DINF Web Posted on December 16, 1997
Compiled and posted courtesy of Blumenfeld & Cohen - Technology Law Group
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TITLE VII--MISCELLANEOUS PROVISIONS
(a) Prevention of Unfair Billing Practices:
(1) In general: Section 228(c) (47 U.S.C. 228(c)) is amended--
(A) by striking out subparagraph (C) of paragraph (7) and inserting in lieu thereof the following:
'(C) the calling party being charged for information conveyed during the call unless--
'(i) the calling party has a written agreement (including an agreement transmitted through electronic medium) that meets the requirements of paragraph (8); or
'(ii) the calling party is charged for the information in accordance with paragraph (9); or';
(B)(i) by striking 'or' at the end of subparagraph (C) of such paragraph;
(ii) by striking the period at the end of subparagraph (D) of such paragraph and inserting a semicolon and 'or'; and
(iii) by adding at the end thereof the following:
'(E) the calling party being assessed, by virtue of being asked to connect or otherwise transfer to a pay-per-call service, a charge for the call.'; and
(C) by adding at the end the following new paragraphs:
'(8) Subscription agreements for billing for information provided via toll-free calls:
'(A) In general: For purposes of paragraph (7)(C)(i), a written subscription does not meet the requirements of this paragraph unless the agreement specifies the material terms and conditions under which the information is offered and includes--
'(i) the rate at which charges are assessed for the information;
'(ii) the information provider's name;
'(iii) the information provider's business address;
'(iv) the information provider's regular business telephone number;
'(v) the information provider's agreement to notify the subscriber at least one billing cycle in advance of all future changes in the rates charged for the information; and
'(vi) the subscriber's choice of payment method, which may be by direct remit, debit, prepaid account, phone bill, or credit or calling card.
'(B) Billing arrangements: If a subscriber elects, pursuant to subparagraph (A)(vi), to pay by means of a phone bill--
'(i) the agreement shall clearly explain that the subscriber will be assessed for calls made to the information service from the subscriber's phone line;
'(ii) the phone bill shall include, in prominent type, the following disclaimer:
'Common carriers may not disconnect local or long distance telephone service for failure to pay disputed charges for information services.'; and
'(iii) the phone bill shall clearly list the 800 number dialed.
'(C) Use of pins to prevent unauthorized use: A written agreement does not meet the requirements of this paragraph unless it--
'(i) includes a unique personal identification number or other subscriber-specific identifier and requires a subscriber to use this number or identifier to obtain access to the information provided and includes instructions on its use; and
'(ii) assures that any charges for services accessed by use of the subscriber's personal identification number or subscriber-specific identifier be assessed to subscriber's source of payment elected pursuant to subparagraph (A)(vi).
'(D) Exceptions: Notwithstanding paragraph (7)(C), a written agreement that meets the requirements of this paragraph is not required--
'(i) for calls utilizing telecommunications devices for the deaf;
'(ii) for directory services provided by a common carrier or its affiliate or by a local exchange carrier or its affiliate; or
'(iii) for any purchase of goods or of services that are not information services.
'(E) Termination of service: On receipt by a common carrier of a complaint by any person that an information provider is in violation of the provisions of this section, a carrier shall--
'(i) promptly investigate the complaint; and
'(ii) if the carrier reasonably determines that the complaint is valid, it may terminate the provision of service to an information provider unless the provider supplies evidence of a written agreement that meets the requirements of this section.
'(F) Treatment of remedies: The remedies provided in this paragraph are in addition to any other remedies that are available under title V of this Act.
'(9) Charges by credit, prepaid, debit, charge, or calling card in absence of agreement: For purposes of paragraph (7)(C)(ii), a calling party is not charged in accordance with this paragraph unless the calling party is charged by means of a credit, prepaid, debit, charge, or calling card and the information service provider includes in response to each call an introductory disclosure message that--
'(A) clearly states that there is a charge for the call;
'(B) clearly states the service's total cost per minute and any other fees for the service or for any service to which the caller may be transferred;
'(C) explains that the charges must be billed on either a credit, prepaid, debit, charge, or calling card;
'(D) asks the caller for the card number;
'(E) clearly states that charges for the call begin at the end of the introductory message; and
'(F) clearly states that the caller can hang up at or before the end of the introductory message without incurring any charge whatsoever.
