November
30, 1995, directly or through an affiliate. Such Bell operating
company or affiliate may not acquire any equity interest in, or
obtain financial control of, any unaffiliated alarm monitoring
service entity after November 30, 1995, and until 5 years after
the date of enactment of the Telecommunications Act of 1996,
except that this sentence shall not prohibit an exchange of
customers for the customers of an unaffiliated alarm monitoring
service entity.
``(b) Nondiscrimination.--An incumbent local exchange carrier (as
defined in section 251(h)) engaged in the provision of alarm monitoring
services shall--
``(1) provide nonaffiliated entities, upon reasonable
request, with the network services it provides to its own alarm
monitoring operations, on nondiscriminatory terms and
conditions; and
``(2) not subsidize its alarm monitoring 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.
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 incumbent local
exchange carrier (as defined in section 251(h)) and its affiliates to
cease engaging in such violation pending such final determination.
``(d) Use of Data.--A local exchange carrier may not record or use
in any fashion the occurrence or contents of calls received by providers
of alarm monitoring services for the purposes of marketing such services
on behalf of such local exchange carrier,
[[Page 110 STAT. 106]]
or any other entity. Any regulations necessary to enforce this
subsection shall be issued initially within 6 months after the date of
enactment of the Telecommunications Act of 1996.
``(e) Definition of 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--
``(1) 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
``(2) to transmit a signal regarding such threat by means of
transmission facilities of a local exchange carrier 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.
``SEC. 276. <<NOTE: 47 USC 276.>> 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 from its telephone exchange service operations or its
exchange access operations; and
``(2) shall not prefer or discriminate in favor of its
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
the Telecommunications Act of 1996, 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 service 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 such date of enactment, 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;
``(D) provide for Bell operating company payphone
service providers to have the same right that
independent
[[Page 110 STAT. 107]]
payphone providers have to negotiate with the location
provider on the location provider's 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, unless the Commission determines
in the rulemaking pursuant to this section that it is
not in the public interest; and
``(E) provide for all payphone service providers to
have the right to negotiate with the location provider
on the location provider's 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 enactment of the
Telecommunications Act of 1996.
``(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 such 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.''.
(b) Review of Entry Decisions.--Section 402(b) (47 U.S.C. 402(b)) is
amended--
(1) in paragraph (6), by striking ``(3), and (4)'' and
inserting ``(3), (4), and (9)''; and
(2) by adding at the end the following new paragraph:
``(9) By any applicant for authority to provide interLATA services
under section 271 of this Act whose application is denied by the
Commission.''.
TITLE II--BROADCAST SERVICES
SEC. 201. BROADCAST SPECTRUM FLEXIBILITY.
Title III is amended by inserting after section 335 (47 U.S.C. 335)
the following new section:
``SEC. 336. <<NOTE: 47 USC 336.>> BROADCAST SPECTRUM FLEXIBILITY.
``(a) Commission Action.--If the Commission determines to issue
additional licenses for advanced television services, the Commission--
``(1) should limit the initial eligibility for such licenses
to persons that, as of the date of such issuance, are licensed
[[Page 110 STAT. 108]]
to operate a television broadcast station or hold a permit to
construct such a station (or both); and
``(2) <<NOTE: Regulations.>> shall adopt regulations that
allow the holders of such licenses 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.--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 either the additional license
or the original license held by the licensee be surrendered to the
Commission for reallocation or reassignment (or both) pursuant to
Commission regulation.
``(d) Public Interest Requirement.--Nothing in this section shall be
construed as relieving a television broadcasting station from its
obligation to serve the public interest, convenience, and necessity. In
the Commission's review of any application for renewal of a broadcast
license for a television station that provides ancillary or
supplementary services, the television licensee shall establish that all
of its program services on the existing or advanced television spectrum
are in the public interest. Any violation of the Commission rules
applicable to ancillary or supplementary services shall reflect upon the
licensee's qualifications for renewal of its license.
``(e) 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--
[[Page 110 STAT. 109]]
``(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 enactment of
the Telecommunications Act of 1996, 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.
``(f) 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;
[[Page 110 STAT. 110]]
``(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.
``(g) 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 the Telecommunications Act
of 1996, as further defined in the proceedings described in
paragraph (1) of this subsection.''.
SEC. 202. <<NOTE: Regulations.>> BROADCAST OWNERSHIP.
(a) National Radio Station Ownership Rule Changes Required.--The
Commission shall modify section 73.3555 of its regulations (47 C.F.R.
73.3555) by eliminating any provisions limiting the number of AM or FM
broadcast stations which may be owned or controlled by one entity
nationally.
(b) Local Radio Diversity.--
(1) Applicable caps.--The Commission shall revise section
73.3555(a) of its regulations (47 C.F.R. 73.3555) to provide
that--
(A) in a radio market with 45 or more commercial
radio stations, a party may own, operate, or control up
to 8 commercial radio stations, not more than 5 of which
are in the same service (AM or FM);
(B) in a radio market with between 30 and 44
(inclusive) commercial radio stations, a party may own,
operate, or control up to 7 commercial radio stations,
not more than 4 of which are in the same service (AM or
FM);
(C) in a radio market with between 15 and 29
(inclusive) commercial radio stations, a party may own,
operate, or control up to 6 commercial radio stations,
not more than 4 of which are in the same service (AM or
FM); and
(D) in a radio market with 14 or fewer commercial
radio stations, a party may own, operate, or control up
to 5 commercial radio stations, not more than 3 of which
are in the same service (AM or FM), except that a party
may not own, operate, or control more than 50 percent of
the stations in such market.
(2) Exception.--Notwithstanding any limitation authorized by
this subsection, the Commission may permit a person or entity to
own, operate, or control, or have a cognizable interest in,
radio broadcast stations if the Commission determines that such
ownership, operation, control, or interest will
[[Page 110 STAT. 111]]
result in an increase in the number of radio broadcast stations
in operation.
(c) Television Ownership Limitations.--
(1) National ownership limitations.--The Commission shall
modify its rules for multiple ownership set forth in section
73.3555 of its regulations (47 C.F.R. 73.3555)--
(A) by eliminating the restrictions on the number of
television stations that a person or entity may directly
or indirectly own, operate, or control, or have a
cognizable interest in, nationwide; and
(B) by increasing the national audience reach
limitation for television stations to 35 percent.
(2) Local ownership limitations.--The Commission shall
conduct a rulemaking proceeding to determine whether to retain,
modify, or eliminate its limitations on the number of television
stations that a person or entity may own, operate, or control,
or have a cognizable interest in, within the same television
market.
(d) Relaxation of One-To-A-Market.--With respect to its enforcement
of its one-to-a-market ownership rules under section 73.3555 of its
regulations, the Commission shall extend its waiver policy to any of the
top 50 markets, consistent with the public interest, convenience, and
necessity.
(e) Dual Network Changes.--The Commission shall revise section
73.658(g) of its regulations (47 C.F.R. 658(g)) to permit a television
broadcast station to affiliate with a person or entity that maintains 2
or more networks of television broadcast stations unless such dual or
multiple networks are composed of--
(1) two or more persons or entities that, on the date of
enactment of the Telecommunications Act of 1996, are
``networks'' as defined in section 73.3613(a)(1) of the
Commission's regulations (47 C.F.R. 73.3613(a)(1)); or
(2) any network described in paragraph (1) and an English-
language program distribution service that, on such date,
provides 4 or more hours of programming per week on a national
basis pursuant to network affiliation arrangements with local
television broadcast stations in markets reaching more than 75
percent of television homes (as measured by a national ratings
service).
(f) Cable Cross Ownership.--
(1) Elimination of restrictions.--The Commission shall
revise section 76.501 of its regulations (47 C.F.R. 76.501) to
permit a person or entity to own or control a network of
broadcast stations and a cable system.
(2) Safeguards against discrimination.--The Commission shall
revise such regulations if necessary to ensure carriage, channel
positioning, and nondiscriminatory treatment of nonaffiliated
broadcast stations by a cable system described in paragraph (1).
(g) Local Marketing Agreements.--Nothing in this section shall be
construed to prohibit the origination, continuation, or renewal of any
television local marketing agreement that is in compliance with the
regulations of the Commission.
(h) Further Commission Review.--The Commission shall review its
rules adopted pursuant to this section and all of its ownership rules
biennially as part of its regulatory reform review under section 11 of
the Communications Act of 1934 and shall
[[Page 110 STAT. 112]]
determine whether any of such rules are necessary in the public interest
as the result of competition. The Commission shall repeal or modify any
regulation it determines to be no longer in the public interest.
(i) Elimination of Statutory Restriction.--Section 613(a) (47 U.S.C.
533(a)) is amended--
(1) by striking paragraph (1);
(2) by redesignating paragraph (2) as subsection (a);
(3) by redesignating subparagraphs (A) and (B) as paragraphs
(1) and (2), respectively;
(4) by striking ``and'' at the end of paragraph (1) (as so
redesignated);
(5) by striking the period at the end of paragraph (2) (as
so redesignated) and inserting ``; and''; and
(6) by adding at the end the following new paragraph:
``(3) shall not apply the requirements of this subsection to
any cable operator in any franchise area in which a cable
operator is subject to effective competition as determined under
section 623(l).''.
SEC. 203. TERM OF LICENSES.
Section 307(c) (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 8 years. Upon application therefor, a renewal
of such license may be granted from time to time for a term of
not to exceed 8 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, the 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. 204. BROADCAST LICENSE RENEWAL PROCEDURES.
(a) Renewal Procedures.--
(1) Amendment.--Section 309 (47 U.S.C. 309) is amended by
adding at the end thereof the following new subsection:
``(k) Broadcast Station Renewal Procedures.--
[[Page 110 STAT. 113]]
``(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.''.
(2) Conforming amendment.--Section 309(d) (47 U.S.C. 309(d))
is amended by inserting after ``with subsection (a)'' each place
it appears the following: ``(or subsection (k) in the case of
renewal of any broadcast station license)''.
(b) Summary of Complaints on Violent Programming.--Section 308 (47
U.S.C. 308) is amended by adding at the end the following new
subsection:
``(d) Summary of Complaints.--Each applicant for the renewal of a
commercial or noncommercial television license shall attach as an
exhibit to the application a summary of written comments and suggestions
received from the public and maintained by the licensee (in accordance
with Commission regulations) that comment on the applicant's
programming, if any, and that are characterized by the commentor as
constituting violent programming.''.
(c) <<NOTE: 47 USC 308 note.>> Effective Date.--The amendments made
by this section apply to applications filed after May 1, 1995.
[[Page 110 STAT. 114]]
SEC. 205. DIRECT BROADCAST SATELLITE SERVICE.
(a) DBS Signal Security.--Section 705(e)(4) (47 U.S.C. 605(e)(4)) is
amended by inserting ``or direct-to-home satellite services,'' after
``programming,''.
(b) FCC Jurisdiction Over Direct-to-Home Satellite Services.--
Section 303 (47 U.S.C. 303) is amended by adding at the end thereof the
following new subsection:
``(v) Have exclusive jurisdiction to regulate the provision of
direct-to-home satellite services. As used in this subsection, the term
`direct-to-home satellite services' means the distribution or
broadcasting of programming or services by satellite directly to the
subscriber's premises without the use of ground receiving or
distribution equipment, except at the subscriber's premises or in the
uplink process to the satellite.''.
SEC. 206. AUTOMATED SHIP DISTRESS AND SAFETY SYSTEMS.
Part II of title III is amended by inserting after section 364 (47
U.S.C. 362) the following new section:
``SEC. 365. <<NOTE: 47 USC 363.>> AUTOMATED SHIP DISTRESS AND SAFETY
SYSTEMS.
``Notwithstanding any provision of this Act 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 <<NOTE: Effective date.>> 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. 207. <<NOTE: Regulations. 47 USC 303 note.>> RESTRICTIONS ON OVER-
THE-AIR RECEPTION DEVICES.
Within 180 days after the date of enactment of this Act, the
Commission shall, pursuant to section 303 of the Communications Act of
1934, promulgate regulations to prohibit restrictions that impair a
viewer's ability to receive video programming services through devices
designed for over-the-air reception of television broadcast signals,
multichannel multipoint distribution service, or direct broadcast
satellite services.
TITLE III--CABLE SERVICES
SEC. 301. CABLE ACT REFORM.
