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[Senate Report 110-245]
[From the U.S. Government Publishing Office]

110th Congress                                                   Report
                                 SENATE
 1st Session                                                    110-245
_______________________________________________________________________

                                                       Calendar No. 538
 
              PROTECTING CHILDREN IN THE 21ST CENTURY ACT

                               __________

                              R E P O R T

                                 OF THE

           COMMITTEE ON COMMERCE, SCIENCE, AND TRANSPORTATION

                                   on

                                S. 1965

                                     

               December 12, 2007.--Ordered to be printed
       SENATE COMMITTEE ON COMMERCE, SCIENCE, AND TRANSPORTATION
                       one hundred tenth congress
                             first session

                   DANIEL K. INOUYE, Hawaii, Chairman
                   TED STEVENS, Alaska, Vice-Chairman
JOHN D. ROCKEFELLER IV, West         JOHN McCAIN, Arizona
    Virginia                         TRENT LOTT, Mississippi
JOHN F. KERRY, Massachusetts         KAY BAILEY HUTCHISON, Texas
BYRON L. DORGAN, North Dakota        OLYMPIA J. SNOWE, Maine
BARBARA BOXER, California            GORDON H. SMITH, Oregon
BILL NELSON, Florida                 JOHN ENSIGN, Nevada
MARIA CANTWELL, Washington           JOHN E. SUNUNU, New Hampshire
FRANK R. LAUTENBERG, New Jersey      JIM DeMINT, South Carolina
MARK PRYOR, Arkansas                 DAVID VITTER, Louisiana
THOMAS CARPER, Delaware              JOHN THUNE, South Dakota
CLAIRE McCASKILL, Missouri
AMY KLOBUCHAR, Minnesota
          Margaret Cummisky, Staff Director and Chief Counsel
         Lila Helms, Deputy Staff Director and Policy Director
       Jean Toal Eisen, Senior Advisor and Deputy Policy Director
     Christine Kurth, Republican Staff Director and General Counsel
                Paul J. Nagle, Republican Chief Counsel
             Mimi Braniff, Republican Deputy Chief Counsel

                                                       Calendar No. 538
110th Congress                                                   Report
                                 SENATE
 1st Session                                                    110-245

======================================================================

              PROTECTING CHILDREN IN THE 21ST CENTURY ACT

                                _______
                                

               December 12, 2007.--Ordered to be printed

                                _______
                                

       Mr. Inouye, from the Committee on Commerce, Science, and 
                Transportation, submitted the following

                                 REPORT

                         [To accompany S. 1965]

    The Committee on Commerce, Science, and Transportation, to 
which was referred the bill (S. 1965) to protect children from 
cybercrimes, including crimes by online predators, to enhance 
efforts to identify and eliminate child pornography, and to 
help parents shield their children from material that is 
inappropriate for minors, having considered the same, reports 
favorably thereon with amendments and recommends that the bill 
(as amended) do pass.

                          Purpose of the Bill

  The purpose of S. 1965 is to assist parents in protecting 
their children from harmful content on the Internet and in 
educating children about potential dangers associated with 
inappropriate online communications. Toward these ends, the 
bill focuses on several strategies to improve online safety and 
to prevent the exploitation of children online. The bill would 
require the Federal Trade Commission to coordinate and 
implement a national public awareness and education campaign 
focused on strategies promoting the safe use of the Internet by 
children. The bill would also direct the Assistant Secretary of 
Commerce for Communications and Information to create a private 
sector working group to review and evaluate the status of 
industry efforts to promote online safety. The bill would 
require schools receiving universal service funds from the 
Federal ``e-rate'' program to ensure that their Internet safety 
policies include education about appropriate online behavior. 
Finally, the bill would increase maximum fines that may be 
assessed against certain Internet service providers for failing 
to report child pornography and would strengthen the ability of 
law enforcement personnel and the National Center for Missing 
and Exploited Children (NCMEC) to share information with 
certain relevant parties.

                          Background and Needs

  The Internet is a valuable educational and social resource 
for children. Used safely, it can offer children access to a 
wealth of information and material and can provide a means to 
exchange ideas with other social peers. However, this positive 
tool also includes hidden dangers. The wealth of information 
available on the Internet includes significant amounts of 
material that may not be suitable for children. Additionally, 
the anonymity of the Internet and the susceptibility of 
children raise particular dangers with respect to invasions of 
privacy and threats from online predators. These dangers have 
only become more pronounced as individuals use the Internet not 
only to find information, but increasingly to convey personal 
information about themselves on personal Web pages or though 
social networking sites like MySpace or Facebook.
  According to a 2007 Pew Internet survey, 93 percent of all 
Americans between 12 and 17 years old use the Internet, 
demonstrating a steady rise from 87 percent in 2004 and 73 
percent in 2000. Moreover, not only are more teens online, but 
they are also using the Internet more intensely now than in the 
past, with 89 percent percent of online teens using the 
Internet at least once a week and 61 percent using it daily.
  Accordingly, efforts to promote a safe, online environment 
are critical components of ensuring that the promise of 
communications technologies can be fully embraced by parents 
and children alike. There is no single solution to protecting 
children on the Internet. Instead, protection requires a multi-
layered approach that relies on social and educational 
strategies to teach responsible and safe use coupled with 
technology, public policy, and law enforcement to shape the 
online environment that children experience.
  Child Pornography and the Internet. Unfortunately, the growth 
of broadband and the anonymity of the Internet have resulted in 
a significant increase in the distribution of illegal, child 
pornography. Commercial child pornography is a multi-billion 
dollar, worldwide industry. While the exact scope of the 
problem of child pornography is difficult to determine, it is 
clear that the problem has exploded with the advent of the 
Internet. NCMEC reported that it had received an increase of 
reports to its CyberTipline from more than 24,400 in 2001 to 
more than 340,000 by the beginning of 2006. Moreover, NCMEC 
found that 19 percent of identified sex offenders had images of 
children younger than 3 years old; 39 percent had images of 
children younger than 6 years old; and 83 percent had images of 
children younger than 12 years old.
  Protecting Children from Inappropriate Content. Beyond 
concerns about the victimization of children in pornography 
parents are also concerned with shielding their children from 
adult pornography that may be easily accessible over the 
Internet. Easy access to pornography through the Internet 
threatens to dramatically reshape a child's perception about 
sex and body image.
  According to a 2001 study by the Kaiser Family Foundation, 70 
percent of the nation's 15 to 17 year olds have looked at 
Internet pornography, much of it graphically hardcore, with 
just under half (45 percent) saying that they were upset by the 
experience. While filtering technologies and other methods to 
control children's access to pornography are available, 
parents' lack of familiarity with these tools and the rapid 
development of technologies to defeat such tools leave parents 
feeling as if they are fighting a losing battle to limit their 
children's exposure to sexually explicit content.
  In May 2002, at the direction of Congress, the National 
Academy of Sciences issued a report reviewing computer-based 
technologies and other approaches to the problem of the 
availability of pornographic material to children on the 
Internet. This report, titled Youth, Pornography, and the 
Internet, was prepared by a committee chaired by former U.S. 
Attorney General Richard Thornburgh. According to the 
Thornburgh Report, the nature of the Internet posed particular 
challenges to parents seeking to protect their children from 
inappropriate material in that:
          ``Compared to other media, the Internet has 
        characteristics that make it harder for adults to 
        exercise responsible supervision over children's use of 
        it. A particularly worrisome aspect of the Internet is 
        that inappropriate sexually explicit material can find 
        its way onto children's computer screens without being 
        actively sought. Further, it is easy to find on today's 
        Internet not only images of naked people, but also 
        graphically depicted acts of heterosexual and 
        homosexual intercourse (including penetration), 
        fellatio, cunnilingus, masturbation, bestiality, child 
        pornography, sadomasochism, bondage, rape, incest, and 
        so on. While some such material can be found in 
        sexually explicit videos and print media that are 
        readily available in hotels, video rental stores, and 
        newsstands, other sexually explicit material on the 
        Internet is arguably more extreme than material that is 
        easily available through non-Internet media.''
  While acknowledging the additional risks arising from the 
ease of access and anonymity on the Internet, the Thornburgh 
Report was careful to conclude that:
          ``[t]here is no single or simple answer to 
        controlling the access of minors to inappropriate 
        material on the Web. To date, most of the efforts to 
        protect children from inappropriate sexually explicit 
        material on the Internet have focused on technology-
        based tools such as filters and legal prohibitions or 
        regulation. But the committee believes that neither 
        technology nor policy can provide a complete--or even a 
        nearly complete--solution. While both technology and 
        public policy have important roles to play, social and 
        educational strategies to develop in minors an ethic of 
        responsible choice and the skills to effectuate these 
        choices and to cope with exposure are foundational to 
        protecting children from negative effects that may 
        result from exposure to inappropriate material or 
        experiences on the Internet. . .''.
  According to a recent 2007 Pew Internet survey, 54 percent of 
parents say that they have a filter installed on the computer 
that their child uses at home, and 45 percent of parents say 
that they have monitoring software installed on the computer 
that the teen uses at home. Similar data was revealed in a 2007 
Kaiser Family Foundation report which found that among parents 
with children age 9 or older who use the Internet at home, 41 
percent say they use parental controls to block access to 
certain websites.
  Protecting Children from Inappropriate Communication. In 
addition to concerns arising from the availability of unsavory 
content, the anonymity of the Internet and the willingness of 
children to communicate and share information raise additional 
concerns related to privacy, harassment or ``cyberbullying,'' 
and potential safety risks from online predators.
  Much of the recent media coverage surrounding dangers faced 
by children online has focused on the increasing popularity of 
social networking sites like MySpace or Facebook. More basic 
social networking sites provide an online location where a user 
can create a profile and build a personal network that connects 
him or her to other users. In the past five years, such sites 
have rocketed from a niche activity into a phenomenon that 
engages tens of millions of Internet users. The explosive 
growth in the popularity of these sites has generated concerns 
among some parents, school officials, and government leaders 
about the potential risks posed when personal information is 
made available in such a public setting.
  These fears are heightened by data reflecting attitudes among 
teens related to their willingness to post personal 
information. According to one recent survey sponsored by Cox 
Communications in partnership with NCMEC, a majority of teens 
(58 percent) do not think posting photos or other personal 
information on social networking sites is unsafe. According to 
this same study, 64 percent post photos or videos of 
themselves, while 58 percent post info about where they live, 
and 8 percent have posted their cell phone number online.
  In April 2007, the Pew Internet & American Life Project 
released the results of a recent survey titled Teens, Privacy 
and Online Social Networks that examined teenage use of social 
networks and their understanding of the implications of sharing 
their personal information online. According to that survey, 32 
percent of online teenagers (and 43 percent of social-
networking teens) have been contacted online by complete 
strangers, and 17 percent of online teens (31 percent of social 
networking teens) have ``friends'' on their social network 
profile who they have never personally met.