'(10) Bypass of introductory disclosure message: The requirements of paragraph (9) shall not apply to calls from repeat callers using a bypass mechanism to avoid listening to the introductory message, provided that information providers shall disable such a bypass mechanism after the institution of any price increase and for a period of time determined to be sufficient by the Federal Trade Commission to give callers adequate and sufficient notice of a price increase.
'(11) Definition of calling card: As used in this subsection, the term 'calling card' means an identifying number or code unique to the individual, that is issued to the individual by a common carrier and enables the individual to be charged by means of a phone bill for charges incurred independent of where the call originates.'.
(2) Regulations: The Federal Communications Commission shall revise its regulations to comply with the amendment made by paragraph (1) not later than 180 days after the date of enactment of this Act.
(3) Effective date: The amendments made by paragraph (1) shall take effect on the date of enactment of this Act.
(b) Clarification of 'Pay-Per-Call Services':
(1) Telephone disclosure and dispute resolution act: Section 204(1) of the Telephone Disclosure and Dispute Resolution Act (15 U.S.C. 5714(1)) is amended to read as follows:
'(1) The term 'pay-per-call services' has the meaning provided in section 228(i) of the Communications Act of 1934, except that the Commission by rule may, notwithstanding subparagraphs (B) and (C) of section 228(i)(1) of such Act, extend such definition to other similar services providing audio information or audio entertainment if the Commission determines that such services are susceptible to the unfair and deceptive practices that are prohibited by the rules prescribed pursuant to section 201(a).'.
(2) Communications act: Section 228(i)(2) (47 U.S.C. 228(i)(2)) is amended by striking 'or any service the charge for which is tariffed,'.
SEC. 702. PRIVACY OF CUSTOMER INFORMATION.
Title II is amended by inserting after section 221 (47 U.S.C. 221) the following new section:
'SEC. 222. PRIVACY OF CUSTOMER INFORMATION.
'(a) In General: Every telecommunications carrier has a duty to protect the confidentiality of proprietary information of, and relating to, other telecommunication carriers, equipment manufacturers, and customers, including telecommunication carriers reselling telecommunications services provided by a telecommunications carrier.
'(b) Confidentiality of Carrier Information: A telecommunications carrier that receives or obtains proprietary information from another carrier for purposes of providing any telecommunications service shall use such information only for such purpose, and shall not use such information for its own marketing efforts.
'(c) Confidentiality of Customer Proprietary Network Information:
'(1) Privacy requirements for telecommunications carriers: Except as required by law or with the approval of the customer, a telecommunications carrier that receives or obtains customer proprietary network information by virtue of its provision of a telecommunications service shall only use, disclose, or permit access to individually identifiable customer proprietary network information in its provision of (A) the telecommunications service from which such information is derived, or (B) services necessary to, or used in, the provision of such telecommunications service, including the publishing of directories.
'(2) Disclosure on request by customers: A telecommunications carrier shall disclose customer proprietary network information, upon affirmative written request by the customer, to any person designated by the customer.
'(3) Aggregate customer information: A telecommunications carrier that receives or obtains customer proprietary network information by virtue of its provision of a telecommunications service may use, disclose, or permit access to aggregate customer information other than for the purposes described in paragraph (1). A local exchange carrier may use, disclose, or permit access to aggregate customer information other than for purposes described in paragraph (1) only if it provides such aggregate information to other carriers or persons on reasonable and nondiscriminatory terms and conditions upon reasonable request therefor.
'(d) Exceptions: Nothing in this section prohibits a telecommunications carrier from using, disclosing, or permitting access to customer proprietary network information obtained from its customers, either directly or indirectly through its agents--
'(1) to initiate, render, bill, and collect for telecommunications services;
'(2) to protect the rights or property of the carrier, or to protect users of those services and other carriers from fraudulent, abusive, or unlawful use of, or subscription to, such services; or
'(3) to provide any inbound telemarketing, referral, or administrative services to the customer for the duration of the call, if such call was initiated by the customer and the customer approves of the use of such information to provide such service.
'(e) Subscriber List Information: Notwithstanding subsections (b), (c), and (d), a telecommunications carrier that provides telephone exchange service shall provide subscriber list information gathered in its capacity as a provider of such service on a timely and unbundled basis, under nondiscriminatory and reasonable rates, terms, and conditions, to any person upon request for the purpose of publishing directories in any format.
