110 STAT. 68 PUBLIC LAW 104-104—FEB. 8, 1996 "(2) CHARGES FOR TRANSPORT AND TERMINATION OF TRAF- FIC. — "(A) IN GENERAL. —For the purposes of compliance by an incumbent local exchange carrier with section 251(b)(5), a State commission shall not consider the terms and conditions for reciprocal compensation to be just and reasonable unless— "(i) such terms and conditions provide for the mutual and reciprocal recovery by each carrier of costs associated with the transport and termination on each carrier's network facilities of calls that originate on the network facilities of the other carrier; and "(ii) such terms and conditions determine such costs on the basis of a reasonable approximation of the additional costs of terminating such calls. "(B) RULES OF CONSTRUCTION.—T his paragraph shall not be construed— "(i) to preclude arrangements that afford the mutual recovery of costs through the offsetting of reciprocal obligations, including arrangements that waive mutual recovery (such as bill-and-keep arrangements); or "(ii) to authorize the Commission or any State commission to engage in any rate regulation proceeding to establish with particularity the additional costs of transporting or terminating calls, or to require carriers to maintain records with respect to the additional costs of such calls. "(3) WHOLESALE PRICES FOR TELECOMMUNICATIONS SERV- ICES.—For the purposes of section 251(c)(4), a State commission shall determine wholesale rates on the basis of retail rates charged to subscribers for the telecommunications service requested, excluding the portion thereof attributable to any marketing, billing, collection, and other costs that will be avoided by the local exchange carrier. "(e) APPROVAL BY STATE COMMISSION.— "(1) APPROVAL REQUIRED.— Any interconnection agreement adopted by negotiation or arbitration shall be submitted for approval to the State commission. A State commission to which an agreement is submitted shall approve or reject the agreement, with written findings as to any deficiencies. "(2) GROUNDS FOR REJECTION.— The State commission may only reject— "(A) an agreement (or any portion thereof) adopted by negotiation under subsection (a) if it finds that— "(i) the agreement (or portion thereof) discriminates against a telecommunications carrier not a party to the agreement; or "(ii) the implementation of such agreement or portion is not consistent with the public interest, convenience, and necessity; or "(B) an agreement (or any portion thereof) adopted by arbitration under subsection (b) if it finds that the agreement does not meet the requirements of section 251, including the regulations prescribed by the Commission pursuant to section 251, or the standards set forth in subsection (d) of this section.
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