[House Report 107-361]
[From the U.S. Government Publishing Office]
107th Congress Report
HOUSE OF REPRESENTATIVES
2d Session 107-361
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PROVIDING FOR CONSIDERATION OF H.R. 1542, INTERNET FREEDOM AND
BROADBAND DEPLOYMENT ACT OF 2001
_______
February 26, 2002.--Referred to the House Calendar and ordered to be
printed
_______
Mr. Linder, from the Committee on Rules, submitted the following
R E P O R T
[To accompany H. Res. 350]
The Committee on Rules, having had under consideration
House Resolution 350, by a nonrecord vote, report the same to
the House with the recommendation that the resolution be
adopted.
summary of provisions of the resolution
The resolution provides for consideration of H.R. 1542, to
deregulate the Internet and high speed data services, and for
other purposes. The rule provides 1 hour and 20 minutes of
general debate, with one hour equally divided and controlled by
the chairman and ranking minority member of the Committee on
Energy and Commerce and 20 minutes equally divided and
controlled by the chairman and ranking minority member of the
Committee on the Judiciary.
The rule waives all points of order against consideration
of the bill. The rule provides that the amendment in the nature
of a substitute printed in Part A of this report shall be
considered as adopted in the House and in the Committee of the
Whole. The rule provides that the bill, as amended, shall be
considered as the original bill for the purpose of further
amendment and shall be considered as read.
The rule provides that no further amendment to the bill, as
amended, shall be in order except those printed in Part B of
this report. Further, the amendments printed in Part B of this
report may be offered only in the order printed in this report,
may be offered only by a Member designated in this report,
shall be considered as read, shall be debatable for the time
specified in this report equally divided and controlled by the
proponent and an opponent, shall not be subject to amendment
except as specified in this report, and shall not be subject to
a demand for division of the question in the House or in the
Committee of the Whole.
The rule waives all points of order against amendments
printed in Part B of this report. Finally, the rule provides
one motion to recommit with or without instructions.
amendments made in order under the rule
(Summaries derived from information provided by sponsors.)
Part A--Summary of Amendment To Be Considered as Adopted
Consists of the text of H.R. 1542 as reported by the Energy
and Commerce Committee modified by the amendment offered by Mr.
Tauzin and Mr. Sensenbrenner which clarifies that the antitrust
laws are not repealed by, not precluded by, not diminished by
and not incompatible with the Communications Act of 1934 or the
Telecommunications Act of 1996. Requires a Bell Operating
Company to notify the Department of Justice thirty days prior
to offering an interLATA high speed data or Internet backbone
service originating in any in-region State in which the company
has not received the authority from the FCC to provide
interLATA services.
Part B--Summary of Amendments Made in Order
Upton/Green (TX): Increases the FCC's forfeiture penalties
for phone companies which violate the telecommunications law by
elevating the current cap from $1.2 million to $10 million and
increasing the current $120,000 fine per violation or each day
of a continuing violation to $1 million. For repeat offenders,
the amendment doubles these increased forfeiture penalties to
$2 million per violation or each day of a continuing violation,
capped at $20 million. The amendment doubles from 1 year to 2
years the statute of limitations for the FCC to bring
enforcement actions against phone companies, gives the FCC
clear, statutory ``cease and desist'' authority to use against
phone companies which violate any of the telecommunications
laws and directs the FCC to study the impact of the enhanced
penalties under the bill and report back to Congress within one
year after enactment. (40 minutes)
Cannon/Conyers: Line by line change to H.R. 1542: protects
competitive investments by preserving the existing rules for
telecommunications services that the competitive local exchange
carriers relied upon when making investments and preserves
State authority and consumer safeguards from the broad
preemption of such authority granted under H.R. 1542. Preserves
State authority and consumer safeguards from the preemption of
such authority granted under H.R. 1542. (60 minutes)
Buyer/Towns Substitute Amendment for the Amendment offered
by Cannon/Conyers:
PART B--TEXT OF AMENDMENTS MADE IN ORDER UNDER THE RULE
1. An Amendment To Be Offered by Representative Upton of Michigan, or a
Designee, Debatable for 40 Minutes
At the end of the bill, add the following new section:
SEC. 9. COMMON CARRIER 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 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 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 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 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''.
