A bill to facilitate the creation of a new, second-level Internet domain within the United States country code domain that will be a haven for material that promotes positive experiences for children and families using the Internet, provides a safe online environment for children, and helps to prevent children from being exposed to harmful material on the Internet, and for other purposes.

Summary: Dot Kids Implementation and Efficiency Act of 2002 - Amends the National Telecommunications and Information Administration Organization Act to direct the Secretary of Commerce to assign to the National Telecommunications and Information Administration (NTIA) responsibility for providing for the establishment, and overseeing operation, of a second-level Internet domain within the U.S. country code domain that provides access only to materials suitable for, and not harmful to, minors. Directs NTIA to require the same registry selected to operate and maintain the U.S. country code Internet domain to establish, operate, and maintain such second-level domain. Prohibits NTIA from renewing any contract to operate and maintain the domain with the initial registry, or to enter into or renew a contract with a successor registry, unless such registry enters into an agreement with NTIA which requires the registry to carry out, and the new domain to operate under, specified requirements.Requires NTIA to publicize the availability of the new domain and to educate parents of minors regarding the process for utilizing such domain in coordination with filtering or blocking technologies.Allows a registry, upon a showing of extreme financial hardship, to relinquish the right to operate and maintain the new domain and requires NTIA to then select, under a competitive bidding process, a contractor to operate and maintain such domain. Prohibits the registry from relinquishing such right before the end of the three-year period following the enactment of this Act.Authorizes NTIA to suspend from new domain operation a registry found not to be serving its intended purpose.

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Dot Kids Implementation and 
Efficiency Act of 2002''.

SEC. 2. FINDINGS AND PURPOSES.

    (a) Findings.--The Congress finds that--
            (1) the World Wide Web presents a stimulating and 
        entertaining opportunity for children to learn, grow, and 
        develop educationally and intellectually;
            (2) Internet technology also makes available an extensive 
        amount of information that is harmful to children, as studies 
        indicate that a significant portion of all material available 
        on the Internet is related to pornography;
            (3) young children, when trying to use the World Wide Web 
        for positive purposes, are often presented--either mistakenly 
        or intentionally--with material that is inappropriate for their 
        age, which can be extremely frustrating for children, parents, 
        and educators;
            (4) exposure of children to material that is inappropriate 
        for them, including pornography, can distort the education and 
        development of the Nation's youth and represents a serious harm 
        to American families that can lead to a host of other problems 
        for children, including inappropriate use of chat rooms, 
        physical molestation, harassment, and legal and financial 
        difficulties;
            (5) young boys and girls, older teens, troubled youth, 
        frequent Internet users, chat room participants, online risk 
        takers, and those who communicate online with strangers are at 
        greater risk for receiving unwanted sexual solicitation on the 
        Internet;
            (6) studies have shown that 19 percent of youth (ages 10 to 
        17) who used the Internet regularly were the targets of 
        unwanted sexual solicitation, but less than 10 percent of the 
        solicitations were reported to the police;
            (7) children who come across illegal content should report 
        it to the congressionally authorized CyberTipline, an online 
        mechanism developed by the National Center for Missing and 
        Exploited Children, for citizens to report sexual crimes 
        against children;
            (8) the CyberTipline has received more than 64,400 reports, 
        including reports of child pornography, online enticement for 
        sexual acts, child molestation (outside the family), and child 
        prostitution;
            (9) although the computer software and hardware industries, 
        and other related industries, have developed innovative ways to 
        help parents and educators restrict material that is harmful to 
        minors through parental control protections and self-
        regulation, to date such efforts have not provided a national 
        solution to the problem of minors accessing harmful material on 
        the World Wide Web;
            (10) the creation of a ``green-light'' area within the 
        United States country code Internet domain, that will contain 
        only content that is appropriate for children under the age of 
        13, is analogous to the creation of a children's section within 
        a library and will promote the positive experiences of children 
        and families in the United States; and
            (11) while custody, care, and nurture of the child reside 
        first with the parent, the protection of the physical and 
        psychological well-being of minors by shielding them from 
        material that is harmful to them is a compelling governmental 
        interest.
    (b) Purposes.--The purposes of this Act are--
            (1) to facilitate the creation of a second-level domain 
        within the United States country code Internet domain for the 
        location of material that is suitable for minors and not 
        harmful to minors; and
            (2) to ensure that the National Telecommunications and 
        Information Administration oversees the creation of such a 
        second-level domain and ensures the effective and efficient 
        establishment and operation of the new domain.