                         Summary of Provisions

  S. 1965 focuses on a variety of measures designed to improve 
the safety of children online. The bill would direct the 
Federal Trade Commission to carry out a nationwide program to 
increase public awareness and provide education promoting the 
safe use of the Internet by children. It also would direct the 
Assistant Secretary of Commerce for Communications and 
Information to establish an Online Safety and Technology 
working group to review industry efforts to promote online 
safety for children. Further, S. 1965 would amend the 
Communications Act of 1934 to require schools to educate minors 
about appropriate online behavior and to impose a forfeiture 
penalty on certain Internet service providers who violate 
requirements to report online child pornography. Finally, the 
bill would strengthen existing enforcement strategies by 
tripling the maximum fines that may be levied on providers of 
electronic communication services or remote computing services 
who knowingly and willfully fail to report child pornography, 
by requiring reporting of online child pornography to foreign 
law enforcement agencies, and by authorizing the NCMEC to 
provide elements of images relating to child pornography to 
electronic communication service providers for the purpose of 
stopping further transmission of such images and developing 
anti-child pornography technologies.

                          Legislative History

  The Protecting Children in the 21st Century Act (S. 1965) was 
introduced by Senator Ted Stevens on August 2, 2007, and 
referred to the Senate Committee on Commerce, Science, and 
Transportation. The bill is cosponsored by 16 Senators 
including Senators Inouye, Hutchinson, Nelson (FL), Pryor, 
Rockefeller, Kerry, Klobuchar, Smith, Snowe, and Thune. On July 
24, 2007, the Committee held a hearing on ``Protecting Children 
on the Internet.'' On September 27, 2007, the Committee 
considered the bill in an open Executive Session. Chairman 
Inouye and Vice-Chairman Stevens offered an amendment making 
minor technical changes. The amendment and bill were both 
adopted by voice vote. The Committee, by voice vote, ordered 
that S. 1965 be reported.

                            Estimated Costs

  In accordance with paragraph 11(a) of rule XXVI of the 
Standing Rules of the Senate and section 403 of the 
Congressional Budget Act of 1974, the Committee provides the 
following cost estimate, prepared by the Congressional Budget 
Office:

                                     U.S. Congress,
                               Congressional Budget Office,
                                  Washington, DC, October 18, 2007.
Hon. Daniel K. Inouye
Chairman, Committee on Commerce, Science, and Transportation,
U.S. Senate, Washington, DC.
    Dear Mr. Chairman: The Congressional Budget Office has 
prepared the enclosed cost estimate for S. 1965, the Protecting 
Children in the 21st Century Act.
    If you wish further details on this estimate, we will be 
pleased to provide them.
    The CBO staff contact is Susan Willie.
            Sincerely,
                                         Robert A. Sunshine
                                   (For Peter R. Orszag, Director).
    Enclosure.

S. 1965--Protecting Children in the 21st Century Act

    Summary: S. 1965 would authorize the Federal Trade 
Commission (FTC) to develop a program to promote safe use of 
the Internet by children. The bill also would require the 
National Telecommunications and Information Administration 
(NTIA) to establish a working group to study and report to the 
Congress on actions taken by the telecommunications industry to 
promote a safe environment on the Internet for children. 
Finally, the bill would increase certain penalties on Internet 
service providers (ISPs) that fail to report child pornography 
to the appropriate federal authorities.
    CBO estimates that implementing S. 1965 would increase 
spending subject to appropriation by $4 million in 2008 and $10 
million over the 2008-2012 period, assuming that the authorized 
funds are appropriated. CBO expects that enacting the bill 
would not have a significant effect on collections from 
penalties, which are recorded in the budget as revenues, and 
would not affect direct spending.
    S. 1965 contains no intergovernmental mandates as defined 
in the Unfunded Mandates Reform Act (UMRA) and would impose no 
costs on state, local, or tribal governments.
    S. 1965 would impose a private-sector mandate as defined in 
UMRA on certain ISPs by requiring them to provide additional 
information when reporting suspected violations of child 
pornography laws to the National Center for Missing and 
Exploited Children (NCMEC). CBO expects that the cost to those 
providers of complying with this mandate would not be 
significant and would not exceed the annual threshold 
established by UMRA for private-sector mandates ($131 million 
in 2007, adjusted annually for inflation).
    Estimated cost to the federal government: The estimated 
budgetary impact of S. 1965 is shown in the following table. 
The costs of this legislation fall within budget functions 370 
(commerce and housing credit) and 750 (administration of 
justice).

