FILE s652.enr
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.[Italic->] Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, [<-Italic]
SECTION 1. SHORT TITLE; REFERENCES.
(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.).
SEC. 2. TABLE OF CONTENTS.
The table of contents for this Act is as follows:
Sec. 1. Short title; references.
Sec. 2. Table of contents.
Sec. 3. Definitions.
TITLE I--TELECOMMUNICATION SERVICES
SUBTITLE A--TELECOMMUNICATIONS SERVICES
Sec. 101. Establishment of part II of title II.
`PART II--DEVELOPMENT OF COMPETITIVE MARKETS
Sec. 102. Eligible telecommunications carriers.
Sec. 103. Exempt telecommunications companies.
Sec. 104. Nondiscrimination principle.
SUBTITLE B--SPECIAL PROVISIONS CONCERNING BELL OPERATING COMPANIES
Sec. 151. Bell operating company provisions.
`PART III--SPECIAL PROVISIONS CONCERNING BELL OPERATING COMPANIES
TITLE II--BROADCAST SERVICES
Sec. 201. Broadcast spectrum flexibility.
Sec. 202. Broadcast ownership.
Sec. 203. Term of licenses.
Sec. 204. Broadcast license renewal procedures.
Sec. 205. Direct broadcast satellite service.
Sec. 206. Automated ship distress and safety systems.
Sec. 207. Restrictions on over-the-air reception devices.
TITLE III--CABLE SERVICES
Sec. 301. Cable Act reform.
Sec. 302. Cable service provided by telephone companies.
`PART V--VIDEO PROGRAMMING SERVICES PROVIDED BY TELEPHONE COMPANIES
Sec. 303. Preemption of franchising authority regulation of telecommunications services.
Sec. 304. Competitive availability of navigation devices.
Sec. 305. Video programming accessibility.
TITLE IV--REGULATORY REFORM
Sec. 401. Regulatory forbearance.
Sec. 402. Biennial review of regulations; regulatory relief.
Sec. 403. Elimination of unnecessary Commission regulations and functions.
TITLE V--OBSCENITY AND VIOLENCE
SUBTITLE A--OBSCENE, HARASSING, AND WRONGFUL UTILIZATION OF TELECOMMUNICATIONS FACILITIES
Sec. 501. Short title.
Sec. 502. Obscene or harassing use of telecommunications facilities under the Communications Act of 1934.
Sec. 503. Obscene programming on cable television.
Sec. 504. Scrambling of cable channels for nonsubscribers.
Sec. 505. Scrambling of sexually explicit adult video service programming.
Sec. 506. Cable operator refusal to carry certain programs.
Sec. 507. Clarification of current laws regarding communication of obscene materials through the use of computers.
Sec. 508. Coercion and enticement of minors.
Sec. 509. Online family empowerment.
SUBTITLE B--VIOLENCE
Sec. 551. Parental choice in television programming.
Sec. 552. Technology fund.
SUBTITLE C--JUDICIAL REVIEW
Sec. 561. Expedited review.
TITLE VI--EFFECT ON OTHER LAWS
Sec. 601. Applicability of consent decrees and other law.
Sec. 602. Preemption of local taxation with respect to direct-to-home services.
TITLE VII--MISCELLANEOUS PROVISIONS
Sec. 701. Prevention of unfair billing practices for information or services provided over toll-free telephone calls.
Sec. 702. Privacy of customer information.
Sec. 703. Pole attachments.
Sec. 704. Facilities siting; radio frequency emission standards.
Sec. 705. Mobile services direct access to long distance carriers.
Sec. 706. Advanced telecommunications incentives.
Sec. 707. Telecommunications Development Fund.
Sec. 708. National Education Technology Funding Corporation.
Sec. 709. Report on the use of advanced telecommunications services for medical purposes.
Sec. 710. Authorization of appropriations.
SEC. 3. DEFINITIONS.
