(a) LIMITATIONS- No Bell operating company or any affiliate may engage in the provision
of electronic publishing that is disseminated by means of such Bell operating company's or
any of its affiliates' basic telephone service, except that nothing in this section shall
prohibit a separated affiliate or electronic publishing joint venture operated in
accordance with this section from engaging in the provision of electronic publishing.
(b) SEPARATED AFFILIATE OR ELECTRONIC PUBLISHING JOINT VENTURE REQUIREMENTS- A
separated affiliate or electronic publishing joint venture shall be operated independently
from the Bell operating company. Such separated affiliate or joint venture and the Bell
operating company with which it is affiliated shall--
(1) maintain separate books, records, and accounts and prepare separate financial
statements;
(2) not incur debt in a manner that would permit a creditor of the separated affiliate
or joint venture upon default to have recourse to the assets of the Bell operating
company;
(3) carry out transactions (A) in a manner consistent with such independence, (B)
pursuant to written contracts or tariffs that are filed with the Commission and made
publicly available, and (C) in a manner that is auditable in accordance with generally
accepted auditing standards;
(4) value any assets that are transferred directly or indirectly from the Bell
operating company to a separated affiliate or joint venture, and record any transactions
by which such assets are transferred, in accordance with such regulations as may be
prescribed by the Commission or a State commission to prevent improper cross subsidies;
(5) between a separated affiliate and a Bell operating company--
(A) have no officers, directors, and employees in common after the effective date of
this section; and
(B) own no property in common;
(6) not use for the marketing of any product or service of the separated affiliate or
joint venture, the name, trademarks, or service marks of an existing Bell operating
company except for names, trademarks, or service marks that are owned by the entity that
owns or controls the Bell operating company;
(7) not permit the Bell operating company--
(A) to perform hiring or training of personnel on behalf of a separated affiliate;
(B) to perform the purchasing, installation, or maintenance of equipment on behalf of a
separated affiliate, except for telephone service that it provides under tariff or
contract subject to the provisions of this section; or
(C) to perform research and development on behalf of a separated affiliate;
(8) each have performed annually a compliance review--
(A) that is conducted by an independent entity for the purpose of determining
compliance during the preceding calendar year with any provision of this section; and
(B) the results of which are maintained by the separated affiliate or joint venture and
the Bell operating company for a period of 5 years subject to review by any lawful
authority; and
(9) within 90 days of receiving a review described in paragraph (8), file a report of
any exceptions and corrective action with the Commission and allow any person to inspect
and copy such report subject to reasonable safeguards to protect any proprietary
information contained in such report from being used for purposes other than to enforce or
pursue remedies under this section.
