FILE s652.es
          S 652 ES
          104th CONGRESS
          1st Session
                                         AN ACT
          To provide for a pro-competitive, de-regulatory national policy
          framework designed to accelerate rapidly private sector deployment
          of advanced telecommunications and information technologies and
          services to all Americans by opening all telecommunications markets
          to competition, and for other purposes.
            Be it enacted by the Senate and House of Representatives of the
          United States of America in Congress assembled,
          SECTION 1. SHORT TITLE.
            This Act may be cited as the `Telecommunications Competition and
          Deregulation Act of 1995'.
          SEC. 2. TABLE OF CONTENTS.
            The table of contents for this Act is as follows:
          Sec. 1. Short title.
          Sec. 2. Table of contents.
          Sec. 3. Purpose.
          Sec. 4. Goals.
          Sec. 5. Findings.
          Sec. 6. Amendment of Communications Act of 1934.
          Sec. 7. Effect on other law.
          Sec. 8. Definitions.
                           TITLE I--TRANSITION TO COMPETITION
          Sec. 101. Interconnection requirements.
          Sec. 102. Separate affiliate and safeguard requirements.
          Sec. 103. Universal service.
          Sec. 104. Essential telecommunications carriers.
          Sec. 105. Foreign investment and ownership reform.
          Sec. 106. Infrastructure sharing.
          Sec. 107. Coordination for telecommunications network-level
              interoperability.
                    TITLE II--REMOVAL OF RESTRICTIONS TO COMPETITION
                          SUBTITLE A--REMOVAL OF RESTRICTIONS.
          Sec. 201. Removal of entry barriers.
          Sec. 202. Elimination of cable and telephone company 
              cross-ownership restriction.
          Sec. 203. Cable Act reform.
          Sec. 204. Pole attachments.
          Sec. 205. Entry by utility companies.
          Sec. 206. Broadcast reform.
               SUBTITLE B--TERMINATION OF MODIFICATION OF FINAL JUDGMENT.
          Sec. 221. Removal of long distance restrictions.
          Sec. 222. Removal of manufacturing restrictions.
          Sec. 223. Existing activities.
          Sec. 224. Enforcement.
          Sec. 225. Alarm monitoring services.
          Sec. 226. Nonapplicability of Modification of Final Judgment.
                             TITLE III--AN END TO REGULATION
          Sec. 301. Transition to competitive pricing.
          Sec. 302. Biennial review of regulations; elimination of 
              unnecessary regulations and functions.
          Sec. 303. Regulatory forbearance.
          Sec. 304. Advanced telecommunications incentives.
          Sec. 305. Regulatory parity.
          Sec. 306. Automated ship distress and safety systems.
          Sec. 307. Telecommunications numbering administration.
          Sec. 308. Access by persons with disabilities.
          Sec. 309. Rural markets.
          Sec. 310. Telecommunications services for health care providers for
              rural areas, educational providers, and libraries.
          Sec. 311. Provision of payphone service and telemessaging service.
          Sec. 312. Direct Broadcast Satellite.
                TITLE IV--OBSCENE, HARASSING, AND WRONGFUL UTILIZATION OF
                              TELECOMMUNICATIONS FACILITIES
          Sec. 401. Short title.
          Sec. 402. Obscene or harassing use of telecommunications facilities
              under the Communications Act of 1934.
          Sec. 403. Obscene programming on cable television.
          Sec. 404. Broadcasting obscene language on radio.
          Sec. 405. Separability.
          Sec. 406. Additional prohibition on billing for toll-free telephone
              calls.
          Sec. 407. Scrambling of cable channels for nonsubscribers.
          Sec. 408. Scrambling of sexually explicit adult video service
              programming.
          Sec. 409. Cable operator refusal to carry certain programs.
          Sec. 410. Restrictions on access by children to obscene and 
              indecent material on electronic information networks open to 
              the public.
                         TITLE V--PARENTAL CHOICE IN TELEVISION
          Sec. 501. Short title.
          Sec. 502. Findings.
          Sec. 503. Rating code for violence and other objectionable content
              on television.
          Sec. 504. Requirement for manufacture of televisions that block
              programs.
          Sec. 505. Shipping or importing of televisions that block programs.
               TITLE VI--NATIONAL EDUCATION TECHNOLOGY FUNDING CORPORATION
          Sec. 601. Short title.
          Sec. 602. Findings; purpose.
          Sec. 603. Definitions.
          Sec. 604. Assistance for educational technology purposes.
          Sec. 605. Audits.
          Sec. 606. Annual report; testimony to the Congress.
                           TITLE VII--MISCELLANEOUS PROVISIONS
          Sec. 701. Spectrum auctions.
          Sec. 702. Renewed efforts to regulate violent programming.
          Sec. 703. Prevention of unfair billing practices for information or
              services provided over toll-free telephone calls.
          Sec. 704. Disclosure of certain records for investigations of
              telemarketing fraud.
          Sec. 705. Telecommuting public information program.
          Sec. 706. Authority to acquire cable systems.
          SEC. 3. PURPOSE.
            It is the purpose of this Act to increase competition in all
          telecommunications markets and provide for an orderly transition
          from regulated markets to competitive and deregulated
          telecommunications markets consistent with the public interest,
          convenience, and necessity.
          SEC. 4. GOALS.
            This Act is intended to establish a national policy framework
          designed to accelerate rapidly the private sector deployment of
          advanced telecommunications and information technologies and
          services to all Americans by opening all telecommunications markets
          to competition, and to meet the following goals:
                (1) To promote and encourage advanced telecommunications
              networks, capable of enabling users to originate and receive
              affordable, high-quality voice, data, image, graphic, and video
              telecommunications services.
                (2) To improve international competitiveness markedly.
                (3) To spur economic growth, create jobs, and increase
              productivity.
                (4) To deliver a better quality of life through the
              preservation and advancement of universal service to allow the
              more efficient delivery of educational, health care, and other
              social services.
          SEC. 5. FINDINGS.
            The Congress makes the following findings:
                (1) Competition, not regulation, is the best way to spur
              innovation and the development of new services.  A competitive
              market place is the most efficient way to lower prices and
              increase value for consumers. In furthering the principle of
              open and full competition in all telecommunications markets,
              however, it must be recognized that some markets are more open
              than others.
                (2) Local telephone service is predominantly a monopoly
              service.  Although business customers in metropolitan areas may
              have alternative providers for exchange access service,
              consumers do not have a choice of local telephone service.  
              Some States have begun to open local telephone markets to
              competition.  A national policy framework is needed to
              accelerate the process.
                (3) Because of their monopoly status, local telephone
              companies and the Bell operating companies have been prevented
              from competing in certain markets.  It is time to eliminate
              these restrictions.  Nonetheless, transition rules designed to
              open monopoly markets to competition must be in place before
              certain restrictions are lifted.
                (4) Transition rules must be truly transitional, not
              protectionism for certain industry segments or artificial
              impediments to increased competition in all markets.  Where
              possible, transition rules should create investment incentives
              through increased competition.  Regulatory safeguards should be
              adopted only where competitive conditions would not prevent
              anticompetitive behavior.
                (5) More competitive American telecommunications markets will
              promote United States technological advances, domestic job and
              investment opportunities, national competitiveness, sustained
              economic development, and improved quality of American life 
              more effectively than regulation.
                (6) Congress should establish clear statutory guidelines,
              standards, and time frames to facilitate more effective
              communications competition and, by so doing, will reduce
              business and customer uncertainty, lessen regulatory processes,
              court appeals, and litigation, and thus encourage the business
              community to focus more on competing in the domestic and
              international communications marketplace.
                (7) Where competitive markets are demonstrably inadequate to
              safeguard important public policy goals, such as the continued
              universal availability of telecommunications services at
              reasonable and affordable prices, particularly in rural 
              America, Congress should establish workable regulatory
              procedures to advance those goals, provided that in any
              proceeding undertaken to ensure universal availability,
              regulators shall seek to choose the most procompetitive and
              least burdensome alternative.
                (8) Competitive communications markets, safeguarded by
              effective Federal and State antitrust enforcement, and strong
              economic growth in the United States which such markets will
              foster are the most effective means of assuring that all
              segments of the American public command access to advanced
              telecommunications technologies.
                (9) Achieving full and fair competition requires strict 
              parity of marketplace opportunities and responsibilities on the
              part of incumbent telecommunications service providers as well
              as new entrants into the telecommunications marketplace,
              provided that any responsibilities placed on providers should 
              be the minimum required to advance a clearly defined public
              policy goal.
                (10) Congress should not cede its constitutional
              responsibility regarding interstate and foreign commerce in
              communications to the Judiciary through the establishment of
              procedures which will encourage or necessitate judicial
              interpretation or intervention into the communications
              marketplace.
                (11) Ensuring that all Americans, regardless of where they 
              may work, live, or visit, ultimately have comparable access to
              the full benefits of competitive communications markets 
              requires Federal and State authorities to work together
              affirmatively to minimize and remove unnecessary institutional
              and regulatory barriers to new entry and competition.
                (12) Effectively competitive communications markets will
              ensure customers the widest possible choice of services and
              equipment, tailored to individual desires and needs, and at
              prices they are willing to pay.
                (13) Investment in and deployment of existing and future
              advanced, multipurpose technologies will best be fostered by
              minimizing government limitations on the commercial use of 
              those technologies.
                (14) The efficient development of competitive United States
              communications markets will be furthered by policies which aim
              at ensuring reciprocal opening of international investment
              opportunities.
          SEC. 6.  AMENDMENT OF COMMUNICATIONS ACT OF 1934.
            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. 7. EFFECT ON OTHER LAW.
            (a) Antitrust Laws: Except as provided in subsections (b) and 
          (c), nothing in this Act shall be construed to modify, impair, or
          supersede the applicability of any antitrust law.
            (b) Modification of Final Judgment: This Act shall supersede the
          Modification of Final Judgment to the extent that it is 
          inconsistent with this Act.
            (c) Transfer of MFJ: After the date of enactment of this Act, the
          Commission shall administer any provision of the Modification of
          Final Judgment not overridden or superseded by this Act. The
          District Court for the District of Columbia shall have no further
          jurisdiction over any provision of the Modification of Final
          Judgment administered by the Commission under this Act or the
          Communications Act of 1934. The Commission may, consistent with 
          this Act (and the amendments made by this Act), modify any 
          provision of the Modification of Final Judgment that it administers.
            (d) GTE Consent Decree: This Act shall supersede the provisions 
          of the Final Judgment entered in United States v. GTE Corp., No.
          83-1298 (D.C. D.C.), and such Final Judgment shall not be enforced
          after the effective date of this Act.
          SEC. 8. DEFINITIONS.
            (a) Terms Used In This Act: As used in this Act--
                (1) Commission: The term `Commission' means the Federal
              Communications Commission.
                (2) Modification of final judgment: The term `Modification of
              Final Judgment' means the decree entered on August 24, 1982, in
              United States v. Western Electric Civil Action No. 82-0192
              (United States District Court, District of Columbia), and
              includes any judgment or order with respect to such action
              entered on or after August 24, 1982, and before the date of
              enactment of this Act.
                (3) GTE consent decree: The term `GTE Consent Decree' means
              the order entered on December 21, 1984, as restated January 11,
              1985, in United States v. GTE Corporation, Civil Action No.
              83-1298 (United States District Court, District of Columbia),
              and includes any judgment or order with respect to such action
              entered on or after January 11, 1985, and before the date of
              enactment of this Act.
                (4) Integrated telecommunications service provider: The term
              `integrated telecommunications service provider' means any
              person engaged in the provision of multiple services, such as
              voice, data, image, graphics, and video services, which make
              common use of all or part of the same transmission facilities,
              switches, signalling, or control devices.
            (b) Terms Used in the Communications Act of 1934: Section 3 (47
          U.S.C. 153) is amended by adding at the end thereof the following:
            `(gg) `Modification of Final Judgment' means the decree entered 
          on August 24, 1982, in United States v. Western Electric Civil
          Action No. 82-0192 (United States District Court, District of
          Columbia), and includes any judgment or order with respect to such
          action entered on or after August 24, 1982, and before the date of
          enactment of the Telecommunications Competition and Deregulation 
          Act of 1995.
            `(hh) `Bell operating company' means any company listed in
          appendix A of the Modification of Final Judgment to the extent such
          company provides telephone exchange service or exchange access
          service, and includes any successor or assign of any such company,
          but does not include any affiliate of such company.
            `(ii) `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.
            `(jj) `Telecommunications Act of 1995' means the
          Telecommunications Competition and Deregulation Act of 1995.
            `(kk) `Local exchange carrier' means a provider of telephone
          exchange service or exchange access service.
            `(ll) `Telecommunications' means the transmission, between or
          among points specified by the user, of information of the user's
          choosing, including voice, data, image, graphics, and video, 
          without change in the form or content of the information, as sent
          and received, with or without benefit of any closed transmission
          medium.
            `(mm) `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 to transmit the
          telecommunications service.
            `(nn) `Telecommunications carrier' means any provider of
          telecommunications services, except that such term does not include
          hotels, motels, hospitals, and other aggregators of
          telecommunications services (as defined in section 226).  A
          telecommunications carrier shall only be treated as a common 
          carrier under this Act to the extent that it is engaged in 
          providing telecommunications services for voice, data, image,
          graphics, or video that it does not own, control, or select, except
          that the Commission shall continue to determine whether the
          provision of fixed and mobile satellite service shall be treated as
          common carriage.
            `(oo) `Telecommunications 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.
            `(pp) `Information service' means the offering of services that--
                `(1) employ computer processing applications that act on the
              format, content, code, protocol, or similar aspects of the
              subscriber's transmitted information;
                `(2) provide the subscriber additional, different, or
              restructured information; or
                `(3) involve subscriber interaction with stored information.
            `(qq) `Cable service' means cable service as defined in section
          602.
            `(rr) `Rural telephone company' means a telecommunications 
          carrier operating entity to the extent that such entity provides
          telephone exchange service, including access service subject to 
          part 69 of the Commission's rules (47 C.F.R. 69.1 et seq.), to--
                `(1) any service area that does not include either--
                    `(A) any incorporated place of 10,000 inhabitants or 
                  more, or any part thereof, based on the most recent
                  population statistics of the Bureau of the Census; or
                    `(B) any territory, incorporated or unincorporated,
                  included in an urbanized area, as defined by the Bureau of
                  the Census as of January 1, 1995; or
                `(2) fewer than 100,000 access lines within a State.
            `(ss) `Service area' means a geographic area established by the
          Commission and the States 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.
            `(tt) `LATA' means a local access and transport area as defined 
          in United States v. Western Electric Co., 569 F. Supp. 990 (U. S.
          District Court, District of Columbia) and subsequent judicial 
          orders relating thereto, except that, with respect to commercial
          mobile services, the term `LATA' means the geographic areas defined
          or used by the Commission  in issuing licenses for such services:
          Provided however, That in the case of a Bell operating company
          cellular affiliate, such geographic area shall be no smaller than
          the LATA area for such affiliate on the date of enactment of the
          Telecommunications Act of 1995.'.
                           TITLE I--TRANSITION TO COMPETITION
          SEC. 101. INTERCONNECTION REQUIREMENTS.
            (a) Required Interconnection: Title II (47 U.S.C. 201 et seq.) is
          amended by inserting after section 228 the following:
                       `PART II--COMPETITION IN TELECOMMUNICATIONS
          `SEC. 251. INTERCONNECTION.
            `(a) Duty to Provide Interconnection: 
                `(1) In general: A local exchange carrier, or class of local
              exchange carriers, determined by the Commission to have market
              power in providing telephone exchange service or exchange 
              access service has a duty under this Act, upon request--
                    `(A) to enter into good faith negotiations with any
                  telecommunications carrier requesting interconnection
                  between the facilities and equipment of the requesting
                  telecommunications carrier and the carrier, or class of
                  carriers, of which the request was made for the purpose of
                  permitting the telecommunications carrier to provide
                  telephone exchange or exchange access service; and
                    `(B) to provide such interconnection, at rates that are
                  reasonable and nondiscriminatory, according to the terms of
                  the agreement and in accordance with the requirements of
                  this section.
                `(2) Initiation: A local exchange carrier, or class of
              carriers, described in paragraph (1) shall commence good faith
              negotiations to conclude an agreement, whether through
              negotiation under subsection (c) or arbitration or intervention
              under subsection (d), within 15 days after receiving a request
              from any telecommunications carrier seeking to provide 
              telephone exchange or exchange access service. Nothing in this
              Act shall prohibit multilateral negotiations between or among a
              local exchange carrier or class of carriers and a
              telecommunications carrier or class of carriers seeking
              interconnection under subsection (c) or subsection (d). At the
              request of any of the parties to a negotiation, a State may
              participate in the negotiation of any portion of an agreement
              under subsection (c).
                `(3) Market power: For the purpose of determining whether a
              carrier has market power under paragraph (1), the relevant
              market shall include all providers of telephone exchange or
              exchange access services in a local area, regardless of the
              technology used by any such provider.
            `(b) Minimum Standards: An interconnection agreement entered into
          under this section shall, if requested by a telecommunications
          carrier requesting interconnection, provide for--
                `(1) nondiscriminatory access on an unbundled basis to the
              network functions and services of the local exchange carrier's
              telecommunications network (including switching software, to 
              the extent defined in implementing regulations by the
              Commission);
                `(2) nondiscriminatory access on an unbundled basis to any of
              the local exchange carrier's telecommunications facilities and
              information, including databases and signaling, necessary to 
              the transmission and routing of any telephone exchange service
              or exchange access service and the interoperability of both
              carriers' networks;
                `(3) interconnection to the local exchange carrier's
              telecommunications facilities and services at any technically
              feasible point within the carrier's network;
                `(4) interconnection that is at least equal in type, quality,
              and price (on a per unit basis or otherwise) 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;
                `(5) nondiscriminatory access to the poles, ducts, conduits,
              and rights-of-way owned or controlled by the local exchange
              carrier at just and reasonable rates;
                `(6) the local exchange carrier to take whatever action under
              its control is necessary, as soon as is technically feasible, 
              to provide telecommunications number portability and local
              dialing parity in a manner that--
                    `(A) permits consumers to be able to dial the same number
                  of digits when using any telecommunications carrier
                  providing telephone exchange service or exchange access
                  service in the market served by the local exchange carrier;
                    `(B) permits all such carriers to have nondiscriminatory
                  access to telephone numbers, operator services, directory
                  assistance, and directory listing with no unreasonable
                  dialing delays; and
                    `(C) provides for a reasonable allocation of costs among
                  the parties to the agreement;
                `(7) telecommunications services and network functions of the
              local exchange carrier to be available to the 
              telecommunications carrier on an unbundled basis without any
              unreasonable conditions on the resale or sharing of those
              services or functions, including the origination, transport, 
              and termination of such telecommunications services, other than
              reasonable conditions required by a State; and for purposes of
              this paragraph, it is not an unreasonable condition for a State
              to limit the resale--
                    `(A) of services included in the definition of universal
                  service to a telecommunications carrier who resells that
                  service to a category of customers different from the
                  category of customers being offered that universal service
                  by such carrier if the State orders a carrier to provide 
                  the same service to different categories of customers at
                  different prices necessary to promote universal service; or
                    `(B) of subsidized  universal service in a manner that
                  allows companies to charge another carrier rates which
                  reflect the actual cost of providing those services to that
                  carrier, exclusive of any universal service support 
                  received for providing such services in accordance with
                  section 214(d)(5);
                `(8) reciprocal compensation arrangements for the origination
              and termination of telecommunications;
                `(9) 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; and
                `(10) a schedule of itemized charges and conditions for each
              service, facility, or function provided under the agreement.
            `(c) Agreements Arrived at Through Negotiation: Upon receiving a
          request for interconnection, a local exchange carrier may meet its
          interconnection obligations under this section by negotiating and
          entering into a binding agreement with the telecommunications
          carrier seeking interconnection without regard to the standards set
          forth in subsection (b). The agreement shall include a schedule of
          itemized charges for each service, facility, or function included 
          in the agreement. The agreement, including any interconnection
          agreement negotiated before the date of enactment of the
          Telecommunications Act of 1995, shall be submitted to the State
          under subsection (e).
            `(d) Agreements Arrived at Through Arbitration or Intervention: 
                `(1) In general: Any party negotiating an interconnection
              agreement under this section may, at any point in the
              negotiation, ask a State to participate in the negotiation and
              to arbitrate any differences arising in the course of the
              negotiation.  The refusal of any other party to the negotiation
              to participate further in the negotiations, to cooperate with
              the  State in carrying out its function as a arbitrator, or to
              continue to negotiate in good faith in the presence, or with 
              the assistance, of the State shall be considered a failure to
              negotiate in good faith.
