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z?d104:SN00652:@@@D at thomas.loc.gov Page 4 of 16 Requires all carriers providing interstate telecommunications services to contribute to the preservation and advancement of universal service. Authorizes the FCC to exempt a carrier or 1111 class of carriers if their contribution would be "de minimis." Provides that only designated eligible carriers shall be eligible to receive specific Federal universal service support. Grants States authority to adopt regulations not inconsistent with the FCC's rules. Requires all providers of intrastate telecommunications to contribute to universal service within a State in an equitable and nondiscriminatory manner, as determined by the State. Permits a State to adopt additional requirements with respect to universal service in that State as long as such requirements do not rely upon or burden Federal universal service support mechanisms. Directs: (1) the FCC, within six months, to 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 those charged by each such provider to its subscribers in urban areas; and (2) such rules to require that a provider of interstate interexchange telecommunications services provide such services to its subscribers in each State at rates no higher than those charged to its subscribers in any other State. Requires a carrier, upon receiving a bona fide request, to provide telecommunications services: (1) 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 those charged • for similar services in urban areas in that State; and (2) for educational purposes included in the definition of universal service for elementary and secondary schools and libraries at rates that are less than the amounts charged for similar services to other parties, as necessary to ensure affordable access to and use of such services. Permits a carrier providing such service to have an amount equal to the amount of the discount treated as an offset to its obligation to contribute to the mechanisms, or receive reimbursement utilizing the support mechanisms, to preserve and advance universal service. Directs the FCC to establish competitively neutral rules to: (1) enhance access to advanced telecommunications and information services for all public and nonprofit elementary and secondary school classrooms, health care providers, and libraries; and (2) define the circumstances under which a carrier may be required to connect its network to such public institutional telecommunications users. Specifies that: (1) telecommunications services and network capacity provided to health care providers, schools, and libraries may not be resold or transferred for monetary gain; and (2) for-profit businesses, elementary and secondary schools with endowments of more than $50 million, and libraries that are not eligible to participate in State-based plans for funds under the Library Services and Construction Act are ineligible to receive discounted rates. Requires the FCC and the States to ensure that universal service is available at rates that are just, reasonable, and affordable. • Prohibits a carrier from using services that are not competitive to subsidize those that are subject to competition. Requires the FCC, with respect to interstate services, and the States, for intrastate services, to establish any necessary cost allocation rules, accounting safeguards, http://thomas.loc.gov/cgi-bin/bdquery/z?d104:SNO0652:@@@D 12/11/96