[Congressional Bills 104th Congress]
[From the U.S. Government Publishing Office]
[S. 652 Enrolled Bill (ENR)]
S.652
One Hundred Fourth Congress
of the
United States of America
AT THE SECOND SESSION
Begun and held at the City of Washington on Wednesday,
the third day of January, one thousand nine hundred and ninety-six
An Act
To promote competition and reduce regulation in order to secure lower
prices and higher quality services for American telecommunications
consumers and encourage the rapid deployment of new telecommunications
technologies.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,

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(a) Short Title.--This Act may be cited as the ``Telecommunications
Act of 1996''.
(b) References.--Except as otherwise expressly provided, whenever
in this Act an amendment or repeal is expressed in terms of an
amendment to, or repeal of, a section or other provision, the reference
shall be considered to be made to a section or other provision of the
Communications Act of 1934 (47 U.S.C. 151 et seq.).

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The table of contents for this Act is as follows:

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``Part II--Development of Competitive Markets
``Sec. 251. Interconnection.
``Sec. 252. Procedures for negotiation, arbitration, and approval of
agreements.
``Sec. 253. Removal of barriers to entry.
``Sec. 254. Universal service.
``Sec. 255. Access by persons with disabilities.
``Sec. 256. Coordination for interconnectivity.
``Sec. 257. Market entry barriers proceeding.
``Sec. 258. Illegal changes in subscriber carrier selections.
``Sec. 259. Infrastructure sharing.
``Sec. 260. Provision of telemessaging service.
``Sec. 261. Effect on other requirements.''

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TITLE I

-TELECOMMUNICATION SERVICES

Subtitle B--Special Provisions Concerning Bell Operating Companies

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``PART III--SPECIAL PROVISIONS CONCERNING BELL OPERATING COMPANIES
``Sec. 271. Bell operating company entry into interLATA services.
``Sec. 272. Separate affiliate; safeguards.
``Sec. 273. Manufacturing by Bell operating companies.
``Sec. 274. Electronic publishing by Bell operating companies.
``Sec. 275. Alarm monitoring services.
``Sec. 276. Provision of payphone service.''

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``Sec. 336. Broadcast spectrum flexibility.''

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TITLE II

-BROADCAST SERVICES

``Sec. 365. Automated ship distress and safety systems.''

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``Part V--Video Programming Services Provided by Telephone Companies
``Sec. 651. Regulatory treatment of video programming services.
``Sec. 652. Prohibition on buy outs.
``Sec. 653. Establishment of open video systems.''

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TITLE III

-CABLE SERVICES

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``Sec. 629. Competitive availability of navigation devices.''

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``Sec. 713. Video programming accessibility.''

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``Sec. 10. Competition in provision of telecommunications service.''

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TITLE IV

-REGULATORY REFORM

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functions.
Subtitle A--Obscene, Harassing, and Wrongful Utilization of
Telecommunications Facilities

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TITLE V

-OBSCENITY AND VIOLENCE

``Sec. 640. Scrambling of cable channels for nonsubscribers.''

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programming.
``Sec. 641. Scrambling of sexually explicit adult video service
programming.''

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obscene materials through the use of computers.

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``Sec. 230. Protection for private blocking and screening of
offensive material.''
Subtitle B--Violence

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TITLE VI

-EFFECT ON OTHER LAWS

services provided over toll-free telephone calls.

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TITLE VII

-MISCELLANEOUS PROVISIONS

``Sec. 222. Privacy of customer information.''

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``Sec. 714. Telecommunications Development Fund.''

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(a) Additional Definitions.--Section 3 (47 U.S.C. 153) is amended--
(1) in subsection (r)--
(A) by inserting ``(A)'' after ``means''; and
(B) by inserting before the period at the end the
following: ``, or (B) comparable service provided through a
system of switches, transmission equipment, or other facilities
(or combination thereof) by which a subscriber can originate
and terminate a telecommunications service''; and
(2) by adding at the end thereof the following:
``(33) Affiliate.--The term `affiliate' means a person that
(directly or indirectly) owns or controls, is owned or controlled
by, or is under common ownership or control with, another person.
For purposes of this paragraph, the term `own' means to own an
equity interest (or the equivalent thereof) of more than 10
percent.
``(34) AT&T consent decree.--The term `AT&T Consent Decree'
means the order entered August 24, 1982, in the antitrust action
styled United States v. Western Electric, Civil Action No. 82-0192,
in the United States District Court for the District of Columbia,
and includes any judgment or order with respect to such action
entered on or after August 24, 1982.
``(35) Bell operating company.--The term `Bell operating
company'--
``(A) means any of the following companies: Bell Telephone
Company of Nevada, Illinois Bell Telephone Company, Indiana
Bell Telephone Company, Incorporated, Michigan Bell Telephone
Company, New England Telephone and Telegraph Company, New
Jersey Bell Telephone Company, New York Telephone Company, U S
West Communications Company, South Central Bell Telephone
Company, Southern Bell Telephone and Telegraph Company,
Southwestern Bell Telephone Company, The Bell Telephone Company
of Pennsylvania, The Chesapeake and Potomac Telephone Company,
The Chesapeake and Potomac Telephone Company of Maryland, The
Chesapeake and Potomac Telephone Company of Virginia, The
Chesapeake and Potomac Telephone Company of West Virginia, The
Diamond State Telephone Company, The Ohio Bell Telephone
Company, The Pacific Telephone and Telegraph Company, or
Wisconsin Telephone Company; and
``(B) includes any successor or assign of any such company
that provides wireline telephone exchange service; but
``(C) does not include an affiliate of any such company,
other than an affiliate described in subparagraph (A) or (B).
``(36) Cable service.--The term `cable service' has the meaning
given such term in section 602.
``(37) Cable system.--The term `cable system' has the meaning
given such term in section 602.
``(38) Customer premises equipment.--The term `customer
premises equipment' means equipment employed on the premises of a
person (other than a carrier) to originate, route, or terminate
telecommunications.
``(39) Dialing parity.--The term `dialing parity' means that a
person that is not an affiliate of a local exchange carrier is able
to provide telecommunications services in such a manner that
customers have the ability to route automatically, without the use
of any access code, their telecommunications to the
telecommunications services provider of the customer's designation
from among 2 or more telecommunications services providers
(including such local exchange carrier).
``(40) Exchange access.--The term `exchange access' means the
offering of access to telephone exchange services or facilities for
the purpose of the origination or termination of telephone toll
services.
``(41) Information service.--The term `information service'
means the offering of a capability for generating, acquiring,
storing, transforming, processing, retrieving, utilizing, or making
available information via telecommunications, and includes
electronic publishing, but does not include any use of any such
capability for the management, control, or operation of a
telecommunications system or the management of a telecommunications
service.
``(42) Interlata service.--The term `interLATA service' means
telecommunications between a point located in a local access and
transport area and a point located outside such area.
``(43) Local access and transport area.--The term `local access
and transport area' or `LATA' means a contiguous geographic area--
``(A) established before the date of enactment of the
Telecommunications Act of 1996 by a Bell operating company such
that no exchange area includes points within more than 1
metropolitan statistical area, consolidated metropolitan
statistical area, or State, except as expressly permitted under
the AT&T Consent Decree; or
``(B) established or modified by a Bell operating company
after such date of enactment and approved by the Commission.
``(44) Local exchange carrier.--The term `local exchange
carrier' means any person that is engaged in the provision of
telephone exchange service or exchange access. Such term does not
include a person insofar as such person is engaged in the provision
of a commercial mobile service under section 332(c), except to the
extent that the Commission finds that such service should be
included in the definition of such term.
``(45) Network element.--The term `network element' means a
facility or equipment used in the provision of a telecommunications
service. Such term also includes features, functions, and
capabilities that are provided by means of such facility or
equipment, including subscriber numbers, databases, signaling
systems, and information sufficient for billing and collection or
used in the transmission, routing, or other provision of a
telecommunications service.
``(46) Number portability.--The term `number portability' means
the ability of users of telecommunications services to retain, at
the same location, existing telecommunications numbers without
impairment of quality, reliability, or convenience when switching
from one telecommunications carrier to another.
``(47) Rural telephone company.--The term `rural telephone
company' means a local exchange carrier operating entity to the
extent that such entity--
``(A) provides common carrier service to any local exchange
carrier study area that does not include either--
``(i) any incorporated place of 10,000 inhabitants or
more, or any part thereof, based on the most recently
available population statistics of the Bureau of the
Census; or
``(ii) any territory, incorporated or unincorporated,
included in an urbanized area, as defined by the Bureau of
the Census as of August 10, 1993;
``(B) provides telephone exchange service, including
exchange access, to fewer than 50,000 access lines;
``(C) provides telephone exchange service to any local
exchange carrier study area with fewer than 100,000 access
lines; or
``(D) has less than 15 percent of its access lines in
communities of more than 50,000 on the date of enactment of the
Telecommunications Act of 1996.
``(48) Telecommunications.--The term `telecommunications' means
the transmission, between or among points specified by the user, of
information of the user's choosing, without change in the form or
content of the information as sent and received.
``(49) Telecommunications carrier.--The term
`telecommunications carrier' means any provider of
telecommunications services, except that such term does not include
aggregators of telecommunications services (as defined in section
226). A telecommunications carrier shall be treated as a common
carrier under this Act only to the extent that it is engaged in
providing telecommunications services, except that the Commission
shall determine whether the provision of fixed and mobile satellite
service shall be treated as common carriage.
``(50) Telecommunications equipment.--The term
`telecommunications equipment' means equipment, other than customer
premises equipment, used by a carrier to provide telecommunications
services, and includes software integral to such equipment
(including upgrades).
``(51) Telecommunications service.--The term
`telecommunications service' means the offering of
telecommunications for a fee directly to the public, or to such
classes of users as to be effectively available directly to the
public, regardless of the facilities used.''.
(b) Common Terminology.--Except as otherwise provided in this Act,
the terms used in this Act have the meanings provided in section 3 of
the Communications Act of 1934 (47 U.S.C. 153), as amended by this
section.
(c) Stylistic Consistency.--Section 3 (47 U.S.C. 153) is amended--
(1) in subsections (e) and (n), by redesignating clauses (1),
(2), and (3), as clauses (A), (B), and (C), respectively;
(2) in subsection (w), by redesignating paragraphs (1) through
(5) as subparagraphs (A) through (E), respectively;
(3) in subsections (y) and (z), by redesignating paragraphs (1)
and (2) as subparagraphs (A) and (B), respectively;
(4) by redesignating subsections (a) through (ff) as paragraphs
(1) through (32);
(5) by indenting such paragraphs 2 em spaces;
(6) by inserting after the designation of each such paragraph--
(A) a heading, in a form consistent with the form of the
heading of this subsection, consisting of the term defined by
such paragraph, or the first term so defined if such paragraph
defines more than one term; and
(B) the words ``The term'';
(7) by changing the first letter of each defined term in such
paragraphs from a capital to a lower case letter (except for
``United States'', ``State'', ``State commission'', and ``Great
Lakes Agreement''); and
(8) by reordering such paragraphs and the additional paragraphs
added by subsection (a) in alphabetical order based on the headings
of such paragraphs and renumbering such paragraphs as so reordered.
(d) Conforming Amendments.--The Act is amended--
(1) in section 225(a)(1), by striking ``section 3(h)'' and
inserting ``section 3'';
(2) in section 332(d), by striking ``section 3(n)'' each place
it appears and inserting ``section 3''; and
(3) in sections 621(d)(3), 636(d), and 637(a)(2), by striking
``section 3(v)'' and inserting ``section 3''.
Subtitle A--Telecommunications Services

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(a) In General.--Section 214 (47 U.S.C. 214) is amended by adding
at the end thereof the following new subsection:
``(e) Provision of Universal Service.--
``(1) Eligible telecommunications carriers.--A common carrier
designated as an eligible telecommunications carrier under
paragraph (2) or (3) shall be eligible to receive universal service
support in accordance with section 254 and shall, throughout the
service area for which the designation is received--
``(A) offer the services that are supported by Federal
universal service support mechanisms under section 254(c),
either using its own facilities or a combination of its own
facilities and resale of another carrier's services (including
the services offered by another eligible telecommunications
carrier); and
``(B) advertise the availability of such services and the
charges therefor using media of general distribution.
``(2) Designation of eligible telecommunications carriers.--A
State commission shall upon its own motion or upon request
designate a common carrier that meets the requirements of paragraph
(1) as an eligible telecommunications carrier for a service area
designated by the State commission. Upon request and consistent
with the public interest, convenience, and necessity, the State
commission may, in the case of an area served by a rural telephone
company, and shall, in the case of all other areas, designate more
than one common carrier as an eligible telecommunications carrier
for a service area designated by the State commission, so long as
each additional requesting carrier meets the requirements of
paragraph (1). Before designating an additional eligible
telecommunications carrier for an area served by a rural telephone
company, the State commission shall find that the designation is in
the public interest.
``(3) Designation of eligible telecommunications carriers for
unserved areas.--If no common carrier will provide the services
that are supported by Federal universal service support mechanisms
under section 254(c) to an unserved community or any portion
thereof that requests such service, the Commission, with respect to
interstate services, or a State commission, with respect to
intrastate services, shall determine which common carrier or
carriers are best able to provide such service to the requesting
unserved community or portion thereof and shall order such carrier
or carriers to provide such service for that unserved community or
portion thereof. Any carrier or carriers ordered to provide such
service under this paragraph shall meet the requirements of
paragraph (1) and shall be designated as an eligible
telecommunications carrier for that community or portion thereof.
``(4) Relinquishment of universal service.--A State commission
shall permit an eligible telecommunications carrier to relinquish
its designation as such a carrier in any area served by more than
one eligible telecommunications carrier. An eligible
telecommunications carrier that seeks to relinquish its eligible
telecommunications carrier designation for an area served by more
than one eligible telecommunications carrier shall give advance
notice to the State commission of such relinquishment. Prior to
permitting a telecommunications carrier designated as an eligible
telecommunications carrier to cease providing universal service in
an area served by more than one eligible telecommunications
carrier, the State commission shall require the remaining eligible
telecommunications carrier or carriers to ensure that all customers
served by the relinquishing carrier will continue to be served, and
shall require sufficient notice to permit the purchase or
construction of adequate facilities by any remaining eligible
telecommunications carrier. The State commission shall establish a
time, not to exceed one year after the State commission approves
such relinquishment under this paragraph, within which such
purchase or construction shall be completed.
``(5) Service area defined.--The term `service area' means a
geographic area established by a State commission for the purpose
of determining universal service obligations and support
mechanisms. In the case of an area served by a rural telephone
company, `service area' means such company's `study area' unless
and until the Commission and the States, after taking into account
recommendations of a Federal-State Joint Board instituted under
section 410(c), establish a different definition of service area
for such company.''.

