textfiles-politics/pythonCode/personTestingOutput/hr-3515.xml

<xml><p>HR-3515.TXT</p>

<p>Article by Kaleb Axon
<ent type='ORG'>House</ent> bill HR 3515 transcribed by James D <ent type='PERSON'>Bryant</ent> II</p>

<p>This file may be requested from 1:280/77 @fidonet as
"HR-3515.ZIP". The following related files are also available:</p>

<p> HR-3515.ZIP Text of <ent type='ORG'>House</ent> bill HR 3515, and an article
concerning its contents.</p>

<p> TX-8387.ZIP A brief announcement of the decision in <ent type='GPE'>Texas</ent>
<ent type='ORG'>PUC</ent> docket 8387, Reginald A. Hirsch, et. al.
vs <ent type='ORG'>Southwestern <ent type='ORG'>Bell</ent> <ent type='ORG'>Tele</ent>phone</ent> company, and a
portion of the text of this decision.</p>

<p> 3515-<ent type='ORG'>LTR</ent>.ZIP A sample letter to be sent to your congressmen
concerning HR 3515. Please do not copy this
letter exactly; letter-writing compaigns are
more effective if every letter is different.</p>

<div>----------------------------------------------------------------------</div>

<p> H.R. 3515 -- Transcribed by James D. <ent type='PERSON'>Bryant</ent> II on Nov. 24, 1991
I have proofed this twice, it should not contain any
errors or omissions, I can't access my spell checker
right now, there may be a typo or two somewhere..</p>

<p>Please note that this is not the article written by <ent type='PERSON'>James Bryant</ent>. I
wrote my own notice here, because I strongly disagree with his
viewpoint on this bill. His article may be file requested from
1:1/1 @fidonet as "ta91.zip".</p>

<p>The following document is a full transcription of the
<ent type='ORG'>Tele</ent>communications Act of 1991.</p>

<p>IF THIS BILL PASSES, IT WILL GIVE THE BELL OPERATING COMPANIES
AND OTHER PHONE SERVICE CARRIERS THE FREEDOM TO CHARGE BBS
OPERATORS WHATEVER RATES THEY SEE FIT.</p>

<p>Please write your congressmen, expressing your opposition to this
bill! Be sure to mention the following points:</p>

<p>1. BBSs are not-for-profit.</p>

<p>2. BBSs are not typically used as heavily as larger, for-profit
information services.</p>

<p>3. BBS <ent type='ORG'>operat</ent>ors do not typically charge money for use of the
system.</p>

<p>4. The <ent type='ORG'>sec</ent>tion of the proposed bill which concerns us is (quote
this exactly):</p>

<p> <ent type='ORG'>sec</ent>tion 201A(e) of this bill's proposed ammendment to the
<ent type='ORG'>Com</ent>munications Act of 1934</p>

<p>5. In the state of <ent type='GPE'>Texas</ent>, <ent type='ORG'>Southwestern <ent type='ORG'>Bell</ent> <ent type='ORG'>Tele</ent>phone</ent> attempted
to charge business rates to all BBSs, and the <ent type='GPE'>Texas</ent> Public
Utilities <ent type='ORG'>Commission</ent> unanimously agreed that this was
unfair. In your letter, refer to <ent type='GPE'>Texas</ent> <ent type='ORG'>PUC</ent> docket 8387,
Reginald A. Hirsch, et. al. vs <ent type='ORG'>Southwestern <ent type='ORG'>Bell</ent> <ent type='ORG'>Tele</ent>phone</ent>
<ent type='ORG'>Com</ent>pany. Partial text of their resolution may be requested
for inclusion in your letter, from 1:280/77 @fidonet as
"TX-8387.ZIP".</p>

<p>Please TELL your <ent type='ORG'>Congress</ent>man and Senators, and all members of the
involved committees to vote <special> NO </special> on this bill, unless it is
ammended to guarantee residential phone rates to not-for-profit,
free BBSs.</p>

<p>The basic principle of this bill is a good one; it is intended to
prevent the <ent type='ORG'>Bell</ent> companies from monopolizing the information
services. Please do not say anything in your letter which could
be interpreted as opposition to that basic principle.</p>

<div>--------------------------------------------------------------</div>

<p>H.R. 3515 102nd <ent type='ORG'>Congress</ent>, 1st Session [Page 01 of 35]</p>

<p> H.R. 3515</p>

<p>To amend the <ent type='ORG'>Com</ent>munications Act of 1934 to encourage competition in the
provision of electronic information services, to foster the continued
diversity of information sources and services, to preserve the universal
availability of basic <ent type='ORG'>telecommunicati</ent>ons services, and for other
purposes.</p>

<div>----------------------------------------------------------</div>

<p> IN THE <ent type='ORG'>HOUSE</ent> OF REPRESENTATIVES</p>

<p> October 8, 1991</p>

<p>Mr. <ent type='PERSON'>Cooper</ent> (for himself, Mr. <ent type='ORG'>Bliley</ent>, Mr. <ent type='ORG'>Synar</ent>, Mr. <ent type='PERSON'>Schaefer</ent>, and Mr.
<ent type='PERSON'>Bryant</ent>) introduced the following bill, which was referred jointly to the
<ent type='ORG'>Com</ent>mittees on E<ent type='ORG'>ner</ent>gy and <ent type='ORG'>Com</ent>merce and the Judiciary.</p>

<div>----------------------------------------------------------</div>

<p> A BILL</p>

<p>To amend the <ent type='ORG'>Com</ent>munications Act of 1934 to encourage competition in the
provision of electronic information services, to foster the continued
diversity of information sources and services, to preserve the universal
availability of basic <ent type='ORG'>telecommunicati</ent>ons services, and for other
purposes.</p>

<p>1 Be it enacted by the Senate and <ent type='ORG'>House</ent> of Representa-2 tives of <ent type='GPE'>the United</ent> States of America in <ent type='ORG'>Congress</ent> assembled,</p>

<p>3 <ent type='ORG'>SEC</ent>TION 1. SHORT TITLE</p>

<p>4 This Act may be cited as the "<ent type='ORG'>Tele</ent>communications
5 Act of 1991".</p>

<p>H.R. 3515 102nd <ent type='ORG'>Congress</ent>, 1st Session [Page 02 of 35]</p>

<p> 1 <ent type='ORG'>SEC</ent>TION 2. FINDINGS AND PURPOSES</p>

<p> 2 (a) Findings--The <ent type='ORG'>Congress</ent> finds that--</p>

<p> 3 (1) the national welfare will be enhanced by the
4 continued development of robust competition in the
5 provision of electronic information services and tele-6 communications services;</p>

<p> 7 (2) the widest possible availability of informa-8 tion and <ent type='ORG'>telecommunicati</ent>ons services requires an
9 open <ent type='ORG'>telecommunicati</ent>ons infrastructure that incor-10 porates market-driven advances in technology and
11 whose features and functions are available on a non-12 discriminatory and unbundled basis;</p>

<p> 13 (3) the availability of multiple and inter-14 con<ent type='ORG'>nec</ent>ted complementary <ent type='ORG'>telecommunicati</ent>ons net-15 works can enhance competition in the provision of
16 information and <ent type='ORG'>telecommunicati</ent>ons services;</p>

<p> 17 (4) the redundancy inherent in a pluralistic
18 <ent type='ORG'>telecommunicati</ent>ons infrastructure offers protection
19 against network failures;</p>

<p> 20 (5) the cost-effective deployment of ad<ent type='ORG'>vanced</ent>
21 public <ent type='ORG'>telecommunicati</ent>ns networks, subject to ap-22 propriate safeguards, can further the long-standing
23 goals of universal telephone service at affordable
24 rates;</p>

<p> 25 (6) the provision of information services by di-26 vested <ent type='ORG'>operat</ent>ing companies prior to the development of</p>

<p>H.R. 3515 102nd <ent type='ORG'>Congress</ent>, 1st Session [Page 03 of 35]</p>

<p> 1 an effectively competitive <ent type='ORG'>telecommunicati</ent>ons infra-2 structure would likely lead to higher rates for tele-3 phone exchange service and jepordize the diversity
4 of information sources and services; and</p>

