103D CONGRESS 2D SESSION S. 1822 To foster the further development of the Nation's telecommunications infrastructure and protection of the public interest, and for other purposes. ======================= IN THE SENATE OF THE UNITED STATES February 3 (legislative day, JANUARY 25), 1994 Mr. HOLLINGS (for himself, Mr. DANFORTH, Mr. INOUYE, Mr. STEVENS, Mr. EXON, Mr. PRESSLER, Mr. ROCKEFELLER, Mr. BURNS, Mr. ROBB, Mr. GORTON, Mr. DORGAN, Mr. KERREY, and Mr. KERRY) introduced the following bill; which was read twice and referred to the Committee on Commerce, Science, and Transportation ======================= A BILL To foster the further development of the Nation's telecommunications infrastructure and protection of the public interest, and for other purposes. //Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,\\ !!SECTION 1. SHORT TITLE.!! This Act may be cited as the "Communications Act of 1994". !!SEC. 2. FINDINGS. !! The Congress finds that-- (1) Congress has not passed a broad review of the Communications Act of 1934 since that Act was originally passed; (2) Congress must pass comprehensive communications legislation to promote the development and growth of the national information superhighway; (3) changes in the telecommunications marketplace have made some of the provisions of the Communications Act of 1934 obsolete, unnecessary, or inimical to advances in communications technologies and services; (4) for instance, competition has emerged in many services that were previously thought to be natural monopolies, but the Communications Act of 1934 requires all carriers to be regulated as if they were monopolies; (5) as communications markets change, government must ensure that the public interest, convenience and necessity is preserved; (6) the public interest requires that universal telephone service is protected and advanced, that new telecommunications technologies are deployed rapidly and equitably, and that access by schools, hospitals, public broadcasters, libraries, other public entities, community newspapers, and broadcasters in the smallest markets to advanced telecommunications services is assisted; (7) access to basic telecommunications services is fundamental to safety of life and participation in a democratic society; (8) telecommunications networks make substantial use of public rights of way in real property and in spectrum frequencies, and carriers that make use of such public rights of way have an obligation to provide preferential rates to entities that provide significant public benefits; (9) advanced telecommunications services can enhance the quality of life and promote economic development and international competitiveness; (10) telecommunications infrastructure development is particularly crucial to the continued economic development of rural areas that may lack an adequate industrial or service base for continued development; (11) advancements in the Nation's telecommunications infrastructure will enhance the public welfare by helping to speed the delivery of new services, such as distance learning, remote medical sensing, and distribution of health information; (12) infrastructure advancement can be assisted by joint planning and infrastructure sharing by all carriers providing communications services; (13) increased competition in telecommunications services can, if subject to appropriate safeguards, encourage infrastructure development and have beneficial effects on the price, universal availability, variety, and quality of telecommunications services; (14) the emergence of competition in telecommunications services has already contributed, and can be expected to continue contributing, to the modernization of the infrastructure; (15) competition in the long distance industry and the communications equipment market has brought about lower prices and higher quality services; (16) competition for local communications services has already begun to benefit the public; competitive access providers have deployed thousands of miles of optical fiber in their local networks; local exchange carriers have been prompted by competition to accelerate the installation of optical fiber in their own networks; (17) electric utilities, satellite carriers, and others are prepared to enter the local telephone market over the next few years; (18) a diversity of telecommunications carriers enhances network reliability by providing redundant capacity, thereby lessening the impact of any network failure; (19) competition must proceed under rules that protect consumers and are fair to all telecommunications carriers; (20) all telecommunications carriers, including competitors to the telephone companies, should contribute to universal service and should make their networks available for interconnection by others; (21) removal of all State and local barriers to entry into the telecommunications services market and provision of national standards for interconnection are warranted after mechanisms to protect universal service and rules are established to ensure that competition develops fairly; (22) increasing the availability of interconnection and interoperability among the facilities of telecommunications carriers will help stimulate the development of fair competition among providers; (23) the portability of telecommunications numbers will eliminate a significant advantage held by traditional telephone companies over competitors in the provision of telecommunications services; (24) restrictions on resale and sharing of telecommunications networks retard the growth of competition and restrict the diversity of services available to the public; (25) additional regulatory measures are needed to allow consumers in rural markets and noncompetitive markets the opportunity to benefit from high-quality telecommunications capabilities; (26) regulatory flexibility for existing providers of telephone exchange service is necessary to allow them to respond to competition; (27) the Federal Communications Commission (hereinafter referred to as the "Commission") and the States must have the flexibility to adjust their regulations to the market power of each provider of telecommunications services; (28) the Commission should take steps to ensure network reliability and the development of network standards; (29) access to switched, digital telecommunications service for all segments of the population promotes the core First Amendment goal of diverse information sources by enabling individuals and organizations alike to publish and otherwise make information available in electronic form; (30) the national welfare will be enhanced if community newspapers and broadcasters in the smallest markets are provided ease of entry into the operation of information services disseminated through electronic means primarily to customers in the localities served by such newspapers and broadcasters at reasonable, nondiscriminatory rates to such newspapers; (31) a clear national mandate is needed for full participation in access to telecommunications networks and services by individuals with disabilities; (32) the obligations of telecommunications carriers includes the duty to furnish telecommunications services which are designed to be fully accessible to individuals with disabilities in accordance with such standards as the Commission may prescribe; (33) permitting the Bell operating companies to enter the manufacturing market will stimulate greater research and development, create more jobs, and enhance our international competitiveness; (34) the Bell operating companies should be permitted to provide long distance service for cable television and for cellular hands off immediately because there is little harm, if any, that such entry could cause the public; (35) the Bell operating companies should not be permitted to enter the market for other long distance services until they have eliminated the barriers to competition and interconnection and until the Bell operating company faces competition for local telephone service; (36) safeguards are necessary to ensure that the Bell operating companies do not abuse their market power over local telephone service to discriminate against competitors in the markets for electronic publishing, alarm, and other information services; (37) amending the legal barriers to the provision of video programming by telephone companies in their service areas will encourage competition to existing cable television service providers and encourage telephone companies to upgrade their telecommunications facilities to enable them to deliver video programming, as long as telephone companies are prohibited from buying or combining with existing cable companies in their telephone service areas; (38) as communications technologies and services proliferate, consumers must be given the right to control information concerning their use of those technologies and services; and (39) as competition in the media increases, the Commission should reexamine the need for national and local ownership limits on broadcast stations, consistent with the need to maintain diversity of information sources. !!SEC. 3. EFFECT ON OTHER LAW.!! (a) ANTITRUST LAWS.