'(f) Definitions: As used in this section:
'(1) Customer proprietary network information: The term 'customer proprietary network information' means--
'(A) information that relates to the quantity, technical configuration, type, destination, and amount of use of a telecommunications service subscribed to by any customer of a telecommunications carrier, and that is made available to the carrier by the customer solely by virtue of the carrier-customer relationship; and
'(B) information contained in the bills pertaining to telephone exchange service or telephone toll service received by a customer of a carrier;
except that such term does not include subscriber list information.
'(2) Aggregate information: The term 'aggregate customer information' means collective data that relates to a group or category of services or customers, from which individual customer identities and characteristics have been removed.
'(3) Subscriber list information: The term 'subscriber list information' means any information--
'(A) identifying the listed names of subscribers of a carrier and such subscribers' telephone numbers, addresses, or primary advertising classifications (as such classifications are assigned at the time of the establishment of such service), or any combination of such listed names, numbers, addresses, or classifications; and
'(B) that the carrier or an affiliate has published, caused to be published, or accepted for publication in any directory format.'.
Section 224 (47 U.S.C. 224) is amended--
(1) in subsection (a)(1), by striking the first sentence and inserting the following: 'The term 'utility' means any person who is a local exchange carrier or an electric, gas, water, steam, or other public utility, and who owns or controls poles, ducts, conduits, or rights-of-way used, in whole or in part, for any wire communications.';
(2) in subsection (a)(4), by inserting after 'system' the following: 'or provider of telecommunications service';
(3) by inserting after subsection (a)(4) the following:
'(5) For purposes of this section, the term 'telecommunications carrier' (as defined in section 3 of this Act) does not include any incumbent local exchange carrier as defined in section 251(h).';
(4) by inserting after 'conditions' in subsection (c)(1) a comma and the following: 'or access to poles, ducts, conduits, and rights-of-way as provided in subsection (f),':
(5) in subsection (c)(2)(B), by striking 'cable television services' and inserting 'the services offered via such attachments';
(6) by inserting after subsection (d)(2) the following:
'(3) This subsection shall apply to the rate for any pole attachment used by a cable television system solely to provide cable service. Until the effective date of the regulations required under subsection (e), this subsection shall also apply to the rate for any pole attachment used by a cable system or any telecommunications carrier (to the extent such carrier is not a party to a pole attachment agreement) to provide any telecommunications service.'; and
(7) by adding at the end thereof the following:
'(e)(1) The Commission shall, no later than 2 years after the date of enactment of the Telecommunications Act of 1996, prescribe regulations in accordance with this subsection to govern the charges for pole attachments used by telecommunications carriers to provide telecommunications services, when the parties fail to resolve a dispute over such charges.
Such regulations shall ensure that a utility charges just, reasonable, and nondiscriminatory rates for pole attachments.
'(2) A utility shall apportion the cost of providing space on a pole, duct, conduit, or right-of-way other than the usable space among entities so that such apportionment equals two-thirds of the costs of providing space other than the usable space that would be allocated to such entity under an equal apportionment of such costs among all attaching entities.
'(3) A utility shall apportion the cost of providing usable space among all entities according to the percentage of usable space required for each entity.
'(4) The regulations required under paragraph (1) shall become effective 5 years after the date of enactment of the Telecommunications Act of 1996. Any increase in the rates for pole attachments that result from the adoption of the regulations required by this subsection shall be phased in equal annual increments over a period of 5 years beginning on the effective date of such regulations.
'(f)(1) A utility shall provide a cable television system or any telecommunications carrier with nondiscriminatory access to any pole, duct, conduit, or right-of-way owned or controlled by it.
'(2) Notwithstanding paragraph (1), a utility providing electric service may deny a cable television system or any telecommunications carrier access to its poles, ducts, conduits, or rights-of-way, on a non-discriminatory basis where there is insufficient capacity and for reasons of safety, reliability and generally applicable engineering purposes.
'(g) A utility that engages in the provision of telecommunications services or cable services shall impute to its costs of providing such services (and charge any affiliate, subsidiary, or associate company engaged in the provision of such services) an equal amount to the pole attachment rate for which such company would be liable under this section.
'(h) Whenever the owner of a pole, duct, conduit, or right-of-way intends to modify or alter such pole, duct, conduit, or right-of-way, the owner shall provide written notification of such action to any entity that has obtained an attachment to such conduit or right-of-way so that such entity may have a reasonable opportunity to add to or modify its existing attachment. Any entity that adds to or modifies its existing attachment after receiving such notification shall bear a proportionate share of the costs incurred by the owner in making such pole, duct, conduit, or right-of-way accessible.