SEC. 3. NTIA AUTHORITY.

    Section 103(b)(3) of the National Telecommunications and 
Information Administration Organization Act (47 U.S.C. 902(b)(3)) is 
amended--
            (1) in subparagraph (A), by striking ``and'' at the end;
            (2) in subparagraph (B), by striking the period at the end 
        and inserting ``; and''; and
            (3) by adding at the end the following new subparagraph:
                    ``(C) shall assign to the NTIA responsibility for 
                providing for the establishment, and overseeing 
                operation, of a second-level Internet domain within the 
                United States country code domain in accordance with 
                section 157.''.

SEC. 4. CHILD-FRIENDLY SECOND-LEVEL INTERNET DOMAIN.

    The National Telecommunications and Information Administration 
Organization Act (47 U.S.C. 901 et seq.) is amended in part C by adding 
at the end the following new section:

``SEC. 157. CHILD-FRIENDLY SECOND-LEVEL INTERNET DOMAIN.

    ``(a) Responsibilities.--The NTIA shall require the registry 
selected to operate and maintain the United States country code 
Internet domain to establish, operate, and maintain a second-level 
domain within the United States country code domain that provides 
access only to material that is suitable for minors and not harmful to 
minors (in this section referred to as the `new domain').
    ``(b) Conditions of Contract Renewal.--The NTIA may not renew any 
contract to operate and maintain the domain with the initial registry, 
or enter into or renew any such contract with any successor registry, 
unless such registry enters into an agreement with the NTIA, during the 
90-day period beginning upon the date of the enactment of the Dot Kids 
Implementation and Efficiency Act of 2002 in the case of the initial 
registry or during the 90-day period after selection in the case of any 
successor registry, as applicable, which provides for the registry to 
carry out, and the new domain operates pursuant to, the following 
requirements:
            ``(1) Written content standards for the new domain, except 
        that the NTIA shall not have any authority to establish such 
        standards.
            ``(2) Written agreements with each registrar for the new 
        domain that require that use of the new domain is in accordance 
        with the standards and requirements of the registry.
            ``(3) Written agreements with registrars, which shall 
        require registrars to enter into written agreements with 
        registrants, to use the new domain in accordance with the 
        standards and requirements of the registry.
            ``(4) Rules and procedures for enforcement and oversight 
        that minimize the possibility that the new domain provides 
        access to content that is not in accordance with the standards 
        and requirements of the registry.
            ``(5) A process for removing from the new domain any 
        content that is not in accordance with the standards and 
        requirements of the registry.
            ``(6) A process to provide registrants to the new domain 
        with an opportunity for a prompt, expeditious, and impartial 
        dispute resolution process regarding any material of the 
        registrant excluded from the new domain.
            ``(7) Continuous and uninterrupted service for the new 
        domain during any transition to a new registry selected to 
        operate and maintain new domain or the United States country 
        code domain.
            ``(8) Procedures and mechanisms to promote the accuracy of 
        contact information submitted by registrants and retained by 
        registrars in the new domain.
            ``(9) Operationality of the new domain not later than one 
        year after the date of the enactment of the Dot Kids 
        Implementation and Efficiency Act of 2002.
            ``(10) Written agreements with registrars, which shall 
        require registrars to enter into written agreements with 
        registrants, to prohibit two-way and multiuser interactive 
        services in the new domain, unless the registrant certifies to 
        the registrar that such service will be offered in compliance 
        with the content standards established pursuant to paragraph 
        (1) and is specifically constructed and operated to protect 
        minors from harm.
            ``(11) Written agreements with registrars, which shall 
        require registrars to enter into written agreements with 
        registrants, to prohibit hyperlinks in the new domain that take 
        new domain users outside of the new domain.
            ``(12) Any other action that the NTIA considers necessary 
        to establish, operate, or maintain the new domain in accordance 
        with the purposes of this section.
    ``(c) Treatment of Registry and Other Entities.--
            ``(1) In general.--Only to the extent that such entities 
