[Congressional Bills 106th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3850 Reported in House (RH)]






                                                 Union Calendar No. 557
106th CONGRESS
  2d Session
                                H. R. 3850

                          [Report No. 106-926]

   To amend the Communications Act of 1934 to promote deployment of 
  advanced services and foster the development of competition for the 
    benefit of consumers in all regions of the Nation by relieving 
    unnecessary burdens on the Nation's two percent local exchange 
          telecommunications carriers, and for other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             March 8, 2000

Mrs. Cubin (for herself, Mr. Gordon, Mr. Pickering, and Mr. Barrett of 
  Wisconsin) introduced the following bill; which was referred to the 
                         Committee on Commerce

                            October 3, 2000

Additional sponsors: Mr. Oxley, Mr. Green of Wisconsin, Mr. Petri, Mr. 
Burr of North Carolina, Mr. Hilleary, Mr. Deal of Georgia, Mr. Portman, 
 Mr. Kleczka, Mr. Moran of Kansas, Mr. Largent, Mr. Brown of Ohio, Mr. 
Coburn, Mr. Doolittle, Mr. Spratt, Mr. Ryan of Wisconsin, Mr. Clement, 
  Mr. Chabot, Mr. Kind, Mr. Boehner, Mr. Dickey, Mr. Strickland, Mr. 
 Sawyer, Mr. Klink, Mr. Boucher, Mr. Goodlatte, Mr. Lucas of Kentucky, 
        Mr. Gillmor, Mr. Berry, Mr. Hutchinson, and Mr. Snyder.

                            October 3, 2000

  Reported with an amendment, committed to the Committee of the Whole 
       House on the State of the Union, and ordered to be printed
 [Strike out all after the enacting clause and insert the part printed 
                               in italic]
 [For text of introduced bill, see copy of bill as introduced on March 
                                8, 2000]

_______________________________________________________________________

                                 A BILL


 
   To amend the Communications Act of 1934 to promote deployment of 
  advanced services and foster the development of competition for the 
    benefit of consumers in all regions of the Nation by relieving 
    unnecessary burdens on the Nation's two percent local exchange 
          telecommunications carriers, 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.

    This Act may be cited as the ``Independent Telecommunications 
Consumer Enhancement Act of 2000''.

SEC. 2. FINDINGS AND PURPOSE.

    (a) Findings.--Congress finds the following:
            (1) The Telecommunications Act of 1996 was enacted to 
        foster the rapid deployment of advanced telecommunications and 
        information technologies and services to all Americans by 
        promoting competition and reducing regulation in 
        telecommunications markets nationwide.
            (2) The Telecommunications Act of 1996 specifically 
        recognized the unique abilities and circumstances of local 
        exchange carriers with fewer than two percent of the Nation's 
        subscriber lines installed in the aggregate nationwide.
            (3) Given the markets two percent carriers typically serve, 
        such carriers are uniquely positioned to accelerate the 
        deployment of advanced services and competitive initiatives for 
        the benefit of consumers in less densely populated regions of 
        the Nation.
            (4) Existing regulations are typically tailored to the 
        circumstances of larger carriers and therefore often impose 
        disproportionate burdens on two percent carriers, impeding such 
        carriers' deployment of advanced telecommunications services 
        and competitive initiatives to consumers in less densely 
        populated regions of the Nation.
            (5) Reducing regulatory burdens on two percent carriers 
        will enable such carriers to devote additional resources to the 
        deployment of advanced services and to competitive initiatives 
        to benefit consumers in less densely populated regions of the 
        Nation.
            (6) Reducing regulatory burdens on two percent carriers 
        will increase such carriers' ability to respond to marketplace 
        conditions, allowing them to accelerate deployment of advanced 
        services and competitive initiatives to benefit consumers in 
        less densely populated regions of the Nation.
    (b) Purposes.--The purposes of this Act are--
            (1) to accelerate the deployment of advanced services and 
        the development of competition in the telecommunications 
        industry for the benefit of consumers in all regions of the 
        Nation, consistent with the Telecommunications Act of 1996, by 
        reducing regulatory burdens on local exchange carriers with 
        fewer than two percent of the Nation's subscriber lines 
        installed in the aggregate nationwide;
            (2) to improve such carriers' flexibility to undertake such 
        initiatives; and
            (3) to allow such carriers to redirect resources from 
        paying the costs of such regulatory burdens to increasing 
        investment in such initiatives.

SEC. 3. DEFINITION.

    Section 3 of the Communications Act of 1934 (47 U.S.C. 153) is 
amended--
            (1) by redesignating paragraphs (51) and (52) as paragraphs 
        (52) and (53), respectively; and
            (2) by inserting after paragraph (50) the following:
            ``(51) Two percent carrier.--The term `two percent carrier' 
        means an incumbent local exchange carrier within the meaning of 
        section 251(h) that has fewer than two percent of the Nation's 
        subscriber lines installed in the aggregate nationwide.''.

SEC. 4. REGULATORY RELIEF FOR TWO PERCENT CARRIERS.

