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<br />98326
<br />CONGRESSIONAL RECORD — SENATE
<br />or other interests, including broadcast,
<br />cable, newspaper, programing service, or
<br />other printed or electronic information serv-
<br />ice.
<br />"(bXl) Notwithstanding the provisions of
<br />subsection (a) of this section, for the pur-
<br />pose of ensuring fair and equitable treat-
<br />ment of United States cable enterprises
<br />seeking access to markets in a foreign coun-
<br />try, the Commission shall have authority to
<br />conduct inquiries applicable to foreign per-
<br />sons from that country seeking access to do-
<br />mestic markets in the United States in con-
<br />nection with the construction, ownership
<br />and operation of cable enterprises as to
<br />whether such United States cable enter-
<br />prises are permitted fair and equitable
<br />access to such foreign markets.
<br />"(2) The Commission shall submit any in-
<br />formation obtained through such inquiries
<br />to the United States Trade Representative
<br />to assist the Trade Representative in his
<br />identification and analysis of acts, policies
<br />or practices fghich constitute significant
<br />barriers to, or distortions of, United States
<br />exports of services.
<br />"(3) For purposes of this subsection, the
<br />term 'foreign persons' includes any individu-
<br />al who is not a citizen of the United States,
<br />any subsidiary (although established under
<br />the laws of the United States or any State
<br />thereof) of a corporation or other business
<br />entity which was established under the laws
<br />of a foreign country, any corporation or
<br />other business entity established under the
<br />laws of a foreign country, or any corpora-
<br />tion or other business entity- established
<br />under the laws of the United States or any
<br />State thereof, if 25 percent or more of the
<br />capital stock or equivalent ownership is
<br />owned or controlled by an individual who is
<br />not a citizen of the United States or'.by a
<br />corporation or other business entity estab-
<br />lished under the laws of a foreign country,
<br />or any subsidiary of a corporation or other
<br />business entity established under the laws
<br />of a foreign country,
<br />" lcXD Notwithstanding the provisions of
<br />subsection (a) of this section, a State or po-
<br />litical subdivision or agency thereof, or fran-
<br />chising authority, may not acquire an own-
<br />ership interest in any cable system pursuant
<br />to a buy-back provisions of a franchise or re-
<br />quire a sale of a cable system to any other
<br />person pursuant to a franchise, upon the ex-
<br />piration of the franchise, unless such State,
<br />subdivision, agency, authority, or person ac-
<br />quires such ownership or interest at not less
<br />than fair market value based upon the on-
<br />going business value of the system. In the
<br />event that the cable operator and a State or
<br />Political subdivision or agency thereof, or
<br />franchising authority, are unable to agree
<br />upon any such fair market value, then the
<br />matter of determining fair market value
<br />shall be submitted to binding arbitration.
<br />For purposes of arbitration, each of the af-
<br />fected parties shall select one arbitrator and
<br />the two arbitrators so selected shall choose
<br />a third arbitrator.
<br />"(2) Notwithstanding the provisions of
<br />paragraph (1) of this subsection, in the
<br />event of termination for cause of a fran-
<br />chise due to a materill breach, a State or
<br />political subdivision or agency thereof, or
<br />franchising authority, may acquire an own-
<br />ership interes' in such cable system but
<br />only upon written notice of the breach, rea-
<br />sonable opportunity to remedy the breach,
<br />and other due process. Any such termina-
<br />tion shall be subject to de novo review by a
<br />court of competent jurlsdictiwi.
<br />"(d) In any case in which any such State,
<br />subdivision, agency. or authority has or ac-
<br />quires any such ownership or interest, such
<br />State, subdivision, agency, or authority
<br />shall, in no case, own or control, directly or
<br />indirectly, the content of any of the pro-
<br />graming on such cable system, except for
<br />programing on government access channels,
<br />unless such State or political subdivision or
<br />agency thereof, or franchising authority, es-
<br />tablishes an independent board or a sepa-
<br />rate management company. Such board or
<br />company shall not include any State or local
<br />office holder.
<br />"ACCESS CHANNELS
<br />"SEC. 606. (a) A cable system operator may
<br />be required, as part of the franchise request
<br />for proposals, to dedicate or set aside chan-
<br />nels for public, educational or governmental
<br />users, and the cable system operator may
<br />offer in a franchise to dedicate or set aside
<br />channels for other channel users.
<br />"(b) The franchising authority and the
<br />cable operator may establish rules and pro-
<br />cedures for the use of the channels set aside
<br />or dedicated pursuant to this section.
<br />. "(c) Until such time as there is demand
<br />for each channel full time for its designated
<br />use, public, educational, governmental, or
<br />other channel programing may be combined
<br />by the cable system operator on one or more
<br />channels, and to the extent time is available
<br />on such channels, they may be used by the
<br />cable system operator for the provision of
<br />other services.
<br />REGULATION OF RATES AND SERVICES
<br />"SEC. 607. (a) Nothing In this title shall be
<br />construed as prhibiting any State or politi-
<br />cal subdivision or agency thereof, or fran-
<br />chising authority, from establishing, fixing,
<br />or otherwise restricting the rates charged
<br />by cable operators—
<br />"M to subscribers for the receipt of basic
<br />service.
<br />"(2) to subscribers for equipment neces-
<br />sary for the receipt of basic service, and
<br />"(3) to subscribers for equipment which
<br />facilitates the reception of basic service by
<br />hearing impaired individuals.