--Nothing in this Act shall be construed to modify, impair, or supersede the applicability of any antitrust law. (b) FEDERAL, STATE, AND LOCAL LAW.--(1) Except as provided in paragraph (2), this Act shall not be construed to modify, impair, or supersede Federal, State, or local law unless expressly so provided in this Act. (2) This Act shall supersede State and local law to the extent that such law would impair or prevent the operation of this Act. !!TITLE I--PROTECTION AND ADVANCEMENT OF UNIVERSAL SERVICE!! !!SEC. 101. NATIONAL POLICY GOALS.!! Section 1 of the Communications Act of 1934 (47 U.S.C. 151) is amended by inserting "(a)" immediately before "For the purpose of" and by adding at the end the following new subsection: "(b) the primary objective of United States national and international communications policy shall be to protect the public interest. The goals of United States national and international communications policy shall include the following: "(1) To ensure that every person has access to basic telecommunications at reasonable charges. "(2) To promote the development and widespread availability of new technologies. "(3) To ensure that consumes have access to diverse sources of information. "(4) To allow each individual the opportunity to contribute to the free flow of ideas and information through telecommunications services. "(5) To maximize the contribution of communications and information technologies and services to economic welfare and quality of life. "(6) To protect each individual's right to control the use of information concerning his or her use of telecommunications services. "(7) To promote democracy.". !!SEC. 102. UNIVERSAL SERVICE PROTECTION AND ADVANCEMENT.!! (a) IN GENERAL.--Title II of the Communications Act of 1934 (47 U.S.C. 201 et seq.) is amended by adding immediately after section 201 the following new section: !!"SEC. 201A. UNIVERSAL SERVICE PROTECTION AND ADVANCEMENT.!! "(a) DUTY TO CONTRIBUTE.--It shall be the duty of every common carrier engaged in intrastate, interstate, or foreign communication by wire or radio tomary responsibility for defining universal service and ensuring that universal service goals are met. Each State may impose a nondiscriminatory charge on intrastate telecommunications, or take other action, as the State finds necessary to protect and advance universal service. "(2) In considering methods of protecting and advancing universal service, the State may consider assisting directly telecommunications carriers, assisting directly individuals and entities who cannot afford the cost of certain telecommunications services, assisting directly individuals or entities in purchasing or leasing equipment or programming, allowing carriers to compete for the right to obtain funding in exchange for providing certain services, and other options. To the extent that a State establishes a fund to support universal service, all provider of telecommunications services shall be eligible to receive payment from such fund. "(3) If a State has not implemented procedures to carry out the objectives of paragraphs (1) and (2) within two years after the date of enactment of this section, or at any time thereafter fails to meet the objectives of such paragraphs, the Commission shall assume the primary responsibility to ensure that those objectives are met." (b) CONFORMING AMENDMENT.--Section 332(c)(1)(A) of the Cppropriate functional requirements or performance standards, or both, including interoperability standards, are established for telecommunications arrangements that interconnect educational institutions, health care institutions, and libraries with the public switched network. !!TITLE II--TELECOMMUNICATIONS INVESTMENT!! !!SEC. 201. INFRASTRUCTURE INVESTMENT.!! Title II of the Communications Act of 1934 (47 U.S.C. 201 et seq.), as amended by this Act, is further amended by adding at the end the following new section: !!"SEC. 229. INFRASTRUCTURE INVESTMENT.!! "(a) RURAL MARKETS AND NONCOMPETITIVE MARKETS.--If State regulatory authorities fail to achieve the goal of ensuring that telecommunications carriers provide consumers in rural markets and noncompetitive markets with access to high quality, interoperable telecommunications network facilities and capabilities which-- "(1) provide subscribers with sufficient interactive bi- directional network capacity to allow access to information services that provide a combination of voice, data, image, and video; and "(2) are widely available at reasonable nondiscriminatory rates that are based on reasonably identifiable costs of providing such services, then the Commissirticipants fail to reach agreement. "(2) NETWORK PLANNING.-- "(A) REGULATIONS ON JOINT COORDINATED ACTION.--The Commission shall prescribe regulations that permit joint coordinated network planning, design, and cooperative implementation among all telecommunications carriers in the provision of public switched network infrastructure and services. "(B) PROCEDURES.--The Commission shall prescribe regulations establishing procedures to ensure that-- "(i) telecommunications carriers shall make available timely information to other such carriers and information service providers in the same geographic area about the deployment of telecommunications equipment, including software integral to such telecommunications equipment, including upgrades, that will affect a telecommunications carrier's or information service provider's ability to interconnect or interoperate in the same geographic area; "(ii) telecommunications carriers shall not be required to share information required under clause (i) with anyone, including carriers with whom they directly compete, except as may be necessary to meet the interconnection and interoperability requirements set forth in this paragraph; and "(iii) the recipient of any information described in clause (i) shall use it only for its own interconnection and interoperability. "(3) INFRASTRUCTURE SHARING ARRANGEMENTS BETWEEN OR AMONG TELECOMMUNICATIONS CARRIERS.-- "(A) REGULATIONS REQUIRED.--The Commission shall prescribe regulations that require a local exchange carrier to share public switched network infrastructure and function with rd by local exchange carriers and telecommunications carriers lacking economies of scale or scope in accordance with general guidelines contained in the regulations prescribed pursuant to this paragraph: "(v) establish conditions that promote cooperation between local exchange carriers and telecommunications carriers lacking economies of scale or scope; and "(vi) ensure that all regulation rights and obligations for and in connection with the business arrangements described in this paragraph shall be determined exclusively in accordance with the regulations prescribed pursuant to his paragraph. "(4) DISABILITY ACCESS.