<p> 5 (7) current regulatory policies must be revised
6 and supplemented to ensure the universal availability
7 of telephone exchange service at reasonable rates
8 and fair competition in delivery of <ent type='ORG'>telecommunicati</ent>-9 cations and information services.</p>

<p> 10 (b) PURPOSES--The purposes of this Act are to--</p>

<p> 11 (1) ensure the continued availability of afford-12 able <ent type='ORG'>telecommunicati</ent>ons and information services
13 that are essential to full participation in the nation's
14 economic, political, and social life;</p>

<p> 15 (2) encourage the continued development of ad-16 <ent type='ORG'>vanced</ent>, reliable <ent type='ORG'>telecommunicati</ent>ons networks;</p>

<p> 17 (3) ensure that the costs of such networks and
18 the services provided over them are allocated equi-19 tably among users; and</p>

<p> 20 (4) ensure that the provision of information
21 services by divested <ent type='ORG'>operat</ent>ing companies does not
22 jepordize the universal availability of telephone ex-23 change service at reasonable rates or undermine
24 competition in the information services marketplace.</p>

<p>H.R. 3515 102nd <ent type='ORG'>Congress</ent>, 1st Session [Page 04 of 35]</p>

<p> 1 TITLE I -- INFRASTRUCTURE</p>

<p> 2 DEVELOPMENT</p>

<p> 3 <ent type='ORG'>Sec</ent>. 101. NETWORK STANDARDS</p>

<p> 4 Title II of the <ent type='ORG'>Com</ent>munications Act of 1934 is
5 amended by inserting after <ent type='ORG'>sec</ent>tion 201 the following new
6 <ent type='ORG'>sec</ent>tion:</p>

<p> 7 "<ent type='ORG'>Sec</ent>. 201A. NETWORK STANDARDS.</p>

<p> 8 "(a) SERVICE QUALITY --</p>

<p> 9 "(1) ADOPTION OF STANDARDS.-- A <ent type='ORG'>Federal</ent>-10 State <ent type='ORG'>Joint Board</ent> shall be established under <ent type='ORG'>sec</ent>tion
11 401(c) not later than 90 days after the enactment
12 of this sub<ent type='ORG'>sec</ent>tion to impose and enforce network
13 quality standards upon the common carriers for the
14 purpose of ensuring the combined <ent type='PERSON'>mainte</ent>nance and
15 evolution of common carrier facilities and services.
16 Not later than 180 days after the date of enactment
17 of this sub<ent type='ORG'>sec</ent>tion, <ent type='ORG'>the Joint Board</ent> shall initiate a
18 rulemaking proceeding to establish standards, to be
19 enforced by the <ent type='ORG'>Commission</ent> and the State <ent type='ORG'>Commis</ent>-20 sions as to matters within their respective jurisdic-21 tions, for measuring common carrier network qual-22 ity.</p>

<p> 23 "(2) REPORTS -- Each common carrier shall
24 submit to <ent type='ORG'>the Joint Board</ent> established pursuant to
25 paragraph (1) a quarterly data report, in a form re-</p>

<p>H.R. 3515 102nd <ent type='ORG'>Congress</ent>, 1st Session [Page 05 of 35]</p>

<p>1 quired by <ent type='ORG'>the Joint Board</ent>, reguarding compliance
2 with the prescribed network quality standards. The
3 <ent type='ORG'>Joint Board</ent> may require periodic independant audits
4 of common carrier compliance with the network
5 quality standards. The <ent type='ORG'>Commission</ent>, upon the rec-6 commendation of <ent type='ORG'>the Joint Board</ent>, shall establish en-7 forcement penalties and procedures, including expe-8 dited <ent type='ORG'>cus</ent>tomer complaint mechanisms, to ensure
9 common carrier compliance with network quality
10 standards.</p>

<p>11 "(b) <ent type='ORG'>INTERCONNECTION</ent> --</p>

<p>12 "(1) GENERALLY-- Each local exchange carrier
13 shall provide intercon<ent type='ORG'>nec</ent>tion, on a reasonable and
14 nondiscriminatory basis, to common carriers and
15 other providers of <ent type='ORG'>telecommunicati</ent>ons services and
16 information services who request it. An intercon<ent type='ORG'>nec</ent>t-17 ing party may physically colocate the equipment <ent type='ORG'>nec</ent>-18 essary for intercon<ent type='ORG'>nec</ent>tion at the premises of a local
19 exchange carrier, except as provided under para-20 graph (2).</p>

<p>21 "(2) VIRTUAL COLOCATION-- A local exchange
22 carrier that can demonstrate by clear and convincing
23 evidence in a particular case that the physical
24 colocation required under paragraph (1) is not pract-25 ticable for technical reasons or because of space lim-</p>

<p>H.R. 3515 102nd <ent type='ORG'>Congress</ent>, 1st Session [Page 06 of 35]</p>

<p> 1 itations shall offer an intercon<ent type='ORG'>nec</ent>ting party virtual
2 colocation with it's premises. Virtual colocation shall
3 be economically and technically comparable to inter-4 con<ent type='ORG'>nec</ent>tion that is or would be obtained through
5 physical colocation of the intercon<ent type='ORG'>nec</ent>ting party's
6 equipment at the premises of the local exchange car-7 ier. Nothing in this paragraph shall relieve a di-8 vested <ent type='ORG'>operat</ent>ing company of it's obligations under
9 <ent type='ORG'>sec</ent>tion 227(d)(12).</p>

<p>10 "(3) EXCEPTION FOR RURAL EXCHANGE CAR-11 RIERS.-- Notwithstanding any other provision of this
12 sub<ent type='ORG'>sec</ent>tion, a rural exchange carrier shall not be re-13 quired to provide intercon<ent type='ORG'>nec</ent>tion to another local ex-14 change carrier.</p>

<p>15 "(4) REGUAL<ent type='ORG'>TIONS</ent>-- Within 270 days after the
16 date of enactment of the <ent type='ORG'>Tele</ent>communications Act of
17 1991, the <ent type='ORG'>Commission</ent> shall--</p>

<p>18 "(A) adopt and make effective rules to en-19 force the oblications imposed by this sub<ent type='ORG'>sec</ent>tion;
20 and</p>

<p>21 "(B) initiate a rulemaking to require that
22 the intercon<ent type='ORG'>nec</ent>tion offered by a local exchange
23 carrier pursuant to this sub<ent type='ORG'>sec</ent>tion shall provide
24 for the portability of telephone numbers.</p>

<p>25 "(c) NETWORK ACCESS--</p>

<p>H.R. 3515 102nd <ent type='ORG'>Congress</ent>, 1st Session [Page 07 of 35]</p>

<p> 1 "(1) REVISIONS TO ORDER-- The <ent type='ORG'>Commission</ent>
2 shall further revise the order of the <ent type='ORG'>Commission</ent> en-3 titled '<ent type='ORG'>Filing and Review</ent> of Open Network Archetec-4 ture Plans' CC Docket 88-2, Phase I, released De-5 cember 22, 1988, and subsequently revised, to re-6 quire that--</p>

<p> 7 "(A) the plans for compliance with such
8 order offer unbundled features and functions;</p>

<p> 9 "(B) such features and functions are made
10 available on a reasonably uniform basis by all
11 of the common carriers subject to such order,
12 and that such features and functions are acces-13 sible throughout the service territory of each
14 such carrier;</p>

<p>15 "(C) such plans include a schedule for
16 timely offering of new features asnd functions;
17 and</p>

<p>18 "(D) common carriers subject to such
19 order not unreasonably discriminate between af-20 filiated and unaffiliated providers of informa-21 tion services in offering tariffed and non-22 tariffed features, functions, and capabilities.</p>

<p>23 "(2) REVIEW OF ORDER AND PLANS-- At least
24 once every three years, the <ent type='ORG'>Commission</ent> shall--</p>

<p>H.R. 3515 102nd <ent type='ORG'>Congress</ent>, 1st Session [Page 08 of 35]</p>

