[Congressional Record Volume 147, Number 112 (Friday, August 3, 2001)]
[Senate]
[Pages S8929-S8930]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

  By Mr. BURNS (for himself, Mr. Breaux, Mr. Hagel, Mrs. Lincoln, and 
Mr. Enzi):
  S. 1359. 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 carrier, and for other purposes; to the 
Committee on Commerce, Science, and Transportation.
  Mr. BURNS. Mr. President, I ask unanimous consent that the bill be 
printed in the Record.
  There being no objection, the bill was ordered to be printed in the 
Record, as follows:

                                S. 1359

       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 ``Facilitating Access to 
     Speedy Transmissions for Networks, E-commerce and 
     Telecommunications (FASTNET) Act''.

     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, except for purposes of 
     section 224.
       ``(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

[[Page S8930]]

     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 de-average 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) Streamlined Pricing Regulation.--Notwithstanding any 
     other provision of this Act, upon receipt by the Commission 
     of a certification by a two percent carrier that--
       ``(1) a local exchange carrier, or its affiliate, or
       ``(2) a local exchange carrier operated by, or owned in 
     whole or part by, a governmental authority,
     is engaged in facilities-based entry within the two percent 
     carrier's service area, the Commission shall regulate the two 
     percent carrier as non-dominant and shall not require the 
     tariffing of the interstate service offerings of the 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.
       ``(c) State Authority.--Nothing in this Part shall be 
     construed to limit or affect any authority (as of August 1, 
     2001) of the States over charges, classifications, practices, 
     services, facilities, or regulations for or in connection 
     with intrastate communication service by wire or radio of any 
     carrier.''.

     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 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.

     SEC. 7. NATIONAL SECURITY AND LAW ENFORCEMENT EXCEPTIONS.

       Notwithstanding sections 310 and 405 of the Communications 
     Act of 1934 (47 U.S.C. 310 and 405), the 60-day time period 
     under section 310(f)(1) of that Act, as added by section 5 of 
     this Act, and the 90-day time period under section 405(c)(1) 
     of that Act, as added by section 6 of this Act, shall not 
     apply to a petition or application under section 310 or 405 
     if an Executive Branch agency with cognizance over national 
     security, law enforcement, or public safety matters, 
     including the Department of Defense, Department of Justice, 
     and the Federal Bureau of Investigation, submits a written 
     filing to the Federal Communications Commission advising the 
     Commission that the petition or application may present 
     national security, law enforcement, or public safety concerns 
     that may not be resolved within the 60-day or 90-day time 
     period, respectively.
                                 ______