'(i) An entity that obtains an attachment to a pole, conduit, or right-of-way shall not be required to bear any of the costs of rearranging or replacing its attachment, if such rearrangement or replacement is required as a result of an additional attachment or the modification of an existing attachment sought by any other entity (including the owner of such pole, duct, conduit, or right-of-way).'.
SEC. 704. FACILITIES SITING; RADIO FREQUENCY EMISSION STANDARDS.
(a) National Wireless Telecommunications Siting Policy: Section 332(c) (47 U.S.C. 332(c)) is amended by adding at the end the following new paragraph:
'(7) Preservation of local zoning authority:
'(A) General authority: Except as provided in this paragraph, nothing in this Act shall limit or affect the authority of a State or local government or instrumentality thereof over decisions regarding the placement, construction, and modification of personal wireless service facilities.
'(B) Limitations:
'(i) The regulation of the placement, construction, and modification of personal wireless service facilities by any State or local government or instrumentality thereof--
'(I) shall not unreasonably discriminate among providers of functionally equivalent services; and
'(II) shall not prohibit or have the effect of prohibiting the provision of personal wireless services.
'(ii) A State or local government or instrumentality thereof shall act on any request for authorization to place, construct, or modify personal wireless service facilities within a reasonable period of time after the request is duly filed with such government or instrumentality, taking into account the nature and scope of such request.
'(iii) Any decision by a State or local government or instrumentality thereof to deny a request to place, construct, or modify personal wireless service facilities shall be in writing and supported by substantial evidence contained in a written record.
'(iv) No State or local government or instrumentality thereof may regulate the placement, construction, and modification of personal wireless service facilities on the basis of the environmental effects of radio frequency emissions to the extent that such facilities comply with the Commission's regulations concerning such emissions.
'(v) Any person adversely affected by any final action or failure to act by a State or local government or any instrumentality thereof that is inconsistent with this subparagraph may, within 30 days after such action or failure to act, commence an action in any court of competent jurisdiction. The court shall hear and decide such action on an expedited basis. Any person adversely affected by an act or failure to act by a State or local government or any instrumentality thereof that is inconsistent with clause (iv) may petition the Commission for relief.
'(C) Definitions: For purposes of this paragraph--
'(i) the term 'personal wireless services' means commercial mobile services, unlicensed wireless services, and common carrier wireless exchange access services;
'(ii) the term 'personal wireless service facilities' means facilities for the provision of personal wireless services; and
'(iii) the term 'unlicensed wireless service' means the offering of telecommunications services using duly authorized devices which do not require individual licenses, but does not mean the provision of direct-to-home satellite services (as defined in section 303(v)).'.
(b) Radio Frequency Emissions: Within 180 days after the enactment of this Act, the Commission shall complete action in ET Docket 93-62 to prescribe and make effective rules regarding the environmental effects of radio frequency emissions.
(c) Availability of Property: Within 180 days of the enactment of this Act, the President or his designee shall prescribe procedures by which Federal departments and agencies may make available on a fair, reasonable, and nondiscriminatory basis, property, rights-of-way, and easements under their control for the placement of new telecommunications services that are dependent, in whole or in part, upon the utilization of Federal spectrum rights for the transmission or reception of such services. These procedures may establish a presumption that requests for the use of property, rights-of-way, and easements by duly authorized providers should be granted absent unavoidable direct conflict with the department or agency's mission, or the current or planned use of the property, rights-of-way, and easements in question. Reasonable fees may be charged to providers of such telecommunications services for use of property, rights-of-way, and easements. The Commission shall provide technical support to States to encourage them to make property, rights-of-way, and easements under their jurisdiction available for such purposes.
SEC. 705. MOBILE SERVICES DIRECT ACCESS TO LONG DISTANCE CARRIERS.
Section 332(c) (47 U.S.C. 332(c)) is amended by adding at the end the following new paragraph:
'(8) Mobile services access: A person engaged in the provision of commercial mobile services, insofar as such person is so engaged, shall not be required to provide equal access to common carriers for the provision of telephone toll services. If the Commission determines that subscribers to such services are denied access to the provider of telephone toll services of the subscribers' choice, and that such denial is contrary to the public interest, convenience, and necessity, then the Commission shall prescribe regulations to afford subscribers unblocked access to the provider of telephone toll services of the subscribers' choice through the use of a carrier identification code assigned to such provider or other mechanism. The requirements for unblocking shall not apply to mobile satellite services unless the Commission finds it to be in the public interest to apply such requirements to such services.'.