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The Public Utility Holding Company Act of 1935 (15 U.S.C. 79 and
following) is amended by redesignating sections 34 and 35 as sections
35 and 36, respectively, and by inserting the following new section
after section 33:
``SEC. 34. EXEMPT TELECOMMUNICATIONS COMPANIES.
``(a) Definitions.--For purposes of this section--
``(1) Exempt telecommunications company.--The term `exempt
telecommunications company' means any person determined by the
Federal Communications Commission to be engaged directly or
indirectly, wherever located, through one or more affiliates (as
defined in section 2(a)(11)(B)), and exclusively in the business of
providing---
``(A) telecommunications services;
``(B) information services;
``(C) other services or products subject to the
jurisdiction of the Federal Communications Commission; or
``(D) products or services that are related or incidental
to the provision of a product or service described in
subparagraph (A), (B), or (C).
No person shall be deemed to be an exempt telecommunications
company under this section unless such person has applied to the
Federal Communications Commission for a determination under this
paragraph. A person applying in good faith for such a determination
shall be deemed an exempt telecommunications company under this
section, with all of the exemptions provided by this section, until
the Federal Communications Commission makes such determination. The
Federal Communications Commission shall make such determination
within 60 days of its receipt of any such application filed after
the enactment of this section and shall notify the Commission
whenever a determination is made under this paragraph that any
person is an exempt telecommunications company. Not later than 12
months after the date of enactment of this section, the Federal
Communications Commission shall promulgate rules implementing the
provisions of this paragraph which shall be applicable to
applications filed under this paragraph after the effective date of
such rules.
``(2) Other terms.--For purposes of this section, the terms
`telecommunications services' and `information services' shall have
the same meanings as provided in the Communications Act of 1934.
``(b) State Consent for Sale of Existing Rate-Based Facilities.--If
a rate or charge for the sale of electric energy or natural gas (other
than any portion of a rate or charge which represents recovery of the
cost of a wholesale rate or charge) for, or in connection with, assets
of a public utility company that is an associate company or affiliate
of a registered holding company was in effect under the laws of any
State as of December 19, 1995, the public utility company owning such
assets may not sell such assets to an exempt telecommunications company
that is an associate company or affiliate unless State commissions
having jurisdiction over such public utility company approve such sale.
Nothing in this subsection shall preempt the otherwise applicable
authority of any State to approve or disapprove the sale of such
assets. The approval of the Commission under this Act shall not be
required for the sale of assets as provided in this subsection.
``(c) Ownership of ETCS by Exempt Holding Companies.--
Notwithstanding any provision of this Act, a holding company that is
exempt under section 3 of this Act shall be permitted, without
condition or limitation under this Act, to acquire and maintain an
interest in the business of one or more exempt telecommunications
companies.
``(d) Ownership of ETCS by Registered Holding Companies.--
Notwithstanding any provision of this Act, a registered holding company
shall be permitted (without the need to apply for, or receive, approval
from the Commission, and otherwise without condition under this Act) to
acquire and hold the securities, or an interest in the business, of one
or more exempt telecommunications companies.
``(e) Financing and Other Relationships Between ETCS and Registered
Holding Companies.--The relationship between an exempt
telecommunications company and a registered holding company, its
affiliates and associate companies, shall remain subject to the
jurisdiction of the Commission under this Act: Provided, That--
``(1) section 11 of this Act shall not prohibit the ownership
of an interest in the business of one or more exempt
telecommunications companies by a registered holding company
(regardless of activities engaged in or where facilities owned or
operated by such exempt telecommunications companies are located),
and such ownership by a registered holding company shall be deemed
consistent with the operation of an integrated public utility
system;
``(2) the ownership of an interest in the business of one or
more exempt telecommunications companies by a registered holding
company (regardless of activities engaged in or where facilities
owned or operated by such exempt telecommunications companies are
located) shall be considered as reasonably incidental, or
economically necessary or appropriate, to the operations of an
integrated public utility system;
``(3) the Commission shall have no jurisdiction under this Act
over, and there shall be no restriction or approval required under
this Act with respect to (A) the issue or sale of a security by a
registered holding company for purposes of financing the
acquisition of an exempt telecommunications company, or (B) the
guarantee of a security of an exempt telecommunications company by
a registered holding company; and
``(4) except for costs that should be fairly and equitably
allocated among companies that are associate companies of a
registered holding company, the Commission shall have no
jurisdiction under this Act over the sales, service, and
construction contracts between an exempt telecommunications company
and a registered holding company, its affiliates and associate
companies.
``(f) Reporting Obligations Concerning Investments and Activities
of Registered Public-Utility Holding Company Systems.--
``(1) Obligations to report information.--Any registered
holding company or subsidiary thereof that acquires or holds the
securities, or an interest in the business, of an exempt
telecommunications company shall file with the Commission such
information as the Commission, by rule, may prescribe concerning--
``(A) investments and activities by the registered holding
company, or any subsidiary thereof, with respect to exempt
telecommunications companies, and
``(B) any activities of an exempt telecommunications
company within the holding company system,
that are reasonably likely to have a material impact on the
financial or operational condition of the holding company system.
``(2) Authority to require additional information.--If, based
on reports provided to the Commission pursuant to paragraph (1) of
this subsection or other available information, the Commission
reasonably concludes that it has concerns regarding the financial
or operational condition of any registered holding company or any
subsidiary thereof (including an exempt telecommunications
company), the Commission may require such registered holding
company to make additional reports and provide additional
information.
``(3) Authority to limit disclosure of information.--
Notwithstanding any other provision of law, the Commission shall
not be compelled to disclose any information required to be
reported under this subsection. Nothing in this subsection shall
authorize the Commission to withhold the information from Congress,
or prevent the Commission from complying with a request for
information from any other Federal or State department or agency
requesting the information for purposes within the scope of its
jurisdiction. For purposes of section 552 of title 5, United States
Code, this subsection shall be considered a statute described in
subsection (b)(3)(B) of such section 552.
``(g) Assumption of Liabilities.--Any public utility company that
is an associate company, or an affiliate, of a registered holding
company and that is subject to the jurisdiction of a State commission
with respect to its retail electric or gas rates shall not issue any
security for the purpose of financing the acquisition, ownership, or
operation of an exempt telecommunications company. Any public utility
company that is an associate company, or an affiliate, of a registered
holding company and that is subject to the jurisdiction of a State
commission with respect to its retail electric or gas rates shall not
assume any obligation or liability as guarantor, endorser, surety, or
otherwise by the public utility company in respect of any security of
an exempt telecommunications company.
``(h) Pledging or Mortgaging of Assets.--Any public utility company
that is an associate company, or affiliate, of a registered holding
company and that is subject to the jurisdiction of a State commission
with respect to its retail electric or gas rates shall not pledge,
mortgage, or otherwise use as collateral any assets of the public
utility company or assets of any subsidiary company thereof for the
benefit of an exempt telecommunications company.
``(i) Protection Against Abusive Affiliate Transactions.--A public
utility company may enter into a contract to purchase services or
products described in subsection (a)(1) from an exempt
telecommunications company that is an affiliate or associate company of
the public utility company only if--
``(1) every State commission having jurisdiction over the
retail rates of such public utility company approves such contract;
or
``(2) such public utility company is not subject to State
commission retail rate regulation and the purchased services or
products--
``(A) would not be resold to any affiliate or associate
company; or
``(B) would be resold to an affiliate or associate company
and every State commission having jurisdiction over the retail
rates of such affiliate or associate company makes the
determination required by subparagraph (A).
The requirements of this subsection shall not apply in any case in
which the State or the State commission concerned publishes a notice
that the State or State commission waives its authority under this
subsection.
``(j) Nonpreemption of Rate Authority.--Nothing in this Act shall
preclude the Federal Energy Regulatory Commission or a State commission
from exercising its jurisdiction under otherwise applicable law to
determine whether a public utility company may recover in rates the
costs of products or services purchased from or sold to an associate
company or affiliate that is an exempt telecommunications company,
regardless of whether such costs are incurred through the direct or
indirect purchase or sale of products or services from such associate
company or affiliate.
``(k) Reciprocal Arrangements Prohibited.--Reciprocal arrangements
among companies that are not affiliates or associate companies of each
other that are entered into in order to avoid the provisions of this
section are prohibited.
``(l) Books and Records.--(1) Upon written order of a State
commission, a State commission may examine the books, accounts,
memoranda, contracts, and records of--
``(A) a public utility company subject to its regulatory
authority under State law;
``(B) any exempt telecommunications company selling products or
services to such public utility company or to an associate company
of such public utility company; and
``(C) any associate company or affiliate of an exempt
telecommunications company which sells products or services to a
public utility company referred to in subparagraph (A),
wherever located, if such examination is required for the effective
discharge of the State commission's regulatory responsibilities
affecting the provision of electric or gas service in connection with
the activities of such exempt telecommunications company.
``(2) Where a State commission issues an order pursuant to
paragraph (1), the State commission shall not publicly disclose trade
secrets or sensitive commercial information.
``(3) Any United States district court located in the State in
which the State commission referred to in paragraph (1) is located
shall have jurisdiction to enforce compliance with this subsection.
``(4) Nothing in this section shall--
``(A) preempt applicable State law concerning the provision of
records and other information; or
``(B) in any way limit rights to obtain records and other
information under Federal law, contracts, or otherwise.
``(m) Independent Audit Authority for State Commissions.--
``(1) State may order audit.--Any State commission with
jurisdiction over a public utility company that--
``(A) is an associate company of a registered holding
company; and
``(B) transacts business, directly or indirectly, with a
subsidiary company, an affiliate or an associate company that
is an exempt telecommunications company,
may order an independent audit to be performed, no more frequently
than on an annual basis, of all matters deemed relevant by the
selected auditor that reasonably relate to retail rates: Provided,
That such matters relate, directly or indirectly, to transactions
or transfers between the public utility company subject to its
jurisdiction and such exempt telecommunications company.
``(2) Selection of firm to conduct audit.--(A) If a State
commission orders an audit in accordance with paragraph (1), the
public utility company and the State commission shall jointly
select, within 60 days, a firm to perform the audit. The firm
selected to perform the audit shall possess demonstrated
qualifications relating to--
``(i) competency, including adequate technical training and
professional proficiency in each discipline necessary to carry
out the audit; and
``(ii) independence and objectivity, including that the
firm be free from personal or external impairments to
independence, and should assume an independent position with
the State commission and auditee, making certain that the audit
is based upon an impartial consideration of all pertinent facts
and responsible opinions.
``(B) The public utility company and the exempt
telecommunications company shall cooperate fully with all
reasonable requests necessary to perform the audit and the public
utility company shall bear all costs of having the audit performed.
``(3) Availability of auditor's report.--The auditor's report
shall be provided to the State commission not later than 6 months
after the selection of the auditor, and provided to the public
utility company not later than 60 days thereafter.
``(n) Applicability of Telecommunications Regulation.--Nothing in
this section shall affect the authority of the Federal Communications
Commission under the Communications Act of 1934, or the authority of
State commissions under State laws concerning the provision of
telecommunications services, to regulate the activities of an exempt
telecommunications company.''.

6b6fff72bb6138cde1930e90970b095682332a690487c665d93c2cb550f01916

Section 1 (47 U.S.C. 151) is amended by inserting after ``to all
the people of the United States'' the following: ``, without
discrimination on the basis of race, color, religion, national origin,
or sex,''.
Subtitle B--Special Provisions Concerning Bell Operating Companies

17a3808fcadf4ec1e5ce6958c3be8fc9d69c9ebb7270b6045f3c2750cfe9cf10

90a450fcf81a9e1984fcec1bfad35c74a98b02bf0fe4f02f3135022437e84fbc

Title III is amended by inserting after section 335 (47 U.S.C. 335)
the following new section:
``SEC. 336. BROADCAST SPECTRUM FLEXIBILITY.
``(a) Commission Action.--If the Commission determines to issue
additional licenses for advanced television services, the Commission--
``(1) should limit the initial eligibility for such licenses to
persons that, as of the date of such issuance, are licensed to
operate a television broadcast station or hold a permit to
construct such a station (or both); and
``(2) shall adopt regulations that allow the holders of such
licenses to offer such ancillary or supplementary services on
designated frequencies as may be consistent with the public
interest, convenience, and necessity.
``(b) Contents of Regulations.--In prescribing the regulations
required by subsection (a), the Commission shall--
``(1) only permit such licensee or permittee to offer ancillary
or supplementary services if the use of a designated frequency for
such services is consistent with the technology or method
designated by the Commission for the provision of advanced
television services;
``(2) limit the broadcasting of ancillary or supplementary
services on designated frequencies so as to avoid derogation of any
advanced television services, including high definition television
broadcasts, that the Commission may require using such frequencies;
``(3) apply to any other ancillary or supplementary service
such of the Commission's regulations as are applicable to the
offering of analogous services by any other person, except that no
ancillary or supplementary service shall have any rights to
carriage under section 614 or 615 or be deemed a multichannel video
programming distributor for purposes of section 628;
``(4) adopt such technical and other requirements as may be
necessary or appropriate to assure the quality of the signal used
to provide advanced television services, and may adopt regulations
that stipulate the minimum number of hours per day that such signal
must be transmitted; and
``(5) prescribe such other regulations as may be necessary for
the protection of the public interest, convenience, and necessity.
``(c) Recovery of License.--If the Commission grants a license for
advanced television services to a person that, as of the date of such
issuance, is licensed to operate a television broadcast station or
holds a permit to construct such a station (or both), the Commission
shall, as a condition of such license, require that either the
additional license or the original license held by the licensee be
surrendered to the Commission for reallocation or reassignment (or
both) pursuant to Commission regulation.
``(d) Public Interest Requirement.--Nothing in this section shall
be construed as relieving a television broadcasting station from its
obligation to serve the public interest, convenience, and necessity. In
the Commission's review of any application for renewal of a broadcast
license for a television station that provides ancillary or
supplementary services, the television licensee shall establish that
all of its program services on the existing or advanced television
spectrum are in the public interest. Any violation of the Commission
rules applicable to ancillary or supplementary services shall reflect
upon the licensee's qualifications for renewal of its license.
``(e) Fees.--
``(1) Services to which fees apply.--If the regulations
prescribed pursuant to subsection (a) permit a licensee to offer
ancillary or supplementary services on a designated frequency--
``(A) for which the payment of a subscription fee is
required in order to receive such services, or
``(B) for which the licensee directly or indirectly
receives compensation from a third party in return for
transmitting material furnished by such third party (other than
commercial advertisements used to support broadcasting for
which a subscription fee is not required),
the Commission shall establish a program to assess and collect from
the licensee for such designated frequency an annual fee or other
schedule or method of payment that promotes the objectives
described in subparagraphs (A) and (B) of paragraph (2).
``(2) Collection of fees.--The program required by paragraph
(1) shall--
``(A) be designed (i) to recover for the public a portion
of the value of the public spectrum resource made available for
such commercial use, and (ii) to avoid unjust enrichment
through the method employed to permit such uses of that
resource;
``(B) recover for the public an amount that, to the extent
feasible, equals but does not exceed (over the term of the
license) the amount that would have been recovered had such
services been licensed pursuant to the provisions of section
309(j) of this Act and the Commission's regulations thereunder;
and
``(C) be adjusted by the Commission from time to time in
order to continue to comply with the requirements of this
paragraph.
``(3) Treatment of revenues.--
``(A) General rule.--Except as provided in subparagraph
(B), all proceeds obtained pursuant to the regulations required
by this subsection shall be deposited in the Treasury in
accordance with chapter 33 of title 31, United States Code.
``(B) Retention of revenues.--Notwithstanding subparagraph
(A), the salaries and expenses account of the Commission shall
retain as an offsetting collection such sums as may be
necessary from such proceeds for the costs of developing and
implementing the program required by this section and
regulating and supervising advanced television services. Such
offsetting collections shall be available for obligation
subject to the terms and conditions of the receiving
appropriations account, and shall be deposited in such accounts
on a quarterly basis.
``(4) Report.--Within 5 years after the date of enactment of
the Telecommunications Act of 1996, the Commission shall report to
the Congress on the implementation of the program required by this
subsection, and shall annually thereafter advise the Congress on
the amounts collected pursuant to such program.
``(f) Evaluation.--Within 10 years after the date the Commission
first issues additional licenses for advanced television services, the
Commission shall conduct an evaluation of the advanced television
services program. Such evaluation shall include--
``(1) an assessment of the willingness of consumers to purchase
the television receivers necessary to receive broadcasts of
advanced television services;
``(2) an assessment of alternative uses, including public
safety use, of the frequencies used for such broadcasts; and
``(3) the extent to which the Commission has been or will be
able to reduce the amount of spectrum assigned to licensees.
``(g) Definitions.--As used in this section:
``(1) Advanced television services.--The term `advanced
television services' means television services provided using
digital or other advanced technology as further defined in the
opinion, report, and order of the Commission entitled `Advanced
Television Systems and Their Impact Upon the Existing Television
Broadcast Service', MM Docket 87-268, adopted September 17, 1992,
and successor proceedings.
``(2) Designated frequencies.--The term `designated frequency'
means each of the frequencies designated by the Commission for
licenses for advanced television services.
``(3) High definition television.--The term `high definition
television' refers to systems that offer approximately twice the
vertical and horizontal resolution of receivers generally available
on the date of enactment of the Telecommunications Act of 1996, as
further defined in the proceedings described in paragraph (1) of
this subsection.''.

145b0818cb900a2309756f37f5e4214c4e9bfcf0336771fc2e52c4f4a4ef211d

(a) National Radio Station Ownership Rule Changes Required.--The
Commission shall modify section 73.3555 of its regulations (47 C.F.R.
73.3555) by eliminating any provisions limiting the number of AM or FM
broadcast stations which may be owned or controlled by one entity
nationally.
(b) Local Radio Diversity.--
(1) Applicable caps.--The Commission shall revise section
73.3555(a) of its regulations (47 C.F.R. 73.3555) to provide that--
(A) in a radio market with 45 or more commercial radio
stations, a party may own, operate, or control up to 8
commercial radio stations, not more than 5 of which are in the
same service (AM or FM);
(B) in a radio market with between 30 and 44 (inclusive)
commercial radio stations, a party may own, operate, or control
up to 7 commercial radio stations, not more than 4 of which are
in the same service (AM or FM);
(C) in a radio market with between 15 and 29 (inclusive)
commercial radio stations, a party may own, operate, or control
up to 6 commercial radio stations, not more than 4 of which are
in the same service (AM or FM); and
(D) in a radio market with 14 or fewer commercial radio
stations, a party may own, operate, or control up to 5
commercial radio stations, not more than 3 of which are in the
same service (AM or FM), except that a party may not own,
operate, or control more than 50 percent of the stations in
such market.
(2) Exception.--Notwithstanding any limitation authorized by
this subsection, the Commission may permit a person or entity to
own, operate, or control, or have a cognizable interest in, radio
broadcast stations if the Commission determines that such
ownership, operation, control, or interest will result in an
increase in the number of radio broadcast stations in operation.
(c) Television Ownership Limitations.--
(1) National ownership limitations.--The Commission shall
modify its rules for multiple ownership set forth in section
73.3555 of its regulations (47 C.F.R. 73.3555)--
(A) by eliminating the restrictions on the number of
television stations that a person or entity may directly or
indirectly own, operate, or control, or have a cognizable
interest in, nationwide; and
(B) by increasing the national audience reach limitation
for television stations to 35 percent.
(2) Local ownership limitations.--The Commission shall conduct
a rulemaking proceeding to determine whether to retain, modify, or
eliminate its limitations on the number of television stations that
a person or entity may own, operate, or control, or have a
cognizable interest in, within the same television market.
(d) Relaxation of One-To-A-Market.--With respect to its enforcement
of its one-to-a-market ownership rules under section 73.3555 of its
regulations, the Commission shall extend its waiver policy to any of
the top 50 markets, consistent with the public interest, convenience,
and necessity.
(e) Dual Network Changes.--The Commission shall revise section
73.658(g) of its regulations (47 C.F.R. 658(g)) to permit a television
broadcast station to affiliate with a person or entity that maintains 2
or more networks of television broadcast stations unless such dual or
multiple networks are composed of--
(1) two or more persons or entities that, on the date of
enactment of the Telecommunications Act of 1996, are ``networks''
as defined in section 73.3613(a)(1) of the Commission's regulations
(47 C.F.R. 73.3613(a)(1)); or
(2) any network described in paragraph (1) and an English-
language program distribution service that, on such date, provides
4 or more hours of programming per week on a national basis
pursuant to network affiliation arrangements with local television
broadcast stations in markets reaching more than 75 percent of
television homes (as measured by a national ratings service).
(f) Cable Cross Ownership.--
(1) Elimination of restrictions.--The Commission shall revise
section 76.501 of its regulations (47 C.F.R. 76.501) to permit a
person or entity to own or control a network of broadcast stations
and a cable system.
(2) Safeguards against discrimination.--The Commission shall
revise such regulations if necessary to ensure carriage, channel
positioning, and nondiscriminatory treatment of nonaffiliated
broadcast stations by a cable system described in paragraph (1).
(g) Local Marketing Agreements.--Nothing in this section shall be
construed to prohibit the origination, continuation, or renewal of any
television local marketing agreement that is in compliance with the
regulations of the Commission.
(h) Further Commission Review.--The Commission shall review its
rules adopted pursuant to this section and all of its ownership rules
biennially as part of its regulatory reform review under section 11 of
the Communications Act of 1934 and shall determine whether any of such
rules are necessary in the public interest as the result of
competition. The Commission shall repeal or modify any regulation it
determines to be no longer in the public interest.
(i) Elimination of Statutory Restriction.--Section 613(a) (47
U.S.C. 533(a)) is amended--
(1) by striking paragraph (1);
(2) by redesignating paragraph (2) as subsection (a);
(3) by redesignating subparagraphs (A) and (B) as paragraphs
(1) and (2), respectively;
(4) by striking ``and'' at the end of paragraph (1) (as so
redesignated);
(5) by striking the period at the end of paragraph (2) (as so
redesignated) and inserting ``; and''; and
(6) by adding at the end the following new paragraph:
``(3) shall not apply the requirements of this subsection to
any cable operator in any franchise area in which a cable operator
is subject to effective competition as determined under section
623(l).''.

e9f2052558d9ef1bff4cdcdd5a8eeb93aadffa1474e68daf9ddbfedb69fc1dbc

Section 307(c) (47 U.S.C. 307(c)) is amended to read as follows:
``(c) Terms of Licenses.--
``(1) Initial and renewal licenses.--Each license granted for
the operation of a broadcasting station shall be for a term of not
to exceed 8 years. Upon application therefor, a renewal of such
license may be granted from time to time for a term of not to
exceed 8 years from the date of expiration of the preceding
license, if the Commission finds that public interest, convenience,
and necessity would be served thereby. Consistent with the
foregoing provisions of this subsection, the Commission may by rule
prescribe the period or periods for which licenses shall be granted
and renewed for particular classes of stations, but the Commission
may not adopt or follow any rule which would preclude it, in any
case involving a station of a particular class, from granting or
renewing a license for a shorter period than that prescribed for
stations of such class if, in its judgment, the public interest,
convenience, or necessity would be served by such action.
``(2) Materials in application.--In order to expedite action on
applications for renewal of broadcasting station licenses and in
order to avoid needless expense to applicants for such renewals,
the Commission shall not require any such applicant to file any
information which previously has been furnished to the Commission
or which is not directly material to the considerations that affect
the granting or denial of such application, but the Commission may
require any new or additional facts it deems necessary to make its
findings.
``(3) Continuation pending decision.--Pending any hearing and
final decision on such an application and the disposition of any
petition for rehearing pursuant to section 405, the Commission
shall continue such license in effect.''.