<p> 1 "(A) conduct a proceeding in which inter-2 ested parties shall have an opportunity to com-3 ment on whether the order described in para-4 graph (1), as further revised, and the plans
5 filed pursuant to it have opened the networks of
6 the carriers subject to such order to reasonable
7 and non-discriminatory access by providers of
8 <ent type='ORG'>telecommunicati</ent>ons services and information
9 services; and</p>

<p>10 "(B) not later than 180 days after receiv-11 ing the reply comments filed in such proceed-12 ing, revise such order as it deems <ent type='ORG'>nec</ent>essary or
13 appropiate and require the common carriers
14 subject to such order to file new plans consist-15 ent with such revisions, which new plans shall
16 also be subject to public comment and <ent type='ORG'>Commis</ent>-17 sion review prior to their becoming effective.</p>

<p>18 "(d) PRIVACY-- Personally identifiable <ent type='ORG'>cus</ent>tomer in-19 formation obtained or collected by a local exchange carrier
20 in the course of providing telephone exchange service shall
21 be used only in con<ent type='ORG'>nec</ent>tion with the provision of such serv-22 ice, and shall not be made available to any affiliate of such
23 carrier or any other person except--</p>

<p>24 "(1) as required by law; or</p>

<p>H.R. 3515 102nd <ent type='ORG'>Congress</ent>, 1st Session [Page 09 of 35]</p>

<p> 1 "(2) upon the affirmative request by the <ent type='ORG'>cus</ent>-2 tomer to which such information relates.</p>

<p> 3 "(e) TARIFFS--</p>

<p> 4 "(1) GENERALLY-- A local exchange carrier
5 shall prepare and file tariffs in accordance with this
6 Act with respect to the intercon<ent type='ORG'>nec</ent>tion and network
7 access services required under this <ent type='ORG'>sec</ent>tion. The costs
8 that a local exchange carrier incurs in providing
9 such services shall be borne solely by the users of
10 the features and functions comprising such services.
11 The <ent type='ORG'>Commission</ent> shall review such tariffs to ensure
12 that--</p>

<p>13 "(A) the charges for such services are cost-14 based; and</p>

<p>15 "(B) the terms and conditions contained in
16 such tariffs do not bundle together any sepa-17 rable elements, features, or functions.</p>

<p>18 "(2) SUPPORTING <ent type='ORG'>INFORMA</ent>TION-- A local ex-19 change carrier shall submit supporting information
20 with it's tariffs for intercon<ent type='ORG'>nec</ent>tion and network ac-21 cess services that is sufficient to enable the <ent type='ORG'>Commis</ent>-22 sion and the public to determine the relationship be-23 tween the proposed charges and the cost of provid-24 ing such services. The submission of such informa-25 tion shall be pursuant to the rules adopted by the <ent type='ORG'>Com</ent>-</p>

<p>H.R. 3515 102nd <ent type='ORG'>Congress</ent>, 1st Session [Page 10 of 35]</p>

<p> 1 mission to ensure that similarly situated carriers
2 provide such information in an uniform fashion.</p>

<p> 3 "(3) UNIVERSAL SERVICE ELEMENTS-- A local
4 exchange carrier may include in it's tariffs for inter-5 con<ent type='ORG'>nec</ent>tion services an element intended to recover
6 the amount <ent type='ORG'>nec</ent>essary to preclude any substantial in-7 creases in the rates for telephone exchange service
8 that would otherwise result from the offering of
9 intercon<ent type='ORG'>nec</ent>tion services. Such element shall be im-10 posed at a uniform rate on any person who pur-11 chases such services, and shall also be included at
12 the same rate in such carrier's charges for services
13 offered by the carrier in competition with the serv-14 ices offered by intercon<ent type='ORG'>nec</ent>ting parties. No later than
15 270 days after the date of enactment of the <ent type='ORG'>Tele</ent>-16 communications Act of 1991, the <ent type='ORG'>Commission</ent> shall
17 adopt and make effective rules governing the cal-18 culation of such element. Any amounts recovered by
19 the local exchange carrier through the imposition of
20 this additional element shall be used to defray the
21 costs of providing telephone exchange servicce.</p>

<p>22 "(f) RESALE-- The resale of telephone exchange
23 service (or the unbundled elements of such service) in <ent type='ORG'>conjunc</ent>-24 tion with the the furnishing of an interstate telecommuni-25 cations service or any information service shall not be pro-</p>

<p>H.R. 3515 102nd <ent type='ORG'>Congress</ent>, 1st Session [Page 11 of 35]</p>

<p> 1 hibited or subject to unreasonable conditions by the <ent type='ORG'>Com</ent>-2 mission, any State, or any local exchange carrier.</p>

<p> 3 "(g) <ent type='ORG'>COORDINATED</ent> PLANNING-- The <ent type='ORG'>Commission</ent>
4 shall adopt and make effective rules for the conduct of
5 coordinated network planning by common carriers, subject
6 to <ent type='ORG'>Commission</ent> supervision, to ensure (1) the effective and
7 efficient intercon<ent type='ORG'>nec</ent>tion and interoperability of common
8 carrier networks, and (2) that the design of such networks
9 does not impede access to information services by sub-10 <ent type='ORG'>scriber</ent>s to telephone exchange service furnished by a rural
11 exchange carrier.</p>

<p>12 "(h) STUDY-- No later than 270 days after the en-13 actment of the <ent type='ORG'>Tele</ent>communications Act of 1991, the <ent type='ORG'>Com</ent>-14 mission shall initiate an inquiry to examine the effects of
15 competition in the provision of telephone exchange access
16 and telephone exchange service on the availability and
17 rates for telephone exchange service furnished by rural ex-18 change carriers.</p>

<p>19 <ent type='ORG'>SEC</ent>. 102. EXPEDITED REVIEW OF CERTAIN COMPLAINTS</p>

<p>20 <ent type='ORG'>Sec</ent>tion 208 of the <ent type='ORG'>Com</ent>munications Act of 1934 is
21 amended by adding at the end thereof the following new
22 sub<ent type='ORG'>sec</ent>tion:</p>

<p>23 "(c) EXPEDITED REVIEW OF CERTAIN COM-24 PLAINTS-- The <ent type='ORG'>Commission</ent> shall issue a final order with
25 respect to any complaint arising from alleged violations</p>

<p>H.R. 3515 102nd <ent type='ORG'>Congress</ent>, 1st Session [Page 12 of 35]</p>

<p> 1 of <ent type='ORG'>sec</ent>tion 201A within 270 days after such complaint is
2 filed".</p>

<p> 3 <ent type='ORG'>SEC</ent>. 103. EXPEDITED LICENSING OF NEW TECHNOLOGIES</p>

<p> 4 AND SERVICES.</p>

<p> 5 <ent type='ORG'>Sec</ent>tion 7 of the <ent type='ORG'>Com</ent>munications Act of 1934 is
6 amended by adding to the end thereof the following new
7 sub<ent type='ORG'>sec</ent>tion:</p>

<p> 8 "(c) LICENSING OF NEW TECHNOLOGIES-- Within
9 twenty-four months after making a determination under
10 sub<ent type='ORG'>sec</ent>tion (b) that a technology or service related to the
11 furnishing of tlelcommunications services or information
12 services is in the public interest, the <ent type='ORG'>Commission</ent> shall
13 adopt and make effective rules for--</p>

<p>14 "(1) the provision of such technology or service;
15 and</p>

<p>16 "(2) the filing of applications for the <ent type='ORG'>authoriza</ent>-17 tions <ent type='ORG'>nec</ent>essary to offer such technology or service to
18 the public, and shall act on any such application
19 within twenty-four months after it is filed. Any ap-20 plication filed by a carrier under this sub<ent type='ORG'>sec</ent>tion for
21 the construcction or extension of a line shall also be
22 subject to <ent type='ORG'>sec</ent>tion 214 and to any <ent type='ORG'>nec</ent>essary approval
23 by the appropriate State commissions".</p>

<p>H.R. 3515 102nd <ent type='ORG'>Congress</ent>, 1st Session [Page 13 of 35]</p>