SEC. 706. ADVANCED TELECOMMUNICATIONS INCENTIVES.
(a) In General: The Commission and each State commission with regulatory jurisdiction over telecommunications services shall encourage the deployment on a reasonable and timely basis of advanced telecommunications capability to all Americans (including, in particular, elementary and secondary schools and classrooms) by utilizing, in a manner consistent with the public interest, convenience, and necessity, price cap regulation, regulatory forbearance, measures that promote competition in the local telecommunications market, or other regulating methods that remove barriers to infrastructure investment.
(b) Inquiry: The Commission shall, within 30 months after the date of enactment of this Act, and regularly thereafter, initiate a notice of inquiry concerning the availability of advanced telecommunications capability to all Americans (including, in particular, elementary and secondary schools and classrooms) and shall complete the inquiry within 180 days after its initiation. In the inquiry, the Commission shall determine whether advanced telecommunications capability is being deployed to all Americans in a reasonable and timely fashion. If the Commission's determination is negative, it shall take immediate action to accelerate deployment of such capability by removing barriers to infrastructure investment and by promoting competition in the telecommunications market.
(c) Definitions: For purposes of this subsection:
(1) Advanced telecommunications capability: The term 'advanced telecommunications capability' is defined, without regard to any transmission media or technology, as high-speed, switched, broadband telecommunications capability that enables users to originate and receive high-quality voice, data, graphics, and video telecommunications using any technology.
(2) Elementary and secondary schools: The term 'elementary and secondary schools' means elementary and secondary schools, as defined in paragraphs (14) and (25), respectively, of section 14101 of the Elementary and Secondary Education Act of 1965 (20 U.S.C. 8801).
SEC. 707. TELECOMMUNICATIONS DEVELOPMENT FUND.
(a) Deposit and Use of Auction Escrow Accounts: Section 309(j)(8) (47 U.S.C. 309(j)(8)) is amended by adding at the end the following new subparagraph:
'(C) Deposit and use of auction escrow accounts: Any deposits the Commission may require for the qualification of any person to bid in a system of competitive bidding pursuant to this subsection shall be deposited in an interest bearing account at a financial institution designated for purposes of this subsection by the Commission (after consultation with the Secretary of the Treasury). Within 45 days following the conclusion of the competitive bidding--
'(i) the deposits of successful bidders shall be paid to the Treasury;
'(ii) the deposits of unsuccessful bidders shall be returned to such bidders; and
'(iii) the interest accrued to the account shall be transferred to the Telecommunications Development Fund established pursuant to section 714 of this Act.'.
(b) Establishment and Operation of Fund: Title VII is amended by inserting after section 713 (as added by section 305) the following new section:
'SEC. 714. TELECOMMUNICATIONS DEVELOPMENT FUND.
'(a) Purpose of Section: It is the purpose of this section--
'(1) to promote access to capital for small businesses in order to enhance competition in the telecommunications industry;
'(2) to stimulate new technology development, and promote employment and training; and
'(3) to support universal service and promote delivery of telecommunications services to underserved rural and urban areas.
'(b) Establishment of Fund: There is hereby established a body corporate to be known as the Telecommunications Development Fund, which shall have succession until dissolved.
The Fund shall maintain its principal office in the District of Columbia and shall be deemed, for purposes of venue and jurisdiction in civil actions, to be a resident and citizen thereof.
'(c) Board of Directors:
'(1) Composition of board; chairman: The Fund shall have a Board of Directors which shall consist of 7 persons appointed by the Chairman of the Commission. Four of such directors shall be representative of the private sector and three of such directors shall be representative of the Commission, the Small Business Administration, and the Department of the Treasury, respectively. The Chairman of the Commission shall appoint one of the representatives of the private sector to serve as chairman of the Fund within 30 days after the date of enactment of this section, in order to facilitate rapid creation and implementation of the Fund. The directors shall include members with experience in a number of the following areas: finance, investment banking, government banking, communications law and administrative practice, and public policy.
'(2) Terms of appointed and elected members: The directors shall be eligible to serve for terms of 5 years, except of the initial members, as designated at the time of their appointment--
'(A) 1 shall be eligible to service for a term of 1 year;
'(B) 1 shall be eligible to service for a term of 2 years;
'(C) 1 shall be eligible to service for a term of 3 years;
'(D) 2 shall be eligible to service for a term of 4 years; and
'(E) 2 shall be eligible to service for a term of 5 years (1 of whom shall be the Chairman).
