[Congressional Bills 105th Congress]
[From the U.S. Government Publishing Office]
[S. 1897 Introduced in Senate (IS)]







105th CONGRESS
  2d Session
                                S. 1897

To require accurate billing by telecommunications carriers with respect 
       to the costs and fees resulting from the enactment of the 
        Telecommunications Act of 1996, and for other purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                             April 1, 1998

Mr. Rockefeller (for himself, Ms. Snowe, and Mr. Kerrey) introduced the 
 following bill; which was read twice and referred to the Committee on 
                 Commerce, Science, and Transportation

_______________________________________________________________________

                                 A BILL


 
To require accurate billing by telecommunications carriers with respect 
       to the costs and fees resulting from the enactment of the 
        Telecommunications Act of 1996, 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. FINDINGS; PURPOSE.

    (a) Findings.--Congress makes the following findings:
            (1) Billing practices by telecommunications carriers may 
        not reflect accurately the cost or basis of the additional 
        telecommunications services and benefits that consumers receive 
        as a result of the enactment of the Telecommunications Act of 
        1996 (Public Law 104-104) and other Federal regulatory actions 
        taken since the enactment of that Act.
            (2) Congress has never enacted a law with the intent of 
        permitting providers of telecommunications services to 
        misrepresent to customers the costs of providing services or 
        the services provided.
            (3) Certain providers of telecommunications services have 
        established new, specific charges on customer bills commonly 
        known as ``line-item charges''.
            (4) Certain providers of telecommunications services have 
        described such charges as ``Federal Universal Service Fees'' or 
        similar fees.
            (5) Such charges have generated significant confusion among 
        customers regarding the nature of and scope of universal 
        service and of the fees associated with universal service.
            (6) The State of New York is considering action to protect 
        consumers by requiring telecommunications carriers to disclose 
        fully in the bills of all classes of customers the fee 
        increases and fee reductions resulting from the enactment of 
        the Telecommunications Act of 1996 and other regulatory actions 
        taken since the enactment of that Act.
            (7) The National Association of Regulatory Utility 
        Commissioners adopted a resolution in February 1998 supporting 
        action by the Federal Communications Commission to require 
        interstate carriers to provide accurate customer notice 
        regarding the implementation and purpose of end user charges.
    (b) Purpose.--It is the purpose of this Act to require the Federal 
Communications Commission and the Federal Trade Commission to protect 
consumers of telecommunications services by assuring accurate cost 
reporting and billing practices by telecommunications carriers 
nationwide.

SEC. 2. INVESTIGATION OF TELECOMMUNICATIONS CARRIERS BILLING PRACTICES.

    (a) Investigation.--
            (1) Requirement.--The Federal Communications Commission and 
        the Federal Trade Commission shall jointly conduct an 
        investigation of the billing practices of telecommunications 
        carriers.
            (2) Purpose.--The purpose of the investigation is to 
        determine whether the bills sent by carriers to their customers 
        accurately assess and correctly characterize any additional 
        fees paid by such customers for telecommunications services as 
        a result of the enactment of the Telecommunications Act of 1996 
        (Public Law 104-104) and other Federal regulatory actions taken 
        since the enactment of that Act.
    (b) Determinations.--In carrying out the investigation under 
subsection (a), the Federal Communications Commission and the Federal 
Trade Commission shall determine the following:
            (1) The amount, if any, of additional fees imposed by 
        telecommunications carriers on their customers as a result of 
        the requirements of the Telecommunications Act of 1996 
        (including the amendments made by that Act) and other Federal 
        regulatory actions taken since the enactment of that Act during 
        the period beginning on June 30, 1997, and ending on the date 
        of enactment of that Act.
            (2) In the event that additional fees described in 
        paragraph (1) are being imposed, the following:
                    (A) Whether the amount of such fees accurately 
                reflect--
                            (i) the additional costs to carriers as a 
                        result of the enactment of that Act (including 
                        the amendments made by that Act) and other 
                        Federal regulatory actions taken since the 
                        enactment of that Act; and
                            (ii) any reductions in costs, or other 
                        financial benefits, to carriers as a result of 
                        the enactment of that Act (including such 
                        amendments) and other Federal regulatory 
                        actions taken since the enactment of that Act.
                    (B) Whether the bills that impose such fees 
                characterize correctly the nature and basis of such 
                fees.
    (c) Review of Records.--
            (1) Authority.--For purposes of the investigation under 
        subsection (a), the Federal Communications Commission and the 
        Federal Trade Commission may obtain from any telecommunications 
        carrier any record of the carrier that is relevant to the 
        investigation.
            (2) Use.--The Federal Communications Commission and the 
        Federal Trade Commission may use records obtained under this 
        subsection only for purposes of the investigation.
    (d) Disciplinary Actions.--
            (1) In general.--In the event that the Federal 
        Communications Commission or the Federal Trade Commission 
        determine as a result of the investigation under subsection (a) 
        that the bills sent by a telecommunications carrier to its 
        customers does not accurately assess or correctly characterize 
        any fee addressed in the investigation, the Federal 
        Communications Commission or the Federal Trade Commission, as 
        the case may be, shall take such actions against the carrier as 
        such Commission is authorized to take under law.
            (2) Additional actions.--If the Federal Communications 
        Commission or the Federal Trade Commission determines that such 
        Commission does not have adequate authority under law to take 
        appropriate actions under paragraph (1), the Federal 
        Communications Commission and the Federal Trade Commission 
        shall notify Congress of that determination in the report under 
        subsection (e).
    (e) Report.--Not later than 45 days after the date of enactment of 
this Act, the Federal Communications Commission and the Federal Trade 
Commission shall jointly submit to Congress a report on the results of 
the investigation under subsection (a). The report shall include the 
determination, if any, of either Commission under subsection (d)(2) and 
any recommendations for further legislative action that the Commissions 
consider appropriate.

SEC. 3. REQUIREMENTS FOR TELECOMMUNICATIONS CARRIERS IMPOSING CERTAIN 
              FEES FOR SERVICES.

    (a) Requirements.--Any telecommunications carrier that includes on 
any of the bills sent to its customers a charge described in subsection 
(b) shall--
            (1) specify in the bill imposing such charge any reduction 
        in charges or fees allocable to all classes of customers 
        (including customers of residential basic service, customers of 
        other residential services, small business customers, and other 
        business customers) by reason of any regulatory action of the 
        Federal Government; and
            (2) submit to the Federal Communications Commission the 
        reports required to be submitted by the carrier to the 
        Securities and Exchange Commission under sections 13(a) and 
        15(d) of the Securities and Exchange Act of 1934 (15 U.S.C. 
        78m(a), 78o(d)).
    (b) Covered Charges.--Subsection (a) applies in the case of the 
following charges:
            (1) Any specific charge included after June 30, 1997, if 
        the imposition of the charge is attributed to a regulatory 
        action of the Federal Government.
            (2) Any specific charge included before that date if the 
        description of the charge is changed after that date to 
        attribute the imposition of the charge to a regulatory action 
        of the Federal Government.
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