<p> 1 TITLE II -- PROVISIONS AFFECTING
2 DIVESTED OPERATING COMPANIES</p>

<p> 3 <ent type='ORG'>SEC</ent>. 201. PROVISION OF <ent type='ORG'>INFORMA</ent>TION SERVICES</p>

<p> 4 Title II of the <ent type='ORG'>Tele</ent>communications Act of 1934 is
5 amended by adding at the end thereof the following new
6 <ent type='ORG'>sec</ent>tion:</p>

<p> 7 "<ent type='ORG'>SEC</ent>. 227. PROVISION OF <ent type='ORG'>INFORMA</ent>TION SERVICES BY DI-8 OPERATING COMPANIES.</p>

<p> 9 "(a) PROVISION OF SERVICES-- A divested <ent type='ORG'>operat</ent>ing
10 company or an affiliate thereof may provide information
11 services, subject to this <ent type='ORG'>sec</ent>tion and title IV.</p>

<p>12 "(b) ELECTRONIC PUBLISHING-- A divested <ent type='ORG'>operat</ent>-13 ing company or an affiliate thereof may not offer elec-14 tronic publishing services in any State in which such com-15 pany or affiliate provides telephone exchange service until
16 the <ent type='ORG'>Commission</ent>, after notice and opportunity for public
17 comment and after consultation with <ent type='ORG'>the Department</ent> of
18 Justice and the appropriate State commissions, deter-19 mines that--</p>

<p>20 "(1) at least 50 percent of all businesses and
21 residences within the areas in each State in which
22 such company or any affiliate thereof provides tele-23 phone exchange service have access to transmission
24 and switching facilities (other than those owned or
25 controlled by a divested <ent type='ORG'>operat</ent>ing company or it's af-</p>

<p>H.R. 3515 102nd <ent type='ORG'>Congress</ent>, 1st Session [Page 14 of 35]</p>

<p> 1 filiate) that are comparable in quality, cost, geo-2 graphic range, and functionality to those offered by
3 the divested <ent type='ORG'>operat</ent>ing company for the delivery of
4 electronic publishing services;</p>

<p> 5 "(2) at least 10 percent of all businesses and
6 residences within the areas in each State in which
7 such company provides telephone exchange service
8 subscribe to services delivered over such alternative
9 facilities; and</p>

<p>10 "(3) the divested <ent type='ORG'>operat</ent>ing company or affiliate
11 thereof seeking to provide such electronic publishing
12 services has demonstrated that there is no substan-13 tial possibility that the divested <ent type='ORG'>operat</ent>ing company
14 could use it's position as a local exchange carrier to
15 (A) impede competition in the provision of electronic
16 publishing services, or (B) impose additional costs
17 upon sub<ent type='ORG'>scriber</ent>s of telephone exchange service.</p>

<p>18 "(c) WAIVER-- A divested <ent type='ORG'>operat</ent>ing company or an
19 affiliate thereof may petition the <ent type='ORG'>Commission</ent> for a waiver
20 of sub<ent type='ORG'>sec</ent>tions (b) and (h) to provide a particular elec-21 tronic publishing service. Such petition shall be granted
22 if such company or affiliate can demonstrate to the <ent type='ORG'>Com</ent>-23 mission by clear and convincing evidence that (A) such
24 service would not exist unless offered by such company
25 or affiliate, and (B) the provision of such service by such</p>

<p>H.R. 3515 102nd <ent type='ORG'>Congress</ent>, 1st Session [Page 15 of 35]</p>

<p> 1 company or affiliate would not impose additional costs
2 upon sub<ent type='ORG'>scriber</ent>s of telephone exchange service. The <ent type='ORG'>Com</ent>-3 mission shall provide notice and opportunity for public
4 comment with respect to any request for a waiver <ent type='ORG'>persu</ent>-5 ant to this sub<ent type='ORG'>sec</ent>tion. The provision of any service author-6 ized pursuant to this sub<ent type='ORG'>sec</ent>tion shall be subject to all of
7 the other provisions of this Act, including title IV and the
8 requirements of this sub<ent type='ORG'>sec</ent>tion.</p>

<p> 9 "(d) SEPARATE SUBSIDIARY--</p>

<p>10 "(1) GENERALLY-- Except as provided in sub-11 <ent type='ORG'>sec</ent>tion (e), a divested <ent type='ORG'>operat</ent>ing company or affiliate
12 thereof may provide information services only
13 through a subsidiary that is separated from the tele-14 phone exchange service <ent type='ORG'>operat</ent>ions of the divested
15 company, in accordance with the requirements of
16 this sub<ent type='ORG'>sec</ent>tion and the regualations prescribed by the
17 <ent type='ORG'>Commission</ent> to carry out this sub<ent type='ORG'>sec</ent>tion.</p>

<p>18 "(2) MINIMUM NUMBER OF OUTSIDE DIREC-19 TORS-- Any subsidiary required by this sub<ent type='ORG'>sec</ent>tion
20 shall have a board of directors not less than 33 per-21 cent of whom are not employees, officers, or direc-22 tors of any divested <ent type='ORG'>operat</ent>ing company or any affili-23 ate of such company.</p>

<p>24 "(3) TRANSACTION REQUIREMENTS-- Any
25 transaction between any divested <ent type='ORG'>operat</ent>ing company</p>

<p>H.R. 3515 102nd <ent type='ORG'>Congress</ent>, 1st Session [Page 16 of 35]</p>

<p> 1 and any other affiliate of such company (including
2 the subsidiary required by this sub<ent type='ORG'>sec</ent>tion)--</p>

<p> 3 "(A) shall not be based upon any pref-4 erence or discrimination arising out of affili-5 ation;</p>

<p> 6 "(B) shall be carried out in the same man-7 <ent type='ORG'>ner</ent> as such company or affiliate conducts such
8 business with unaffiliated persons;</p>

<p> 9 "(C) shall be pursuant to contract or tariff
10 reported to the <ent type='ORG'>Commission</ent> and made available
11 for public inspection;</p>

<p>12 "(D) shall be fully auditable and reflect all
13 costs associated with the conduct of such busi-14 ness; and</p>

<p>15 "(E) shall not have the effect of permitting
16 any violation of the requirements of sub<ent type='ORG'>sec</ent>tion
17 (f) of this <ent type='ORG'>sec</ent>tion.</p>

<p>18 "(4) SEPERATE OPERATION AND PROPERTY--
19 A subsidiary required by this sub<ent type='ORG'>sec</ent>tion may not--</p>

<p>20 "(A) enter into any joint venture or part-21 <ent type='ORG'>ner</ent>ship with the divested <ent type='ORG'>operat</ent>ing company;</p>

<p>22 "(B) have employees or a financial struc-23 ture (other than as provided in this <ent type='ORG'>sec</ent>tion) in
24 common with the divested <ent type='ORG'>operat</ent>ing company;</p>

<p>H.R. 3515 102nd <ent type='ORG'>Congress</ent>, 1st Session [Page 17 of 35]</p>

<p>1 "(C) own any property in common with a
2 divested <ent type='ORG'>operat</ent>ing company; or</p>

<p>3 "(D) establish any other subsidiary or af-4 filiate except after notice to the <ent type='ORG'>Commission</ent> in
5 such form and containing such information as
6 the <ent type='ORG'>Commission</ent> may require.</p>

<p>7 "(5) SEPARATE COMMERCIAL ACTIVITIES-- A
8 subsidiary required by this sub<ent type='ORG'>sec</ent>tion shall carry out
9 directly it's own marketing, sales, accounting, hiring
10 and training of personnel, purchasing, and <ent type='PERSON'>mainte</ent>-11 nance.</p>

<p> 12 "(6) BOOKS, <ent type='ORG'>RECORDS</ent>, AND REPORTS-- Any
13 subsidiary required by this sub<ent type='ORG'>sec</ent>tion shall--</p>

