[Congressional Bills 107th Congress]
[From the U.S. Government Publishing Office]
[S. 2863 Introduced in Senate (IS)]







107th CONGRESS
  2d Session
                                S. 2863

      To provide for deregulation of consumer broadband services.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                             August 1, 2002

  Mr. McCain introduced the following bill; which was read twice and 
   referred to the Committee on Commerce, Science, and Transportation

_______________________________________________________________________

                                 A BILL


 
      To provide for deregulation of consumer broadband services.

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

SECTION 1. SHORT TITLE; AMENDMENT OF COMMUNICATIONS ACT OF 1934; TABLE 
              OF CONTENTS.

    (a) Short Title.--This Act may be cited as the ``Consumer Broadband 
Deregulation Act''.
    (b) Amendment of Communications Act of 1934.--Except as otherwise 
expressly provided, whenever in this Act an amendment or repeal is 
expressed in terms of an amendment to, or repeal of, a section or other 
provision, the reference shall be considered to be made to a section or 
other provision of the Communications Act of 1934 (47 U.S.C. 151 et 
seq.).
    (c) Table of Contents.--The table of contents for this Act is as 
follows:

Sec. 1. Short title; amendment of Communications Act of 1934; table of 
                            contents.
Sec. 2. Findings.
Sec. 3. Deregulation of consumer broadband services.
Sec. 4. Unbundled access and collocation requirements.
Sec. 5. National clearinghouse for high-speed Internet access.
Sec. 6. Enforcement.
Sec. 7. Spectrum reform study.
Sec. 8. Study on ways to promote broadband through e-government.

SEC. 2. FINDINGS AND PURPOSE.

    (a) Findings.--The Congress finds the following:
            (1) All consumer broadband service markets should be open 
        to competition.
            (2) Consumer broadband service can be provided over 
        numerous different platforms.
            (3) All providers of consumer broadband services should be 
        able to provide such services and be subject to harmonized 
        regulation when offering such services.
            (4) Consumer broadband services can enhance the quality of 
        life for Americans and promote economic development, job 
        creation, and international competitiveness.
            (5) Advancements in the nation's Internet infrastructure 
        will enhance the public welfare by helping to speed the 
        delivery of services such as telemedicine, distance learning, 
        remote medical services, and distribution of health 
        information.
            (6) Government regulations that affect high-speed Internet 
        access should promote investment and innovation in all 
        technological platforms.
    (b) Purpose.--It is the purpose of this Act to allow market forces 
to introduce investment and innovation in consumer broadband services 
for the benefit of all Americans.

SEC. 3. DEREGULATION OF CONSUMER BROADBAND SERVICES.

    (a) In General.--The Act is amended--
            (1) by redesignating title VII as title VIII;
            (2) by redesignating sections 701 through 714 as sections 
        801 through 814, respectively;
            (3) by striking ``section 714'' in section 
        309(j)(8)(C)(iii) and inserting ``section 814'';
            (4) by striking ``section 705'' in section 712(b) and 
        inserting ``section 805''; and
            (5) by inserting after title VI the following:

                ``TITLE VII--CONSUMER BROADBAND SERVICES

``SEC. 701. RETAIL CONSUMER BROADBAND SERVICE.

    ``(a) Freedom From Regulation.--Except as provided in subsection 
(c), neither the Commission, nor any State, shall have authority to 
regulate the rates, charges, terms, or conditions for the retail 
offering of consumer broadband service.
    ``(b) Other Services and Facilities.--Nothing in this section 
precludes the Commission, or a State or local government, from 
regulating the provision of any service other than consumer broadband 
service, even if that service is provided over the same facilities as 
are used to provide consumer broadband service.
    ``(c) Service Quality.--
            ``(1) Commission determination required.--The Commission 
        shall initiate a study within 2 years after the date of 
        enactment of the Consumer Broadband Deregulation Act to 
        determine whether State regulation of consumer broadband 
        service quality is appropriate or necessary for the protection 
        of consumers.
            ``(2) Regulations; state enforcement.--If the Commission 
        determines that State regulation of consumer broadband service 
        quality is appropriate or necessary for the protection of 
        consumers, the Commission shall promulgate regulations 
        establishing uniform national guidelines regulating consumer 
        broadband service quality that may be enforced by States. Any 
        regulations promulgated under this paragraph may not take 
effect before the date that is 2 years after the date of enactment of 
the Consumer Broadband Deregulation Act.
            ``(3) Preemption of other state service quality 
        regulation.--
                    ``(A) In general.--Unless the Commission 
                promulgates regulations under paragraph (2), no State 
                may regulate the quality of consumer broadband services 
                provided to its citizens or residents.
                    ``(B) Limitation.--If the commission promulgates 
                regulations under paragraph (2), no State may regulate 
                the quality of consumer broadband services provided to 
                its citizens or residents except as provided in those 
                regulations.
            ``(4) No inference.--Nothing in this section shall affect a 
        State's ability to enforce consumer protection laws and 
        regulations unrelated to the technical provision of consumer 
        broadband service.

