[Congressional Bills 104th Congress]
[From the U.S. Government Publishing Office]
[H.R. 503 Introduced in House (IH)]

  1st Session
                                H. R. 503

 To require all providers of telecommunications services to establish 
and carry out plans for procurement from businesses owned by minorities 
                   and women, and for other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                            January 13, 1995

   Mrs. Collins of Illinois introduced the following bill; which was 
                 referred to the Committee on Commerce

_______________________________________________________________________

                                 A BILL


 
 To require all providers of telecommunications services to establish 
and carry out plans for procurement from businesses owned by minorities 
                   and women, and for other purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION. 1. SHORT TITLE; FINDINGS.

    (a) Short Title.--This Act may be cited as the ``Telecommunications 
Economic Opportunity Act of 1995''.
    (b) Findings.--The Congress finds the following:
            (1) It is in the public interest for business enterprises 
        owned by minorities and women to participate in procurement 
        contracts of all providers of telecommunications services.
            (2) The opportunity for full participation in our free 
        enterprise system by business enterprises that are owned by 
        minorities and women is essential if this Nation is to attain 
        social and economic equality for those businesses and improve 
        the functioning of the national economy.
            (3) It is in this Nation's interest to expeditiously 
        improve the economically disadvantaged position of business 
        enterprises that are owned by minorities and women.
            (4) The position of these businesses can be improved 
        through the development by the providers of telecommunications 
        services of substantial long-range and annual goals, which are 
        supported by training and technical assistance, for the 
        purchase, to the maximum practicable extent, of technology, 
        equipment, supplies, services, material and construction from 
        minority business enterprises.
            (5) Procurement policies which include participation of 
        business enterprises that are owned by minorities and women 
        also benefit the communication industry and its consumers by 
        encouraging the expansion of the numbers of suppliers for 
        procurement, thereby encouraging competition among suppliers 
        and promoting economic efficiency in the process.

SEC. 2. PURPOSE.

    The purposes of this Act are--
            (1) to encourage and foster greater economic opportunity 
        for business enterprises that are owned by minorities and 
        women;
            (2) to promote competition among suppliers to providers of 
        telecommunications services and their affiliates to enhance 
        economic efficiency in the procurement of telephone corporation 
        contracts and contracts of their State commission-regulated 
        subsidiaries and affiliates;
            (3) to clarify and expand a program for the procurement by 
        State and federally-regulated telephone companies of 
        technology, equipment, supplies, services, materials and 
        construction work from business enterprises that are owned by 
        minorities and women; and
            (4) to ensure that a fair proportion of the total 
        purchases, contracts, and subcontracts for supplies, 
        commodities, technology, property, and services offered by the 
        providers of telecommunications services and their affiliates 
        are awarded to minority and women business enterprises.

SEC. 3. ANNUAL PLAN SUBMISSION.

    (a) Annual Plans Required.--
            (1) In general.--The Commission shall require each provider 
        of telecommunications services to submit annually a detailed 
        and verifiable plan for increasing its procurement from 
        business enterprises that are owned by minorities or women in 
        all categories of procurement in which minorities are under 
        represented.
            (2) Contents of plans.--The annual plans required by 
        paragraph (1) shall include (but not be limited to) short- and 
        long-term progressive goals and timetables, technical 
        assistance, and training and shall, in addition to goals for 
        direct contracting opportunities, include methods for 
        encouraging both prime contractors and grantees to engage 
        business enterprises that are owned by minorities and women in 
        subcontracts in all categories in which minorities are under 
        represented.
            (3) Implementation report.--Each provider of 
        telecommunications services shall furnish an annual report to 
        the Commission regarding the implementation of programs 
        established pursuant to this Act in such form as the Commission 
        shall require, and at such time as the Commission shall 
        annually designate.
            (4) Report to congress.--The Commission shall provide an 
        annual report to Congress, beginning in January 1996, on the 
        progress of activities undertaken by each provider of 
        telecommunications services regarding the implementation of 
        activities pursuant to this Act to develop business enterprises 
        that are owned by minorities or women. The report shall 
        evaluate the accomplishments under this Act and shall recommend 
        a program for enhancing the policy declared in this Act, 
        together with such recommendations for legislation as it deems 
        necessary or desirable to further that policy.
    (b) Regulations and Criteria for Determining Eligibility of 
Minority Business Enterprises for Procurement Contracts.--
            (1) In general.--The Commission shall establish regulations 
        for implementing programs pursuant to this Act that will govern 
        providers of telecommunications services and their affiliates.
            (2) Verifying criteria.--The Commission shall develop and 
        publish regulations setting forth criteria for verifying and 
determining the eligibility of business enterprises that are owned by 
minorities or women for procurement contracts.
            (3) Outreach.--The Commission's regulations shall require 
        each provider of telecommunications services and its affiliates 
        to develop and to implement an outreach program to inform and 
        recruit business enterprises that are owned by minorities or 
        women to apply for procurement contracts under this Act.
            (4) Enforcement.--The Commission shall establish and 
        promulgate such regulations necessary to enforce the provisions 
        of this Act.
    (c) Waiver Authority.--The requirements of this section may be 
waived, in whole or in part, by the Commission with respect to a 
particular contract or subcontract in accordance with guidelines set 
forth in regulations which the Commission shall prescribe when it 
determines that the application of such regulations prove to result in 
undue hardship or unreasonable expense to a provider of 
telecommunications services.