<p> 14 "(A) maintain books, records, and ac-15 counts in a man<ent type='ORG'>ner</ent> prescribed by the <ent type='ORG'>Commis</ent>-16 sion which shall be seperate from the books,
17 records, and accounts maintained by the di-18 vested <ent type='ORG'>operat</ent>ing company and the other affili-19 ates of the divested <ent type='ORG'>operat</ent>ing company, and
20 which shall identify any conduct of business
21 with such company and any such affiliates; and</p>

<p> 22 "(B) prepare it's own financial statements
23 (including balance sheets and the related state-24 ments of <ent type='ORG'>operat</ent>ions, stockholders' equity, and
25 cash flows) that are not consolidated with the</p>

<p>H.R. 3515 102nd <ent type='ORG'>Congress</ent>, 1st Session [Page 18 of 35]</p>

<p>1 financial statements of the divested <ent type='ORG'>operat</ent>ing
2 company and any other affiliate of such com-3 pany; and</p>

<p>4 "(C) prepare and file with the <ent type='ORG'>Commission</ent>,
5 whether or not such subsidiary is publicly trad-6 ed, the annual and periodic reports required of
7 publicly traded companies by the <ent type='ORG'>Sec</ent>urities and
8 Exchange <ent type='ORG'>Commission</ent>.</p>

<p>9 "(7) <ent type='ORG'>ADVERTISING</ent>-- A subsidiary required by
10 this sub<ent type='ORG'>sec</ent>tion may not carry out advertising with
11 the divested <ent type='ORG'>operat</ent>ing company, except that such
12 subsidiary may carry out institutional advertising
13 with such company if (A) such advertising does not
14 specifically relate to any service, and (B) the sub-15 sidiary and the divested <ent type='ORG'>operat</ent>ing comapany share
16 any costs of such advertising in proportion to their
17 revenue.</p>

<p> 18 "(8) <ent type='ORG'>SEC</ent>URITIES <ent type='ORG'>INFORMA</ent>TION-- A subsidiary
19 required by this sub<ent type='ORG'>sec</ent>tion shall submit to the <ent type='ORG'>Com</ent>-20 mission a copy of any statement or prospectus that
21 such subsidiary is required to file with the <ent type='ORG'>Sec</ent>urities
22 and Exchange <ent type='ORG'>Commission</ent>.</p>

<p> 23 "(9) OUTSIDE OWNERSHIP-- A divested <ent type='ORG'>operat</ent>-24 ing company or an affiliate thereof may not own
25 more than 90 percent of any class of outstanding</p>

<p>H.R. 3515 102nd <ent type='ORG'>Congress</ent>, 1st Session [Page 19 of 35]</p>

<p>1 capital stock of any affiliated subsidiary required by
2 this sub<ent type='ORG'>sec</ent>tion.</p>

<p>3 "(10) <ent type='ORG'>TRANSMISSION</ent> CAPACITY-- A seperate
4 subsidiary required by this sub<ent type='ORG'>sec</ent>tion may not own
5 any transmission facilities, and may obtain the use
6 of such facilities from an affiliated divested <ent type='ORG'>operat</ent>-7 ing company or affiliate thereof only pursuant to
8 tariffs of ge<ent type='ORG'>ner</ent>al applicability.</p>

<p>9 "(11) PRESERVATION OF SEPERATE SUBSIDI-10 ARY REQUIREMENTS FOR GRANDFATHERED FUNC-11 <ent type='ORG'>TIONS</ent>-- Nothing in this sub<ent type='ORG'>sec</ent>tion shall be con-12 strued to relieve a divested <ent type='ORG'>operat</ent>ing company or
13 any affiliate thereof (or any other local exchange
14 carrier or affiliate thereof) of any seperate subsidi-15 ary requirement imposed before October 1, 1991.</p>

<p> 16 "(12) PROVISION OF SERVICES AND <ent type='ORG'>INFORMA</ent>-17 TION-- A divested <ent type='ORG'>operat</ent>ing company may not pro-18 vide any services or information to a subsidiary re-19 quired by this sub<ent type='ORG'>sec</ent>tion unless such services or in-20 formation are made available to others on the same
21 terms and conditions.</p>

<p> 22 "(e) EXCEPTION TO SEPERATE SUBSIDIARY RE-23 QUIREMENT-- A divested <ent type='ORG'>operat</ent>ing company or affiliate
24 thereof shall not be required to establish a subsidiary pur-25 suant to sub<ent type='ORG'>sec</ent>tion (d) with respect to any information</p>

<p>H.R. 3515 102nd <ent type='ORG'>Congress</ent>, 1st Session [Page 20 of 35]</p>

<p>1 service provided by such company or affiliate on or before
2 October 1, 1991.</p>

<p>3 "(f) <ent type='EVENT'>PREVENTION</ent> OF CROSS-SUBSIDIARIES--</p>

<p>4 "(1) COST ALLOCATION SYSTEM REQUIRED--
5 Any divested <ent type='ORG'>operat</ent>ing company that provides infor-6 mation services, or which has an affiliate that is en-7 gaged in the provision of such services, shall estab-8 lish and administer, in accordance with the require-9 ments of this sub<ent type='ORG'>sec</ent>tion and the regulations pre-10 scribed thereunder, a cost allocation system that, to-11 gether with the subsidiary requirements of sub-12 <ent type='ORG'>sec</ent>tion (d), is intended to prohibit any cost of pro-13 viding such services from being subsidized by reve-14 nue from telephone exchange service or telephone ex-15 change access services.</p>

<p> 16 "(2) COST ASSIGNMENT AND ALLOCATION REG-17 ULA<ent type='ORG'>TIONS</ent>--</p>

<p> 18 "(A) GENERALLY-- The <ent type='ORG'>Commission</ent> shall
19 establish regulations to require the just and
20 reasonable assignment and allocation of all
21 costs that are in any way incurred by a divested
22 <ent type='ORG'>operat</ent>ing company or any affiliate thereof in
23 the provision of any information service.</p>

<p> 24 "(B) JOINT AND COMMON COSTS-- The
25 regulations adopted pursuant to this paragraph</p>

<p>H.R. 3515 102nd <ent type='ORG'>Congress</ent>, 1st Session [Page 21 of 35]</p>

<p>1 shall include a requirement that any costs of
2 any investment or other expenditure that can-3 not be allocated based upon direct or indirect
4 measures of cost causation shall be allocated to
5 unregulated services--</p>

<p>6 "(i) under a formula that ensures that
7 the rates for telephone exchange service
8 are no greater than they would have been
9 in the absence of such investment (taking
10 into account any decline in the real costs
11 of providing such service), or</p>

<p> 12 "(ii) based upon the highest forecast
13 unregulated usage of the investment over
14 the life of the investment,</p>

<p> 15 whichever method results in the lesser allocation
16 of such costs to telephone exchange service.</p>

<p> 17 "(3) INSULATION OF RATEPAYERS--</p>

<p> 18 "(A) ASSETS-- The <ent type='ORG'>Commission</ent> shall, by
19 regulation, ensure that the economic risks asso-20 ciated with the provision of information services
21 by divested <ent type='ORG'>operat</ent>ing companies or affiliates
22 thereof (including any increases in the divested
23 <ent type='ORG'>operat</ent>ing company's cost of capital that occur
24 as a result of the provision of such services) are
25 not borne by <ent type='ORG'>cus</ent>tomers of telephone exchange</p>

<p>H.R. 3515 102nd <ent type='ORG'>Congress</ent>, 1st Session [Page 22 of 35]</p>

<p>1 service in the event of a business loss or failure.
2 Investments or other expenditures assigned to
3 information services shall not be reassigned to
4 telephone exchange service or telephone ex-5 change access service.</p>

<p>6 "(B) DEBT-- Any divested <ent type='ORG'>operat</ent>ing com-7 pany affiliate--</p>

<p>8 "(i) which is providing information
9 services, and</p>

<p> 10 "(ii) which is required to be or is
11 structurally seperate from an affiliate en-12 gaged in the provision of telephone ex-13 change service,</p>

<p> 14 shall not obtain credit under any arrangement
15 that (I) would permit a creditor, upon default,
16 to have recourse to the assets of the divested
17 <ent type='ORG'>operat</ent>ing company, or (II) would induce a cred-18 itor to rely on the tangible or intangible assets
19 of the divested <ent type='ORG'>operat</ent>ing company in extending
20 credit.</p>