------------------------------------------------------------------------
                               By fiscal year, in millions of dollars--
                             -------------------------------------------
                                2008     2009     2010     2011    2012
------------------------------------------------------------------------
              CHANGES IN SPENDING SUBJECT TO APPROPRIATION

Authorization Level.........        5        5        0        0       0
Estimated Outlays...........        4        5        1        0       0
------------------------------------------------------------------------

    Basis of estimate: Section 103 would authorize the 
appropriation of $5 million in each of fiscal years 2008 and 
2009 for the FTC to develop and carry out a campaign to promote 
ways of protecting children who use the Internet. The bill also 
would require the FTC to submit a report to the Congress 
detailing the activities undertaken in the campaign. Based on 
information from the FTC, CBO estimates that implementing this 
provision of S. 1965 would cost $4 million in 2008 and $10 
million over the 2008-2012 period.
    Section 105 would require the NTIA to establish a working 
group to evaluate efforts of the telecommunications industry to 
create a safe environment for children using the Internet. 
Based on information from the NTIA, CBO estimates that 
implementing this provision would not have a significant effect 
on spending subject to appropriation.
    Other provisions of the bill would increase forfeiture and 
civil penalties for ISPs that fail to report certain 
information about child pornographers or the existence of child 
pornography on their sites. Thus, the federal government might 
collect additional forfeiture and civil fines if the 
legislation is enacted (collections of such fines are recorded 
in the budget as revenues). CBO estimates that any additional 
revenues would not be significant because of the relatively 
small number of cases likely to be affected.
    Estimated impact on state, local, and tribal governments: 
S. 1965 contains no intergovernmental mandates as defined in 
UMRA and would impose no costs on state, local, or tribal 
governments.
    Estimated impact on the private sector: S. 1965 would 
expand an existing reporting requirement on certain ISPs by 
requiring them to provide additional information when reporting 
suspected violations of child pornography to the NCMEC. ISPs 
are currently required to report any incident of child 
pornography to the NCMEC. Current law, however, does not 
specify what information should be included in such reports. 
The bill would require ISPs to include:
     User ID or other online identifier of the 
individual who appears to be violating the law;
     Time and date on which the incident occurred or 
was discovered;
     Geographic location of the individuals involved;
     Images of the apparent child pornography relating 
to the incident; and
     Contact information for the ISP reporting the 
incident.
    Although such information is already requested in NCMEC's 
online report forms, compliance is voluntary.
    CBO expects the additional cost of complying with the 
mandate would be minimal. The information required by the bill 
is usually captured and stored by ISP systems, and some ISPs 
already comply with the mandate when filing reports with the 
NCMEC. Further, the bill would require ISPs to provide the 
requested information only to the extent that such information 
is available. Consequently, CBO estimates that the incremental 
cost to ISPs of complying with this mandate would not exceed 
the annual threshold established by UMRA for private-sector 
mandates ($131 million in 2007, adjusted annually for 
inflation).
    Estimate prepared by: Federal Costs: Susan Willie; Impact 
on State, Local, and Tribal Governments: Elizabeth Cove; Impact 
on the Private Sector: MarDestinee Perez.
    Estimate approved by: Theresa Gullo, Deputy Assistant 
Director for Budget Analysis.

                      Regulatory Impact Statement

  In accordance with paragraph 11(b) of rule XXVI of the 
Standing Rules of the Senate, the Committee provides the 
following evaluation of the regulatory impact of the 
legislation, as reported:

                       NUMBER OF PERSONS COVERED

  S. 1965 is intended to enhance current efforts to combat 
child pornography, to educate children about inappropriate 
online communications, and to assist parents in protecting 
their children from inappropriate material that is available 
via the Internet. The bill affects a number of parties involved 
in educating children about safe online behavior and in 
providing online services over the Internet.

                            ECONOMIC IMPACT

  S. 1965 would not have an adverse economic impact on the 
Nation's economy.

                                PRIVACY

  The reported bill would have no significant impact on the 
personal privacy of United States citizens.

                               PAPERWORK

  The reported bill should not significantly increase paperwork 
requirements for individuals and businesses.

                      Section-by-Section Analysis

Section 1. Short title

  Section 1 would establish the Act as the Protecting Children 
in the 21st Century Act.

Section 101. Internet safety

  Section 101 would define the scope of Internet safety issues 
as addressed in the bill.

Section 102. Public Awareness Campaign

  Section 102 would direct the Federal Trade Commission to 
carry out a national program to increase public awareness and 
provide education promoting the safe use of the Internet by 
children.

Section 103. Annual reports

  Section 103 would require the Federal Trade Commission to 
submit an annual report to Congress on the activities of the 
public awareness campaign.

Section 104. Authorization of Appropriations

  Section 104 would authorize $5,000,000 for each of fiscal 
years 2008 and 2009 for the public awareness campaign.

Section 105. Online Safety and Technology Working Group

  Section 105 would direct the Assistant Secretary of Commerce 
for Communications and Information to establish an Online 
Safety and Technology working group comprised of 
representatives from the business community, public interest 
groups, and other appropriate groups and Federal agencies to 
review industry efforts to promote online safety for children. 
The working group would report its findings to the Senate 
Committee on Commerce, Science, and Transportation within one 
year of being convened.

Section 106. Promoting online safety in schools

  Section 106 would amend the Communications Act of 1934 to 
require schools to educate minors about appropriate online 
behavior, including interacting with other individuals on 
social networking websites and in chat rooms and cyberbullying 
awareness and response.

Section 107. Definitions

  Section 107 would define the term ``Commission'' as the 
Federal Trade Commission and the term ``Internet'' as 
collectively the myriad of computer and telecommunications 
facilities, including equipment and operating software, which 
comprise the inter-connected world-wide network of networks 
that employ the Transmission Control Protocol/Internet 
Protocol, or any predecessor successor protocols to such 
protocol, to communicate information of all kinds by wire or 
radio.

Section 201. Child pornography prevention; forfeitures related to child 
        pornography

  Section 201 would amend the Communications Act of 1934 to 
provide a forfeiture penalty for carriers who violate 
requirements to report online child pornography.

Section 202. Additional child pornography amendmentsr

  Section 202 (a) would amend the Crime Control Act of 1990 to 
triple the fines on providers of electronic communication 
services or remote computing services who knowingly and 
willfully fail to report child pornography and (b) would amend 
the Victims of Child Abuse Act of 1990 to require more specific 
reporting of online child pornography to foreign law 
enforcement agencies and authorize the NCMEC to provide 
elements of images relating to child pornography to electronic 
communication service providers for the purpose of stopping 
further transmission of such images and developing anti-child 
pornography technologies.

                        Changes in Existing Law

  In compliance with paragraph 12 of rule XXVI of the Standing 
Rules of the Senate, changes in existing law made by the bill, 
as reported, are shown as follows (existing law proposed to be 
omitted is enclosed in black brackets, new material is printed 
in italic, existing law in which no change is proposed is shown 
in roman):

                       COMMUNICATIONS ACT OF 1934

SEC. 254. UNIVERSAL SERVICE.

                            [47 U.S.C. 254]