(a) Definitions.--
(1) Definition of cable service.--Section 602(6)(B) (47
U.S.C. 522(6)(B)) is amended by inserting ``or use'' after ``the
selection''.
(2) Change in definition of cable system.--Section 602(7)
(47 U.S.C. 522(7)) is amended by striking ``(B) a facility that
serves only subscribers in 1 or more multiple unit dwellings
under common ownership, control, or management, unless such
facility or facilities uses any public right-of-way;'' and
inserting ``(B) a facility that serves subscribers without using
any public right-of-way;''.
(b) Rate Deregulation.--
[[Page 110 STAT. 115]]
(1) Upper tier regulation.--Section 623(c) (47 U.S.C.
543(c)) is amended--
(A) in paragraph (1)(B), by striking ``subscriber,
franchising authority, or other relevant State or local
government entity'' and inserting ``franchising
authority (in accordance with paragraph (3))'';
(B) in paragraph (1)(C), by striking ``such
complaint'' and inserting ``the first complaint filed
with the franchising authority under paragraph (3)'';
and
(C) by striking paragraph (3) and inserting the
following:
``(3) Review of rate changes.--The Commission shall review
any complaint submitted by a franchising authority after the
date of enactment of the Telecommunications Act of 1996
concerning an increase in rates for cable programming services
and issue a final order within 90 days after it receives such a
complaint, unless the parties agree to extend the period for
such review. A franchising authority may not file a complaint
under this paragraph unless, within 90 days after such increase
becomes effective it receives subscriber complaints.
``(4) Sunset of upper tier rate regulation.--This subsection
shall not apply to cable programming services provided after
March 31, 1999.''.
(2) Sunset of uniform rate structure in markets with
effective competition.--Section 623(d) (47 U.S.C. 543(d)) is
amended by adding at the end thereof the following: ``This
subsection does not apply to (1) a cable operator with respect
to the provision of cable service over its cable system in any
geographic area in which the video programming services offered
by the operator in that area are subject to effective
competition, or (2) any video programming offered on a per
channel or per program basis. Bulk discounts to multiple
dwelling units shall not be subject to this subsection, except
that a cable operator of a cable system that is not subject to
effective competition may not charge predatory prices to a
multiple dwelling unit. Upon a prima facie showing by a
complainant that there are reasonable grounds to believe that
the discounted price is predatory, the cable system shall have
the burden of showing that its discounted price is not
predatory.''.
(3) Effective competition.--Section 623(l)(1) (47 U.S.C.
543(l)(1)) is amended--
(A) by striking ``or'' at the end of subparagraph
(B);
(B) by striking the period at the end of
subparagraph (C) and inserting ``; or''; and
(C) by adding at the end the following:
``(D) a local exchange carrier or its affiliate (or
any multichannel video programming distributor using the
facilities of such carrier or its affiliate) offers
video programming services directly to subscribers by
any means (other than direct-to-home satellite services)
in the franchise area of an unaffiliated cable operator
which is providing cable service in that franchise area,
but only if the video programming services so offered in
that area are comparable to the video programming
services provided by the unaffiliated cable operator in
that area.''.
[[Page 110 STAT. 116]]
(c) Greater Deregulation for Smaller Cable Companies.--Section 623
(47 U.S.C 543) is amended by adding at the end thereof the following:
``(m) Special Rules for Small Companies.--
``(1) In general.--Subsections (a), (b), and (c) do not
apply to a small cable operator with respect to--
``(A) cable programming services, or
``(B) a basic service tier that was the only service
tier subject to regulation as of December 31, 1994,
in any franchise area in which that operator services 50,000 or
fewer subscribers.
``(2) Definition of small cable operator.--For purposes of
this subsection, the term `small cable operator' means a cable
operator that, directly or through an affiliate, serves in the
aggregate fewer than 1 percent of all subscribers in the United
States and is not affiliated with any entity or entities whose
gross annual revenues in the aggregate exceed $250,000,000.''.
(d) Market Determinations.--
(1) Market determinations; expedited decisionmaking.--
Section 614(h)(1)(C) (47 U.S.C. 534(h)(1)(C)) is amended--
(A) by striking ``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,'' in clause
(i) and inserting ``by the Commission by regulation or
order using, where available, commercial publications
which delineate television markets based on viewing
patterns,''; and
(B) by striking clause (iv) and inserting the
following:
``(iv) Within 120 days after the date on which
a request is filed under this subparagraph (or 120
days after the date of enactment of the
Telecommunications Act of 1996, if later), the
Commission shall grant or deny the request.''.
(2) <<NOTE: 47 USC 534 note.>> Application to pending
requests.--The amendment made by paragraph (1) shall apply to--
(A) any request pending under section 614(h)(1)(C)
of the Communications Act of 1934 (47 U.S.C.
534(h)(1)(C)) on the date of enactment of this Act; and
(B) any request filed under that section after that
date.
(e) Technical Standards.--Section 624(e) (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.''.
(f) Cable Equipment Compatibility.--Section 624A (47 U.S.C.
544A) <<NOTE: 47 USC 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.'';
[[Page 110 STAT. 117]]
(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 cassette
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;''.
(g) Subscriber Notice.--Section 632 (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.''.
(h) Program Access.--Section 628 (47 U.S.C. 548) is amended by
adding at the end the following:
``(j) Common Carriers.--Any provision that applies to a cable
operator under this section shall apply to a common carrier or its
affiliate that provides video programming by any means directly to
subscribers. Any such provision that applies to a satellite cable
programming vendor in which a cable operator has an attributable
interest shall apply to any satellite cable programming vendor in which
such common carrier has an attributable interest. For the purposes of
this subsection, two or fewer common officers or directors shall not by
itself establish an attributable interest by a common carrier in a
satellite cable programming vendor (or its parent company).''.
(i) Antitrafficking.--Section 617 (47 U.S.C. 537) is amended--
(1) by striking subsections (a) through (d); and
(2) in subsection (e), by striking ``(e)'' and all that
follows through ``a franchising authority'' and inserting ``A
franchising authority''.
[[Page 110 STAT. 118]]
(j) Aggregation of Equipment Costs.--Section 623(a) (47 U.S.C.
543(a)) is amended by adding at the end the following new paragraph:
``(7) Aggregation of equipment costs.--
``(A) In general.--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.
``(B) Revision to commission rules; forms.--Within
120 days of the date of enactment of the
Telecommunications Act of 1996, the Commission shall
issue revisions to the appropriate rules and forms
necessary to implement subparagraph (A).''.
(k) Treatment of Prior Year Losses.--
(1) Amendment.--Section 623 (48 U.S.C. 543) <<NOTE: 47 USC
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 associated with a
cable system (including losses associated with the grant or award of a
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) <<NOTE: 47 USC 543 note.>> 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, upon which no
final action has been taken by December 1, 1995.
SEC. 302. CABLE SERVICE PROVIDED BY TELEPHONE COMPANIES.
(a) Provisions for Regulation of Cable Service Provided by Telephone
Companies.--Title VI (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. <<NOTE: 47 USC 571.>> REGULATORY TREATMENT OF VIDEO
PROGRAMMING SERVICES.
``(a) Limitations on Cable Regulation.--
``(1) Radio-based systems.--To the extent that a common
carrier (or any other person) is providing video programming to
subscribers using radio communication, such carrier (or other
person) shall be subject to the requirements of title III and
section 652, but shall not otherwise be subject to the
requirements of this title.
``(2) Common carriage of video traffic.--To the extent that
a common carrier is providing transmission of video programming
on a common carrier basis, such carrier shall be subject to the
requirements of title II and section 652,
[[Page 110 STAT. 119]]
but shall not otherwise be subject to the requirements of this
title. This paragraph shall not affect the treatment under
section 602(7)(C) of a facility of a common carrier as a cable
system.
``(3) Cable systems and open video systems.--To the extent
that a common carrier is providing video programming to its
subscribers in any manner other than that described in
paragraphs (1) and (2)--
``(A) such carrier shall be subject to the
requirements of this title, unless such programming is
provided by means of an open video system for which the
Commission has approved a certification under section
653; or
``(B) if such programming is provided by means of an
open video system for which the Commission has approved
a certification under section 653, such carrier shall be
subject to the requirements of this part, but shall be
subject to parts I through IV of this title only as
provided in 653(c).
``(4) Election to operate as open video system.--A common
carrier that is providing video programming in a manner
described in paragraph (1) or (2), or a combination thereof, may
elect to provide such programming by means of an open video
system that complies with section 653. If the Commission
approves such carrier's certification under section 653, such
carrier shall be subject to the requirements of this part, but
shall be subject to parts I through IV of this title only as
provided in 653(c).
``(b) Limitations on Interconnection Obligations.--A local exchange
carrier that provides cable service through an open video system or a
cable system shall not be required, pursuant to title II of this Act, to
make capacity available on a nondiscriminatory basis to any other person
for the provision of cable service directly to subscribers.
``(c) Additional Regulatory Relief.--A common carrier shall not be
required to obtain a certificate under section 214 with respect to the
establishment or operation of a system for the delivery of video
programming.
``SEC. 652. <<NOTE: 47 USC 572.>> PROHIBITION ON BUY OUTS.
``(a) Acquisitions by Carriers.--No local exchange carrier or any
affiliate of such carrier owned by, operated by, controlled by, or under
common control with such carrier may purchase or otherwise acquire
directly or indirectly more than a 10 percent financial interest, or any
management interest, in any cable operator providing cable service
within the local exchange carrier's telephone service area.
``(b) Acquisitions by Cable Operators.--No cable operator or
affiliate of a cable operator that is owned by, operated by, controlled
by, or under common ownership with such cable operator may purchase or
otherwise acquire, directly or indirectly, more than a 10 percent
financial interest, or any management interest, in any local exchange
carrier providing telephone exchange service within such cable
operator's franchise area.
``(c) Joint Ventures.--A local exchange carrier and a cable operator
whose telephone service area and cable franchise area, respectively, are
in the same market may not enter into any joint venture or partnership
to provide video programming directly to
[[Page 110 STAT. 120]]
subscribers or to provide telecommunications services within such
market.
``(d) Exceptions.--
``(1) Rural systems.--Notwithstanding subsections (a), (b),
and (c) of this section, a local exchange carrier (with respect
to a cable system located in its telephone service area) and a
cable operator (with respect to the facilities of a local
exchange carrier used to provide telephone exchange service in
its cable franchise area) may obtain a controlling interest in,
management interest in, or enter into a joint venture or
partnership with the operator of such system or facilities for
the use of such system or facilities to the extent that--
``(A) such system or facilities only serve
incorporated or unincorporated--
``(i) places or territories that have fewer
than 35,000 inhabitants; and
``(ii) are outside an urbanized area, as
defined by the Bureau of the Census; and
``(B) in the case of a local exchange carrier, such
system, in the aggregate with any other system in which
such carrier has an interest, serves less than 10
percent of the households in the telephone service area
of such carrier.
``(2) Joint use.--Notwithstanding subsection (c), a local
exchange carrier may obtain, with the concurrence of the cable
operator on the rates, terms, and conditions, the use of that
part of the transmission facilities of 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.
``(3) Acquisitions in competitive markets.--Notwithstanding
subsections (a) and (c), a local exchange carrier may 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
such market has more than 1 cable system operator, and
the subject cable system is not the cable system with
the most subscribers in such television market;
``(B) the subject cable system and the cable system
with the most subscribers 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
cable system operators with the most subscribers as such
operators existed on May 1, 1995; and
``(D) the system with the most subscribers in the
television market is owned by or under common ownership
or control of any one of the 10 largest cable system
operators as such operators existed on May 1, 1995.
``(4) Exempt cable systems.--Subsection (a) does not apply
to any cable system if--
[[Page 110 STAT. 121]]
``(A) the cable system serves no more than 17,000
cable subscribers, of which no less than 8,000 live
within an urban area, and no less than 6,000 live within
a nonurbanized area as of June 1, 1995;
``(B) the cable system is not owned by, or under
common ownership or control with, any of the 50 largest
cable system operators in existence on June 1, 1995; and
``(C) the cable system operates in a television
market that was not in the top 100 television markets as
of June 1, 1995.