<p> 21 "(4) TRANSFERS OF ASSETS BETWEEN AFFILI-22 <ent type='ORG'>ATED</ent> COMPANIES-- The <ent type='ORG'>Commission</ent> shall prescribe
23 regulations governing the accounting for the transfer
24 of assets between a divested <ent type='ORG'>operat</ent>ing company and
25 it's affiliates. Such regulations shall protect the inter-</p>

<p>H.R. 3515 102nd <ent type='ORG'>Congress</ent>, 1st Session [Page 23 of 35]</p>

<p>1 ests of ratepayers of telephone exchange service and
2 require such transfer to be conducted by means of
3 a transaction that complies with sub<ent type='ORG'>sec</ent>tion (d)(3).
4 Such regulations shall require that--</p>

<p>5 "(A) any transfer of assets from such an
6 affiliate to it's affiliated divested <ent type='ORG'>operat</ent>ing com-7 pany be valued at the lesser of net book cost or
8 fair market value; and</p>

<p>9 "(B) any transfer of assets fromm a divested
10 <ent type='ORG'>operat</ent>ing company to it's affiliate be valued at
11 the greater of net book cost or fair market
12 value.</p>

<p> 13 "(5) ANNUAL AUTIDING REQUIREMENT--</p>

<p> 14 "(A) AUDIT <ent type='ORG'>APPLICABILITY</ent> AND PUR-15 POSE-- Each divested <ent type='ORG'>operat</ent>ing company that
16 engages in, or has an affiliate that engages in,
17 or has a financial or management interest in an
18 orginization or entity that provides information
19 services, shall provide annually to the <ent type='ORG'>Commis</ent>-20 sion, and to the State <ent type='ORG'>Commission</ent> of each State
21 within which such company provides telephone
22 exchange service, a report on the results of an
23 audit by an independant auditor conducted for
24 the purpose of determining wether the com-25 pany has--</p>

<p>H.R. 3515 102nd <ent type='ORG'>Congress</ent>, 1st Session [Page 24 of 35]</p>

<p>1 "(i) established and administered a
2 cost allocation system as required by para-3 graph (1) of this sub<ent type='ORG'>sec</ent>tion, and</p>

<p>4 "(ii) complied with the cost assign-5 ment and allocation regulations prescribed
6 under this sub<ent type='ORG'>sec</ent>tion.</p>

<p>7 "(B) <ent type='ORG'>CONDUIT</ent> OF AUDIT-- Such audit
8 shall be conducted, at divested <ent type='ORG'>operat</ent>ing com-9 pany expense, in accordance with audit proce-10 dures prescribed by the <ent type='ORG'>Commission</ent>, by regula-11 tion, which shall include approval of auditor se-12 lection by the <ent type='ORG'>Commission</ent> and rotation of audi-13 tors or other procedures to ensure the inde-14 pendence of such auditor.</p>

<p> 15 "(C) SUBMISSION OF AUDIT RESULTS;
16 CERTIFICATION-- The divested <ent type='ORG'>operat</ent>ing com-17 pany shall submit the audit to the <ent type='ORG'>Commission</ent>,
18 which shall make the audit report available for
19 public inspection. Such report shall be certified
20 by the person conducting the audit and by an
21 appropriate officer of such affiliate and shall
22 identify with particularity any qualifications or
23 limitations on such certification and any other
24 information relevant to the enforcement of the
25 requirements of this <ent type='ORG'>sec</ent>tion.</p>

<p>H.R. 3515 102nd <ent type='ORG'>Congress</ent>, 1st Session [Page 25 of 35]</p>

<p>1 "(D) ACCESS TO DOCUMENTS-- For pur-2 poses of conducting and reviewing such audit--</p>

<p>3 "(i) the auditor, the <ent type='ORG'>Commission</ent>, and
4 a State commission with jurisdiction over
5 the divested <ent type='ORG'>operat</ent>ing company shall have
6 access to the accounts and records of the
7 divested <ent type='ORG'>operat</ent>ing company and to those
8 accounts and records of any of it's affiliates
9 <ent type='ORG'>nec</ent>essary to verify transactions conducted
10 with the divested <ent type='ORG'>operat</ent>ing company; and</p>

<p> 11 "(ii) the <ent type='ORG'>Commission</ent> and a State
12 commission shall have access to the work-13 ing papers and supporting materials of any
14 auditor who performs an audit under this
15 paragraph.</p>

<p> 16 "(g) RECOVERY OF USE OF INTANGIBLE ASSETS--
17 The <ent type='ORG'>Commission</ent> and a State commission shall, within
18 their respective jurisdictions, require a divested <ent type='ORG'>operat</ent>ing
19 company to assess any affiliate providing information
20 services a charge for the reasonable vvalue of any intangible
21 assets used in the provision of information services, and
22 to credit the amount of such charge to the provision of
23 telephone exchange service.</p>

<p> 24 "(h) REMOVAL OF BARRIERS TO COMPETITIVE
25 ENTRY-- A divested <ent type='ORG'>operat</ent>ing company or affiliate there-</p>

<p>H.R. 3515 102nd <ent type='ORG'>Congress</ent>, 1st Session [Page 26 of 35]</p>

<p>1 of may not provide electronic publishing services, other
2 than those it provided on or before October 1, 1991, in
3 any State in which such company or affiliate provides tele-4 phone exchange service, unless and untill all entry barriers
5 to the competitive provision of <ent type='ORG'>telecommunicati</ent>ons services
6 imposed by each State or State commission in which such
7 company or affiliate provides telephone exchange service
8 have been removed with respect to such company or affili-9 ate.</p>

<p> 10 "(i) PROVISION OF GATEWAY SERVICES-- Any di-11 vested <ent type='ORG'>operat</ent>ing company or affiliate thereof that offers
12 a gateway service shall make such service available concurr-13 ently to all it's sub<ent type='ORG'>scriber</ent>s at the same rates, terms,
14 and conditions.</p>

<p> 15 "(j) ENFORCEMENT-- A person who is injured by a
16 violation of any of the requirements of this <ent type='ORG'>sec</ent>tion may,
17 in lieu of filing a complaint under <ent type='ORG'>sec</ent>tion 208, commence
18 in a civil action for injunctive relief and monetary damages
19 in any <ent type='ORG'>Federal</ent> judicial district in which the defendant re-20 sides or has an agent. A residential <ent type='ORG'>cus</ent>tomer of telephone
21 exchange service shall have standing to commence an ac-22 tion under this <ent type='ORG'>sec</ent>tion, without regard to the amount in
23 controversy. In any action brought under this <ent type='ORG'>sec</ent>tion, the
24 court may award the costs of litigation (including reson-25 able attorneys fees).</p>

<p>H.R. 3515 102nd <ent type='ORG'>Congress</ent>, 1st Session [Page 27 of 35]</p>

<p>1 "(k) ADDITIONAL AUTHORITY-- In addition to any
2 other authority which the <ent type='ORG'>Commission</ent> may exercise under
3 this Act, the <ent type='ORG'>Commission</ent> shall take such actions as are
4 <ent type='ORG'>nec</ent>essary--</p>

<p>5 "(1) to prevent anticompetitive practicces be-6 tween a divested <ent type='ORG'>operat</ent>ing company and any affili-7 ate of the divested <ent type='ORG'>operat</ent>ing company;</p>

<p>8 "(2) to protect ratepayers of divested <ent type='ORG'>operat</ent>ing
9 companies from subsidizing the provision of informa-10 tion services by such companies or their affiliates;</p>

<p> 11 "(3) to prevent any divested <ent type='ORG'>operat</ent>ing company
12 or any affiliate thereof fromm imposing any unjust or
13 unreasonable rates or charges for any common car-14 ier services that are provided in con<ent type='ORG'>nec</ent>tion with the
15 provision of information services.</p>

<p> 16 "(m) DEFINI<ent type='ORG'>TIONS</ent>-- As used in this <ent type='ORG'>sec</ent>tion--</p>