  (a) Procedures to review universal service requirements.--
          (1) Federal-State Joint Board on Universal Service.--
        Within one month after the date of enactment of the 
        Telecommunications Act of 1996, the Commission shall 
        institute and refer to a Federal-State Joint Board 
        under section 410(c) a proceeding to recommend changes 
        to any of its regulations in order to implement 
        sections 214(e) and this section, including the 
        definition of the services that are supported by 
        Federal universal service support mechanisms and a 
        specific timetable for completion of such 
        recommendations. In addition to the members of the 
        Joint Board required under section 410(c), one member 
        of such Joint Board shall be a State-appointed utility 
        consumer advocate nominated by a national organization 
        of State utility consumer advocates. The Joint Board 
        shall, after notice and opportunity for public comment, 
        make its recommendations to the Commission 9 months 
        after the date of enactment of the Telecommunications 
        Act of 1996.
          (2) Commission action.--The Commission shall initiate 
        a single proceeding to implement the recommendations 
        from the Joint Board required by paragraph (1) and 
        shall complete such proceeding within 15 months after 
        the date of enactment of the Telecommunications Act of 
        1996. The rules established by such proceeding shall 
        include a definition of the services that are supported 
        by Federal universal service support mechanisms and a 
        specific timetable for implementation. Thereafter, the 
        Commission shall complete any proceeding to implement 
        subsequent recommendations from any Joint Board on 
        universal service within one year after receiving such 
        recommendations.
  (b) Universal service principles.--The Joint Board and the 
Commission shall base policies for the preservation and 
advancement of universal service on the following principles:
          (1) Quality and rates.--Quality services should be 
        available at just, reasonable, and affordable rates.
          (2) Access to advanced services.--Access to advanced 
        telecommunications and information services should be 
        provided in all regions of the Nation.
          (3) Access in rural and high cost areas.--Consumers 
        in all regions of the Nation, including low-income 
        consumers and those in rural, insular, and high cost 
        areas, should have access to telecommunications and 
        information services, including interexchange services 
        and advanced telecommunications and information 
        services, that are reasonably comparable to those 
        services provided in urban areas and that are available 
        at rates that are reasonably comparable to rates 
        charged for similar services in urban areas.
          (4) Equitable and nondiscriminatory contributions.--
        All providers of telecommunications services should 
        make an equitable and nondiscriminatory contribution to 
        the preservation and advancement of universal service.
          (5) Specific and predictable support mechanisms.--
        There should be specific, predictable and sufficient 
        Federal and State mechanisms to preserve and advance 
        universal service.
          (6) Access to advanced telecommunications services 
        for schools, health care, and libraries.--Elementary 
        and secondary schools and classrooms, health care 
        providers, and libraries should have access to advanced 
        telecommunications services as described in subsection 
        (h).
          (7) Additional principles.--Such other principles as 
        the Joint Board and the Commission determine are 
        necessary and appropriate for the protection of the 
        public interest, convenience, and necessity and are 
        consistent with this Act.
  (c) Definition.--
          (1) In general.--Universal service is an evolving 
        level of telecommunications services that the 
        Commission shall establish periodically under this 
        section, taking into account advances in 
        telecommunications and information technologies and 
        services. The Joint Board in recommending, and the 
        Commission in establishing, the definition of the 
        services that are supported by Federal universal 
        service support mechanisms shall consider the extent to 
        which such telecommunications services--
                  (A) are essential to education, public 
                health, or public safety;
                  (B) have, through the operation of market 
                choices by customers, been subscribed to by a 
                substantial majority of residential customers;
                  (C) are being deployed in public 
                telecommunications networks by 
                telecommunications carriers; and
                  (D) are consistent with the public interest, 
                convenience, and necessity.
          (2) Alterations and modifications.--The Joint Board 
        may, from time to time, recommend to the Commission 
        modifications in the definition of the services that 
        are supported by Federal universal service support 
        mechanisms.
          (3) Special services.--In addition to the services 
        included in the definition of universal service under 
        paragraph (1), the Commission may designate additional 
        services for such support mechanisms for schools, 
        libraries, and health care providers for the purposes 
        of subsection (h).
  (d) Telecommunications carrier contribution.--Every 
telecommunications carrier that provides interstate 
telecommunications services shall contribute, on an equitable 
and nondiscriminatory basis, to the specific, predictable, and 
sufficient mechanisms established by the Commission to preserve 
and advance universal service. The Commission may exempt a 
carrier or class of carriers from this requirement if the 
carrier's telecommunications activities are limited to such an 
extent that the level of such carrier's contribution to the 
preservation and advancement of universal service would be de 
minimis. Any other provider of interstate telecommunications 
may be required to contribute to the preservation and 
advancement of universal service if the public interest so 
requires.
  (e) Universal service support.--After the date on which 
Commission regulations implementing this section take effect, 
only an eligible telecommunications carrier designated under 
section 214(e) shall be eligible to receive specific Federal 
universal service support. A carrier that receives such support 
shall use that support only for the provision, maintenance, and 
upgrading of facilities and services for which the support is 
intended. Any such support should be explicit and sufficient to 
achieve the purposes of this section.
  (f) State authority.--A State may adopt regulations not 
inconsistent with the Commission's rules to preserve and 
advance universal service. Every telecommunications carrier 
that provides intrastate telecommunications services shall 
contribute, on an equitable and nondiscriminatory basis, in a 
manner determined by the State to the preservation and 
advancement of universal service in that State. A State may 
adopt regulations to provide for additional definitions and 
standards to preserve and advance universal service within that 
State only to the extent that such regulations adopt additional 
specific, predictable, and sufficient mechanisms to support 
such definitions or standards that do not rely on or burden 
Federal universal service support mechanisms.
  (g) Interexchange and interstate services.--Within 6 months 
after the date of enactment of the Telecommunications Act of 
1996, the Commission shall adopt rules to require that the 
rates charged by providers of interexchange telecommunications 
services to subscribers in rural and high cost areas shall be 
no higher than the rates charged by each such provider to its 
subscribers in urban areas. Such rules shall also require that 
a provider of interstate interexchange telecommunications 
services shall provide such services to its subscribers in each 
State at rates no higher than the rates charged to its 
subscribers in any other State.
  (h) Telecommunications services for certain providers.--
          (1) In general.--
                  (A) Health care providers for rural areas.--A 
                telecommunications carrier shall, upon 
                receiving a bona fide request, provide 
                telecommunications services which are necessary 
                for the provision of health care services in a 
                State, including instruction relating to such 
                services, to any public or nonprofit health 
                care provider that serves persons who reside in 
                rural areas in that State at rates that are 
                reasonably comparable to rates charged for 
                similar services in urban areas in that State. 
                A telecommunications carrier providing service 
                under this paragraph shall be entitled to have 
                an amount equal to the difference, if any, 
                between the rates for services provided to 
                health care providers for rural areas in a 
                State and the rates for similar services 
                provided to other customers in comparable rural 
                areas in that State treated as a service 
                obligation as a part of its obligation to 
                participate in the mechanisms to preserve and 
                advance universal service.
                  (B) Educational providers and libraries.--All 
                telecommunications carriers serving a 
                geographic area shall, upon a bona fide request 
                for any of its services that are within the 
                definition of universal service under 
                subsection (c)(3), provide such services to 
                elementary schools, secondary schools, and 
                libraries for educational purposes at rates 
                less than the amounts charged for similar 
                services to other parties. The discount shall 
                be an amount that the Commission, with respect 
                to interstate services, and the States, with 
                respect to intrastate services, determine is 
                appropriate and necessary to ensure affordable 
                access to and use of such services by such 
                entities. A telecommunications carrier 
                providing service under this paragraph shall--
                          (i) have an amount equal to the 
                        amount of the discount treated as an 
                        offset to its obligation to contribute 
                        to the mechanisms to preserve and 
                        advance universal service, or
                          (ii) notwithstanding the provisions 
                        of subsection (e) of this section, 
                        receive reimbursement utilizing the 
                        support mechanisms to preserve and 
                        advance universal service.
          (2) Advanced services.--The Commission shall 
        establish competitively neutral rules--
                  (A) to enhance, to the extent technically 
                feasible and economically reasonable, access to 
                advanced telecommunications and information 
                services for all public and nonprofit 
                elementary and secondary school classrooms, 
                health care providers, and libraries; and
                  (B) to define the circumstances under which a 
                telecommunications carrier may be required to 
                connect its network to such public 
                institutional telecommunications users.
          (3) Terms and conditions.--Telecommunications 
        services and network capacity provided to a public 
        institutional telecommunications user under this 
        subsection may not be sold, resold, or otherwise 
        transferred by such user in consideration for money or 
        any other thing of value.
          (4) Eligibility of users.--No entity listed in this 
        subsection shall be entitled to preferential rates or 
        treatment as required by this subsection, if such 
        entity operates as a for-profit business, is a school 
        described in paragraph (7)(A) with an endowment of more 
        than $50,000,000, or is a library or library consortium 
        not eligible for assistance from a State library 