--The Commission and the States shall ensure that advances in network capabilities and telecommunications service deployed by telecommunications carries are designed to be accessible to individuals with disabilities. "(e) ANNUAL SURVEY.--The Commission shall publish annually a survey of the deployment of technologies on a State-by-State basis. "(f) COST ALLOCATION REGULATIONS.--The Commission shall develop regulations, consistent with the need to protect universal service to allocate a local exchange carrier's costs of deploying of broadband telecommunications facilities between local exchange service and competitive services.". !!TITLE III--REGULATORY REFORM!! !!SEC. 301. DEFINITIONS.!! Section 3 of the Communications Act of 1934 (49 U.S.C. 153) is amended by adding at the end the following new subsections: "(hh) `Local exchange carrier' means a provider of telephone exchange service that the Commission determines that market power. "(ii) `Telecommunications' means the transmission, between or among points specified by the user, or information of the user's choosing, without change in the reform or content of the information as sent and received, by means of electromagnetic transmission, with or without benefit of any closed transmission medium,ovide the subscriber additional, different, or restructured information, or involve subscriber interaction with stored information. "(nn) `Bell operating company' means any of the companies listed in appendix A of the Modification of Final Judgment, and includes any successor or assign of any such company, but does not include any affiliate of any such company. "(oo) `Modification of Final Judgment' means the decree entered August 24, 1982, in United States v. Western Electric, Civil Action No. 82-0192 (United States District Court, District of Columbia).". !!SEC. 302. REGULATORY REFORM.!! Title II of the Communications Act of 1934 (47 U.S.C. 201 et seq.), as amended by this Act, is further amended by adding at the end the following new section: !!"SEC. 230. TELECOMMUNICATIONS COMPETITION.!! "(a) REMOVAL OF BARRIERS TO ENTRY.--Subject to the provisions of section 301 of this Act, at such time as the regulations required by section 201A of this Act have been implemented, or 2 years after the date of enactment of this section, whichever is earlier, no State or local statute or regulation, or other State or local legal requirement, shall prohibit or have the effect of prohibiting the ability of any entity to provide interstate or intrastate telecommunications services. No State or local governmental entity may unreasonably discriminate among telecommunications carriers. "(b) PROVISION OF TELECOMMUNICATIONS SERVICES BY OTHER UTILITIE "(3) nondiscriminatory access, where technically and economically feasible, to the poles, ducts, conduits, and rights of way owned or controlled by the carrier, and nondiscriminatory rates for such access; "(4) nondiscriminatory access to the network functions of the carrier's telecommunications network, which shall be offered on an unbundled basis; and "(5) telecommunications services and network functions without any restrictions on the resale or sharing of those services and functions. The States may prescribe regulations implementing paragraphs (1) through (5) for intrastate services so long as such regulations are not inconsistent with those prescribed by the Commission. "(e) CONSUMER INFORMATION.--As competition for telecommunications services develops, the Commission and State regulatory authorities shall take action to ensure that consumers are given the information necessary to make informed choices among their telecommunications alternatives. "(f) TELECOMMUNICATIONS NUMBER PORTABILITY.--The Commission shall prescribe regulations to ensure that-- "(1) telecommunications number po Any finding by the Commission under section 332 that a provision of title II is inapplicable to a commercial mobile service or a provider of commercial mobile services shall be deemed also to be a determination under this paragraph that the requirements of subparagraphs (A), (B), and (C) of this paragraph are satisfied. "(2) PRICING FLEXIBILITY.--The Commission shall and the States are encouraged to permit telecommunications carriers to have pricing flexibility in service or geographic markets that are found to be competitive. In implementing this subsection, the Commission and the States shall ensure that rates for basic telephone service and for services that are not competitive remain just and reasonable and that universal service is preserved and advanced. "(i) RULES FOR FOREIGN OWNERSHIP.--The provisions of section 310(b) shall not apply to any lawful foreign ownership in a telecommunications carrier prior to February 1, 1994, if that carrier was not regulated as a common carrier prior to the date of enactment of this section and is deemed to be a common carrier under this Act.". !!SEC. 303. IMPLEMENTING REGULATIONS.!! The Commission shall, within 12 months after the date of enactment of this Act, issue regulations to implement this title. Such regulations shall take effect within 6 months after their issuance, except thaerating company, through an affiliate of that company, notwithstanding any restrictions or obligation imposed before the date of enactment of this section pursuant to the Modification of Final Judgment on the lines of business in which a Bell operating company may engage, may manufacture and provide telecommunications equipment and manufacture customer premises equipment, except that neither a Bell operating company nor any of its affiliates may engage in such manufacturing in conjunction with a Bell operating company not so affiliated or any of its affiliates. "(b) REQUIREMENT FOR SEPARATE AFFILIATE.--Any manufacturing or provision authorized under subsection (a) shall be conducted only through an affiliate (hereafter in this section referred to as a `manufacturing affiliate') that is separate from any Bell operating company. "(c) MANUFACTURING REGULATIONS.--The Commission shall prescribe regulations to ensure that-- "(1)(A) such manufacturing affiliate shall maintain books, records, and accounts separate from its affiliated Bell ohin the United States and, except as otherwise provided in this paragraph, all component parts of customer premises equipment manufactured by such affiliate, and all component parts of telecommunications equipment manufactured by such affiliate, shall have been manufactured within the United States; "(B) such affiliate may use component parts manufactured outside the United States if-- "(i) such affiliate first makes a good faith effort to obtain equivalent component parts manufactured within the United States at reasonable prices, terms, and conditions; and "(ii) for the aggregate of telecommunications equipment and customer premises equipment manufactured and sold in the United States by such affiliate in any calendar year, the cost of the components manufactured outside the United States contained in the equipment does not exceed 40 percent of the sales revenue derived from such equipment; "(C) any such affiliate that uses component parts manufactured outside the United States in the manufacture of telecommunications equipment and customer premises equipment within the United States shall-- "(i) certify to the Commission that a good faith effort was made to obtain equivalent parts manufactured within the United States at reasonable prices, terms, and conditions, which certification shall be filed on a quarterly basis with the Commission and list component parts, by type, manufactured outside the United States; and "(ii) certify to the Commission on an annual basis that for the aggregate of telecommunications equipment and customer premises equipment manufactured and sold in the United States by such affiliate in the previous calendar year, the cost of the components manufactured outside the United States contained in such equipment did not exceed the percentage specified in subparagraph (B)(ii) or adjusted in accordance with subparagraph (G); "(D)(i) if the Commission determines, after reviewing the