7fe14e9be49fbc96041fbc64bd16b8921b1b8a22cc4ff99e7c61b5da4b4774d1

(a) Renewal Procedures.--
(1) Amendment.--Section 309 (47 U.S.C. 309) is amended by
adding at the end thereof the following new subsection:
``(k) Broadcast Station Renewal Procedures.--
``(1) Standards for renewal.--If the licensee of a broadcast
station submits an application to the Commission for renewal of
such license, the Commission shall grant the application if it
finds, with respect to that station, during the preceding term of
its license--
``(A) the station has served the public interest,
convenience, and necessity;
``(B) there have been no serious violations by the licensee
of this Act or the rules and regulations of the Commission; and
``(C) there have been no other violations by the licensee
of this Act or the rules and regulations of the Commission
which, taken together, would constitute a pattern of abuse.
``(2) Consequence of failure to meet standard.--If any licensee
of a broadcast station fails to meet the requirements of this
subsection, the Commission may deny the application for renewal in
accordance with paragraph (3), or grant such application on terms
and conditions as are appropriate, including renewal for a term
less than the maximum otherwise permitted.
``(3) Standards for denial.--If the Commission determines,
after notice and opportunity for a hearing as provided in
subsection (e), that a licensee has failed to meet the requirements
specified in paragraph (1) and that no mitigating factors justify
the imposition of lesser sanctions, the Commission shall--
``(A) issue an order denying the renewal application filed
by such licensee under section 308; and
``(B) only thereafter accept and consider such applications
for a construction permit as may be filed under section 308
specifying the channel or broadcasting facilities of the former
licensee.
``(4) Competitor consideration prohibited.--In making the
determinations specified in paragraph (1) or (2), the Commission
shall not consider whether the public interest, convenience, and
necessity might be served by the grant of a license to a person
other than the renewal applicant.''.
(2) Conforming amendment.--Section 309(d) (47 U.S.C. 309(d)) is
amended by inserting after ``with subsection (a)'' each place it
appears the following: ``(or subsection (k) in the case of renewal
of any broadcast station license)''.
(b) Summary of Complaints on Violent Programming.--Section 308 (47
U.S.C. 308) is amended by adding at the end the following new
subsection:
``(d) Summary of Complaints.--Each applicant for the renewal of a
commercial or noncommercial television license shall attach as an
exhibit to the application a summary of written comments and
suggestions received from the public and maintained by the licensee (in
accordance with Commission regulations) that comment on the applicant's
programming, if any, and that are characterized by the commentor as
constituting violent programming.''.
(c) Effective Date.--The amendments made by this section apply to
applications filed after May 1, 1995.

b8682eb5c50c47addb42df13ba4b90a8735891b221c6dbfcd04871fb7aa2c643

(a) DBS Signal Security.--Section 705(e)(4) (47 U.S.C. 605(e)(4))
is amended by inserting ``or direct-to-home satellite services,'' after
``programming,''.
(b) FCC Jurisdiction Over Direct-to-Home Satellite Services.--
Section 303 (47 U.S.C. 303) is amended by adding at the end thereof the
following new subsection:
``(v) Have exclusive jurisdiction to regulate the provision of
direct-to-home satellite services. As used in this subsection, the term
`direct-to-home satellite services' means the distribution or
broadcasting of programming or services by satellite directly to the
subscriber's premises without the use of ground receiving or
distribution equipment, except at the subscriber's premises or in the
uplink process to the satellite.''.

4afc518349ea41067177eb2808e14b486200c0bfe1b5a509823f8b32ff41a344

Part II of title III is amended by inserting after section 364 (47
U.S.C. 362) the following new section:
``SEC. 365. AUTOMATED SHIP DISTRESS AND SAFETY SYSTEMS.
``Notwithstanding any provision of this Act or any other provision
of law or regulation, a ship documented under the laws of the United
States operating in accordance with the Global Maritime Distress and
Safety System provisions of the Safety of Life at Sea Convention shall
not be required to be equipped with a radio telegraphy station operated
by one or more radio officers or operators. This section shall take
effect 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.''.

a53743ccb65d4a39cc38462ed3daf4c6948aaa9bcc6f41d81cd9928c63e81c0a

Within 180 days after the date of enactment of this Act, the
Commission shall, pursuant to section 303 of the Communications Act of
1934, promulgate regulations to prohibit restrictions that impair a
viewer's ability to receive video programming services through devices
designed for over-the-air reception of television broadcast signals,
multichannel multipoint distribution service, or direct broadcast
satellite services.

a80b98765d72a77cd1de928e5246716eb48b866bfadf311a9f172230d4e1a7b0

(a) Definitions.--
(1) Definition of cable service.--Section 602(6)(B) (47 U.S.C.
522(6)(B)) is amended by inserting ``or use'' after ``the
selection''.
(2) Change in definition of cable system.--Section 602(7) (47
U.S.C. 522(7)) is amended by striking ``(B) a facility that serves
only subscribers in 1 or more multiple unit dwellings under common
ownership, control, or management, unless such facility or
facilities uses any public right-of-way;'' and inserting ``(B) a
facility that serves subscribers without using any public right-of-
way;''.
(b) Rate Deregulation.--
(1) Upper tier regulation.--Section 623(c) (47 U.S.C. 543(c))
is amended--
(A) in paragraph (1)(B), by striking ``subscriber,
franchising authority, or other relevant State or local
government entity'' and inserting ``franchising authority (in
accordance with paragraph (3))'';
(B) in paragraph (1)(C), by striking ``such complaint'' and
inserting ``the first complaint filed with the franchising
authority under paragraph (3)''; and
(C) by striking paragraph (3) and inserting the following:
``(3) Review of rate changes.--The Commission shall review any
complaint submitted by a franchising authority after the date of
enactment of the Telecommunications Act of 1996 concerning an
increase in rates for cable programming services and issue a final
order within 90 days after it receives such a complaint, unless the
parties agree to extend the period for such review. A franchising
authority may not file a complaint under this paragraph unless,
within 90 days after such increase becomes effective it receives
subscriber complaints.
``(4) Sunset of upper tier rate regulation.--This subsection
shall not apply to cable programming services provided after March
31, 1999.''.
(2) Sunset of uniform rate structure in markets with effective
competition.--Section 623(d) (47 U.S.C. 543(d)) is amended by
adding at the end thereof the following: ``This subsection does not
apply to (1) a cable operator with respect to the provision of
cable service over its cable system in any geographic area in which
the video programming services offered by the operator in that area
are subject to effective competition, or (2) any video programming
offered on a per channel or per program basis. Bulk discounts to
multiple dwelling units shall not be subject to this subsection,
except that a cable operator of a cable system that is not subject
to effective competition may not charge predatory prices to a
multiple dwelling unit. Upon a prima facie showing by a complainant
that there are reasonable grounds to believe that the discounted
price is predatory, the cable system shall have the burden of
showing that its discounted price is not predatory.''.
(3) Effective competition.--Section 623(l)(1) (47 U.S.C.
543(l)(1)) is amended--
(A) by striking ``or'' at the end of subparagraph (B);
(B) by striking the period at the end of subparagraph (C)
and inserting ``; or''; and
(C) by adding at the end the following:
``(D) a local exchange carrier or its affiliate (or any
multichannel video programming distributor using the facilities
of such carrier or its affiliate) offers video programming
services directly to subscribers by any means (other than
direct-to-home satellite services) in the franchise area of an
unaffiliated cable operator which is providing cable service in
that franchise area, but only if the video programming services
so offered in that area are comparable to the video programming
services provided by the unaffiliated cable operator in that
area.''.
(c) Greater Deregulation for Smaller Cable Companies.--Section 623
(47 U.S.C 543) is amended by adding at the end thereof the following:
``(m) Special Rules for Small Companies.--
``(1) In general.--Subsections (a), (b), and (c) do not apply
to a small cable operator with respect to--
``(A) cable programming services, or
``(B) a basic service tier that was the only service tier
subject to regulation as of December 31, 1994,
in any franchise area in which that operator services 50,000 or
fewer subscribers.
``(2) Definition of small cable operator.--For purposes of this
subsection, the term `small cable operator' means a cable operator
that, directly or through an affiliate, serves in the aggregate
fewer than 1 percent of all subscribers in the United States and is
not affiliated with any entity or entities whose gross annual
revenues in the aggregate exceed $250,000,000.''.
(d) Market Determinations.--
(1) Market determinations; expedited decisionmaking.--Section
614(h)(1)(C) (47 U.S.C. 534(h)(1)(C)) is amended--
(A) by striking ``in the manner provided in section
73.3555(d)(3)(i) of title 47, Code of Federal Regulations, as
in effect on May 1, 1991,'' in clause (i) and inserting ``by
the Commission by regulation or order using, where available,
commercial publications which delineate television markets
based on viewing patterns,''; and
(B) by striking clause (iv) and inserting the following:
``(iv) Within 120 days after the date on which a
request is filed under this subparagraph (or 120 days after
the date of enactment of the Telecommunications Act of
1996, if later), the Commission shall grant or deny the
request.''.
(2) Application to pending requests.--The amendment made by
paragraph (1) shall apply to--
(A) any request pending under section 614(h)(1)(C) of the
Communications Act of 1934 (47 U.S.C. 534(h)(1)(C)) on the date
of enactment of this Act; and
(B) any request filed under that section after that date.
(e) Technical Standards.--Section 624(e) (47 U.S.C. 544(e)) is
amended by striking the last two sentences and inserting the following:
``No State or franchising authority may prohibit, condition, or
restrict a cable system's use of any type of subscriber equipment or
any transmission technology.''.
(f) Cable Equipment Compatibility.--Section 624A (47 U.S.C. 544A)
is amended--
(1) in subsection (a) by striking ``and'' at the end of
paragraph (2), by striking the period at the end of paragraph (3)
and inserting ``; and''; and by adding at the end the following new
paragraph:
``(4) compatibility among televisions, video cassette
recorders, and cable systems can be assured with narrow technical
standards that mandate a minimum degree of common design and
operation, leaving all features, functions, protocols, and other
product and service options for selection through open competition
in the market.'';
(2) in subsection (c)(1)--
(A) by redesignating subparagraphs (A) and (B) as
subparagraphs (B) and (C), respectively; and
(B) by inserting before such redesignated subparagraph (B)
the following new subparagraph:
``(A) the need to maximize open competition in the market
for all features, functions, protocols, and other product and
service options of converter boxes and other cable converters
unrelated to the descrambling or decryption of cable television
signals;''; and
(3) in subsection (c)(2)--
(A) by redesignating subparagraphs (D) and (E) as
subparagraphs (E) and (F), respectively; and
(B) by inserting after subparagraph (C) the following new
subparagraph:
``(D) to ensure that any standards or regulations developed
under the authority of this section to ensure compatibility
between televisions, video cassette recorders, and cable
systems do not affect features, functions, protocols, and other
product and service options other than those specified in
paragraph (1)(B), including telecommunications interface
equipment, home automation communications, and computer network
services;''.
(g) Subscriber Notice.--Section 632 (47 U.S.C. 552) is amended--
(1) by redesignating subsection (c) as subsection (d); and
(2) by inserting after subsection (b) the following new
subsection:
``(c) Subscriber Notice.--A cable operator may provide notice of
service and rate changes to subscribers using any reasonable written
means at its sole discretion. Notwithstanding section 623(b)(6) or any
other provision of this Act, a cable operator shall not be required to
provide prior notice of any rate change that is the result of a
regulatory fee, franchise fee, or any other fee, tax, assessment, or
charge of any kind imposed by any Federal agency, State, or franchising
authority on the transaction between the operator and the
subscriber.''.
(h) Program Access.--Section 628 (47 U.S.C. 548) is amended by
adding at the end the following:
``(j) Common Carriers.--Any provision that applies to a cable
operator under this section shall apply to a common carrier or its
affiliate that provides video programming by any means directly to
subscribers. Any such provision that applies to a satellite cable
programming vendor in which a cable operator has an attributable
interest shall apply to any satellite cable programming vendor in which
such common carrier has an attributable interest. For the purposes of
this subsection, two or fewer common officers or directors shall not by
itself establish an attributable interest by a common carrier in a
satellite cable programming vendor (or its parent company).''.
(i) Antitrafficking.--Section 617 (47 U.S.C. 537) is amended--
(1) by striking subsections (a) through (d); and
(2) in subsection (e), by striking ``(e)'' and all that follows
through ``a franchising authority'' and inserting ``A franchising
authority''.
(j) Aggregation of Equipment Costs.--Section 623(a) (47 U.S.C.
543(a)) is amended by adding at the end the following new paragraph:
``(7) Aggregation of equipment costs.--
``(A) In general.--The Commission shall allow cable
operators, pursuant to any rules promulgated under subsection
(b)(3), to aggregate, on a franchise, system, regional, or
company level, their equipment costs into broad categories,
such as converter boxes, regardless of the varying levels of
functionality of the equipment within each such broad category.
Such aggregation shall not be permitted with respect to
equipment used by subscribers who receive only a rate regulated
basic service tier.
``(B) Revision to commission rules; forms.--Within 120 days
of the date of enactment of the Telecommunications Act of 1996,
the Commission shall issue revisions to the appropriate rules
and forms necessary to implement subparagraph (A).''.
(k) Treatment of Prior Year Losses.--
(1) Amendment.--Section 623 (48 U.S.C. 543) is amended by
adding at the end thereof the following:
``(n) Treatment of Prior Year Losses.--Notwithstanding any other
provision of this section or of section 612, losses associated with a
cable system (including losses associated with the grant or award of a
franchise) that were incurred prior to September 4, 1992, with respect
to a cable system that is owned and operated by the original franchisee
of such system shall not be disallowed, in whole or in part, in the
determination of whether the rates for any tier of service or any type
of equipment that is subject to regulation under this section are
lawful.''.
(2) Effective date.--The amendment made by paragraph (1) shall
take effect on the date of enactment of this Act and shall be
applicable to any rate proposal filed on or after September 4,
1993, upon which no final action has been taken by December 1,
1995.