                `(2) Intervention: If any issues remain open in a negotiation
              commenced under this section more than 135 days after the date
              upon which the local exchange carrier received the request for
              such negotiation, then the carrier or any other party to the
              negotiation may petition a State to intervene in the
              negotiations for purposes of resolving any such remaining open
              issues. Any such request must be made during the 25-day period
              that begins 135 days after the carrier receives the request for
              such negotiation and ends 160 days after that date.
                `(3) Duty of petitioner: 
                    `(A) A party that petitions a State under paragraph (2)
                  shall, at the same time as it submits the petition, provide
                  the State all relevant documentation concerning the
                  negotiations necessary to understand--
                        `(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 under paragraph (2) 
                  shall provide a copy of the petition and any documentation
                  to the other party not later than the day on which the 
                  State receives the petition.
                `(4) Opportunity to respond: A party to a negotiation under
              this section with respect to which the other party has
              petitioned a State under paragraph (2) may respond to the other
              party's petition and provide such additional information as it
              wishes within 25 days after the State receives the petition.
                `(5) Action by state: 
                    `(A) A State proceeding to consider a petition under this
                  subsection shall be conducted in accordance with the rules
                  promulgated by the Commission under subsection (i). The
                  State shall limit its consideration of any petition under
                  paragraph (2) (and any response thereto) to the issues set
                  forth in the petition and in the response, if any, filed
                  under paragraph (4).
                    `(B) The State may require the petitioning party and the
                  responding party to provide such information as may be
                  necessary for the State to reach a decision on the
                  unresolved issues. If either party refuses or fails
                  unreasonably to respond on a timely basis to any reasonable
                  request from the State, then the State may proceed on the
                  basis of the best information available to it from whatever
                  source derived.
                    `(C) The State shall resolve each issue set forth in the
                  petition and the response, if any, by imposing appropriate
                  conditions upon the parties to the agreement, and shall
                  conduct the review of the agreement (including the issues
                  resolved by the State) not later than 10 months after the
                  date on which the local exchange carrier received the
                  request for interconnection under this section.
                    `(D) In resolving any open issues and imposing conditions
                  upon the parties to the agreement, a State shall ensure 
                  that the requirements of this section are met by the
                  solution imposed by the State and are consistent with the
                  Commission's rules defining minimum standards.
                `(6) Charges: If the amount charged by a local exchange
              carrier, or class of local exchange carriers, for an unbundled
              element of the interconnection provided under subsection (b) is
              determined by arbitration or intervention under this 
              subsection, then the charge--
                    `(A) shall be
                        `(i) based on the cost (determined without reference
                      to a rate-of-return or other rate-based proceeding) of
                      providing the unbundled element,
                        `(ii) nondiscriminatory, and
                        `(iii) individually priced to the smallest element
                      that is technically feasible and economically 
                      reasonable to provide; and
                    `(B) may include a reasonable profit.
            `(e) Approval by State: Any interconnection agreement under this
          section shall be submitted for approval to the State. A State to
          which an agreement is submitted shall approve or reject the
          agreement, with written findings as to any deficiencies.  The State
          may only reject--
                `(1) an agreement under subsection (c) if it finds that the
              agreement discriminates against a telecommunications carrier 
              not a party to the agreement; and
                `(2) an agreement under subsection (d) if it finds that--
                    `(B) the agreement does not meet the standards set forth
                  in subsection (b), or
                    `(B) the implementation of the agreement is not in the
                  public interest.
          If the State does not act to approve or reject the agreement within
          90 days after receiving the agreement, or 30 days in the case of an
          agreement negotiated under subsection (c), the agreement shall be
          deemed approved.  No State court shall have jurisdiction to review
          the action of a State in approving or rejecting an agreement under
          this section.
            `(f) Filing Required: A State shall make a copy of each a
          greement  approved under subsection (e) available for public
          inspection and copying within 10 days after the agreement is
          approved. The State may charge a reasonable and nondiscriminatory
          fee to the parties to the agreement to cover the costs of approving
          and filing such agreement.
            `(g) Availability to Other Telecommunications Carriers: A local
          exchange carrier shall make available any service, facility, or
          function provided under an interconnection agreement to which it is
          a party to any other telecommunications carrier that requests such
          interconnection upon the same terms and conditions as those 
          provided in the agreement.
            `(h) Collocation: A State may require telecommunications carriers
          to provide for actual collocation of equipment necessary for
          interconnection at the premises of the carrier at reasonable
          charges, if the State finds actual collocation to be in the public
          interest.
            `(i) Implementation: 
                `(1) Rules and standards: The Commission shall promulgate
              rules to implement the requirements of this section within 6
              months after the date of enactment of the Telecommunications 
              Act of 1995.  In establishing the standards for determining 
              what facilities and information are necessary for purposes of
              subsection (b)(2), the Commission shall consider, at a minimum,
              whether--
                    `(A) access to such facilities and information that are
                  proprietary in nature is necessary; and
                    `(B) the failure to provide access to such facilities and
                  information would impair the ability of the
                  telecommunications carrier seeking interconnection to
                  provide the services that it seeks to offer.
                `(2) Commission to act if state will not act: If a State,
              through action or inaction, fails to carry out its
              responsibility under this section in accordance with the rules
              prescribed by the Commission under paragraph (1) in any
              proceeding or other matter under this section, then the
              Commission shall issue an order preempting the State'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 under this section with
              respect to the proceeding or matter and act for the State.
                `(3) Waivers and modifications for rural carriers: The
              Commission or a State shall, upon petition or on its own
              initiative, waive or modify the requirements of subsection (b)
              for a rural telephone company or companies, and may waive or
              modify the requirements of subsection (b) for local exchange
              carriers with fewer than 2 percent of the Nation's subscriber
              lines installed in the aggregate nationwide, to the extent that
              the Commission or a State determines that such requirements
              would result in unfair competition, impose a significant 
              adverse economic impact on users of telecommunications 
              services, be technically infeasible, or otherwise not be in the
              public interest. The Commission or a State shall act upon any
              petition filed under this paragraph within 180 days of 
              receiving such petition. Pending such action, the Commission or
              a State may suspend enforcement of the requirement or
              requirements to which the petition applies with respect to the
              petitioning carrier or carriers.
            `(j) State Requirements: Nothing in this section 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
          service, as long as the State's requirements are not inconsistent
          with the Commission's regulations to implement this section.
            `(k) Access Charge Rules: Nothing in this section shall affect 
          the Commission's interexchange-to-local exchange access charge 
          rules for local exchange carriers or interexchange carriers in
          effect on the date of enactment of the Telecommunications Act of
          1995.
            `(l) Review of Interconnection Standards: Beginning 3 years after
          the date of enactment of the Telecommunications Act of 1995 and
          every 3 years thereafter, the Commission shall review the standards
          and requirements for interconnection established under subsection
          (b).  The Commission shall complete each such review within 180 
          days and may modify or waive any requirements or standards
          established under subsection (b) if it determines that the
          modification or waiver meets the requirements of section 260.
            `(m) Commercial Mobile Service Providers: The requirements of 
          this section shall not apply to commercial mobile services provided
          by a wireline local exchange carrier unless the Commission
          determines under subsection (a)(3) that such carrier has market
          power in the provision of commercial mobile service.'.
            (c) Technical Amendments: 
                (1) Title II (47 U.S.C. 201 et seq.) is amended by inserting
              before section 201 the following:
                              `PART I--GENERAL PROVISIONS'.
                (2) Section 2(b) (47 U.S.C. 152(b)) is amended by striking
              `sections 223 through 227, inclusive, and section 332,' and
              inserting `section 214(d), sections 223 through 227, part II of
              title II, and section 332,'.
          SEC. 102. SEPARATE AFFILIATE AND SAFEGUARD REQUIREMENTS.
            (a) In General: Part II of title II (47 U.S.C. 251 et seq.), as
          added by section 101 of this Act, is amended by inserting after
          section 251 the following new section:
          `SEC. 252. 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(a) 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(a); 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) Information services, including cable services and
                  alarm monitoring services, other than any information
                  service a Bell operating company was authorized to provide
                  before July 24, 1991.
                    `(B) Manufacturing services.
                    `(C) InterLATA services other than--
                        `(i) incidental services, not including information
                      services;
                        `(ii) out-of-region services; or
                        `(iii) services authorized under an order entered by
                      the United States District Court for the District of
                      Columbia pursuant to the Modification of Final Judgment
                      before the date of enactment of the Telecommunications
                      Act of 1995.
            `(b) Structural and Transactional Requirements: The separate
          affiliate required by this section--
                `(1) 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;
                `(2) shall have separate officers, directors, and employees
              from the Bell operating company of which it is an affiliate;
                `(3) 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
                `(4) 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;
                `(2) may not provide any goods, services, facilities, or
              information to such company or affiliate unless the goods,
              services, facilities, or information are made available to 
              other persons on reasonable and nondiscriminatory terms and
              conditions, unbundled to the smallest element that is
              technically feasible and economically reasonable to provide, 
              and at just and reasonable rates that are not higher on a
              per-unit basis than those charged for such services to any
              affiliate of such company; and
                `(3) shall account for all transactions with an affiliate
              described in subsection (a) in accordance with generally
              accepted accounting principles.
            `(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 selected by the Commission, and working at
              the direction of, the Commission and the State commission of
              each State in which such company provides service, 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) 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) 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) Joint Marketing: 
                `(1) 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) A Bell operating company may not market or sell any
              service provided by an affiliate required by this section until
              that company has been authorized to provide interLATA services
              under section 255.
                `(3) The joint marketing and sale of services permitted under
              this subsection shall not be considered to violate the
              nondiscrimination provisions of subsection (c).
            `(f) Additional Requirements for Provision of InterLATA Services:
          A Bell operating company--
                `(1) shall fulfill any requests from an unaffiliated entity
              for exchange access service within a period no longer than that
              in which it provides such exchange access service to itself or
              to its affiliates;
                `(2) shall fulfill any such requests with exchange access
              service of a quality that meets or exceeds the quality of
              exchange access service provided by the Bell operating company
              to itself or its affiliate;
                `(3) shall provide exchange access service to all carriers at
              rates that are just, reasonable, not unreasonably
              discriminatory, and based on costs;
                `(4) shall not provide any facilities, services, or
              information concerning its provision of exchange access service
              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;
                `(5) shall charge the affiliate described in subsection (a),
              and impute to itself or any intraLATA interexchange affiliate,
              the same rates for access to its telephone exchange service and
              exchange access service that it charges unaffiliated
              interexchange carriers for such service; and
                `(6) 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 so long as the costs are
              appropriately allocated.
            `(g) Proprietary Information: 
                `(1) In general: In complying with the requirements of this
              section, each Bell operating company and any affiliate of such
              company has a duty to protect the confidentiality of propriety
              information relating to other common carriers, to equipment
              manufacturers, and to customers.  A Bell operating company may
              not share customer proprietary information in aggregate form
              with its affiliates unless such aggregate information is
              available to other carriers or persons under the same terms and
              conditions.  Individually identifiable customer proprietary
              information and other proprietary information may be--
                    `(A) shared with any affiliated entity required by this
                  section or with any unaffiliated entity only with the
                  consent of the person to which such information relates or
                  from which it was obtained (including other carriers); or
                    `(B) disclosed to appropriate authorities pursuant to
                  court order.
                `(2) Exceptions: Paragraph (1) does not limit the disclosure
              of individually identifiable customer proprietary information 
              by each Bell operating company as necessary--
                    `(A) to initiate, render, bill, and collect for telephone
                  exchange service, interexchange service, or
                  telecommunications service requested by a customer; or
                    `(B) to protect the rights or property of the carrier, or
                  to protect users of any of those services and other 
                  carriers from fraudulent, abusive, or unlawful use of, or
                  subscription to, any such service.
                `(3) Subscriber list information: For purposes of this
              subsection, the term `customer proprietary information' does 
              not include subscriber list information.
            `(h) Commission May Grant Exceptions: The Commission may grant an
          exception from compliance with any requirement of this section upon
          a showing that the exception is necessary for the public interest,
          convenience, and necessity.
            `(i) Application to Utility Companies: 
                `(1) Registered public utility holding company: A registered
              company may provide telecommunications services only through a
              separate subsidiary company that is not a public utility company.
                `(2) Other utility companies: Each State shall determine
              whether a holding company subject to its jurisdiction--
                    `(A) that is not a registered holding company, and
                    `(B) that provides telecommunications service,
              is required to provide that service through a separate
              subsidiary company.
                `(3) Savings provision: Nothing in this subsection or the
              Telecommunications Act of 1995 prohibits a public utility
              company from engaging in any activity in which it is legally
              engaged on the date of enactment of the Telecommunications Act
              of 1995; provided it complies with the terms of any applicable
              authorizations.
                `(4) Definitions: For purposes of this subsection, the terms
              `public utility company', `associate company', `holding
              company', `subsidiary company', `registered holding company',
              and `State commission' have the same meaning as they have in
              section 2 of the Public Utility Holding Company Act of 1935.'.
            (b) Implementation: The Commission shall promulgate any
          regulations necessary to implement section 252 of the 
          Communications Act of 1934 (as added by subsection (a)) not later
          than one year after the date of enactment of this Act. Any separate
          affiliate established or designated for purposes of section 252(a)
          of the Communications Act of 1934 before the regulations have been
          issued in final form shall be restructured or otherwise modified, 
          if necessary, to meet the requirements of those regulations.
            (c) Effective Date: The amendment made by subsection (a) shall
          take effect on the date of enactment of this Act.
          SEC. 103. UNIVERSAL SERVICE.
            (a) Findings: The Congress finds that--
                (1) the existing system of universal service has evolved 
              since 1930 through an ongoing dialogue between industry, 
              various Federal-State Joint Boards, the Commission, and the
              courts;
                (2) this system has been predicated on rates established by
              the Commission and the States that require implicit cost
              shifting by monopoly providers of telephone exchange service
              through both local rates and access charges to interexchange
              carriers;
                (3) the advent of competition for the provision of telephone
              exchange service has led to industry requests that the existing
              system be modified to make support for universal service
              explicit and to require that all telecommunications carriers
              participate in the modified system on a competitively neutral
              basis; and
                (4) modification of the existing system is necessary to
              promote competition in the provision of telecommunications
              services and to allow competition and new technologies to 
              reduce the need for universal service support mechanisms.
            (b) Federal-State Joint Board on Universal Service: 
                (1) Within one month after the date of enactment of this Act,
              the Commission shall institute and refer to a Federal-State
              Joint Board under section 410(c) of the Communications Act of
              1934 a proceeding to recommend rules regarding the
              implementation of section 253 of that Act, including the
              definition of universal service. The Joint Board shall, after
              notice and public comment, make its recommendations to the
              Commission no later than 9 months after the date of enactment 
              of this Act.
                (2) The Commission may periodically, but no less than once
              every 4 years, institute and refer to the Joint Board  a
              proceeding to review the implementation of section 253 of that
              Act  and to make new recommendations, as necessary, with 
              respect to any modifications or additions that may be needed. 
              As part of any such proceeding the Joint Board shall review the
              definition of, and adequacy of support for, universal service
              and shall evaluate the extent to which universal service has
              been protected and advanced.
            (c) Commission Action: The Commission shall initiate a single
          proceeding to implement recommendations from the initial Joint 
          Board required by subsection (a) and shall complete such proceeding
          within 1 year after the date of enactment of this Act. Thereafter,
          the Commission shall complete any proceeding to implement
          recommendations from any further Joint Board required under
          subsection (b) within one year after receiving such recommendations.
            (d) Separations Rules: Nothing in the amendments made by this Act
          to the Communications Act of 1934 shall affect the Commission's
          separations rules for local exchange carriers or interexchange
          carriers in effect on the date of enactment of this Act.
            (e) Amendment of Communications Act: Part II of title II (47
          U.S.C. 251 et seq.), as added by this Act, is amended by inserting
          after section 252 the following new section:
          `SEC. 253. UNIVERSAL SERVICE.
            `(a) 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 services are to be provided at just, reasonable,
              and affordable rates.
                `(2) Access to advanced telecommunications and information
              services should be provided in all regions of the Nation.
                `(3) Consumers in rural and high cost areas should have 
              access to telecommunications and information services, 
              including interexchange services, that are reasonably 
              comparable to those services provided in urban areas.
                `(4) Consumers in rural and high cost areas should have 
              access to telecommunications and information services at rates
              that are reasonably comparable to rates charged for similar
              services in urban areas.
                `(5) Consumers in rural and high cost areas should have 
              access to the benefits of advanced telecommunications and
              information services for health care, education, economic
              development, and other public purposes.
                `(6) There should be a coordinated Federal-State universal
              service system to preserve and advance universal service using
              specific and predictable Federal and State mechanisms
              administered by an independent, non-governmental entity or
              entities.
                `(7) Elementary and secondary schools and classrooms should
              have access to advanced telecommunications services.
            `(b) Definition: 
                `(1) In general: Universal service is an evolving level of
              intrastate and interstate telecommunications services that the
              Commission, based on recommendations from the public, Congress,
              and the Federal-State Joint Board periodically convened under
              section 103 of the Telecommunications Act of 1995, and taking
              into account advances in telecommunications and information
              technologies and services, determines--
                    `(A) should be provided at just, reasonable, and
                  affordable rates to all Americans, including those in rural
                  and high cost areas and those with disabilities;
                    `(B) are essential in order for Americans to participate
                  effectively in the economic, academic, medical, and
                  democratic processes of the Nation; and
                    `(C) are, through the operation of market choices,
                  subscribed to by a substantial majority of residential
                  customers.
                `(2) Different definition for certain purposes: The 
              Commission may establish a different definition of universal
              service for schools, libraries, and health care providers for
              the purposes of section 264.
            `(c) All Telecommunications Carriers Must Participate: Every
          telecommunications carrier engaged in instrastate, interstate, or
          foreign communication shall participate, on an equitable and
          nondiscriminatory basis, in the specific and predictable mechanisms
          established by the Commission and the States to preserve and 
          advance universal service. Such participation shall be in the 
          manner determined by the Commission and the States to be reasonably
          necessary to preserve and advance universal service. Any other
          provider of telecommunications may be required to participate in 
          the preservation and advancement of universal service, if the 
          public interest so requires.
            `(d) State Authority: A State may adopt regulations to carry out
          its responsibilities under this section, or to provide for
          additional definitions, mechanisms, and standards to preserve and
          advance universal service within that State, to the extent that 
          such regulations do not conflict with the Commission's rules to
          implement this section. A State may only enforce additional
          definitions or standards to the extent that it adopts additional
          specific and predictable mechanisms to support such definitions or
          standards.
            `(e) Eligibility for Universal Service Support: To the extent
          necessary to provide for specific and predictable mechanisms to
          achieve the purposes of this section, the Commission shall modify
          its existing rules for the preservation and advancement of 
          universal service. Only essential telecommunications carriers
          designated under section 214(d) shall be eligible to receive 
          support for the provision of universal service. Such support, if
          any, shall accurately reflect what is necessary to preserve and
          advance universal service in accordance with this section and the
          other requirements of this Act.
            `(f) Universal Service Support: The Commission and the States
          shall have as their goal the need to make any support for universal
          service explicit, and to target that support to those essential
          telecommunications carriers that serve areas for which such support
          is necessary. The specific and predictable mechanisms adopted by 
          the Commission and the States shall ensure that essential
          telecommunications carriers are able to provide universal service 
          at just, reasonable, and affordable rates. A carrier that receives
          universal service support shall use that support only for the
          provision, maintenance, and upgrading of facilities and services 
          for which the support is intended.
            `(g) Interexchange Services: The rates charged by any provider of
          interexchange telecommunications service to customers in rural and
          high cost areas shall be no higher than those charged by such
          provider to its customers in urban areas.
            `(h) Subsidy of Competitive Services Prohibited: A
          telecommunications carrier may not use services that are not
          competitive to subsidize competitive services. 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.
            `(i) Congressional Notification Required: 
                `(1) In general: The Commission may not take action to 
              require participation by telecommunications carriers or other
              providers of telecommunications under subsection (c), or to
              modify its rules to increase support for the preservation and
              advancement of universal service, until--
                    `(A) the Commission submits to the Committee on Commerce,
                  Science, and Transportation of the Senate and the Committee
                  on Commerce of the House of Representatives a report on the
                  participation required, or the increase in support 
                  proposed, as appropriate; and
                    `(B) a period of 120 days has elapsed since the date the
                  report required under paragraph (1) was submitted.
                `(2) Not applicable to reductions: This subsection shall not
              apply to any action taken to reduce costs to carriers or
              consumers.
            `(j) Effect on Commission's Authority: Nothing in this section
          shall be construed to expand or limit the authority of the
          Commission to preserve and advance universal service under this Act.