(a) ADDITIONAL DEFINITIONS- Section 3 (47 U.S.C. 153) is amended--
(1) in subsection (r)--
(A) by inserting `(A)' after `means'; and(B) by inserting before the period at the end the following: `, or (B) comparable service provided through a system of switches, transmission equipment, or other facilities (or combination thereof) by which a subscriber can originate and terminate a telecommunications service'; and
(2) by adding at the end thereof the following:
`(33) AFFILIATE- The term `affiliate' means a person that (directly or indirectly) owns or controls, is owned or controlled by, or is under common ownership or control with, another person. For purposes of this paragraph, the term `own' means to own an equity interest (or the equivalent thereof) of more than 10 percent.
`(34) AT&T CONSENT DECREE- The term `AT&T Consent Decree' means the order entered August 24, 1982, in the antitrust action styled United States v. Western Electric, Civil Action No. 82-0192, in the United States District Court for the District of Columbia, and includes any judgment or order with respect to such action entered on or after August 24, 1982.
`(35) BELL OPERATING COMPANY- The term `Bell operating company'--
`(A) means any of the following companies: Bell Telephone Company of Nevada, Illinois Bell Telephone Company, Indiana Bell Telephone Company, Incorporated, 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'.
TITLE I--TELECOMMUNICATION SERVICES
SUBTITLE A--TELECOMMUNICATIONS SERVICES
SEC. 101. ESTABLISHMENT OF PART II OF TITLE II.
(a) AMENDMENT- Title II is amended by inserting after section 229
(47 U.S.C. 229) the following new part:
`PART II--DEVELOPMENT OF COMPETITIVE MARKETS
`SEC. 251. INTERCONNECTION.
`(a) GENERAL DUTY OF TELECOMMUNICATIONS CARRIERS- Each
telecommunications carrier has the duty--
`(1) to interconnect directly or indirectly with the
facilities and equipment of other telecommunications carriers;
and
`(2) not to install network features, functions, or
capabilities that do not comply with the guidelines and
standards established pursuant to section 255 or 256.
`(b) OBLIGATIONS OF ALL LOCAL EXCHANGE CARRIERS- Each local
exchange carrier has the following duties:
`(1) RESALE- The duty not to prohibit, and not to impose
unreasonable or discriminatory conditions or limitations on,
the resale of its telecommunications services.
`(2) NUMBER PORTABILITY- The duty to provide, to the extent
technically feasible, number portability in accordance with
requirements prescribed by the Commission.
`(3) DIALING PARITY- The duty to provide dialing parity to
competing providers of telephone exchange service and telephone
toll service, and the duty to permit all such providers to have
nondiscriminatory access to telephone numbers, operator
services, directory assistance, and directory listing, with no
unreasonable dialing delays.
`(4) ACCESS TO RIGHTS-OF-WAY- The duty to afford access to
the poles, ducts, conduits, and rights-of-way of such carrier
to competing providers of telecommunications services on rates,
terms, and conditions that are consistent with section 224.
`(5) RECIPROCAL COMPENSATION- The duty to establish
reciprocal compensation arrangements for the transport and
termination of telecommunications.
`(c) ADDITIONAL OBLIGATIONS OF INCUMBENT LOCAL EXCHANGE CARRIERS-
In addition to the duties contained in subsection (b), each
incumbent local exchange carrier has the following duties:
`(1) DUTY TO NEGOTIATE- The duty to negotiate in good faith
in accordance with section 252 the particular terms and
conditions of agreements to fulfill the duties described in
paragraphs (1) through (5) of subsection (b) and this
subsection. The requesting telecommunications carrier also has
the duty to negotiate in good faith the terms and conditions of
such agreements.
`(2) INTERCONNECTION- The duty to provide, for the facilities
and equipment of any requesting telecommunications carrier,
interconnection with the local exchange carrier's network--
`(A) for the transmission and routing of telephone
exchange service and exchange access;
`(B) at any technically feasible point within the
carrier's network;
`(C) that is at least equal in quality to that provided
by the local exchange carrier to itself or to any
subsidiary, affiliate, or any other party to which the
carrier provides interconnection; and
`(D) on rates, terms, and conditions that are just,
reasonable, and nondiscriminatory, in accordance with the
terms and conditions of the agreement and the requirements
of this section and section 252.