13dcc054caaf9bc8d2c3e06f3fda211b4f6b946a7a2b6973021152e5e5e3de58

(a) Provisions for Regulation of Cable Service Provided by
Telephone Companies.--Title VI (47 U.S.C. 521 et seq.) is amended by
adding at the end the following new part:
``PART V--VIDEO PROGRAMMING SERVICES PROVIDED BY TELEPHONE COMPANIES
``SEC. 651. REGULATORY TREATMENT OF VIDEO PROGRAMMING SERVICES.
``(a) Limitations on Cable Regulation.--
``(1) Radio-based systems.--To the extent that a common carrier
(or any other person) is providing video programming to subscribers
using radio communication, such carrier (or other person) shall be
subject to the requirements of title III and section 652, but shall
not otherwise be subject to the requirements of this title.
``(2) Common carriage of video traffic.--To the extent that a
common carrier is providing transmission of video programming on a
common carrier basis, such carrier shall be subject to the
requirements of title II and section 652, but shall not otherwise
be subject to the requirements of this title. This paragraph shall
not affect the treatment under section 602(7)(C) of a facility of a
common carrier as a cable system.
``(3) Cable systems and open video systems.--To the extent that
a common carrier is providing video programming to its subscribers
in any manner other than that described in paragraphs (1) and (2)--
``(A) such carrier shall be subject to the requirements of
this title, unless such programming is provided by means of an
open video system for which the Commission has approved a
certification under section 653; or
``(B) if such programming is provided by means of an open
video system for which the Commission has approved a
certification under section 653, such carrier shall be subject
to the requirements of this part, but shall be subject to parts
I through IV of this title only as provided in 653(c).
``(4) Election to operate as open video system.--A common
carrier that is providing video programming in a manner described
in paragraph (1) or (2), or a combination thereof, may elect to
provide such programming by means of an open video system that
complies with section 653. If the Commission approves such
carrier's certification under section 653, such carrier shall be
subject to the requirements of this part, but shall be subject to
parts I through IV of this title only as provided in 653(c).
``(b) Limitations on Interconnection Obligations.--A local exchange
carrier that provides cable service through an open video system or a
cable system shall not be required, pursuant to title II of this Act,
to make capacity available on a nondiscriminatory basis to any other
person for the provision of cable service directly to subscribers.
``(c) Additional Regulatory Relief.--A common carrier shall not be
required to obtain a certificate under section 214 with respect to the
establishment or operation of a system for the delivery of video
programming.
``SEC. 652. PROHIBITION ON BUY OUTS.
``(a) Acquisitions by Carriers.--No local exchange carrier or any
affiliate of such carrier owned by, operated by, controlled by, or
under common control with such carrier may purchase or otherwise
acquire directly or indirectly more than a 10 percent financial
interest, or any management interest, in any cable operator providing
cable service within the local exchange carrier's telephone service
area.
``(b) Acquisitions by Cable Operators.--No cable operator or
affiliate of a cable operator that is owned by, operated by, controlled
by, or under common ownership with such cable operator may purchase or
otherwise acquire, directly or indirectly, more than a 10 percent
financial interest, or any management interest, in any local exchange
carrier providing telephone exchange service within such cable
operator's franchise area.
``(c) Joint Ventures.--A local exchange carrier and a cable
operator whose telephone service area and cable franchise area,
respectively, are in the same market may not enter into any joint
venture or partnership to provide video programming directly to
subscribers or to provide telecommunications services within such
market.
``(d) Exceptions.--
``(1) Rural systems.--Notwithstanding subsections (a), (b), and
(c) of this section, a local exchange carrier (with respect to a
cable system located in its telephone service area) and a cable
operator (with respect to the facilities of a local exchange
carrier used to provide telephone exchange service in its cable
franchise area) may obtain a controlling interest in, management
interest in, or enter into a joint venture or partnership with the
operator of such system or facilities for the use of such system or
facilities to the extent that--
``(A) such system or facilities only serve incorporated or
unincorporated--
``(i) places or territories that have fewer than 35,000
inhabitants; and
``(ii) are outside an urbanized area, as defined by the
Bureau of the Census; and
``(B) in the case of a local exchange carrier, such system,
in the aggregate with any other system in which such carrier
has an interest, serves less than 10 percent of the households
in the telephone service area of such carrier.
``(2) Joint use.--Notwithstanding subsection (c), a local
exchange carrier may obtain, with the concurrence of the cable
operator on the rates, terms, and conditions, the use of that part
of the transmission facilities of a cable system extending from the
last multi-user terminal to the premises of the end user, if such
use is reasonably limited in scope and duration, as determined by
the Commission.
``(3) Acquisitions in competitive markets.--Notwithstanding
subsections (a) and (c), a local exchange carrier may obtain a
controlling interest in, or form a joint venture or other
partnership with, or provide financing to, a cable system
(hereinafter in this paragraph referred to as `the subject cable
system'), if--
``(A) the subject cable system operates in a television
market that is not in the top 25 markets, and such market has
more than 1 cable system operator, and the subject cable system
is not the cable system with the most subscribers in such
television market;
``(B) the subject cable system and the cable system with
the most subscribers in such television market held on May 1,
1995, cable television franchises from the largest municipality
in the television market and the boundaries of such franchises
were identical on such date;
``(C) the subject cable system is not owned by or under
common ownership or control of any one of the 50 cable system
operators with the most subscribers as such operators existed
on May 1, 1995; and
``(D) the system with the most subscribers in the
television market is owned by or under common ownership or
control of any one of the 10 largest cable system operators as
such operators existed on May 1, 1995.
``(4) Exempt cable systems.--Subsection (a) does not apply to
any cable system if--
``(A) the cable system serves no more than 17,000 cable
subscribers, of which no less than 8,000 live within an urban
area, and no less than 6,000 live within a nonurbanized area as
of June 1, 1995;
``(B) the cable system is not owned by, or under common
ownership or control with, any of the 50 largest cable system
operators in existence on June 1, 1995; and
``(C) the cable system operates in a television market that
was not in the top 100 television markets as of June 1, 1995.
``(5) Small cable systems in nonurban areas.--Notwithstanding
subsections (a) and (c), a local exchange carrier with less than
$100,000,000 in annual operating revenues (or any affiliate of such
carrier owned by, operated by, controlled by, or under common
control with such carrier) may purchase or otherwise acquire more
than a 10 percent financial interest in, or any management interest
in, or enter into a joint venture or partnership with, any cable
system within the local exchange carrier's telephone service area
that serves no more than 20,000 cable subscribers, if no more than
12,000 of those subscribers live within an urbanized area, as
defined by the Bureau of the Census.
``(6) Waivers.--The Commission may waive the restrictions of
subsections (a), (b), or (c) only if--
``(A) the Commission determines that, because of the nature
of the market served by the affected cable system or facilities
used to provide telephone exchange service--
``(i) the affected cable operator or local exchange
carrier would be subjected to undue economic distress by
the enforcement of such provisions;
``(ii) the system or facilities would not be
economically viable if such provisions were enforced; or
``(iii) the anticompetitive effects of the proposed
transaction are clearly outweighed in the public interest
by the probable effect of the transaction in meeting the
convenience and needs of the community to be served; and
``(B) the local franchising authority approves of such
waiver.
``(e) Definition of Telephone Service Area.--For purposes of this
section, the term `telephone service area' when used in connection with
a common carrier subject in whole or in part to title II of this Act
means the area within which such carrier provided telephone exchange
service as of January 1, 1993, but if any common carrier after such
date transfers its telephone exchange service facilities to another
common carrier, the area to which such facilities provide telephone
exchange service shall be treated as part of the telephone service area
of the acquiring common carrier and not of the selling common carrier.
``SEC. 653. ESTABLISHMENT OF OPEN VIDEO SYSTEMS.
``(a) Open Video Systems.--
``(1) Certificates of compliance.--A local exchange carrier may
provide cable service to its cable service subscribers in its
telephone service area through an open video system that complies
with this section. To the extent permitted by such regulations as
the Commission may prescribe consistent with the public interest,
convenience, and necessity, an operator of a cable system or any
other person may provide video programming through an open video
system that complies with this section. An operator of an open
video system shall qualify for reduced regulatory burdens under
subsection (c) of this section if the operator of such system
certifies to the Commission that such carrier complies with the
Commission's regulations under subsection (b) and the Commission
approves such certification. The Commission shall publish notice of
the receipt of any such certification and shall act to approve or
disapprove any such certification within 10 days after receipt of
such certification.
``(2) Dispute resolution.--The Commission shall have the
authority to resolve disputes under this section and the
regulations prescribed thereunder. Any such dispute shall be
resolved within 180 days after notice of such dispute is submitted
to the Commission. At that time or subsequently in a separate
damages proceeding, the Commission may, in the case of any
violation of this section, require carriage, award damages to any
person denied carriage, or any combination of such sanctions. Any
aggrieved party may seek any other remedy available under this Act.
``(b) Commission Actions.--
``(1) Regulations required.--Within 6 months after the date of
enactment of the Telecommunications Act of 1996, the Commission
shall complete all actions necessary (including any
reconsideration) to prescribe regulations that--
``(A) except as required pursuant to section 611, 614, or
615, prohibit an operator of an open video system from
discriminating among video programming providers with regard to
carriage on its open video system, and ensure that the rates,
terms, and conditions for such carriage are just and
reasonable, and are not unjustly or unreasonably
discriminatory;
``(B) if demand exceeds the channel capacity of the open
video system, prohibit an operator of an open video system and
its affiliates from selecting the video programming services
for carriage on more than one-third of the activated channel
capacity on such system, but nothing in this subparagraph shall
be construed to limit the number of channels that the carrier
and its affiliates may offer to provide directly to
subscribers;
``(C) permit an operator of an open video system to carry
on only one channel any video programming service that is
offered by more than one video programming provider (including
the local exchange carrier's video programming affiliate):
Provided, That subscribers have ready and immediate access to
any such video programming service;
``(D) extend to the distribution of video programming over
open video systems the Commission's regulations concerning
sports exclusivity (47 C.F.R. 76.67), network nonduplication
(47 C.F.R. 76.92 et seq.), and syndicated exclusivity (47
C.F.R. 76.151 et seq.); and
``(E)(i) prohibit an operator of an open video system from
unreasonably discriminating in favor of the operator or its
affiliates with regard to material or information (including
advertising) provided by the operator to subscribers for the
purposes of selecting programming on the open video system, or
in the way such material or information is presented to
subscribers;
``(ii) require an operator of an open video system to
ensure that video programming providers or copyright holders
(or both) are able suitably and uniquely to identify their
programming services to subscribers;
``(iii) if such identification is transmitted as part of
the programming signal, require the carrier to transmit such
identification without change or alteration; and
``(iv) prohibit an operator of an open video system from
omitting television broadcast stations or other unaffiliated
video programming services carried on such system from any
navigational device, guide, or menu.
``(2) Consumer access.--Subject to the requirements of
paragraph (1) and the regulations thereunder, nothing in this
section prohibits a common carrier or its affiliate from
negotiating mutually agreeable terms and conditions with over-the-
air broadcast stations and other unaffiliated video programming
providers to allow consumer access to their signals on any level or
screen of any gateway, menu, or other program guide, whether
provided by the carrier or its affiliate.
``(c) Reduced Regulatory Burdens for Open Video Systems.--
``(1) In general.--Any provision that applies to a cable
operator under--
``(A) sections 613 (other than subsection (a) thereof),
616, 623(f), 628, 631, and 634 of this title, shall apply,
``(B) sections 611, 614, and 615 of this title, and section
325 of title III, shall apply in accordance with the
regulations prescribed under paragraph (2), and
``(C) sections 612 and 617, and parts III and IV (other
than sections 623(f), 628, 631, and 634), of this title shall
not apply,
to any operator of an open video system for which the Commission
has approved a certification under this section.
``(2) Implementation.--
``(A) Commission action.--In the rulemaking proceeding to
prescribe the regulations required by subsection (b)(1), the
Commission shall, to the extent possible, impose obligations
that are no greater or lesser than the obligations contained in
the provisions described in paragraph (1)(B) of this
subsection. The Commission shall complete all action (including
any reconsideration) to prescribe such regulations no later
than 6 months after the date of enactment of the
Telecommunications Act of 1996.
``(B) Fees.--An operator of an open video system under this
part may be subject to the payment of fees on the gross
revenues of the operator for the provision of cable service
imposed by a local franchising authority or other governmental
entity, in lieu of the franchise fees permitted under section
622. The rate at which such fees are imposed shall not exceed
the rate at which franchise fees are imposed on any cable
operator transmitting video programming in the franchise area,
as determined in accordance with regulations prescribed by the
Commission. An operator of an open video system may designate
that portion of a subscriber's bill attributable to the fee
under this subparagraph as a separate item on the bill.
``(3) Regulatory streamlining.--With respect to the
establishment and operation of an open video system, the
requirements of this section shall apply in lieu of, and not in
addition to, the requirements of title II.
``(4) Treatment as cable operator.--Nothing in this Act
precludes a video programming provider making use of an open video
system from being treated as an operator of a cable system for
purposes of section 111 of title 17, United States Code.
``(d) Definition of Telephone Service Area.--For purposes of this
section, the term `telephone service area' when used in connection with
a common carrier subject in whole or in part to title II of this Act
means the area within which such carrier is offering telephone exchange
service.''.
(b) Conforming and Technical Amendments.--
(1) Repeal.--Subsection (b) of section 613 (47 U.S.C. 533(b))
is repealed.
(2) Definitions.--Section 602 (47 U.S.C. 531) is amended--
(A) in paragraph (7), by striking ``, or (D)'' and
inserting the following: ``, unless the extent of such use is
solely to provide interactive on-demand services; (D) an open
video system that complies with section 653 of this title; or
(E)'';
(B) by redesignating paragraphs (12) through (19) as
paragraphs (13) through (20), respectively; and
(C) by inserting after paragraph (11) the following new
paragraph:
``(12) the term `interactive on-demand services' means a
service providing video programming to subscribers over switched
networks on an on-demand, point-to-point basis, but does not
include services providing video programming prescheduled by the
programming provider;''.
(3) Termination of video-dialtone regulations.--The
Commission's regulations and policies with respect to video
dialtone requirements issued in CC Docket No. 87-266 shall cease to
be effective on the date of enactment of this Act. This paragraph
shall not be construed to require the termination of any video-
dialtone system that the Commission has approved before the date of
enactment of this Act.

d777bdcdd0cd9e3b360ffc5196a38eda70f58a3274edd51e2a847a62b76bfabc

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

a2514cc4afcd1577042f5abb583568f9e052d9b78b875b9e1bc00873173d2d35

Part III of title VI is amended by inserting after section 628 (47
U.S.C. 548) the following new section:
``SEC. 629. COMPETITIVE AVAILABILITY OF NAVIGATION DEVICES.
``(a) Commercial Consumer Availability of Equipment Used To Access
Services Provided by Multichannel Video Programming Distributors.--The
Commission shall, in consultation with appropriate industry standard-
setting organizations, adopt regulations to assure the commercial
availability, to consumers of multichannel video programming and other
services offered over multichannel video programming systems, of
converter boxes, interactive communications equipment, and other
equipment used by consumers to access multichannel video programming
and other services offered over multichannel video programming systems,
from manufacturers, retailers, and other vendors not affiliated with
any multichannel video programming distributor. Such regulations shall
not prohibit any multichannel video programming distributor from also
offering converter boxes, interactive communications equipment, and
other equipment used by consumers to access multichannel video
programming and other services offered over multichannel video
programming systems, to consumers, if the system operator's charges to
consumers for such devices and equipment are separately stated and not
subsidized by charges for any such service.
``(b) Protection of System Security.--The Commission shall not
prescribe regulations under subsection (a) which would jeopardize
security of multichannel video programming and other services offered
over multichannel video programming systems, or impede the legal rights
of a provider of such services to prevent theft of service.
``(c) Waiver.--The Commission shall waive a regulation adopted
under subsection (a) for a limited time upon an appropriate showing by
a provider of multichannel video programming and other services offered
over multichannel video programming systems, or an equipment provider,
that such waiver is necessary to assist the development or introduction
of a new or improved multichannel video programming or other service
offered over multichannel video programming systems, technology, or
products. Upon an appropriate showing, the Commission shall grant any
such waiver request within 90 days of any application filed under this
subsection, and such waiver shall be effective for all service
providers and products in that category and for all providers of
services and products.
``(d) Avoidance of Redundant Regulations.--
``(1) Commercial availability determinations.--Determinations
made or regulations prescribed by the Commission with respect to
commercial availability to consumers of converter boxes,
interactive communications equipment, and other equipment used by
consumers to access multichannel video programming and other
services offered over multichannel video programming systems,
before the date of enactment of the Telecommunications Act of 1996
shall fulfill the requirements of this section.
``(2) Regulations.--Nothing in this section affects section
64.702(e) of the Commission's regulations (47 C.F.R. 64.702(e)) or
other Commission regulations governing interconnection and
competitive provision of customer premises equipment used in
connection with basic common carrier communications services.
``(e) Sunset.--The regulations adopted under this section shall
cease to apply when the Commission determines that--
``(1) the market for the multichannel video programming
distributors is fully competitive;
``(2) the market for converter boxes, and interactive
communications equipment, used in conjunction with that service is
fully competitive; and
``(3) elimination of the regulations would promote competition
and the public interest.
``(f) Commission's Authority.--Nothing in this section shall be
construed as expanding or limiting any authority that the Commission
may have under law in effect before the date of enactment of the
Telecommunications Act of 1996.''.

c64affd4c3856419808eb4549a7ff15de72b0f2b1a3cb88eb249c43b0b8bb22a

Title VII is amended by inserting after section 712 (47 U.S.C. 612)
the following new section:
``SEC. 713. VIDEO PROGRAMMING ACCESSIBILITY.
``(a) Commission Inquiry.--Within 180 days after the date of
enactment of the Telecommunications Act of 1996, the Federal
Communications Commission shall complete an inquiry to ascertain the
level at which video programming is closed captioned. Such inquiry
shall examine the extent to which existing or previously published
programming is closed captioned, the size of the video programming
provider or programming owner providing closed captioning, the size of
the market served, the relative audience shares achieved, or any other
related factors. The Commission shall submit to the Congress a report
on the results of such inquiry.
``(b) Accountability Criteria.--Within 18 months after such date of
enactment, the Commission shall prescribe such regulations as are
necessary to implement this section. Such regulations shall ensure
that--
``(1) video programming first published or exhibited after the
effective date of such regulations is fully accessible through the
provision of closed captions, except as provided in subsection (d);
and
``(2) video programming providers or owners maximize the
accessibility of video programming first published or exhibited
prior to the effective date of such regulations through the
provision of closed captions, except as provided in subsection (d).
``(c) Deadlines for Captioning.--Such regulations shall include an
appropriate schedule of deadlines for the provision of closed
captioning of video programming.
``(d) Exemptions.--Notwithstanding subsection (b)--
``(1) the Commission may exempt by regulation programs, classes
of programs, or services for which the Commission has determined
that the provision of closed captioning would be economically
burdensome to the provider or owner of such programming;
``(2) a provider of video programming or the owner of any
program carried by the provider shall not be obligated to supply
closed captions if such action would be inconsistent with contracts
in effect on the date of enactment of the Telecommunications Act of
1996, except that nothing in this section shall be construed to
relieve a video programming provider of its obligations to provide
services required by Federal law; and
``(3) a provider of video programming or program owner may
petition the Commission for an exemption from the requirements of
this section, and the Commission may grant such petition upon a
showing that the requirements contained in this section would
result in an undue burden.
``(e) Undue Burden.--The term `undue burden' means significant
difficulty or expense. In determining whether the closed captions
necessary to comply with the requirements of this paragraph would
result in an undue economic burden, the factors to be considered
include--
``(1) the nature and cost of the closed captions for the
programming;
``(2) the impact on the operation of the provider or program
owner;
``(3) the financial resources of the provider or program owner;
and
``(4) the type of operations of the provider or program owner.
``(f) Video Descriptions Inquiry.--Within 6 months after the date
of enactment of the Telecommunications Act of 1996, the Commission
shall commence an inquiry to examine the use of video descriptions on
video programming in order to ensure the accessibility of video
programming to persons with visual impairments, and report to Congress
on its findings. The Commission's report shall assess appropriate
methods and schedules for phasing video descriptions into the
marketplace, technical and quality standards for video descriptions, a
definition of programming for which video descriptions would apply, and
other technical and legal issues that the Commission deems appropriate.
``(g) Video Description.--For purposes of this section, `video
description' means the insertion of audio narrated descriptions of a
television program's key visual elements into natural pauses between
the program's dialogue.
``(h) Private Rights of Actions Prohibited.--Nothing in this
section shall be construed to authorize any private right of action to
enforce any requirement of this section or any regulation thereunder.
The Commission shall have exclusive jurisdiction with respect to any
complaint under this section.''.