        carry out functions under this section, the following entities 
        are deemed to be interactive computer services for purposes of 
        section 230(c) of the Communications Act of 1934 (47 U.S.C. 
        230(c)):
                    ``(A) The registry that operates and maintains the 
                new domain.
                    ``(B) Any entity that contracts with such registry 
                to carry out functions to ensure that content accessed 
                through the new domain complies with the limitations 
                applicable to the new domain.
                    ``(C) Any registrar for the registry of the new 
                domain that is operating in compliance with its 
                agreement with the registry.
            ``(2) Savings provision.--Nothing in paragraph (1) shall be 
        construed to affect the applicability of any other provision of 
        title II of the Communications Act of 1934 to the entities 
        covered by subparagraph (A), (B), or (C) of paragraph (1).
    ``(d) Education.--The NTIA shall carry out a program to publicize 
the availability of the new domain and to educate the parents of minors 
regarding the process for utilizing the new domain in combination and 
coordination with hardware and software technologies that provide for 
filtering or blocking. The program under this subsection shall be 
commenced not later than 30 days after the date that the new domain 
first becomes operational and accessible by the public.
    ``(e) Coordination With Federal Government.--The registry selected 
to operate and maintain the new domain shall--
            ``(1) consult with appropriate agencies of the Federal 
        Government regarding procedures and actions to prevent minors 
        and families who use the new domain from being targeted by 
        adults and other children for predatory behavior, exploitation, 
        or illegal actions; and
            ``(2) based upon the consultations conducted pursuant to 
        paragraph (1), establish such procedures and take such actions 
        as the registry may deem necessary to prevent such targeting.
The consultations, procedures, and actions required under this 
subsection shall be commenced not later than 30 days after the date 
that the new domain first becomes operational and accessible by the 
public.
    ``(f) Compliance Report.--The registry shall prepare, on an annual 
basis, a report on the registry's monitoring and enforcement procedures 
for the new domain. The registry shall submit each such report, setting 
forth the results of the review of its monitoring and enforcement 
procedures for the new domain, to the Committee on Energy and Commerce 
of the House of Representatives and the Committee on Commerce, Science, 
and Transportation of the Senate.
    ``(g) Selection of Contractor.--
            ``(1) Withdrawal of registry.--
                    ``(A) Election by registry.--Upon a good faith 
                showing by the registry of the new domain to the NTIA 
                of extreme financial hardship in the operation of the 
                new domain occurring any time after the date of the 
                enactment of the Dot Kids Implementation and Efficiency 
                Act of 2002, the registry may elect to relinquish the 
                right to operate and maintain the new domain. 
                Notwithstanding the time of occurrence of such extreme 
                financial hardship or the time of such election, the 
                registry may not relinquish such right before the 
                expiration of the 3-year period beginning upon such 
                date of enactment.
                    ``(B) Selection of new contractor.--If the registry 
                elects to relinquish such right pursuant to 
                subparagraph (A), the NTIA shall select a contractor to 
                operate and maintain the new domain under the 
                competitive bidding process established pursuant to 
                paragraph (2).
                    ``(C) Extreme financial hardship.--For purposes of 
                this paragraph, the term `extreme financial hardship' 
                means that each quarter, for a period of 6 or more 
                consecutive quarters, the costs of establishing, 
                operating, and maintaining the new domain exceed the 
                revenues generated from registrants by more than 25 
                percent.
            ``(2) Competitive bid selection process.--The NTIA shall 
        establish a process for soliciting applications and selecting a 
        contractor to operate and maintain the new domain pursuant to 
        this subsection), which process shall comply with the following 
        requirements:
                    ``(A) Timing.--The selection process shall commence 
                and complete not later than (i) 120 days after the 
                registry elects to relinquish the new domain for 
                extreme financial hardship, or (ii) the expiration of a 