            `(k) Effective Date: This section takes effect on the date of
          enactment of the Telecommunications Act of 1995, except for
          subsections (c), (d), (e), (f), and (i) which take effect one year
          after the date of enactment of that Act.'.
            (f) Prohibition on Exclusion of Areas from Service Based on Rural
          Location, High Costs, or Income: Part II of title II (47 U.S.C. 201
          et seq.) as amended by this Act, is amended by adding after section
          253 the following:
          `SEC. 253A PROHIBITION ON EXCLUSION OF AREAS FROM SERVICE BASED ON
                            RURAL LOCATION, HIGH COSTS, OR INCOME.
            `(a) The Commission shall prohibit any telecommunications carrier
          from excluding from any of such carrier's services any high-cost
          area, or any area on the basis of the rural location or the income
          of the residents of such area: Provided, That a carrier may exclude
          an area in which the carrier can demonstrate that--
                `(1) there will be insufficient consumer demand for the
              carrier to earn some return over the long term on the capital
              invested to provide such service to such area, and--
                `(2) providing a service to such area will be less profitable
              for the carrier than providing the service in areas to which 
              the carrier is already providing or has proposed to provide the
              service.
            `(b) The Commission shall provide for public comment on the
          adequacy of the carrier's proposed service area on the basis of the
          requirements of this section.'.
          SEC. 104.  ESSENTIAL TELECOMMUNICATIONS CARRIERS.
            (a) In General: Section 214(d) (47 U.S.C. 214(d)) is amended--
                (1) by inserting `(1) Adequate facilities required: ' before
              `The Commission'; and
                (2) by adding at the end thereof the following:
            `(2) Designation of essential carrier:  If one or more common
          carriers provide telecommunications service to a geographic area,
          and no common carrier will provide universal service to an unserved
          community or any portion thereof that requests such service within
          such area, then the Commission, with respect to interstate 
          services, or a State, with respect to intrastate services, shall
          determine which common carrier serving that area is best able to
          provide universal service to the requesting unserved community or
          portion thereof, and shall designate that common carrier as an
          essential telecommunications carrier for that unserved community or
          portion thereof.
            `(3) Essential carrier obligations: A common carrier may be
          designated by the Commission, or by a State, as appropriate, as an
          essential telecommunications carrier for a specific service area 
          and become eligible to receive universal service support under
          section 253.  A carrier designated as an essential
          telecommunications carrier shall--
                `(A) provide through its own facilities or through a
              combination of its own facilities and resale of services using
              another carrier's facilities, universal service and any
              additional service (such as 911 service) required by the
              Commission or the State, to any community or portion thereof
              which requests such service;
                `(B) offer such services at nondiscriminatory rates
              established by the Commission, for interstate services, and the
              State, for intrastate services, throughout the service area; and
                `(C) advertise throughout the service area the availability 
              of such services and the rates for such services using media of
              general distribution.
            `(4) Multiple essential carriers: If the Commission, with respect
          to interstate services, or a State, with respect to intrastate
          services, designates more than one common carrier as an essential
          telecommunications carrier for a specific service area, such 
          carrier shall meet the service, rate, and advertising requirements
          imposed by the Commission or State on any other essential
          telecommunications carrier for that service area. A State shall
          require that, before designating an additional essential
          telecommunications carrier, the State agency authorized to make the
          designation shall find that--
                `(A) the designation of an additional essential
              telecommunications carrier is in the public interest and that
              there will not be a significant adverse impact on users of
              telecommunications services or on the provision of universal
              service;
                `(B) the designation encourages the development and 
              deployment of advanced telecommunications infrastructure and
              services in rural areas; and
                `(C) the designation protects the public safety and welfare,
              ensures the continued quality of telecommunications services, 
              or safeguards the rights of consumers.
            `(5) Resale of universal service: The Commission, for interstate
          services, and the States, for intrastate services, shall establish
          rules to govern the resale of universal service to allocate any
          support received for the provision of such service in a manner that
          ensures that the carrier whose facilities are being resold is
          adequately compensated for their use, taking into account the 
          impact of the resale on that carrier's ability to maintain and
          deploy its network as a whole.  The Commission shall also 
          establish, based on the recommendations of the Federal-State Joint
          Board instituted to implement this section, rules to permit a
          carrier designated as an essential telecommunications carrier to
          relinquish that designation for a specific service area if another
          telecommunications carrier is also designated as an essential
          telecommunications carrier for that area.  The rules--
                `(A) shall ensure that all customers served by the
              relinquishing carrier continue to be served, and shall require
              sufficient notice to permit the purchase or construction of
              adequate facilities by any remaining essential
              telecommunications carrier if such remaining carrier provided
              universal service through resale of the facilities of the
              relinquishing carrier; and
                `(B) shall establish criteria for determining when a carrier
              which intends to utilize resale to meet the requirements for
              designation under this subsection has adequate resources to
              purchase, construct, or otherwise obtain the facilities
              necessary to meet its obligation if the reselling carrier is no
              longer able or obligated to resell the service.
            `(6) Enforcement: A common carrier designated by the Commission 
          or a State as an essential telecommunications carrier that refuses
          to provide universal service within a reasonable period to an
          unserved community or portion thereof which requests such service
          shall forfeit to the United States, in the case of interstate
          services, or the State, in the case of intrastate services, a sum 
          of up to $10,000 for each day that such carrier refuses to provide
          such service. In determining a reasonable period the Commission or
          the State, as appropriate, shall consider the nature of any
          construction required to serve such requesting unserved community 
          or portion thereof, as well as the construction intervals normally
          attending such construction, and shall allow adequate time for
          regulatory approvals and acquisition of necessary financing.
            `(7) Interexchange services: The Commission, for interstate
          services, or a State, for intrastate services, shall designate an
          essential telecommunications carrier for interexchange services for
          any unserved community or portion thereof requesting such s
          ervices.  Any common carrier designated as an essential
          telecommunications carrier for interexchange services under this
          paragraph shall provide interexchange services included in 
          universal service to any unserved community or portion thereof 
          which requests such service.  The service shall be provided at
          nationwide geographically averaged rates for interstate
          interexchange services and at geographically averaged rates for
          intrastate interexchange services, and shall be just and reasonable
          and not unjustly or unreasonably discriminatory.  A common carrier
          designated as an essential telecommunications carrier for
          interexchange services under this paragraph that refuses to provide
          interexchange service in accordance with this paragraph to an
          unserved community or portion thereof that requests such service
          within 180 days of such request shall forfeit to the United States 
          a sum of up to $50,000 for each day that such carrier refuses to
          provide such service.  The Commission or the State, as appropriate,
          may extend the 180-day period for providing interexchange service
          upon a showing by the common carrier of good faith efforts to 
          comply within such period.
            `(8) Implementation: The Commission may, by regulation, establish
          guidelines by which States may implement the provisions of this
          section.'.
            (b) Conforming Amendment: The heading for section 214 is amended
          by inserting a semicolon and `essential telecommunications 
          carriers' after `lines'.
            (c) Transition Rule: A rural telephone company is eligible to
          receive universal service support payments under section 253(e) of
          the Communications Act of 1934 as if such company were an essential
          telecommunications carrier  until such time as the Commission, with
          respect to interstate services, or a State, with respect to
          intrastate services, designates an essential telecommunications
          carrier or carriers for the area served by such company under
          section 214 of that Act.
          SEC. 105. FOREIGN INVESTMENT AND OWNERSHIP REFORM.
            (a) In General: Section 310 (47 U.S.C. 310) is amended by adding
          at the end thereof the following new subsection:
            `(f) Termination of Foreign Ownership Restrictions: 
                `(1) Restriction not to apply where reciprocity found:
              Subsection (b) shall not apply to any common carrier license
              held, or for which application is made, after the date of
              enactment of the Telecommunications Act of 1995 with respect to
              any alien (or representative thereof), corporation, or foreign
              government (or representative thereof) if the Commission
              determines that the foreign country of which such alien is a
              citizen, in which such corporation is organized, or in which
              such foreign government is in control provides equivalent 
              market opportunities for common carriers to citizens of the
              United States (or their representatives), corporations 
              organized in the United States, and the United States 
              Government (or its representative): Provided, That the 
              President does not object within 15 days of such determination.
              If the President objects to a determination, the President
              shall, immediately upon such objection, submit to Congress a
              written report (in unclassified form, but with a classified
              annex if necessary) that sets forth a detailed explanation of
              the findings made and factors considered in objecting to the
              determination. The determination of whether market 
              opportunities are equivalent shall be made on a market segment
              specific basis within 180 days after the application is filed.
              While determining whether such opportunities are equivalent on
              that basis, the Commission shall also conduct an evaluation of
              opportunities for access to all segments of the
              telecommunications market of the applicant.
                `(2) Snapback for reciprocity failure: If the Commission
              determines that any foreign country with respect to which it 
              has made a determination under paragraph (1) ceases to meet the
              requirements for that determination, then--
                    `(A) subsection (b) shall apply with respect to such
                  aliens, corporations, and government (or their
                  representatives) on the date on which the Commission
                  publishes notice of its determination under this paragraph,
                  and
                    `(B) any license held, or application filed, which could
                  not be held or granted under subsection (b) shall be
                  withdrawn, or denied, as the case may be, by the Commission
                  under the provisions of subsection (b).'.
            (b) Conforming Amendment: Section 332(c)(6) (47 U.S.C. 332(c)(6))
          is amended by adding at the end thereof the following:
              `This paragraph does not apply to any foreign ownership 
              interest or transfer of ownership to which section 310(b) does
              not apply because of section 310(f).'.
            (c) The Application of the Exon-Florio Law: Nothing in this
          section (47 U.S.C. 310) shall limit in any way the application of
          the Exon-Florio law (50 U.S.C. App. 2170) to any transaction.
          SEC. 106. INFRASTRUCTURE SHARING.
            (a) Regulations Required: The Commission shall prescribe, within
          one year after the date of enactment of this Act, regulations that
          require local exchange carriers that were subject to Part 69 of the
          Commission's rules on or before that date 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 and obtained designation as an essential
          telecommunications carrier under section 214(d) and provides
          universal service by means of its own facilities.
            (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) Definitions: For purposes of this section--
                (1) Qualifying carrier: The term `qualifying carrier' means a
              telecommunications carrier that--
                    (A) lacks economies of scale or scope, as determined in
                  accordance with regulations prescribed by the Commission
                  pursuant to this section; and
                    (B) is a common carrier which offers telephone exchange
                  service, exchange access service, 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 essential
                  telecommunications carrier under section 214(d) of the
                  Communications Act of 1934.
                (2) Other terms: Any term used in this section that is 
              defined in the Communications Act of 1934 has the same meaning
              as it has in that Act.
          SEC. 107. COORDINATION FOR TELECOMMUNICATIONS NETWORK-LEVEL
                            INTEROPERABILITY.
            (a) In General: To promote nondiscriminatory access to
          telecommunications networks by the broadest number of users and
          vendors of communications products and services through--
                (1) coordinated telecommunications network planning and 
              design by common carriers and other providers of
              telecommunications services, and
                (2) interconnection of telecommunications networks, and of
              devices with such networks, to ensure the ability of users and
              information providers to seamlessly and transparently transmit
              and receive information between and across telecommunications
              networks,
          the Commission may participate, in a manner consistent with its
          authority and practice prior to the date of enactment of this Act,
          in the development by appropriate voluntary industry
          standards-setting organizations to promote telecommunications
          network-level interoperability.
            (b) Definition of telecommunications network-level
          interoperability: As used in this section, the term
          `telecommunications network-level interoperability' means the
          ability of 2 or more telecommunications networks to communicate and
          interact in concert with each other to exchange information without
          degeneration.
            (c) Commission's Authority Not Limited: Nothing in this section
          shall be construed as limiting the existing authority of the
          Commission.
                    TITLE II--REMOVAL OF RESTRICTIONS TO COMPETITION
                           SUBTITLE A--REMOVAL OF RESTRICTIONS
          SEC. 201. REMOVAL OF ENTRY BARRIERS.
            (a) Preemption of State Rules: Part II of title II (47 U.S.C. 251
          et seq.), as added by this Act, is amended by inserting after
          section 253 the following:
          `SEC. 254. 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 services.
            `(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 253, 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
          shall preempt the enforcement of such statute, regulation, or legal
          requirement to the extent necessary to correct such violation or
          inconsistency.
            `(e) Commercial mobile services providers: Nothing in this 
          section shall affect the application of section 332(c)(3) to
          commercial mobile services providers.'.
            (b) Provision of Telecommunications Services by a Cable Operator: 
                (1) Jurisdiction of franchising authority: Section 621(b) (47
              U.S.C. 541(b)) is amended by adding at the end thereof the
              following new paragraph:
                `(3)(A) To the extent that a cable operator or affiliate
              thereof is engaged in the provision of telecommunications
              services--
                    `(i) such cable operator or affiliate shall not be
                  required to obtain a franchise under this title 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 order a cable operator 
              or affiliate thereof to discontinue the provision of a
              telecommunications service.
                `(C) A franchising authority may not require a cable operator
              to provide any telecommunications service or facilities as a
              condition of the initial grant of a franchise, franchise
              renewal, or transfer of a franchise.
                `(D) Nothing in this paragraph affects existing Federal or
              State authority with respect to telecommunications services.'.
                (2) 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.
            (c) State and Local Tax Laws: Except as provided in section 202,
          nothing in this Act (or in the Communications Act of 1934 as 
          amended 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 that
          is consistent with the requirements of the Constitution of the
          United States, this Act, the Communications Act of 1934, or any
          other applicable Federal law.
            (d) Effective Date: The amendments made by this section take
          effect on the date of enactment of this Act.
          SEC. 202. ELIMINATION OF CABLE AND TELEPHONE COMPANY 
                            CROSS-OWNERSHIP RESTRICTION.
            (a) In General: Section 613(b) (47 U.S.C. 533(b)) is amended to
          read as follows:
            `(b) Video Programming and Cable Services: 
                `(1) Distinction between video platform and cable service: To
              the extent that any telecommunications carrier carries video
              programming provided by others, or provides video programming
              that it owns, controls, or selects directly to subscribers,
              through a common carrier video platform, neither the
              telecommunications carrier nor any video programming provider
              making use of such platform shall be deemed to be a cable
              operator providing cable service. To the extent that any
              telecommunications carrier provides video programming directly
              to subscribers through a cable system, the carrier shall be
              deemed to be a cable operator providing cable service.
                `(2) Bell operating company activities: 
                    `(A) Notwithstanding the provisions of section 252, to 
                  the extent that a Bell operating company carries video
                  programming provided by others or provides video 
                  programming that it owns, controls, or selects over a 
                  common carrier video platform, it need not use a separate
                  affiliate if--
                        `(i) the carrier provides facilities, services, or
                      information to all programmers on the same terms and
                      conditions as it provides such facilities, services, or
                      information to its own video programming operations, and
                        `(ii) the carrier does not use its telecommunications
                      services to subsidize its provision of video programming.
                    `(B) To the extent that a Bell operating company provides
                  cable service as a cable operator, it shall provide such
                  service through an affiliate that meets the requirements of
                  section 252 (a), (b), and (d) and the Bell operating
                  company's telephone exchange services and exchange access
                  services shall meet the requirements of subparagraph 
                  (A)(ii) and section 252(c); except that, to the extent the
                  Bell operating company provides cable service utilizing its
                  own telephone exchange facilities, section 252(c) shall not
                  require the Bell operating company to make video 
                  programming services capacity available on a
                  non-discriminatory basis to other video programming 
                  services providers.
                    `(C) Upon a finding by the Commission that the 
                  requirement of a separate affiliate under the preceding
                  subparagraph is no longer necessary to protect consumers,
                  competition, or the public interest, the Commission shall
                  exempt a Bell operating company from that requirement.
                `(3) Common carrier video platform: Nothing in this Act
              precludes a telecommunications carrier from carrying video
              programming provided by others directly to subscribers over a
              common carrier video platform. Nothing in this Act precludes a
              video programming provider making use of a common carrier video
              platform from being treated as an operator of a cable system 
              for purposes of section 111 of title 17, United States Code.
                `(4) Rates; access: Notwithstanding paragraph (2)(A)(i), a
              provider of common carrier video platform services shall 
              provide local broadcast stations, and to those public,
              educational, and governmental entities required by local
              franchise authorities to be given access to cable systems
              operating in the same market as the common carrier video
              platform, with access to that platform for the transmission of
              television broadcast programming at rates no higher than the
              incremental-cost-based rates of providing such access.  Local
              broadcast stations shall be entitled to obtain access on the
              first tier of programming on the common carrier video platform.
              If the area covered by the common carrier video platform
              includes more than one franchising area, then the Commission
              shall determine the number of channels allocated to public,
              educational, and governmental entities that may be eligible for
              such rates for that platform.
                `(5) Competitive neutrality: A provider of video programming
              may be required to pay fees in lieu of franchise fees (as
              defined in section 622(g)(1)) if the fees--
                    `(A) are competitively neutral; and
                    `(B) are separately identified in consumer billing.
                `(6) Acquisitions; joint ventures; partnerships; joint use of
              facilities:
                    `(A) Local exchange 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 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) 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 Venture: 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 subscribers or to provide
                  telecommunications services within such market.
                    `(D) Exception: Notwithstanding subparagraphs (A), (B),
                  and (C) of this paragraph, 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 such system or
                  facilities to the extent that such system or facilities 
                  only serve incorporated or unincorporated--
                        `(i) places or territories that have fewer than 
                      50,000 inhabitants; and
                        `(ii) are outside an urbanized area, as defined by 
                      the Bureau of the Census.
                    `(E) Waiver: The Commission may waive the restrictions of
                  subparagraph (A), (B), or (C) only if 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 incumbent 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.
                    `(F) Joint use: Notwithstanding subparagraphs (A), (B),
                  and (C), a telecommunications carrier may obtain within 
                  such carrier's telephone service area, with the concurrence
                  of the cable operator on the rates, terms, and conditions,
                  the use of that portion of the transmission facilities of
                  such a cable system extending from the last multiuser
                  terminal to the premises of the end user in excess of the
                  capacity that the cable operator uses to provide its own
                  cable services. A cable operator that provides access to
                  such portion of its transmission facilities to one
                  telecommunications carrier shall provide nondiscriminatory
                  access to such portion of its transmission facilities to 
                  any other telecommunications carrier requesting such access.
                    `(G) Savings clause: Nothing in this paragraph affects--
                        `(i) the authority of a local franchising authority
                      (in the case of the purchase or acquisition of a cable
                      operator, or a joint venture to provide cable service)
                      or a State Commission (in the case of the acquisition 
                      of a local exchange carrier, or a joint venture to
                      provide telephone exchange service) to approve or
                      disapprove a purchase, acquisition, or joint venture, or
                        `(ii) the antitrust laws, as described in section 
                      7(a) of the Telecommunications Competition and
                      Deregulation Act of 1995.'.
            (b) No Permit Required for Video Programming Services: Section 
          214 (47 U.S.C. 214) is amended by adding at the end thereof the
          following:
            `(e) Special Rule: No certificate is required under this section
          for a carrier to construct facilities to provide video programming
          services.'.
            (c) Safeguards: Within one year after the date of enactment of
          this Act, the Commission shall prescribe regulations that--
                (1) require a telecommunications carrier that provides video
              programming directly to subscribers to ensure that subscribers
              are offered the means to obtain access to the signals of local
              broadcast television stations identified under section 614 as
              readily as they are today;
                (2) require such a carrier to display clearly and prominently
              at the beginning of any program guide or menu of program
              offerings the identity of any signal of any television 
              broadcast station that is carried by the carrier;
                (3) require such a carrier to ensure that viewers are able to
              access the signal of any television broadcast station that is
              carried by that carrier without first having to view 
              advertising or promotional material, or a navigational device,
              guide, or menu that omits broadcasting services as an available
              option;
                (4) except as required by paragraphs (1) through (3), 
              prohibit such carrier and a multichannel video programming
              distributor using the facilities of such carrier from
              discriminating among video programming providers with respect 
              to material or information provided by the carrier to
              subscribers for the purposes of selecting programming, or in 
              the way such material or information is presented to subscribers;
                (5) require such carrier and a multichannel video programming
              distributor using the facilities of such carrier to ensure that
              video programming providers or copyright holders (or both) are
              able suitably and uniquely to identify their programming
              services to subscribers;
                (6) if such identification is transmitted as part of the
              programming signal, require a telecommunications carrier that
              provides video programming directly to subscribers and a
              multichannel video programming distributor using the facilities
              of such carrier to transmit such identification without change
              or alteration;
                (7) prohibit such carrier from discriminating among video
              programming providers with regard to carriage and ensure that
              the rates, terms, and conditions for such carriage are just,
              reasonable, and nondiscriminatory;
                (8) extend to such carriers and multichannel video 
              programming distributors using the facilities of such carrier
              the Commission's regulations concerning network nonduplication
              (47 C.F.R. 76.92 et seq.) and syndicated exclusivity (47 C.F.R.