Directors may continue to serve until their successors have been appointed and have qualified.
'(3) Meetings and functions of the board: The Board of Directors shall meet at the call of its Chairman, but at least quarterly. The Board shall determine the general policies which shall govern the operations of the Fund. The Chairman of the Board shall, with the approval of the Board, select, appoint, and compensate qualified persons to fill the offices as may be provided for in the bylaws, with such functions, powers, and duties as may be prescribed by the bylaws or by the Board of Directors, and such persons shall be the officers of the Fund and shall discharge all such functions, powers, and duties.
'(d) Accounts of the Fund: The Fund shall maintain its accounts at a financial institution designated for purposes of this section by the Chairman of the Board (after consultation with the Commission and the Secretary of the Treasury). The accounts of the Fund shall consist of--
'(1) interest transferred pursuant to section 309(j)(8)(C) of this Act;
'(2) such sums as may be appropriated to the Commission for advances to the Fund;
'(3) any contributions or donations to the Fund that are accepted by the Fund; and
'(4) any repayment of, or other payment made with respect to, loans, equity, or other extensions of credit made from the Fund.
'(e) Use of the Fund: All moneys deposited into the accounts of the Fund shall be used solely for--
'(1) the making of loans, investments, or other extensions of credits to eligible small businesses in accordance with subsection (f);
'(2) the provision of financial advice to eligible small businesses;
'(3) expenses for the administration and management of the Fund (including salaries, expenses, and the rental or purchase of office space for the fund);
'(4) preparation of research, studies, or financial analyses; and
'(5) other services consistent with the purposes of this section.
'(f) Lending and Credit Operations: Loans or other extensions of credit from the Fund shall be made available in accordance with the requirements of the Federal Credit Reform Act of 1990 (2 U.S.C. 661 et seq.) and any other applicable law to an eligible small business on the basis of--
'(1) the analysis of the business plan of the eligible small business;
'(2) the reasonable availability of collateral to secure the loan or credit extension;
'(3) the extent to which the loan or credit extension promotes the purposes of this section; and
'(4) other lending policies as defined by the Board.
'(g) Return of Advances: Any advances appropriated pursuant to subsection (d)(2) shall be disbursed upon such terms and conditions (including conditions relating to the time or times of repayment) as are specified in any appropriations Act providing such advances.
'(h) General Corporate Powers: The Fund shall have power--
'(1) to sue and be sued, complain and defend, in its corporate name and through its own counsel;
'(2) to adopt, alter, and use the corporate seal, which shall be judicially noticed;
'(3) to adopt, amend, and repeal by its Board of Directors, bylaws, rules, and regulations as may be necessary for the conduct of its business;
'(4) to conduct its business, carry on its operations, and have officers and exercise the power granted by this section in any State without regard to any qualification or similar statute in any State;
'(5) to lease, purchase, or otherwise acquire, own, hold, improve, use, or otherwise deal in and with any property, real, personal, or mixed, or any interest therein, wherever situated, for the purposes of the Fund;
'(6) to accept gifts or donations of services, or of property, real, personal, or mixed, tangible or intangible, in aid of any of the purposes of the Fund;
'(7) to sell, convey, mortgage, pledge, lease, exchange, and otherwise dispose of its property and assets;
'(8) to appoint such officers, attorneys, employees, and agents as may be required, to determine their qualifications, to define their duties, to fix their salaries, require bonds for them, and fix the penalty thereof; and
'(9) to enter into contracts, to execute instruments, to incur liabilities, to make loans and equity investment, and to do all things as are necessary or incidental to the proper management of its affairs and the proper conduct of its business.
'(i) Accounting, Auditing, and Reporting: The accounts of the Fund shall be audited annually. Such audits shall be conducted in accordance with generally accepted auditing standards by independent certified public accountants. A report of each such audit shall be furnished to the Secretary of the Treasury and the Commission. The representatives of the Secretary and the Commission shall have access to all books, accounts, financial records, reports, files, and all other papers, things, or property belonging to or in use by the Fund and necessary to facilitate the audit.