<p> 17 "(1) AFFILIATE-- The term 'affiliate' means
18 any organization or entity that, directly or indirectly,
19 owns or controls, or is owned or controlled by, or is
20 under common ow<ent type='ORG'>ner</ent>ship or control with, a divested
21 <ent type='ORG'>operat</ent>ing company. For purposes of this paragraph,
22 the terms 'own', 'owned', and 'ow<ent type='ORG'>ner</ent>ship' means a di-23 rect or indirect equity interest (or equivalent there-24 of) of more than 10 percent of an organization or
25 entity, or the right to more than 10 percent of the</p>

<p>H.R. 3515 102nd <ent type='ORG'>Congress</ent>, 1st Session [Page 28 of 35]</p>

<p>1 gross revenues of an organization or entity under a
2 revenue sharing or royalty agreement.</p>

<p>3 "(3) DIVESTED OPERATING COMPANY-- The
4 term 'divested <ent type='ORG'>operat</ent>ing company'--</p>

<p>5 "(A) means any of the following compa-6 nies: <ent type='ORG'>Bell</ent> <ent type='ORG'>Tele</ent>phone <ent type='ORG'>Com</ent>pany of Nevada, <ent type='GPE'>Illi</ent>-7 nois <ent type='ORG'>Bell</ent> <ent type='ORG'>Tele</ent>phone <ent type='ORG'>Com</ent>pany, <ent type='NORP'>Indiana</ent> <ent type='ORG'>Bell</ent>
8 <ent type='ORG'>Tele</ent>phone <ent type='ORG'>Com</ent>pany, Incorporated, <ent type='GPE'>Michigan</ent>
9 <ent type='ORG'>Bell</ent> <ent type='ORG'>Tele</ent>phone <ent type='ORG'>Com</ent>pany, New England <ent type='ORG'>Tele</ent>-10 phone and <ent type='ORG'>Tele</ent>graph <ent type='ORG'>Com</ent>pany, <ent type='GPE'>New Jersey</ent>
11 <ent type='ORG'>Bell</ent> <ent type='ORG'>Tele</ent>phone <ent type='ORG'>Com</ent>pany, New York <ent type='ORG'>Tele</ent>phone
12 <ent type='ORG'>Com</ent>pany, US West <ent type='ORG'>Com</ent>munications <ent type='ORG'>Com</ent>pany,
13 South Central <ent type='ORG'>Bell</ent> <ent type='ORG'>Tele</ent>phone <ent type='ORG'>Com</ent>pany, South-14 ern <ent type='ORG'>Bell</ent> <ent type='ORG'>Tele</ent>phone and <ent type='ORG'>Tele</ent>graph <ent type='ORG'>Com</ent>pany,
15 <ent type='ORG'>Southwestern <ent type='ORG'>Bell</ent> <ent type='ORG'>Tele</ent>phone</ent> <ent type='ORG'>Com</ent>pany, the
16 <ent type='ORG'>Bell</ent> <ent type='ORG'>Tele</ent>phone <ent type='ORG'>Com</ent>pany of <ent type='GPE'>Pennsylvania</ent>, the
17 <ent type='GPE'>Chesapeake</ent> and <ent type='GPE'>Poto</ent>mac <ent type='ORG'>Tele</ent>phone <ent type='ORG'>Com</ent>pany,
18 the <ent type='GPE'>Chesapeake</ent> and <ent type='GPE'>Poto</ent>mac <ent type='ORG'>Tele</ent>phone <ent type='ORG'>Com</ent>-19 pany of <ent type='GPE'>Maryland</ent>, the <ent type='GPE'>Chesapeake</ent> and <ent type='GPE'>Poto</ent>-20 mac <ent type='ORG'>Tele</ent>phone <ent type='ORG'>Com</ent>pany of <ent type='GPE'>Virginia</ent>, the
21 <ent type='GPE'>Chesapeake</ent> and <ent type='GPE'>Poto</ent>mac <ent type='ORG'>Tele</ent>phone <ent type='ORG'>Com</ent>pany
22 of West <ent type='GPE'>Virginia</ent>, the <ent type='PERSON'>Diamond</ent> State <ent type='ORG'>Tele</ent>phone
23 <ent type='ORG'>Com</ent>pany, the Ohio <ent type='ORG'>Bell</ent> <ent type='ORG'>Tele</ent>phone <ent type='ORG'>Com</ent>pany,
24 the Pacific <ent type='ORG'>Tele</ent>phone and <ent type='ORG'>Tele</ent>graph <ent type='ORG'>Com</ent>pany,
25 and Wisconsin <ent type='ORG'>Tele</ent>phone <ent type='ORG'>Com</ent>pany; and</p>

<p>H.R. 3515 102nd <ent type='ORG'>Congress</ent>, 1st Session [Page 29 of 35]</p>

<p>1 "(B) includes any successor or assign of
2 any such company, but does not include any af-3 filiate of such company.</p>

<p>4 "(3) GATEWAY SERVICE-- The term 'gateway
5 service' means an information service that, at the re-6 quest of the provider of an electronic publishing
7 service or other information service, provides a sub-8 <ent type='ORG'>scriber</ent> with access to such electronic publishing
9 service or other information service, utilizing the fol-10 lowing functions: data transmission, address trans-11 lation, billing information, protocol conversion, and
12 introductory information content."</p>

<p> 13 <ent type='ORG'>SEC</ent>. 202. AUTHORIZATION OF APPROPRIA<ent type='ORG'>TIONS</ent>.</p>

<p> 14 "(a) AMENDMENT-- <ent type='ORG'>Sec</ent>tion 6 of the <ent type='ORG'>Com</ent>munica-15 tions Act of 1934 is amended by adding at the end thereof
16 the following new sub<ent type='ORG'>sec</ent>tion:</p>

<p> 17 "(d) SEPERATE SUBSIDIARY REQUIREMENTS-- Such
18 sums as may be <ent type='ORG'>nec</ent>essary are authorized to be appro-19 priated for the implementation and enforcement of the re-20 quirements of <ent type='ORG'>sec</ent>tion 208(c) and 227 of this Act. Such
21 funds shall be in addition to any appropriations authorized
22 under sub<ent type='ORG'>sec</ent>tion (a)."</p>

<p> 23 "(b) PROVISION OF <ent type='ORG'>INFORMA</ent>TION SERVICES-- A di-24 vested <ent type='ORG'>operat</ent>ing company or an affiliate thereof may not
25 provide information services until enactment of the</p>

<p>H.R. 3515 102nd <ent type='ORG'>Congress</ent>, 1st Session [Page 30 of 35]</p>

<p>1 initial appropriation of funds authorized under <ent type='ORG'>sec</ent>tion
2 6(d) of the <ent type='ORG'>Com</ent>munications Act of 1934, as added by <ent type='ORG'>sec</ent>-3 tion 202(a) of this Act.</p>

<p>4 TITLE III -- MISCELLANEOUS PROVISIONS
5 <ent type='ORG'>SEC</ent>. 301. DEFINI<ent type='ORG'>TIONS</ent></p>

<p>6 <ent type='ORG'>Sec</ent>tion 3 of the <ent type='ORG'>Com</ent>municatins Act of 1934 is
7 amended by adding at the end thereof the following new
8 sub<ent type='ORG'>sec</ent>tions:</p>

<p>9 "(hh) 'Electronic publishing service' means the provi-10 sion of any information--</p>

<p> 11 "(1)(A) that the provider or publisher has (or
12 has caused to be) authored, originated, gathered,
13 collected, produced, compiled, edited, categorized, or
14 indexed; or</p>

<p> 15 "(B) in which the provider or publisher has a
16 direct or indirect financial or proprietary interest;
17 and</p>

<p> 18 "(2) which is disseminated to an unaffiliated
19 person through some electronic means.</p>

<p> 20 "(ii) 'Information services' means the offering of a
21 capability for ge<ent type='ORG'>ner</ent>ating, acquiring, storing, transforming,
22 processing, retrieving, utilizing, or making available infor-23 mation that may be conveyed via <ent type='ORG'>telecommunicati</ent>ons, and
24 includes electronic publishing, but does not include any
25 use of any such capability for the management, control,</p>