    Title II of the Communications Act of 1934 is amended by adding at 
the end thereof a new part IV as follows:

         ``PART IV--PROVISIONS CONCERNING TWO PERCENT CARRIERS

``SEC. 281. REDUCED REGULATORY REQUIREMENTS FOR TWO PERCENT CARRIERS.

    ``(a) Commission To Take Into Account Differences.--In adopting 
rules that apply to incumbent local exchange carriers (within the 
meaning of section 251(h)), the Commission shall separately evaluate 
the burden that any proposed regulatory, compliance, or reporting 
requirements would have on two percent carriers.
    ``(b) Effect of Reconsideration or Waiver.--If the Commission 
adopts a rule that applies to incumbent local exchange carriers and 
fails to separately evaluate the burden that any proposed regulatory, 
compliance, or reporting requirement would have on two percent 
carriers, the Commission shall not enforce the rule against two percent 
carriers unless and until the Commission performs such separate 
evaluation.
    ``(c) Additional Review Not Required.--Nothing in this section 
shall be construed to require the Commission to conduct a separate 
evaluation under subsection (a) if the rules adopted do not apply to 
two percent carriers, or such carriers are exempted from such rules.
    ``(d) Savings Clause.--Nothing in this section shall be construed 
to prohibit any size-based differentiation among carriers mandated by 
this Act, chapter 6 of title 5, United States Code, the Commission's 
rules, or any other provision of law.
    ``(e) Effective Date.--The provisions of this section shall apply 
with respect to any rule adopted on or after the date of enactment of 
this section.

``SEC. 282. LIMITATION OF REPORTING REQUIREMENTS.

    ``(a) Limitation.--The Commission shall not require a two percent 
carrier--
            ``(1) to file cost allocation manuals or to have such 
        manuals audited, but a two percent carrier that qualifies as a 
        class A carrier shall annually certify to the Commission that 
        the two percent carrier's cost allocation complies with the 
        rules of the Commission; or
            ``(2) to file Automated Reporting and Management 
        Information Systems (ARMIS) reports.
    ``(b) Preservation of Authority.--Except as provided in subsection 
(a), nothing in this Act limits the authority of the Commission to 
obtain access to information under sections 211, 213, 215, 218, and 220 
with respect to two percent carriers.

``SEC. 283. INTEGRATED OPERATION OF TWO PERCENT CARRIERS.

    ``The Commission shall not require any two percent carrier to 
establish or maintain a separate affiliate to provide any common 
carrier or noncommon carrier services, including local and 
interexchange services, commercial mobile radio services, advanced 
services (within the meaning of section 706 of the Telecommunications 
Act of 1996), paging, Internet, information services or other enhanced 
services, or other services. The Commission shall not require any two 
percent carrier and its affiliates to maintain separate officers, 
directors, or other personnel, network facilities, buildings, research 
and development departments, books of account, financing, marketing, 
provisioning, or other operations.

``SEC. 284. PARTICIPATION IN TARIFF POOLS AND PRICE CAP REGULATION.

    ``(a) NECA Pool.--The participation or withdrawal from 
participation by a two percent carrier of one or more study areas in 
the common line tariff administered and filed by the National Exchange 
Carrier Association or any successor tariff or administrator shall not 
obligate such carrier to participate or withdraw from participation in 
such tariff for any other study area.
    ``(b) Price Cap Regulation.--A two percent carrier may elect to be 
regulated by the Commission under price cap rate regulation, or elect 
to withdraw from such regulation, for one or more of its study areas at 
any time. The Commission shall not require a carrier making an 
election under this paragraph with respect to any study area or areas 
to make the same election for any other study area.

``SEC. 285. DEPLOYMENT OF NEW TELECOMMUNICATIONS SERVICES BY TWO 
              PERCENT COMPANIES.

    ``The Commission shall permit two percent carriers to introduce new 
interstate telecommunications services by filing a tariff on one day's 
notice showing the charges, classifications, regulations and practices 
therefor, without obtaining a waiver, or make any other showing before 
the Commission in advance of the tariff filing. The Commission shall 
not have authority to approve or disapprove the rate structure for such 
services shown in such tariff.

``SEC. 286. ENTRY OF COMPETING CARRIER.