27231b3b5192a94166fa8792d75da6fb5c263f829608d888f5fbe924f48a5e02

Title I is amended by inserting after section 9 (47 U.S.C. 159) the
following new section:
``SEC. 10. COMPETITION IN PROVISION OF TELECOMMUNICATIONS SERVICE.
``(a) Regulatory flexibility.--Notwithstanding section 332(c)(1)(A)
of this Act, the Commission shall forbear from applying any regulation
or any provision of this Act to a telecommunications carrier or
telecommunications service, or class of telecommunications carriers or
telecommunications services, in any or some of its or their geographic
markets, if the Commission determines that--
``(1) enforcement of such regulation or provision is not
necessary to ensure that the charges, practices, classifications,
or regulations by, for, or in connection with that
telecommunications carrier or telecommunications service are just
and reasonable and are not unjustly or unreasonably discriminatory;
``(2) enforcement of such regulation or provision is not
necessary for the protection of consumers; and
``(3) forbearance from applying such provision or regulation is
consistent with the public interest.
``(b) Competitive Effect To Be Weighed.--In making the
determination under subsection (a)(3), the Commission shall consider
whether forbearance from enforcing the provision or regulation will
promote competitive market conditions, including the extent to which
such forbearance will enhance competition among providers of
telecommunications services. If the Commission determines that such
forbearance will promote competition among providers of
telecommunications services, that determination may be the basis for a
Commission finding that forbearance is in the public interest.
``(c) Petition for Forbearance.--Any telecommunications carrier, or
class of telecommunications carriers, may submit a petition to the
Commission requesting that the Commission exercise the authority
granted under this section with respect to that carrier or those
carriers, or any service offered by that carrier or carriers. Any such
petition shall be deemed granted if the Commission does not deny the
petition for failure to meet the requirements for forbearance under
subsection (a) within one year after the Commission receives it, unless
the one-year period is extended by the Commission. The Commission may
extend the initial one-year period by an additional 90 days if the
Commission finds that an extension is necessary to meet the
requirements of subsection (a). The Commission may grant or deny a
petition in whole or in part and shall explain its decision in writing.
``(d) Limitation.--Except as provided in section 251(f), the
Commission may not forbear from applying the requirements of section
251(c) or 271 under subsection (a) of this section until it determines
that those requirements have been fully implemented.
``(e) State Enforcement After Commission Forbearance.--A State
commission may not continue to apply or enforce any provision of this
Act that the Commission has determined to forbear from applying under
subsection (a).''.

b99e681ceafc44797163d43c734b7b8282b5fbefea1ee41bd5cbb4eba64aac8b

(a) Biennial Review.--Title I is amended by inserting after section
10 (as added by section 401) the following new section:
``SEC. 11. REGULATORY REFORM.
``(a) Biennial Review of Regulations.--In every even-numbered year
(beginning with 1998), the Commission--
``(1) shall review all regulations issued under this Act in
effect at the time of the review that apply to the operations or
activities of any provider of telecommunications service; and
``(2) shall determine whether any such regulation is no longer
necessary in the public interest as the result of meaningful
economic competition between providers of such service.
``(b) Effect of Determination.--The Commission shall repeal or
modify any regulation it determines to be no longer necessary in the
public interest.''.
(b) Regulatory Relief.--
(1) Streamlined procedures for changes in charges,
classifications, regulations, or practices.--
(A) Section 204(a) (47 U.S.C. 204(a)) is amended--
(i) by striking ``12 months'' the first place it
appears in paragraph (2)(A) and inserting ``5 months'';
(ii) by striking ``effective,'' and all that follows in
paragraph (2)(A) and inserting ``effective.''; and
(iii) by adding at the end thereof the following:
``(3) A local exchange carrier may file with the Commission a
new or revised charge, classification, regulation, or practice on a
streamlined basis. Any such charge, classification, regulation, or
practice shall be deemed lawful and shall be effective 7 days (in
the case of a reduction in rates) or 15 days (in the case of an
increase in rates) after the date on which it is filed with the
Commission unless the Commission takes action under paragraph (1)
before the end of that 7-day or 15-day period, as is
appropriate.''.
(B) Section 208(b) (47 U.S.C. 208(b)) is amended--
(i) by striking ``12 months'' the first place it
appears in paragraph (1) and inserting ``5 months''; and
(ii) by striking ``filed,'' and all that follows in
paragraph (1) and inserting ``filed.''.
(2) Extensions of lines under section 214; armis reports.--The
Commission shall permit any common carrier--
(A) to be exempt from the requirements of section 214 of
the Communications Act of 1934 for the extension of any line;
and
(B) to file cost allocation manuals and ARMIS reports
annually, to the extent such carrier is required to file such
manuals or reports.
(3) Forbearance authority not limited.--Nothing in this
subsection shall be construed to limit the authority of the
Commission to waive, modify, or forbear from applying any of the
requirements to which reference is made in paragraph (1) under any
other provision of this Act or other law.
(4) Effective date of amendments.--The amendments made by
paragraph (1) of this subsection shall apply with respect to any
charge, classification, regulation, or practice filed on or after
one year after the date of enactment of this Act.
(c) Classification of Carriers.--In classifying carriers according
to section 32.11 of its regulations (47 C.F.R. 32.11) and in
establishing reporting requirements pursuant to part 43 of its
regulations (47 C.F.R. part 43) and section 64.903 of its regulations
(47 C.F.R. 64.903), the Commission shall adjust the revenue
requirements to account for inflation as of the release date of the
Commission's Report and Order in CC Docket No. 91-141, and annually
thereafter. This subsection shall take effect on the date of enactment
of this Act.

4e637b6fd535cf7891be721d7e2c378e1314ac5475f136c3bfc93e1f1716c3bd

FUNCTIONS.
(a) Modification of Amateur Radio Examination Procedures.--Section
4(f)(4) (47 U.S.C. 154(f)(4)) is amended--
(1) in subparagraph (A)--
(A) by inserting ``or administering'' after ``for purposes
of preparing'';
(B) by inserting ``of'' after ``than the class''; and
(C) by inserting ``or administered'' after ``for which the
examination is being prepared'';
(2) by striking subparagraph (B);
(3) in subparagraph (H), by striking ``(A), (B), and (C)'' and
inserting ``(A) and (B)'';
(4) in subparagraph (J)--
(A) by striking ``or (B)''; and
(B) by striking the last sentence; and
(5) by redesignating subparagraphs (C) through (J) as
subparagraphs (B) through (I), respectively.
(b) Authority To Designate Entities To Inspect.--Section 4(f)(3)
(47 U.S.C. 154(f)(3)) is amended by inserting before the period at the
end the following: ``: and Provided further, That, in the alternative,
an entity designated by the Commission may make the inspections
referred to in this paragraph''.
(c) Expediting Instructional Television Fixed Service Processing.--
Section 5(c)(1) (47 U.S.C. 155(c)(1)) is amended by striking the last
sentence and inserting the following: ``Except for cases involving the
authorization of service in the instructional television fixed service,
or as otherwise provided in this Act, nothing in this paragraph shall
authorize the Commission to provide for the conduct, by any person or
persons other than persons referred to in paragraph (2) or (3) of
section 556(b) of title 5, United States Code, of any hearing to which
such section applies.''.
(d) Repeal Setting of Depreciation Rates.--The first sentence of
section 220(b) (47 U.S.C. 220(b)) is amended by striking ``shall
prescribe for such carriers'' and inserting ``may prescribe, for such
carriers as it determines to be appropriate,''.
(e) Use of Independent Auditors.--Section 220(c) (47 U.S.C. 220(c))
is amended by adding at the end thereof the following: ``The Commission
may obtain the services of any person licensed to provide public
accounting services under the law of any State to assist with, or
conduct, audits under this section. While so employed or engaged in
conducting an audit for the Commission under this section, any such
person shall have the powers granted the Commission under this
subsection and shall be subject to subsection (f) in the same manner as
if that person were an employee of the Commission.''.
(f) Delegation of Equipment Testing and Certification to Private
Laboratories.--Section 302 (47 U.S.C. 302) is amended by adding at the
end the following:
``(e) The Commission may--
``(1) authorize the use of private organizations for testing
and certifying the compliance of devices or home electronic
equipment and systems with regulations promulgated under this
section;
``(2) accept as prima facie evidence of such compliance the
certification by any such organization; and
``(3) establish such qualifications and standards as it deems
appropriate for such private organizations, testing, and
certification.''.
(g) Making License Modification Uniform.--Section 303(f) (47 U.S.C.
303(f)) is amended by striking ``unless, after a public hearing,'' and
inserting ``unless''.
(h) Eliminate FCC Jurisdiction Over Government-Owned Ship Radio
Stations.--
(1) Section 305 (47 U.S.C. 305) is amended by striking
subsection (b) and redesignating subsections (c) and (d) as (b) and
(c), respectively.
(2) Section 382(2) (47 U.S.C. 382(2)) is amended by striking
``except a vessel of the United States Maritime Administration, the
Inland and Coastwise Waterways Service, or the Panama Canal
Company,''.
(i) Permit Operation of Domestic Ship and Aircraft Radios Without
License.--Section 307(e) (47 U.S.C. 307(e)) is amended to read as
follows:
``(e)(1) Notwithstanding any license requirement established in
this Act, if the Commission determines that such authorization serves
the public interest, convenience, and necessity, the Commission may by
rule authorize the operation of radio stations without individual
licenses in the following radio services: (A) the citizens band radio
service; (B) the radio control service; (C) the aviation radio service
for aircraft stations operated on domestic flights when such aircraft
are not otherwise required to carry a radio station; and (D) the
maritime radio service for ship stations navigated on domestic voyages
when such ships are not otherwise required to carry a radio station.
``(2) Any radio station operator who is authorized by the
Commission to operate without an individual license shall comply with
all other provisions of this Act and with rules prescribed by the
Commission under this Act.
``(3) For purposes of this subsection, the terms `citizens band
radio service', `radio control service', `aircraft station' and `ship
station' shall have the meanings given them by the Commission by
rule.''.
(j) Expedited Licensing for Fixed Microwave Service.--Section
309(b)(2) (47 U.S.C. 309(b)(2)) is amended by striking subparagraph (A)
and redesignating subparagraphs (B) through (G) as subparagraphs (A)
through (F), respectively.
(k) Foreign Directors.--Section 310(b) (47 U.S.C. 310(b)) is
amended--
(1) in paragraph (3), by striking ``of which any officer or
director is an alien or''; and
(2) in paragraph (4), by striking ``of which any officer or
more than one-fourth of the directors are aliens, or''.
(l) Limitation on Silent Station Authorizations.--Section 312 (47
U.S.C. 312) is amended by adding at the end the following:
``(g) If a broadcasting station fails to transmit broadcast signals
for any consecutive 12-month period, then the station license granted
for the operation of that broadcast station expires at the end of that
period, notwithstanding any provision, term, or condition of the
license to the contrary.''.
(m) Modification of Construction Permit Requirement.--Section
319(d) is amended by striking the last two sentences and inserting the
following: ``With respect to any broadcasting station, the Commission
shall not have any authority to waive the requirement of a permit for
construction, except that the Commission may by regulation determine
that a permit shall not be required for minor changes in the facilities
of authorized broadcast stations. With respect to any other station or
class of stations, the Commission shall not waive the requirement for a
construction permit unless the Commission determines that the public
interest, convenience, and necessity would be served by such a
waiver.''.
(n) Conduct of Inspections.--Section 362(b) (47 U.S.C. 362(b)) is
amended to read as follows:
``(b) Every ship of the United States that is subject to this part
shall have the equipment and apparatus prescribed therein inspected at
least once each year by the Commission or an entity designated by the
Commission. If, after such inspection, the Commission is satisfied that
all relevant provisions of this Act and the station license have been
complied with, the fact shall be so certified on the station license by
the Commission. The Commission shall make such additional inspections
at frequent intervals as the Commission determines may be necessary to
ensure compliance with the requirements of this Act. The Commission
may, upon a finding that the public interest could be served thereby--
``(1) waive the annual inspection required under this section
for a period of up to 90 days for the sole purpose of enabling a
vessel to complete its voyage and proceed to a port in the United
States where an inspection can be held; or
``(2) waive the annual inspection required under this section
for a vessel that is in compliance with the radio provisions of the
Safety Convention and that is operating solely in waters beyond the
jurisdiction of the United States: Provided, That such inspection
shall be performed within 30 days of such vessel's return to the
United States.''.
(o) Inspection by Other Entities.--Section 385 (47 U.S.C. 385) is
amended--
(1) by inserting ``or an entity designated by the Commission''
after ``The Commission''; and
(2) by adding at the end thereof the following: ``In accordance
with such other provisions of law as apply to Government contracts,
the Commission may enter into contracts with any person for the
purpose of carrying out such inspections and certifying compliance
with those requirements, and may, as part of any such contract,
allow any such person to accept reimbursement from the license
holder for travel and expense costs of any employee conducting an
inspection or certification.''.
Subtitle A--Obscene, Harassing, and Wrongful Utilization of
Telecommunications Facilities

f19e6a56408bbdcabf97b6e07bfbf73675933d94bdc3e84c6008bd781f4493e6

This title may be cited as the ``Communications Decency Act of
1996''.

5dfaa0b76c323ec379126fbfcec9e75c4003bacd216f70e7e295a636719ec61f

UNDER THE COMMUNICATIONS ACT OF 1934.
Section 223 (47 U.S.C. 223) is amended--
(1) by striking subsection (a) and inserting in lieu thereof:
``(a) Whoever--
``(1) in interstate or foreign communications--
``(A) by means of a telecommunications device knowingly--
``(i) makes, creates, or solicits, and
``(ii) initiates the transmission of,
any comment, request, suggestion, proposal, image, or other
communication which is obscene, lewd, lascivious, filthy, or
indecent, with intent to annoy, abuse, threaten, or harass
another person;
``(B) by means of a telecommunications device knowingly--
``(i) makes, creates, or solicits, and
``(ii) initiates the transmission of,
any comment, request, suggestion, proposal, image, or other
communication which is obscene or indecent, knowing that the
recipient of the communication is under 18 years of age,
regardless of whether the maker of such communication placed
the call or initiated the communication;
``(C) makes a telephone call or utilizes a
telecommunications device, whether or not conversation or
communication ensues, without disclosing his identity and with
intent to annoy, abuse, threaten, or harass any person at the
called number or who receives the communications;
``(D) makes or causes the telephone of another repeatedly
or continuously to ring, with intent to harass any person at
the called number; or
``(E) makes repeated telephone calls or repeatedly
initiates communication with a telecommunications device,
during which conversation or communication ensues, solely to
harass any person at the called number or who receives the
communication; or
``(2) knowingly permits any telecommunications facility under
his control to be used for any activity prohibited by paragraph (1)
with the intent that it be used for such activity,
shall be fined under title 18, United States Code, or imprisoned not
more than two years, or both.''; and
(2) by adding at the end the following new subsections:
``(d) Whoever--
``(1) in interstate or foreign communications knowingly--
``(A) uses an interactive computer service to send to a
specific person or persons under 18 years of age, or
``(B) uses any interactive computer service to display in a
manner available to a person under 18 years of age,
any comment, request, suggestion, proposal, image, or other
communication that, in context, depicts or describes, in terms
patently offensive as measured by contemporary community standards,
sexual or excretory activities or organs, regardless of whether the
user of such service placed the call or initiated the
communication; or
``(2) knowingly permits any telecommunications facility under
such person's control to be used for an activity prohibited by
paragraph (1) with the intent that it be used for such activity,
shall be fined under title 18, United States Code, or imprisoned not
more than two years, or both.
``(e) In addition to any other defenses available by law:
``(1) No person shall be held to have violated subsection (a)
or (d) solely for providing access or connection to or from a
facility, system, or network not under that person's control,
including transmission, downloading, intermediate storage, access
software, or other related capabilities that are incidental to
providing such access or connection that does not include the
creation of the content of the communication.
``(2) The defenses provided by paragraph (1) of this subsection
shall not be applicable to a person who is a conspirator with an
entity actively involved in the creation or knowing distribution of
communications that violate this section, or who knowingly
advertises the availability of such communications.
``(3) The defenses provided in paragraph (1) of this subsection
shall not be applicable to a person who provides access or
connection to a facility, system, or network engaged in the
violation of this section that is owned or controlled by such
person.
``(4) No employer shall be held liable under this section for
the actions of an employee or agent unless the employee's or
agent's conduct is within the scope of his or her employment or
agency and the employer (A) having knowledge of such conduct,
authorizes or ratifies such conduct, or (B) recklessly disregards
such conduct.
``(5) It is a defense to a prosecution under subsection
(a)(1)(B) or (d), or under subsection (a)(2) with respect to the
use of a facility for an activity under subsection (a)(1)(B) that a
person--
``(A) has taken, in good faith, reasonable, effective, and
appropriate actions under the circumstances to restrict or
prevent access by minors to a communication specified in such
subsections, which may involve any appropriate measures to
restrict minors from such communications, including any method
which is feasible under available technology; or
``(B) has restricted access to such communication by
requiring use of a verified credit card, debit account, adult
access code, or adult personal identification number.
``(6) The Commission may describe measures which are
reasonable, effective, and appropriate to restrict access to
prohibited communications under subsection (d). Nothing in this
section authorizes the Commission to enforce, or is intended to
provide the Commission with the authority to approve, sanction, or
permit, the use of such measures. The Commission shall have no
enforcement authority over the failure to utilize such measures.
The Commission shall not endorse specific products relating to such
measures. The use of such measures shall be admitted as evidence of
good faith efforts for purposes of paragraph (5) in any action
arising under subsection (d). Nothing in this section shall be
construed to treat interactive computer services as common carriers
or telecommunications carriers.
``(f)(1) No cause of action may be brought in any court or
administrative agency against any person on account of any activity
that is not in violation of any law punishable by criminal or civil
penalty, and that the person has taken in good faith to implement a
defense authorized under this section or otherwise to restrict or
prevent the transmission of, or access to, a communication specified in
this section.
``(2) No State or local government may impose any liability for
commercial activities or actions by commercial entities, nonprofit
libraries, or institutions of higher education in connection with an
activity or action described in subsection (a)(2) or (d) that is
inconsistent with the treatment of those activities or actions under
this section: Provided, however, That nothing herein shall preclude any
State or local government from enacting and enforcing complementary
oversight, liability, and regulatory systems, procedures, and
requirements, so long as such systems, procedures, and requirements
govern only intrastate services and do not result in the imposition of
inconsistent rights, duties or obligations on the provision of
interstate services. Nothing in this subsection shall preclude any
State or local government from governing conduct not covered by this
section.
``(g) Nothing in subsection (a), (d), (e), or (f) or in the
defenses to prosecution under subsection (a) or (d) shall be construed
to affect or limit the application or enforcement of any other Federal
law.
``(h) For purposes of this section--
``(1) The use of the term `telecommunications device' in this
section--
``(A) shall not impose new obligations on broadcasting
station licensees and cable operators covered by obscenity and
indecency provisions elsewhere in this Act; and
``(B) does not include an interactive computer service.
``(2) The term `interactive computer service' has the meaning
provided in section 230(e)(2).
``(3) The term `access software' means software (including
client or server software) or enabling tools that do not create or
provide the content of the communication but that allow a user to
do any one or more of the following:
``(A) filter, screen, allow, or disallow content;
``(B) pick, choose, analyze, or digest content; or
``(C) transmit, receive, display, forward, cache, search,
subset, organize, reorganize, or translate content.
``(4) The term `institution of higher education' has the
meaning provided in section 1201 of the Higher Education Act of
1965 (20 U.S.C. 1141).
``(5) The term `library' means a library eligible for
participation in State-based plans for funds under title III of the
Library Services and Construction Act (20 U.S.C. 355e et seq.).''.

81f2c6145ee6773b4c821f334c457d42e1ed58ffae76e247168dce6b563613e9

Section 639 (47 U.S.C. 559) is amended by striking ``not more than
$10,000'' and inserting ``under title 18, United States Code,''.

b94ea76d6857de193c74208efe3f6321b10116fad2e06678caa4d15f1a243aa7

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) Subscriber Request.--Upon request by a cable service
subscriber, a cable operator shall, without charge, fully scramble or
otherwise fully block the audio and video programming of each channel
carrying such programming so that one not a subscriber does not receive
it.
``(b) Definition.--As used in this section, the term `scramble'
means to rearrange the content of the signal of the programming so that
the programming cannot be viewed or heard in an understandable
manner.''.

b0768c868ac4c50586769cfa1f511ba3dc63fe91ceaf344f2ba923396c3f3ade

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 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
the programming cannot be viewed or heard in an understandable
manner.''.
(b) Effective Date.--The amendment made by subsection (a) shall
take effect 30 days after the date of enactment of this Act.

0a79252bd54ed572417cf8869852172801981af3ff9f827ad732fc69beb25333

(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 and''.