``(5) Small cable systems in nonurban areas.--
Notwithstanding subsections (a) and (c), a local exchange
carrier with less than $100,000,000 in annual operating revenues
(or any affiliate of such carrier owned by, operated by,
controlled by, or under common control with such carrier) may
purchase or otherwise acquire more than a 10 percent financial
interest in, or any management interest in, or enter into a
joint venture or partnership with, any cable system within the
local exchange carrier's telephone service area that serves no
more than 20,000 cable subscribers, if no more than 12,000 of
those subscribers live within an urbanized area, as defined by
the Bureau of the Census.
``(6) Waivers.--The Commission may waive the restrictions of
subsections (a), (b), or (c) only if--
``(A) the Commission determines that, because of the
nature of the market served by the affected cable system
or facilities used to provide telephone exchange
service--
``(i) the affected cable operator or local
exchange carrier would be subjected to undue
economic distress by the enforcement of such
provisions;
``(ii) the system or facilities would not be
economically viable if such provisions were
enforced; or
``(iii) the anticompetitive effects of the
proposed transaction are clearly outweighed in the
public interest by the probable effect of the
transaction in meeting the convenience and needs
of the community to be served; and
``(B) the local franchising authority approves of
such waiver.
``(e) Definition of Telephone Service Area.--For purposes of this
section, 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 provided telephone exchange
service as of January 1, 1993, but if any common carrier after such date
transfers its telephone 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.
``SEC. 653. <<NOTE: 47 USC 573.>> ESTABLISHMENT OF OPEN VIDEO SYSTEMS.
``(a) Open Video Systems.--
``(1) Certificates of compliance.--A local exchange carrier
may provide cable service to its cable service subscribers in
its telephone service area through an open video system that
complies with this section. To the extent permitted by such
regulations as the Commission may prescribe consistent
[[Page 110 STAT. 122]]
with the public interest, convenience, and necessity, an
operator of a cable system or any other person may provide video
programming through an open video system that complies with this
section. An operator of an open video system shall qualify for
reduced regulatory burdens under subsection (c) of this section
if the operator of such system certifies to the Commission that
such carrier complies with the Commission's regulations under
subsection (b) and the Commission approves such
certification. <<NOTE: Publication.>> The Commission shall
publish notice of the receipt of any such certification and
shall act to approve or disapprove any such certification within
10 days after receipt of such certification.
``(2) 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, in the case of
any violation of this section, require carriage, award damages
to any person denied carriage, or any combination of such
sanctions. Any aggrieved party may seek any other remedy
available under this Act.
``(b) Commission Actions.--
``(1) Regulations required.--Within 6 months after the date
of enactment of the Telecommunications Act of 1996, the
Commission shall complete all actions necessary (including any
reconsideration) to prescribe regulations that--
``(A) except as required pursuant to section 611,
614, or 615, prohibit an operator of an open video
system from discriminating among video programming
providers with regard to carriage on its open video
system, and ensure that the rates, terms, and conditions
for such carriage are just and reasonable, and are not
unjustly or unreasonably discriminatory;
``(B) if demand exceeds the channel capacity of the
open video system, prohibit an operator of an open video
system and its affiliates from selecting the video
programming services for carriage on more than one-third
of the activated channel capacity on such system, but
nothing in this subparagraph shall be construed to limit
the number of channels that the carrier and its
affiliates may offer to provide directly to subscribers;
``(C) permit an operator of an open video system to
carry on only one channel any video programming service
that is offered by more than one video programming
provider (including the local exchange 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 open video systems 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.); and
``(E)(i) prohibit an operator of an open video
system from unreasonably discriminating in favor of the
operator or its affiliates with regard to material or
information (including advertising) provided by the
operator to subscrib
[[Page 110 STAT. 123]]
ers for the purposes of selecting programming on the
open video system, or in the way such material or
information is presented to subscribers;
``(ii) require an operator of an open video system
to ensure that video programming providers or copyright
holders (or both) are able suitably and uniquely to
identify their programming services to subscribers;
``(iii) if such identification is transmitted as
part of the programming signal, require the carrier to
transmit such identification without change or
alteration; and
``(iv) prohibit an operator of an open video system
from omitting television broadcast stations or other
unaffiliated video programming services carried on such
system from any navigational device, guide, or menu.
``(2) Consumer access.--Subject to the requirements of
paragraph (1) and the regulations thereunder, 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.
``(c) Reduced Regulatory Burdens for Open Video Systems.--
``(1) In general.--Any provision that applies to a cable
operator under--
``(A) sections 613 (other than subsection (a)
thereof), 616, 623(f), 628, 631, and 634 of this title,
shall apply,
``(B) sections 611, 614, and 615 of this title, and
section 325 of title III, shall apply in accordance with
the regulations prescribed under paragraph (2), and
``(C) sections 612 and 617, and parts III and IV
(other than sections 623(f), 628, 631, and 634), of this
title shall not apply,
to any operator of an open video system for which the Commission
has approved a certification under this section.
``(2) Implementation.--
``(A) Commission action.--In the rulemaking
proceeding to prescribe the regulations required by
subsection (b)(1), the Commission shall, to the extent
possible, impose obligations that are no greater or
lesser than the obligations contained in the provisions
described in paragraph (1)(B) of this subsection. The
Commission shall complete all action (including any
reconsideration) to prescribe such regulations no later
than 6 months after the date of enactment of the
Telecommunications Act of 1996.
``(B) Fees.--An operator of an open video system
under this part may be subject to the payment of fees on
the gross revenues of the operator for the provision of
cable service imposed by a local franchising authority
or other governmental entity, in lieu of the franchise
fees permitted 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 franchise area, as
determined in accordance with regulations prescribed by
the Commission. An operator of an open video system may
designate that portion
[[Page 110 STAT. 124]]
of a subscriber's bill attributable to the fee under
this subparagraph as a separate item on the bill.
``(3) Regulatory streamlining.--With respect to the
establishment and operation of an open video system, the
requirements of this section shall apply in lieu of, and not in
addition to, the requirements of title II.
``(4) Treatment as cable operator.--Nothing in this Act
precludes a video programming provider making use of an open
video system from being treated as an operator of a cable system
for purposes of section 111 of title 17, United States Code.
``(d) Definition of Telephone Service Area.--For purposes of this
section, 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 is offering telephone exchange
service.''.
(b) Conforming and Technical Amendments.--
(1) Repeal.--Subsection (b) of section 613 (47 U.S.C.
533(b)) is repealed.
(2) Definitions.--Section 602 (47 U.S.C. 531) <<NOTE: 47 USC
522.>> is amended--
(A) in paragraph (7), by striking ``, or (D)'' and
inserting the following: ``, unless the extent of such
use is solely to provide interactive on-demand services;
(D) an open video system that complies with section 653
of this title; or (E)'';
(B) by redesignating paragraphs (12) through (19) as
paragraphs (13) through (20), respectively; and
(C) by inserting after paragraph (11) the following
new paragraph:
``(12) the term `interactive on-demand services' means a
service providing video programming to subscribers over switched
networks on an on-demand, point-to-point basis, but does not
include services providing video programming prescheduled by the
programming provider;''.
(3) Termination of video-dialtone regulations.--The
Commission's regulations and policies with respect to video
dialtone requirements issued in CC Docket No. 87-266 shall cease
to be effective on the date of enactment of this Act. This
paragraph shall not be construed to require the termination of
any video-dialtone system that the Commission has approved
before the date of enactment of this Act.
SEC. 303. PREEMPTION OF FRANCHISING AUTHORITY REGULATION OF
TELECOMMUNICATIONS SERVICES.
(a) Provision of Telecommunications Services by a Cable Operator.--
Section 621(b) (47 U.S.C. 541(b)) is amended by adding at the end
thereof the following new paragraph:
``(3)(A) If 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 for the provision of
telecommunications services; and
``(ii) the provisions of this title shall not apply to such
cable operator or affiliate for the provision of
telecommunications services.
``(B) A franchising authority may not impose any requirement under
this title that has the purpose or effect of prohibiting, limit
[[Page 110 STAT. 125]]
ing, 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 institutional
networks, as a condition of the initial grant of a franchise, a
franchise renewal, or a transfer of a franchise.''.
(b) Franchise Fees.--Section 622(b) (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. 304. COMPETITIVE AVAILABILITY OF NAVIGATION DEVICES.
Part III of title VI is amended by inserting after section 628 (47
U.S.C. 548) the following new section:
``SEC. 629. <<NOTE: Regulations. 47 USC 549.>> COMPETITIVE AVAILABILITY
OF NAVIGATION DEVICES.
``(a) Commercial Consumer Availability of Equipment Used To Access
Services Provided by Multichannel Video Programming Distributors.--The
Commission shall, in consultation with appropriate industry standard-
setting organizations, adopt regulations to assure the commercial
availability, to consumers of multichannel video programming and other
services offered over multichannel video programming systems, of
converter boxes, interactive communications equipment, and other
equipment used by consumers to access multichannel video programming and
other services offered over multichannel video programming systems, from
manufacturers, retailers, and other vendors not affiliated with any
multichannel video programming distributor. Such regulations shall not
prohibit any multichannel video programming distributor from also
offering converter boxes, interactive communications equipment, and
other equipment used by consumers to access multichannel video
programming and other services offered over multichannel video
programming systems, to consumers, if the system operator's charges to
consumers for such devices and equipment are separately stated and not
subsidized by charges for any such service.
``(b) Protection of System Security.--The Commission shall not
prescribe regulations under subsection (a) which would jeopardize
security of multichannel video programming and other services offered
over multichannel video programming systems, or impede the legal rights
of a provider of such services to prevent theft of service.
``(c) Waiver.--The Commission shall waive a regulation adopted under
subsection (a) for a limited time upon an appropriate showing by a
provider of multichannel video programming and other services offered
over multichannel video programming systems, or an equipment provider,
that such waiver is necessary to assist the development or introduction
of a new or improved multichannel video programming or other service
offered over multichannel video
[[Page 110 STAT. 126]]
programming systems, technology, or products. Upon an appropriate
showing, the Commission shall grant any such waiver request within 90
days of any application filed under this subsection, and such waiver
shall be effective for all service providers and products in that
category and for all providers of services and products.
``(d) Avoidance of Redundant Regulations.--
``(1) Commercial availability determinations.--
Determinations made or regulations prescribed by the Commission
with respect to commercial availability to consumers of
converter boxes, interactive communications equipment, and other
equipment used by consumers to access multichannel video
programming and other services offered over multichannel video
programming systems, before the date of enactment of the
Telecommunications Act of 1996 shall fulfill the requirements of
this section.
``(2) Regulations.--Nothing in this section affects section
64.702(e) of the Commission's regulations (47 C.F.R. 64.702(e))
or other Commission regulations governing interconnection and
competitive provision of customer premises equipment used in
connection with basic common carrier communications services.
``(e) Sunset.--The regulations adopted under this section shall
cease to apply when the Commission determines that--
``(1) the market for the multichannel video programming
distributors is fully competitive;
``(2) the market for converter boxes, and interactive
communications equipment, used in conjunction with that service
is fully competitive; and
``(3) elimination of the regulations would promote
competition and the public interest.
``(f) Commission's Authority.--Nothing in this section shall be
construed as expanding or limiting any authority that the Commission may
have under law in effect before the date of enactment of the
Telecommunications Act of 1996.''.
SEC. 305. VIDEO PROGRAMMING ACCESSIBILITY.
Title VII is amended by inserting after section 712 (47 U.S.C. 612)
the following new section:
``SEC. 713. <<NOTE: 47 USC 613.>> VIDEO PROGRAMMING ACCESSIBILITY.
``(a) Commission Inquiry.--Within 180 days after the date of
enactment of the Telecommunications Act of 1996, 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. <<NOTE: Reports.>> The Commission shall submit to the Congress
a report on the results of such inquiry.
``(b) <<NOTE: Regulations.>> Accountability Criteria.--Within 18
months after such 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
[[Page 110 STAT. 127]]
``(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 the
Telecommunications Act of 1996, 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) <<NOTE: Reports.>> Video Descriptions Inquiry.--Within 6
months after the date of enactment of the Telecommunications Act of
1996, 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.
``(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 there
[[Page 110 STAT. 128]]
under. The Commission shall have exclusive jurisdiction with respect to
any complaint under this section.''.
TITLE IV--REGULATORY REFORM
SEC. 401. REGULATORY FORBEARANCE.