`(3) UNBUNDLED ACCESS- The duty to provide, to any requesting
telecommunications carrier for the provision of a
telecommunications service, nondiscriminatory access to network
elements on an unbundled basis at any technically feasible
point on rates, terms, and conditions that are just,
reasonable, and nondiscriminatory in accordance with the terms
and conditions of the agreement and the requirements of this
section and section 252. An incumbent local exchange carrier
shall provide such unbundled network elements in a manner that
allows requesting carriers to combine such elements in order to
provide such telecommunications service.
`(4) RESALE- The duty--
`(A) to offer for resale at wholesale rates any
telecommunications service that the carrier provides at
retail to subscribers who are not telecommunications
carriers; and
`(B) not to prohibit, and not to impose unreasonable or
discriminatory conditions or limitations on, the resale of
such telecommunications service, except that a State
commission may, consistent with regulations prescribed by
the Commission under this section, prohibit a reseller that
obtains at wholesale rates a telecommunications service
that is available at retail only to a category of
subscribers from offering such service to a different
category of subscribers.
`(5) NOTICE OF CHANGES- The duty to provide reasonable public
notice of changes in the information necessary for the
transmission and routing of services using that local exchange
carrier's facilities or networks, as well as of any other
changes that would affect the interoperability of those
facilities and networks.
`(6) COLLOCATION- The duty to provide, on rates, terms, and
conditions that are just, reasonable, and nondiscriminatory,
for physical collocation of equipment necessary for
interconnection or access to unbundled network elements at the
premises of the local exchange carrier, except that the carrier
may provide for virtual collocation if the local exchange
carrier demonstrates to the State commission that physical
collocation is not practical for technical reasons or because
of space limitations.
`(d) IMPLEMENTATION-
`(1) IN GENERAL- Within 6 months after the date of enactment
of the Telecommunications Act of 1996, the Commission shall
complete all actions necessary to establish regulations to
implement the requirements of this section.
`(2) ACCESS STANDARDS- In determining what network elements
should be made available for purposes of subsection (c)(3), the
Commission shall consider, at a minimum, whether--
`(A) access to such network elements as are proprietary
in nature is necessary; and
`(B) the failure to provide access to such network
elements would impair the ability of the telecommunications
carrier seeking access to provide the services that it
seeks to offer.
`(3) PRESERVATION OF STATE ACCESS REGULATIONS- In prescribing
and enforcing regulations to implement the requirements of this
section, the Commission shall not preclude the enforcement of
any regulation, order, or policy of a State commission that--
`(A) establishes access and interconnection obligations
of local exchange carriers;
`(B) is consistent with the requirements of this section;
and
`(C) does not substantially prevent implementation of the
requirements of this section and the purposes of this part.
`(e) NUMBERING ADMINISTRATION-
`(1) COMMISSION AUTHORITY AND JURISDICTION- The Commission
shall create or designate one or more impartial entities to
administer telecommunications numbering and to make such
numbers available on an equitable basis. The Commission shall
have exclusive jurisdiction over those portions of the North
American Numbering Plan that pertain to the United States.
Nothing in this paragraph shall preclude the Commission from
delegating to State commissions or other entities all or any
portion of such jurisdiction.
`(2) COSTS- The cost of establishing telecommunications
numbering administration arrangements and number portability
shall be borne by all telecommunications carriers on a
competitively neutral basis as determined by the Commission.
`(f) EXEMPTIONS, SUSPENSIONS, AND MODIFICATIONS-
`(1) EXEMPTION FOR CERTAIN RURAL TELEPHONE COMPANIES-
`(A) EXEMPTION- Subsection (c) of this section shall not
apply to a rural telephone company until (i) such company
has received a bona fide request for interconnection,
services, or network elements, and (ii) the State
commission determines (under subparagraph (B)) that such
request is not unduly economically burdensome, is
technically feasible, and is consistent with section 254
(other than subsections (b)(7) and (c)(1)(D) thereof).
`(B) STATE TERMINATION OF EXEMPTION AND IMPLEMENTATION
SCHEDULE- The party making a bona fide request of a rural
telephone company for interconnection, services, or network
elements shall submit a notice of its request to the State
commission. The State commission shall conduct an inquiry
for the purpose of determining whether to terminate the
exemption under subparagraph (A). Within 120 days after the
State commission receives notice of the request, the State
commission shall terminate the exemption if the request is
not unduly economically burdensome, is technically
feasible, and is consistent with section 254 (other than
subsections (b)(7) and (c)(1)(D) thereof). Upon termination
of the exemption, a State commission shall establish an
implementation schedule for compliance with the request
that is consistent in time and manner with Commission
regulations.