certification required in subparagraph (C)(i), that such affiliate failed to make the good faith effort required in subparagraph (B)(i) or, after reviewing the certification required in subparagraph (C)(ii), that such affiliate has exceeded the percentage specified in subparagraph (B)(ii), the Commission may impose penalties or forfeitures as provided for in title V of this Act; and "(ii) any supplier claiming to be damaged because a manufacturing affiliate failed to make the good faith efforating company; "(5) any debt incurred by such manufacturing affiliate may not be issued by its affiliates, and such manufacturing affiliate shall be prohibited from incurring debt in a manner that would permit a creditor, on default, to have recourse to the assets of its affiliated Bell operating company's telecommunications service business; "(6) such manufacturing affiliate shall not be required to operate separately from the other affiliates of its affiliated Bell operating company; "(7) if an affiliate of a Bell operating company becomes affiliated with a manufacturing entity, such affiliate shall be treated as a manufacturing affiliate of that Bell operating company within the meaning of subsection (b) and shall comply with the requirements of this section; "(8) such manufacturing affiliate shall make available, without discrimination or self-preference as to price, delivery, terms, or conditions, to all regulated local telephone exchange carriers, for use with the public telecommunications network, any telecommunications equipment, including software integral to such telecommunications equipment, including upgrades, manufactured by such affiliate so long as each such purchasing carrier-- "(A) does not either manufacture telecommunications equipment, or have a manufacturing affiliate which manufactures telecommunications equipment; or "(B) agrees to make available, to the Bell operating company affiliated with such manufacturing affiliate or any of the requested local exchange telephone carrier affiliates of such Bell company, any telecommunications equipment, including software integral to such telecommunications equipment, including upgrades, manufactured for use with the public telecommunications network by such purchasing carrier or by any entity or organization with which such purchasing carrier is affiliated; "(9)(A) such manufacturing affiliate shall not discontinue or restrict sales to other regulated local telephone exchange carriers of any telecommunications equipment, including software integral to such telecommunications equipment, including upgrades, that such affiliate manufactures for sale as long as there is reasonable demand for the equipment by such carriers; except that such sales may be discontinued or restricted if such manufacturing affiliate demonstrates to the Commission that it is not making a profit, under a marginal cost standard implemented by the Commission, on the sale of such equipment; "(B) in reaching a determination as to the existence of reasonable demand as referred to in subparagraph (A), the Commission shall within 60 days consider-- "(i) whe maintain and file with the Commission full and complete information with respect to the protocols and technical requirements for connection with and use of its telephone exchange service facilities. Such regulations shall require each such Bell company to report promptly to the Commission any material changes or planned changes to such protocols and requirements, and the schedule for implementation of such changes or planned changes. "(2) DISCLOSURE RESTRICTION.--A Bell operating company shall not disclose to any of its affiliates any information required to be filed under paragraph (1) unless that information is immediately so filed. "(3) COMPETITORS' ACCESS TO INFORMATION.--The Commission may prescribe such additional regulations under this subsection as may be necessary to ensure that manufacturers in competition with a Bell operating company's manufacturing affiliate have ready and equal access to the information required for such competition that such Bell company makes available to its manufacturing affiliate. "(e) REQUIREMENTS FOR BELL OPERATINn shall have the same authority, power, and functions with respect to any Bell operating company as the Commission has in administering and enforcing the provisions of this title with respect to any common carrier subject to this Act. "(2) CIVIL ACTIONS BY INJURED CARRIERS.--Any regulated local telephone exchange carrier injured by an act or omission of a Bell operating company or its manufacturing affiliate which violates the requirements of paragraph (8) or (9) of subsection (c), or the Commission's regulations implementing such paragraphs, may initiate an action in a district court of the United States to recover the full amount of damages sustained in consequence of any such violation and obtain such orders from the court as are necessary to terminate existing violations and to prevent future violations; or such regulated local telephone exchange carrier may seek relief from the Commission pursuant to sections 206 through 209. "(i) EFFECTIVE DATES; DEADLINE.--The authority of the Commission to prescribe regulations to carry out this section is effective on the date of enactment of this section. The Commission shall prescribe such regulations within 180 days after such date of enactment, and the authority to engage in the manufacturing authorized in subsection (a) shall not take effect until regulations prescribed by the Commission under subsections (c), res established by regulation by the State commission of the State in which such Bell company provides local exchange service, including requirements that-- "(A) the independent auditors performing such audits are rotated to ensure their independence; and "(B) each audit submitted to the Commission and to the State commission is certified by the auditor responsible for conducting the audit. "(4) COMMISSION REVIEW.--The Commission shall periodically review and analyze the audits submitted to it under this subsection, and shall provide to the Congress every 2 years-- "(A) a report of its findings on the compliance of the Bell operating companies with this section and the regulations promulgated thereunder; and "(B) an analysis of the impact of such regulations on the affordability of local telephone exchange service. "(5) ACCESS TO ACCOUNTS AND RECORDS.--For purposes of conducting audits and reviews under this subsection, an independent auditor, the Commission, and the State commission shall have access to the financial accounts and records of each Bell operating company and those of its affiliates (including affiliates describe "(4) The term `manufacturing' has the same meaning as such term has in the Modification of Final Judgment as interpreted in United States v. Western Electric, Civil Action No. 82-0192 (United States District Court, District of Columbia) (filed December 3, 1987). "(5) The term `Modification of Final Judgment' means the decree entered August 24, 1982, in United States v. Western Electric, Civil Action No. 82-0192 (United States District Court, District of Columbia). "(6) 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, by means oection (c), no Bell operating company, or any affiliate of that company, shall provide alarm monitoring services for the protection of life, safety, or property. A Bell operating company may transport alarm monitoring service signals but on a common carrier basis only. "(b) AUTHORITY TO PETITION.--Beginning 5\1/2\ years from the date of enactment of this section, a Bell operating company or any affiliate of that company may petition the Commission to seek permission to provide alarm monitoring services for the protection of life, safety, or property. "(c) AUTHORITY TO PERMIT BELL OPERATING COMPANIES TO PROVIDE SERVICES.