``SEC. 702. WHOLESALE CONSUMER BROADBAND SERVICE.

    ``(a) In General.--Except as provided in subsection (b), neither 
the Commission nor any State or political subdivision thereof shall 
have authority to require a consumer broadband service provider to 
afford an Internet service provider access to its facilities or 
services for the purpose of offering a consumer broadband service.
    ``(b) Exception.--To the extent that any entity is required by the 
Commission to afford an Internet service provider access to its 
facilities or services for the purpose of providing consumer broadband 
service on the date of enactment of the Consumer Broadband Deregulation 
Act, the Commission may require that entity to continue to afford such 
access.
    ``(c) Report.--The Commission shall report to the Senate Committee 
on Commerce, Science, and Transportation and the House of 
Representatives Committee on Energy and Commerce within 2 years after 
the date of enactment of the Consumer Broadband Deregulation Act on the 
state of the wholesale market for consumer broadband services and its 
effect on retail competition for these services.
    ``(d) Sunset Provision.--Subsection (b) shall cease to be effective 
5 years after the date of enactment of such Act, unless the Commission 
finds that the continued exercise of its authority under that 
subsection is necessary to preserve and protect competition in the 
provision of consumer broadband services.

``SEC. 703. LIMIT ON STATE AND LOCAL AUTHORITY; PUBLIC RIGHTS-OF-WAY 
              CHARGES.

    ``(a) Removal of Barriers to Entry.--No State or local statute or 
regulation, or other State or local legal requirement, may prohibit or 
have the effect of prohibiting the ability of any entity to provide any 
consumer broadband service.
    ``(b) Cost-Based Compensation for Rights-of-Way.--A State or local 
government may not require compensation from consumer broadband service 
providers for access to, or use of, public rights-of-way that exceeds 
the direct and actual costs reasonably allocable to the administration 
of access to, or use of, public rights-of-way.
    ``(c) Public Disclosure.--A State or local government shall 
disclose to the public, on a timely basis and in an easily understood 
format, any compensation required from consumer broadband service 
providers for access to, of use of, public rights-of-way.

``SEC. 704. ACCESS BY PERSONS WITH DISABILITIES.

    ``(a) Manufacturers.--A manufacturer of equipment used for consumer 
broadband services shall ensure that equipment is designed, developed, 
and fabricated to be accessible to and usable by persons with 
disabilities, unless the manufacturer demonstrates that taking such 
steps would result in an undue burden.
    ``(b) Consumer Broadband Service Providers.--A provider of consumer 
broadband services shall ensure that its services are accessible to and 
usable by persons with disabilities, unless the provider demonstrates 
that taking such steps would result in an undue burden.
    ``(c) Compatibility.--Whenever the requirements of subsections (a) 
and (b) constitute an undue burden, a manufacturer or provider shall 
ensure that the equipment or service is compatible with existing 
peripheral devices or specialized customer premises equipment commonly 
used by persons with disabilities to achieve access, unless the 
manufacturer or provider demonstrates that taking such steps would 
result in an undue burden.
    ``(d) Regulations.--Within 18 months after the date of enactment of 
the Consumer Broadband Deregulation Act, the Commission shall prescribe 
such regulations as are necessary to implement this section. The 
regulations shall ensure consistency across multiple service platforms 
with respect to access by persons with disabilities. The regulations 
also shall provide that neither broadband services, broadband access 
services, nor the equipment used for such services may impair or impede 
the accessibility of information content when accessibility has been 
incorporated in that content for transmission through broadband 
services, access services, or equipment.
    ``(e) Definitions.--In this section--
            ``(1) Disability.--The term `disability' has the meaning 
        given to it by section 3(2)(A) of the Americans with 
        Disabilities Act of 1990 (42 U.S.C. 12102(2)(A)).
            ``(2) Undue burden.--The term `undue burden' means 
        significant difficulty or expense. In determining whether the 
        requirements of this paragraph would result in an undue burden, 
        the factors to be considered include--
                    ``(A) the nature and cost of the steps required for 
                the manufacturer or provider;
                    ``(B) the impact on the operation of the 
                manufacturer or provider;
                    ``(C) the financial resources of the manufacturer 
                or provider; and
                    ``(D) the type of operations of the manufacturer or 
                provider.