1ae6d5a5bd159855a2c591ae7f51062f3e40391e5bfb67ec28813b3627f4030a

OBSCENE MATERIALS THROUGH THE USE OF COMPUTERS.
(a) Importation or Transportation.--Section 1462 of title 18,
United States Code, is amended--
(1) in the first undesignated paragraph, by inserting ``or
interactive computer service (as defined in section 230(e)(2) of
the Communications Act of 1934)'' after ``carrier''; and
(2) in the second undesignated paragraph--
(A) by inserting ``or receives,'' after ``takes'';
(B) by inserting ``or interactive computer service (as
defined in section 230(e)(2) of the Communications Act of
1934)'' after ``common carrier''; and
(C) by inserting ``or importation'' after ``carriage''.
(b) Transportation for Purposes of Sale or Distribution.--The first
undesignated paragraph of section 1465 of title 18, United States Code,
is amended--
(1) by striking ``transports in'' and inserting ``transports or
travels in, or uses a facility or means of,'';
(2) by inserting ``or an interactive computer service (as
defined in section 230(e)(2) of the Communications Act of 1934) in
or affecting such commerce'' after ``foreign commerce'' the first
place it appears;
(3) by striking ``, or knowingly travels in'' and all that
follows through ``obscene material in interstate or foreign
commerce,'' and inserting ``of''.
(c) Interpretation.--The amendments made by this section are
clarifying and shall not be interpreted to limit or repeal any
prohibition contained in sections 1462 and 1465 of title 18, United
States Code, before such amendment, under the rule established in
United States v. Alpers, 338 U.S. 680 (1950).

016b85aa7622b56ae17252ce37e5c62f38dc75a648271ad28237f9b59488f698

Section 2422 of title 18, United States Code, is amended--
(1) by inserting ``(a)'' before ``Whoever knowingly''; and
(2) by adding at the end the following:
``(b) Whoever, using any facility or means of interstate or foreign
commerce, including the mail, or within the special maritime and
territorial jurisdiction of the United States, knowingly persuades,
induces, entices, or coerces any individual who has not attained the
age of 18 years to engage in prostitution or any sexual act for which
any person may be criminally prosecuted, or attempts to do so, shall be
fined under this title or imprisoned not more than 10 years, or
both.''.

eb11a25722cd04db5542c4a1dacd601b7d92cfb29d453bc7889a3be0d3e9942f

Title II of the Communications Act of 1934 (47 U.S.C. 201 et seq.)
is amended by adding at the end the following new section:
``SEC. 230. PROTECTION FOR PRIVATE BLOCKING AND SCREENING OF OFFENSIVE
MATERIAL.
``(a) Findings.--The Congress finds the following:
``(1) The rapidly developing array of Internet and other
interactive computer services available to individual Americans
represent an extraordinary advance in the availability of
educational and informational resources to our citizens.
``(2) These services offer users a great degree of control over
the information that they receive, as well as the potential for
even greater control in the future as technology develops.
``(3) The Internet and other interactive computer services
offer a forum for a true diversity of political discourse, unique
opportunities for cultural development, and myriad avenues for
intellectual activity.
``(4) The Internet and other interactive computer services have
flourished, to the benefit of all Americans, with a minimum of
government regulation.
``(5) Increasingly Americans are relying on interactive media
for a variety of political, educational, cultural, and
entertainment services.
``(b) Policy.--It is the policy of the United States--
``(1) to promote the continued development of the Internet and
other interactive computer services and other interactive media;
``(2) to preserve the vibrant and competitive free market that
presently exists for the Internet and other interactive computer
services, unfettered by Federal or State regulation;
``(3) to encourage the development of technologies which
maximize user control over what information is received by
individuals, families, and schools who use the Internet and other
interactive computer services;
``(4) to remove disincentives for the development and
utilization of blocking and filtering technologies that empower
parents to restrict their children's access to objectionable or
inappropriate online material; and
``(5) to ensure vigorous enforcement of Federal criminal laws
to deter and punish trafficking in obscenity, stalking, and
harassment by means of computer.
``(c) Protection for `Good Samaritan' Blocking and Screening of
Offensive Material.--
``(1) Treatment of publisher or speaker.--No provider or user
of an interactive computer service shall be treated as the
publisher or speaker of any information provided by another
information content provider.
``(2) Civil liability.--No provider or user of an interactive
computer service shall be held liable on account of--
``(A) any action voluntarily taken in good faith to
restrict access to or availability of material that the
provider or user considers to be obscene, lewd, lascivious,
filthy, excessively violent, harassing, or otherwise
objectionable, whether or not such material is constitutionally
protected; or
``(B) any action taken to enable or make available to
information content providers or others the technical means to
restrict access to material described in paragraph (1).
``(d) Effect on Other Laws.--
``(1) No effect on criminal law.--Nothing in this section shall
be construed to impair the enforcement of section 223 of this Act,
chapter 71 (relating to obscenity) or 110 (relating to sexual
exploitation of children) of title 18, United States Code, or any
other Federal criminal statute.
``(2) No effect on intellectual property law.--Nothing in this
section shall be construed to limit or expand any law pertaining to
intellectual property.
``(3) State law.--Nothing in this section shall be construed to
prevent any State from enforcing any State law that is consistent
with this section. No cause of action may be brought and no
liability may be imposed under any State or local law that is
inconsistent with this section.
``(4) No effect on communications privacy law.--Nothing in this
section shall be construed to limit the application of the
Electronic Communications Privacy Act of 1986 or any of the
amendments made by such Act, or any similar State law.
``(e) Definitions.--As used in this section:
``(1) Internet.--The term `Internet' means the international
computer network of both Federal and non-Federal interoperable
packet switched data networks.
``(2) Interactive computer service.--The term `interactive
computer service' means any information service, system, or access
software provider that provides or enables computer access by
multiple users to a computer server, including specifically a
service or system that provides access to the Internet and such
systems operated or services offered by libraries or educational
institutions.
``(3) Information content provider.--The term `information
content provider' means any person or entity that is responsible,
in whole or in part, for the creation or development of information
provided through the Internet or any other interactive computer
service.
``(4) Access software provider.--The term `access software
provider' means a provider of software (including client or server
software), or enabling tools that do any one or more of the
following:
``(A) filter, screen, allow, or disallow content;
``(B) pick, choose, analyze, or digest content; or
``(C) transmit, receive, display, forward, cache, search,
subset, organize, reorganize, or translate content.''.
Subtitle B--Violence

66c8fff45ac6d6f2671115dc5a8a30b163d78287eac67d0c1a6bcf041a7f2a96

(a) Findings.--The Congress makes the following findings:
(1) Television influences children's perception of the values
and behavior that are common and acceptable in society.
(2) Television station operators, cable television system
operators, and video programmers should follow practices in
connection with video programming that take into consideration that
television broadcast and cable programming has established a
uniquely pervasive presence in the lives of American children.
(3) The average American child is exposed to 25 hours of
television each week and some children are exposed to as much as 11
hours of television a day.
(4) Studies have shown that children exposed to violent video
programming at a young age have a higher tendency for violent and
aggressive behavior later in life than children not so exposed, and
that children exposed to violent video programming are prone to
assume that acts of violence are acceptable behavior.
(5) Children in the United States are, on average, exposed to
an estimated 8,000 murders and 100,000 acts of violence on
television by the time the child completes elementary school.
(6) Studies indicate that children are affected by the
pervasiveness and casual treatment of sexual material on
television, eroding the ability of parents to develop responsible
attitudes and behavior in their children.
(7) Parents express grave concern over violent and sexual video
programming and strongly support technology that would give them
greater control to block video programming in the home that they
consider harmful to their children.
(8) There is a compelling governmental interest in empowering
parents to limit the negative influences of video programming that
is harmful to children.
(9) Providing parents with timely information about the nature
of upcoming video programming and with the technological tools that
allow them easily to block violent, sexual, or other programming
that they believe harmful to their children is a nonintrusive and
narrowly tailored means of achieving that compelling governmental
interest.
(b) Establishment of Television Rating Code.--
(1) Amendment.--Section 303 (47 U.S.C. 303) is amended by
adding at the end the following:
``(w) Prescribe--
``(1) on the basis of recommendations from an advisory
committee established by the Commission in accordance with section
551(b)(2) of the Telecommunications Act of 1996, guidelines and
recommended procedures for the identification and rating of video
programming that contains sexual, violent, or other indecent
material about which parents should be informed before it is
displayed to children: Provided, That nothing in this paragraph
shall be construed to authorize any rating of video programming on
the basis of its political or religious content; and
``(2) with respect to any video programming that has been
rated, and in consultation with the television industry, rules
requiring distributors of such video programming to transmit such
rating to permit parents to block the display of video programming
that they have determined is inappropriate for their children.''.
(2) Advisory committee requirements.--In establishing an
advisory committee for purposes of the amendment made by paragraph
(1) of this subsection, the Commission shall--
(A) ensure that such committee is composed of parents,
television broadcasters, television programming producers,
cable operators, appropriate public interest groups, and other
interested individuals from the private sector and is fairly
balanced in terms of political affiliation, the points of view
represented, and the functions to be performed by the
committee;
(B) provide to the committee such staff and resources as
may be necessary to permit it to perform its functions
efficiently and promptly; and
(C) require the committee to submit a final report of its
recommendations within one year after the date of the
appointment of the initial members.
(c) Requirement for Manufacture of Televisions That Block
Programs.--Section 303 (47 U.S.C. 303), as amended by subsection (a),
is further amended by adding at the end the following:
``(x) Require, in the case of an apparatus designed to receive
television signals that are shipped in interstate commerce or
manufactured in the United States and that have a picture screen 13
inches or greater in size (measured diagonally), that such apparatus be
equipped with a feature designed to enable viewers to block display of
all programs with a common rating, except as otherwise permitted by
regulations pursuant to section 330(c)(4).''.
(d) Shipping of Televisions That Block Programs.--
(1) Regulations.--Section 330 (47 U.S.C. 330) is amended--
(A) by redesignating subsection (c) as subsection (d); and
(B) by adding after subsection (b) the following new
subsection (c):
``(c)(1) Except as provided in paragraph (2), no person shall ship
in interstate commerce or manufacture in the United States any
apparatus described in section 303(x) of this Act except in accordance
with rules prescribed by the Commission pursuant to the authority
granted by that section.
``(2) This subsection shall not apply to carriers transporting
apparatus referred to in paragraph (1) without trading in it.
``(3) The rules prescribed by the Commission under this subsection
shall provide for the oversight by the Commission of the adoption of
standards by industry for blocking technology. Such rules shall require
that all such apparatus be able to receive the rating signals which
have been transmitted by way of line 21 of the vertical blanking
interval and which conform to the signal and blocking specifications
established by industry under the supervision of the Commission.
``(4) As new video technology is developed, the Commission shall
take such action as the Commission determines appropriate to ensure
that blocking service continues to be available to consumers. If the
Commission determines that an alternative blocking technology exists
that--
``(A) enables parents to block programming based on identifying
programs without ratings,
``(B) is available to consumers at a cost which is comparable
to the cost of technology that allows parents to block programming
based on common ratings, and
``(C) will allow parents to block a broad range of programs on
a multichannel system as effectively and as easily as technology
that allows parents to block programming based on common ratings,
the Commission shall amend the rules prescribed pursuant to section
303(x) to require that the apparatus described in such section be
equipped with either the blocking technology described in such section
or the alternative blocking technology described in this paragraph.''.
(2) Conforming amendment.--Section 330(d), as redesignated by
subsection (d)(1)(A), is amended by striking ``section 303(s), and
section 303(u)'' and inserting in lieu thereof ``and sections
303(s), 303(u), and 303(x)''.
(e) Applicability and Effective Dates.--
(1) Applicability of rating provision.--The amendment made by
subsection (b) of this section shall take effect 1 year after the
date of enactment of this Act, but only if the Commission
determines, in consultation with appropriate public interest groups
and interested individuals from the private sector, that
distributors of video programming have not, by such date--
(A) established voluntary rules for rating video
programming that contains sexual, violent, or other indecent
material about which parents should be informed before it is
displayed to children, and such rules are acceptable to the
Commission; and
(B) agreed voluntarily to broadcast signals that contain
ratings of such programming.
(2) Effective date of manufacturing provision.--In prescribing
regulations to implement the amendment made by subsection (c), the
Federal Communications Commission shall, after consultation with
the television manufacturing industry, specify the effective date
for the applicability of the requirement to the apparatus covered
by such amendment, which date shall not be less than two years
after the date of enactment of this Act.

b64e6840462df41279288a491b29a1cd061822f38d2bad911910ee48cfc938fe

It is the policy of the United States to encourage broadcast
television, cable, satellite, syndication, other video programming
distributors, and relevant related industries (in consultation with
appropriate public interest groups and interested individuals from the
private sector) to--
(1) establish a technology fund to encourage television and
electronics equipment manufacturers to facilitate the development
of technology which would empower parents to block programming they
deem inappropriate for their children and to encourage the
availability thereof to low income parents;
(2) report to the viewing public on the status of the
development of affordable, easy to use blocking technology; and
(3) establish and promote effective procedures, standards,
systems, advisories, or other mechanisms for ensuring that users
have easy and complete access to the information necessary to
effectively utilize blocking technology and to encourage the
availability thereof to low income parents.
Subtitle C--Judicial Review

8c28ec9b235238de7a07122869d73d151e78021840ed384668d4388b4995a5ae

(a) Three-Judge District Court Hearing.--Notwithstanding any other
provision of law, any civil action challenging the constitutionality,
on its face, of this title or any amendment made by this title, or any
provision thereof, shall be heard by a district court of 3 judges
convened pursuant to the provisions of section 2284 of title 28, United
States Code.
(b) Appellate Review.--Notwithstanding any other provision of law,
an interlocutory or final judgment, decree, or order of the court of 3
judges in an action under subsection (a) holding this title or an
amendment made by this title, or any provision thereof,
unconstitutional shall be reviewable as a matter of right by direct
appeal to the Supreme Court. Any such appeal shall be filed not more
than 20 days after entry of such judgment, decree, or order.

62147bc58aa00b60fc4186923d44a6d4c0ddcc0709baa72a2bb45917af632a7e

(a) Applicability of Amendments to Future Conduct.--
(1) AT&T consent decree.--Any conduct or activity that was,
before the date of enactment of this Act, subject to any
restriction or obligation imposed by the AT&T Consent Decree shall,
on and after such date, be subject to the restrictions and
obligations imposed by the Communications Act of 1934 as amended by
this Act and shall not be subject to the restrictions and the
obligations imposed by such Consent Decree.
(2) GTE consent decree.--Any conduct or activity that was,
before the date of enactment of this Act, subject to any
restriction or obligation imposed by the GTE Consent Decree shall,
on and after such date, be subject to the restrictions and
obligations imposed by the Communications Act of 1934 as amended by
this Act and shall not be subject to the restrictions and the
obligations imposed by such Consent Decree.
(3) McCaw consent decree.--Any conduct or activity that was,
before the date of enactment of this Act, subject to any
restriction or obligation imposed by the McCaw Consent Decree
shall, on and after such date, be subject to the restrictions and
obligations imposed by the Communications Act of 1934 as amended by
this Act and subsection (d) of this section and shall not be
subject to the restrictions and the obligations imposed by such
Consent Decree.
(b) Antitrust Laws.--
(1) Savings clause.--Except as provided in paragraphs (2) and
(3), nothing in this Act or the amendments made by this Act shall
be construed to modify, impair, or supersede the applicability of
any of the antitrust laws.
(2) Repeal.--Subsection (a) of section 221 (47 U.S.C. 221(a))
is repealed.
(3) Clayton act.--Section 7 of the Clayton Act (15 U.S.C. 18)
is amended in the last paragraph by striking ``Federal
Communications Commission,''.
(c) Federal, State, and Local Law.--
(1) No implied effect.--This Act and the amendments made by
this Act shall not be construed to modify, impair, or supersede
Federal, State, or local law unless expressly so provided in such
Act or amendments.
(2) State tax savings provision.--Notwithstanding paragraph
(1), nothing in this Act or the amendments made by this Act shall
be construed to modify, impair, or supersede, or authorize the
modification, impairment, or supersession of, any State or local
law pertaining to taxation, except as provided in sections 622 and
653(c) of the Communications Act of 1934 and section 602 of this
Act.
(d) Commercial Mobile Service Joint Marketing.--Notwithstanding
section 22.903 of the Commission's regulations (47 C.F.R. 22.903) or
any other Commission regulation, a Bell operating company or any other
company may, except as provided in sections 271(e)(1) and 272 of the
Communications Act of 1934 as amended by this Act as they relate to
wireline service, jointly market and sell commercial mobile services in
conjunction with telephone exchange service, exchange access, intraLATA
telecommunications service, interLATA telecommunications service, and
information services.
(e) Definitions.--As used in this section:
(1) AT&T consent decree.--The term ``AT&T Consent Decree''
means the order entered August 24, 1982, in the antitrust action
styled United States v. Western Electric, Civil Action No. 82-0192,
in the United States District Court for the District of Columbia,
and includes any judgment or order with respect to such action
entered on or after August 24, 1982.
(2) GTE consent decree.--The term ``GTE Consent Decree'' means
the order entered December 21, 1984, as restated January 11, 1985,
in the action styled United States v. GTE Corp., Civil Action No.
83-1298, in the United States District Court for the District of
Columbia, and any judgment or order with respect to such action
entered on or after December 21, 1984.
(3) McCaw consent decree.--The term ``McCaw Consent Decree''
means the proposed consent decree filed on July 15, 1994, in the
antitrust action styled United States v. AT&T Corp. and McCaw
Cellular Communications, Inc., Civil Action No. 94-01555, in the
United States District Court for the District of Columbia. Such
term includes any stipulation that the parties will abide by the
terms of such proposed consent decree until it is entered and any
order entering such proposed consent decree.
(4) Antitrust laws.--The term ``antitrust laws'' has the
meaning given it in subsection (a) of the first section of the
Clayton Act (15 U.S.C. 12(a)), except that such term includes the
Act of June 19, 1936 (49 Stat. 1526; 15 U.S.C. 13 et seq.),
commonly known as the Robinson-Patman Act, and section 5 of the
Federal Trade Commission Act (15 U.S.C. 45) to the extent that such
section 5 applies to unfair methods of competition.