Title I is amended by inserting after section 9 (47 U.S.C. 159) the
following new section:
``SEC. 10. <<NOTE: 47 USC 160.>> COMPETITION IN PROVISION OF
TELECOMMUNICATIONS SERVICE.
``(a) Regulatory flexibility.--Notwithstanding section 332(c)(1)(A)
of this Act, the Commission shall forbear from applying any regulation
or any provision of this Act to a telecommunications carrier or
telecommunications service, or class of telecommunications carriers or
telecommunications services, in any or some of its or their geographic
markets, if the Commission determines that--
``(1) enforcement of such regulation or provision is not
necessary to ensure that the charges, practices,
classifications, or regulations by, for, or in connection with
that telecommunications carrier or telecommunications 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; and
``(3) forbearance from applying such provision or regulation
is consistent 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) Petition for Forbearance.--Any telecommunications carrier, or
class of telecommunications carriers, may submit a petition to the
Commission requesting that the Commission exercise the authority granted
under this section with respect to that carrier or those carriers, or
any service offered by that carrier or carriers. Any such petition shall
be deemed granted if the Commission does not deny the petition for
failure to meet the requirements for forbearance under subsection (a)
within one year after the Commission receives it, unless the one-year
period is extended by the Commission. The Commission may extend the
initial one-year period by an additional 90 days if the Commission finds
that an extension is necessary to meet the requirements of subsection
(a). The Commission may grant or deny a petition in whole or in part and
shall explain its decision in writing.
``(d) Limitation.--Except as provided in section 251(f), the
Commission may not forbear from applying the requirements of section
251(c) or 271 under subsection (a) of this section until it determines
that those requirements have been fully implemented.
``(e) State Enforcement After Commission Forbearance.--A State
commission may not continue to apply or enforce any
[[Page 110 STAT. 129]]
provision of this Act that the Commission has determined to forbear from
applying under subsection (a).''.
SEC. 402. BIENNIAL REVIEW OF REGULATIONS; REGULATORY RELIEF.
(a) Biennial Review.--Title I is amended by inserting after section
10 (as added by section 401) the following new section:
``SEC. 11. <<NOTE: 47 USC 161.>> REGULATORY REFORM.
``(a) Biennial Review of Regulations.--In every even-numbered year
(beginning with 1998), the Commission--
``(1) shall review all regulations issued under this Act in
effect at the time of the review that apply to the operations or
activities of any provider of telecommunications service; and
``(2) shall determine whether any such regulation is no
longer necessary in the public interest as the result of
meaningful economic competition between providers of such
service.
``(b) Effect of Determination.--The Commission shall repeal or
modify any regulation it determines to be no longer necessary in the
public interest.''.
(b) Regulatory Relief.--
(1) Streamlined procedures for changes in charges,
classifications, regulations, or practices.--
(A) Section 204(a) (47 U.S.C. 204(a)) is amended--
(i) by striking ``12 months'' the first place
it appears in paragraph (2)(A) and inserting ``5
months'';
(ii) by striking ``effective,'' and all that
follows in paragraph (2)(A) and inserting
``effective.''; and
(iii) by adding at the end thereof the
following:
``(3) A local exchange carrier may file with the Commission
a new or revised charge, classification, regulation, or practice
on a streamlined basis. Any such charge, classification,
regulation, or practice shall be deemed lawful and shall be
effective 7 days (in the case of a reduction in rates) or 15
days (in the case of an increase in rates) after the date on
which it is filed with the Commission unless the Commission
takes action under paragraph (1) before the end of that 7-day or
15-day period, as is appropriate.''.
(B) Section 208(b) (47 U.S.C. 208(b)) is amended--
(i) by striking ``12 months'' the first place
it appears in paragraph (1) and inserting ``5
months''; and
(ii) by striking ``filed,'' and all that
follows in paragraph (1) and inserting ``filed.''.
(2) <<NOTE: 47 USC 214 note.>> Extensions of lines under
section 214; armis reports.--The Commission shall permit any
common carrier--
(A) to be exempt from the requirements of section
214 of the Communications Act of 1934 for the extension
of any line; and
(B) to file cost allocation manuals and ARMIS
reports annually, to the extent such carrier is required
to file such manuals or reports.
(3) <<NOTE: 47 USC 204 note.>> Forbearance authority not
limited.--Nothing in this subsection shall be construed to limit
the authority of the Commission to waive, modify, or forbear
from applying any of the requirements to which reference is made
in paragraph (1) under any other provision of this Act or other
law.
(4) <<NOTE: 47 USC 204 note.>> Effective date of
amendments.--The amendments made by paragraph (1) of this
subsection shall apply with respect to any charge,
classification, regulation, or practice
[[Page 110 STAT. 130]]
filed on or after one year after the date of enactment of this
Act.
(c) Classification of Carriers.--In classifying carriers according
to section 32.11 of its regulations (47 C.F.R. 32.11) and in
establishing reporting requirements pursuant to part 43 of its
regulations (47 C.F.R. part 43) and section 64.903 of its regulations
(47 C.F.R. 64.903), the Commission shall adjust the revenue requirements
to account for inflation as of the release date of the Commission's
Report and Order in CC Docket No. 91-141, and annually
thereafter. <<NOTE: Effective date.>> This subsection shall take effect
on the date of enactment of this Act.
SEC. 403. ELIMINATION OF UNNECESSARY COMMISSION REGULATIONS AND
FUNCTIONS.
(a) Modification of Amateur Radio Examination Procedures.--Section
4(f)(4) (47 U.S.C. 154(f)(4)) is amended--
(1) in subparagraph (A)--
(A) by inserting ``or administering'' after ``for
purposes of preparing'';
(B) by inserting ``of'' after ``than the class'';
and
(C) by inserting ``or administered'' after ``for
which the examination is being prepared'';
(2) by striking subparagraph (B);
(3) in subparagraph (H), by striking ``(A), (B), and (C)''
and inserting ``(A) and (B)'';
(4) in subparagraph (J)--
(A) by striking ``or (B)''; and
(B) by striking the last sentence; and
(5) by redesignating subparagraphs (C) through (J) as
subparagraphs (B) through (I), respectively.
(b) Authority To Designate Entities To Inspect.--Section 4(f)(3) (47
U.S.C. 154(f)(3)) is amended by inserting before the period at the end
the following: ``: and Provided further, That, in the alternative, an
entity designated by the Commission may make the inspections referred to
in this paragraph''.
(c) Expediting Instructional Television Fixed Service Processing.--
Section 5(c)(1) (47 U.S.C. 155(c)(1)) is amended by striking the last
sentence and inserting the following: ``Except for cases involving the
authorization of service in the instructional television fixed service,
or as otherwise provided in this Act, nothing in this paragraph shall
authorize the Commission to provide for the conduct, by any person or
persons other than persons referred to in paragraph (2) or (3) of
section 556(b) of title 5, United States Code, of any hearing to which
such section applies.''.
(d) Repeal Setting of Depreciation Rates.--The first sentence of
section 220(b) (47 U.S.C. 220(b)) is amended by striking ``shall
prescribe for such carriers'' and inserting ``may prescribe, for such
carriers as it determines to be appropriate,''.
(e) Use of Independent Auditors.--Section 220(c) (47 U.S.C. 220(c))
is amended by adding at the end thereof the following: ``The Commission
may obtain the services of any person licensed to provide public
accounting services under the law of any State to assist with, or
conduct, audits under this section. While so employed or engaged in
conducting an audit for the Commission under this section, any such
person shall have the powers granted the Commission under this
subsection and shall be subject to sub
[[Page 110 STAT. 131]]
section (f) in the same manner as if that person were an employee of the
Commission.''.
(f) Delegation of Equipment Testing and Certification to Private
Laboratories.--Section 302 (47 U.S.C. 302) <<NOTE: 47 USC 302a.>> is
amended by adding at the end the following:
``(e) 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.''.
(g) Making License Modification Uniform.--Section 303(f) (47 U.S.C.
303(f)) is amended by striking ``unless, after a public hearing,'' and
inserting ``unless''.
(h) Eliminate FCC Jurisdiction Over Government-Owned Ship Radio
Stations.--
(1) Section 305 (47 U.S.C. 305) is amended by striking
subsection (b) and redesignating subsections (c) and (d) as (b)
and (c), respectively.
(2) Section 382(2) (47 U.S.C. 382(2)) is amended by striking
``except a vessel of the United States Maritime Administration,
the Inland and Coastwise Waterways Service, or the Panama Canal
Company,''.
(i) Permit Operation of Domestic Ship and Aircraft Radios Without
License.--Section 307(e) (47 U.S.C. 307(e)) is amended to read as
follows:
``(e)(1) Notwithstanding any license requirement established in this
Act, if the Commission determines that such authorization serves the
public interest, convenience, and necessity, the Commission may by rule
authorize the operation of radio stations without individual licenses in
the following radio services: (A) the citizens band radio service; (B)
the radio control service; (C) the aviation radio service for aircraft
stations operated on domestic flights when such aircraft are not
otherwise required to carry a radio station; and (D) the maritime radio
service for ship stations navigated on domestic voyages when such ships
are not otherwise required to carry a radio station.
``(2) Any radio station operator who is authorized by the Commission
to operate without an individual license shall comply with all other
provisions of this Act and with rules prescribed by the Commission under
this Act.
``(3) For purposes of this subsection, the terms `citizens band
radio service', `radio control service', `aircraft station' and `ship
station' shall have the meanings given them by the Commission by
rule.''.
(j) Expedited Licensing for Fixed Microwave Service.--Section
309(b)(2) (47 U.S.C. 309(b)(2)) is amended by striking subparagraph (A)
and redesignating subparagraphs (B) through (G) as subparagraphs (A)
through (F), respectively.
(k) Foreign Directors.--Section 310(b) (47 U.S.C. 310(b)) is
amended--
(1) in paragraph (3), by striking ``of which any officer or
director is an alien or''; and
[[Page 110 STAT. 132]]
(2) in paragraph (4), by striking ``of which any officer or
more than one-fourth of the directors are aliens, or''.
(l) Limitation on Silent Station Authorizations.--Section 312 (47
U.S.C. 312) is amended by adding at the end the following:
``(g) If a broadcasting station fails to transmit broadcast signals
for any consecutive 12-month period, then the station license granted
for the operation of that broadcast station expires at the end of that
period, notwithstanding any provision, term, or condition of the license
to the contrary.''.
(m) Modification of Construction Permit Requirement.--Section
319(d) <<NOTE: 47 USC 319.>> is amended by striking the last two
sentences and inserting the following: ``With respect to any
broadcasting station, the Commission shall not have any authority to
waive the requirement of a permit for construction, except that the
Commission may by regulation determine that a permit shall not be
required for minor changes in the facilities of authorized broadcast
stations. With respect to any other station or class of stations, the
Commission shall not waive the requirement for a construction permit
unless the Commission determines that the public interest, convenience,
and necessity would be served by such a waiver.''.
(n) Conduct of Inspections.--Section 362(b) (47 U.S.C.
362(b)) <<NOTE: 47 USC 360.>> is amended to read as follows:
``(b) Every ship of the United States that is subject to this part
shall have the equipment and apparatus prescribed therein inspected at
least once each year by the Commission or an entity designated by the
Commission. If, after such inspection, the Commission is satisfied that
all relevant provisions of this Act and the station license have been
complied with, the fact shall be so certified on the station license by
the Commission. The Commission shall make such additional inspections at
frequent intervals as the Commission determines may be necessary to
ensure compliance with the requirements of this Act. The Commission may,
upon a finding that the public interest could be served thereby--
``(1) waive the annual inspection required under this
section for a period of up to 90 days for the sole purpose of
enabling a vessel to complete its voyage and proceed to a port
in the United States where an inspection can be held; or
``(2) waive the annual inspection required under this
section for a vessel that is in compliance with the radio
provisions of the Safety Convention and that is operating solely
in waters beyond the jurisdiction of the United States:
Provided, That such inspection shall be performed within 30 days
of such vessel's return to the United States.''.
(o) Inspection by Other Entities.--Section 385 (47 U.S.C. 385) is
amended--
(1) by inserting ``or an entity designated by the
Commission'' after ``The Commission''; and
(2) by adding at the end thereof the following: ``In
accordance with such other provisions of law as apply to
Government contracts, the Commission may enter into contracts
with any person for the purpose of carrying out such inspections
and certifying compliance with those requirements, and may, as
part of any such contract, allow any such person to accept
reimbursement from the license holder for travel and expense
costs of any employee conducting an inspection or
certification.''.