``SEC. 705. RELATIONSHIP TO TITLES II, III, AND VI.

    ``If the application of any provision of title II, III, or VI of 
this Act is inconsistent with any provision of this title, then to the 
extent the application of both provisions would conflict with or 
frustrate the application of the provision of this title--
            ``(1) the provision of this title shall apply; and
            ``(2) the inconsistent provision of title II, III, or VI 
        shall not apply.''.
    (b) Consumer Broadband Services Defined.--Section 3 (47 U.S.C. 153) 
is amended by inserting after paragraph (12) the following:
            ``(12A) Consumer broadband services.--
                    ``(A) In general.--The term `consumer broadband 
                services' means interstate residential high-speed 
                Internet access services.
                    ``(B) High-speed.--The Commission shall establish 
                by rule the criterion, in terms of megabits per second, 
                to be used for the purpose of determining whether 
                residential Internet services are high-speed Internet 
                services. In establishing that criterion, the 
                Commission shall consider whether the speed is 
                sufficient to support existing applications and to 
                encourage the development of new applications. The 
                Commission shall revise the criterion as necessary and 
                shall review any criterion established by it no less 
                frequently than each 18 months.
                    ``(C) Internet access service.--The term `Internet 
                access service' means a service that combines computer 
                processing, information storage, protocol conversion, 
                and routing with telecommunications to enable users to 
                access Internet content and services.''.

SEC. 4. UNBUNDLED ACCESS AND COLLOCATION REQUIREMENTS.

    (a) Unbundled Access.--Section 251(c)(3) (47 U.S.C. 251(c)(3)) is 
amended to read as follows:
            ``(3) Unbundled access.--
                    ``(A) In general.--The duty to provide, to any 
                requesting telecommunications carrier for the provision 
                of a telecommunications service, nondiscriminatory 
                access to network elements on an unbundled basis at any 
                technically feasible point on rates, terms, and 
                conditions that are just, reasonable, and 
                nondiscriminatory in accordance with the terms and 
                conditions of the agreement and the requirements of 
                this section and section 252. An incumbent local 
                exchange carrier shall provide such unbundled network 
                elements in a manner that allows requesting carriers to 
                combine such elements in order to provide such 
                telecommunications service.
                    ``(B) Exception.--The duty to provide access under 
                subparagraph (A) does not require an incumbent local 
                exchange carrier to provide access to a fiber local 
                loop or fiber feeder subloop to a requesting carrier to 
                enable the requesting carrier to provide a 
                telecommunications service that is an input to a 
                consumer broadband service unless the incumbent local 
                exchange carrier has removed or rendered useless a 
                previously existing cooper loop necessary to provide 
                such services.''.
    (b) Collocation.--Section 251(c)(6) (47 U.S.C. 251(c)(6)) is 
amended to read as follows:
            ``(6) Collocation.--
                    ``(A) In general.--The duty to provide, on rates, 
                terms, and conditions that are just, reasonable, and 
                nondiscriminatory, for physical collocation of 
                equipment necessary for interconnection or access to 
                unbundled network elements at the premises of the local 
                exchange carrier, except that the carrier may provide 
                for virtual collocation if the local exchange carrier 
                demonstrates to the State commission that physical 
                collocation is not practical for technical reasons or 
                because of space limitations.
                    ``(B) Exception.--The duty to provide for 
                collocation under subparagraph (A) does not require an 
incumbent local exchange carrier to provide for collocation in a remote 
terminal.''.

SEC. 5. NATIONAL CLEARINGHOUSE FOR HIGH-SPEED INTERNET ACCESS.

    (a) In General.--The Secretary of Commerce shall establish a 
national clearinghouse within the Department of Commerce that allows 
communities throughout the United States, particularly rural 
communities, to find data and information relating to the deployment of 
facilities capable of supporting high-speed Internet services.
    (b) Exchange Function.--The Secretary shall solicit and accept 
data, information, and advice from communities that have succeeded in 
attracting the deployment of broadband services and infrastructure in 
order to make that data, information, and advice available to other 
communities that are seeking to deploy high-speed Internet services.

