[Congressional Bills 107th Congress]
[From the U.S. Government Publishing Office]
[H.R. 496 Reported in House (RH)]
Union Calendar No. 15
107th CONGRESS
1st Session
H. R. 496
[Report No. 107-20]
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
February 7, 2001
Mrs. Cubin (for herself, Mr. Gordon, Mr. Barrett of Wisconsin, Mr.
Pickering, and Mr. Largent) introduced the following bill; which was
referred to the Committee on Energy and Commerce
March 13, 2001
Additional sponsors: Mr. Shimkus, Mr. Berry, Mr. Hutchinson, Mr.
Peterson of Minnesota, Mr. Simpson, Mr. Portman, Mr. Doolittle, Mr.
Otter, and Mr. Bereuter
March 13, 2001
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
February 7, 2001]
_______________________________________________________________________
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 2001''.
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) whose access lines, when aggregated with the
access lines of any local exchange carrier that such incumbent
local exchange carrier directly or indirectly controls, is
controlled by, or is under common control with, are 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 Commission's Failure To Take Into Account
Differences.--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 or attested, 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. The Commission may require a two
percent carrier to give 60 days notice of its intent to participate or
withdraw from participation in such common line tariff with respect to
a study area. Except as permitted by section 310(f)(3), a two percent
carrier's election under this subsection shall be binding for one year
from the date of the election.
``(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.
The Commission shall not require a carrier making an election under
this subsection with respect to any study area or areas to make the
same election for any other study area. Except as permitted by section
310(f)(3), a two percent carrier's election under this subsection shall
be binding for one year from the date of the election.
``SEC. 285. DEPLOYMENT OF NEW TELECOMMUNICATIONS SERVICES BY TWO
PERCENT COMPANIES.
``(a) One-Day Notice of Deployment.--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.
``(b) Definition.--For purposes of subsection (a), the term `new
interstate telecommunications service' means a class or subclass of
service not previously offered by the two percent carrier that enlarges
the range of service options available to ratepayers of such carrier.
``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. A
two percent carrier subject to rate-of-return regulation with respect
to an interstate switched or special access service, for which pricing
flexibility has been exercised pursuant to this subsection, shall
compute its interstate rate of return based on the nondiscounted rate
for such service.
``(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 or its equivalent; and
``(B) the provision of telephone 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 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
securities or assets of another two percent carrier or its
affiliate, if the merged or acquiring carrier remains a two
percent carrier after the merger or acquisition, the Commission
shall make any determinations required by this section and
section 214, and shall rule on any petition for waiver of the
Commission's rules or other request related to such
determinations, not later than 60 days after the date an
application with respect to such merger or acquisition 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.
``(3) Election permitted.--The Commission shall permit a
two percent carrier to make an election pursuant to section 284
with respect to any local exchange facilities acquired as a
result of a merger or acquisition that is subject to the review
deadline established in paragraph (1) of this subsection.''.
(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 or other
review 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 or
other review subject to the requirements of this section within
such 90-day period, the Commission's enforcement of any rule
the reconsideration or other review 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 other review or
petition for waiver that is submitted to the Commission on or after the
date of enactment of this Act. Petitions for reconsideration or
petitions for waiver 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 on the date of enactment of this Act.
Union Calendar No. 15
107th CONGRESS
1st Session
H. R. 496
[Report No. 107-20]
_______________________________________________________________________
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.
_______________________________________________________________________
March 13, 2001
Reported with an amendment, committed to the Committee of the Whole
House on the State of the Union, and ordered to be printed