--Beginning 6 years from the date of enactment of this section, the Commission shall have the authority to permit a Bell operating company to provide alarm monitoring se of enactment of this section, from recording in any fashion the occurrence or the contents of calls received by providers of alarm monitoring services for the purposes of marketing such services on behalf of the Bell operating company, any of its affiliates, or any other entity; and "(3) to establish procedures for the receipt and review of complaints concerning violations by such companies of such regulations, or of any other provision of this Act or the regulations thereunder, that result in material financial harm to a provider of alarm monitoring services. "(e) EXPEDITED CONSIDERATION OF COMPLAINTS.--The procedures established under subsection (d)(3) shall ensure that the Commission will make a final determination with respect to any complaint described in such subsection within 120 days after receipt of the complaint. If the complaint contains an appropriate showing that the alleged violation occurred, as determined by the Commission in accordance with such regulations, the Commission shall, within 60 days after receipt of the complaint, issue a cease and desist order to prevent the Bell operating company and its affiliates from continuing to engage in such violation pending such final determination. "(f) REMEDIES.--The Commission may use any remedy available under title V of this Act to terminate and punish violations described in subsection (d)(2). Such remedies may include, if the Commission determines that such violation was willful or repeated, ordering the Bell operating company to cease offering alarm monitoring services. "(g) DEFINITIONS.--As used in this section: "(1) the term `alarm monitoring services' means services that detect threats to life, safety, or property, by burglary, fire, vandalism, bodily injury, or other emergency, through the use of devices that transmit signals to a central point in a customer's residence, place of business, or other fixed premises which-- "(A) retransmits such signals to a remote monitoring center by means of telephone exchange service facilities, and "(B) serves to alert persons at the monitoring center of the need to inform police, fire, rescue, or other security or public safety per may also be prepared; "(4) file with the Commission annual reports in a form substantially equivalent to the Form 10-K referenced at 17 CFR 249.310 as that section and form are in effect on the date of enactment; "(5) after 1 year from the effective date of this section, not hire as corporate officers sales and marketing management personnel whose responsibilities at the separated affiliate or electronic publishing joint venture will include the geographic area where the Bell operating company provides basic telephone service, or network operations personnel whose responsibilities at the separated affiliate or electronic publishing joint venture would require dealing directly with the Bell operating company, any person who was employed by the Bell operating company during the year preceding their date of hire, provided that this requirement shall not apply to persons subject to a collective bargaining agreement that gives such persons rights to be employed by a separated affiliate or electronic publishing joint venture of the Bell operating company; "(6) not provide any wireline telephone exchange service in any telephone exchange area where a Bell operating company with which it is under common ownership or control provides basic telephone exchange service except on a resale basis; "(7) not use the name, trademarks, or service marks of an existing Bell operating company except for names or service marks that are or were used in common with the entity that owns or controls the Bell operating company; "(8) have performed annually by March 31, or any other date prescribed by the Commission, a compliance review which-- "(A) must be conducted by an independent entiactions and not based upon the affiliation; "(3) carry out transactions with a separated affiliate, which involve the transfer of personnel, assets, or anything of value, pursuant to written contracts or tariffs that are filed with the Commission and made publicly available; "(4) carry out transactions with a separated affiliate in a manner that is auditable in accordance with generally accepted accounting principles; "(5) value any assets that are transferred to a separated affiliate at the greater of net book cost or fair market value; "(6) value any assets that are transferred to it by its separated affiliate at the lesser of net book cost or fair market value; "(7) except for-- "(A) instances where Commission or State regulations permit in-arrears payment for tariffed telecommunications services; or "(B) the investment by an affiliate of dividends or profits derived from a Bell operating company, not provide debt or equity financing directly or indirectly to a separated affiliate; "(8) comply fully with all applicable Commission and State cost allocation and other accounting rules; "(9) have performed annually by March 31, or any other date prescribed by the Commission, a compliance review which-- "(A) must be conducted by an independent entity which is subject to professional, legal, and ethical obligations for the purpose of determining compliance during the preceding calendar year with any provision of this section that imposes a requirement on such Bell operating company; and "(B) must be maintained by the Bell operating company for a period of 5 years subject to review by any lawful authority; "(10) within 90 days of receiving a review described in paragrap services; "(14) if any basic telephone service used by electronic publishers ceases to require a tariff, provide electronic publishers with such service on the same terms and conditions as a separated affiliate receives such service; "(15) provide reasonable advance notification at the same time and on the same terms to all affected electronic publishers of information relating to changes in basic telephone service network design and technical standards which would affect the provision of electronic publishing; "(16) not directly or indirectly provide anything of monetary value to a separated affiliate unless in exchange for consideration at least equal to the greater of its net book cost or fair market value, except the investment by an affiliate of dividends or profits derived from a Bell operating company; "(17) not discriminate in the presentation or provision of any gateway for electronic publishing services or any electronic directory of information services, which is provided over such Bell operating company's basic telephone service; "(18) have no directors, officers, or employees in common with a separated affiliate; "(19) not own any property in common with a separated affiliate; "(20) not perform hiring or training of personnel performed on behalf of a separated affiliate; "(21) not perform the purchasing, installation, or maintenance of equipment on its behalf of a separated affiliate, except for telephone service that it provides under tariff or contract subject to the provisions of this section; and "(22) not perform research and development on behalf of a separated affiliate. "(d) CUSTOMER PROPRIETARY NETWORK INFORMATION.--A Bell operating company or any affiliate shall not provide to any electronic publisher, inclELEMARKETING.--A Bell operating company may provide inbound telemarketing or referral services related to the provision of electronic publishing for a separated affiliate, electronic publishing joint venture, affiliate, or unaffiliated electronic publisher, provided that if such services are provided to a separated affiliate, electronic publishing joint venture, or affiliate, such services shall be made available to all electronic publishers on request, on nondiscriminatory terms, at compensatory prices, and subject to regulations of the Commission to ensure that the Bell operating company's method of providing telemarketing or referral and its price structure do not competitively disadvantage any electronic publishers regardless of size, including those which do not use the Bell operating company's telemarketing services. "(2) TEAMING ARRANGEMENTS.