SEC. 6. ENFORCEMENT.

    (a) Cease and Desist Authority.--Section 501 of the Communications 
Act of 1934 (47 U.S.C. 501) is amended--
            (1) by striking ``Any person'' and inserting ``(a) Fines 
        and Imprisonment.--Any person'';
            (2) by adding at the end the following new subsection:
    ``(b) Cease and Desist Orders.-- If, after a hearing, the 
Commission determines that any common carrier or consumer broadband 
service provider is engaged in an act, matter, or thing prohibited by 
this Act, or is failing to perform any act, matter, or thing required 
by this Act, the Commission may order such common carrier or provider 
to cease or desist from such action or inaction.''.
    (b) Forfeiture Penalties.--Section 503(b) of the Communications Act 
of 1934 (47 U.S.C. 503(b)) is amended--
            (1) in paragraph (2)(B)--
                    (A) by striking ``exceed $100,000'' and inserting 
                ``exceed $1,000,000''; and
                    (B) by striking ``of $1,000,000'' and inserting 
                ``of $10,000,000'';
            (2) in paragraph (2)(C), by striking ``subparagraph (A) or 
        (B)'' and inserting ``subparagraph (A), (B), or (C)'';
            (3) by redesignating subparagraphs (C) and (D) of paragraph 
        (2) as subparagraphs (D) and (E), respectively;
            (4) by inserting after subparagraph (B) of paragraph (2) 
        the following new subparagraph:
    ``(C) If a common carrier or consumer broadband service provider 
has violated a cease and desist order or has previously been assessed a 
forfeiture penalty for a violation of a provision of this Act or of any 
rule, regulation, or order issued by the Commission, and if the 
Commission or an administrative law judge determines that such common 
carrier has willfully violated the same provision, rule, regulation, 
that this repeated violation has caused harm to competition, and that 
such common carrier or consumer broadband service provider has been 
assessed a forfeiture penalty under this subsection for such previous 
violation, the Commission may assess a forfeiture penalty not to exceed 
$2,000,000 for each violation or each day of continuing violation; 
except that the amount of such forfeiture penalty shall not exceed 
$20,000,000.''; and
            (5) in paragraph (6)(B), by striking ``1 year'' and 
        inserting ``2 years''.

SEC. 7. WIRELESS BROADBAND STUDY.

    (a) In General.--The Federal Communications Commission shall 
conduct a study--
            (1) on wireless technology to determine the appropriate 
        role of the Federal government in facilitating greater consumer 
        access to consumer broadband services using evolving advanced 
        technology; and
            (2) what, if any, action by the Federal government is 
        needed to increase the deployment of new wireless technology to 
        facilitate high-speed Internet access.
    (b) Focus.--In conducting the study, the Commission shall focus on 
consumer broadband services utilizing wireless technology.
    (c) Consideration of Wireless Industry Views.--In conducting the 
study, the Commission shall consider the views of, among other 
interested parties, representatives of the telecommunications industry 
(as defined in section 714(k)(3) of the Communications Act of 1934 (47 
U.S.C. 614(k)(3)) involved in wireless communications.
    (d) Report.--
            (1) In general.--The Commission shall transmit a report, 
        containing its findings, conclusions, and recommendations from 
        the study to the Senate Committee on Commerce, Science, and 
        Transportation and the House of Representatives Committee on 
        Energy and Commerce within 18 months after the date of 
        enactment of this Act.
            (2) Report to be available to public.--The Commission shall 
        make its report available to the public.

SEC. 8. STUDY ON WAYS TO PROMOTE BROADBAND THROUGH E-GOVERNMENT.

    The Secretary of Commerce, in consultation with the Director of the 
Office of Management and Budget, shall transmit a report to the Senate 
Committee on Commerce, Science, and Transportation and the House of 
Representatives Committee on Energy and Commerce within 6 months after 
the date of enactment of this Act on how the Federal government can 
promote the use of broadband services through e-government, including--
            (1) online delivery of government services;
            (2) video-streaming of government press events and open 
        public events, such as announcements and administrative 
        proceedings;
            (3) e-health and online education initiatives;
            (4) access to government documents; and
            (5) the ramifications of enhanced government online 
        services on user privacy and the security of the Federal 
        government's electronic infrastructure.
                                 <all>