        administrative agency under the Library Services and 
        Technology Act.
          (5) Requirements for certain schools with computers 
        having Internet access.--
                  (A) Internet safety.--
                          (i) In general.-- Except as provided 
                        in clause (ii), an elementary or 
                        secondary school having computers with 
                        Internet access may not receive 
                        services at discount rates under 
                        paragraph (1)(B) unless the school, 
                        school board, local educational agency, 
                        or other authority with responsibility 
                        for administration of the school--
                                  (I) submits to the Commission 
                                the certifications described in 
                                subparagraphs (B) and (C);
                                  (II) submits to the 
                                Commission a certification that 
                                an Internet safety policy has 
                                been adopted and implemented 
                                for the school under subsection 
                                (l); and
                                  (III) ensures the use of such 
                                computers in accordance with 
                                the certifications.
                          (ii) Applicability.-- The prohibition 
                        in clause (i) shall not apply with 
                        respect to a school that receives 
                        services at discount rates under 
                        paragraph (1)(B) only for purposes 
                        other than the provision of Internet 
                        access, Internet service, or internal 
                        connections.
                          (iii) Public notice; hearing.-- An 
                        elementary or secondary school 
                        described in clause (i), or the school 
                        board, local educational agency, or 
                        other authority with responsibility for 
                        administration of the school, shall 
                        provide reasonable public notice and 
                        hold at least 1 public hearing or 
                        meeting to address the proposed 
                        Internet safety policy. In the case of 
                        an elementary or secondary school other 
                        than an elementary or secondary school 
                        as defined in section 14101 of the 
                        Elementary and Secondary Education Act 
                        of 1965 (20 U.S.C. 8801), the notice 
                        and hearing required by this clause may 
                        be limited to those members of the 
                        public with a relationship to the 
                        school.
                  (B) Certification with respect to minors.-- A 
                certification under this subparagraph is a 
                certification that the school, school board, 
                local educational agency, or other authority 
                with responsibility for administration of the 
                school--
                          (i) is enforcing a policy of Internet 
                        safety for minors that includes 
                        monitoring the online activities of 
                        minors and the operation of a 
                        technology protection measure with 
                        respect to any of its computers with 
                        Internet access that protects against 
                        access through such computers to visual 
                        depictions that are--
                                  (I) obscene;
                                  (II) child pornography; or
                                  (III) harmful to minors; 
                                [and]
                          (ii) is enforcing the operation of 
                        such technology protection measure 
                        during any use of such computers by 
                        [minors.] minors; and
                          (iii) as part of its Internet safety 
                        policy is educating minors about 
                        appropriate online behavior, including 
                        interacting with other individuals on 
                        social networking websites and in chat 
                        rooms and cyberbullying awareness and 
                        response.
                  (C) Certification with respect to adults.--A 
                certification under this paragraph is a 
                certification that the school, school board, 
                local educational agency, or other authority 
                with responsibility for administration of the 
                school--
                          (i) is enforcing a policy of Internet 
                        safety that includes the operation of a 
                        technology protection measure with 
                        respect to any of its computers with 
                        Internet access that protects against 
                        access through such computers to visual 
                        depictions that are--
                                  (I) obscene; or
                                  (II) child pornography; and
                          (ii) is enforcing the operation of 
                        such technology protection measure 
                        during any use of such computers.
                  (D) Disabling during adult use.--An 
                administrator, supervisor, or other person 
                authorized by the certifying authority under 
                subparagraph (A)(i) may disable the technology 
                protection measure concerned, during use by an 
                adult, to enable access for bona fide research 
                or other lawful purpose.
                  (E) Timing of implementation.--
                          (i) In general.--Subject to clause 
                        (ii) in the case of any school covered 
                        by this paragraph as of the effective 
                        date of this paragraph under section 
                        1721(h) of the Children's Internet 
                        Protection Act, the certification under 
                        subparagraphs (B) and (C) shall be 
                        made--
                                  (I) with respect to the first 
                                program funding year under this 
                                subsection following such 
                                effective date, not later than 
                                120 days after the beginning of 
                                such program funding year; and
                                  (II) with respect to any 
                                subsequent program funding 
                                year, as part of the 
                                application process for such 
                                program funding year.
                          (ii) Process.--
                                  (I) Schools with internet 
                                safety policy and technology 
                                protection measures in place.--
                                A school covered by clause (i) 
                                that has in place an Internet 
                                safety policy and technology 
                                protection measures meeting the 
                                requirements necessary for 
                                certification under 
                                subparagraphs (B) and (C) shall 
                                certify its compliance with 
                                subparagraphs (B) and (C) 
                                during each annual program 
                                application cycle under this 
                                subsection, except that with 
                                respect to the first program 
                                funding year after the 
                                effective date of this 
                                paragraph under section 1721(h) 
                                of the Children's Internet 
                                Protection Act, the 
                                certifications shall be made 
                                not later than 120 days after 
                                the beginning of such first 
                                program funding year.
                                  (II) Schools without internet 
                                safety policy and technology 
                                protection measures in place.--
                                A school covered by clause (i) 
                                that does not have in place an 
                                Internet safety policy and 
                                technology protection measures 
                                meeting the requirements 
                                necessary for certification 
                                under subparagraphs (B) and 
                                (C)--
                                          (aa) for the first 
                                        program year after the 
                                        effective date of this 
                                        subsection in which it 
                                        is applying for funds 
                                        under this subsection, 
                                        shall certify that it 
                                        is undertaking such 
                                        actions, including any 
                                        necessary procurement 
                                        procedures, to put in 
                                        place an Internet 
                                        safety policy and 
                                        technology protection 
                                        measures meeting the 
                                        requirements necessary 
                                        for certification under 
                                        subparagraphs (B) and 
                                        (C); and
                                          (bb) for the second 
                                        program year after the 
                                        effective date of this 
                                        subsection in which it 
                                        is applying for funds 
                                        under this subsection, 
                                        shall certify that it 
                                        is in compliance with 
                                        subparagraphs (B) and 
                                        (C).
                                Any school that is unable to 
                                certify compliance with such 
                                requirements in such second 
                                program year shall be 
                                ineligible for services at 
                                discount rates or funding in 
                                lieu of services at such rates 
                                under this subsection for such 
                                second year and all subsequent 
                                program years under this 
                                subsection, until such time as 
                                such school comes into 
                                compliance with this paragraph.
                                  (III) Waivers.--Any school 
                                subject to subclause (II) that 
                                cannot come into compliance 
                                with subparagraphs (B) and (C) 
                                in such second year program may 
                                seek a waiver of subclause 
                                (II)(bb) if State or local 
                                procurement rules or 
                                regulations or competitive 
                                bidding requirements prevent 
                                the making of the certification 
                                otherwise required by such 
                                subclause. A school, school 