<br />"(b)(1) Any rate regulated pursuant to
<br />this section may be increased annually at
<br />the discretion of the cable operator by an
<br />amount not to exceed the regional consum-
<br />er price index for the preceeding 12 months,
<br />upon 30 days prior notice. The ability to
<br />affect such increases shall be cumulative for
<br />not more than 3 successive years.
<br />"(2) Nothwithstanding the -provisions of
<br />paragraph (1) of this subsection, nothing in
<br />this title shall be construed as prohibiting
<br />any State or political subdivision or agency
<br />thereof, or franchising authority, from pro-
<br />viding that such automatic increases shall
<br />not apply to a franchise which is in exist-
<br />ence on the date of the enactment of the
<br />Cable Telecommunications Act of 1983 and
<br />which provides for a fixed rate for basic
<br />service over a specified period.
<br />"(c) Notwithstanding the provisions of
<br />subsections (a) and '(b) of this section, a
<br />cable system operator may automatically in-
<br />crease basic service rates which exceed the
<br />basic rates allowed pursuant to subsection
<br />(a) or (b) of this section if—
<br />"(1) such operator has requested the in-
<br />crease in rates; and
<br />"(2) the request is not acted on within 90
<br />days following the date of its receipt.
<br />"(d)(1) Notwithstanding the provisions of
<br />subsection (a) of this section, the authority
<br />to establish, fix, or otherwise restrict the
<br />rates charged to -subscribers for the provi-
<br />sion of basic services set forth in subsection
<br />(a) of this section, except to the extent oth-
<br />erwise provided in paragraph (2) of this sub-
<br />section, shall not be applicable in any case
<br />where the cable system is located within the
<br />grade B contour of not less than four televi-
<br />sion signals of which there shall be one af-
<br />filiate of each of the three major television
<br />networks.
<br />"(2) The provisions of paragraph (1) o1
<br />this subsection shall not be applicable in the
<br />June 14, 198,E
<br />case of any franchise in existence prior to
<br />the date of the enactment of the Cable
<br />Telecommunications Act of 1983. if the
<br />rates charged to subscribers for the provi-
<br />sion of basic services are subject to regula-
<br />tion or are restricted by any State or politi-
<br />cal subdivision or agency thereof, or any
<br />franchising authority. The provisions of
<br />this paragraph relating to existing rate reg-
<br />ulation of basic service shall be applicable
<br />for a period of 5 years following the date of
<br />the enactment of such Act, or for a period
<br />equal to one-half of the period of the re-
<br />maining term of such franchise, as of the
<br />date of the enactment of such Act, which-
<br />ever is greater. The provisions of paragraph
<br />(1) shall be applicable to any renewal or
<br />other extension of -any such franchise.
<br />"(3) The provisions of paragraph (1) of
<br />this subsection shall not be applicable
<br />where the cable system is subscribed to by
<br />at least 80 percent of the residences to
<br />which cable service is available, unless the
<br />cable operator demonstrates that 90 percent
<br />of the time, adequate on -site reception of
<br />the four television signals is available to
<br />more than 50 percent of the households to
<br />which cable service is available. Such a de-
<br />termination shall be made by the Commis-
<br />sion. Failure by the Commissioli to "make 'a
<br />determination within 180 days after the
<br />filing of an application by the cable opera-
<br />tor shall be deemed to be a determination
<br />that such satisfactoryreception is available.
<br />"(e) No executive agency of the United
<br />States, including the Commission, and no
<br />State or political subdivision or agency
<br />thereof, or franchising authority, shall have
<br />authority to regulate or restrict the rates
<br />for reconnection, additional sets to the same
<br />subscriber, or sales of equipment.
<br />"(f) No executive agency of the United
<br />States, including the Commission, and no
<br />State or political subdivision or agency
<br />thereof, or franchising authority, shall have
<br />authority to regulate or restrict the provi-
<br />sion of or nature of cable services offered
<br />over a cable system except as provided in
<br />section 613 of this Act.
<br />"(g)(1) No, executive agency of the United
<br />States, including the Commission, and no
<br />State or political subdivision or agency
<br />thereof, or franchising authority, shall have
<br />authority to regulate or restrict the provi-
<br />sion of or nature of telecommunications
<br />services offered over a cable system, except
<br />with respect to the provision of basic tele-
<br />phone service, intrastate telecommunica-
<br />tions services, and except as provided in sec-
<br />tion 613 of this Act.
<br />"(2)(A) Subject to the provisions of sub-
<br />paragraph (B), a State may require only the
<br />filing of informational tariffs for intrastate
<br />telecommunications services that would be
<br />subject to regulation by the Commission or
<br />any State if offered by a common carrier
<br />subject, in whole or in part, to title II of this
<br />Act, which are offered over a cable. system.
<br />Such informational tariffs shall specify only
<br />the rates, terms, and conditions for the pro-
<br />vision of service and shall take effect on the
<br />date specified therein.
<br />"(B) Subparagraph (A) shall not apply to
<br />any private telecommunications service
<br />which is a discrete service dedicated to a
<br />single customer and operated by such cus-
<br />tomer.
<br />"(3) A State shall deregulate the provision
<br />of intrastate telecommunications services if
<br />it finds that such services are subject to ef-
<br />fective competition.
<br />"(4) For purposes of this subsection, an in-
<br />trastate telecommunications service shall be
<br />considered to be subject to effective compe-
<br />tition in a particular geographic area or
<br />market if there are reasonably available.sl-
<br />ternatives. In determining whether there
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