[[Page 110 STAT. 133]]
TITLE V--OBSCENITY AND VIOLENCE <<NOTE: Communications Decency Act of
1996. Law enforcement and crime. Penalties.>>
Subtitle A--Obscene, Harassing, and Wrongful Utilization of
Telecommunications Facilities
SEC. 501. <<NOTE: 47 USC 609 note.>> SHORT TITLE.
This title may be cited as the ``Communications Decency Act of
1996''.
SEC. 502. OBSCENE OR HARASSING USE OF TELECOMMUNICATIONS FACILITIES
UNDER THE COMMUNICATIONS ACT OF 1934.
Section 223 (47 U.S.C. 223) is amended--
(1) by striking subsection (a) and inserting in lieu
thereof:
``(a) Whoever--
``(1) in interstate or foreign communications--
``(A) by means of a telecommunications device
knowingly--
``(i) makes, creates, or solicits, and
``(ii) initiates the transmission of,
any comment, request, suggestion, proposal, image, or
other communication which is obscene, lewd, lascivious,
filthy, or indecent, with intent to annoy, abuse,
threaten, or harass another person;
``(B) by means of a telecommunications device
knowingly--
``(i) makes, creates, or solicits, and
``(ii) initiates the transmission of,
any comment, request, suggestion, proposal, image, or
other communication which is obscene or indecent,
knowing that the recipient of the communication is under
18 years of age, regardless of whether the maker of such
communication placed the call or initiated the
communication;
``(C) makes a telephone call or utilizes a
telecommunications device, whether or not conversation
or communication ensues, without disclosing his identity
and with intent to annoy, abuse, threaten, or harass any
person at the called number or who receives the
communications;
``(D) makes or causes the telephone of another
repeatedly or continuously to ring, with intent to
harass any person at the called number; or
``(E) makes repeated telephone calls or repeatedly
initiates communication with a telecommunications
device, during which conversation or communication
ensues, solely to harass any person at the called number
or who receives the communication; or
``(2) knowingly permits any telecommunications facility
under his control to be used for any activity prohibited by
paragraph (1) with the intent that it be used for such activity,
shall be fined under title 18, United States Code, or imprisoned not
more than two years, or both.''; and
(2) by adding at the end the following new subsections:
``(d) Whoever--
``(1) in interstate or foreign communications knowingly--
[[Page 110 STAT. 134]]
``(A) uses an interactive computer service to send
to a specific person or persons under 18 years of age,
or
``(B) uses any interactive computer service to
display in a manner available to a person under 18 years
of age,
any comment, request, suggestion, proposal, image, or other
communication that, in context, depicts or describes, in terms
patently offensive as measured by contemporary community
standards, sexual or excretory activities or organs, regardless
of whether the user of such service placed the call or initiated
the communication; or
``(2) knowingly permits any telecommunications facility
under such person's control to be used for an activity
prohibited by paragraph (1) with the intent that it be used for
such activity,
shall be fined under title 18, United States Code, or imprisoned not
more than two years, or both.
``(e) In addition to any other defenses available by law:
``(1) No person shall be held to have violated subsection
(a) or (d) solely for providing access or connection to or from
a facility, system, or network not under that person's control,
including transmission, downloading, intermediate storage,
access software, or other related capabilities that are
incidental to providing such access or connection that does not
include the creation of the content of the communication.
``(2) The defenses provided by paragraph (1) of this
subsection shall not be applicable to a person who is a
conspirator with an entity actively involved in the creation or
knowing distribution of communications that violate this
section, or who knowingly advertises the availability of such
communications.
``(3) The defenses provided in paragraph (1) of this
subsection shall not be applicable to a person who provides
access or connection to a facility, system, or network engaged
in the violation of this section that is owned or controlled by
such person.
``(4) No employer shall be held liable under this section
for the actions of an employee or agent unless the employee's or
agent's conduct is within the scope of his or her employment or
agency and the employer (A) having knowledge of such conduct,
authorizes or ratifies such conduct, or (B) recklessly
disregards such conduct.
``(5) It is a defense to a prosecution under subsection
(a)(1)(B) or (d), or under subsection (a)(2) with respect to the
use of a facility for an activity under subsection (a)(1)(B)
that a person--
``(A) has taken, in good faith, reasonable,
effective, and appropriate actions under the
circumstances to restrict or prevent access by minors to
a communication specified in such subsections, which may
involve any appropriate measures to restrict minors from
such communications, including any method which is
feasible under available technology; or
``(B) has restricted access to such communication by
requiring use of a verified credit card, debit account,
adult access code, or adult personal identification
number.
``(6) The Commission may describe measures which are
reasonable, effective, and appropriate to restrict access to
prohibited communications under subsection (d). Nothing in
[[Page 110 STAT. 135]]
this section authorizes the Commission to enforce, or is
intended to provide the Commission with the authority to
approve, sanction, or permit, the use of such measures. The
Commission shall have no enforcement authority over the failure
to utilize such measures. The Commission shall not endorse
specific products relating to such measures. The use of such
measures shall be admitted as evidence of good faith efforts for
purposes of paragraph (5) in any action arising under subsection
(d). Nothing in this section shall be construed to treat
interactive computer services as common carriers or
telecommunications carriers.
``(f)(1) No cause of action may be brought in any court or
administrative agency against any person on account of any activity that
is not in violation of any law punishable by criminal or civil penalty,
and that the person has taken in good faith to implement a defense
authorized under this section or otherwise to restrict or prevent the
transmission of, or access to, a communication specified in this
section.
``(2) No State or local government may impose any liability for
commercial activities or actions by commercial entities, nonprofit
libraries, or institutions of higher education in connection with an
activity or action described in subsection (a)(2) or (d) that is
inconsistent with the treatment of those activities or actions under
this section: Provided, however, That nothing herein shall preclude any
State or local government from enacting and enforcing complementary
oversight, liability, and regulatory systems, procedures, and
requirements, so long as such systems, procedures, and requirements
govern only intrastate services and do not result in the imposition of
inconsistent rights, duties or obligations on the provision of
interstate services. Nothing in this subsection shall preclude any State
or local government from governing conduct not covered by this section.
``(g) Nothing in subsection (a), (d), (e), or (f) or in the defenses
to prosecution under subsection (a) or (d) shall be construed to affect
or limit the application or enforcement of any other Federal law.
``(h) For purposes of this section--
``(1) The use of the term `telecommunications device' in
this section--
``(A) shall not impose new obligations on
broadcasting station licensees and cable operators
covered by obscenity and indecency provisions elsewhere
in this Act; and
``(B) does not include an interactive computer
service.
``(2) The term `interactive computer service' has the
meaning provided in section 230(e)(2).
``(3) The term `access software' means software (including
client or server software) or enabling tools that do not create
or provide the content of the communication but that allow a
user to do any one or more of the following:
``(A) filter, screen, allow, or disallow content;
``(B) pick, choose, analyze, or digest content; or
``(C) transmit, receive, display, forward, cache,
search, subset, organize, reorganize, or translate
content.
``(4) The term `institution of higher education' has the
meaning provided in section 1201 of the Higher Education Act of
1965 (20 U.S.C. 1141).
[[Page 110 STAT. 136]]
``(5) The term `library' means a library eligible for
participation in State-based plans for funds under title III of
the Library Services and Construction Act (20 U.S.C. 355e et
seq.).''.
SEC. 503. OBSCENE PROGRAMMING ON CABLE TELEVISION.
Section 639 (47 U.S.C. 559) is amended by striking ``not more than
$10,000'' and inserting ``under title 18, United States Code,''.
SEC. 504. SCRAMBLING OF CABLE CHANNELS FOR NONSUBSCRIBERS.
Part IV of title VI (47 U.S.C. 551 et seq.) is amended by adding at
the end the following:
``SEC. 640. <<NOTE: 47 USC 560.>> SCRAMBLING OF CABLE CHANNELS FOR
NONSUBSCRIBERS.
``(a) Subscriber Request.--Upon request by a cable service
subscriber, a cable operator shall, without charge, fully scramble or
otherwise fully block the audio and video programming of each channel
carrying such programming so that one not a subscriber does not receive
it.
``(b) Definition.--As used in this section, the term `scramble'
means to rearrange the content of the signal of the programming so that
the programming cannot be viewed or heard in an understandable
manner.''.
SEC. 505. SCRAMBLING OF SEXUALLY EXPLICIT ADULT VIDEO SERVICE
PROGRAMMING.
(a) Requirement.--Part IV of title VI (47 U.S.C. 551 et seq.), as
amended by this Act, is further amended by adding at the end the
following:
``SEC. 641. <<NOTE: 47 USC 561.>> SCRAMBLING OF SEXUALLY EXPLICIT ADULT
VIDEO SERVICE PROGRAMMING.
``(a) Requirement.--In providing sexually explicit adult programming
or other programming that is indecent on any channel of its service
primarily dedicated to sexually-oriented programming, a multichannel
video programming distributor shall fully scramble or otherwise fully
block the video and audio portion of such channel so that one not a
subscriber to such channel or programming does not receive it.
``(b) <<NOTE: Children and youth.>> Implementation.--Until a
multichannel video programming distributor complies with the requirement
set forth in subsection (a), the distributor shall limit the access of
children to the programming referred to in that subsection by not
providing such programming during the hours of the day (as determined by
the Commission) when a significant number of children are likely to view
it.
``(c) Definition.--As used in this section, the term `scramble'
means to rearrange the content of the signal of the programming so that
the programming cannot be viewed or heard in an understandable
manner.''.
(b) <<NOTE: 47 USC 561 note.>> Effective Date.--The amendment made
by subsection (a) shall take effect 30 days after the date of enactment
of this Act.
SEC. 506. CABLE OPERATOR REFUSAL TO CARRY CERTAIN PROGRAMS.
(a) Public, Educational, and Governmental Channels.--Section 611(e)
(47 U.S.C. 531(e)) is amended by inserting before the period the
following: ``, except a cable operator may refuse to transmit any public
access program or portion of a public access program which contains
obscenity, indecency, or nudity''.
[[Page 110 STAT. 137]]
(b) Cable Channels for Commercial Use.--Section 612(c)(2) (47 U.S.C.
532(c)(2)) is amended by striking ``an operator'' and inserting ``a
cable operator may refuse to transmit any leased access program or
portion of a leased access program which contains obscenity, indecency,
or nudity and''.
SEC. 507. CLARIFICATION OF CURRENT LAWS REGARDING COMMUNICATION OF
OBSCENE MATERIALS THROUGH THE USE OF COMPUTERS.
(a) Importation or Transportation.--Section 1462 of title 18, United
States Code, is amended--
(1) in the first undesignated paragraph, by inserting ``or
interactive computer service (as defined in section 230(e)(2) of
the Communications Act of 1934)'' after ``carrier''; and
(2) in the second undesignated paragraph--
(A) by inserting ``or receives,'' after ``takes'';
(B) by inserting ``or interactive computer service
(as defined in section 230(e)(2) of the Communications
Act of 1934)'' after ``common carrier''; and
(C) by inserting ``or importation'' after
``carriage''.
(b) Transportation for Purposes of Sale or Distribution.--The first
undesignated paragraph of section 1465 of title 18, United States Code,
is amended--
(1) by striking ``transports in'' and inserting ``transports
or travels in, or uses a facility or means of,'';
(2) by inserting ``or an interactive computer service (as
defined in section 230(e)(2) of the Communications Act of 1934)
in or affecting such commerce'' after ``foreign commerce'' the
first place it appears;
(3) by striking ``, or knowingly travels in'' and all that
follows through ``obscene material in interstate or foreign
commerce,'' and inserting ``of''.
(c) <<NOTE: 18 USC 1462 note.>> Interpretation.--The amendments
made by this section are clarifying and shall not be interpreted to
limit or repeal any prohibition contained in sections 1462 and 1465 of
title 18, United States Code, before such amendment, under the rule
established in United States v. Alpers, 338 U.S. 680 (1950).
SEC. 508. COERCION AND ENTICEMENT OF MINORS.