`(C) LIMITATION ON EXEMPTION- The exemption provided by
this paragraph shall not apply with respect to a request
under subsection (c) from a cable operator providing video
programming, and seeking to provide any telecommunications
service, in the area in which the rural telephone company
provides video programming. The limitation contained in
this subparagraph shall not apply to a rural telephone
company that is providing video programming on the date of
enactment of the Telecommunications Act of 1996.
`(2) SUSPENSIONS AND MODIFICATIONS FOR RURAL CARRIERS- A
local exchange carrier with fewer than 2 percent of the
Nation's subscriber lines installed in the aggregate nationwide
may petition a State commission for a suspension or
modification of the application of a requirement or
requirements of subsection (b) or (c) to telephone exchange
service facilities specified in such petition. The State
commission shall grant such petition to the extent that, and
for such duration as, the State commission determines that such
suspension or modification--
`(A) is necessary--
`(i) to avoid a significant adverse economic impact
on users of telecommunications services generally;
`(ii) to avoid imposing a requirement that is unduly
economically burdensome; or
`(iii) to avoid imposing a requirement that is
technically infeasible; and
`(B) is consistent with the public interest,
convenience, and necessity.
The State commission shall act upon any petition filed under
this paragraph within 180 days after receiving such petition.
Pending such action, the State commission may suspend
enforcement of the requirement or requirements to which the
petition applies with respect to the petitioning carrier or
carriers.
`(g) CONTINUED ENFORCEMENT OF EXCHANGE ACCESS AND INTERCONNECTION
REQUIREMENTS- On and after the date of enactment of the
Telecommunications Act of 1996, each local exchange carrier, to the
extent that it provides wireline services, shall provide exchange
access, information access, and exchange services for such access
to interexchange carriers and information service providers in
accordance with the same equal access and nondiscriminatory
interconnection restrictions and obligations (including receipt of
compensation) that apply to such carrier on the date immediately
preceding the date of enactment of the Telecommunications Act of
1996 under any court order, consent decree, or regulation, order,
or policy of the Commission, until such restrictions and
obligations are explicitly superseded by regulations prescribed by
the Commission after such date of enactment. During the period
beginning on such date of enactment and until such restrictions and
obligations are so superseded, such restrictions and obligations
shall be enforceable in the same manner as regulations of the
Commission.
`(h) DEFINITION OF INCUMBENT LOCAL EXCHANGE CARRIER-
`(1) DEFINITION- For purposes of this section, the term
`incumbent local exchange carrier' means, with respect to an
area, the local exchange carrier that--
`(A) on the date of enactment of the Telecommunications
Act of 1996, provided telephone exchange service in such
area; and
`(B)(i) on such date of enactment, was deemed to be a
member of the exchange carrier association pursuant to
section 69.601(b) of the Commission's regulations (47
C.F.R. 69.601(b)); or
`(ii) is a person or entity that, on or after such date
of enactment, became a successor or assign of a member
described in clause (i).
`(2) TREATMENT OF COMPARABLE CARRIERS AS INCUMBENTS- The
Commission may, by rule, provide for the treatment of a local
exchange carrier (or class or category thereof) as an incumbent
local exchange carrier for purposes of this section if--
`(A) such carrier occupies a position in the market for
telephone exchange service within an area that is
comparable to the position occupied by a carrier described
in paragraph (1);
`(B) such carrier has substantially replaced an incumbent
local exchange carrier described in paragraph (1); and
`(C) such treatment is consistent with the public
interest, convenience, and necessity and the purposes of
this section.
`(i) SAVINGS PROVISION- Nothing in this section shall be
construed to limit or otherwise affect the Commission's authority
under section 201.
`SEC. 252. PROCEDURES FOR NEGOTIATION, ARBITRATION, AND APPROVAL OF
AGREEMENTS.