--A Bell operating company may engage in nondiscriminatory teaming or business arrangements to engage in electronic publishing with any separated affiliate or with any other electronic publisher provided that the Bell operating company only provides facilities, services, and basic telephone service information as authorized by this section and provided that the Bell operating company own such teaming or business arrangement. "(3) ELECTRONIC PUBLISHING JOINT VENTURES.--A Bell operating company or affiliate may participate on a nonexclusive basis in electronic publishing joint ventures with entities that are not any Bell operating company, affiliate, or separated affiliate to provide electronic publishing services, provided that the Bell operating company or affiliate has not more than a 50 percent direct or indirect equity interest (or the equivalent thereof) or the right to more than 50 percent of the gross revenues under a revenue sharing or royalty agreement in any eleirectly related to the provision of electronic publishing from a Bell operating company to an affiliate shall be valued at the greater of net book cost or fair market value. Any transfer of assets related to the provision of electronic publishing from an affiliate to the Bell operating company shall be valued at the lesser of net book cost or fair market value. "(3) A Bell operating company shall not provide an affiliate any facilities, services, or basic telephone service information related to the provision of electronic publishing, which such affiliate then directly or indirectly provides to a separated affiliate, and which is not made available to unaffiliated companies on the same terms and conditions. "(j) TRANSACTIONS RELATED TO THE PROVISION OF ELECTRONIC PUBLISHING BETWEEN AN AFFILIATE AND A SEPARATED AFFILIATE.-- "(1) Any facilities, services, or basic telephone service information provided or any assets, personnel, or anything of commercial or competitive value transferred, from a Bell operating company to any affiliate as described in subsection (i) and then provided or transferred to a separated affiliate shall be-- "(A) recorded in the books and records of each entity; "(2) no officer or employee of a Bell operating company shall serve as a director of any entity whose principal business is publishing of which a part is electronic publishing; "(3) for the purposes of paragraphs (1) and (2), a Bell operating company or an affiliate that owns an electronic publishing joint venture shall not be deemed to be engaged in the electronic publishing business solely because of such ownership; "(4) a Bell operating company shall not carry out-- "(A) any marketing or sales for any entity that engages in electronic publishing; or "(B) any hiring of personnel, purchasing, or production, for any entity that engages in electronic publishing; and "(5) the Bell operating company shall not provide any facilities, services, or basic telephone service information to any entity that engages in electronic publishing, for use with or in connection with the provision of electronic publishing that is disseminated by means of such Bell operating company's or any of its affiliates' basic telephone service, unless, equivalent facilities, services, or information are made available on equivalent terms and conditions to all. "(l) TRANSITION.--Any electronic publishing service being offered to the public by a Bell operating company or affiliate on the date of enactment of this section shall have one year from such date of enactment to comply with the requirements of this section. "(m) SUNSET.--The provisions of this section shall cease to apply to a Bell operating company or its affiliate or separated affiliate in any telephone exchange area on June 30, 2000. "(n) PRIVATE RIGHT OF ACTION.-- "(1) Any person claiming that any act or practice of any Bell operating company, affiliate, or separated affiliate constitutes a violation of this section may file a complaint with the Commission or bring suit as provided in section 207 of this Act, and such Bell operating company, affiliate, or separated affiliate shall be liable as provided in section 206 of this Act: //Provided, however, \\ That damages may not be awarded for a violation that is discovered by a compliance review as required by subsection (b)(8) or (c)(9) of this s affiliate that is required by the Commission to be a corporate entity separate from the Bell operating company. "(3) The term `basic telephone service information' means network and customer information of a Bell operating company and other information acquired by a Bell operating company as a result of its engaging in the provision of basic telephone service. "(4) The term `control' has the meaning that it has in 17 CFR 240.12b-2, the regulations promulgated by the Securities and Exchange Commission pursuant to the Securities Exchange Act of 1934 (15 U.S.C. 78a et seq.) or any successor provision to such section. "(5) The term `customer proprietary network information' means-- "(A) information which-- "(i) relates to the quantity, technical configuration, type, destination, and amount of use of telephone exchange service or interexchange telephone service subscribed to by any customer of a Bell operating company, and "(ii) is available to the Bell operating company by virtue of the telephone company-customer relationship; and "(B) information contained in the bills for telephone excharrier. "(iii) The transmission of information as part of a gateway to an information service that does not involve the generation or alteration of the content of information, including data transmission, address translation, protocol conversion, billing management, introductory information content, and navigational systems that enable users to access electronic publishing services, which do not affect the presentation of such electronic publishing services to users. "(iv) Voice storage and retrieval services, including voice messaging and electronic mail services. "(v) Level 2 gateway services as those services are defined by the Commission's Second Report and Order, Recommendation to Congress and Second Further Notice of Proposed Rulemaking in CC Docket No. 87-266 dated August tent of information. "(C) The term `electronic publishing' also shall not include-- "(i) full motion video entertainment on demand; and "(ii) video programming as defined in section 602 of this Act. "(7) The term `electronic publishing joint venture' means a joint venture owned by a Bell operating company or affiliate that engages in the provision of electronic publishing which is disseminated by means of such Bell operating company's or any of its affiliates' basic telephone service. "(8) The term `entity' means any organization, and includes corporations, partnerships, sole proprietorships, associations, and joint ventures. "(9) The term `inbound telemarketing' means the marketing of property, goods, or services by telephone to a customer or potential customer who initiated the call. "(10) The term `own' with respect to an entity means to have a direct or indirect equity interest (or the equivalent thereof) of more than 10 percent of an entity, or the right to more than 10 percent of the gross revenues of an entity under a revenue sharing or royalty agreement. "(11) The term `separated affiliate' means a corporation under common ownership or control with a Bell op to regulations on cross-subsidization that are prescribed under other provisions of this Act, the Commission shall prescribe cost allocation regulations to prevent any Bell operating company or affiliate that offers services that have market power from using revenues from such services to subsidize competitive information services. "(c) RESTRICTION ON STATE REGULATION.--Notwithstanding section 2(b) of this Act, a State may not regulate the rates, terms, or conditions for the offering of information services, except as provided in title VI. "(d) DEFINITIONS.