Section 2422 of title 18, United States Code, is amended--
(1) by inserting ``(a)'' before ``Whoever knowingly''; and
(2) by adding at the end the following:
``(b) Whoever, using any facility or means of interstate or foreign
commerce, including the mail, or within the special maritime and
territorial jurisdiction of the United States, knowingly persuades,
induces, entices, or coerces any individual who has not attained the age
of 18 years to engage in prostitution or any sexual act for which any
person may be criminally prosecuted, or attempts to do so, shall be
fined under this title or imprisoned not more than 10 years, or both.''.
SEC. 509. 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. <<NOTE: 47 USC 230.>> PROTECTION FOR PRIVATE BLOCKING AND
SCREENING OF OFFENSIVE MATERIAL.
``(a) Findings.--The Congress finds the following:
[[Page 110 STAT. 138]]
``(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--
``(1) to promote the continued development of the Internet
and other interactive computer services and other interactive
media;
``(2) to preserve the vibrant and competitive free market
that presently exists for the Internet and other interactive
computer services, unfettered by Federal or State regulation;
``(3) to encourage the development of technologies which
maximize user control over what information is received by
individuals, families, and schools who use the Internet and
other interactive computer services;
``(4) to 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) to ensure vigorous enforcement of Federal 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.--
``(1) Treatment of publisher or speaker.--No provider or
user of an interactive computer service shall be treated as the
publisher or speaker of any information provided by another
information content provider.
``(2) Civil liability.--No provider or user of an
interactive computer service shall be held liable on account
of--
``(A) any action voluntarily taken in good faith to
restrict access to or availability of 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
``(B) any action taken to enable or make available
to information content providers or others the technical
means to restrict access to material described in
paragraph (1).
``(d) 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
[[Page 110 STAT. 139]]
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) State law.--Nothing in this section shall be construed
to prevent any State from enforcing any State law that is
consistent with this section. No cause of action may be brought
and no liability may be imposed under any State or local law
that is inconsistent with this section.
``(4) No effect on communications privacy law.--Nothing in
this section shall be construed to limit the application of the
Electronic Communications Privacy Act of 1986 or any of the
amendments made by such Act, or any similar State law.
``(e) 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, system, or
access software provider that provides or enables computer
access by multiple users to a computer server, including
specifically a service or system that provides access to the
Internet and such systems operated or services offered by
libraries or educational institutions.
``(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 through the Internet or any
other interactive computer service.
``(4) Access software provider.--The term `access software
provider' means a provider of software (including client or
server software), or enabling tools that do any one or more of
the following:
``(A) filter, screen, allow, or disallow content;
``(B) pick, choose, analyze, or digest content; or
``(C) transmit, receive, display, forward, cache,
search, subset, organize, reorganize, or translate
content.''.
Subtitle B--Violence
SEC. 551. PARENTAL CHOICE IN TELEVISION PROGRAMMING.
(a) <<NOTE: 47 USC 303 note.>> 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.
[[Page 110 STAT. 140]]
(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 a
nonintrusive and narrowly tailored means of achieving that
compelling governmental interest.
(b) Establishment of Television Rating Code.--
(1) Amendment.--Section 303 (47 U.S.C. 303) is amended by
adding at the end the following:
``(w) Prescribe--
``(1) on the basis of recommendations from an advisory
committee established by the Commission in accordance with
section 551(b)(2) of the Telecommunications Act of 1996,
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, and in consultation with the television industry, 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.''.
(2) <<NOTE: 47 USC 303 note.>> Advisory committee
requirements.--In establishing an advisory committee for
purposes of the amendment made by paragraph (1) of this
subsection, the Commission shall--
(A) ensure that such committee is composed of
parents, television broadcasters, television programming
producers, cable operators, appropriate public interest
groups, and other interested individuals from the
private sector and is fairly balanced in terms of
political affiliation, the points of view represented,
and the functions to be performed by the committee;
[[Page 110 STAT. 141]]
(B) provide to the committee such staff and
resources as may be necessary to permit it to perform
its functions efficiently and promptly; and
(C) <<NOTE: Reports.>> require the committee to
submit a final report of its recommendations within one
year after the date of the appointment of the initial
members.
(c) Requirement for Manufacture of Televisions That Block
Programs.--Section 303 (47 U.S.C. 303), as amended by subsection (a), is
further amended by adding at the end the following:
``(x) Require, in the case of an apparatus designed to receive
television signals that are shipped in interstate commerce or
manufactured in the United States and that have a picture screen 13
inches or greater in size (measured diagonally), that such apparatus be
equipped with a feature 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 of Televisions That Block Programs.--
(1) Regulations.--Section 330 (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 or manufacture in the United States any apparatus
described in section 303(x) 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 in 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(x) to require that the apparatus described in such section be
equipped with either the blocking technology described in such
[[Page 110 STAT. 142]]
section or the alternative blocking technology described in this
paragraph.''.
(2) Conforming amendment.--Section 330(d), as redesignated
by subsection (d)(1)(A), <<NOTE: 47 USC 330.>> is amended by
striking ``section 303(s), and section 303(u)'' and inserting in
lieu thereof ``and sections 303(s), 303(u), and 303(x)''.
(e) <<NOTE: 47 USC 303 note.>> 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 two years after the date of
enactment of this Act.
SEC. 552. <<NOTE: 47 USC 303 note.>> TECHNOLOGY FUND.
It is the policy of the United States to 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--
(1) 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 and to
encourage the availability thereof to low income parents;
(2) report to the viewing public on the status of the
development of affordable, easy to use blocking technology; and
(3) 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 to encourage the
availability thereof to low income parents.
Subtitle C--Judicial Review
SEC. 561. <<NOTE: 47 USC 223 note.>> EXPEDITED REVIEW.
(a) Three-Judge District Court Hearing.--Notwithstanding any other
provision of law, any civil action challenging the constitutionality, on
its face, of this title or any amendment made by this title, or any
provision thereof, shall be heard by a district
[[Page 110 STAT. 143]]
court of 3 judges convened pursuant to the provisions of section 2284 of
title 28, United States Code.
(b) Appellate Review.--Notwithstanding any other provision of law,
an interlocutory or final judgment, decree, or order of the court of 3
judges in an action under subsection (a) holding this title or an
amendment made by this title, or any provision thereof, unconstitutional
shall be reviewable as a matter of right by direct appeal to the Supreme
Court. Any such appeal shall be filed not more than 20 days after entry
of such judgment, decree, or order.
TITLE VI--EFFECT ON OTHER LAWS <<NOTE: 47 USC 152 note.>>
SEC. 601. APPLICABILITY OF CONSENT DECREES AND OTHER LAW.
(a) Applicability of Amendments to Future Conduct.--
(1) AT&T consent decree.--Any conduct or activity that was,
before the date of enactment of this Act, subject to any
restriction or obligation imposed by the AT&T Consent Decree
shall, on and after such date, be subject to the restrictions
and obligations imposed by the Communications Act of 1934 as
amended by this Act and shall not be subject to the restrictions
and the obligations imposed by such Consent Decree.
(2) GTE consent decree.--Any conduct or activity that was,
before the date of enactment of this Act, subject to any
restriction or obligation imposed by the GTE Consent Decree
shall, on and after such date, be subject to the restrictions
and obligations imposed by the Communications Act of 1934 as
amended by this Act and shall not be subject to the restrictions
and the obligations imposed by such Consent Decree.
(3) McCaw consent decree.--Any conduct or activity that was,
before the date of enactment of this Act, subject to any
restriction or obligation imposed by the McCaw Consent Decree
shall, on and after such date, be subject to the restrictions
and obligations imposed by the Communications Act of 1934 as
amended by this Act and subsection (d) of this section and shall
not be subject to the restrictions and the obligations imposed
by such Consent Decree.
(b) Antitrust Laws.--
(1) Savings clause.--Except as provided in paragraphs (2)
and (3), nothing in this Act or the amendments made by this Act
shall be construed to modify, impair, or supersede the
applicability of any of the antitrust laws.
(2) Repeal.--Subsection (a) of section 221 (47 U.S.C.
221(a)) is repealed.
(3) Clayton act.--Section 7 of the Clayton Act (15 U.S.C.
18) is amended in the last paragraph by striking ``Federal
Communications Commission,''.
(c) Federal, State, and Local Law.--
(1) No implied effect.--This Act and the amendments made by
this Act shall not be construed to modify, impair, or supersede
Federal, State, or local law unless expressly so provided in
such Act or amendments.
(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
[[Page 110 STAT. 144]]
in sections 622 and 653(c) of the Communications Act of 1934 and
section 602 of this Act.
(d) 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, a Bell operating company or any other
company may, except as provided in sections 271(e)(1) and 272 of the
Communications Act of 1934 as amended by this Act 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.
(e) Definitions.--As used in this section:
(1) AT&T consent decree.--The term ``AT&T Consent Decree''
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.
(2) GTE consent decree.--The term ``GTE Consent Decree''
means the order entered December 21, 1984, 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.
(3) McCaw consent decree.--The term ``McCaw Consent Decree''
means the proposed consent decree filed on July 15, 1994, in the
antitrust action styled United States v. AT&T Corp. and McCaw
Cellular Communications, Inc., Civil Action No. 94-01555, in the
United States District Court for the District of Columbia. Such
term includes any stipulation that the parties will abide by the
terms of such proposed consent decree until it is entered and
any order entering such proposed consent decree.
(4) Antitrust laws.--The term ``antitrust laws'' has the
meaning given it in subsection (a) of the first section of the
Clayton Act (15 U.S.C. 12(a)), except that such term includes
the Act of June 19, 1936 (49 Stat. 1526; 15 U.S.C. 13 et seq.),
commonly known as the Robinson-Patman Act, and section 5 of the
Federal Trade Commission Act (15 U.S.C. 45) to the extent that
such section 5 applies to unfair methods of competition.
SEC. 602. PREEMPTION OF LOCAL TAXATION WITH RESPECT TO DIRECT-TO-HOME
SERVICES.
(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 on direct-to-home
satellite service.
(b) Definitions.--For the purposes of this section--
(1) Direct-to-home satellite service.--The term ``direct-to-
home satellite service'' means only programming transmitted or
broadcast by satellite directly to the subscribers' premises
without the use of ground receiving or distribution equipment,
[[Page 110 STAT. 145]]
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.
TITLE VII--MISCELLANEOUS PROVISIONS
SEC. 701. PREVENTION OF UNFAIR BILLING PRACTICES FOR INFORMATION OR
SERVICES PROVIDED OVER TOLL-FREE TELEPHONE CALLS.
(a) Prevention of Unfair Billing Practices.--
(1) In general.--Section 228(c) (47 U.S.C. 228(c)) is
amended--
(A) by striking out subparagraph (C) of paragraph
(7) and inserting in lieu thereof the following:
``(C) the calling party being charged for
information conveyed during the call unless--
``(i) the calling party has a written
agreement (including an agreement transmitted
through electronic medium) that meets the
requirements of paragraph (8); or
``(ii) the calling party is charged for the
information in accordance with paragraph (9);
or'';
(B)(i) by striking ``or'' at the end of subparagraph
(C) of such paragraph;
(ii) by striking the period at the end of
subparagraph (D) of such paragraph and inserting a
semicolon and ``or''; and
(iii) by adding at the end thereof the following:
``(E) the calling party being assessed, by virtue of
being asked to connect or otherwise transfer to a pay-
per-call service, a charge for the call.''; and
[[Page 110 STAT. 146]]
(C) 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 does not meet the
requirements of this paragraph unless the agreement
specifies the material terms and conditions under which
the information is offered and includes--
``(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 one billing cycle
in advance of all future changes in the rates
charged for the information; and
``(vi) the subscriber's choice of payment
method, which may be by direct remit, debit,
prepaid account, phone bill, or credit or calling
card.
``(B) Billing arrangements.--If a subscriber elects,
pursuant to subparagraph (A)(vi), 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 pins to prevent unauthorized use.--A
written agreement does not meet the requirements of this
paragraph unless it--
``(i) includes a unique personal
identification number or other subscriber-specific
identifier and requires a subscriber to use this
number or identifier to obtain access to the
information provided and includes instructions on
its use; and
``(ii) assures that any charges for services
accessed by use of the subscriber's personal
identification number or subscriber-specific
identifier be assessed to subscriber's source of
payment elected pursuant to subparagraph (A)(vi).