`(a) AGREEMENTS ARRIVED AT THROUGH NEGOTIATION-
`(1) VOLUNTARY NEGOTIATIONS- Upon receiving a request for
interconnection, services, or network elements pursuant to
section 251, an incumbent local exchange carrier may negotiate
and enter into a binding agreement with the requesting
telecommunications carrier or carriers without regard to the
standards set forth in subsections (b) and (c) of section 251.
The agreement shall include a detailed schedule of itemized
charges for interconnection and each service or network element
included in the agreement. The agreement, including any
interconnection agreement negotiated before the date of
enactment of the Telecommunications Act of 1996, shall be
submitted to the State commission under subsection (e) of this
section.
`(2) MEDIATION- Any party negotiating an agreement under this
section may, at any point in the negotiation, ask a State
commission to participate in the negotiation and to mediate any
differences arising in the course of the negotiation.
`(b) AGREEMENTS ARRIVED AT THROUGH COMPULSORY ARBITRATION-
`(1) ARBITRATION- During the period from the 135th to the
160th day (inclusive) after the date on which an incumbent
local exchange carrier receives a request for negotiation under
this section, the carrier or any other party to the negotiation
may petition a State commission to arbitrate any open issues.
`(2) DUTY OF PETITIONER-
`(A) A party that petitions a State commission under
paragraph (1) shall, at the same time as it submits the
petition, provide the State commission all relevant
documentation concerning--
`(i) the unresolved issues;
`(ii) the position of each of the parties with
respect to those issues; and
`(iii) any other issue discussed and resolved by the
parties.
`(B) A party petitioning a State commission under
paragraph (1) shall provide a copy of the petition and any
documentation to the other party or parties not later than
the day on which the State commission receives the petition.
`(3) OPPORTUNITY TO RESPOND- A non-petitioning party to a
negotiation under this section may respond to the other party's
petition and provide such additional information as it wishes
within 25 days after the State commission receives the petition.
`(4) ACTION BY STATE COMMISSION-
`(A) The State commission shall limit its consideration
of any petition under paragraph (1) (and any response
thereto) to the issues set forth in the petition and in the
response, if any, filed under paragraph (3).
`(B) The State commission may require the petitioning
party and the responding party to provide such information
as may be necessary for the State commission to reach a
decision on the unresolved issues. If any party refuses or
fails unreasonably to respond on a timely basis to any
reasonable request from the State commission, then the
State commission may proceed on the basis of the best
information available to it from whatever source derived.
`(C) The State commission shall resolve each issue set
forth in the petition and the response, if any, by imposing
appropriate conditions as required to implement subsection
(c) upon the parties to the agreement, and shall conclude
the resolution of any unresolved issues not later than 9
months after the date on which the local exchange carrier
received the request under this section.
`(5) REFUSAL TO NEGOTIATE- The refusal of any other party to
the negotiation to participate further in the negotiations, to
cooperate with the State commission in carrying out its
function as an arbitrator, or to continue to negotiate in good
faith in the presence, or with the assistance, of the State
commission shall be considered a failure to negotiate in good
faith.
`(c) STANDARDS FOR ARBITRATION- In resolving by arbitration under
subsection (b) any open issues and imposing conditions upon the
parties to the agreement, a State commission shall--
`(1) ensure that such resolution and conditions meet the
requirements of section 251, including the regulations
prescribed by the Commission pursuant to section 251;
`(2) establish any rates for interconnection, services, or
network elements according to subsection (d); and
`(3) provide a schedule for implementation of the terms and
conditions by the parties to the agreement.
`(d) PRICING STANDARDS-
`(1) INTERCONNECTION AND NETWORK ELEMENT CHARGES-
Determinations by a State commission of the just and reasonable
rate for the interconnection of facilities and equipment for
purposes of subsection (c)(2) of section 251, and the just and
reasonable rate for network elements for purposes of subsection
(c)(3) of such section--
`(A) shall be--
`(i) based on the cost (determined without reference
to a rate-of-return or other rate-based proceeding) of
providing the interconnection or network element
(whichever is applicable), and
`(ii) nondiscriminatory, and
`(B) may include a reasonable profit.