(c) Evaluation of Impact.--
(1) Evaluation required.--Within one year after the
date of enactment of this Act, the Federal
Communications Commission shall conduct an evaluation
of the impact of the increased remedies available under
the amendments made by this section on improving
compliance with the requirements of the Communications
Act of 1934, and with the rules, regulations, and
orders of the Commission thereunder. Such evaluation
shall include--
(A) an assessment of the number of
enforcement proceedings commenced before and
after such date of enactment;
(B) an analysis of any changes in the number,
type, seriousness, or repetition of violations;
and
(C) an analysis of such other factors as the
Commission considers appropriate to evaluate
such impact.
(2) Report.--Within one year after such date of
enactment, the Commission shall submit a report on the
evaluation to the Committee on Energy and Commerce of
the House of Representatives and the Committee on
Commerce, Science, and Transportation of the Senate.
----------
2. An Amendment To Be Offered by Representative Cannon of Utah, or a
Designee, Debatable for 60 Minutes
Page 6, beginning on line 5, strike ``neither the Commission,
nor any State, shall have'' and insert ``the Commission shall
have no''.
Page 6, beginning on line 15, strike ``State to regulate
circuit-switched telephone exchange services,'' and insert
``State,''.
Page 6, line 13, strike ``(b) Savings Provision.--'' and
insert the following:
``(b) Savings Provisions.--
``(1) State authority.--''.
Page 6, after line 18, insert the following new paragraphs:
``(2) Existing rules and competition preserved.--
Notwithstanding the limitations on Commission and State
authority contained in the Internet Freedom and
Broadband Deployment Act of 2001 (including the
amendments made by such Act), in order to preserve and
promote fair competition, innovation, economic
investment, and consumer choice, no provision of such
Act or amendments shall restrict or affect in any way
the application and enforcement of the Federal and
State rules in effect on the date of enactment of such
Act relating to the rates, charges, terms, and
conditions for the purchasing or leasing of
telecommunications services and network elements by
competitive telecommunications carriers.
``(3) Additional commission authority preserved.--
Notwithstanding the limitations on Commission authority
contained in the Internet Freedom and Broadband
Deployment Act of 2001 (including the amendments made
by such Act), such Act and amendments shall not
restrict or affect in any way--
``(A) the authority of the Commission to
adopt regulations to prohibit unsolicited
commercial e-mail messages;
``(B) the authority of the Commission to
regulate changes in subscriber carrier
selections or the imposition of charges on
telephone bills for unauthorized services; or
``(C) the authority of the Commission--
``(i) with respect to customer
proprietary network information, as
provided in section 222;
``(ii) with respect to rules and
procedures adopted pursuant to section
223 to restrict the provision of
pornography to minors and unconsenting
adults; or
``(iii) with respect to access by
persons with disabilities, as provided
in section 255.
Page 7, beginning on line 11, strike ``neither the Commission
nor any State shall require'' and insert ``the Commission shall
not require''.
Page 12, beginning on line 23, strike ``Internet access'' and
insert ``such''.
----------
3. An Amendment To Be Offered by Representative Buyer of Indiana, or a
Designee, as a Substitute for the Amendment Numbered 2, To Be Offered
by Representative Cannon of Utah, or a Designee, Debatable for 60
Minutes
Page 6, beginning on line 9, strike ``, or to regulate any
network element to the extent it is used in the provision of
any such service''.
Page 7, strike line 7 and all that follows through line 2 on
page 9 and insert the following:
``(j) Guaranteed Access to Consumers for CLECs.--
``(1) Access rules.--
``(A) Preservation of rules guaranteeing clec
access to incumbent carrier facilities.--Except
as provided in subparagraph (E), the Commission
is not required to repeal or modify the
regulations in effect on May 24, 2001, that
enable a requesting carrier to use the
facilities of an incumbent local exchange
carrier to provide high speed data services.
``(B) Transport services available to
clecs.--
``(i) Offering required.--If an
incumbent local exchange carrier
provides high-speed data services over
a fiber local loop or fiber feeder
subloop, that carrier shall offer, over
such loop or subloop for delivery at
the incumbent local exchange carrier's
serving central office, a high speed
data service that is provided by such
carrier utilizing an industry-standard
protocol.
``(ii) Transmission options.--Such
service shall enable a requesting
carrier to transmit information over an
incumbent local exchange carrier's
facilities between that incumbent local
exchange carrier's serving central
office and (I) a customer's premises
served by that serving central office;
(II) a remote terminal supplied by the
requesting carrier; or (III) a high
frequency portion of the copper subloop
obtained by such requesting carrier
pursuant to the provisions of
subsection (c)(3).