--As used in this section: "(1) The term `Bell operating company' has the meaning given that term under section 231. "(2) The term `gateway service' means an information service that, at the request of the provider of an electronic publishing service or other information service, provides a subscriber with access to such electronic publishing service or other information service, utilizing the following functions: data transmission, address translation, billing information, protocol conversion, and introductory information content. "(3) The term `affiliate' has the meaning given that term under section 236 of this Act.". !!SUBTITLE D--INTERLATA TELECOMMUNICATIONS SERVICES !! !!SEC. 481. INTERLATA TELECOMMUNICATIONS SERVICES. !! Title II of the Communications Act of 1934 (47 U.S.C. 201 et seq.), as amended by this Act, is further amended by adding at the end the following new section: !!"SEC. 235. INTERLATA TELECOMMUNICATIONS SERVICES.!! "(a) AUTHORITY.--Notwithstanding any restriction or obligation impo a hearing in which the public has an opportunity to participate, grant a petition for authority to offer an interLATA telecommunications service to be originated, terminated, or otherwise provided in any area in which the petitioner or its affiliate provides telephone exchange or exchange access services, only if-- "(A) the showing required by paragraph (3) is made; "(B) all the regulations required by section 230 have been prescribed by the Commission, and each relevant State certifies and the Commission finds that the petitioning Bell operating company or its affiliate is providing telephone exchange and exchange access service in the relevant telephone exchange or exchange access market in full compliance with such regulations; and "(C) the Commission finds, after receiving factual evidence submitted by the State, that there is actual and demonstrable competition to the Bell operating company's telephone exchange and exchange access services in each relevant area, based on the requirement that actual and demonstrable competition exists when telephone exchange and exchange access services-- "(i) are available from at least one provider that is unaffiliated with the petitioning Bell operating company or its affiliates; "(ii) offered predominantly over facilities not owned or controlled by the Bell operating company or its affiliates and are comparable in geographic range, function, quality, and price to the service offered by the petias specified in section 236. Such separate subsidiary shall-- "(i) fulfill any requests from an unaffiliated entity for exchange access service within a period no longer than that in which it provides such exchange access service to itself or to its affiliates; "(ii) fulfill any such requests with exchange access service of a quality that meets or exceeds the quality of exchange access services provided by the Bell operating company or its affiliates to itself or its affiliate; and "(iii) provide exchange access at rates to all interLATA carrier at rates that are not unreasonably discriminatory. "(B) COMMISSION ACTION ON COMPLAINTS.--With respect to any complaint brought under section 208 alleging a violation of this section or the regulations implementing it, the Commission shall issue a final order within 1 year after such complaint is filed. "(d) ADDITIONAL INTERLATA AUTHORITY ASSOCIATED WITH CABLE TELEVISION SERVICE.-- "(1) AUTHORITY.--Notwithstanding subsection (c), a Bell operating company or its affiliate may-- "(A) own ahe movement of the mobile telephone unit or the characteristics of radio propagation. "(3) AUTOMATIC CALL DELVIERY.--A Bell operating company or its cellular affiliate may provide the routing of cellular transmissions between its cellular system and a cellular system located in another LATA, for purposes of completing a call to one of its out-of-region cellular customers. "(4) USE OF LEASED FACILITIES.--Facilities necessary for intersystem handoff across LATA boundaries or interLATA routing of cellular transmissions, as permitted under paragraphs (2) and (3), shall be leased by a Bell operating company or its cellular affiliate from a carrier (other than a Bell operating company or its affiliate) authorized to provide interLATA telecommunications. "(5) EQUAL ACCE "(i) purchase or otherwise acquire, directly or indirectly, more than a 5 percent financial interest, any management interest, or any other interest, in any cable system that is providing service within the carrier's telephone exchange service area and is owned by an unaffiliated person; or "(ii) enter into any joint venture or partnership with a cable operator to provide video programming to subscribers within such telephone exchange service area. "(B) A local exchange carrier shall not provide video programming directly to subscribers in its telephone exchange service area unless-- "(i) such video programming is provided through a separate subsidiary as set forth in section 236; and "(ii) the Commission finds that the local exchange carrier offers service in full compliance with the regulations prescribed under section 230 in the geographic area in which it seeks to provide video programming. "(C) A local exchange carrier that provides video programming directly to subscribers is a cable operator as defined in section 602. "(D) a local exchange carrier shall not engage in practices prohibited by the Commission or by a State (including but not limon by promoting or increasing telecommunications competition over facilities separate from the local exchange carrier's facilities in the local exchange carrier's service area; and "(II) the local exchange carrier's interest in such competing telecommunications services provider does not retard the competing provider's incentives to compete. "(C) A cable operator shall not engage in practices prohibited by the Commission or by a State (including but not limited to the improper assignment of costs) that subsidize directly or indirectly its telecommunications services. "(D) Upon a showing that a cable operator has no market power in its cable service area, the Commission shall exempt the cable operator from the provisions of subparagraphs (A), (B), and (C).". !!SEC. 502. CONSUMER AND COMPETITIVE SAFEGUARDS.!! Title II of the Communications Act of 1934 (47 U.S.C. 201 et seq.), as amended by this Act, is further amended by adding at the end the following new section: !!"SEC 236. CONSUMER AND COMPETITIVE SAFEGUARDS.!! "(a) SEPARATE SUBSIDIARY.-- "(1) IN GENERAL.--Any subsidiary required by section 235 or 613(b)(1) shall, at a minimum, be separated from a local exchange carrier, in accordance with the requirements of this subsection and the regulations prescribed by the Commission to carry out this subsection. "(2) TRANSACTION REQUIREMENTS.--Any transaction between such a subsidiary and any local exchange carrier and any other affiliate of the carrier shall not be based upon any preference or discrimination in favor of the subsidiary arising outne exchange services. The cost allocation system shall employ a formula that ensures that-- "(A) the rates for telephone exchange services are no greater than they would have been in the absence of such investment in competitive services (taking into account any decline in the real costs of providing such telephone exchange services); and "(B) competitive services bear a reasonable share of the joint and common costs of facilities used to provide telephone exchange and competitive services. "(8) ASSETS.--The Commission shall, by regulation, ensure that the economic risks associated with the provision of competitive services by a local exchange carrier or an affiliate thereof (including any increases in the carrier's cost of capital that occur as a result of the provision of such services) are not borne by customers of telephone exchange services in the event of a business loss or failure. Investments or other expenditures assigned to competitive services shall not be reassigned to telephone exchange service or telephone exchange access service. "(9) DEBT.