`(2) CHARGES FOR TRANSPORT AND TERMINATION OF TRAFFIC-
`(A) IN GENERAL- For the purposes of compliance by an
incumbent local exchange carrier with section 251(b)(5), a
State commission shall not consider the terms and
conditions for reciprocal compensation to be just and
reasonable unless--
`(i) such terms and conditions provide for the mutual
and reciprocal recovery by each carrier of costs
associated with the transport and termination on each
carrier's network facilities of calls that originate on
the network facilities of the other carrier; and
`(ii) such terms and conditions determine such costs
on the basis of a reasonable approximation of the
additional costs of terminating such calls.
`(B) RULES OF CONSTRUCTION- This paragraph shall not be
construed--
`(i) to preclude arrangements that afford the mutual
recovery of costs through the offsetting of reciprocal
obligations, including arrangements that waive mutual
recovery (such as bill-and-keep arrangements); or
`(ii) to authorize the Commission or any State
commission to engage in any rate regulation proceeding
to establish with particularity the additional costs of
transporting or terminating calls, or to require
carriers to maintain records with respect to the
additional costs of such calls.
`(3) WHOLESALE PRICES FOR TELECOMMUNICATIONS SERVICES- For
the purposes of section 251(c)(4), a State commission shall
determine wholesale rates on the basis of retail rates charged
to subscribers for the telecommunications service requested,
excluding the portion thereof attributable to any marketing,
billing, collection, and other costs that will be avoided by
the local exchange carrier.
`(e) APPROVAL BY STATE COMMISSION-
`(1) APPROVAL REQUIRED- Any interconnection agreement adopted
by negotiation or arbitration shall be submitted for approval
to the State commission. A State commission to which an
agreement is submitted shall approve or reject the agreement,
with written findings as to any deficiencies.
`(2) GROUNDS FOR REJECTION- The State commission may only
reject--
`(A) an agreement (or any portion thereof) adopted by
negotiation under subsection (a) if it finds that--
`(i) the agreement (or portion thereof) discriminates
against a telecommunications carrier not a party to the
agreement; or
`(ii) the implementation of such agreement or portion
is not consistent with the public interest,
convenience, and necessity; or
`(B) an agreement (or any portion thereof) adopted by
arbitration under subsection (b) if it finds that the
agreement does not meet the requirements of section 251,
including the regulations prescribed by the Commission
pursuant to section 251, or the standards set forth in
subsection (d) of this section.
`(3) PRESERVATION OF AUTHORITY- Notwithstanding paragraph
(2), but subject to section 253, nothing in this section shall
prohibit a State commission from establishing or enforcing
other requirements of State law in its review of an agreement,
including requiring compliance with intrastate
telecommunications service quality standards or requirements.
`(4) SCHEDULE FOR DECISION- If the State commission does not
act to approve or reject the agreement within 90 days after
submission by the parties of an agreement adopted by
negotiation under subsection (a), or within 30 days after
submission by the parties of an agreement adopted by
arbitration under subsection (b), the agreement shall be deemed
approved. No State court shall have jurisdiction to review the
action of a State commission in approving or rejecting an
agreement under this section.
`(5) COMMISSION TO ACT IF STATE WILL NOT ACT- If a State
commission fails to act to carry out its responsibility under
this section in any proceeding or other matter under this
section, then the Commission shall issue an order preempting
the State commission's jurisdiction of that proceeding or
matter within 90 days after being notified (or taking notice)
of such failure, and shall assume the responsibility of the
State commission under this section with respect to the
proceeding or matter and act for the State commission.
`(6) REVIEW OF STATE COMMISSION ACTIONS- In a case in which a
State fails to act as described in paragraph (5), the
proceeding by the Commission under such paragraph and any
judicial review of the Commission's actions shall be the
exclusive remedies for a State commission's failure to act. In
any case in which a State commission makes a determination
under this section, any party aggrieved by such determination
may bring an action in an appropriate Federal district court to
determine whether the agreement or statement meets the
requirements of section 251 and this section.
`(f) STATEMENTS OF GENERALLY AVAILABLE TERMS-
`(1) IN GENERAL- A Bell operating company may prepare and
file with a State commission a statement of the terms and
conditions that such company generally offers within that State
to comply with the requirements of section 251 and the
regulations thereunder and the standards applicable under this
section.