              76.171 et seq.); and
                (9) extend to such carriers and multichannel video 
              programming distributors using the facilities of such carrier
              the protections afforded to local broadcast signals in section
              614(b)(3), 614(b)(4)(A), and 615(g)(1) and (2) of such Act (47
              U.S.C. 534(b)(3), 534(b)(4)(A), and 535(g)(1) and (2)).
            (d) Enforcement: The Commission shall resolve disputes under
          subsection (c) and the regulations prescribed under that 
          subsection.  Any such dispute shall be resolved with 180 days after
          notice of the dispute is submitted to the Commission.  At that 
          time, or subsequently in a separate proceeding, the Commission may
          award damages sustained in consequence of any violation of this
          section to any person denied carriage, or require carriage, or 
          both.  Any aggrieved party may also seek any other remedy available
          under the law.
            (e) Effective Dates: The amendment made by subsection (a) takes
          effect on the date of enactment of this Act. The amendment made by
          subsection (b) takes effect 1 year after that date.
          SEC. 203. CABLE ACT REFORM.
            (a) Change in Definition of Cable System: Section 602(7) (47
          U.S.C. 522(7)) is amended by striking out `(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: 
                (1) Section 623(c) (47 U.S.C. 543(c)) is amended--
                    (A) by striking `subscriber,' and the comma after
                  `authority' in paragraph (1)(B);
                    (B) by striking paragraph (2) and inserting the following:
                `(2) Standard for unreasonable rates: The Commission may only
              consider a rate for cable programming services to be
              unreasonable if it substantially exceeds the national average
              rate for comparable cable programming services provided by 
              cable systems other than small cable systems, determined on a
              per-channel basis as of June 1, 1995, and redetermined, and
              adjusted if necessary, every 2 years thereafter.'.
                (2) 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 a semicolon and `or'; and
                    (C) by adding at the end the following:
                    `(D) a local exchange carrier offers video programming
                  services directly to subscribers, either over a common
                  carrier video platform or as a cable operator, 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 offered by the carrier in
                  that area are comparable to the video programming services
                  provided by the unaffiliated cable operator in that area.'.
            (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: Subsection (a), (b), or (c) does 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 serves 35,000 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) Program Access: Section 628 (47 U.S.C. 628) 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 telecommunications
          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.'.
            (e) Expedited Decision-Making for Market Determinations Under
          Section 614:
                (1) In general: Section 614(h)(1)(C)(iv) (47 U.S.C.
              614(h)(1)(C)(iv)) is amended to read as follows:
                        `(iv) Within 120 days after the date on which a
                      request is filed under this subparagraph, the 
                      Commission shall grant or deny the request.'.
                (2) 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. 614(h)(1)(C)) on the
                  date of enactment of this Act; and
                    (B) any request filed under that section after that date.
            (f) Effective Date: The amendments made by this section take
          effect on the date of enactment of this Act.
          SEC. 204. POLE ATTACHMENTS.
            Section 224  (47 U.S.C. 224) is amended--
                (1) by inserting the following after subsection (a)(4):
                `(5) The term `telecommunications carrier' shall have the
              meaning given such term in subsection 3(nn) of this Act, except
              that, for purposes of this section, the term shall not include
              any person classified by the Commission as a dominant provider
              of telecommunications services as of January 1, 1995.';
                (2) 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),';
                (3) by inserting after subsection (d)(2) the following:
                `(3) 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 pole attachment rates for cable television systems (or
              for any telecommunications carrier that was not a party to any
              pole attachment agreement prior to the date of enactment of the
              Telecommunications Act of 1995) to provide any
              telecommunications service or any other service subject to the
              jurisdiction of the Commission.'; and
                (4) by adding at the end thereof the following:
                `(e)(1) The Commission shall, no later than 2 years after the
              date of enactment of the Telecommunications Act of 1995,
              prescribe regulations in accordance with this subsection to
              govern the charges for pole attachments by telecommunications
              carriers. Such regulations shall ensure that utilities charge
              just and reasonable and non-discriminatory 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 the sum
              of--
                    `(A) 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
                  attachments, plus
                    `(B) the percentage of usable space required by each such
                  entity multiplied by the costs of space other than the
                  usable space;
              but in no event shall such proportion exceed the amount that
              would be allocated to such entity under an equal apportionment
              of such costs among all attachments.
                `(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. Costs shall be apportioned
              between the usable space and the space on a pole, duct, 
              conduit, or right-of-way other than the usable space on a
              proportionate basis.
                `(4) The regulations required under paragraph (1) shall 
              become effective 5 years after the date of enactment of the
              Telecommunications Act of 1995. 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 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.
            `(g) A utility that engages in the provision of 
          telecommunications 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 amount equal
          to the pole attachment rate for which such company would be liable
          under this section.'.
          SEC. 205. ENTRY BY UTILITY COMPANIES.
            (a) In General: 
                (1) Authorized activities of utilities: Notwithstanding any
              other provision of law to the contrary (including the Public
              Utility Holding Company Act of 1935 (15 U.S.C. 79a et seq.)), 
              an electric, gas, water, or steam utility, and any subsidiary
              company, affiliate, or associate company of such a utility,
              other than a public utility company that is an associate 
              company of a registered holding company, may engage, directly 
              or indirectly, in any activity whatsoever, wherever located,
              necessary or appropriate to the provision of--
                    (A) telecommunications services,
                    (B) information services,
                    (C) other services or products subject to the 
                  jurisdiction of the Federal Communications Commission under
                  the Communications Act of 1934 (47 U.S.C. 151 et seq.), or
                    (D) products or services that are related or incidental 
                  to a product or service described in subparagraph (A), (B),
                  or (C).
                (2) Removal of sec jurisdiction: The Securities and Exchange
              Commission has no jurisdiction under the Public Utility Holding
              Company Act of 1935 (15 U.S.C. 79a et seq.) over a holding
              company, or a subsidiary company, affiliate, or associate
              company of a holding company, to grant any authorization to
              enforce any requirement with respect to, or approve or 
              otherwise review, any activity described in paragraph (1),
              including financing, investing in, acquiring, or maintaining 
              any interest in, or entering into affiliate transactions or
              contracts, and any authority over audits or access to books and
              records.
                (3) 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 associate company engaged in
              activities described in paragraph (1).
                (4) Commission rules: The Commission shall consider and 
              adopt, as necessary, rules to protect the customers of a public
              utility company that is a subsidiary company of a registered
              holding company against potential detriment from the
              telecommunications activities of any other subsidiary of such
              registered holding company.
            (b) Prohibition of Cross-Subsidization: Nothing in the Public
          Utility Holding Company Act of 1935 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
          any activity described in subsection (a)(1) which is performed by 
          an associate company regardless of whether such costs are incurred
          through the direct or indirect purchase of goods and services from
          such associate company.
            (c) Assumption of Liabilities: Any public utility company that is
          an associate company 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 associate company engaged in activities described in
          subsection (a)(1) without the prior approval of the State 
          commission. Any public utility company that is an associate company
          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
          in respect of any security of an associate company engaged in
          activities described in subsection (a)(1) without the prior 
          approval of the State commission.
            (d) Pledging or Mortgaging Utility Assets: Any public utility
          company that is an associate company 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 utility
          assets of the public utility or utility assets of any subsidiary
          company thereof for the benefit of an associate company engaged in
          activities described in subsection (a)(1) without the prior 
          approval of the State commission.
            (e) Books and Records: An associate company engaged in activities
          described in subsection (a)(1) which is an associate company of a
          registered holding company shall maintain books, records, and
          accounts separate from the registered holding company which 
          identify all transactions with the registered holding company and
          its other associate companies, and provide access to books, 
          records, and accounts to State commissions and the Federal Energy
          Regulatory Commission under the same terms of access, disclosure,
          and procedures as provided in section 201(g) of the Federal Power
          Act.
            (f) 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, affiliate, or associate company of that
                  holding company engaged in any activity described in
                  subsection (a)(1),
              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 the subsidiary
              company, affiliate, or associate company engaged in that
              activity.
                (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.
                    (B) The public utility company and the company engaged in
                  activities under subsection (a)(1) 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 within 6 months after
              the selection of the auditor, and provided to the public 
              utility company 60 days thereafter.
            (g) Required Notices: 
                (1) Affiliate contracts: A State commission may order any
              public utility company that is an associate company of a
              registered holding company and that is subject to the
              jurisdiction of the State commission to provide quarterly
              reports listing any contracts, leases, transfers, or other
              transactions with an associate company engaged in activities
              described in subsection (a)(1).
                (2) Acquisition of an interest in associate companies: Within
              10 days after the acquisition by a registered holding company 
              of an interest in an associate company that will engage in
              activities described in subsection (a)(1), any public utility
              company that is an associate company of such company shall
              notify each State commission having jurisdiction over the 
              retail rates of such public utility company of such 
              acquisition. In the notice an officer on behalf of the public
              utility company shall attest that, based on then current
              information, such acquisition and related financing will not
              materially impair the ability of such public utility company to
              meet its public service responsibility, including its ability 
              to raise necessary capital.
            (h) Definitions: Any term used in this section that is defined in
          the Public Utility Holding Company Act of 1935 (15 U.S.C. 79a et
          seq.) has the same meaning as it has in that Act. The terms
          `telecommunications service' and `information service' shall have
          the same meanings as those terms have in the Communications Act of
          1934.
            (i) Implementation: Not later than 1 year after the date of
          enactment of this Act, the Federal Communications Commission shall
          promulgate such regulations as may be necessary to implement this
          section.
            (j) Effective Date: This section takes effect on the date of
          enactment of this Act.
          SEC. 206. BROADCAST REFORM.
            (a) Spectrum Reform: 
                (1) Advanced television spectrum services: If the Commission
              by rule permits licensees to provide advanced television
              services, then--
                    (A) it shall adopt regulations that allow such licensees
                  to make use of the advanced television spectrum for the
                  transmission of ancillary or supplementary services if the
                  licensees provide without charge to the public at least one
                  advanced television program service as prescribed by the
                  Commission that is intended for and available to the 
                  general public on the advanced television spectrum; and
                    (B) it shall apply similar rules to use of existing
                  television spectrum.
                (2) Commission to collect fees: To the extent that a
              television broadcast licensee provides ancillary or
              supplementary services using existing or advanced television
              spectrum--
                    (A) for which 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 payments to broadcast stations by third parties for
                  transmission of program material or commercial advertising,
              the Commission may collect from each such licensee an annual 
              fee to the extent the existing or advanced television spectrum
              is used for such ancillary or supplementary services. In
              determining the amount of such fees, the Commission shall take
              into account the portion of the licensee's total existing or
              advanced television spectrum which is used for such services 
              and the amount of time such services are provided. The amount 
              of such fees to be collected for any such service shall not, in
              any event, exceed an amount equivalent on an annualized basis 
              to the amount paid by providers of a competing service on
              spectrum subject to auction under section 309(j) of the
              Communications Act of 1934 (47 U.S.C. 309(j)).
                (3) 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.
                (4) Definitions: As used in this subsection--
                    (A) The term `advanced television services' means
                  television services provided using digital or other 
                  advanced technology to enhance audio quality and video
                  resolution.
                    (B) The term `existing' means spectrum generally in use
                  for television broadcast purposes on the date of enactment
                  of this Act.
            (b) Ownership Reform: 
                (1) In general: The Commission shall modify its rules for
              multiple ownership set forth in 47 CFR 73.3555 by--
                    (A) eliminating the restrictions on the number of
                  television stations owned under subdivisions (e)(1) (ii) 
                  and (iii); and
                    (B) changing the percentage set forth in subdivision
                  (e)(2)(ii) from 25 percent to 35 percent.
                (2) Radio Ownership: The Commission shall modify its rules 
              set forth in 47 CFR 73.3555 by eliminating any provisions
              limiting the number of AM or FM broadcast stations which may be
              owned or controlled by one entity either nationally or in a
              particular market. The Commission may refuse to approve the
              transfer or issuance of an AM or FM broadcast license to a
              particular entity if it finds that the entity would thereby
              obtain an undue concentration of control or would thereby harm
              competition. Nothing in this section shall require or prevent
              the Commission from modifying its rules contained in 47 CFR
              73.3555(c) governing the ownership of both a radio and
              television broadcast stations in the same market.
                (3) Local marketing agreement: Nothing in this Act shall be
              construed to prohibit the continuation or renewal of any
              television local marketing agreement that is in effect on the
              date of enactment of this Act and that is in compliance with 
              the Commission's regulations.
                (4) Statutory restrictions: Section 613 (47 U.S.C. 533) is
              amended by striking subsection (a) and inserting the following:
            `(a) The Commission shall review its ownership rules biennially 
          as part of its regulatory reform review under section 259.'.
                (5) Conforming changes: The Commission shall amend its rules
              to make any changes necessary to reflect the effect of this
              section on its rules.
                (6) Effective date: The Commission shall make the
              modifications required by paragraphs (1) and (2) effective on
              the date of enactment of this Act.
            (c) Term of Licenses: Section 307(c) (47 U.S.C. 307(c)) is 
          amended by striking the first four sentences and inserting the
          following:
            `No license shall be granted for a term longer than 10 years. 
          Upon  application, a renewal of such license may be granted from
          time to time for a term of not to exceed 10 years, if the 
          Commission finds that the public interest, convenience, and
          necessity would be served thereby.'.
            (d) Broadcast License Renewal Procedures: 
                (1) Section 309 (47 U.S.C. 309) is amended by adding at the
              end thereof the following:
            `(k)(1)(A) Notwithstanding subsections (c) and (d), 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, after notice and opportunity for
          comment, with respect to that station during the preceding term of
          its license, that--
                `(i) the station has served the public interest, convenience,
              and necessity;
                `(ii) there have been no serious violations by the licensee 
              of this Act or the rules and regulations of the Commission; and
                `(iii) 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.
            `(B) 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 (2), or grant
          such application on appropriate terms and conditions, including
          renewal for a term less than the maximum otherwise permitted.
            `(2) If the Commission determines, after notice and opportunity
          for a hearing, that a licensee has failed to meet the requirements
          specified in paragraph (1)(A) 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.
            `(3) In making the determinations specified in paragraphs (1) or
          (2)(A), 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) Section 309(d) (47 U.S.C. 309(d)) is amended by inserting
              `(or subsection (k) in the case of renewal of any broadcast
              station license)' after `with subsection (a)' each place it
              appears.
                (3) The amendments made by this subsection apply to
              applications filed after May 31, 1995.
                (4) This section shall operate only if the Commission shall
              amend its `Application for renewal of License for AM, FM, TV,
              Translator or LPTV Station' (FCC Form 303-S) to require that,
              for commercial TV applicants only, the applicant 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 section 73.1202 of title 47, Code 
              of Federal Regulations, that comment on the applicant's
              programming, if any, characterized by the commentor as
              constituting violent programming.
                SUBTITLE B--TERMINATION OF MODIFICATION OF FINAL JUDGMENT
          SEC. 221. REMOVAL OF LONG DISTANCE RESTRICTIONS.
            (a) In General: Part II of title II (47 U.S.C. 251 et seq.), as
          added by this Act, is amended by inserting after section 254 the
          following new section:
          `SEC. 255. INTEREXCHANGE TELECOMMUNICATIONS SERVICES.
            `(a) In General: Notwithstanding any restriction or obligation
          imposed before the date of enactment of the Telecommunications Act
          of 1995 under section II(D) of the Modification of Final Judgment, 
          a Bell operating company, or any subsidiary or affiliate of a Bell
          operating company, that meets the requirements of this section may
          provide--
                `(1) interLATA telecommunications services originating in any
              region in which it is the dominant provider of wireline
              telephone exchange service or exchange access service after the
              Commission determines that it has fully implemented the
              competitive checklist found in subsection (b)(2) in the area in
              which it seeks to provide interLATA telecommunications 
              services, in accordance with the provisions of subsection (c);
                `(2) interLATA telecommunications services originating in any
              area where that company is not the dominant provider of 
              wireline telephone exchange service or exchange access service
              in accordance with the provisions of subsection (d); and
                `(3) interLATA services that are incidental services in
              accordance with the provisions of subsection (e).
            `(b) Specific InterLATA Interconnection Requirements: 
                `(1) In general: A Bell operating company may provide
              interLATA services in accordance with this section only if that
              company has reached an interconnection agreement under section
              251 and that agreement provides, at a minimum, for
              interconnection that meets the competitive checklist
              requirements of paragraph (2).
                `(2) Competitive checklist: Interconnection provided by a 
              Bell operating company to other telecommunications carriers
              under section 251 shall include:
                    `(A) Nondiscriminatory access on an unbundled basis to 
                  the network functions and services of the Bell operating
                  company's telecommunications network that is at least equal
                  in type, quality, and price to the access the Bell 
                  operating company affords to itself or any other entity.
                    `(B) The capability to exchange telecommunications 
                  between customers of the Bell operating company and the
                  telecommunications carrier seeking interconnection.
                    `(C) Nondiscriminatory access to the poles, ducts,
                  conduits, and rights-of-way owned or controlled by the Bell
                  operating company at just and reasonable rates where it has
                  the legal authority to permit such access.
                    `(D) Local loop transmission from the central office to
                  the customer's premises, unbundled from local switching or
                  other services.
                    `(E) Local transport from the trunk side of a wireline
                  local exchange carrier switch unbundled from switching or
                  other services.
                    `(F) Local switching unbundled from transport, local loop
                  transmission, or other services.
                    `(G) 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.
                    `(H) White pages directory listings for customers of the
                  other carrier's telephone exchange service.
                    `(I) Until the date by which neutral telephone number
                  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.
                    `(J) Nondiscriminatory access to databases and associated
                  signaling, including signaling links, signaling service
                  control points, and signaling service transfer points,
                  necessary for call routing and completion.
                    `(K) Until the date by which the Commission determines
                  that final telecommunications number portability is
                  technically feasible and must be made available,  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 final
                  telecommunications number portability.
                    `(L) Nondiscriminatory access to whatever services or
                  information may be necessary to allow the requesting 
                  carrier to implement local dialing parity in a manner that
                  permits consumers to be able to dial the same number of
                  digits when using any telecommunications carrier providing
                  telephone exchange service or exchange access service.
                    `(M) Reciprocal compensation arrangements on a
                  nondiscriminatory basis for the origination and termination
                  of telecommunications.
                    `(N) Telecommunications services and network functions
                  provided on an unbundled basis without any conditions or
                  restrictions on the resale or sharing of those services or
                  functions, including both origination and termination of
                  telecommunications services, other than reasonable
                  conditions required by the Commission or a State. For
                  purposes of this subparagraph, it is not an unreasonable
                  condition for the Commission or a State to limit the resale--
                        `(i) of services included in the definition of
                      universal service to a telecommunications carrier who
                      intends to resell that service to a category of
                      customers different from the category of customers 
                      being offered that universal service by such carrier if
                      the Commission or State orders a carrier to provide the
                      same service to different categories of customers at
                      different prices necessary to promote universal 
                      service; or
                        `(ii) of subsidized  universal service in a manner
                      that allows companies to charge another carrier rates
                      which reflect the actual cost of providing those
                      services to that carrier, exclusive of any universal
                      service support received for providing such services in
                      accordance with section 214(d)(5).
                `(3) Joint marketing of local and long distance services:
              Until a Bell operating company is authorized to provide
              interLATA services in a telephone exchange area where that
              company is the dominant provider of wireline telephone exchange
              service or exchange access service, or until 36 months have
              passed since the enactment of the Telecommunications Act of
              1995, 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 telephone exchange
              area telephone exchange service purchased from such company 
              with interLATA services offered by that telecommunications
              carrier.
                `(4) Commission may not expand competitive checklist: The
              Commission may not, by rule or otherwise, limit or extend the
              terms used in the competitive checklist.
            `(c) In-Region Services: 
                `(1) Application: Upon the enactment of the 
              Telecommunications Act of 1995, a Bell operating company or its
              affiliate may apply to the Commission for authorization
              notwithstanding the Modification of Final Judgment to provide
              interLATA telecommunications service originating in any area
              where such Bell operating company is the dominant provider of
              wireline telephone exchange service or exchange access service.
              The application shall describe with particularity the nature 
              and scope of the activity and of each product market or service
              market, and each geographic market for which authorization is
              sought.