'(j) Report on Audits by Treasury: A report of each such audit for a fiscal year shall be made by the Secretary of the Treasury to the President and to the Congress not later than 6 months following the close of such fiscal year. The report shall set forth the scope of the audit and shall include a statement of assets and liabilities, capital and surplus or deficit; a statement of surplus or deficit analysis; a statement of income and expense; a statement of sources and application of funds; and such comments and information as may be deemed necessary to keep the President and the Congress informed of the operations and financial condition of the Fund, together with such recommendations with respect thereto as the Secretary may deem advisable.
'(k) Definitions: As used in this section:
'(1) Eligible small business: The term 'eligible small business' means business enterprises engaged in the telecommunications industry that have $50,000,000 or less in annual revenues, on average over the past 3 years prior to submitting the application under this section.
'(2) Fund: The term 'Fund' means the Telecommunications Development Fund established pursuant to this section.
'(3) Telecommunications industry: The term 'telecommunications industry' means communications businesses using regulated or unregulated facilities or services and includes broadcasting, telecommunications, cable, computer, data transmission, software, programming, advanced messaging, and electronics businesses.'.
SEC. 708. NATIONAL EDUCATION TECHNOLOGY FUNDING CORPORATION.
(a) Findings; Purpose:
(1) Findings.--The Congress finds as follows:
(A) Corporation.--There has been established in the District of Columbia a private, nonprofit corporation known as the National Education Technology Funding Corporation which is not an agency or independent establishment of the Federal Government.
(B) Board of directors.--The Corporation is governed by a Board of Directors, as prescribed in the Corporation's articles of incorporation, consisting of 15 members, of which--
(i) five members are representative of public agencies representative of schools and public libraries;
(ii) five members are representative of State government, including persons knowledgeable about State finance, technology and education; and
(iii) five members are representative of the private sector, with expertise in network technology, finance and management.
(C) Corporate purposes.--The purposes of the Corporation, as set forth in its articles of incorporation, are--
(i) to leverage resources and stimulate private investment in education technology infrastructure;
(ii) to designate State education technology agencies to receive loans, grants or other forms of assistance from the Corporation;
(iii) to establish criteria for encouraging States to--
(I) create, maintain, utilize and upgrade interactive high capacity networks capable of providing audio, visual and data communications for elementary schools, secondary schools and public libraries;
(II) distribute resources to assure equitable aid to all elementary schools and secondary schools in the State and achieve universal access to network technology; and
(III) upgrade the delivery and development of learning through innovative technology-based instructional tools and applications;
(iv) to provide loans, grants and other forms of assistance to State education technology agencies, with due regard for providing a fair balance among types of school districts and public libraries assisted and the disparate needs of such districts and libraries;
(v) to leverage resources to provide maximum aid to elementary schools, secondary schools and public libraries; and
(vi) to encourage the development of education telecommunications and information technologies through public-private ventures, by serving as a clearinghouse for information on new education technologies, and by providing technical assistance, including assistance to States, if needed, to establish State education technology agencies.
(2) Purpose.--The purpose of this section is to recognize the Corporation as a nonprofit corporation operating under the laws of the District of Columbia, and to provide authority for Federal departments and agencies to provide assistance to the Corporation.
(b) Definitions: For the purpose of this section--
(1) the term 'Corporation' means the National Education Technology Funding Corporation described in subsection (a)(1)(A);
(2) the terms 'elementary school' and 'secondary school' have the same meanings given such terms in section 14101 of the Elementary and Secondary Education Act of 1965; and
(3) the term 'public library' has the same meaning given such term in section 3 of the Library Services and Construction Act.
(c) Assistance for Education Technology Purposes:
(1) Receipt by corporation.--Notwithstanding any other provision of law, in order to carry out the corporate purposes described in subsection (a)(1)(C), the Corporation shall be eligible to receive discretionary grants, contracts, gifts, contributions, or technical assistance from any Federal department or agency, to the extent otherwise permitted by law.
(2) Agreement.--In order to receive any assistance described in paragraph (1) the Corporation shall enter into an agreement with the Federal department or agency providing such assistance, under which the Corporation agrees--
(A) to use such assistance to provide funding and technical assistance only for activities which the Board of Directors of the Corporation determines are consistent with the corporate purposes described in subsection (a)(1)(C);
(B) to review the activities of State education technology agencies and other entities receiving assistance from the Corporation to assure that the corporate purposes described in subsection (a)(1)(C) are carried out;
(C) that no part of the assets of the Corporation shall accrue to the benefit of any member of the Board of Directors of the Corporation, any officer or employee of the Corporation, or any other individual, except as salary or reasonable compensation for services;
(D) that the Board of Directors of the Corporation will adopt policies and procedures to prevent conflicts of interest;
(E) to maintain a Board of Directors of the Corporation consistent with subsection (a)(1)(B);
(F) that the Corporation, and any entity receiving the assistance from the Corporation, are subject to the appropriate oversight procedures of the Congress; and
(G) to comply with--
(i) the audit requirements described in subsection (d); and
(ii) the reporting and testimony requirements described in subsection (e).