<p>H.R. 3515 102nd <ent type='ORG'>Congress</ent>, 1st Session [Page 31 of 35]</p>

<p>1 or <ent type='ORG'>operat</ent>ion of a <ent type='ORG'>telecommunicati</ent>ons service or the man-2 agement of a <ent type='ORG'>telecommunicati</ent>ons service.</p>

<p>3 "(jj) 'Local exchange carrier' means a provider of
4 telephone exchange service that is classified by the <ent type='ORG'>Com</ent>-5 mission as a dominant carrier.</p>

<p>6 "(kk) 'Rural exchange carrier' means <ent type='PERSON'>menas</ent> a local ex-7 change carrier serving a total of 50000 or fewer access
8 lines.</p>

<p>9 "(ll) '<ent type='ORG'>Tele</ent>communications' means the transmission,
10 between or among points specified by the <ent type='ORG'>cus</ent>tomer, of in-11 formation of the <ent type='ORG'>cus</ent>tomer's choosing, without change in
12 the form or content of the information as sent and re-13 ceived, by means of an electromagnetic transmission me-14 dium, including all instrumentalities, facilities, apparatus,
15 and services (including the collection, storage, forwarding,
16 switching, and delivery of such information) essential to
17 such transmission.</p>

<p> 18 "(mm) '<ent type='ORG'>Tele</ent>communications service' means the pub-19 lic or private offering for hire of <ent type='ORG'>telecommunicati</ent>ons facili-20 ties."</p>

<p> 22 <ent type='ORG'>SEC</ent>. 302. JURISDICTION</p>

<p> 23 <ent type='ORG'>Sec</ent>tion 2 of the <ent type='ORG'>Com</ent>munications Act of 1934 is
24 amended--</p>

<p>H.R. 3515 102nd <ent type='ORG'>Congress</ent>, 1st Session [Page 32 of 35]</p>

<p>1 (1) in sub<ent type='ORG'>sec</ent>tion (b), by striking out "223 or
2 224" and inserting "223, 224, 225, and 227"; and</p>

<p>3 (2) by adding at the end the thereof the following
4 new sub<ent type='ORG'>sec</ent>tion:</p>

<p>5 "(c)(1) Notwithstanding sub<ent type='ORG'>sec</ent>tion (b), a State may
6 not regulate the rates, terms, or conditions for the offering
7 of information service, except as provided in this sub-8 <ent type='ORG'>sec</ent>tion and title IV.</p>

<p>9 "(2) A State may impose regulations upon a local ex-10 change carrier with respect to the intrastate provision of
11 information services by such carrier or an affiliate thereof
12 if--</p>

<p> 13 "(A) such regulations are <ent type='ORG'>nec</ent>essary and appro-14 priate to seperate the provision of such services from
15 the provision of telephone exchange services by such
16 carrier or affiliate;</p>

<p> 17 "(B) such regulations are intended to protect
18 the privacy rights of <ent type='ORG'>cus</ent>tomers of telephone ex-19 change services;</p>

<p> 20 "(C) such regulations do not affect the rates,
21 terms, or conditions for the provision of such infor-22 mations services or the types of such services offered
23 by such carrier or affiliate; and</p>

<p> 24 "(D) such regulations are not inconsistent with
25 the purposes of this Act or impede signifigantly the</p>

<p>H.R. 3515 102nd <ent type='ORG'>Congress</ent>, 1st Session [Page 33 of 35]</p>

<p>1 enforcement of this Act or any regulation or order
2 prescribed by the <ent type='ORG'>Commission</ent> pursuant to the
3 Act."</p>

<p>4 <ent type='ORG'>SEC</ent>. 303. TELEPHONE EXCHANGE SERVICE IN RURAL
5 AREAS</p>

<p>6 Nothing in the amendments made by this Act shall
7 be construed to limit <ent type='ORG'>the authority</ent> of the States to take
8 actions, consistant with the findings and purposes of that
9 Act, to ensure thae availability of telephone exchange serv-10 ice at resonable rates in areas served by rural exchange
11 carriers (as such term is defined in <ent type='ORG'>sec</ent>tion 3(kk) of the
12 <ent type='ORG'>Com</ent>munications Act of 1934).</p>

<p> 13 <ent type='ORG'>SEC</ent>. 304. <ent type='ORG'>APPLICABILITY</ent> OF OTHER PROVISIONS OF COM-14 MUNICA<ent type='ORG'>TIONS</ent> ACT</p>

<p> 15 Nothing in the amendments made by this Act shall
16 be construed to relieve a divested <ent type='ORG'>operat</ent>ing company or
17 affiliate thereof (as such terms are defined in <ent type='ORG'>sec</ent>tion
18 227(m) of the <ent type='ORG'>Com</ent>munications Act of 1934) of any of
19 the obligations, limitations, or responsibilities imposed by
20 any other provision of the <ent type='ORG'>Com</ent>munications Act of 1934,
21 as amended.</p>

<p> 22 <ent type='ORG'>SEC</ent>. 305. <ent type='ORG'>APPLICABILITY</ent> OF ANTITRUST LAWS</p>

<p> 23 (a) <ent type='ORG'>APPLICABILITY</ent> OF THE MODIFICATION OF FINAL
24 JUDGEMENT-- A divested <ent type='ORG'>operat</ent>ing company shall remain
25 fully suubject to the Modification of Final Judgement in all</p>

<p>H.R. 3515 102nd <ent type='ORG'>Congress</ent>, 1st Session [Page 34 of 35]</p>

<p>1 respects except as expressly provided in the amendments
2 made by this Act.</p>

<p>3 (b) NO ANTITRUST IMMUNITY-- Nothing in the
4 amendments made by this Act shall be construed to create
5 any immunity to any civil or criminal action under any
6 <ent type='ORG'>Federal</ent> or State antitrust law, or to alter or restrict in
7 any man<ent type='ORG'>ner</ent> the applicability of any <ent type='ORG'>Federal</ent> or State anti-8 trust law to the actions of a divested <ent type='ORG'>operat</ent>ing company
9 or affiliate thereof (as such terms are defined in <ent type='ORG'>sec</ent>tion
10 227(m) of the <ent type='ORG'>Com</ent>munications Act of 1934).</p>

<p> 11 (c) DEFINI<ent type='ORG'>TIONS</ent>-- For purposes of this <ent type='ORG'>sec</ent>tion--</p>

<p> 12 (1) FEDERAL ANTITRUST LAWS-- The term
13 '<ent type='ORG'>Federal</ent> antitrust laws' means --</p>

<p> 14 (A) the acts as cited in <ent type='ORG'>sec</ent>tion 1 of the Clay-15 ton Act (15 <ent type='ORG'>USC</ent> 12),</p>

<p> 16 (B) <ent type='ORG'>sec</ent>tion 5 of the <ent type='ORG'>Federal</ent> Trade <ent type='ORG'>Com</ent>-17 mission Act (15 <ent type='ORG'>USC</ent> 45); and</p>

<p> 18 (C) any law enacted after the datr of en-19 actment of this Act by the <ent type='ORG'>Congress</ent> which pro-20 hibits, or makes available to <ent type='GPE'>the United</ent> States
21 or to any person in any court of <ent type='GPE'>the United</ent>
22 States any civil remedy with respect to, any re-23 restraint upon, or monopolization of, interstate or
24 foreign trade or commerce.</p>

<p>H.R. 3515 102nd <ent type='ORG'>Congress</ent>, 1st Session [Page 35 of 35]</p>

<p>1 (2) MODIFICATION OF FINAL JUDGMENT -- The
2 term 'Modification of final judgment' means the
3 order entered August 24, 1982, in United States -vs-4 <ent type='ORG'>Western Electric</ent> Co., Civil Action No. 82-0192
5 (United States <ent type='ORG'>District Court</ent>, District of <ent type='GPE'>Columbia</ent>)</p>

<p>[END]

</p></xml>