                `(2) Determination by commission: 
                    `(A) Determination: Not later than 90 days after 
                  receiving an application under paragraph (1), the 
                  Commission shall issue a written determination, on the
                  record after a hearing and opportunity for comment, 
                  granting or denying the application in whole or in part. 
                  Before making any determination under this subparagraph, 
                  the Commission shall consult with the Attorney General
                  regarding the application. In consulting with the 
                  Commission under this subparagraph, the Attorney General 
                  may apply any appropriate standard.
                    `(B) Approval: The Commission may only approve the
                  authorization requested in an application submitted under
                  paragraph (1) if it finds that--
                        `(i) the petitioning Bell operating company has fully
                      implemented the competitive checklist found in
                      subsection (b)(2); and
                        `(ii) the requested authority will be carried out in
                      accordance with the requirements of section 252,
                  and if the Commission determines that the requested
                  authorization is consistent with the public interest,
                  convenience, and necessity.  If the Commission does not
                  approve an application under this subparagraph, it shall
                  state the basis for its denial of the application.
                `(3) Publication: Not later than 10 days after issuing a
              determination under paragraph (2), the Commission shall publish
              in the Federal Register a brief description of the determination.
                `(4) Judicial review: 
                    `(A) Commencement of action: Not later than 45 days after
                  a determination by the Commission is published under
                  paragraph (3), the Bell operating company or its subsidiary
                  or affiliate that applied to the Commission under paragraph
                  (1), or any person who would be threatened with loss or
                  damage as a result of the determination regarding such
                  company's engaging in the activity described in its
                  application, may commence an action in any United States
                  Court of Appeals against the Commission for judicial review
                  of the determination regarding the application.
                    `(B) Judgment: 
                        `(i) The Court shall enter a judgment after reviewing
                      the determination in accordance with section 706 of
                      title 5 of the United State Code.
                        `(ii) A judgment--
            `(I) affirming any part of the determination that approves
          granting all or part of the requested authorization, or
            `(II) reversing any part of the determination that denies all or
          part of the requested authorization,
                      shall describe with particularity the nature and scope
                      of the activity, and of each product market or service
                      market, and each geographic market, to which the
                      affirmance or reversal applies.
                `(5) Requirements relating to separate affiliate; safeguards;
              and intralata toll dialing parity:
                    `(A) Separate affiliate; safeguards: Other than interLATA
                  services authorized by an order entered by the United 
                  States District Court for the District of Columbia pursuant
                  to the Modification of Final Judgment before the date of
                  enactment of the Telecommunications Act of 1995, a Bell
                  operating company, or any affiliate of such a company,
                  providing interLATA services authorized under this
                  subsection may provide such interLATA services in that
                  market only in accordance with the requirements of section
                  252.
                    `(B) Intralata toll dialing parity: 
                        `(i) A Bell operating company granted authority to
                      provide interLATA services under this subsection shall
                      provide intraLATA toll dialing parity throughout that
                      market coincident with its exercise of that authority.
                      If the Commission finds that such a Bell operating
                      company has provided interLATA service authorized under
                      this clause before its implementation of intraLATA toll
                      dialing parity throughout that market, or fails to
                      maintain intraLATA toll dialing parity throughout that
                      market, the Commission, except in cases of inadvertent
                      interruptions or other events beyond the control of the
                      Bell operating company, shall suspend the authority to
                      provide interLATA service for that market until the
                      Commission determines that intraLATA toll dialing 
                      parity is implemented or reinstated.
                        `(ii) Except for single-LATA States and States which
                      have issued an order by June 1, 1995 requiring a Bell
                      operating company to implement toll dialing parity, a
                      State may not require a Bell operating company to
                      implement toll dialing parity in an intraLATA area
                      before a Bell operating company has been granted
                      authority under this subsection to provide interLATA
                      services in that area or before three years after the
                      date of enactment of the Telecommunications Act of 
                      1995, whichever is earlier.  Nothing in this clause
                      precludes a State from issuing an order requiring toll
                      dialing parity in an intraLATA area prior to either 
                      such date so long as such order does not take effect
                      until after the earlier of either such dates.
                        `(iii) In any State in which intraLATA toll dialing
                      parity has been implemented prior to the earlier date
                      specified in clause (ii), no telecommunications carrier
                      that serves greater than five percent of the Nation's
                      presubscribed access lines may jointly market interLATA
                      telecommunications services and intraLATA toll
                      telecommunications services in a telephone exchange 
                      area in such State until a Bell operating company is
                      authorized under this subsection to provide interLATA
                      services in such telephone exchange area or until three
                      years after the date of enactment of the
                      Telecommunications Act of 1995, whichever is earlier.
            `(d) Out-of-Region Services: Effective on the date of enactment 
          of the Telecommunications Act of 1995, a Bell operating company or
          its affiliate may provide interLATA telecommunications services
          originating in any area where such company is not the dominant
          provider of wireline telephone exchange service or exchange access
          service.
            `(e) Incidental Services: 
                `(1) In general: Effective on the date of enactment of the
              Telecommunications Act of 1995, a Bell operating company or its
              affiliate may provide interLATA services that are incidental to--
                    `(A)(i) providing audio programming, video programming, 
                  or other programming services to subscribers of such company,
                    `(ii) providing the capability for interaction by such
                  subscribers to select or respond to such audio programming,
                  video programming, or other programming services, to order,
                  or control transmission of the programming, polling or
                  balloting, and ordering other goods or services,
                    `(iii) providing to distributors audio programming or
                  video programming that such company owns, controls, or is
                  licensed by the copyright owner of such programming, or by
                  an assignee of such owner, to distribute, or
                    `(iv) providing alarm monitoring services,
                    `(B) providing--
                        `(i) a telecommunications service, using the
                      transmission facilities of a cable system that is an
                      affiliate of such company, between LATAs within a cable
                      system franchise area in which such company is not, on
                      the date of enactment of the Telecommunications Act of
                      1995, a provider of wireline telephone exchange 
                      service, or
                        `(ii) two-way interactive video services or Internet
                      services over dedicated facilities to or for elementary
                      and secondary schools as defined in section 264(d),
                    `(C) providing 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
                  area, so long as the customer acts affirmatively to 
                  initiate the storage or retrieval of information, except
                  that--
                        `(i) such service shall not cover any service that
                      establishes a direct connection between end users or 
                      any real-time voice and data transmission,
                        `(ii) such service shall not include voice, data, or
                      facsimile distribution services in which the Bell
                      operating company or affiliate forwards
                      customer-supplied information to customer- or
                      carrier-selected recipients,
                        `(iii) such service shall not include any service in
                      which the Bell operating company or affiliate searches
                      for and connects with the intended recipient of
                      information, or any service in which the Bell operating
                      company or affiliate automatically forwards stored
                      voicemail or other information to the intended
                      recipient, and
                        `(iv) customers of such service shall not be billed a
                      separate charge for the interLATA telecommunications
                      furnished in conjunction with the provision of such
                      service,
                    `(D) providing signaling information used in connection
                  with the provision of telephone exchange service or 
                  exchange access service to another local exchange carrier; or
                    `(E) providing network control signaling information to,
                  and receiving such signaling information from, 
                  interexchange carriers at any location within the area in
                  which such company provides telephone exchange service or
                  exchange access service.
                `(2) Limitations: The provisions of paragraph (1) are 
              intended to be narrowly construed. The transmission facilities
              used by a Bell operating company or affiliate thereof to 
              provide interLATA telecommunications under paragraph (1)(C) and
              subsection (f) shall be leased by that company from 
              unaffiliated entities on terms and conditions (including price)
              no more favorable than those available to the competitors of
              that company until that Bell operating company receives
              authority to provide interLATA services under subsection (c). 
              The interLATA services provided under paragraph (1)(A) 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.  A Bell
              operating company may not provide telecommunications services
              not described in paragraph (1) without receiving the approvals
              required by subsection (c).  The provision of services
              authorized under this subsection by a Bell operating company or
              its affiliate shall not adversely affect telephone exchange
              ratepayers or competition in any telecommunications market.
            `(f) Commercial Mobile Service: A Bell operating company may
          provide interLATA commercial mobile service except where such
          service is a replacement for land line telephone exchange service
          for a substantial portion of the land line telephone exchange
          service in a State in accordance with section 322(c) and with the
          regulations prescribed by the Commission.
            `(g) Definitions: As used in this section--
                `(1) 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.
                `(2) 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.
            `(h) 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 area where the Bell operating company is
              the dominant provider of wireline telephone exchange service or
              exchange access service, and
                `(2) allow the called party to determine the interLATA carrier,
          shall be considered an in-region service subject to the 
          requirements of subsection (c) and not of subsection (d).'.
            (b) Long Distance Access for Commercial Mobile Services: 
                (1) In General: Notwithstanding any restriction or obligation
              imposed pursuant to the Modification of final Judgment or other
              consent decree or proposed consent decree prior to the date of
              enactment of this Act, a person engaged in the provision of
              commercial mobile services (as defined in section 332(d)(1) of
              the Communications Act of 1934), insofar as such person is so
              engaged, shall not be required by court order or otherwise to
              provide equal access to interexchange telecommunications
              carriers, except as provided by this section.  Such a person
              shall ensure that its subscribers can obtain unblocked access 
              to the provider of interexchange services of the subscriber's
              choice through the use of an interexchange carrier
              identification code assigned to such provider, except that the
              requirements for unblocking shall not apply to mobile satellite
              services unless the Commission finds it to be in the public
              interest.
                (2) Equal access requirement conditions: The Commission may
              only require a person engaged in the provision of commercial
              mobile services to provide equal access to interexchange
              carriers if--
                    (A) such person, insofar as such person is so engaged, is
                  subject to the interconnection obligations of section 
                  251(a) of the Communications Act of 1934, and
                    (B) the Commission finds that such requirement is in the
                  public interest.
          SEC. 222. REMOVAL OF MANUFACTURING RESTRICTIONS.
            (a) In General: Part II of title II (47 U.S.C. 251 et seq.), as
          added by this Act, is amended by inserting after section 255 the
          following new section:
          `SEC. 256. REGULATION OF MANUFACTURING BY BELL OPERATING COMPANIES.
            `(a) Authorization: 
                `(1) In general: Notwithstanding any restriction or 
              obligation imposed before the date of enactment of the
              Telecommunications Act of 1995 pursuant to the Modification of
              Final Judgment on the lines of business in which a Bell
              operating company may engage, if the Commission authorizes a
              Bell operating company to provide interLATA services under
              section 255, then that company may be authorized by the
              Commission to manufacture and provide telecommunications
              equipment, and to manufacture customer premises equipment, at
              any time after that determination is made, subject to the
              requirements of this section and the regulations prescribed,
              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.
                `(2) Certain research and design arrangements; royalty
              agreements: Upon adoption of rules by the Commission under
              section 252, a Bell operating company may--
                    `(A) engage in research and design activities related to
                  manufacturing, and
                    `(B) enter into royalty agreements with manufacturers of
                  telecommunications equipment.
            `(b) Separate Affiliate; Safeguards: Any manufacturing or
          provision of equipment authorized under subsection (a) shall be
          conducted in accordance with the requirements of section 252.
            `(c) Protection of Small Telephone Company Interests: 
                `(1) Equipment to be made available to others: A 
              manufacturing affiliate of a Bell operating company shall make
              available, without discrimination or self-preference as to
              price, delivery, terms, or conditions, to all local exchange
              carriers, for use with the public telecommunications network,
              any telecommunications equipment, including software integral 
              to such telecommunications equipment, including upgrades,
              manufactured by such affiliate if each such purchasing carrier--
                    `(A) does not manufacture telecommunications equipment or
                  have an affiliate which manufactures telecommunications
                  equipment; or
                    `(B) agrees to make available, to the Bell operating
                  company that is the parent of the manufacturing affiliate 
                  or any of the local exchange carrier affiliates of such 
                  Bell company, any telecommunications equipment, including
                  software integral to such telecommunications equipment,
                  including upgrades, manufactured for use with the public
                  telecommunications network by such purchasing carrier or by
                  any entity or organization with which such purchasing
                  carrier is affiliated.
                `(2) Non-discrimination standards: 
                    `(A) A Bell operating company and any entity acting on 
                  its behalf shall make procurement decisions and award all
                  supply contracts for equipment, services, and software on
                  the basis of open, competitive bidding, and an objective
                  assessment of price, quality, delivery, and other 
                  commercial factors.
                    `(B) A Bell operating company and any entity it owns or
                  otherwise controls, or which is acting on its behalf or on
                  behalf of its affiliate, shall permit any person to
                  participate fully on a non-discriminatory basis in the
                  process of establishing standards and certifying equipment
                  used in or interconnected to the public telecommunications
                  network.
                    `(C) A Bell operating company shall, consistent with the
                  antitrust laws, engage in joint network planning and design
                  with local exchange carriers operating in the same area of
                  interest.  No 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. A Bell operating company shall provide, to 
                  other local exchange carriers operating in the same area of
                  interest, timely information on the planned deployment of
                  telecommunications equipment, including software integral 
                  to such telecommunications equipment and upgrades of that
                  software.
                    `(D) A manufacturing affiliate of a Bell operating 
                  company may not restrict sales to any local exchange 
                  carrier of telecommunications equipment, including software
                  integral to the operation of such equipment and related
                  upgrades.
                    `(E) A Bell operating company and any entity it owns or
                  otherwise controls shall protect the proprietary 
                  information submitted with contract bids and in the
                  standards and certification processes from release not
                  specifically authorized by the owner of such information.
            `(d) Collaboration with Other Manufacturers: A Bell operating
          company and its affiliates may engage in close collaboration with
          any manufacturer of customer premises equipment or
          telecommunications equipment not affiliated with a Bell operating
          company during the design and development of hardware, software, or
          combinations thereof relating to such equipment.
            `(e) Information on Protocols and Technical Requirements: The
          Commission shall prescribe regulations to require that each Bell
          operating company shall 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. Such regulations shall require each
          such Bell company to 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.
            `(f) 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.
            `(g) Administration and Enforcement: 
                `(1) Commission authority: For the purposes of administering
              and enforcing the provisions of this section and the 
              regulations prescribed under this section, the Commission shall
              have the same authority, power, and functions with respect to
              any Bell operating company as the Commission has in
              administering and enforcing the provisions of this title with
              respect to any common carrier subject to this Act.
                `(2) Civil actions by injured parties: Any party injured by 
              an act or omission of a Bell operating company or its
              manufacturing affiliate which violates the requirements of
              paragraph (1) or (2) of subsection (c), or the Commission's
              regulations implementing such paragraphs, may initiate an 
              action in a district court of the United States to recover the
              full amount of damages sustained in consequence of any such
              violation and obtain such orders from the court as are 
              necessary to terminate existing violations and to prevent 
              future violations; or such party may seek relief from the
              Commission pursuant to sections 206 through 209.
            `(h) Application to Bell Communications Research: Nothing in this
          section--
                `(1) provides any authority for Bell Communications Research,
              or any successor entity, to manufacture or provide
              telecommunications equipment or to manufacture customer 
              premises equipment; or
                `(2) prohibits Bell Communications Research, 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 1995, including providing a centralized organization for the
              provision of engineering, administrative, and other services
              (including serving as a single point of contact for 
              coordination of the Bell operating companies to meet national
              security and emergency preparedness requirements).
            `(i) Definitions: As used in this section--
                `(1) The term `customer premises equipment' means equipment
              employed on the premises of a person (other than a carrier) to
              originate, route, or terminate telecommunications.
                `(2) The term `manufacturing' has the same meaning as such
              term has in the Modification of Final Judgment.
                `(3) The term `telecommunications equipment' means equipment,
              other than customer premises equipment, used by a carrier to
              provide telecommunications services.'.
            (b) Effect on Pre-existing Manufacturing Authority: Nothing in
          this section, or in section 256 of the Communications Act of 1934 
          as added by this section, prohibits any Bell operating company from
          engaging, directly or through any affiliate, in any manufacturing
          activity in which any Bell operating company or affiliate was
          authorized to engage on the date of enactment of this Act.
          SEC. 223. EXISTING ACTIVITIES.
            Nothing in this Act, or any amendment made by this Act, prohibits
          a Bell operating company from engaging, at any time after the date
          of enactment of this Act, in any activity authorized by an order
          entered by the United States District Court for the District of
          Columbia pursuant to section VII or VIII(C) of the Modification of
          Final Judgment, if such order was entered on or before the date of
          enactment of this Act.
          SEC. 224.  ENFORCEMENT.
            (a) In General: Part II of title II (47 U.S.C. 251 et seq.), as
          added by this Act, is amended by inserting after section 256 the
          following:
          `SEC. 257.  ENFORCEMENT.
            `(a) In General: In addition to any penalty, fine, or other
          enforcement remedy under this Act, the failure by a
          telecommunications carrier to implement the requirements of section
          251 or 255, including a failure to comply with the terms of an
          interconnection agreement approved under section 251, is punishable
          by a civil penalty of not to exceed $1,000,000 per offense. Each 
          day of a continuing offense shall be treated as a separate 
          violation for purposes of levying any penalty under this subsection.
            `(b) Noncompliance with Interconnection or Separate Subsidiary
          Requirements:
                `(1) A Bell operating company that repeatedly, knowingly, and
              without reasonable cause fails to implement an interconnection
              agreement approved under section 251, to comply with the
              requirements of such agreement after implementing them, or to
              comply with the separate affiliate requirements of this part 
              may be fined up to $500,000,000 by a district court of the
              United States of competent jurisdiction.
                `(2) A Bell operating company that repeatedly, knowingly, and
              without reasonable cause fails to meet its obligations under
              section 255 for the provision of interLATA service may have its
              authority to provide any service suspended if its right to
              provide that service is conditioned upon its meeting those
              obligations.
            `(c) Enforcement by Private Right of Action: 
                `(1) Damages: Any person who is injured in its business or
              property by reason of a violation of section 251 or 255 may
              bring a civil action in any district court of the United States
              in the district in which the defendant resides or is found or
              has an agent, without respect to the amount in controversy.
                `(2) Interest: The court may award under this section,
              pursuant to a motion by such person promptly made, simple
              interest on actual damages for the period beginning on the date
              of service of such person's pleading setting forth a claim 
              under this title and ending on the date of judgment, or for any
              shorter period therein, if the court finds that the award of
              such interest for such period is just in the circumstances.
            `(d) Payment of Civil Penalties, Damages, or Interest: No civil
          penalties, damages, or interest assessed against any local exchange
          carrier as a result of a violation referred to in this section will
          be charged directly or indirectly to that company's rate payers.'.
            (b) Certain Broadcasts: Section 1307(a)(2) of title 18, United
          States Code, is amended--
                (1) by striking `or' after the semicolon at the end of
              subparagraph (A);
                (2) by striking the period at the end of subparagraph (B) and
              inserting a semicolon and `or'; and
                (3) by adding at the end thereof the following:
                    `(C) conducted by a commercial organization and is
                  contained in a publication published in a State in which
                  such activities or the publication of such activities are
                  authorized or not otherwise prohibited, or broadcast by a
                  radio or television station licensed in a State in which
                  such activities or the broadcast of such activities are
                  authorized or not otherwise prohibited.'.
          SEC. 225. ALARM MONITORING SERVICES.
            Part II of title II (47 U.S.C. 251 et seq.), as added by this 
          Act, is amended by inserting after section 257 the following new
          section:
          `SEC. 258. REGULATION OF ENTRY INTO ALARM MONITORING SERVICES.
            `(a) In General: Except as provided in this section, a Bell
          operating company, or any affiliate of that company, may not 
          provide alarm monitoring services for the protection of life,
          safety, or property. A Bell operating company may transport alarm
          monitoring service signals on a common carrier basis only.
            `(b) Authority To Provide Alarm Monitoring Services: Beginning 4
          years after the date of enactment of the Telecommunications Act of
          1995, a Bell operating company may provide alarm monitoring 
          services for the protection of life, safety, or property if it has
          been authorized to provide interLATA services under section 255
          unless the Commission finds that the provision of alarm monitoring
          services by such company is not in the public interest.  The
          Commission may not find that provision of alarm monitoring services
          by a Bell operating company is in the public interest until it 
          finds that it has the capability effectively to enforce any
          requirements, limitations, or conditions that may be placed upon a
          Bell operating company in the provision of alarm monitoring
          services, including the regulations prescribed under subsection (c).
            `(c) Regulations Required: 
                `(1) Not later than 1 year after the date of enactment of the
              Telecommunications Act of 1995, the Commission shall prescribe
              regulations--
                    `(A) to establish such requirements, limitations, or
                  conditions as are--
                        `(i) necessary and appropriate in the public interest
                      with respect to the provision of alarm monitoring
                      services by Bell operating companies and their
                      affiliates, and
                        `(ii) effective at such time as a Bell operating
                      company or any of its subsidiaries or affiliates is
                      authorized to provide alarm monitoring services; and
                    `(B) to establish procedures for the receipt and review 
                  of complaints concerning violations by such companies of
                  such regulations, or of any other provision of this Act or
                  the regulations thereunder, that result in material
                  financial harm to a provider of alarm monitoring services.