(3) Construction.--Nothing in this section shall be construed to establish the Corporation as an agency or independent establishment of the Federal Government, or to establish the members of the Board of Directors of the Corporation, or the officers and employees of the Corporation, as officers or employees of the Federal Government.
(d) Audits:
(1) Audits by independent certified public accountants:
(A) In general.--The Corporation's financial statements shall be audited annually in accordance with generally accepted auditing standards by independent certified public accountants who are certified by a regulatory authority of a State or other political subdivision of the United States. The audits shall be conducted at the place or places where the accounts of the Corporation are normally kept. All books, accounts, financial records, reports, files, and all other papers, things, or property belonging to or in use by the Corporation and necessary to facilitate the audit shall be made available to the person or persons conducting the audits, and full facilities for verifying transactions with the balances or securities held by depositories, fiscal agents, and custodians shall be afforded to such person or persons.
(B) Reporting requirements: The report of each annual audit described in subparagraph (A) shall be included in the annual report required by subsection (e)(1).
(2) Recordkeeping requirements; audit and examination of books:
(A) Recordkeeping requirements: The Corporation shall ensure that each recipient of assistance from the Corporation keeps--
(i) separate accounts with respect to such assistance;
(ii) such records as may be reasonably necessary to fully disclose--
(I) the amount and the disposition by such recipient of the proceeds of such assistance;
(II) the total cost of the project or undertaking in connection with which such assistance is given or used; and
(III) the amount and nature of that portion of the cost of the project or undertaking supplied by other sources; and
(iii) such other records as will facilitate an effective audit.
(B) Audit and examination of books.--The Corporation shall ensure that the Corporation, or any of the Corporation's duly authorized representatives, shall have access for the purpose of audit and examination to any books, documents, papers, and records of any recipient of assistance from the Corporation that are pertinent to such assistance. Representatives of the Comptroller General shall also have such access for such purpose.
(e) Annual Report; Testimony to the Congress:
(1) Annual report.--Not later than April 30 of each year, the Corporation shall publish an annual report for the preceding fiscal year and submit that report to the President and the Congress. The report shall include a comprehensive and detailed evaluation of the Corporation's operations, activities, financial condition, and accomplishments under this section and may include such recommendations as the Corporation deems appropriate.
(2) Testimony before congress.--The members of the Board of Directors, and officers, of the Corporation shall be available to testify before appropriate committees of the Congress with respect to the report described in paragraph (1), the report of any audit made by the Comptroller General pursuant to this section, or any other matter which any such committee may determine appropriate.
SEC. 709. REPORT ON THE USE OF ADVANCED TELECOMMUNICATIONS SERVICES FOR MEDICAL PURPOSES.
The Secretary of Commerce, in consultation with the Secretary of Health and Human Services and other appropriate departments and agencies, shall submit a report to the Committee on Commerce of the House of Representatives and the Committee on Commerce, Science and Transportation of the Senate concerning the activities of the Joint Working Group on Telemedicine, together with any findings reached in the studies and demonstrations on telemedicine funded by the Public Health Service or other Federal agencies. The report shall examine questions related to patient safety, the efficacy and quality of the services provided, and other legal, medical, and economic issues related to the utilization of advanced telecommunications services for medical purposes. The report shall be submitted to the respective Committees by January 31, 1997.
SEC. 710. AUTHORIZATION OF APPROPRIATIONS.
(a) In General: In addition to any other sums authorized by law, there are authorized to be appropriated to the Federal Communications Commission such sums as may be necessary to carry out this Act and the amendments made by this Act.
(b) Effect on Fees: For the purposes of section 9(b)(2) (47 U.S.C. 159(b)(2)), additional amounts appropriated pursuant to subsection (a) shall be construed to be changes in the amounts appropriated for the performance of activities described in section 9(a) of the Communications Act of 1934.
(c) Funding Availability: Section 309(j)(8)(B) (47 U.S.C. 309(j)(8)(B)) is amended by adding at the end the following new sentence: 'Such offsetting collections are authorized to remain available until expended.'.