SEC. 4. SANCTIONS AND REMEDIES.

    (a) False Representation of Businesses; Sanctions.--
            (1) In general.--Any person or corporation, through its 
        directors, officers, or agent, which falsely represents the 
        business as a business enterprise that is owned by minorities 
        or women in the procurement or attempt to procure contracts 
        from telephone operating companies and their affiliates 
        pursuant to this article, shall be punished by a fine of not 
        more than $5,000, or by imprisonment for a period not to exceed 
        5 years of its directors, officers, or agents responsible for 
        the false statements, or by both fine and imprisonment.
            (2) Holding companies.--Any provider of telecommunications 
        services which falsely represents its annual report to the 
        Commission or its implementation of its programs pursuant to 
        this section shall be subject to a fine of $100,000 and be 
        subject to a penalty of up to 5 years restriction from 
        participation in lines of business activities provided for in 
        this Act.
    (b) Independent Cause of Action, Remedies, and Attorney Fees.--
            (1) Discrimination prohibited.--No otherwise qualified 
        business enterprise that is owned by minorities or women shall 
        solely, by reason of its racial, ethnic, or gender composition 
        be excluded from the participation in, be denied the benefits 
        of, or be subjected to discrimination in procuring contracts 
        from telephone utilities.
            (2) Civil actions authorized.--Whenever a qualified 
        business enterprise that is owned by minorities or women has 
        reasonable cause to believe that a provider of 
        telecommunications services or its affiliate is engaged in a 
        pattern or practice of resistance to the full compliance of any 
        provision of this Act, the business enterprise may bring a 
        civil action in the appropriate district court of the United 
        States against the provider of telecommunications services or 
        its affiliate requesting such monetary or injunctive relief, or 
        both, as deemed necessary to ensure the full benefits of this 
        Act.
            (3) Attorneys' fees and costs.--In any action or proceeding 
        to enforce or charge of a violation of a provision of this Act, 
        the court, in its discretion, may allow the prevailing party 
        reasonable attorneys' fees and costs.

SEC. 5. DEFINITIONS.

    For the purpose of this Act, the following definitions apply:
            (1) The term ``business enterprise owned by minorities or 
        women'' means--
                    (A) a business enterprise that is at least 51 
                percent owned by a person or persons who are minority 
                persons or women; or
                    (B) in the case of any publicly owned business, at 
                least 51 percent of the stock of which is owned by one 
                or more persons who are minority persons or women, and 
                whose management and daily business operations are 
                controlled by one or more of those persons.
            (2) The term ``minority person'' means persons who are 
        Black Americans, Hispanic Americans, Native Americans, Asian 
        Americans, and Pacific Americans.
            (3) The term ``control'' means exercising the power to make 
        financial and policy decisions.
            (4) The term ``operate'' means the active involvement in 
        the day-to-day management of the business and not merely being 
        officers or directors.
            (5) The term ``Commission'' means the Federal 
        Communications Commission.
            (6) The term ``telecommunications service'' means the 
        offering, on a common carrier basis, of telecommunications 
        facilities, or of telecommunications by means of such 
        facilities. Such term does not include an information service.
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