                `(2) A Bell operating company, its affiliates, and any local
              exchange carrier are prohibited from recording or using 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 the Bell operating 
              company, any of its affiliates, the local exchange carrier, or
              any other entity. Any regulations necessary to enforce this
              paragraph shall be issued initially within 6 months after the
              date of enactment of the Telecommunications Act of 1995.
                `(d) Expedited Consideration Of Complaints: The procedures
              established under subsection (c) shall ensure that the
              Commission will make a final determination with respect to any
              complaint described in such subsection 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, issue a cease and desist order to prevent the
              Bell operating company and its subsidiaries and affiliates from
              continuing to engage in such violation pending such final
              determination.
            `(e) Remedies: The Commission may use any remedy available under
          title V of this Act to terminate and to impose sanctions on
          violations described in subsection (c). Such remedies may include,
          if the Commission determines that such violation was willful or
          repeated, ordering the Bell operating company or its affiliate to
          cease offering alarm monitoring services.
            `(f) Savings Provision: Subsections (a) and (b) do not prohibit 
          or limit the provision of alarm monitoring services by a Bell
          operating company or an affiliate that was engaged in providing
          those services as of June 1, 1995, to the extent that such company--
                `(1) continues to provide those services through the 
              affiliate through which it was providing them on that date; and
                `(2) does not acquire, directly or indirectly, an equity
              interest in another entity engaged in providing alarm 
              monitoring services.
            `(g) Alarm Monitoring Services Defined: As used in this section,
          the term `alarm monitoring services' means services that detect
          threats to life, safety, or property by burglary, fire, vandalism,
          bodily injury, or other emergency through the use of devices that
          transmit signals to a central point in a customer's residence, 
          place of business, or other fixed premises which--
                `(1) retransmits such signals to a remote monitoring center 
              by means of telecommunications facilities of the Bell operating
              company and any subsidiary or affiliate; and
                `(2) serves to alert persons at the monitoring center of the
              need to inform customers, other persons, or police, fire,
              rescue, or other security or public safety personnel of the
              threat at such premises.
          Such term does not include medical monitoring devices attached to
          individuals for the automatic surveillance of ongoing medical
          conditions.'.
          SEC. 226.  NONAPPLICABILITY OF MODIFICATION OF FINAL JUDGMENT.
            Notwithstanding any other provision of law or of any judicial
          order, no person shall be subject to the provisions of the
          Modification of Final Judgment solely by reason of having acquired
          commercial mobile service or private mobile service assets or
          operations previously owned by a Bell operating company or an
          affiliate of a Bell operating company.
                             TITLE III--AN END TO REGULATION
          SEC. 301. TRANSITION TO COMPETITIVE PRICING.
            (a) Pricing Flexibility: 
                (1) In general: The Commission and the States shall provide 
              to telecommunications carriers price flexibility in the rates
              charged consumers for the provision of telecommunications
              services within one year after the date of enactment of this
              Act. The Commission or a State may establish the rate consumers
              may be charged for services included in the definition of
              universal service, as well as the contribution, if any, that 
              all carriers must contribute for the preservation and
              advancement of universal service. Pricing flexibility
              implemented pursuant to this section for the purpose of 
              allowing a regulated telecommunications provider to respond to
              competition by repricing services subject to competition shall
              not have the effect of using noncompetitive services to
              subsidize competitive services.
                (2) Consumer protection: The Commission and the States shall
              ensure that rates for telephone service remain just, 
              reasonable, and affordable as competition develops for 
              telephone exchange service and telephone exchange access
              service. Until sufficient competition exists in a market, the
              Commission or a State may establish the rate that a carrier may
              charge for any such service if such rate is necessary for the
              protection of consumers. Any such rate shall cease to be
              regulated whenever the Commission or a State determines that it
              is no longer necessary for the protection of consumers. The
              Commission shall establish cost allocation guidelines for
              facilities owned by an essential telecommunications carrier 
              that are used for the provision of both services included in 
              the definition of universal service and video programming sold
              by such carrier directly to subscribers, if such allocation is
              necessary for the protection of consumers.
                (3) Rate-of-return regulation eliminated: 
                    (A) In instituting the price flexibility required under
                  paragraph (1) the Commission and the States shall establish
                  alternative forms of regulation for Tier 1
                  telecommunications carriers that do not include regulation
                  of the rate of return earned by such carrier as part of a
                  plan that provides for any or all of the following--
                        (i) the advancement of competition in the provision 
                      of telecommunications services;
                        (ii) improvements in productivity;
                        (iii) improvements in service quality;
                        (iv) measures to ensure customers of non-competitive
                      services do not bear the risks associated with the
                      provision of competitive services;
                        (v) enhanced telecommunications services for
                      educational institutions; or
                        (vi) any other measures Commission or a State, as
                      appropriate, determines to be in the public interest.
                    (B) The Commission or a State, as appropriate, may apply
                  such alternative forms of regulation to any other
                  telecommunications carrier that is subject to rate of 
                  return regulation under this Act.
                    (C) Any such alternative form of regulation--
                        (i) shall be consistent with the objectives of
                      preserving and advancing universal service, 
                      guaranteeing high quality service, ensuring just,
                      reasonable, and affordable rates, and encouraging
                      economic efficiency; and
                        (ii) shall meet such other criteria as the Commission
                      or a State, as appropriate, finds to be consistent with
                      the public interest, convenience, and necessity.
                    (D) Nothing in this section shall prohibit the 
                  Commission, for interstate services, and the States, for
                  intrastate services, from considering the profitability of
                  telecommunications carriers when using alternative forms of
                  regulation other than rate of return regulation (including
                  price regulation and incentive regulation) to ensure that
                  regulated rates are just and reasonable.
            (b) Transition Plan Required: If the Commission or a State adopts
          rules for the distribution of support payments under section 253 of
          the Communications Act of 1934, as amended by this Act, such rules
          shall include a transition plan to allow essential
          telecommunications carriers to provide for an orderly transition
          from the universal service support mechanisms in existence upon the
          date of enactment of this Act and the support mechanisms 
          established by the Commission and the States under this Act or the
          Communications Act of 1934 as amended by this Act. Any such
          transition plan shall--
                (1) provide a phase-in of the price flexibility requirements
              under subsection (a) for an essential telecommunications 
              carrier that is also a rural telephone company; and
                (2) require the United States Government and the States, 
              where permitted by law, to modify any regulatory requirements
              (including conditions for the repayment of loans and the
              depreciation of assets) applicable to carriers designated as
              essential telecommunications carriers in order to more
              accurately reflect the conditions that would be imposed in a
              competitive market for similar assets or services.
            (c) Duty to Provide Subscriber List Information: 
                (1) In general: A carrier that provides local exchange
              telephone 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
              requesting such information for the purpose of publishing
              directories in any format.
                (2) Subscriber list information defined: As used in this
              subsection, the term `subscriber list information' means any
              information--
                    (A) identifying the listed names of subscribers of a
                  carrier and such subscribers' listed telephone numbers,
                  addresses, or primary advertising classifications, as such
                  classifications are assigned at the time of the
                  establishment of service, or any combination of such names,
                  numbers, addresses, or classifications; and
                    (B) that the carrier or an affiliate has published, 
                  caused to be published, or accepted for publication in a
                  directory in any format.
            (d) Confidentiality: A telecommunications carrier has a duty to
          protect the confidentiality of proprietary information of, and
          relating to, other common carriers and customers, including common
          carriers reselling the telecommunications services provided by a
          telecommunications carrier.  A telecommunications carrier that
          receives such information from another carrier for purposes of
          provisioning, billing, or facilitating the resale of its service
          shall use such information only for such purpose, and shall not use
          such information for its own marketing efforts.  Nothing in this
          subsection prohibits a carrier from using customer information
          obtained from its customers, either directly or indirectly through
          its agents--
                (1) to provide, market, or bill for its services; or
                (2) to perform credit evaluations on existing or potential
              customers.
            (e) 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) Extensions of lines under section 214; armis reports:
              Notwithstanding section 305, the Commission shall permit any
              local exchange 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) Forebearance authority not limited: Nothing in this
              subsection shall be construed to limit the authority of the
              Commission or a State to waive, modify, or forebear from
              applying any of the requirements to which reference is made in
              paragraph (1) under any other provision of this Act or other law.
          SEC. 302. BIENNIAL REVIEW OF REGULATIONS; ELIMINATION OF 
                            UNNECESSARY REGULATIONS AND FUNCTIONS.
            (a) Biennial Review: Part II of title II (47 U.S.C. 251 et seq.),
          as added by this Act, is amended by inserting after section 258 the
          following new section:
          `SEC. 259.  REGULATORY REFORM.
            `(a) Biennial Review of Regulations: In every odd-numbered year
          (beginning with 1997), the Commission, with respect to its
          regulations under this Act, and a Federal-State Joint Board
          established under section 410, for State regulations--
                `(1) shall review all regulations issued under this Act, or
              under State law, in effect at the time of the review that apply
              to operations or activities of providers of any
              telecommunications services; and
                `(2) shall determine whether any such regulation is no longer
              necessary in the public interest as the result of meaningful
              economic competition between the providers of such service.
            `(b) Effect of Determination: The Commission shall repeal any
          regulation it determines to be no longer necessary in the public
          interest. The Joint Board shall notify the Governor of any State of
          any State regulation it determines to be no longer necessary in the
          public interest.
            `(c) Classification of Carriers: In classifying carriers 
          according to 47 CFR 32.11 and in establishing reporting 
          requirements pursuant to 47 CFR part 43 and 47 CFR 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. This
          subsection shall take effect on the date of enactment of the
          Telecommunications Act of 1995.'.
            (b) Elimination of Unnecessary Commission Regulations and
          Functions:
                (1) 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,'.
                (2) 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 subsection (f) in the same manner as if that
              person were an employee of the Commission.'.
                (3) Simplification of federal-state coordination process: The
              Commission shall simplify and expedite the Federal-State
              coordination process under section 410 of the Communications 
              Act of 1934.
                (4) Privatization of ship radio inspections: Section 385 (47
              U.S.C. 385) is amended 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.'.
                (5) Modification of construction permit requirement: Section
              319(d) (47 U.S.C. 319(d)) is amended by striking the third
              sentence and inserting the following: `The Commission may waive
              the requirement for a construction permit with respect to a
              broadcasting station in circumstances in which it deems prior
              approval to be unnecessary. In those circumstances, a
              broadcaster shall file any related license application within 
              10 days after completing construction.'.
                (6) 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.'.
                (7) Expediting instructional television fixed service
              processing: The Commission shall delegate, under section 5(c) 
              of the Communications Act of 1934, the conduct of routine
              instructional television fixed service cases to its staff for
              consideration and final action.
                (8) Delegation of equipment testing and certification to
              private laboratories: Section 302 (47 U.S.C. 302) 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.'.
                (9) 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'.
                (10) Permit operation of domestic ship and aircraft radios
              without license: Section 307(e) (47 U.S.C. 307(e)) is amended
              by--
                    (A) striking `service and the citizens band radio 
                  service' in paragraph (1) and inserting `service, citizens
                  band radio service, domestic ship radio service, domestic
                  aircraft radio service, and personal radio service'; and
                    (B) striking `service' and `citizens band radio service'
                  in paragraph (3) and inserting `service', `citizens band
                  radio service', `domestic ship radio service', `domestic
                  aircraft radio service', and `personal radio service'.
                (11) 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 (A) through (F), respectively.
                (12) Eliminate fcc jurisdiction over government-owned ship
              radio stations:
                    (A) Section 305 (47 U.S.C. 305) is amended by striking
                  subsection (b) and redesignating subsections (c) and (d) as
                  (b) and (c), respectively.
                    (B) 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,'.
                (13) Modification of amateur radio examination procedures: 
                    (A) Section 4(f)(H)(N) (47 U.S.C. 4(f)(4)(B)) is amended
                  by striking `transmissions, or in the preparation or
                  distribution of any publication used in preparation for
                  obtaining amateur station operator licenses,' and inserting
                  `transmission'.
                    (B) The Commission shall modify its rules governing the
                  amateur radio examination process by eliminating burdensome
                  record maintenance and annual financial certification
                  requirements.
                (14) Streamline non-broadcast radio license renewals: The
              Commission shall modify its rules under section 309 of the
              Communications Act of 1934 (47 U.S.C. 309) relating to renewal
              of nonbroadcast radio licenses so as to streamline or eliminate
              comparative renewal hearings where such hearings are 
              unnecessary or unduly burdensome.
          SEC. 303. REGULATORY FORBEARANCE.
            Part II of title II (47 U.S.C. 251 et seq.), as added by this 
          Act, is amended by inserting after section 259 the following new
          section:
          `SEC. 260. 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 service, or class of carriers or 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 carrier or service are just and reasonable and are not
              unjustly or unreasonably discriminatory;
                `(2) enforcement of such regulation or provision is not
              necessary for the protection of consumers or the preservation
              and advancement of universal service; and
                `(3) forbearance from applying such regulation or provision 
              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 regulation or
          provision 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) End of Regulation Process: 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 forebearance under subsection (a) within 90 days
          after the Commission receives it, unless the 90-day period is
          extended by the Commission. The Commission may extend the initial
          90-day period by an additional 60 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(i)(3), the
          Commission may not waive the unbundling requirements of section
          251(b) or 255(b)(2) under subsection (a) until it determines that
          those requirements have been fully implemented.'.
          SEC. 304.  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, or other regulating methods that remove barriers to
          infrastructure investment.
            (b) Inquiry: The Commission shall, within 2 years 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 under this section, and
          it may preempt State commissions that fail to act to ensure such
          availability.
            (c) Definitions: For purposes of this section--
                (1) Communications act terms: Any term used in this section
              which is defined in the Communications Act of 1934 shall have
              the same meaning as it has in that Act.
                (2) Advanced telecommunications capability: The term 
              `advanced telecommunications capability' means high-speed,
              switched, broadband telecommunications capability that enables
              users to originate and receive high-quality voice, data,
              graphics, and video telecommunications.
                (3) 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 Elementary and Secondary Education Act
              of 1965 (20 U.S.C. 8801).
          SEC. 305.  REGULATORY PARITY.
            Within 3 years after the date of enactment of this Act, and
          periodically thereafter, the Commission shall--
                (1) issue such modifications or terminations of the
              regulations applicable to persons offering telecommunications 
              or information services under title II, III, or VI  of the
              Communications Act of 1934 as are necessary to implement the
              changes in such Act made by this Act;
                (2) in the regulations that apply to integrated
              telecommunications service providers, take into account the
              unique and disparate histories associated with the development
              and relative market power of such providers, making such
              modifications and adjustments as are necessary in the 
              regulation of such providers as are appropriate to enhance
              competition between such providers in light of that history; and
                (3) provide for periodic reconsideration of any modifications
              or terminations made to such regulations, with the goal of
              applying the same set of regulatory requirements to all
              integrated telecommunications service providers, regardless of
              which particular telecommunications or information service may
              have been each provider's original line of business.
          SEC. 306. AUTOMATED SHIP DISTRESS AND SAFETY SYSTEMS.
            Notwithstanding any provision of the Communications Act of 1934 
          or any other provision of law or regulation, a ship documented 
          under the laws of the United States operating in accordance with 
          the Global Maritime Distress and Safety System provisions of the
          Safety of Life at Sea Convention shall not be required to be
          equipped with a radio telegraphy station operated by one or more
          radio officers or operators. This section shall take effect for 
          each vessel upon a determination by the United States Coast Guard
          that such vessel has the equipment required to implement the Global
          Maritime Distress and Safety System installed and operating in good
          working condition.
          SEC. 307.  TELECOMMUNICATIONS NUMBERING ADMINISTRATION.
            Part II of title II (47 U.S.C. 251 et seq.), as added by this 
          Act, is amended by inserting after section 260 the following new
          section:
          `SEC. 261.  TELECOMMUNICATIONS NUMBERING ADMINISTRATION.
            `(a) Interim Number Portability: In connection with any
          interconnection agreement reached under section 251 of this Act, a
          local exchange carrier shall make available interim
          telecommunications number portability, upon request, beginning on
          the date of enactment of the Telecommunications Act of 1995.
            `(b) Final Number Portability: In connection with any
          interconnection agreement reached under section 251 of this Act, a
          local exchange carrier shall make available final 
          telecommunications number portability, upon request, when the
          Commission determines that final telecommunications number
          portability is technically feasible.
            `(c) Neutral Administration of Numbering Plans: 
                `(1) Nationwide neutral number system compliance:  A
              telecommunications carrier providing telephone exchange service
              shall comply with the guidelines, plan, or rules established by
              an impartial entity designated or created by the Commission for
              the administration of a nationwide neutral number system.
                `(2) Overlay of area codes not permitted: All
              telecommunications carriers providing telephone exchange 
              service in the same telephone service area shall be permitted 
              to use the same numbering plan area code under such guideline,
              plan, or rules.
            `(d)  Costs: The cost of establishing neutral number
          administration arrangements and number portability shall be borne 
          by all telecommunications carriers on a competitively neutral basis
          as determined by the Commission.'.
          SEC. 308. ACCESS BY PERSONS WITH DISABILITIES.
            (a) In General: Part II of title II (47 U.S.C. 251 et seq.), as
          added by this Act, is amended by inserting after section 261 the
          following new section:
          `SEC. 262. 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 and 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 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 1995, 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 National
          Telecommunications and Information Administration and the National
          Institute of Standards and Technology. The Board shall review and
          update the guidelines periodically.
            `(f) Closed Captioning: 
                `(1) In general: The Commission shall ensure that--
                    `(A) video programming is accessible through closed
                  captions, if readily achievable, except as provided in
                  paragraph (2); and
                    `(B) video programming providers or owners maximize the
                  accessibility of video programming previously published or
                  exhibited through the provision of closed captions, if
                  readily achievable, except as provided in paragraph (2).
                `(2) Exemptions: Notwithstanding paragraph (1)--
                    `(A) the Commission may exempt programs, classes of
                  programs, locally produced programs, providers, classes of
                  providers, or services for which the Commission has
                  determined that the provision of closed captioning would 
                  not be readily achievable to the provider or owner of such
                  programming;
                    `(B) 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 a binding contract in effect on the date of enactment
                  of the Telecommunications Act of 1995 for the remaining 
                  term of that contract (determined without regard to any
                  extension of such term), except that nothing in this
                  subparagraph relieves a video programming provider of its
                  obligation to provide services otherwise required by 
                  Federal law; and
                    `(C) a provider of video programming or a program owner
                  may petition the Commission for an exemption from the
                  requirements of this section, and the Commission may grant
                  such a petition upon a showing that the requirements
                  contained in this section would not be readily achievable.
            `(g) Regulations: The Commission shall, not later than 24 months
          after the date of enactment of the Telecommunications Act of 1995,
          prescribe regulations to implement this section.  The regulations
          shall be consistent with the guidelines developed by the
          Architectural and Transportation Barriers Compliance Board in
          accordance with subsection (e).
            `(h) Enforcement: The Commission shall enforce this section. The
          Commission shall resolve, by final order, a complaint alleging a
          violation of this section within 180 days after the date on which
          the complaint is filed with the Commission.'.
            (b) Video Description: Within  18 months after the date of
          enactment of this Act, the Commission shall commence a study of the
          feasibility of requiring the use of video descriptions on video
          programming in order to ensure the accessibility of video
          programming to individuals with visual impairments. For purposes of
          this subsection, the term `video description' means the insertion 
          of audio narrative descriptions of a television program's key 
          visual elements into natural pauses between the program's dialogue.
          SEC. 309. RURAL MARKETS.
            Part II of title II (47 U.S.C. 251 et seq.), as added by this 
          Act, is amended by inserting after section 262 the following new
          section:
          `SEC. 263. RURAL MARKETS.
            `(a) State Authority in Rural Markets: Except as provided in
          section 251(i)(3), a State may not waive or modify any requirements
          of section 251, but may adopt statutes or regulations that are no
          more restrictive than--
                `(1) to require an enforceable commitment by each competing
              provider of telecommunications service to offer universal
              service comparable to that offered by the rural telephone
              company currently providing service in that service area, and 
              to make such service available within 24 months of the approval
              date to all consumers throughout that service area on a common
              carrier basis, either using the applicant's facilities or
              through its own facilities and resale of services using another
              carrier's facilities (including the facilities of the rural
              telephone company), and subject to the same terms, conditions,
              and rate structure requirements as those applicable to the 
              rural telephone company currently providing universal service;
                `(2) to require that the State must approve an application by
              a competing telecommunications carrier to provide services in a
              market served by a rural telephone company and that approval be
              based on sufficient written public findings and conclusions to
              demonstrate that such approval is in the public interest and
              that there will not be a significant adverse impact on users of
              telecommunications services or on the provision of universal
              service;
                `(3) to encourage the development and deployment of advanced
              telecommunications and information infrastructure and services
              in rural areas; or
                `(4) to protect the public safety and welfare, ensure the
              continued quality of telecommunications and information
              services, or safeguard the rights of consumers.
