Telecommunications Competition Enforcement Act of 1999

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Telecommunications Competition 
Enforcement Act of 1999''.

SEC. 2. FINDINGS.

    The Congress finds:
            (1) The Telecommunications Act of 1996 put in place the 
        proper framework to achieve competition in local 
        telecommunications markets.
            (2) The Telecommunications Act of 1996 required that all 
        incumbent local exchange carriers open their markets to 
        competition by interconnecting with and providing network 
        access to new entrants, a process to be overseen by Federal and 
        State regulators.
            (3) To increase the incentives of the Bell operating 
        companies to open their local networks to competition, the 
        Telecommunications Act of 1996 allows the Bell operating 
        companies to provide interLATA long distance service in their 
        service region only after opening their local networks to 
        competition.
            (4) While significant progress has been made in opening 
        local telecommunications markets, 3 years after passage of the 
        Act, not a single Bell operating company has opened its network 
        to competition as required by the Telecommunications Act of 
        1996.
            (5) It is apparent that the incumbent local exchange 
        carriers do not have adequate incentives to cooperate in this 
        process and that regulators have not exercised their 
        enforcement authority to require compliance.
            (6) By improving mandatory penalties on Bell operating 
        companies and incumbent telephone companies that have not 
        opened their network to competition, there will be greater 
        assurance that local telecommunications markets will be opened 
        more expeditiously and, as a result, American consumers will 
        obtain the full benefits of competition.

SEC. 3. PURPOSE.

    The purpose of this Act is to impose penalties on telephone 
companies that have not complied with the Telecommunications Act of 
1996 in order to ensure that local telecommunications markets are 
opened more rapidly to full, robust, and sustainable competition.

SEC. 4. ENFORCEMENT AUTHORITY.

    Title 2 of the Communications Act of 1934 (47 U.S.C. 201 et seq.) 
is amended by adding at the end the following new section:

``SEC. 262. ENFORCEMENT AUTHORITY.

    ``(a) In General.--
            ``(1) If the Commission finds that a Bell operating company 
        has not fully implemented the competitive checklist in section 
        271(c)(2)(B) for all telecommunications (including voice, 
        video, and data) for at least one-half of the States in its 
        region by February 8, 2001, as determined by the Commission 
        under Commission policies adopted as of June 1, 1999, the 
        Commission shall assess on such company a forfeiture penalty of 
        $100,000 for each day of the continuing violation until the 
        Commission determines that the Bell operating company has fully 
        implemented section 271(c)(2)(B).
            ``(2) If the Commission finds that a Bell operating company 
        has not fully implemented the competitive checklist in section 
        271(c)(2)(B) for all telecommunications (including voice, 
        video, and data) in all States in its region by February 8, 
        2003, as determined by the Commission under Commission policies 
        adopted as of June 1, 1999, the Commission shall order the Bell 
        operating company to divest itself of its telecommunications 
        network facilities within 180 days in States in which it has 
        not fully implemented the requirements of section 271(c)(2)(B). 
        The Bell operating company owning or controlling those 
        telecommunications network facilities shall provide neither 
        telecommunications nor information services to subscribers who 
        are telecommunications carriers in States in which it is in 
        violation of section 271(c)(2)(B) until the Commission finds 
        that effective facilities-based local competition exists in the 
        relevant market.
    ``(b) Ensure Markets Are Open to Competition.--
            ``(1) For an incumbent local exchange carrier (as defined 
        in section 251(h)), other than a Bell operating company, with 
        more than 5 percent of the access lines in the nation the 
        Commission shall ensure, upon receipt of a petition from any 
        interested party, that the company's markets are open to 
        competition by completing an investigation within 120 days to 
        determine whether such incumbent local exchange carrier has 
        fully complied with section 251(c) for all telecommunications 
        (including voice, video, and data).
            ``(2) In determining compliance with section 251(c), the 
        Commission shall consult with the relevant State regulators and 
        shall use as a benchmark the practices and performance of other 
        incumbent local exchange carriers in the State and region.
            ``(3)(A) If the Commission finds that such incumbent local 
        exchange carrier is not in full compliance with section 251(c) 
        for all telecommunications (including voice, video, and data), 
        the Commission shall explicitly state the reasons for such 
        carrier not being in full compliance and allow the carrier 60 
        days to come into full compliance.
            ``(B) If such carrier does not come into full compliance at 
        the end of the 60-day period, the Commission shall--
                    ``(i) assess on the carrier a forfeiture penalty of 
                $50,000 per day of the continuing violation; and
                    ``(ii) order the carrier to cease and desist in 
                marketing and selling long distance services to new 
                customers.
        Such forfeiture penalty and cease and desist order shall 
        continue until the Commission finds that the carrier is in 
        compliance with section 251(c).
    ``(c) Post Approval Protections.--
            ``(1) In general.--If at any time after the approval of an 
        application consistent with the requirements of section 271, 
        the Commission determines that a Bell operating company has 
        ceased to meet one or more of the requirements of section 
        271(c)(2)(B) for all telecommunications (including voice, 
        video, and data), the Commission shall, after notice and 
        opportunity for a hearing assess on the company a forfeiture 
        penalty of $100,000 for each violation and for each day of the 
        continuing violation.
            ``(2) Penalty.--If at any time after the approval of an 
        application consistent with the requirements of section 271, 
        the Commission determines that a Bell operating company has 
        willfully, knowingly, and repeatedly ceased to meet one or more 
        of the requirements of section 271(c)(2)(B) for all 
        telecommunications (including voice, video, and data), the 
        Commission shall, after notice and opportunity for a hearing 
        order the company to divest itself of its telecommunications 
        network facilities within 180 days in States in which it has 
        ceased to meet the requirements of section 271(c)(2)(B).
    ``(d) Authority.--Notwithstanding any other provision of this Act, 
the Commission shall have full authority to order, implement, and 
enforce the provisions of this section. In implementing this section, 
the Commission shall ensure that it does not alter the policies and 
standards in effect as of June 1, 1999, for ensuring compliance with 
section 271 of the Act.
    ``(e) Additional Provisions.--The provisions of this section are in 
addition to the penalties and forfeitures provided by title 5 of this 
Act.''.

Summary: Telecommunications Competition Enforcement Act of 1999 - Amends the Communications Act of 1934 to mandate that if the Federal Communications Commission (FCC) finds that a Bell operating company (BOC) has not fully implemented the requirements under the Telecommunications Act of 1996 for full and open competition with regard to network access for all telecommunications for at least one-half of the States in its region by February 8, 2001, the FCC shall assess a forfeiture penalty of $100,000 per day for each day of continuing violation of such requirements. Provides that if such requirements are not met by a BOC by February 8, 2003, the FCC shall order the BOC to divest itself of its telecommunications network facilities within 180 days. Requires the FCC to ensure, for an incumbent local exchange carrier, other than a BOC, with more than five percent of the national access lines, that such company's markets are open to competition by completing an investigation within 120 days to determine whether such carrier has fully complied with such competition requirements for all telecommunications. Allows a noncomplying carrier 60 days to achieve such compliance, with penalties for violations after such period. Allows the FCC to assess forfeiture penalties on a BOC if, at any time after its approval, the FCC determines that such BOC has ceased to meet the open competition requirements.