``(iii) Rates, terms, and
conditions.--Such high speed data
service shall be offered on rates,
terms, and conditions that are just and
reasonable in accordance with section
201(b). For such purposes, such high
speed data service shall be deemed a
nondominant service.
``(iv) Serving central office
definition.--For the purpose of this
subparagraph, the term `serving central
office' means the centralized location
where the incumbent local exchange
carrier has elected to provide access
to the high speed data service required
by this subparagraph.
``(C) Space adjacent to an incumbent's remote
terminal.--Subparagraph (E)(iii) does not
relieve an incumbent carrier of any obligation
under regulations in effect on May 24, 2001, to
provide space adjacent to its remote terminal
to a requesting carrier so that the requesting
carrier may construct its own remote terminal.
``(D) Clec access to incumbent carrier
rights-of-way.--Any incumbent local exchange
carrier has the duty to afford access to its
poles, conduits, and rights-of-way in
accordance with subsection (b)(4) for provision
of high speed data service.
``(E) Scope.--Notwithstanding any provision
of law, neither the Commission nor any State
shall--
``(i) require an incumbent local
exchange carrier to provide unbundled
access in accordance with subsection
(c)(3) to any packet switching network
element;
``(ii) require an incumbent local
exchange carrier to provide, for the
provision of high speed data service,
access on an unbundled basis in
accordance with subsection (c)(3) to
any fiber local loop or fiber feeder
subloop; or
``(iii) require an incumbent local
exchange carrier to provide for
collocation in accordance with
subsection (c)(6) in a remote terminal,
or to construct or make available space
in a remote terminal.
``(F) Reinterpretation.--Consistent with
subparagraph (E), neither the Commission nor
any State shall construe, interpret, or apply
this section in such a manner as to expand an
incumbent local exchange carrier's obligation,
as in effect on May 24, 2001, to provide access
in accordance with subsection (c)(3) to any
network element for the provision of high speed
data service, or to provide collocation in
accordance with subsection (c)(6) for the
provision of high speed data service.
Page 9, lines 3 and 15, redesignate subparagraphs (E) and (F)
as subparagraphs (G) and (H), respectively.
Page 10, beginning on line 11, strike paragraph (3) through
page 11, line 3, and insert the following:
``(3) Definitions.--For purposes of this subsection--
``(A) the term `fiber feeder subloop' means
the entirely fiber optic cable portion of the
local loop between the feeder/distribution
interface (or its equivalent) and a
distribution frame (or its equivalent) in an
incumbent local exchange carrier central
office, including all features, functions, and
capabilities of such portion of the local loop;
``(B) the term `fiber local loop' means an
entirely fiber optic cable transmission
facility, including all features, functions,
and capabilities of such transmission facility,
between a distribution frame (or its
equivalent) in an incumbent local exchange
carrier central office and the loop demarcation
point at an end-user customer premise;
``(C) the term `packet switching network
element'--
``(i) means a network element that
performs, or offers the capability to
perform--
``(I) the basic packet
switching function of routing
or forwarding packets, frames,
cells, or other data units
based on address or other
routing information contained
in the packets, frames, cells,
or other data units, including
the functions that are
performed by digital subscriber
line access multiplexers; or
``(II) any successor to the
functions described in clause
(i);
``(ii) includes such element on a
stand-alone basis, or as a part of a
combination with one or more other
network elements; and
``(iii) does not include elements of
the signaling system 7 network
transmitting signaling information
between switching points;
``(D) the term `remote terminal' means a
controlled environment hut, controlled
environment vault, cabinet, or other structure
at a remote location between the central office
and a customer's premises; and
``(E) the term `signaling system 7 network'
means the network that uses signaling links to
transmit routing messages between switches and
between switches and call related data
bases.''.
Page 7, line 3, strike the close quotation marks and the
following period, and after such line insert the following:
``(d) Additional Commission Authority Preserved.--
Notwithstanding subsection (a), such subsection shall not
restrict or affect in any way the authority of the Commission--
``(1) to adopt regulations to prohibit unsolicited
commercial e-mail messages;
``(2) to regulate changes in subscriber carrier
selections or the imposition of charges on telephone
bills for unauthorized services; or
``(3) with respect to--
``(A) customer proprietary network
information, as provided in section 222;
``(B) with respect to rules and procedures
adopted pursuant to section 223 to restrict the
provision of pornography to minors and
unconsenting adults; or
``(C) with respect to access by persons with
disabilities, as provided in section 255.''.
Page 6, line 12, insert before the period the following:
``that is not imposed or required on the date of enactment of
this section''.