                contract referred to in paragraph (4), as applicable.
                    ``(B) Notice.--The selection process shall provide 
                adequate notice to prospective applicants of--
                            ``(i) the opportunity to submit such an 
                        application; and
                            ``(ii) the criteria for selection under 
                        subparagraph (C).
                    ``(C) Criteria.--The selection shall be made 
                pursuant to written, objective criteria designed to 
                ensure--
                            ``(i) that the new domain is operated and 
                        maintained in accordance with the requirements 
                        under subsection (b); and
                            ``(ii) that the contractor selected to 
                        operate and maintain the new domain is the 
                        applicant most capable and qualified to do so.
                    ``(D) Review.--Not more than 60 days after the 
                conclusion of the period established for submission of 
                applications, the NTIA shall--
                            ``(i) review and apply the selection 
                        criteria established under subparagraph (C) to 
                        each application submitted; and
                            ``(ii) based upon such criteria and subject 
                        to submission of an application meeting such 
                        criteria, select an application and award to 
                        the applicant a subcontract for the operation 
                        and maintenance of the new domain.
                    ``(E) Failure to find contractor.--If the NTIA 
                fails to find a suitable contractor pursuant to the 
                process under this paragraph, the NTIA shall permit the 
                registry to cease operation of the new domain.
            ``(3) Rights and duties.--A contractor selected pursuant to 
        this subsection shall have all of the rights and duties of the 
        registry specified under this section, except that such duties 
        shall not include the technical maintenance of the new domain.
            ``(4) Conditions of contract renewal.--In the case of the 
        expiration of a contract for operation and maintenance of the 
        new domain with a contractor selected pursuant to paragraph 
        (2), the NTIA may renew such contract or, subject to paragraph 
        (2), rebid the contract to a new contractor. Nothing in this 
        section shall be construed to prevent the registry of the 
        United States country code Internet domain from bidding to 
        become the contractor of the new domain.
    ``(h) Suspension of New Domain.--If the NTIA finds, pursuant to its 
own review or upon a good faith petition by the registry, that the new 
domain is not serving its intended purpose, the NTIA shall instruct the 
registry to suspend operation of the new domain until such time as the 
NTIA determines that the new domain can be operated as intended.
    ``(i) Definitions.--For purposes of this section, the following 
definitions shall apply:
            ``(1) Harmful to minors.--The term `harmful to minors' 
        means, with respect to material, that--
                    ``(A) the average person, applying contemporary 
                community standards, would find, taking the material as 
                a whole and with respect to minors, that it is designed 
                to appeal to, or is designed to pander to, the prurient 
                interest;
                    ``(B) the material depicts, describes, or 
                represents, in a manner patently offensive with respect 
                to minors, an actual or simulated sexual act or sexual 
                contact, an actual or simulated normal or perverted 
                sexual act, or a lewd exhibition of the genitals or 
                post-pubescent female breast; and
                    ``(C) taken as a whole, the material lacks serious, 
                literary, artistic, political, or scientific value for 
                minors.
            ``(2) Minor.--The term `minor' means any person under 13 
        years of age.
            ``(3) Registry.--The term `registry' means the registry 
        selected to operate and maintain the United States country code 
        Internet domain
            ``(4) Suitable for minors.--The term `suitable for minors' 
        means, with respect to material, that it--
                    ``(A) is not psychologically or intellectually 
                inappropriate for minors; and
                    ``(B) serves--
                            ``(i) the educational, informational, 
                        intellectual, or cognitive needs of minors; or
                            ``(ii) the social, emotional, or 
                        entertainment needs of minors.''.