                                board, local educational 
                                agency, or other authority with 
                                responsibility for 
                                administration of the school 
                                shall notify the Commission of 
                                the applicability of such 
                                subclause to the school. Such 
                                notice shall certify that the 
                                school in question will be 
                                brought into compliance before 
                                the start of the third program 
                                year after the effective date 
                                of this subsection in which the 
                                school is applying for funds 
                                under this subsection.
                  (F) Noncompliance.--
                          (i) Failure to submit 
                        certification.--Any school that 
                        knowingly fails to comply with the 
                        application guidelines regarding the 
                        annual submission of certification 
                        required by this paragraph shall not be 
                        eligible for services at discount rates 
                        or funding in lieu of services at such 
                        rates under this subsection.
                          (ii) Failure to comply with 
                        certification.--Any school that 
                        knowingly fails to ensure the use of 
                        its computers in accordance with a 
                        certification under subparagraphs (B) 
                        and (C) shall reimburse any funds and 
                        discounts received under this 
                        subsection for the period covered by 
                        such certification.
                          (iii) Remedy of noncompliance.--
                                  (I) Failure to submit.--A 
                                school that has failed to 
                                submit a certification under 
                                clause (i) may remedy the 
                                failure by submitting the 
                                certification to which the 
                                failure relates. Upon submittal 
                                of such certification, the 
                                school shall be eligible for 
                                services at discount rates 
                                under this subsection.
                                  (II) Failure to comply.--A 
                                school that has failed to 
                                comply with a certification as 
                                described in clause (ii) may 
                                remedy the failure by ensuring 
                                the use of its computers in 
                                accordance with such 
                                certification. Upon submittal 
                                to the Commission of a 
                                certification or other 
                                appropriate evidence of such 
                                remedy, the school shall be 
                                eligible for services at 
                                discount rates under this 
                                subsection.
          (6) Requirements for certain libraries with computers 
        having Internet access.--
                  (A) Internet safety.--
                          (i) In general.--Except as provided 
                        in clause (ii), a library having one or 
                        more computers with Internet access may 
                        not receive services at discount rates 
                        under paragraph (1)(B) unless the 
                        library--
                                  (I) submits to the Commission 
                                the certifications described in 
                                subparagraphs (B) and (C); and
                                  (II) submits to the 
                                Commission a certification that 
                                an Internet safety policy has 
                                been adopted and implemented 
                                for the library under 
                                subsection (l); and
                                  (III) ensures the use of such 
                                computers in accordance with 
                                the certifications.
                          (ii) Applicability.--The prohibition 
                        in clause (i) shall not apply with 
                        respect to a library that receives 
                        services at discount rates under 
                        paragraph (1)(B) only for purposes 
                        other than the provision of Internet 
                        access, Internet service, or internal 
                        connections.
                          (iii) Public notice; hearing.--A 
                        library described in clause (i) shall 
                        provide reasonable public notice and 
                        hold at least 1 public hearing or 
                        meeting to address the proposed 
                        Internet safety policy.
                  (B) Certification with respect to minors.--A 
                certification under this subparagraph is a 
                certification that the library--
                          (i) is enforcing a policy of Internet 
                        safety that includes the operation of a 
                        technology protection measure with 
                        respect to any of its computers with 
                        Internet access that protects against 
                        access through such computers to visual 
                        depictions that are--
                                  (I) obscene;
                                  (II) child pornography; or
                                  (III) harmful to minors; and
                          (ii) is enforcing the operation of 
                        such technology protection measure 
                        during any use of such computers by 
                        minors.
                  (C) Certification with respect to adults.--A 
                certification under this paragraph is a 
                certification that the library--
                          (i) is enforcing a policy of Internet 
                        safety that includes the operation of a 
                        technology protection measure with 
                        respect to any of its computers with 
                        Internet access that protects against 
                        access through such computers to visual 
                        depictions that are--
                                  (I) obscene; or
                                  (II) child pornography; and
                          (ii) is enforcing the operation of 
                        such technology protection measure 
                        during any use of such computers.
                  (D) Disabling during adult use.--An 
                administrator, supervisor, or other person 
                authorized by the certifying authority under 
                subparagraph (A)(i) may disable the technology 
                protection measure concerned, during use by an 
                adult, to enable access for bona fide research 
                or other lawful purpose.
                  (E) Timing of implementation.--
                          (i) In general.--Subject to clause 
                        (ii) in the case of any library covered 
                        by this paragraph as of the effective 
                        date of this paragraph under section 
                        1721(h) of the Children's Internet 
                        Protection Act [note to this section], 
                        the certification under subparagraphs 
                        (B) and (C) shall be made--
                                  (I) with respect to the first 
                                program funding year under this 
                                subsection following such 
                                effective date, not later than 
                                120 days after the beginning of 
                                such program funding year; and
                                  (II) with respect to any 
                                subsequent program funding 
                                year, as part of the 
                                application process for such 
                                program funding year.
                          (ii) Process.--
                                  (I) Libraries with internet 
                                safety policy and technology 
                                protection measures in place.--
                                A library covered by clause (i) 
                                that has in place an Internet 
                                safety policy and technology 
                                protection measures meeting the 
                                requirements necessary for 
                                certification under 
                                subparagraphs (B) and (C) shall 
                                certify its compliance with 
                                subparagraphs (B) and (C) 
                                during each annual program 
                                application cycle under this 
                                subsection, except that with 
                                respect to the first program 
                                funding year after the 
                                effective date of this 
                                paragraph under section 1721(h) 
                                of the Children's Internet 
                                Protection Act, the 
                                certifications shall be made 
                                not later than 120 days after 
                                the beginning of such first 
                                program funding year.
                                  (II) Libraries without 
                                internet safety policy and 
                                technology protection measures 
                                in place.--A library covered by 
                                clause (i) that does not have 
                                in place an Internet safety 
                                policy and technology 
                                protection measures meeting the 
                                requirements necessary for 
                                certification under 
                                subparagraphs (B) and (C)--
                                          (aa) for the first 
                                        program year after the 
                                        effective date of this 
                                        subsection in which it 
                                        is applying for funds 
                                        under this subsection, 
                                        shall certify that it 
                                        is undertaking such 
                                        actions, including any 
                                        necessary procurement 
                                        procedures, to put in 
                                        place an Internet 
                                        safety policy and 
                                        technology protection 
                                        measures meeting the 
                                        requirements necessary 
                                        for certification under 
                                        subparagraphs (B) and 
                                        (C); and
                                          (bb) for the second 
                                        program year after the 
                                        effective date of this 
                                        subsection in which it 
                                        is applying for funds 
                                        under this subsection, 
                                        shall certify that it 
                                        is in compliance with 
                                        subparagraphs (B) and 