--Any local exchange carrier, which is required to be or is structurally separate from an affiliate engaged in the provision of telephone exchange services, shall not obtain credit under any arrangement that would-- "(A) permit a creditor, upon default, to have recourse to the assets of the local exchange carrier; or "(B) induce a creditor to rely on the tangible or intangible assets of the loange service or telephone toll service; "(B) use customer proprietary network information in the identification or solicitation of potential customers for any service other than the service from which such information is derived; "(C) use such information in their provision of customer premises equipment; or "(D) disclose such information to any affiliate of such common carrier or any other person that is not an employee of such carrier; "(2) shall disclose such information, upon affirmative written request by the customer, to any person designated by the customer; "(3) shall, whenever such common carrier provides any aggregate information based on customer proprietary network information or any data base or other compilation of customer proprietary information to any personnel of such common carrier, or any affiliate of such common carrier, that are engaged in providing any service that is not necessary to the provision of telephone exchange service, or that are engaged in the provision of customer premises equipment, or to any other person that is not an employee or affiliate of such carrier, notify the Commission of the availability of such aggregate or compiled information and shall provide such aggregate or compiled information on reasoniber list information to any affiliated or unaffiliated service provider or person shall provide subscriber list information on a timely and unbundled basis, under nondiscriminatory and reasonable rates, terms, and conditions, to any person upon reasonable request. "(e) AUTOMATIC NUMBER IDENTIFICATION SERVICES.-- "(1) CONTRACT REQUIREMENTS.--Any common carrier or affiliate of a common carrier providing automatic number identification services to any person shall provide such services under a contract or tariff containing telephone subscriber information requirements that comply with this subsection. Such requirements shall-- "(A) permit such person to use the telephone number and billing information provided pursuant to the automatic number identification service for billing and collection, routing, screening, and completion of the originating telephone subscriber's call or transaction, or for services directly related to the originating telephone subscriber's call or transaction; "(B) prohibit such person from reusing or selling the telephone number or billing information provided pursuant to the automatic number identification service without first orally (i) notifying the originating telephone subscriber and (ii) extending to such subscriber the option to limit or prohibit such reuse or sale; and "(C) prohibit such person from disclosing, except as permitted by subparagraphs (A) and (B), any information derived from the automatic number identification service for any purpose other than-- "(i) performing the services or transactions that are the subject of the originating telephone subscriber's call, "(ii) ensuring network performance, security, and the effectiveness of cc number identification services to any person who has violated the telephone subscriber information requirements imposed under paragraph (1). For purposes of section 503(b)(1)(B), violations of such requirements shall be considered to be a violation of a provision of this Act. "(4) EFFECTIVE DATE.--(A) Except as provided in subparagraph (B), the requirements of this subsection shall apply to any automatic number identification service provided on or after one year after the date of enactment of this subsection. "(B) In the case of any automatic number identification service provided under a contract entered into, or tariff taking effect, more than 90 days after the date of enactment of this subsection, the requirements of this subsection shall apply to any automatic number identification service provided pursuant to such contract or tariff. "(f) DEFINITIONS.--As used in this section: "(1) The term `customer proprietary network information' means-- "(A) information which (i) relates to the quantity, technical configuration, type, destination, and amount of use of telephone exchange service or interexchange telephone service subscribed to by any customer of a telephone operating company, and (ii) is available to the telephone operating company by virtue of the telephone company- customer relationship; "(B) information contained in the bills for telephone exchange service or interexchange telephone service received by a customer of a telephone operating company; and "(C) such other information concerning the customer as is (i) available to the telephone operating company by virtue of the customer's use of the company's services, and (ii) specified as within the definition of such term by such rules as the Commission shall prescribe consistent with the public interest, except that such term does not include subscriber list information. "(2) The term `subscriber information' means any information-- "(A) identifying the names of subscribers of a local exchange carrier and such subscribers' telephone numbers, addresses, or advertising classifications, or any combination of such names, numbers, addresses, or classifications; and "(B) that the carrier or an affiliate has published or accepted for future publication. "(3) The term `aggregate information' means collective data that relates to a group or category of services or customers, from which individual customer identities or characteristics have been removed. "(4) the term `automatic number identification' means an access signaling protocol in common use by common carriers that uses an identifying signal associated with the use of a subscriber's telephone to provide billing information or other information to the lf enactment of this Act, the Commission shall, after a notice and comment proceeding, modify or remove such national and local ownership rules on radio and television broadcast stations as are necessary to ensure that broadcasters are able to compete fairly with other media providers while ensuring that the public receives information from a diversity of media sources !!SEC. 702. REVIEW OF STATUTORY OWNERSHIP RESTRICTION.!! Within one year after the date of enactment of this Act, the Commission shall review the ownership restriction in section 613(a)(1) and report to Congress whether or not such restriction continues to serve the public interest. !!703. REVIEW OF VIDEO NON-DUPLICATION AND SYNDICATED EXCLUSIVITY RULES.!! Within one year after the date of enactment of this Act, the Commission shall complete a notice and comment proceeding to consider the applicability of the Commission's rules regarding network non-duplication protection and syndicated exclusivity protection to other multichannel video programming providers. !!SEC. 704. BROADCASTER PROVISION OF ADDITIONAL SERVICES.!! The Commission shall, after a notice and comment proceeding, prescribe regulations to permit broadcasters to make use of the broadcast spectrum that they are licensed to use, for services that are related to the programming services which they are authorized to provide. To the extent that the broadcast licensee provides commercial services using broadcast spectrum, the Commission shall be authorized to collect from each licensee an amount equivalent to the amount that would have been paid if the license to provide such service has been subjected to competitive bidding under section 309(j) of the Communications Act of 1934 (47 U.S.C. 309(j)). Such amounts shall be collected and distributed pursuant to such section 309(j). Nothing shall be construed as relieving a broadcasting station from its obligation to serve the public interest, convenience, and necessity.