`(2) STATE COMMISSION REVIEW- A State commission may not
approve such statement unless such statement complies with
subsection (d) of this section and section 251 and the
regulations thereunder. Except as provided in section 253,
nothing in this section shall prohibit a State commission from
establishing or enforcing other requirements of State law in
its review of such statement, including requiring compliance
with intrastate telecommunications service quality standards or
requirements.
`(3) SCHEDULE FOR REVIEW- The State commission to which a
statement is submitted shall, not later than 60 days after the
date of such submission--
`(A) complete the review of such statement under
paragraph (2) (including any reconsideration thereof),
unless the submitting carrier agrees to an extension of the
period for such review; or
`(B) permit such statement to take effect.
`(4) AUTHORITY TO CONTINUE REVIEW- Paragraph (3) shall not
preclude the State commission from continuing to review a
statement that has been permitted to take effect under
subparagraph (B) of such paragraph or from approving or
disapproving such statement under paragraph (2).
`(5) DUTY TO NEGOTIATE NOT AFFECTED- The submission or
approval of a statement under this subsection shall not relieve
a Bell operating company of its duty to negotiate the terms and
conditions of an agreement under section 251.
`(g) CONSOLIDATION OF STATE PROCEEDINGS- Where not inconsistent
with the requirements of this Act, a State commission may, to the
extent practical, consolidate proceedings under sections 214(e),
251(f), 253, and this section in order to reduce administrative
burdens on telecommunications carriers, other parties to the
proceedings, and the State commission in carrying out its
responsibilities under this Act.
`(h) FILING REQUIRED- A State commission shall make a copy of
each agreement approved under subsection (e) and each statement
approved under subsection (f) available for public inspection and
copying within 10 days after the agreement or statement is
approved. The State commission may charge a reasonable and
nondiscriminatory fee to the parties to the agreement or to the
party filing the statement to cover the costs of approving and
filing such agreement or statement.
`(i) AVAILABILITY TO OTHER TELECOMMUNICATIONS CARRIERS- A local
exchange carrier shall make available any interconnection, service,
or network element provided under an agreement approved under this
section to which it is a party to any other requesting
telecommunications carrier upon the same terms and conditions as
those provided in the agreement.
`(j) DEFINITION OF INCUMBENT LOCAL EXCHANGE CARRIER- For purposes
of this section, the term `incumbent local exchange carrier' has
the meaning provided in section 251(h).
SEC. 253. REMOVAL OF BARRIERS TO ENTRY.
`(a) IN GENERAL- No State or local statute or regulation, or
other State or local legal requirement, may prohibit or have the
effect of prohibiting the ability of any entity to provide any
interstate or intrastate telecommunications service.
`(b) STATE REGULATORY AUTHORITY- Nothing in this section shall
affect the ability of a State to impose, on a competitively neutral
basis and consistent with section 254, requirements necessary to
preserve and advance universal service, protect the public safety
and welfare, ensure the continued quality of telecommunications
services, and safeguard the rights of consumers.
`(c) STATE AND LOCAL GOVERNMENT AUTHORITY- Nothing in this
section affects the authority of a State or local government to
manage the public rights-of-way or to require fair and reasonable
compensation from telecommunications providers, on a competitively
neutral and nondiscriminatory basis, for use of public
rights-of-way on a nondiscriminatory basis, if the compensation
required is publicly disclosed by such government.
`(d) PREEMPTION- If, after notice and an opportunity for public
comment, the Commission determines that a State or local government
has permitted or imposed any statute, regulation, or legal
requirement that violates subsection (a) or (b), the Commission
shall preempt the enforcement of such statute, regulation, or legal
requirement to the extent necessary to correct such violation or
inconsistency.
`(e) COMMERCIAL MOBILE SERVICE PROVIDERS- Nothing in this section
shall affect the application of section 332(c)(3) to commercial
mobile service providers.
