Pub.L. 104-105 To amend the Farm Credit Act of 1971 to provide regulatory relief, and for other purposes. <> ...

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            ``(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

[[Page 110 STAT. 70]]

                    ``(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) <<NOTE: Public information.>>  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. <<NOTE: 47 USC 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

[[Page 110 STAT. 71]]

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. <<NOTE: 47 USC 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.

[[Page 110 STAT. 72]]

            ``(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 time to time, recommend to the Commission modifications in 
        the definition of the services that are supported by Federal 
        universal service support mechanisms.
            ``(3) Special services.--In addition to the services 
        included in the definition of universal service under paragraph 
        (1), the Commission may designate additional services for such 
        support mechanisms for schools, libraries, and health care 
        providers for the purposes of subsection (h).

[[Page 110 STAT. 73]]

    ``(d) Telecommunications Carrier Contribution.--Every 
telecommunications carrier that provides interstate telecommunications 
services shall contribute, on an equitable and nondiscriminatory basis, 
to the specific, predictable, and sufficient mechanisms established by 
the Commission to preserve and advance universal service. The Commission 
may exempt a carrier or class of carriers from this requirement if the 
carrier's telecommunications activities are limited to such an extent 
that the level of such carrier's contribution to the preservation and 
advancement of universal service would be de minimis. Any other provider 
of interstate telecommunications may be required to contribute to the 
preservation and advancement of universal service if the public interest 
so requires.
    ``(e) Universal Service Support.--After the date on which Commission 
regulations implementing this section take effect, only an eligible 
telecommunications carrier designated under section 214(e) shall be 
eligible to receive specific Federal universal service support. A 
carrier that receives such support shall use that support only for the 
provision, maintenance, and upgrading of facilities and services for 
which the support is intended. Any such support should be explicit and 
sufficient to achieve the purposes of this section.
    ``(f) State Authority.--A State may adopt regulations not 
inconsistent with the Commission's rules to preserve and advance 
universal service. Every telecommunications carrier that provides 
intrastate telecommunications services shall contribute, on an equitable 
and nondiscriminatory basis, in a manner determined by the State to the 
preservation and advancement of universal service in that State. A State 
may adopt regulations to provide for additional definitions and 
standards to preserve and advance universal service within that State 
only to the extent that such regulations adopt additional specific, 
predictable, and sufficient mechanisms to support such definitions or 
standards that do not rely on or burden Federal universal service 
support mechanisms.
    ``(g) <<NOTE: Rules. Rural areas.>>  Interexchange and Interstate 
Services.--Within 6 months after the date of enactment of the 
Telecommunications Act of 1996, the Commission shall adopt rules to 
require that the rates charged by providers of interexchange 
telecommunications services to subscribers in rural and high cost areas 
shall be no higher than the rates charged by each such provider to its 
subscribers in urban areas. Such rules shall also require that a 
provider of interstate interexchange telecommunications services shall 
provide such services to its subscribers in each State at rates no 
higher than the rates charged to its subscribers in any other State.

    ``(h) Telecommunications Services for Certain Providers.--
            ``(1) In general.--
                    ``(A) Health care providers for rural areas.--A 
                telecommunications carrier shall, upon receiving a bona 
                fide request, provide telecommunications services which 
                are necessary for the provision of health care services 
                in a State, including instruction relating to such 
                services, to any public or nonprofit health care 
                provider that serves persons who reside in rural areas 
                in that State at rates that are reasonably comparable to 
                rates charged for similar services in urban areas in 
                that State. A telecommunications carrier providing 
                service under this paragraph shall be entitled to have 
                an amount equal to the difference, if any,

[[Page 110 STAT. 74]]

                between the rates for services provided to health care 
                providers for rural areas in a State and the rates for 
                similar services provided to other customers in 
                comparable rural areas in that State treated as a 
                service obligation as a part of its obligation to 
                participate in the mechanisms to preserve and advance 
                universal service.
                    ``(B) Educational providers and libraries.--All 
                telecommunications carriers serving a geographic area 
                shall, upon a bona fide request for any of its services 
                that are within the definition of universal service 
                under subsection (c)(3), provide such services to 
                elementary schools, secondary schools, and libraries for 
                educational purposes at rates less than the amounts 
                charged for similar services to other parties. The 
                discount shall be an amount that the Commission, with 
                respect to interstate services, and the States, with 
                respect to intrastate services, determine is appropriate 
                and necessary to ensure affordable access to and use of 
                such services by such entities. A telecommunications 
                carrier providing service under this paragraph shall--
                          ``(i) have an amount equal to the amount of 
                      the discount treated as an offset to its 
                      obligation to contribute to the mechanisms to 
                      preserve and advance universal service, or
                          ``(ii) notwithstanding the provisions of 
                      subsection (e) of this section, receive 
                      reimbursement utilizing the support mechanisms to 
                      preserve and advance universal service.
            ``(2) Advanced services.--The Commission shall establish 
        competitively neutral rules--
                    ``(A) to enhance, to the extent technically feasible 
                and economically reasonable, access to advanced 
                telecommunications and information services for all 
                public and nonprofit elementary and secondary school 
                classrooms, health care providers, and libraries; and
                    ``(B) to define the circumstances under which a 
                telecommunications carrier may be required to connect 
                its network to such public institutional 
                telecommunications users.
            ``(3) Terms and conditions.--Telecommunications services and 
        network capacity provided to a public institutional 
        telecommunications user under this subsection may not be sold, 
        resold, or otherwise transferred by such user in consideration 
        for money or any other thing of value.
            ``(4) Eligibility of users.--No entity listed in this 
        subsection shall be entitled to preferential rates or treatment 
        as required by this subsection, if such entity operates as a 
        for-profit business, is a school described in paragraph (5)(A) 
        with an endowment of more than $50,000,000, or is a library not 

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