``(D) Exceptions.--Notwithstanding paragraph (7)(C),
a written agreement that meets the requirements of this
paragraph is not required--
``(i) for calls utilizing telecommunications
devices for the deaf;
``(ii) for directory services provided by a
common carrier or its affiliate or by a local
exchange carrier or its affiliate; or
``(iii) for any purchase of goods or of
services that are not information services.
[[Page 110 STAT. 147]]
``(E) Termination of service.--On receipt by a
common carrier of a complaint by any person that an
information provider is in violation of the provisions
of this section, a carrier shall--
``(i) promptly investigate the complaint; and
``(ii) if the carrier reasonably determines
that the complaint is valid, it 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.
``(F) Treatment of remedies.--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, debit, charge, 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, debit, charge, 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, debit, charge, or calling
card;
``(D) asks the caller for the 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) Bypass of introductory disclosure message.--The
requirements of paragraph (9) shall not apply to calls from
repeat callers using a bypass mechanism to avoid listening to
the introductory message: Provided, That information providers
shall disable such a bypass mechanism after the institution of
any price increase and for a period of time determined to be
sufficient by the Federal Trade Commission to give callers
adequate and sufficient notice of a price increase.
``(11) 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.''.
(2) <<NOTE: 47 USC 228 note.>> Regulations.--The Federal
Communications Commission shall revise its regulations to comply
with the amendment made by paragraph (1) not later than 180 days
after the date of enactment of this Act.
(3) <<NOTE: 47 USC 228 note.>> Effective date.--The
amendments made by paragraph (1) shall take effect on the date
of enactment of this Act.
(b) Clarification of ``Pay-Per-Call Services''.--
(1) Telephone disclosure and dispute resolution act.--
Section 204(1) of the Telephone Disclosure and Dispute
Resolution Act (15 U.S.C. 5714(1)) is amended to read as
follows:
[[Page 110 STAT. 148]]
``(1) The term `pay-per-call services' has the meaning
provided in section 228(i) of the Communications Act of 1934,
except that the Commission by rule may, notwithstanding
subparagraphs (B) and (C) of section 228(i)(1) of such Act,
extend such definition to other similar services providing audio
information or audio entertainment if the Commission determines
that such services are susceptible to the unfair and deceptive
practices that are prohibited by the rules prescribed pursuant
to section 201(a).''.
(2) Communications act.--Section 228(i)(2) (47 U.S.C.
228(i)(2)) is amended by striking ``or any service the charge
for which is tariffed,''.
SEC. 702. PRIVACY OF CUSTOMER INFORMATION.
Title II is amended by inserting after section 221 (47 U.S.C. 221)
the following new section:
``SEC. 222. <<NOTE: 47 USC 222.>> PRIVACY OF CUSTOMER INFORMATION.
``(a) In General.--Every telecommunications carrier has a duty to
protect the confidentiality of proprietary information of, and relating
to, other telecommunication carriers, equipment manufacturers, and
customers, including telecommunication carriers reselling
telecommunications services provided by a telecommunications carrier.
``(b) Confidentiality of Carrier Information.--A telecommunications
carrier that receives or obtains proprietary information from another
carrier for purposes of providing any telecommunications service shall
use such information only for such purpose, and shall not use such
information for its own marketing efforts.
``(c) Confidentiality of Customer Proprietary Network Information.--
``(1) Privacy requirements for telecommunications
carriers.--Except as required by law or with the approval of the
customer, a telecommunications carrier that receives or obtains
customer proprietary network information by virtue of its
provision of a telecommunications service shall only use,
disclose, or permit access to individually identifiable customer
proprietary network information in its provision of (A) the
telecommunications service from which such information is
derived, or (B) services necessary to, or used in, the provision
of such telecommunications service, including the publishing of
directories.
``(2) Disclosure on request by customers.--A
telecommunications carrier shall disclose customer proprietary
network information, upon affirmative written request by the
customer, to any person designated by the customer.
``(3) Aggregate customer information.--A telecommunications
carrier that receives or obtains customer proprietary network
information by virtue of its provision of a telecommunications
service may use, disclose, or permit access to aggregate
customer information other than for the purposes described in
paragraph (1). A local exchange carrier may use, disclose, or
permit access to aggregate customer information other than for
purposes described in paragraph (1) only if it provides such
aggregate information to other carriers or persons on reasonable
and nondiscriminatory terms and conditions upon reasonable
request therefor.
[[Page 110 STAT. 149]]
``(d) Exceptions.--Nothing in this section prohibits a
telecommunications carrier from using, disclosing, or permitting access
to customer proprietary network information obtained from its customers,
either directly or indirectly through its agents--
``(1) to initiate, render, bill, and collect for
telecommunications services;
``(2) to protect the rights or property of the carrier, or
to protect users of those services and other carriers from
fraudulent, abusive, or unlawful use of, or subscription to,
such services; or
``(3) 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.
``(e) Subscriber List Information.--Notwithstanding subsections (b),
(c), and (d), a telecommunications carrier that provides telephone
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.
``(f) Definitions.--As used in this section:
``(1) Customer proprietary network information.--The term
`customer proprietary network information' means--
``(A) information that relates to the quantity,
technical configuration, type, destination, and amount
of use of a telecommunications service subscribed to by
any customer of a telecommunications carrier, and that
is made available to the carrier by the customer solely
by virtue of the carrier-customer relationship; and
``(B) information contained in the bills pertaining
to telephone exchange service or telephone toll service
received by a customer of a carrier;
except that such term does not include subscriber list
information.
``(2) Aggregate information.--The term `aggregate customer
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.
``(3) 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.''.
SEC. 703. POLE ATTACHMENTS.
Section 224 (47 U.S.C. 224) is amended--
(1) in subsection (a)(1), by striking the first sentence and
inserting the following: ``The term `utility' means any person
who is a local exchange carrier or an electric, gas, water,
[[Page 110 STAT. 150]]
steam, or other public utility, and who owns or controls poles,
ducts, conduits, or rights-of-way used, in whole or in part, for
any wire communications.'';
(2) in subsection (a)(4), by inserting after ``system'' the
following: ``or provider of telecommunications service'';
(3) by inserting after subsection (a)(4) the following:
``(5) For purposes of this section, the term
`telecommunications carrier' (as defined in section 3 of this
Act) does not include any incumbent local exchange carrier as
defined in section 251(h).'';
(4) by inserting after ``conditions'' in subsection (c)(1) a
comma and the following: ``or access to poles, ducts, conduits,
and rights-of-way as provided in subsection (f),'';
(5) in subsection (c)(2)(B), by striking ``cable television
services'' and inserting ``the services offered via such
attachments'';
(6) by inserting after subsection (d)(2) the following:
``(3) <<NOTE: Applicability.>> This subsection shall apply to the
rate for any pole attachment used by a cable television system solely to
provide cable service. Until the effective date of the regulations
required under subsection (e), this subsection shall also apply to the
rate for any pole attachment used by a cable system or any
telecommunications carrier (to the extent such carrier is not a party to
a pole attachment agreement) to provide any telecommunications
service.''; and
(7) by adding at the end thereof the following:
``(e)(1) <<NOTE: Regulations.>> The Commission shall, no later than
2 years after the date of enactment of the Telecommunications Act of
1996, prescribe regulations in accordance with this subsection to govern
the charges for pole attachments used by telecommunications carriers to
provide telecommunications services, when the parties fail to resolve a
dispute over such charges. Such regulations shall ensure that a utility
charges just, reasonable, and nondiscriminatory rates for pole
attachments.
``(2) A utility shall apportion the cost of providing space on a
pole, duct, conduit, or right-of-way other than the usable space among
entities so that such apportionment equals two-thirds of the costs of
providing space other than the usable space that would be allocated to
such entity under an equal apportionment of such costs among all
attaching entities.
``(3) A utility shall apportion the cost of providing usable space
among all entities according to the percentage of usable space required
for each entity.
``(4) <<NOTE: Effective date.>> The regulations required under
paragraph (1) shall become effective 5 years after the date of enactment
of the Telecommunications Act of 1996. Any increase in the rates for
pole attachments that result from the adoption of the regulations
required by this subsection shall be phased in equal annual increments
over a period of 5 years beginning on the effective date of such
regulations.
``(f)(1) A utility shall provide a cable television system or any
telecommunications carrier with nondiscriminatory access to any pole,
duct, conduit, or right-of-way owned or controlled by it.
``(2) Notwithstanding paragraph (1), a utility providing electric
service may deny a cable television system or any telecommunications
carrier access to its poles, ducts, conduits, or rights-of-way, on a
non-discriminatory basis where there is insufficient capacity and for
reasons of safety, reliability and generally applicable engineering
purposes.
[[Page 110 STAT. 151]]
``(g) A utility that engages in the provision of telecommunications
services or cable services shall impute to its costs of providing such
services (and charge any affiliate, subsidiary, or associate company
engaged in the provision of such services) an equal amount to the pole
attachment rate for which such company would be liable under this
section.
``(h) Whenever the owner of a pole, duct, conduit, or right-of-way
intends to modify or alter such pole, duct, 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
pole, duct, conduit, or right-of-way accessible.
``(i) An entity that obtains an attachment to a pole, conduit, or
right-of-way shall not be required to bear any of the costs of
rearranging or replacing its attachment, if such rearrangement or
replacement is required as a result of an additional attachment or the
modification of an existing attachment sought by any other entity
(including the owner of such pole, duct, conduit, or right-of-way).''.
SEC. 704. FACILITIES SITING; RADIO FREQUENCY EMISSION STANDARDS.
(a) National Wireless Telecommunications Siting Policy.--Section
332(c) (47 U.S.C. 332(c)) is amended by adding at the end the following
new paragraph:
``(7) Preservation of local zoning authority.--
``(A) General authority.--Except as provided in this
paragraph, nothing in this Act shall limit or affect the
authority of a State or local government or
instrumentality thereof over decisions regarding the
placement, construction, and modification of personal
wireless service facilities.
``(B) Limitations.--
``(i) The regulation of the placement,
construction, and modification of personal
wireless service facilities by any State or local
government or instrumentality thereof--
``(I) shall not unreasonably
discriminate among providers of
functionally equivalent services; and
``(II) shall not prohibit or have
the effect of prohibiting the provision
of personal wireless services.
``(ii) A State or local government or
instrumentality thereof shall act on any request
for authorization to place, construct, or modify
personal wireless service facilities within a
reasonable period of time after the request is
duly filed with such government or
instrumentality, taking into account the nature
and scope of such request.
``(iii) <<NOTE: Records.>> Any decision by a
State or local government or instrumentality
thereof to deny a request to place, construct, or
modify personal wireless service facilities shall
be in writing and supported by substantial
evidence contained in a written record.
[[Page 110 STAT. 152]]
``(iv) No State or local government or
instrumentality thereof may regulate the
placement, construction, and modification of
personal wireless service 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.
``(v) Any person adversely affected by any
final action or failure to act by a State or local
government or any instrumentality thereof that is
inconsistent with this subparagraph may, within 30
days after such action or failure to act, commence
an action in any court of competent
jurisdiction. <<NOTE: Courts.>> The court shall
hear and decide such action on an expedited basis.
Any person adversely affected by an act or failure
to act by a State or local government or any
instrumentality thereof that is inconsistent with
clause (iv) may petition the Commission for
relief.
``(C) Definitions.--For purposes of this paragraph--
``(i) the term `personal wireless services'
means commercial mobile services, unlicensed
wireless services, and common carrier wireless
exchange access services;
``(ii) the term `personal wireless service
facilities' means facilities for the provision of
personal wireless services; and
``(iii) the term `unlicensed wireless service'
means the offering of telecommunications services
using duly authorized devices which do not require
individual licenses, but does not mean the
provision of direct-to-home satellite services (as
defined in section 303(v)).''.
(b) <<NOTE: Rules.>> 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) <<NOTE: President. 47 USC 332 note.>> Availability of
Property.--Within 180 days of the enactment of this Act, the President
or his designee 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 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.
[[Page 110 STAT. 153]]
SEC. 705. MOBILE SERVICES DIRECT ACCESS TO LONG DISTANCE CARRIERS.