`(f) RURAL MARKETS- It shall not be a violation of this section
for a State to require a telecommunications carrier that seeks to
provide telephone exchange service or exchange access in a service
area served by a rural telephone company to meet the requirements
in section 214(e)(1) for designation as an eligible
telecommunications carrier for that area before being permitted to
provide such service. This subsection shall not apply--
`(1) to a service area served by a rural telephone company
that has obtained an exemption, suspension, or modification of
section 251(c)(4) that effectively prevents a competitor from
meeting the requirements of section 214(e)(1); and
`(2) to a provider of commercial mobile services.
`SEC. 254. UNIVERSAL SERVICE.
`(a) PROCEDURES TO REVIEW UNIVERSAL SERVICE REQUIREMENTS-
`(1) FEDERAL-STATE JOINT BOARD ON UNIVERSAL SERVICE- Within
one month after the date of enactment of the Telecommunications
Act of 1996, the Commission shall institute and refer to a
Federal-State Joint Board under section 410(c) a proceeding to
recommend changes to any of its regulations in order to
implement sections 214(e) and this section, including the
definition of the services that are supported by Federal
universal service support mechanisms and a specific timetable
for completion of such recommendations. In addition to the
members of the Joint Board required under section 410(c), one
member of such Joint Board shall be a State-appointed utility
consumer advocate nominated by a national organization of State
utility consumer advocates. The Joint Board shall, after notice
and opportunity for public comment, make its recommendations to
the Commission 9 months after the date of enactment of the
Telecommunications Act of 1996.
`(2) COMMISSION ACTION- The Commission shall initiate a
single proceeding to implement the recommendations from the
Joint Board required by paragraph (1) and shall complete such
proceeding within 15 months after the date of enactment of the
Telecommunications Act of 1996. The rules established by such
proceeding shall include a definition of the services that are
supported by Federal universal service support mechanisms and a
specific timetable for implementation. Thereafter, the
Commission shall complete any proceeding to implement
subsequent recommendations from any Joint Board on universal
service within one year after receiving such recommendations.
`(b) UNIVERSAL SERVICE PRINCIPLES- The Joint Board and the
Commission shall base policies for the preservation and advancement
of universal service on the following principles:
`(1) QUALITY AND RATES- Quality services should be available
at just, reasonable, and affordable rates.
`(2) ACCESS TO ADVANCED SERVICES- Access to advanced
telecommunications and information services should be provided
in all regions of the Nation.
`(3) ACCESS IN RURAL AND HIGH COST AREAS- Consumers in all
regions of the Nation, including low-income consumers and those
in rural, insular, and high cost areas, should have access to
telecommunications and information services, including
interexchange services and advanced telecommunications and
information services, that are reasonably comparable to those
services provided in urban areas and that are available at
rates that are reasonably comparable to rates charged for
similar services in urban areas.
`(4) EQUITABLE AND NONDISCRIMINATORY CONTRIBUTIONS- All
providers of telecommunications services should make an
equitable and nondiscriminatory contribution to the
preservation and advancement of universal service.
`(5) SPECIFIC AND PREDICTABLE SUPPORT MECHANISMS- There
should be specific, predictable and sufficient Federal and
State mechanisms to preserve and advance universal service.
`(6) ACCESS TO ADVANCED TELECOMMUNICATIONS SERVICES FOR
SCHOOLS, HEALTH CARE, AND LIBRARIES- Elementary and secondary
schools and classrooms, health care providers, and libraries
should have access to advanced telecommunications services as
described in subsection (h).
`(7) ADDITIONAL PRINCIPLES- Such other principles as the
Joint Board and the Commission determine are necessary and
appropriate for the protection of the public interest,
convenience, and necessity and are consistent with this Act.
`(c) DEFINITION-
`(1) IN GENERAL- Universal service is an evolving level of
telecommunications services that the Commission shall establish
periodically under this section, taking into account advances
in telecommunications and information technologies and
services. The Joint Board in recommending, and the Commission
in establishing, the definition of the services that are
supported by Federal universal service support mechanisms shall
consider the extent to which such telecommunications services--
`(A) are essential to education, public health, or public
safety;
`(B) have, through the operation of market choices by
customers, been subscribed to by a substantial majority of
residential customers;
`(C) are being deployed in public telecommunications
networks by telecommunications carriers; and
`(D) are consistent with the public interest,
convenience, and necessity.
`(2) ALTERATIONS AND MODIFICATIONS- The Joint Board may, from
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