    ``(a) Pricing Flexibility.--Notwithstanding any other provision of 
this Act, any two percent carrier shall be permitted to deaverage its 
interstate switched or special access rates, file tariffs on one day's 
notice, and file contract-based tariffs for interstate switched or 
special access services immediately upon certifying to the Commission 
that a telecommunications carrier unaffiliated with such carrier is 
engaged in facilities-based entry within such carrier's service area.
    ``(b) Pricing Deregulation.--Notwithstanding any other provision of 
this Act, upon receipt by the Commission of a certification by a two 
percent carrier that a local exchange carrier that is not a two percent 
carrier is engaged in facilities-based entry within the two percent 
carrier's service area, the Commission shall regulate such two percent 
carrier as non-dominant, and therefore shall not require the tariffing 
of the interstate service offerings of such two percent carrier.
    ``(c) Participation in Exchange Carrier Association Tariff.--A two 
percent carrier that meets the requirements of subsection (a) or (b) of 
this section with respect to one or more study areas shall be permitted 
to participate in the common line tariff administered and filed by the 
National Exchange Carrier Association or any successor tariff or 
administrator, by electing to include one or more of its study areas in 
such tariff.
    ``(d) Definitions.--For purposes of this section:
            ``(1) Facilities-based entry.--The term `facilities-based 
        entry' means, within the service area of a two percent 
        carrier--
                    ``(A) the provision or procurement of local 
                telephone exchange switching capability; and
                    ``(B) the provision of local exchange service to at 
                least one unaffiliated customer.
            ``(2) Contract-based tariff.--The term `contract-based 
        tariff' shall mean a tariff based on a service contract entered 
        into between a two percent carrier and one or more customers of 
        such carrier. Such tariff shall include--
                    ``(A) the term of the contract, including any 
                renewal options;
                    ``(B) a brief description of each of the services 
                provided under the contract;
                    ``(C) minimum volume commitments for each service, 
                if any;
                    ``(D) the contract price for each service or 
                services at the volume levels committed to by the 
                customer or customers;
                    ``(E) a brief description of any volume discounts 
                built into the contract rate structure; and
                    ``(F) a general description of any other 
                classifications, practices, and regulations affecting 
                the contract rate.
            ``(3) Service area.--The term `service area' has the same 
        meaning as in section 214(e)(5).

``SEC. 287. SAVINGS PROVISIONS.

    ``(a) Commission Authority.--Nothing in this part shall be 
construed to restrict the authority of the Commission under sections 
201 through 205 and 208.
    ``(b) Rural Telephone Company Rights.--Nothing in this part shall 
be construed to diminish the rights of rural telephone companies 
otherwise accorded by this Act, or the rules, policies, procedures, 
guidelines, and standards of the Commission as of the date of enactment 
of this section.''.

SEC. 5. LIMITATION ON MERGER REVIEW

    (a) Amendment.--Section 310 of the Communications Act of 1934 (47 
U.S.C. 310) is amended by adding at the end the following:
    ``(f) Deadline for Making Public Interest Determination.--
            ``(1) Time limit.--In connection with any merger between 
        two percent carriers, or the acquisition, directly or 
        indirectly, by a two percent carrier or its affiliate of the 
        securities or assets of another two percent carrier or its 
        affiliate, the Commission shall make any determination required 
        by subsection (d) of this section or section 214 not later than 
        60 days after the date an application with respect to such 
        merger is submitted to the Commission.
            ``(2) Approval absent action.--If the Commission does not 
        approve or deny an application as described in paragraph (1) by 
        the end of the period specified, the application shall be 
        deemed approved on the day after the end of such period. Any 
        such application deemed approved under this subsection shall be 
        deemed approved without conditions.''.
    (b) Effective Date.--The provisions of this section shall apply 
with respect to any application that is submitted to the Commission on 
or after the date of enactment of this Act. Applications pending with 
the Commission on the date of enactment of this Act shall be subject to 
the requirements of this section as if they had been filed with the 
Commission on the date of enactment of this Act.

SEC. 6. TIME LIMITS FOR ACTION ON PETITIONS FOR RECONSIDERATION OR 
              WAIVER.

    (a) Amendment.--Section 405 of the Communications Act of 1934 (47 
U.S.C. 405) is amended by adding to the end the following:
    ``(c) Expedited Action Required.--
            ``(1) Time limit.--Within 90 days after receiving from a 
        two percent carrier a petition for reconsideration filed under 
        this section or a petition for waiver of a rule, policy, or 
        other Commission requirement, the Commission shall issue an 
        order granting or denying such petition. If the Commission 
        fails to act on a petition for waiver subject to the 
        requirements of this section within this 90-day period, the 
        relief sought in such petition shall be deemed granted. If the 
        Commission fails to act on a petition for reconsideration 
        subject to the requirements of this section within this 90 day 
        period, the Commission's enforcement of any rule the 
        reconsideration of which was specifically sought by the 
        petitioning party shall be stayed with respect to that party 
        until the Commission issues an order granting or denying such 
        petition.
            ``(2) Finality of action.--Any order issued under paragraph 
        (1), or any grant of a petition for waiver that is deemed to 
        occur as a result of the Commission's failure to act under 
        paragraph (1), shall be a final order and may be appealed.''.
    (b) Effective Date.--The provisions of this section shall apply 
with respect to any petition for reconsideration or petition for waiver 
that is submitted to the Commission on or after the date of enactment 
of this Act. Pending petitions for reconsideration or petitions for 
waiver shall be subject to the requirements of this section as if they 
had been filed on the date of enactment of this Act.




                                                 Union Calendar No. 557

106th CONGRESS

  2d Session

                               H. R. 3850

                          [Report No. 106-926]

_______________________________________________________________________

                                 A BILL

   To amend the Communications Act of 1934 to promote deployment of 
  advanced services and foster the development of competition for the 
    benefit of consumers in all regions of the Nation by relieving 
    unnecessary burdens on the Nation's two percent local exchange 
          telecommunications carriers, and for other purposes.

_______________________________________________________________________

                            October 3, 2000

  Reported with an amendment, committed to the Committee of the Whole 
       House on the State of the Union, and ordered to be printed