                                        (C).
                                Any library that is unable to 
                                certify compliance with such 
                                requirements in such second 
                                program year shall be 
                                ineligible for services at 
                                discount rates or funding in 
                                lieu of services at such rates 
                                under this subsection for such 
                                second year and all subsequent 
                                program years under this 
                                subsection, until such time as 
                                such library comes into 
                                compliance with this paragraph.
                                  (III) Waivers.--Any library 
                                subject to subclause (II) that 
                                cannot come into compliance 
                                with subparagraphs (B) and (C) 
                                in such second year may seek a 
                                waiver of subclause (II)(bb) if 
                                State or local procurement 
                                rules or regulations or 
                                competitive bidding 
                                requirements prevent the making 
                                of the certification otherwise 
                                required by such subclause. A 
                                library, library board, or 
                                other authority with 
                                responsibility for 
                                administration of the library 
                                shall notify the Commission of 
                                the applicability of such 
                                subclause to the library. Such 
                                notice shall certify that the 
                                library in question will be 
                                brought into compliance before 
                                the start of the third program 
                                year after the effective date 
                                of this subsection in which the 
                                library is applying for funds 
                                under this subsection.
                  (F) Noncompliance.--
                          (i) Failure to submit 
                        certification.--Any library that 
                        knowingly fails to comply with the 
                        application guidelines regarding the 
                        annual submission of certification 
                        required by this paragraph shall not be 
                        eligible for services at discount rates 
                        or funding in lieu of services at such 
                        rates under this subsection.
                          (ii) Failure to comply with 
                        certification.--Any library that 
                        knowingly fails to ensure the use of 
                        its computers in accordance with a 
                        certification under subparagraphs (B) 
                        and (C) shall reimburse all funds and 
                        discounts received under this 
                        subsection for the period covered by 
                        such certification.
                          (iii) Remedy of noncompliance.--
                                  (I) Failure to submit.--A 
                                library that has failed to 
                                submit a certification under 
                                clause (i) may remedy the 
                                failure by submitting the 
                                certification to which the 
                                failure relates. Upon submittal 
                                of such certification, the 
                                library shall be eligible for 
                                services at discount rates 
                                under this subsection.
                                  (II) Failure to comply.--A 
                                library that has failed to 
                                comply with a certification as 
                                described in clause (ii) may 
                                remedy the failure by ensuring 
                                the use of its computers in 
                                accordance with such 
                                certification. Upon submittal 
                                to the Commission of a 
                                certification or other 
                                appropriate evidence of such 
                                remedy, the library shall be 
                                eligible for services at 
                                discount rates under this 
                                subsection.
          (7) Definitions.--For purposes of this subsection:
                  (A) Elementary and secondary schools.--The 
                term ``elementary and secondary schools'' means 
                elementary schools and secondary schools, as 
                defined in section 9101 of the Elementary and 
                Secondary Education Act of 1965.
                  (B) Health care provider.--The term ``health 
                care provider'' means--
                          (i) post-secondary educational 
                        institutions offering health care 
                        instruction, teaching hospitals, and 
                        medical schools;
                          (ii) community health centers or 
                        health centers providing health care to 
                        migrants;
                          (iii) local health departments or 
                        agencies;
                          (iv) community mental health centers;
                          (v) not-for-profit hospitals;
                          (vi) rural health clinics; and
                          (vii) consortia of health care 
                        providers consisting of one or more 
                        entities described in clauses (i) 
                        through (vi).
                  (C) Public institutional telecommunications 
                user.--The term ``public institutional 
                telecommunications user'' means an elementary 
                or secondary school, a library, or a health 
                care provider as those terms are defined in 
                this paragraph.
                  (D) Minor.--The term ``minor'' means any 
                individual who has not attained the age of 17 
                years.
                  (E) Obscene.--The term ``obscene'' has the 
                meaning given such term in section 1460 of 
                title 18, United States Code.
                  (F) Child pornography.--The term ``child 
                pornography'' has the meaning given such term 
                in section 2256 of title 18, United States 
                Code.
                  (G) Harmful to minors.--The term ``harmful to 
                minors'' means any picture, image, graphic 
                image file, or other visual depiction that--
                          (i) taken as a whole and with respect 
                        to minors, appeals to a prurient 
                        interest in nudity, sex, or excretion;
                          (ii) depicts, describes, or 
                        represents, in a patently offensive way 
                        with respect to what is suitable for 
                        minors, an actual or simulated sexual 
                        act or sexual contact, actual or 
                        simulated normal or perverted sexual 
                        acts, or a lewd exhibition of the 
                        genitals; and
                          (iii) taken as a whole, lacks serious 
                        literary, artistic, political, or 
                        scientific value as to minors.
                  (H) Sexual act; sexual contact.--The terms 
                ``sexual act'' and ``sexual contact'' have the 
                meanings given such terms in section 2246 of 
                title 18, United States Code.
                  (I) Technology protection measure.--The term 
                ``technology protection measure'' means a 
                specific technology that blocks or filters 
                Internet access to the material covered by a 
                certification under paragraph (5) or (6) to 
                which such certification relates.
  (i) Consumer protection.--The Commission and the States 
should ensure that universal service is available at rates that 
are just, reasonable, and affordable.
  (j) Lifeline assistance.--Nothing in this section shall 
affect the collection, distribution, or administration of the 
Lifeline Assistance Program provided for by the Commission 
under regulations set forth in section 69.117 of title 47, Code 
of Federal Regulations, and other related sections of such 
title.
  (k) Subsidy of competitive services prohibited.--A 
telecommunications carrier may not use services that are not 
competitive to subsidize services that are subject to 
competition. The Commission, with respect to interstate 
services, and the States, with respect to intrastate services, 
shall establish any necessary cost allocation rules, accounting 
safeguards, and guidelines to ensure that services included in 
the definition of universal service bear no more than a 
reasonable share of the joint and common costs of facilities 
used to provide those services.
  (l) Internet safety policy requirement for schools and 
libraries.--
          (1) In general.--In carrying out its responsibilities 
        under subsection (h), each school or library to which 
        subsection (h) applies shall--
                  (A) adopt and implement an Internet safety 
                policy that addresses--
                          (i) access by minors to inappropriate 
                        matter on the Internet and World Wide 
                        Web;
                          (ii) the safety and security of 
                        minors when using electronic mail, chat 
                        rooms, and other forms of direct 
                        electronic communications;
                          (iii) unauthorized access, including 
                        so-called ``hacking'', and other 
                        unlawful activities by minors online;
                          (iv) unauthorized disclosure, use, 
                        and dissemination of personal 
                        identification information regarding 
                        minors; and
                          (v) measures designed to restrict 
                        minors' access to materials harmful to 
                        minors; and
                  (B) provide reasonable public notice and hold 
                at least one public hearing or meeting to 
                address the proposed Internet safety policy.
          (2) Local determination of content.--A determination 
        regarding what matter is inappropriate for minors shall 
        be made by the school board, local educational agency, 
        library, or other authority responsible for making the 
        determination. No agency or instrumentality of the 
        United States Government may--
                  (A) establish criteria for making such 
                determination;
                  (B) review the determination made by the 
                certifying school, school board, local 
                educational agency, library, or other 
                authority; or
                  (C) consider the criteria employed by the 
                certifying school, school board, local 
                educational agency, library, or other authority 
                in the administration of subsection (h)(1)(B).
          (3) Availability for review.--Each Internet safety 
        policy adopted under this subsection shall be made 
        available to the Commission, upon request of the 
        Commission, by the school, school board, local 
        educational agency, library, or other authority 
        responsible for adopting such Internet safety policy 
        for purposes of the review of such Internet safety 
        policy by the Commission.
          (4) Effective date.--This subsection shall apply with 
        respect to schools and libraries on or after the date 
        that is 120 days after the date of the enactment of the 
        Children's Internet Protection Act.