08848b0aa4b1b4f4fff80695f394d460927a72603dc24125c00be121f0b28af1

SERVICES.
(a) Preemption.--A provider of direct-to-home satellite service
shall be exempt from the collection or remittance, or both, of any tax
or fee imposed by any local taxing jurisdiction on direct-to-home
satellite service.
(b) Definitions.--For the purposes of this section--
(1) Direct-to-home satellite service.--The term ``direct-to-
home satellite service'' means only programming transmitted or
broadcast by satellite directly to the subscribers' premises
without the use of ground receiving or distribution equipment,
except at the subscribers' premises or in the uplink process to the
satellite.
(2) Provider of direct-to-home satellite service.--For purposes
of this section, a ``provider of direct-to-home satellite service''
means a person who transmits, broadcasts, sells, or distributes
direct-to-home satellite service.
(3) Local taxing jurisdiction.--The term ``local taxing
jurisdiction'' means any municipality, city, county, township,
parish, transportation district, or assessment jurisdiction, or any
other local jurisdiction in the territorial jurisdiction of the
United States with the authority to impose a tax or fee, but does
not include a State.
(4) State.--The term ``State'' means any of the several States,
the District of Columbia, or any territory or possession of the
United States.
(5) Tax or fee.--The terms ``tax'' and ``fee'' mean any local
sales tax, local use tax, local intangible tax, local income tax,
business license tax, utility tax, privilege tax, gross receipts
tax, excise tax, franchise fees, local telecommunications tax, or
any other tax, license, or fee that is imposed for the privilege of
doing business, regulating, or raising revenue for a local taxing
jurisdiction.
(c) Preservation of State Authority.--This section shall not be
construed to prevent taxation of a provider of direct-to-home satellite
service by a State or to prevent a local taxing jurisdiction from
receiving revenue derived from a tax or fee imposed and collected by a
State.

f0fd6650a23d288b09b42fa0457c3640836cd2ac476c985ba892fbf7c79fc7c6

SERVICES PROVIDED OVER TOLL-FREE TELEPHONE CALLS.
(a) Prevention of Unfair Billing Practices.--
(1) In general.--Section 228(c) (47 U.S.C. 228(c)) is amended--
(A) by striking out subparagraph (C) of paragraph (7) and
inserting in lieu thereof the following:
``(C) the calling party being charged for information
conveyed during the call unless--
``(i) the calling party has a written agreement
(including an agreement transmitted through electronic
medium) that meets the requirements of paragraph (8); or
``(ii) the calling party is charged for the information
in accordance with paragraph (9); or'';
(B)(i) by striking ``or'' at the end of subparagraph (C) of
such paragraph;
(ii) by striking the period at the end of subparagraph (D)
of such paragraph and inserting a semicolon and ``or''; and
(iii) by adding at the end thereof the following:
``(E) the calling party being assessed, by virtue of being
asked to connect or otherwise transfer to a pay-per-call
service, a charge for the call.''; and
(C) by adding at the end the following new paragraphs:
``(8) Subscription agreements for billing for information
provided via toll-free calls.--
``(A) In general.--For purposes of paragraph (7)(C)(i), a
written subscription does not meet the requirements of this
paragraph unless the agreement specifies the material terms and
conditions under which the information is offered and
includes--
``(i) the rate at which charges are assessed for the
information;
``(ii) the information provider's name;
``(iii) the information provider's business address;
``(iv) the information provider's regular business
telephone number;
``(v) the information provider's agreement to notify
the subscriber at least one billing cycle in advance of all
future changes in the rates charged for the information;
and
``(vi) the subscriber's choice of payment method, which
may be by direct remit, debit, prepaid account, phone bill,
or credit or calling card.
``(B) Billing arrangements.--If a subscriber elects,
pursuant to subparagraph (A)(vi), to pay by means of a phone
bill--
``(i) the agreement shall clearly explain that the
subscriber will be assessed for calls made to the
information service from the subscriber's phone line;
``(ii) the phone bill shall include, in prominent type,
the following disclaimer:
`Common carriers may not disconnect local or long
distance telephone service for failure to pay disputed
charges for information services.'; and
``(iii) the phone bill shall clearly list the 800
number dialed.
``(C) Use of pins to prevent unauthorized use.--A written
agreement does not meet the requirements of this paragraph
unless it--
``(i) includes a unique personal identification number
or other subscriber-specific identifier and requires a
subscriber to use this number or identifier to obtain
access to the information provided and includes
instructions on its use; and
``(ii) assures that any charges for services accessed
by use of the subscriber's personal identification number
or subscriber-specific identifier be assessed to
subscriber's source of payment elected pursuant to
subparagraph (A)(vi).
``(D) Exceptions.--Notwithstanding paragraph (7)(C), a
written agreement that meets the requirements of this paragraph
is not required--
``(i) for calls utilizing telecommunications devices
for the deaf;
``(ii) for directory services provided by a common
carrier or its affiliate or by a local exchange carrier or
its affiliate; or
``(iii) for any purchase of goods or of services that
are not information services.
``(E) Termination of service.--On receipt by a common
carrier of a complaint by any person that an information
provider is in violation of the provisions of this section, a
carrier shall--
``(i) promptly investigate the complaint; and
``(ii) if the carrier reasonably determines that the
complaint is valid, it may terminate the provision of
service to an information provider unless the provider
supplies evidence of a written agreement that meets the
requirements of this section.
``(F) Treatment of remedies.--The remedies provided in this
paragraph are in addition to any other remedies that are
available under title V of this Act.
``(9) Charges by credit, prepaid, debit, charge, or calling
card in absence of agreement.--For purposes of paragraph
(7)(C)(ii), a calling party is not charged in accordance with this
paragraph unless the calling party is charged by means of a credit,
prepaid, debit, charge, or calling card and the information service
provider includes in response to each call an introductory
disclosure message that--
``(A) clearly states that there is a charge for the call;
``(B) clearly states the service's total cost per minute
and any other fees for the service or for any service to which
the caller may be transferred;
``(C) explains that the charges must be billed on either a
credit, prepaid, debit, charge, or calling card;
``(D) asks the caller for the card number;
``(E) clearly states that charges for the call begin at the
end of the introductory message; and
``(F) clearly states that the caller can hang up at or
before the end of the introductory message without incurring
any charge whatsoever.
``(10) Bypass of introductory disclosure message.--The
requirements of paragraph (9) shall not apply to calls from repeat
callers using a bypass mechanism to avoid listening to the
introductory message: Provided, That information providers shall
disable such a bypass mechanism after the institution of any price
increase and for a period of time determined to be sufficient by
the Federal Trade Commission to give callers adequate and
sufficient notice of a price increase.
``(11) Definition of calling card.--As used in this subsection,
the term `calling card' means an identifying number or code unique
to the individual, that is issued to the individual by a common
carrier and enables the individual to be charged by means of a
phone bill for charges incurred independent of where the call
originates.''.
(2) Regulations.--The Federal Communications Commission shall
revise its regulations to comply with the amendment made by
paragraph (1) not later than 180 days after the date of enactment
of this Act.
(3) Effective date.--The amendments made by paragraph (1) shall
take effect on the date of enactment of this Act.
(b) Clarification of ``Pay-Per-Call Services''.--
(1) Telephone disclosure and dispute resolution act.--Section
204(1) of the Telephone Disclosure and Dispute Resolution Act (15
U.S.C. 5714(1)) is amended to read as follows:
``(1) The term `pay-per-call services' has the meaning provided
in section 228(i) of the Communications Act of 1934, except that
the Commission by rule may, notwithstanding subparagraphs (B) and
(C) of section 228(i)(1) of such Act, extend such definition to
other similar services providing audio information or audio
entertainment if the Commission determines that such services are
susceptible to the unfair and deceptive practices that are
prohibited by the rules prescribed pursuant to section 201(a).''.
(2) Communications act.--Section 228(i)(2) (47 U.S.C.
228(i)(2)) is amended by striking ``or any service the charge for
which is tariffed,''.

d6822b532b6bdf53a5e1b3d9235681f3fbaa3fd9466b0c0a6a429713c721ee73

Title II is amended by inserting after section 221 (47 U.S.C. 221)
the following new section:
``SEC. 222. PRIVACY OF CUSTOMER INFORMATION.
``(a) In General.--Every telecommunications carrier has a duty to
protect the confidentiality of proprietary information of, and relating
to, other telecommunication carriers, equipment manufacturers, and
customers, including telecommunication carriers reselling
telecommunications services provided by a telecommunications carrier.
``(b) Confidentiality of Carrier Information.--A telecommunications
carrier that receives or obtains proprietary information from another
carrier for purposes of providing any telecommunications service shall
use such information only for such purpose, and shall not use such
information for its own marketing efforts.
``(c) Confidentiality of Customer Proprietary Network
Information.--
``(1) Privacy requirements for telecommunications carriers.--
Except as required by law or with the approval of the customer, a
telecommunications carrier that receives or obtains customer
proprietary network information by virtue of its provision of a
telecommunications service shall only use, disclose, or permit
access to individually identifiable customer proprietary network
information in its provision of (A) the telecommunications service
from which such information is derived, or (B) services necessary
to, or used in, the provision of such telecommunications service,
including the publishing of directories.
``(2) Disclosure on request by customers.--A telecommunications
carrier shall disclose customer proprietary network information,
upon affirmative written request by the customer, to any person
designated by the customer.
``(3) Aggregate customer information.--A telecommunications
carrier that receives or obtains customer proprietary network
information by virtue of its provision of a telecommunications
service may use, disclose, or permit access to aggregate customer
information other than for the purposes described in paragraph (1).
A local exchange carrier may use, disclose, or permit access to
aggregate customer information other than for purposes described in
paragraph (1) only if it provides such aggregate information to
other carriers or persons on reasonable and nondiscriminatory terms
and conditions upon reasonable request therefor.
``(d) Exceptions.--Nothing in this section prohibits a
telecommunications carrier from using, disclosing, or permitting access
to customer proprietary network information obtained from its
customers, either directly or indirectly through its agents--
``(1) to initiate, render, bill, and collect for
telecommunications services;
``(2) to protect the rights or property of the carrier, or to
protect users of those services and other carriers from fraudulent,
abusive, or unlawful use of, or subscription to, such services; or
``(3) to provide any inbound telemarketing, referral, or
administrative services to the customer for the duration of the
call, if such call was initiated by the customer and the customer
approves of the use of such information to provide such service.
``(e) Subscriber List Information.--Notwithstanding subsections
(b), (c), and (d), a telecommunications carrier that provides telephone
exchange service shall provide subscriber list information gathered in
its capacity as a provider of such service on a timely and unbundled
basis, under nondiscriminatory and reasonable rates, terms, and
conditions, to any person upon request for the purpose of publishing
directories in any format.
``(f) Definitions.--As used in this section:
``(1) Customer proprietary network information.--The term
`customer proprietary network information' means--
``(A) information that relates to the quantity, technical
configuration, type, destination, and amount of use of a
telecommunications service subscribed to by any customer of a
telecommunications carrier, and that is made available to the
carrier by the customer solely by virtue of the carrier-
customer relationship; and
``(B) information contained in the bills pertaining to
telephone exchange service or telephone toll service received
by a customer of a carrier;
except that such term does not include subscriber list information.
``(2) Aggregate information.--The term `aggregate customer
information' means collective data that relates to a group or
category of services or customers, from which individual customer
identities and characteristics have been removed.
``(3) Subscriber list information.--The term `subscriber list
information' means any information--
``(A) identifying the listed names of subscribers of a
carrier and such subscribers' telephone numbers, addresses, or
primary advertising classifications (as such classifications
are assigned at the time of the establishment of such service),
or any combination of such listed names, numbers, addresses, or
classifications; and
``(B) that the carrier or an affiliate has published,
caused to be published, or accepted for publication in any
directory format.''.

83c40dd78d7bbcc881a9adf4d088828d795b39a1eef567715b58c47b781785f7

Section 224 (47 U.S.C. 224) is amended--
(1) in subsection (a)(1), by striking the first sentence and
inserting the following: ``The term `utility' means any person who
is a local exchange carrier or an electric, gas, water, steam, or
other public utility, and who owns or controls poles, ducts,
conduits, or rights-of-way used, in whole or in part, for any wire
communications.'';
(2) in subsection (a)(4), by inserting after ``system'' the
following: ``or provider of telecommunications service'';
(3) by inserting after subsection (a)(4) the following:
``(5) For purposes of this section, the term
`telecommunications carrier' (as defined in section 3 of this Act)
does not include any incumbent local exchange carrier as defined in
section 251(h).'';
(4) by inserting after ``conditions'' in subsection (c)(1) a
comma and the following: ``or access to poles, ducts, conduits, and
rights-of-way as provided in subsection (f),'';
(5) in subsection (c)(2)(B), by striking ``cable television
services'' and inserting ``the services offered via such
attachments'';
(6) by inserting after subsection (d)(2) the following:
``(3) This subsection shall apply to the rate for any pole
attachment used by a cable television system solely to provide cable
service. Until the effective date of the regulations required under
subsection (e), this subsection shall also apply to the rate for any
pole attachment used by a cable system or any telecommunications
carrier (to the extent such carrier is not a party to a pole attachment
agreement) to provide any telecommunications service.''; and
(7) by adding at the end thereof the following:
``(e)(1) The Commission shall, no later than 2 years after the date
of enactment of the Telecommunications Act of 1996, prescribe
regulations in accordance with this subsection to govern the charges
for pole attachments used by telecommunications carriers to provide
telecommunications services, when the parties fail to resolve a dispute
over such charges. Such regulations shall ensure that a utility charges
just, reasonable, and nondiscriminatory rates for pole attachments.
``(2) A utility shall apportion the cost of providing space on a
pole, duct, conduit, or right-of-way other than the usable space among
entities so that such apportionment equals two-thirds of the costs of
providing space other than the usable space that would be allocated to
such entity under an equal apportionment of such costs among all
attaching entities.
``(3) A utility shall apportion the cost of providing usable space
among all entities according to the percentage of usable space required
for each entity.
``(4) The regulations required under paragraph (1) shall become
effective 5 years after the date of enactment of the Telecommunications
Act of 1996. Any increase in the rates for pole attachments that result
from the adoption of the regulations required by this subsection shall
be phased in equal annual increments over a period of 5 years beginning
on the effective date of such regulations.
``(f)(1) A utility shall provide a cable television system or any
telecommunications carrier with nondiscriminatory access to any pole,
duct, conduit, or right-of-way owned or controlled by it.
``(2) Notwithstanding paragraph (1), a utility providing electric
service may deny a cable television system or any telecommunications
carrier access to its poles, ducts, conduits, or rights-of-way, on a
non-discriminatory basis where there is insufficient capacity and for
reasons of safety, reliability and generally applicable engineering
purposes.
``(g) A utility that engages in the provision of telecommunications
services or cable services shall impute to its costs of providing such
services (and charge any affiliate, subsidiary, or associate company
engaged in the provision of such services) an equal amount to the pole
attachment rate for which such company would be liable under this
section.
``(h) Whenever the owner of a pole, duct, conduit, or right-of-way
intends to modify or alter such pole, duct, conduit, or right-of-way,
the owner shall provide written notification of such action to any
entity that has obtained an attachment to such conduit or right-of-way
so that such entity may have a reasonable opportunity to add to or
modify its existing attachment. Any entity that adds to or modifies its
existing attachment after receiving such notification shall bear a
proportionate share of the costs incurred by the owner in making such
pole, duct, conduit, or right-of-way accessible.
``(i) An entity that obtains an attachment to a pole, conduit, or
right-of-way shall not be required to bear any of the costs of
rearranging or replacing its attachment, if such rearrangement or
replacement is required as a result of an additional attachment or the
modification of an existing attachment sought by any other entity
(including the owner of such pole, duct, conduit, or right-of-way).''.

291d3c4bac4d88c814aea4308857767021e3ec18b746cff883b173d51a08135b

(a) National Wireless Telecommunications Siting Policy.--Section
332(c) (47 U.S.C. 332(c)) is amended by adding at the end the following
new paragraph:
``(7) Preservation of local zoning authority.--
``(A) General authority.--Except as provided in this
paragraph, nothing in this Act shall limit or affect the
authority of a State or local government or instrumentality
thereof over decisions regarding the placement, construction,
and modification of personal wireless service facilities.
``(B) Limitations.--
``(i) The regulation of the placement, construction,
and modification of personal wireless service facilities by
any State or local government or instrumentality thereof--
``(I) shall not unreasonably discriminate among
providers of functionally equivalent services; and
``(II) shall not prohibit or have the effect of
prohibiting the provision of personal wireless
services.
``(ii) A State or local government or instrumentality
thereof shall act on any request for authorization to
place, construct, or modify personal wireless service
facilities within a reasonable period of time after the
request is duly filed with such government or
instrumentality, taking into account the nature and scope
of such request.
``(iii) Any decision by a State or local government or
instrumentality thereof to deny a request to place,
construct, or modify personal wireless service facilities
shall be in writing and supported by substantial evidence
contained in a written record.
``(iv) No State or local government or instrumentality
thereof may regulate the placement, construction, and
modification of personal wireless service facilities on the
basis of the environmental effects of radio frequency
emissions to the extent that such facilities comply with
the Commission's regulations concerning such emissions.
``(v) Any person adversely affected by any final action
or failure to act by a State or local government or any
instrumentality thereof that is inconsistent with this
subparagraph may, within 30 days after such action or
failure to act, commence an action in any court of
competent jurisdiction. The court shall hear and decide
such action on an expedited basis. Any person adversely
affected by an act or failure to act by a State or local
government or any instrumentality thereof that is
inconsistent with clause (iv) may petition the Commission
for relief.
``(C) Definitions.--For purposes of this paragraph--
``(i) the term `personal wireless services' means
commercial mobile services, unlicensed wireless services,
and common carrier wireless exchange access services;
``(ii) the term `personal wireless service facilities'
means facilities for the provision of personal wireless
services; and
``(iii) the term `unlicensed wireless service' means
the offering of telecommunications services using duly
authorized devices which do not require individual
licenses, but does not mean the provision of direct-to-home
satellite services (as defined in section 303(v)).''.
(b) Radio Frequency Emissions.--Within 180 days after the enactment
of this Act, the Commission shall complete action in ET Docket 93-62 to
prescribe and make effective rules regarding the environmental effects
of radio frequency emissions.
(c) Availability of Property.--Within 180 days of the enactment of
this Act, the President or his designee shall prescribe procedures by
which Federal departments and agencies may make available on a fair,
reasonable, and nondiscriminatory basis, property, rights-of-way, and
easements under their control for the placement of new
telecommunications services that are dependent, in whole or in part,
upon the utilization of Federal spectrum rights for the transmission or
reception of such services. These procedures may establish a
presumption that requests for the use of property, rights-of-way, and
easements by duly authorized providers should be granted absent
unavoidable direct conflict with the department or agency's mission, or
the current or planned use of the property, rights-of-way, and
easements in question. Reasonable fees may be charged to providers of
such telecommunications services for use of property, rights-of-way,
and easements. The Commission shall provide technical support to States
to encourage them to make property, rights-of-way, and easements under
their jurisdiction available for such purposes.