            `(b) Preemption: Upon a proper showing, the Commission may 
          preempt any State statute or regulation that the Commission finds 
          to be inconsistent with the Commission's regulations implementing
          this section, or an arbitrary or unreasonably discriminatory
          application of such statute or regulation. The Commission shall act
          upon any bona fide petition filed under this subsection within 180
          days of receiving such petition. Pending such action, the 
          Commission may, in the public interest, suspend or modify
          application of any statute or regulation to which the petition
          applies.'.
          SEC. 310. TELECOMMUNICATIONS SERVICES FOR HEALTH CARE PROVIDERS FOR
                            RURAL AREAS, EDUCATIONAL PROVIDERS, AND LIBRARIES.
            Part II of title II (47 U.S.C. 251 et seq.), as added by this 
          Act, is amended by inserting after section 263 the following:
          `SEC. 264.  TELECOMMUNICATIONS SERVICES FOR CERTAIN PROVIDERS.
            `(a) In General: 
                `(1) 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, including
              instruction relating to such services, at rates that are
              reasonably comparable to rates charged for similar services in
              urban areas to any public or nonprofit health care provider 
              that serves persons who reside in rural areas. A
              telecommunications carrier providing service pursuant to this
              paragraph shall be entitled to have an amount equal to the
              difference, if any, between the price for services provided to
              health care providers for rural areas and the price for similar
              services provided to other customers in comparable urban areas
              treated as a service obligation as a part of its obligation to
              participate in the mechanisms to preserve and advance universal
              service under section 253(c).
                `(2) Educational providers and libraries: All
              telecommunications carriers serving a geographic area shall,
              upon a bona fide request, provide to elementary schools,
              secondary schools, and libraries universal services (as defined
              in section 253) that permit such schools and libraries to
              provide or receive telecommunications services 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 and the States determine is appropriate and
              necessary to ensure affordable access to and use of such
              telecommunications by such entities. A telecommunications
              carrier providing service pursuant to this paragraph shall be
              entitled to have an amount equal to the amount of the discount
              treated as a service obligation as part of its obligation to
              participate in the mechanisms to preserve and advance universal
              service under section 253(c).
            `(b) Universal Service Mechanisms: The Commission shall include
          consideration of the universal service provided to public
          institutional telecommunications users in any universal service
          mechanism it may establish under section 253.
            `(c) Advanced Services: The Commission shall establish rules--
                `(1) to enhance, to the extent technically feasible and
              economically reasonable, the availability of advanced
              telecommunications and information services to all public and
              nonprofit elementary and secondary school classrooms, health
              care providers, and libraries;
                `(2) to ensure that appropriate functional requirements or
              performance standards, or both, including interconnection
              standards, are established for telecommunications carriers that
              connect such public institutional telecommunications users with
              the public switched network;
                `(3) to define the circumstances under which a
              telecommunications carrier may be required to connect its
              network to such public institutional telecommunications users;
              and
                `(4) to address other matters as the Commission may determine.
            `(d) Definitions: 
                `(1) 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 Elementary and Secondary Education Act
              of 1965 (20 U.S.C. 8801).
                `(2) Universal service: The Commission may in the public
              interest provide a separate definition of universal service
              under section 253(b) for application only to public
              institutional telecommunications users.
                `(3) Health care provider: The term `health care provider'
              means--
                    `(A) Post-secondary educational institutions, teaching
                  hospitals, and medical schools.
                    `(B) Community health centers or health centers providing
                  health care to migrants.
                    `(C) Local health departments or agencies.
                    `(D) Community mental health centers.
                    `(E) Not-for-profit hospitals.
                    `(F) Rural health clinics.
                    `(G) Consortia of health care providers consisting of one
                  or more entities described in subparagraphs (A) through (F).
                `(4) 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 subsection.
            `(e) Terms and Conditions: Telecommunications services and 
          network capacity provided under this section may not be sold,
          resold, or otherwise transferred in consideration for money or any
          other thing of value.
            `(f) Eligibility of Community Users: No entity listed in this
          section shall be entitled for preferential rates or treatment as
          required by this section, if such entity operates as a for-profit
          business, is a school as defined in section 264(d)(1) with an
          endowment of more than $50,000,000, or is a library not eligible 
          for participation in State-based plans for Library Services and
          Construction Act Title III funds.'.
          SEC. 311. PROVISION OF PAYPHONE SERVICE AND TELEMESSAGING SERVICE.
            Part II of title II (47 U.S.C. 251 et seq.), as added by this 
          Act, is amended by adding after section 264 the following new
          section:
          `SEC. 265.  PROVISION OF PAYPHONE SERVICE AND TELEMESSAGING SERVICE.
            `(a) Nondiscrimination Safeguards: Any Bell operating company 
          that provides payphone service or telemessaging service--
                `(1) shall not subsidize its payphone service or 
              telemessaging service directly or indirectly with revenue from
              its telephone exchange service or its exchange access service;
              and
                `(2) shall not prefer or discriminate in favor of its 
              payphone service or telemessaging service.
            `(b) Definitions: As used in this section--
                `(1) The term `payphone service' means the provision of
              telecommunications service through public or semi-public pay
              telephones, and includes the provision of service to inmates in
              correctional institutions.
                `(2) 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.
            `(c) Regulations: Not later than 18 months after the date of
          enactment of the Telecommunications Act of 1995, the Commission
          shall complete a rulemaking proceeding to prescribe regulations to
          carry out this section.  In that rulemaking proceeding, the
          Commission shall determine whether, in order to enforce the
          requirements of this section, it is appropriate to require the Bell
          operating companies to provide payphone service or telemessaging
          service through a separate subsidiary that meets the requirements 
          of section 252.'.
          SEC. 312.  DIRECT BROADCAST SATELLITE.
            (a) DBS Signal Security: Section 705(e)(4) (47 U.S.C. 605(e)(4))
          is amended by inserting `satellite delivered video or audio
          programming intended for direct receipt by subscribers in their
          residences or in their commercial or business premises,' 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.  For purposes of 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 used in the initial uplink process to the
          direct-to-home satellite.'.
               TITLE IV--OBSCENE, HARRASSING, AND WRONGFUL UTILIZATION OF
                              TELECOMMUNICATIONS FACILITIES
          SEC. 401. SHORT TITLE.
            This title may be cited as the `Communications Decency Act of
          1995'.
          SEC. 402. OBSCENE OR HARASSING USE OF TELECOMMUNICATIONS FACILITIES
                            UNDER THE COMMUNICATIONS ACT OF 1934.
            (a) Offenses: Section 223 (47 U.S.C. 223) is amended--
                `(1) by striking subsection (a) and inserting in lieu thereof:
            `(a) Whoever--
                `(1) in the District of Columbia or in interstate or foreign
              communications--
                    `(A) by means of 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) 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;
                    `(C) makes or causes the telephone of another repeatedly
                  or continuously to ring, with intent to harass any person 
                  at the called number; or
                    `(D) 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;
                `(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 not more than $100,000 or imprisoned not more than
          two years, or both.'; and
                (2) by adding at the end the following new subsections:
            `(d) Whoever--
                `(1) knowingly within the United States or in foreign
              communications with the United States by means of
              telecommunications device makes or makes available any obscene
              communication in any form including any comment, request,
              suggestion, proposal, or image regardless of whether the maker
              of such communication placed the call or initiated the
              communications; or
                `(2) knowingly permits any telecommunications facility under
              such person's control to be used for an activity prohibited by
              subsection (d)(1) with the intent that it be used for such
              activity;
          shall be fined not more than $100,000 or imprisoned not more than
          two years, or both.
            `(e) Whoever--
                `(1) knowingly within the United States or in foreign
              communications with the United States by means of
              telecommunications device makes or makes available any indecent
              communication in any form including any comment, request,
              suggestion, proposal, image, to any person under 18 years of 
              age regardless of whether the maker of such communication 
              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 not more than $100,000 or imprisoned not more than
          two years, or both.
            `(f) Defenses to the subsections (a), (d), and (e), restrictions
          on access, judicial remedies respecting restrictions for persons
          providing information services and access to information services--
                `(1) No person shall be held to have violated subsections 
              (a), (d), or (e) solely for providing access or connection to 
              or from a facility, system, or network over which that person
              has no control, including related capabilities which are
              incidental to providing access or connection. This subsection
              shall not be applicable to a person who is owned or controlled
              by, or a conspirator with, an entity actively involved in the
              creation, editing or knowing distribution of communications
              which violate this section.
                `(2) 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 employment or agency
              and the employer has knowledge of, authorizes, or ratifies the
              employee's or agent's conduct.
                `(3) It is a defense to prosecution under subsection (a),
              (d)(2), or (e) that a person has taken reasonable, effective 
              and appropriate actions in good faith to restrict or prevent 
              the transmission of, or access to a communication specified in
              such subsections, or complied with procedures as the Commission
              may prescribe in furtherance of this section. Until such
              regulations become effective, it is a defense to prosecution
              that the person has complied with the procedures prescribed by
              regulation pursuant to subsection (b)(3). Nothing in this
              subsection shall be construed to treat enhanced information
              services as common carriage.
                `(4) No cause of action may be brought in any court or
              administrative agency against any person on account of any
              activity which is not in violation of any law punishable by
              criminal or civil penalty, which activity 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.
            `(g) No State or local government may impose any liability for
          commercial activities or actions by commercial entities in
          connection with an activity or action which constitutes a violation
          described in subsection (a)(2), (d)(2), or (e)(2) 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.
            `(h) Nothing in subsection (a), (d), (e), or (f) or in the
          defenses to prosecution under (a), (d), or (e) shall be construed 
          to affect or limit the application or enforcement of any other
          Federal law.
            `(i) The use of the term `telecommunications device' in this
          section shall not impose new obligations on (one-way) broadcast
          radio or (one-way) broadcast television operators licensed by the
          Commission or (one-way) cable service registered with the Federal
          Communications Commission and covered by obscenity and indecency
          provisions elsewhere in this Act.
            `(j) Within two years from the date of enactment and every two
          years thereafter, the Commission shall report on the effectiveness
          of this section.'.
          SEC. 403. OBSCENE PROGRAMMING ON CABLE TELEVISION.
            Section 639 (47 U.S.C. 559) is amended by striking `$10,000' and
          inserting `$100,000'.
          SEC. 404. BROADCASTING OBSCENE LANGUAGE ON RADIO.
            Section 1464 of title 18, United States Code, is amended by
          striking out `$10,000' and inserting `$100,000'.
          SEC. 405. SEPARABILITY.
            (a) If any provision of this title, including amendments to this
          title or the application thereof to any person or circumstance is
          held invalid, the remainder of this title and the application of
          such provision to other persons or circumstances shall not be
          affected thereby.
          SEC. 406. ADDITIONAL PROHIBITION ON BILLING FOR TOLL-FREE TELEPHONE
                            CALLS.
            Section 228(c)(7) (47 U.S.C. 228(c)(7)) is amended--
                (1) by striking `or' at the end of subparagraph (C);
                (2) by striking the period at the end of subparagraph (D) and
              inserting a semicolon and `or'; and
                (3) 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.'.
          SEC. 407. 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. SCRAMBLING OF CABLE CHANNELS FOR NONSUBSCRIBERS.
            `(a) Requirement: In providing video programming unsuitable for
          children to any subscriber through a cable system, a cable operator
          shall fully scramble or otherwise fully block the video and audio
          portion of each channel carrying such programming upon subscriber
          request and without any charge 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 received by persons unauthorized to
          receive the programming.'.
          SEC. 408. 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. SCRAMBLING OF SEXUALLY EXPLICIT ADULT VIDEO SERVICE
                            PROGRAMMING.
            `(a) Requirement: In providing sexually explicit adult 
          programming or other programming that is indecent and harmful to
          children 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) 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 audio and video portions of the programming cannot be received
          by persons unauthorized to receive the programming.'.
            (b) Effective Date: The amendment made by subsection (a) shall
          take effect 30 days after the date of the enactment of this Act.
          SEC. 409. 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'.
            (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'.
          SEC. 410. RESTRICTIONS ON ACCESS BY CHILDREN TO OBSCENE AND 
                            INDECENT MATERIAL ON ELECTRONIC INFORMATION
                            NETWORKS OPEN TO THE PUBLIC.
            (a) Availability of Tag Information: In order--
                (1) to encourage the voluntary use of tags in the names,
              addresses, or text of electronic files containing obscene,
              indecent, or mature text or graphics that are made available to
              the public through public information networks in order to
              ensure the ready identification of files containing such text 
              or graphics;
                (2) to encourage developers of computer software that 
              provides access to or interface with a public information
              network to develop software that permits users of such software
              to block access to or interface with text or graphics 
              identified by such tags; and
                (3) to encourage the telecommunications industry and the
              providers and users of public information networks to take
              practical actions (including the establishment of a board
              consisting of appropriate members of such industry, providers,
              and users) to develop a highly effective means of preventing 
              the access of children through public information networks to
              electronic files that contain such text or graphics,
          the Secretary of Commerce shall take appropriate steps to make
          information on the tags established and utilized in voluntary
          compliance with this subsection available to the public through
          public information networks.
            (b) Report: Not later than 1 year after the date of the enactment
          of this Act, the Comptroller General shall submit to Congress a
          report on the tags established and utilized in voluntary compliance
          with this section. The report shall--
                (1) describe the tags so established and utilized;
                (2) assess the effectiveness of such tags in preventing the
              access of children to electronic files that contain obscene,
              indecent, or mature text or graphics through public information
              networks; and
                (3) provide recommendations for additional means of 
              preventing such access.
            (c) Definitions: In this section:
                (1) The term `public information network' means the Internet,
              electronic bulletin boards, and other electronic information
              networks that are open to the public.
                (2) The term `tag' means a part or segment of the name,
              address, or text of an electronic file.
                         TITLE V--PARENTAL CHOICE IN TELEVISION
          SEC. 501. SHORT TITLE.
            This title may be cited as the `Parental Choice in Television Act
          of 1995'.
          SEC. 502. FINDINGS.
            Congress makes the following findings:
                (1) On average, a child in the United States is exposed to 27
              hours of television each week and some children are exposed to
              as much as 11 hours of television each day.
                (2) The average American child watches 8,000 murders and
              100,000 acts of other violence on television by the time the
              child completes elementary school.
                (3) By the age of 18 years, the average American teenager has
              watched 200,000 acts of violence on television, including 
              40,000 murders.
                (4) On several occasions since 1975, The Journal of the
              American Medical Association has alerted the medical community
              to the adverse effects of televised violence on child
              development, including an increase in the level of aggressive
              behavior and violent behavior among children who view it.
                (5) The National Commission on Children recommended in 1991
              that producers of television programs exercise greater 
              restraint in the content of programming for children.
                (6) A report of the Harry Frank Guggenheim Foundation, dated
              May 1993, indicates that there is an irrefutable connection
              between the amount of violence depicted in the television
              programs watched by children and increased aggressive behavior
              among children.
                (7) It is a compelling National interest that parents be
              empowered with the technology to block the viewing by their
              children of television programs whose content is overly violent
              or objectionable for other reasons.
                (8) Technology currently exists to permit the manufacture of
              television receivers that are capable of permitting parents to
              block television programs having violent or otherwise
              objectionable content.
          SEC. 503. RATING CODE FOR VIOLENCE AND OTHER OBJECTIONABLE CONTENT
                            ON TELEVISION.
            (a) Sense of Congress on Voluntary Establishment of Rating Code:
          It is the sense of Congress--
                (1) to encourage appropriate representatives of the broadcast
              television industry and the cable television industry to
              establish in a voluntary manner rules for rating the level of
              violence or other objectionable content in television
              programming, including rules for the transmission by television
              broadcast stations and cable systems of--
                    (A) signals containing ratings of the level of violence 
                  or objectionable content in such programming; and
                    (B) signals containing specifications for blocking such
                  programming;
                (2) to encourage such representatives to establish such rules
              in consultation with appropriate public interest groups and
              interested individuals from the private sector; and
                (3) to encourage television broadcasters and cable operators
              to comply voluntarily with such rules upon the establishment of
              such rules.
            (b) Requirement for Establishment of Rating Code: 
                (1) In general: If the representatives of the broadcast
              television industry and the cable television industry do not
              establish the rules referred to in subsection (a)(1) by the end
              of the 1-year period beginning on the date of the enactment of
              this Act, there shall be established on the day following the
              end of that period a commission to be known as the Television
              Rating Commission (hereafter in this section referred to as the
              `Television Commission'). The Television Commission shall be an
              independent establishment in the executive branch as defined
              under section 104 of title 5, United States Code.
                (2) Members: 
                    (A) In general: The Television Commission shall be
                  composed of 5 members appointed by the President, by and
                  with the advice and consent of the Senate, of whom--
                        (i) three shall be individuals who are members of
                      appropriate public interest groups or are interested
                      individuals from the private sector; and
                        (ii) two shall be representatives of the broadcast
                      television industry and the cable television industry.
                    (B) Nomination: Individuals shall be nominated for
                  appointment under subparagraph (A) not later than 60 days
                  after the date of the establishment of the Television
                  Commission.
                    (D) Terms: Each member of the Television Commission shall
                  serve until the termination of the commission.
                    (E) Vacancies: A vacancy on the Television Commission
                  shall be filled in the same manner as the original
                  appointment.
                (2) Duties of television commission: The Television 
              Commission shall establish rules for rating the level of
              violence or other objectionable content in television
              programming, including rules for the transmission by television
              broadcast stations and cable systems of--
                    (A) signals containing ratings of the level of violence 
                  or objectionable content in such programming; and
                    (B) signals containing specifications for blocking such
                  programming.
                (3) Compensation of Members: 
                    (A) Chairman: The Chairman of the Television Commission
                  shall be paid at a rate equal to the daily equivalent of 
                  the minimum annual rate of basic pay payable for level IV 
                  of the Executive Schedule under section 5314 of title 5,
                  United States Code, for each day (including traveltime)
                  during which the Chairman is engaged in the performance of
                  duties vested in the commission.
                    (B) Other members: Except for the Chairman who shall be
                  paid as provided under subparagraph (A), each member of the
                  Television Commission shall be paid at a rate equal to the
                  daily equivalent of the minimum annual rate of basic pay
                  payable for level V of the Executive Schedule under section
                  5315 of title 5, United States Code, for each day 
                  (including traveltime) during which the member is engaged 
                  in the performance of duties vested in the commission.
                (4) Staff: 
                    (A) In general: The Chairman of the Television Commission
                  may, without regard to the civil service laws and
                  regulations, appoint and terminate an executive director 
                  and such other additional personnel as may be necessary to
                  enable the commission to perform its duties. The employment
                  of an executive director shall be subject to confirmation 
                  by the commission.
                    (B) Compensation: The Chairman of the Television
                  Commission may fix the compensation of the executive
                  director and other personnel without regard to the
                  provisions of chapter 51 and subchapter III of chapter 53 
                  of title 5, United States Code, relating to classification
                  of positions and General Schedule pay rates, except that 
                  the rate of pay for the executive director and other
                  personnel may not exceed the rate payable for level V of 
                  the Executive Schedule under section 5316 of such title.
                (5) Consultants: The Television Commission may procure by
              contract, to the extent funds are available, the temporary or
              intermittent services of experts or consultants under section
              3109 of title 5, United States Code.  The commission shall give
              public notice of any such contract before entering into such
              contract.
                (6) Funding: There is authorized to be appropriated to the
              Commission such sums as are necessary to enable the Commission
              to carry out its duties under this Act.
          SEC. 504. REQUIREMENT FOR MANUFACTURE OF TELEVISIONS THAT BLOCK
                            PROGRAMS.
            (a) Requirement: Section 303 (47 U.S.C. 303), as amended by this
          Act, is further amended by adding at the end the following:
            `(w) Require, in the case of apparatus designed to receive
          television signals that are manufactured in the United States or
          imported for use in the United States and that have a picture 
          screen 13 inches or greater in size (measured diagonally), that 
          such apparatus--
                `(1) be equipped with circuitry designed to enable viewers to
              block the display of channels during particular time slots; and
                `(2) enable viewers to block display of all programs with a
              common rating.'.