Section 332(c) (47 U.S.C. 332(c)) is amended by adding at the end
the following new paragraph:
``(8) Mobile services access.--A person engaged in the
provision of commercial mobile services, insofar as such person
is so engaged, shall not be required to provide equal access to
common carriers for the provision of telephone toll services. If
the Commission <<NOTE: Regulations.>> determines that
subscribers to such services are denied access to the provider
of telephone toll services of the subscribers' choice, and that
such denial is contrary to the public interest, convenience, and
necessity, then the Commission shall prescribe regulations to
afford subscribers unblocked access to the provider of telephone
toll services of the subscribers' choice through the use of a
carrier identification code assigned to such provider or other
mechanism. The requirements for unblocking shall not apply to
mobile satellite services unless the Commission finds it to be
in the public interest to apply such requirements to such
services.''.
SEC. 706. <<NOTE: 47 USC 157 note.>> ADVANCED TELECOMMUNICATIONS
INCENTIVES.
(a) In General.--The Commission and each State commission with
regulatory jurisdiction over telecommunications services shall encourage
the deployment on a reasonable and timely basis of advanced
telecommunications capability to all Americans (including, in
particular, elementary and secondary schools and classrooms) by
utilizing, in a manner consistent with the public interest, convenience,
and necessity, price cap regulation, regulatory forbearance, measures
that promote competition in the local telecommunications market, or
other regulating methods that remove barriers to infrastructure
investment.
(b) Inquiry.--The Commission shall, within 30 months after the date
of enactment of this Act, and regularly thereafter, initiate a notice of
inquiry concerning the availability of advanced telecommunications
capability to all Americans (including, in particular, elementary and
secondary schools and classrooms) and shall complete the inquiry within
180 days after its initiation. In the inquiry, the Commission shall
determine whether advanced telecommunications capability is being
deployed to all Americans in a reasonable and timely fashion. If the
Commission's determination is negative, it shall take immediate action
to accelerate deployment of such capability by removing barriers to
infrastructure investment and by promoting competition in the
telecommunications market.
(c) Definitions.--For purposes of this subsection:
(1) Advanced telecommunications capability.--The term
``advanced telecommunications capability'' is defined, without
regard to any transmission media or technology, as high-speed,
switched, broadband telecommunications capability that enables
users to originate and receive high-quality voice, data,
graphics, and video telecommunications using any technology.
(2) Elementary and secondary schools.--The term ``elementary
and secondary schools'' means elementary and secondary schools,
as defined in paragraphs (14) and (25), respectively, of section
14101 of the Elementary and Secondary Education Act of 1965 (20
U.S.C. 8801).
[[Page 110 STAT. 154]]
SEC. 707. TELECOMMUNICATIONS DEVELOPMENT FUND.
(a) Deposit and Use of Auction Escrow Accounts.--Section 309(j)(8)
(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
714 of this Act.''.
(b) Establishment and Operation of Fund.--Title VII is amended by
inserting after section 713 (as added by section 305) the following new
section:
``SEC. 714. <<NOTE: 47 USC 614.>> 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.
[[Page 110 STAT. 155]]
``(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 advice to eligible small
businesses;
``(3) expenses for the administration and management of the
Fund (including salaries, expenses, and the rental or purchase
of office space for 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 in accordance
[[Page 110 STAT. 156]]
with the requirements of the Federal Credit Reform Act of 1990 (2 U.S.C.
661 et seq.) and any other applicable law to an 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 (d)(2) shall be disbursed upon such terms and conditions
(including conditions relating to the time or times of repayment) as are
specified in any appropriations Act providing such advances.
``(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,
for the purposes of the Fund;
``(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
[[Page 110 STAT. 157]]
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 broadcasting, telecommunications, cable, computer, data
transmission, software, programming, advanced messaging, and
electronics businesses.''.
SEC. 708. NATIONAL EDUCATION TECHNOLOGY FUNDING CORPORATION.
(a) Findings; Purpose.--
(1) Findings.--The Congress finds as follows:
(A) Corporation.--There has been established in the
District of Columbia a private, nonprofit corporation
known as the National Education Technology Funding
Corporation which is not an agency or independent
establishment of the Federal Government.
(B) Board of directors.--The Corporation is governed
by a Board of Directors, as prescribed in the
Corporation's articles of incorporation, consisting of
15 members, of which--
(i) five members are representative of public
agencies representative of schools and public
libraries;
(ii) five members are representative of State
government, including persons knowledgeable about
State finance, technology and education; and
(iii) five members are representative of the
private sector, with expertise in network
technology, finance and management.
(C) Corporate purposes.--The purposes of the
Corporation, as set forth in its articles of
incorporation, are--
(i) to leverage resources and stimulate
private investment in education technology
infrastructure;
(ii) to designate State education technology
agencies to receive loans, grants or other forms
of assistance from the Corporation;
(iii) to establish criteria for encouraging
States to--
(I) create, maintain, utilize and
upgrade interactive high capacity
networks capable of providing
[[Page 110 STAT. 158]]
audio, visual and data communications
for elementary schools, secondary
schools and public libraries;
(II) distribute resources to assure
equitable aid to all elementary schools
and secondary schools in the State and
achieve universal access to network
technology; and
(III) upgrade the delivery and
development of learning through
innovative technology-based
instructional tools and applications;
(iv) to provide loans, grants and other forms
of assistance to State education technology
agencies, with due regard for providing a fair
balance among types of school districts and public
libraries assisted and the disparate needs of such
districts and libraries;
(v) to leverage resources to provide maximum
aid to elementary schools, secondary schools and
public libraries; and
(vi) to encourage the development of education
telecommunications and information technologies
through public-private ventures, by serving as a
clearinghouse for information on new education
technologies, and by providing technical
assistance, including assistance to States, if
needed, to establish State education technology
agencies.
(2) Purpose.--The purpose of this section is to recognize
the Corporation as a nonprofit corporation operating under the
laws of the District of Columbia, and to provide authority for
Federal departments and agencies to provide assistance to the
Corporation.
(b) Definitions.--For the purpose of this section--
(1) the term ``Corporation'' means the National Education
Technology Funding Corporation described in subsection
(a)(1)(A);
(2) the terms ``elementary school'' and ``secondary school''
have the same meanings given such terms in section 14101 of the
Elementary and Secondary Education Act of 1965; and
(3) the term ``public library'' has the same meaning given
such term in section 3 of the Library Services and Construction
Act.
(c) Assistance for Education Technology Purposes.--
(1) Receipt by corporation.--Notwithstanding any other
provision of law, in order to carry out the corporate purposes
described in subsection (a)(1)(C), the Corporation shall be
eligible to receive discretionary grants, contracts, gifts,
contributions, or technical assistance from any Federal
department or agency, to the extent otherwise permitted by law.
(2) Agreement.--In order to receive any assistance described
in paragraph (1) the Corporation shall enter into an agreement
with the Federal department or agency providing such assistance,
under which the Corporation agrees--
(A) to use such assistance to provide funding and
technical assistance only for activities which the Board
of Directors of the Corporation determines are
consistent with the corporate purposes described in
subsection (a)(1)(C);
(B) to review the activities of State education
technology agencies and other entities receiving
assistance from
[[Page 110 STAT. 159]]
the Corporation to assure that the corporate purposes
described in subsection (a)(1)(C) are carried out;
(C) that no part of the assets of the Corporation
shall accrue to the benefit of any member of the Board
of Directors of the Corporation, any officer or employee
of the Corporation, or any other individual, except as
salary or reasonable compensation for services;
(D) that the Board of Directors of the Corporation
will adopt policies and procedures to prevent conflicts
of interest;
(E) to maintain a Board of Directors of the
Corporation consistent with subsection (a)(1)(B);
(F) that the Corporation, and any entity receiving
the assistance from the Corporation, are subject to the
appropriate oversight procedures of the Congress; and
(G) to comply with--
(i) the audit requirements described in
subsection (d); and
(ii) the reporting and testimony requirements
described in subsection (e).
(3) Construction.--Nothing in this section shall be
construed to establish the Corporation as an agency or
independent establishment of the Federal Government, or to
establish the members of the Board of Directors of the
Corporation, or the officers and employees of the Corporation,
as officers or employees of the Federal Government.
(d) Audits.--
(1) Audits by independent certified public accountants.--
(A) In general.--The Corporation's financial
statements shall be audited annually in accordance with
generally accepted auditing standards by independent
certified public accountants who are certified by a
regulatory authority of a State or other political
subdivision of the United States. The audits shall be
conducted at the place or places where the accounts of
the Corporation are normally kept. All books, accounts,
financial records, reports, files, and all other papers,
things, or property belonging to or in use by the
Corporation and necessary to facilitate the audit shall
be made available to the person or persons conducting
the audits, and full facilities for verifying
transactions with the balances or securities held by
depositories, fiscal agents, and custodians shall be
afforded to such person or persons.
(B) Reporting requirements.--The report of each
annual audit described in subparagraph (A) shall be
included in the annual report required by subsection
(e)(1).
(2) Recordkeeping requirements; audit and examination of
books.--
(A) Recordkeeping requirements.--The Corporation
shall ensure that each recipient of assistance from the
Corporation keeps--
(i) separate accounts with respect to such
assistance;
(ii) such records as may be reasonably
necessary to fully disclose--
(I) the amount and the disposition
by such recipient of the proceeds of
such assistance;
[[Page 110 STAT. 160]]
(II) the total cost of the project
or undertaking in connection with which
such assistance is given or used; and
(III) the amount and nature of that
portion of the cost of the project or
undertaking supplied by other sources;
and
(iii) such other records as will facilitate an
effective audit.
(B) Audit and examination of books.--The Corporation
shall ensure that the Corporation, or any of the
Corporation's duly authorized representatives, shall
have access for the purpose of audit and examination to
any books, documents, papers, and records of any
recipient of assistance from the Corporation that are
pertinent to such assistance. Representatives of the
Comptroller General shall also have such access for such
purpose.
(e) Annual Report; Testimony to the Congress.--
(1) <<NOTE: Publication.>> Annual report.--Not later than
April 30 of each year, the Corporation shall publish an annual
report for the preceding fiscal year and submit that report to
the President and the Congress. The report shall include a
comprehensive and detailed evaluation of the Corporation's
operations, activities, financial condition, and accomplishments
under this section and may include such recommendations as the
Corporation deems appropriate.
(2) Testimony before congress.--The members of the Board of
Directors, and officers, of the Corporation shall be available
to testify before appropriate committees of the Congress with
respect to the report described in paragraph (1), the report of
any audit made by the Comptroller General pursuant to this
section, or any other matter which any such committee may
determine appropriate.
SEC. 709. REPORT ON THE USE OF ADVANCED TELECOMMUNICATIONS SERVICES FOR
MEDICAL PURPOSES.
The Secretary of Commerce, 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 by
January 31, 1997.
SEC. 710. AUTHORIZATION OF APPROPRIATIONS.
(a) <<NOTE: 47 USC 156 note.>> 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) <<NOTE: 47 USC 156 note.>> Effect on Fees.--For the purposes of
section 9(b)(2) (47 U.S.C. 159(b)(2)), additional amounts appropriated
pursuant to subsection (a) shall be construed to be changes in the
amounts appro
[[Page 110 STAT. 161]]
priated for the performance of activities described in section 9(a) of
the Communications Act of 1934.
(c) Funding Availability.--Section 309(j)(8)(B) (47 U.S.C.
309(j)(8)(B)) is amended by adding at the end the following new
sentence: ``Such offsetting collections are authorized to remain
available until expended.''.
Approved February 8, 1996.
LEGISLATIVE HISTORY--S. 652 (H.R. 1555):
---------------------------------------------------------------------------
HOUSE REPORTS: No. 104-204, Pt. 1 accompanying H.R. 1555 (Comm. on
Commerce).
SENATE REPORTS: Nos. 104-23 (Comm. on Commerce, Science, and
Transportation) and 104-230 (Comm. of Conference).
CONGRESSIONAL RECORD:
Vol. 141 (1995):
June 7, 8, 12-15, considered and
passed Senate.
Aug. 2, 4, H.R. 1555 considered and
passed House.
Oct. 12, S. 652 considered and
passed House, amended, in lieu
of H.R. 1555.
Vol. 142 (1996):
Feb. 1, House and Senate agreed to
conference report.
WEEKLY COMPILATION OF PRESIDENTIAL DOCUMENTS, Vol. 32 (1996):
Feb. 8, Presidential remarks and statement.
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