828a4688f12d5544a865cd02eb908e9a7fa66edf61ad6ca669253472ac2f074b

Section 332(c) (47 U.S.C. 332(c)) is amended by adding at the end
the following new paragraph:
``(8) Mobile services access.--A person engaged in the
provision of commercial mobile services, insofar as such person is
so engaged, shall not be required to provide equal access to common
carriers for the provision of telephone toll services. If the
Commission determines that subscribers to such services are denied
access to the provider of telephone toll services of the
subscribers' choice, and that such denial is contrary to the public
interest, convenience, and necessity, then the Commission shall
prescribe regulations to afford subscribers unblocked access to the
provider of telephone toll services of the subscribers' choice
through the use of a carrier identification code assigned to such
provider or other mechanism. The requirements for unblocking shall
not apply to mobile satellite services unless the Commission finds
it to be in the public interest to apply such requirements to such
services.''.

4998d5906e19299997d191d3ce01d6d7c4cb2f907836d56d289aba493e3d36bb

(a) In General.--The Commission and each State commission with
regulatory jurisdiction over telecommunications services shall
encourage the deployment on a reasonable and timely basis of advanced
telecommunications capability to all Americans (including, in
particular, elementary and secondary schools and classrooms) by
utilizing, in a manner consistent with the public interest,
convenience, and necessity, price cap regulation, regulatory
forbearance, measures that promote competition in the local
telecommunications market, or other regulating methods that remove
barriers to infrastructure investment.
(b) Inquiry.--The Commission shall, within 30 months after the date
of enactment of this Act, and regularly thereafter, initiate a notice
of inquiry concerning the availability of advanced telecommunications
capability to all Americans (including, in particular, elementary and
secondary schools and classrooms) and shall complete the inquiry within
180 days after its initiation. In the inquiry, the Commission shall
determine whether advanced telecommunications capability is being
deployed to all Americans in a reasonable and timely fashion. If the
Commission's determination is negative, it shall take immediate action
to accelerate deployment of such capability by removing barriers to
infrastructure investment and by promoting competition in the
telecommunications market.
(c) Definitions.--For purposes of this subsection:
(1) Advanced telecommunications capability.--The term
``advanced telecommunications capability'' is defined, without
regard to any transmission media or technology, as high-speed,
switched, broadband telecommunications capability that enables
users to originate and receive high-quality voice, data, graphics,
and video telecommunications using any technology.
(2) Elementary and secondary schools.--The term ``elementary
and secondary schools'' means elementary and secondary schools, as
defined in paragraphs (14) and (25), respectively, of section 14101
of the Elementary and Secondary Education Act of 1965 (20 U.S.C.
8801).

16826e72bac031d9d8153c7b84cd1aa8521f363c6a8cce7c838ac8f730501c4b

(a) Deposit and Use of Auction Escrow Accounts.--Section 309(j)(8)
(47 U.S.C. 309(j)(8)) is amended by adding at the end the following new
subparagraph:
``(C) Deposit and use of auction escrow accounts.--Any
deposits the Commission may require for the qualification of
any person to bid in a system of competitive bidding pursuant
to this subsection shall be deposited in an interest bearing
account at a financial institution designated for purposes of
this subsection by the Commission (after consultation with the
Secretary of the Treasury). Within 45 days following the
conclusion of the competitive bidding--
``(i) the deposits of successful bidders shall be paid
to the Treasury;
``(ii) the deposits of unsuccessful bidders shall be
returned to such bidders; and
``(iii) the interest accrued to the account shall be
transferred to the Telecommunications Development Fund
established pursuant to section 714 of this Act.''.
(b) Establishment and Operation of Fund.--Title VII is amended by
inserting after section 713 (as added by section 305) the following new
section:
``SEC. 714. TELECOMMUNICATIONS DEVELOPMENT FUND.
``(a) Purpose of Section.--It is the purpose of this section--
``(1) to promote access to capital for small businesses in
order to enhance competition in the telecommunications industry;
``(2) to stimulate new technology development, and promote
employment and training; and
``(3) to support universal service and promote delivery of
telecommunications services to underserved rural and urban areas.
``(b) Establishment of Fund.--There is hereby established a body
corporate to be known as the Telecommunications Development Fund, which
shall have succession until dissolved. The Fund shall maintain its
principal office in the District of Columbia and shall be deemed, for
purposes of venue and jurisdiction in civil actions, to be a resident
and citizen thereof.
``(c) Board of Directors.--
``(1) Composition of board; chairman.--The Fund shall have a
Board of Directors which shall consist of 7 persons appointed by
the Chairman of the Commission. Four of such directors shall be
representative of the private sector and three of such directors
shall be representative of the Commission, the Small Business
Administration, and the Department of the Treasury, respectively.
The Chairman of the Commission shall appoint one of the
representatives of the private sector to serve as chairman of the
Fund within 30 days after the date of enactment of this section, in
order to facilitate rapid creation and implementation of the Fund.
The directors shall include members with experience in a number of
the following areas: finance, investment banking, government
banking, communications law and administrative practice, and public
policy.
``(2) Terms of appointed and elected members.--The directors
shall be eligible to serve for terms of 5 years, except of the
initial members, as designated at the time of their appointment--
``(A) 1 shall be eligible to service for a term of 1 year;
``(B) 1 shall be eligible to service for a term of 2 years;
``(C) 1 shall be eligible to service for a term of 3 years;
``(D) 2 shall be eligible to service for a term of 4 years;
and
``(E) 2 shall be eligible to service for a term of 5 years
(1 of whom shall be the Chairman).
Directors may continue to serve until their successors have been
appointed and have qualified.
``(3) Meetings and functions of the board.--The Board of
Directors shall meet at the call of its Chairman, but at least
quarterly. The Board shall determine the general policies which
shall govern the operations of the Fund. The Chairman of the Board
shall, with the approval of the Board, select, appoint, and
compensate qualified persons to fill the offices as may be provided
for in the bylaws, with such functions, powers, and duties as may
be prescribed by the bylaws or by the Board of Directors, and such
persons shall be the officers of the Fund and shall discharge all
such functions, powers, and duties.
``(d) Accounts of the Fund.--The Fund shall maintain its accounts
at a financial institution designated for purposes of this section by
the Chairman of the Board (after consultation with the Commission and
the Secretary of the Treasury). The accounts of the Fund shall consist
of--
``(1) interest transferred pursuant to section 309(j)(8)(C) of
this Act;
``(2) such sums as may be appropriated to the Commission for
advances to the Fund;
``(3) any contributions or donations to the Fund that are
accepted by the Fund; and
``(4) any repayment of, or other payment made with respect to,
loans, equity, or other extensions of credit made from the Fund.
``(e) Use of the Fund.--All moneys deposited into the accounts of
the Fund shall be used solely for--
``(1) the making of loans, investments, or other extensions of
credits to eligible small businesses in accordance with subsection
(f);
``(2) the provision of financial advice to eligible small
businesses;
``(3) expenses for the administration and management of the
Fund (including salaries, expenses, and the rental or purchase of
office space for the fund);
``(4) preparation of research, studies, or financial analyses;
and
``(5) other services consistent with the purposes of this
section.
``(f) Lending and Credit Operations.--Loans or other extensions of
credit from the Fund shall be made available in accordance with the
requirements of the Federal Credit Reform Act of 1990 (2 U.S.C. 661 et
seq.) and any other applicable law to an eligible small business on the
basis of--
``(1) the analysis of the business plan of the eligible small
business;
``(2) the reasonable availability of collateral to secure the
loan or credit extension;
``(3) the extent to which the loan or credit extension promotes
the purposes of this section; and
``(4) other lending policies as defined by the Board.
``(g) Return of Advances.--Any advances appropriated pursuant to
subsection (d)(2) shall be disbursed upon such terms and conditions
(including conditions relating to the time or times of repayment) as
are specified in any appropriations Act providing such advances.
``(h) General Corporate Powers.--The Fund shall have power--
``(1) to sue and be sued, complain and defend, in its corporate
name and through its own counsel;
``(2) to adopt, alter, and use the corporate seal, which shall
be judicially noticed;
``(3) to adopt, amend, and repeal by its Board of Directors,
bylaws, rules, and regulations as may be necessary for the conduct
of its business;
``(4) to conduct its business, carry on its operations, and
have officers and exercise the power granted by this section in any
State without regard to any qualification or similar statute in any
State;
``(5) to lease, purchase, or otherwise acquire, own, hold,
improve, use, or otherwise deal in and with any property, real,
personal, or mixed, or any interest therein, wherever situated, for
the purposes of the Fund;
``(6) to accept gifts or donations of services, or of property,
real, personal, or mixed, tangible or intangible, in aid of any of
the purposes of the Fund;
``(7) to sell, convey, mortgage, pledge, lease, exchange, and
otherwise dispose of its property and assets;
``(8) to appoint such officers, attorneys, employees, and
agents as may be required, to determine their qualifications, to
define their duties, to fix their salaries, require bonds for them,
and fix the penalty thereof; and
``(9) to enter into contracts, to execute instruments, to incur
liabilities, to make loans and equity investment, and to do all
things as are necessary or incidental to the proper management of
its affairs and the proper conduct of its business.
``(i) Accounting, Auditing, and Reporting.--The accounts of the
Fund shall be audited annually. Such audits shall be conducted in
accordance with generally accepted auditing standards by independent
certified public accountants. A report of each such audit shall be
furnished to the Secretary of the Treasury and the Commission. The
representatives of the Secretary and the Commission shall have access
to all books, accounts, financial records, reports, files, and all
other papers, things, or property belonging to or in use by the Fund
and necessary to facilitate the audit.
``(j) Report on Audits by Treasury.--A report of each such audit
for a fiscal year shall be made by the Secretary of the Treasury to the
President and to the Congress not later than 6 months following the
close of such fiscal year. The report shall set forth the scope of the
audit and shall include a statement of assets and liabilities, capital
and surplus or deficit; a statement of surplus or deficit analysis; a
statement of income and expense; a statement of sources and application
of funds; and such comments and information as may be deemed necessary
to keep the President and the Congress informed of the operations and
financial condition of the Fund, together with such recommendations
with respect thereto as the Secretary may deem advisable.
``(k) Definitions.--As used in this section:
``(1) Eligible small business.--The term `eligible small
business' means business enterprises engaged in the
telecommunications industry that have $50,000,000 or less in annual
revenues, on average over the past 3 years prior to submitting the
application under this section.
``(2) Fund.--The term `Fund' means the Telecommunications
Development Fund established pursuant to this section.
``(3) Telecommunications industry.--The term
`telecommunications industry' means communications businesses using
regulated or unregulated facilities or services and includes
broadcasting, telecommunications, cable, computer, data
transmission, software, programming, advanced messaging, and
electronics businesses.''.

2e6bf460e051c86b5b6b05c00bb56c96589ef51255532011723d0085f5bdebb9

(a) Findings; Purpose.--
(1) Findings.--The Congress finds as follows:
(A) Corporation.--There has been established in the
District of Columbia a private, nonprofit corporation known as
the National Education Technology Funding Corporation which is
not an agency or independent establishment of the Federal
Government.
(B) Board of directors.--The Corporation is governed by a
Board of Directors, as prescribed in the Corporation's articles
of incorporation, consisting of 15 members, of which--
(i) five members are representative of public agencies
representative of schools and public libraries;
(ii) five members are representative of State
government, including persons knowledgeable about State
finance, technology and education; and
(iii) five members are representative of the private
sector, with expertise in network technology, finance and
management.
(C) Corporate purposes.--The purposes of the Corporation,
as set forth in its articles of incorporation, are--
(i) to leverage resources and stimulate private
investment in education technology infrastructure;
(ii) to designate State education technology agencies
to receive loans, grants or other forms of assistance from
the Corporation;
(iii) to establish criteria for encouraging States to--
(I) create, maintain, utilize and upgrade
interactive high capacity networks capable of providing
audio, visual and data communications for elementary
schools, secondary schools and public libraries;
(II) distribute resources to assure equitable aid
to all elementary schools and secondary schools in the
State and achieve universal access to network
technology; and
(III) upgrade the delivery and development of
learning through innovative technology-based
instructional tools and applications;
(iv) to provide loans, grants and other forms of
assistance to State education technology agencies, with due
regard for providing a fair balance among types of school
districts and public libraries assisted and the disparate
needs of such districts and libraries;
(v) to leverage resources to provide maximum aid to
elementary schools, secondary schools and public libraries;
and
(vi) to encourage the development of education
telecommunications and information technologies through
public-private ventures, by serving as a clearinghouse for
information on new education technologies, and by providing
technical assistance, including assistance to States, if
needed, to establish State education technology agencies.
(2) Purpose.--The purpose of this section is to recognize the
Corporation as a nonprofit corporation operating under the laws of
the District of Columbia, and to provide authority for Federal
departments and agencies to provide assistance to the Corporation.
(b) Definitions.--For the purpose of this section--
(1) the term ``Corporation'' means the National Education
Technology Funding Corporation described in subsection (a)(1)(A);
(2) the terms ``elementary school'' and ``secondary school''
have the same meanings given such terms in section 14101 of the
Elementary and Secondary Education Act of 1965; and
(3) the term ``public library'' has the same meaning given such
term in section 3 of the Library Services and Construction Act.
(c) Assistance for Education Technology Purposes.--
(1) Receipt by corporation.--Notwithstanding any other
provision of law, in order to carry out the corporate purposes
described in subsection (a)(1)(C), the Corporation shall be
eligible to receive discretionary grants, contracts, gifts,
contributions, or technical assistance from any Federal department
or agency, to the extent otherwise permitted by law.
(2) Agreement.--In order to receive any assistance described in
paragraph (1) the Corporation shall enter into an agreement with
the Federal department or agency providing such assistance, under
which the Corporation agrees--
(A) to use such assistance to provide funding and technical
assistance only for activities which the Board of Directors of
the Corporation determines are consistent with the corporate
purposes described in subsection (a)(1)(C);
(B) to review the activities of State education technology
agencies and other entities receiving assistance from the
Corporation to assure that the corporate purposes described in
subsection (a)(1)(C) are carried out;
(C) that no part of the assets of the Corporation shall
accrue to the benefit of any member of the Board of Directors
of the Corporation, any officer or employee of the Corporation,
or any other individual, except as salary or reasonable
compensation for services;
(D) that the Board of Directors of the Corporation will
adopt policies and procedures to prevent conflicts of interest;
(E) to maintain a Board of Directors of the Corporation
consistent with subsection (a)(1)(B);
(F) that the Corporation, and any entity receiving the
assistance from the Corporation, are subject to the appropriate
oversight procedures of the Congress; and
(G) to comply with--
(i) the audit requirements described in subsection (d);
and
(ii) the reporting and testimony requirements described
in subsection (e).
(3) Construction.--Nothing in this section shall be construed
to establish the Corporation as an agency or independent
establishment of the Federal Government, or to establish the
members of the Board of Directors of the Corporation, or the
officers and employees of the Corporation, as officers or employees
of the Federal Government.
(d) Audits.--
(1) Audits by independent certified public accountants.--
(A) In general.--The Corporation's financial statements
shall be audited annually in accordance with generally accepted
auditing standards by independent certified public accountants
who are certified by a regulatory authority of a State or other
political subdivision of the United States. The audits shall be
conducted at the place or places where the accounts of the
Corporation are normally kept. All books, accounts, financial
records, reports, files, and all other papers, things, or
property belonging to or in use by the Corporation and
necessary to facilitate the audit shall be made available to
the person or persons conducting the audits, and full
facilities for verifying transactions with the balances or
securities held by depositories, fiscal agents, and custodians
shall be afforded to such person or persons.
(B) Reporting requirements.--The report of each annual
audit described in subparagraph (A) shall be included in the
annual report required by subsection (e)(1).
(2) Recordkeeping requirements; audit and examination of
books.--
(A) Recordkeeping requirements.--The Corporation shall
ensure that each recipient of assistance from the Corporation
keeps--
(i) separate accounts with respect to such assistance;
(ii) such records as may be reasonably necessary to
fully disclose--
(I) the amount and the disposition by such
recipient of the proceeds of such assistance;
(II) the total cost of the project or undertaking
in connection with which such assistance is given or
used; and
(III) the amount and nature of that portion of the
cost of the project or undertaking supplied by other
sources; and
(iii) such other records as will facilitate an
effective audit.
(B) Audit and examination of books.--The Corporation shall
ensure that the Corporation, or any of the Corporation's duly
authorized representatives, shall have access for the purpose
of audit and examination to any books, documents, papers, and
records of any recipient of assistance from the Corporation
that are pertinent to such assistance. Representatives of the
Comptroller General shall also have such access for such
purpose.
(e) Annual Report; Testimony to the Congress.--
(1) Annual report.--Not later than April 30 of each year, the
Corporation shall publish an annual report for the preceding fiscal
year and submit that report to the President and the Congress. The
report shall include a comprehensive and detailed evaluation of the
Corporation's operations, activities, financial condition, and
accomplishments under this section and may include such
recommendations as the Corporation deems appropriate.
(2) Testimony before congress.--The members of the Board of
Directors, and officers, of the Corporation shall be available to
testify before appropriate committees of the Congress with respect
to the report described in paragraph (1), the report of any audit
made by the Comptroller General pursuant to this section, or any
other matter which any such committee may determine appropriate.

fc3b4e81d669547d7ae8f96fac754d95eadb982d8acc0e8ebbdcf7a96f8763de

MEDICAL PURPOSES.
The Secretary of Commerce, in consultation with the Secretary of
Health and Human Services and other appropriate departments and
agencies, shall submit a report to the Committee on Commerce of the
House of Representatives and the Committee on Commerce, Science, and
Transportation of the Senate concerning the activities of the Joint
Working Group on Telemedicine, together with any findings reached in
the studies and demonstrations on telemedicine funded by the Public
Health Service or other Federal agencies. The report shall examine
questions related to patient safety, the efficacy and quality of the
services provided, and other legal, medical, and economic issues
related to the utilization of advanced telecommunications services for
medical purposes. The report shall be submitted to the respective
committees by January 31, 1997.

3fdf6585448d29068612f0d55757d63d5ae556da56c6f05dd761439867d6b201

(a) In General.--In addition to any other sums authorized by law,
there are authorized to be appropriated to the Federal Communications
Commission such sums as may be necessary to carry out this Act and the
amendments made by this Act.
(b) Effect on Fees.--For the purposes of section 9(b)(2) (47 U.S.C.
159(b)(2)), additional amounts appropriated pursuant to subsection (a)
shall be construed to be changes in the amounts appropriated for the
performance of activities described in section 9(a) of the
Communications Act of 1934.
(c) Funding Availability.--Section 309(j)(8)(B) (47 U.S.C.
309(j)(8)(B)) is amended by adding at the end the following new
sentence: ``Such offsetting collections are authorized to remain
available until expended.''.
Speaker of the House of Representatives.
Vice President of the United States and
President of the Senate.

8ff02b1ea60b57c6ce115f20c7c5183c55cccee74834f7a1ef76784d50bf71e1

Telecommunications Act of 1996

Other Sections