            (b) Implementation: In adopting the requirement set forth in
          section 303(w) of the Communications Act of 1934, as added by
          subsection (a), the Federal Communications Commission, in
          consultation with the television receiver manufacturing industry,
          shall determine a date for the applicability of the requirement to
          the apparatus covered by that section.
          SEC. 505. SHIPPING OR IMPORTING OF TELEVISIONS THAT BLOCK PROGRAMS.
            (a) Regulations: Section 330 (47 U.S.C. 330) is amended--
                (1) by redesignating subsection (c) as subsection (d); and
                (2) by adding after subsection (b) the following new
              subsection (c):
            `(c)(1) Except as provided in paragraph (2), no person shall ship
          in interstate commerce, manufacture, assemble, or import from any
          foreign country into the United States any apparatus described in
          section 303(w) of this Act except in accordance with rules
          prescribed by the Commission pursuant to the authority granted by
          that section.
            `(2) This subsection shall not apply to carriers transporting
          apparatus referred to in paragraph (1) without trading it.
            `(3) The rules prescribed by the Commission under this subsection
          shall provide performance standards for blocking technology. Such
          rules shall require that all such apparatus be able to receive
          transmitted rating signals which conform to the signal and blocking
          specifications established by 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.'.
            (b) Conforming Amendment: Section 330(d), as redesignated by
          subsection (a)(1), is amended by striking `section 303(s), and
          section 303(u)' and inserting in lieu thereof `and sections 303(s),
          303(u), and 303(w)'.
               TITLE VI--NATIONAL EDUCATION TECHNOLOGY FUNDING CORPORATION
          SEC. 601. SHORT TITLE.
            This title may be cited as the `National Education Technology
          Funding Corporation Act of 1995'.
          SEC. 602. FINDINGS; PURPOSE.
            (a) Findings: The Congress finds as follows:
                (1) 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.
                (2) 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--
                    (A) five members are representative of public agencies
                  representative of schools and public libraries;
                    (B) five members are representative of State government,
                  including persons knowledgeable about State finance,
                  technology and education; and
                    (C) five members are representative of the private 
                  sector, with expertise in network technology, finance and
                  management.
                (3) Corporate purposes: The purposes of the Corporation, as
              set forth in its articles of incorporation, are--
                    (A) to leverage resources and stimulate private 
                  investment in education technology infrastructure;
                    (B) to designate State education technology agencies to
                  receive loans, grants or other forms of assistance from the
                  Corporation;
                    (C) to establish criteria for encouraging States to--
                        (i) create, maintain, utilize and upgrade interactive
                      high capacity networks capable of providing 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;
                    (D) 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;
                    (E) to leverage resources to provide maximum aid to
                  elementary schools, secondary schools and public libraries;
                  and
                    (F) 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.
            (b) Purpose: The purpose of this title 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.
          SEC. 603. DEFINITIONS.
            For the purpose of this title--
                (1) the term `Corporation' means the National Education
              Technology Funding Corporation described in section 602(a)(1);
                (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.
          SEC. 604. ASSISTANCE FOR EDUCATION TECHNOLOGY PURPOSES.
            (a) Receipt by Corporation: Notwithstanding any other provision 
          of law, in order to carry out the corporate purposes described in
          section 602(a)(3), 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.
            (b) Agreement: In order to receive any assistance described in
          subsection (a) the Corporation shall enter into an agreement with
          the Federal department or agency providing such assistance, under
          which the Corporation agrees--
                (1) 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 section 602(a)(3);
                (2) to review the activities of State education technology
              agencies and other entities receiving assistance from the
              Corporation to assure that the corporate purposes described in
              section 602(a)(3) are carried out;
                (3) 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;
                (4) that the Board of Directors of the Corporation will adopt
              policies and procedures to prevent conflicts of interest;
                (5) to maintain a Board of Directors of the Corporation
              consistent with section 602(a)(2);
                (6) that the Corporation, and any entity receiving the
              assistance from the Corporation, are subject to the appropriate
              oversight procedures of the Congress; and
                (7) to comply with--
                    (A) the audit requirements described in section 605; and
                    (B) the reporting and testimony requirements described in
                  section 606.
            (c) Construction: Nothing in this title 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.
          SEC. 605. AUDITS
            (a) Audits by Independent Certified Public Accountants: 
                (1) 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 members of a nationally recognized accounting firm and
              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.
                (2) Reporting requirements: The report of each annual audit
              described in paragraph (1) shall be included in the annual
              report required by section 606(a).
            (b) Recordkeeping Requirements; Audit and Examination of Books: 
                (1) Recordkeeping requirements: The Corporation shall ensure
              that each recipient of assistance from the Corporation keeps--
                    (A) separate accounts with respect to such assistance;
                    (B) 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;
                        (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
                    (C) such other records as will facilitate an effective
                  audit.
                (2) 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.
          SEC. 606. ANNUAL REPORT; TESTIMONY TO THE CONGRESS.
            (a) 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 title and may include such
          recommendations as the Corporation deems appropriate.
            (b) 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 subsection (a), the report of any audit
          made by the Comptroller General pursuant to this title, or any 
          other matter which any such committee may determine appropriate.
                           TITLE VII--MISCELLANEOUS PROVISIONS
          SEC. 701. SPECTRUM AUCTIONS.
            (a) Findings: The Congress finds that--
                (1) the National Telecommunications and Information
              Administration of the Department of Commerce recently submitted
              to the Congress a report entitled `U.S. National Spectrum
              Requirements' as required by section 113 of the National
              Telecommunications and Information Administration Organization
              Act (47 U.S.C. 923);
                (2) based on the best available information the report
              concludes that an additional 179 megahertz of spectrum will be
              needed within the next ten years to meet the expected demand 
              for land mobile and mobile satellite radio services such as
              cellular telephone service, paging services, personal
              communication services, and low earth orbiting satellite
              communications systems;
                (3) a further 85 megahertz of additional spectrum, for a 
              total of 264 megahertz, is needed if the United States is to
              fully implement the Intelligent Transportation System currently
              under development by the Department of Transportation;
                (4) as required by part B of the National Telecommunications
              and Information Administration Organization Act (47 U.S.C. 921
              et seq.) the Federal Government will transfer 235 megahertz of
              spectrum from exclusive government use to non-governmental or
              mixed governmental and non-governmental use between 1994 and
              2004;
                (5) the Spectrum Reallocation Final Report submitted to
              Congress under section 113 of the National Telecommunications
              and Information Administration Organization Act by the National
              Telecommunications and Information Administration states that,
              of the 235 megahertz of spectrum identified for reallocation
              from governmental to non-governmental or mixed use--
                    (A) 50 megahertz has already been reallocated for
                  exclusive non-governmental use,
                    (B) 45 megahertz will be reallocated in 1995 for both
                  exclusive non-governmental and mixed governmental and
                  non-governmental use,
                    (C) 25 megahertz will be reallocated in 1997 for 
                  exclusive non-governmental use,
                    (D) 70 megahertz will be reallocated in 1999 for both
                  exclusive non-governmental and mixed governmental and
                  non-governmental use, and
                    (E) the final 45 megahertz will be reallocated for mixed
                  governmental and non-governmental use by 2004;
                (6) the 165 megahertz of spectrum that are not yet
              reallocated, combined with 80 megahertz that the Federal
              Communications Commission is currently holding in reserve for
              emerging technologies, are less than the best estimates of
              projected spectrum needs in the United States;
                (7) the authority of the Federal Communications Commission to
              assign radio spectrum frequencies using an auction process
              expires on September 30, 1998;
                (8) a significant portion of the reallocated spectrum will 
              not yet be assigned to non-governmental users before that
              authority expires;
                (9) the transfer of Federal governmental users from certain
              valuable radio frequencies to other reserved frequencies could
              be expedited if Federal governmental users are permitted to
              accept reimbursement for relocation costs from non-governmental
              users; and
                (10) non-governmental reimbursement of Federal governmental
              users relocation costs would allow the market to determine the
              most efficient use of the available spectrum.
            (b) Extension and Expansion of Auction Authority: Section 309(j)
          (47 U.S.C. 309(j)) is amended--
                (1) by striking paragraph (1) and inserting in lieu thereof
              the following:
                `(1) General authority: If mutually exclusive applications or
              requests are accepted for any initial license or construction
              permit which will involve a use of the electromagnetic 
              spectrum, then the Commission shall grant such license or 
              permit to a qualified applicant through a system of competitive
              bidding that meets the requirements of this subsection. The
              competitive bidding authority granted by this subsection shall
              not apply to licenses or construction permits issued by the
              Commission for public safety radio services or for licenses or
              construction permits for new terrestrial digital television
              services assigned by the Commission to existing terrestrial
              broadcast licensees to replace their current television
              licenses.';
                (2) by striking paragraph (2) and renumbering paragraphs (3)
              through (13) as (2) through (12), respectively; and
                (3) by striking `1998' in paragraph (10), as renumbered, and
              inserting in lieu thereof `2000'.
            (c) Reimbursement of Federal Relocation Costs: Section 113 of the
          National Telecommunications and Information Administration Act (47
          U.S.C. 923) is amended by adding at the end the following new
          subsections:
            `(f) Relocation of Federal Government Stations: 
                `(1) In general: In order to expedite the efficient use of 
              the electromagnetic spectrum and notwithstanding section 
              3302(b) of title 31, United States Code, any Federal entity
              which operates a Federal Government station may accept
              reimbursement from any person for the costs incurred by such
              Federal entity for any modification, replacement, or reissuance
              of equipment, facilities, operating manuals, regulations, or
              other expenses incurred by that entity in relocating the
              operations of its Federal Government station or stations from
              one or more radio spectrum frequencies to any other frequency 
              or frequencies. Any such reimbursement shall be deposited in 
              the account of such Federal entity in the Treasury of the 
              United States. Funds deposited according to this section shall
              be available, without appropriation or fiscal year limitation,
              only for the operations of the Federal entity for which such
              funds were deposited under this section.
                `(2) Process for relocation: Any person seeking to relocate a
              Federal Government station that has been assigned a frequency
              within a band allocated for mixed Federal and non-Federal use
              may submit a petition for such relocation to NTIA. The NTIA
              shall limit the Federal Government station's operating license
              to secondary status when the following requirements are met--
                    `(A) the person seeking relocation of the Federal
                  Government station has guaranteed reimbursement through
                  money or in-kind payment of all relocation costs incurred 
                  by the Federal entity, including all engineering, 
                  equipment, site acquisition and construction, and 
                  regulatory fee costs;
                    `(B) the person seeking relocation completes all
                  activities necessary for implementing the relocation,
                  including construction of replacement facilities (if
                  necessary and appropriate) and identifying and obtaining on
                  the Federal entity's behalf new frequencies for use by the
                  relocated Federal Government station (where such station is
                  not relocating to spectrum reserved exclusively for Federal
                  use); and
                    `(C) any necessary replacement facilities, equipment
                  modifications, or other changes have been implemented and
                  tested to ensure that the Federal Government station is 
                  able to successfully accomplish its purposes.
                `(3) Right to reclaim: If within one year after the 
              relocation the Federal Government station demonstrates to the
              Commission that the new facilities or spectrum are not
              comparable to the facilities or spectrum from which the Federal
              Government station was relocated, the person seeking such
              relocation must take reasonable steps to remedy any defects or
              reimburse the Federal entity for the costs of returning the
              Federal Government station to the spectrum from which such
              station was relocated.
            `(g) Federal Action to Expedite Spectrum Transfer: Any Federal
          Government station which operates on electromagnetic spectrum that
          has been identified for reallocation for mixed Federal and
          non-Federal use in the Spectrum Reallocation Final Report shall, to
          the maximum extent practicable through the use of the authority
          granted under subsection (f) and any other applicable provision of
          law, take action to relocate its spectrum use to other frequencies
          that are reserved for Federal use or to consolidate its spectrum 
          use with other Federal Government stations in a manner that
          maximizes the spectrum available for non-Federal use.
          Notwithstanding the timetable contained in the Spectrum 
          Reallocation Final Report, the President shall seek to implement 
          the reallocation of the 1710 to 1755 megahertz frequency band by
          January 1, 2000. Subsection (c)(4) of this section shall not apply
          to the extent that a non-Federal user seeks to relocate or 
          relocates a Federal power agency under subsection (f).
            `(h) Definitions: For purposes of this section--
                `(1) Federal entity: The term `Federal entity' means any
              Department, agency, or other element of the Federal Government
              that utilizes radio frequency spectrum in the conduct of its
              authorized activities, including a Federal power agency.
                `(2) Spectrum Reallocation Final Report: The term `Spectrum
              Reallocation Final Report' means the report submitted by the
              Secretary to the President and Congress in compliance with the
              requirements of subsection (a).'.
            (d) Reallocation of Additional Spectrum: The Secretary of 
          Commerce shall, within 9 months after the date of enactment of this
          Act, prepare and submit to the President and the Congress a report
          and timetable recommending the reallocation of the two frequency
          bands (3625-3650 megahertz and 5850-5925 megahertz) that were
          discussed but not recommended for reallocation in the Spectrum
          Reallocation Final Report under section 113(a) of the National
          Telecommunications and Information Administration Organization Act.
          The Secretary shall consult with the Federal Communications
          Commission and other Federal agencies in the preparation of the
          report, and shall provide notice and an opportunity for public
          comment before submitting the report and timetable required by this
          section.
            (e) Broadcast Auxiliary Spectrum Relocation: 
                (1) Allocation of spectrum for broadcast auxiliary uses:
              Within one year after the date of enactment of this Act, the
              Commission shall allocate the 4635-4685 megahertz band
              transferred to the Commission under section 113(b) of the
              National Telecommunications and Information Administration
              Organization Act (47 U.S.C. 923(b)) for broadcast auxiliary uses.
                (2) Mandatory relocation of broadcast auxiliary uses: Within 
              7 years after the date of enactment of this Act, all licensees
              of broadcast auxiliary spectrum in the 2025-2075 megahertz band
              shall relocate into spectrum allocated by the Commission under
              paragraph (1). The Commission shall assign and grant licenses
              for use of the spectrum allocated under paragraph (1)--
                    (A) in a manner sufficient to permit timely completion of
                  relocation; and
                    (B) without using a competitive bidding process.
                (3) Assigning recovered spectrum: Within 5 years after the
              date of enactment of this Act, the Commission shall allocate 
              the spectrum recovered in the 2025-2075 megahertz band under
              paragraph (2) for use by new licensees for commercial mobile
              services or other similar services after the relocation of
              broadcast auxiliary licensees, and shall assign such licenses 
              by competitive bidding.
          SEC. 702. RENEWED EFFORTS TO REGULATE VIOLENT PROGRAMMING.
            (a) Findings: The Senate finds that:
                (1) Violence is a pervasive and persistent feature of the
              entertainment industry. According to the Carnegie Council on
              Adolescent Development, by the age of 18, children will have
              been exposed to nearly 18,000 televised murders and 800 suicides.
                (2) Violence on television is likely to have a serious and
              harmful effect on the emotional development of young children.
              The American Psychological Association has reported that
              children who watch `a large number of aggressive programs tend
              to hold attitudes and values that favor the use of aggression 
              to solve conflicts'. The National Institute of Mental Health 
              has stated similarly that `violence on television does lead to
              aggressive behavior by children and teenagers'.
                (3) The Senate recognizes that television violence is not the
              sole cause of violence in society.
                (4) There is a broad recognition in the United States 
              Congress that the television industry has an obligation to
              police the content of its own broadcasts to children. That
              understanding was reflected in the Television Violence Act of
              1990, which was specifically designed to permit industry
              participants to work together to create a self-monitoring system.
                (5) After years of denying that television violence has any
              detrimental effect, the entertainment industry has begun to
              address the problem of television violence. In the spring of
              1994, for example, the network and cable industries announced
              the appointment of an independent monitoring group to assess 
              the amount of violence on television. These reports are due out
              in the fall of 1995 and winter of 1996, respectively.
                (6) The Senate recognizes that self-regulation by the private
              sector is generally preferable to direct regulation by the
              Federal Government.
            (b) Sense of the Senate: It is the sense of the Senate that the
          entertainment industry should do everything possible to limit the
          amount of violent and aggressive entertainment programming,
          particularly during the hours when children are most likely to be
          watching.
          SEC. 703. PREVENTION OF UNFAIR BILLING PRACTICES FOR INFORMATION OR
                            SERVICES PROVIDED OVER TOLL-FREE TELEPHONE CALLS.
            (a) Findings: Congress makes the following findings:
                (1) Reforms required by the Telephone Disclosure and Dispute
              Resolution Act of 1992 have improved the reputation of the
              pay-per-call industry and resulted in regulations that have
              reduced the incidence of misleading practices that are harmful
              to the public interest.
                (2) Among the successful reforms is a restriction on charges
              being assessed for calls to 800 telephone numbers or other
              telephone numbers advertised or widely understood to be toll
              free.
                (3) Nevertheless, certain interstate pay-per-call businesses
              are taking advantage of an exception in the restriction on
              charging for information conveyed during a call to a 
              `toll-free' number to continue to engage in misleading
              practices. These practices are not in compliance with the 
              intent of Congress in passing the Telephone Disclosure and
              Dispute Resolution Act.
                (4) It is necessary for Congress to clarify that its intent 
              is that charges for information provided during a call to an 
              800 number or other number widely advertised and understood to
              be toll free shall not be assessed to the calling party unless
              the calling party agrees to be billed according to the terms of
              a written subscription agreement or by other appropriate means.
            (b) 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'; and
                    (B) 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), 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 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 charges
                      for the service will appear on the subscriber's phone
                      bill;
                        `(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 requires the subscriber to use a personal
                  identification number to obtain access to the information
                  provided, and includes instructions on its use.
                    `(D) Exceptions: Notwithstanding paragraph (7)(C), a
                  written agreement that meets the requirements of this
                  paragraph is not required--
                        `(i) for calls utilizing telecommunications devices
                      for the deaf;
                        `(ii) for services provided pursuant to a tariff that
                      has been approved or permitted to take effect by the
                      Commission or a State commission; or
                        `(iii) for any purchase of goods or of services that
                      are not information services.
                    `(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 in absence of agreement: A calling party is
              charged for a call in accordance with this paragraph if the
              provider of the information conveyed during the call--
                    `(A) clearly states to the calling party the total cost
                  per minute of the information provided during the call and
                  for any other information or service provided by the
                  provider to which the calling party requests connection
                  during the call; and
                    `(B) receives from the calling party--
                        `(i) an agreement to accept the charges for any
                      information or services provided by the provider during
                      the call; and
                        `(ii) a credit, calling, or charge card number or
                      verification of a prepaid account to which such charges
                      are to be billed.
                `(10) Definition: As used in paragraphs (8) and (9), 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) 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 the
              enactment of this Act.
                (3) Effective date: The amendments made by paragraph (1) 
              shall take effect on the date of the enactment of this Act.
            (c) Clarification of `Pay-Per-Call Services' Under 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:
                `(1) The term `pay-per-call services' has the meaning 
              provided in section 228(j)(1) of the Communications Act of 
              1934, except that the Commission by rule may, notwithstanding
              subparagraphs (B) and (C) of such section, 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).'.
          SEC. 704. DISCLOSURE OF CERTAIN RECORDS FOR INVESTIGATIONS OF
                            TELEMARKETING FRAUD.
            Section 2703(c)(1)(B) of title 18, United States Code, is amended--
                (1) by striking out `or' at the end of clause (ii);
                (2) by striking out the period at the end of clause (iii) and
              inserting in lieu thereof `; or'; and
                (3) by adding at the end the following:
                `(iv) submits a formal written request for information
              relevant to a legitimate law enforcement investigation of the
              governmental entity for the name, address, and place of 
              business of a subscriber or customer of such provider, which
              subscriber or customer is engaged in telemarketing (as such 
              term is in section 2325 of this title).'.
          SEC. 705. TELECOMMUTING PUBLIC INFORMATION PROGRAM.
            (a) Findings: Congress makes the following findings--
                (1) Telecommuting is the practice of allowing people to work
              either at home or in nearby centers located closer to home
              during their normal working hours, substituting
              telecommunications services, either partially or completely, 
              for transportation to a more traditional workplace;
                (2) Telecommuting is now practiced by an estimated two to
              seven million Americans, including individuals with impaired
              mobility, who are taking advantage of computer and
              telecommunications advances in recent years;
                (3) Telecommuting has the potential to dramatically reduce
              fuel consumption, mobile source air pollution, vehicle miles
              traveled, and time spent commuting, thus contributing to an
              improvement in the quality of life for millions of Americans; and
                (4) It is in the public interest for the Federal Government 
              to collect and disseminate information encouraging the 
              increased use of telecommuting and identifying the potential