           *       *       *       *       *       *       *

SEC. 503. FORFEITURES

                            [47 U.S.C. 503]

  (a) Rebates and Offsets.--Any person who shall deliver 
messages for interstate or foreign transmission to any carrier, 
or for whom as sender or receiver, any such carrier shall 
transmit any interstate or foreign wire or radio communication, 
who shall knowingly by employee, agent, officer, or otherwise, 
directly or indirectly, by or through any means or device 
whatsoever, receive or accept from such common carrier any sum 
of money or any other valuable consideration as a rebate or 
offset against the regular charges for transmission of such 
messages as fixed by the schedules of charges provided for in 
this Act, shall in addition to any other penalty provided by 
this Act forfeit to the United States a sum of money three 
times the value of any other consideration so received or 
accepted, to be ascertained by the trial court; and in the 
trial of said action all such rebates or other considerations 
so received or accepted for a period of six years prior to the 
commencement of the action, may be included therein, and the 
amount recovered shall be three times the total amount of 
money, or three times the total value of such consideration, so 
received or accepted, or both, as the case may be.
  (b) Activities Constituting Violations Authorizing Imposition 
of Forfeiture Penalty; Amount of Penalty; Procedures 
Applicable; Persons Subject to Penalty; Liability Exemption 
Period.--
          (1) Any person who is determined by the Commission, 
        in accordance with paragraph (3) or (4) of this 
        subsection, to have--
                  (A) willfully or repeatedly failed to comply 
                substantially with the terms and conditions of 
                any license, permit, certificate, or other 
                instrument or authorization issued by the 
                Commission;
                  (B) willfully or repeatedly failed to comply 
                with any of the provisions of this Act or of 
                any rule, regulation, or order issued by the 
                Commission under this Act or under any treaty, 
                convention, or other agreement to which the 
                United States is a party and which is binding 
                upon the United States;
                  (C) violated any provision of section 317(c) 
                or 508(a) of this Act; [or]
                  (D) violated any provision of section 1304, 
                1343, [or 1464] 1464, or 2252 of title 18, 
                United States Code; or
                  (E) violated any provision of section 227 of 
                the Victims of Child Abuse Act of 1990 (42 
                U.S.C. 13032);
          shall be liable to the United States for a forfeiture 
        penalty. A forfeiture penalty under this subsection 
        shall be in addition to any other penalty provided for 
        by this Act; except that this subsection shall not 
        apply to any conduct which is subject to forfeiture 
        under title II, part II or III of title III, or section 
        506 of this Act.
          (2)(A) If the violator is (i) a broadcast station 
        licensee or permittee, (ii) a cable television 
        operator, or (iii) an applicant for any broadcast or 
        cable television operator license, permit, certificate, 
        or other instrument or authorization issued by the 
        Commission, the amount of any forfeiture penalty 
        determined under this section shall not exceed $25,000 
        for each violation or each day of a continuing 
        violation, except that the amount assessed for any 
        continuing violation shall not exceed a total of 
        $250,000 for any single act or failure to act described 
        in paragraph (1) of this subsection.
          (B) If the violator is a common carrier subject to 
        the provisions of this Act or an applicant for any 
        common carrier license, permit, certificate, or other 
        instrument of authorization issued by the Commission, 
        the amount of any forfeiture penalty determined under 
        this subsection shall not exceed $100,000 for each 
        violation or each day of a continuing violation, except 
        that the amount assessed for any continuing violation 
        shall not exceed a total of $1,000,000 for any single 
        act or failure to act described in paragraph (1) of 
        this subsection.
                  (C) Notwithstanding subparagraph (A), if the 
                violator is--
                          (i) (I) a broadcast station licensee 
                        or permittee; or
                          (II) an applicant for any broadcast 
                        license, permit, certificate, or other 
                        instrument or authorization issued by 
                        the Commission; and
                          (ii) determined by the Commission 
                        under paragraph (1) to have broadcast 
                        obscene, indecent, or profane language, 
                        the amount of any forfeiture penalty 
                        determined under this subsection shall 
                        not exceed $325,000 for each violation 
                        or each day of a continuing violation, 
                        except that the amount assessed for any 
                        continuing violation shall not exceed a 
                        total of $3,000,000 for any single act 
                        or failure to act.
                  (D) In any case not covered in subparagraph 
                (A), (B), or (C), the amount of any forfeiture 
                penalty determined under this subsection shall 
                not exceed $10,000 for each violation or each 
                day of a continuing violation, except that the 
                amount assessed for any continuing violation 
                shall not exceed a total of $75,000 for any 
                single act or failure to act described in 
                paragraph (1) of this subsection.
                  (E) The amount of such forfeiture penalty 
                shall be assessed by the Commission, or its 
                designee, by written notice. In determining the 
                amount of such a forfeiture penalty, the 
                Commission or its designee shall take into 
                account the nature, circumstances, extent, and 
                gravity of the violation and, with respect to 
                the violator, the degree of culpability, any 
                history of prior offenses, ability to pay, and 
                such other matters as justice may require.
          (3)(A) At the discretion of the Commission, a 
        forfeiture penalty may be determined against a person 
        under this subsection after notice and an opportunity 
        for a hearing before the Commission or an 
        administrative law judge thereof in accordance with 
        section 554 of title 5, United States Code. Any person 
        against whom a forfeiture penalty is determined under 
        this paragraph may obtain review thereof pursuant to 
        section 402(a).
          (B) If any person fails to pay an assessment of a 
        forfeiture penalty determined under subparagraph (A) of 
        this paragraph, after it has become a final and 
        unappealable order or after the appropriate court has 
        entered final judgment in favor of the Commission, the 
        Commission shall refer the matter to the Attorney 
        General of the United States, who shall recover the 
        amount assessed in any appropriate district court of 
        the United States. In such action, the validity and 
        appropriateness of the final order imposing the 
        forfeiture penalty shall not be subject to review.
          (4) Except as provided in paragraph (3) of this 
        subsection, no forfeiture penalty shall be imposed 
        under this subsection against any person unless and 
        until--
                  (A) the Commission issues a notice of 
                apparent liability, in writing, with respect to 
                such person;
                  (B) such notice has been received by such 
                person, or until the Commission has sent such 
                notice to the last known address of such 
                person, by registered or certified mail; and
                  (C) such person is granted an opportunity to 
                show, in writing, within such reasonable period 
                of time as the Commission prescribes by rule or 
                regulation, why no such forfeiture penalty 
                should be imposed.
        Such a notice shall (i) identify each specific 
        provision, term, and condition of any Act, rule, 
        regulation, order, treaty, convention, or other 
        agreement, license, permit, certificate, instrument, or 
        authorization which such person apparently violated or 
        with which such person apparently failed to comply; 
        (ii) set forth the nature of the act or omission 
        charged against such person and the facts upon which 
        such charge is based; and (iii) state the date on which 
        such conduct occurred. Any forfeiture penalty 
        determined under this paragraph shall be recoverable 
        pursuant to section 504(a) of this Act.
          (5) No forfeiture liability shall be determined under 
        this subsection against any person, if such person does 
        not hold a license, permit, certificate, or other 
        authorization issued by the Commission, and if such 
        person is not an applicant for a license, permit, 
        certificate, or other authorization issued by the 
        Commission, unless, prior to the notice required by 
        paragraph (3) of this subsection or the notice of 
        apparent liability required by paragraph (4) of this 
        subsection, such person (A) is sent a citation of the 
        violation charged; (B) is given a reasonable 
        opportunity for a personal interview with an official 
        of the Commission, at the field office of the 
        Commission which is nearest to such person's place of 
        residence; and (C) subsequently engages in conduct of 
        the type described in such citation. The provisions of 
        this paragraph shall not apply, however, if the person 
        involved is engaging in activities for which a license, 
        permit, certificate, or other authorization is 
        required, or is a cable television system operator, if 
        the person involved is transmitting on frequencies 
        assigned for use in a service in which individual 
        station operation is authorized by rule pursuant to 
        section 307(e), or in the case of violations of section 
        303(q), if the person involved is a nonlicensee tower 
        owner who has previously received notice of the 
        obligations imposed by section 303(q) from the 
        Commission or the permittee or licensee who uses that 
        tower. Whenever the requirements of this paragraph are 
        satisfied with respect to a particular person, such 
        person shall not be entitled to receive any additional 
        citation of the violation charged, with respect to any 
        conduct of the type described in the citation sent 
        under this paragraph.
          (6) No forfeiture penalty shall be determined or 
        imposed against any person under this subsection if--
                  (A) such person holds a broadcast station 
                license issued under title III of this Act and 
                if the violation charged occurred--
                          (i) more than 1 year prior to the 
                        date of issuance of the required notice 
                        or notice of apparent liability; or
                          (ii) prior to the date of 
                        commencement of the current term of 
                        such license, whichever is earlier; or
                  (B) such person does not hold a broadcast 
                station license issued under title III of this 
                Act and if the violation charged occurred more 
                than 1 year prior to the date of issuance of 
                the required notice or notice of apparent 
                liability.
        For purposes of this paragraph, ``date of commencement 
        of the current term of such license'' means the date of 
        commencement of the last term of license for which the 
        licensee has been granted a license by the Commission. 
        A separate license term shall not be deemed to have 
        commenced as a result of continuing a license in effect 
        under section 307(c) pending decision on an application 
        for renewal of the license.

                       CRIME CONTROL ACT OF 1990

                           [42 U.S.C. 13032]

SEC. 227. REPORTING OF CHILD PORNOGRAPHY BY ELECTRONIC COMMUNICATION 
                    SERVICE PROVIDERS.

  (a) Definitions.--In this section--
          (1) the term ``electronic communication service'' has 
        the meaning given the term in section 2510 of title 18, 
        United States Code; and
          (2) the term ``remote computing service'' has the 
        meaning given the term in section 2711 of title 18, 
        United States Code.
  (b) Requirements.--
          (1) Duty to report.--Whoever, while engaged in 
        providing an electronic communication service or a 
        remote computing service to the public, through a 
        facility or means of interstate or foreign commerce, 
        obtains knowledge of facts or circumstances from which 
        a violation of section 2251, 2251A, 2252, 2252A, 2252B, 
        or 2260 of title 18, United States Code, involving 
        child pornography (as defined in section 2256 of that 
        title), or a violation of section 1466A of that title, 
        is apparent, shall, as soon as reasonably possible, 
        make a report of such facts or circumstances to the 
        Cyber Tip Line at the National Center for Missing and 
        Exploited Children, which shall forward that report to 
        [a law enforcement agency] appropriate Federal, State, 
        or foreign law enforcement agencies or agencies 
        designated by the Attorney General.
          (2) Designation of agencies.--Not later than 180 days 
        after the date of enactment of this section, the 
        Attorney General shall designate the Federal, State, or 
        foreign law enforcement agency or agencies to which a 
        report shall be forwarded under paragraph (1).
          (3) Contents of report.--To the extent this 
        information is reasonably available to an electronic 
        communication service provider or a remote computing 
        service provider, each report under paragraph (1) shall 
        include--
                  (A) information relating to the Internet 
                identity of any individual who appears to have 
                violated any section of title 18, United States 
                Code, referenced in paragraph (1), including 
                any relevant user ID or other online 
                identifier, electronic mail addresses, website 
                address, uniform resource locator, or other 
                identifying information;
                  (B) information relating to when any apparent 
                child pornography was uploaded, transmitted, 
                reported to, or discovered by the electronic 
                communication service provider or a remote 
                computing service provider, as the case may be, 
                including a date and time stamp and time zone.
                  (C) information relating to geographic 
                location of the involved individual or reported 
                content, including the hosting website, uniform 
                resource locator, street address, zip code, 
                area code, telephone number, or Internet 
                Protocol address;
                  (D) any image of any apparent child 
                pornography relating to the incident, and any 
                images commingled with images of apparent child 
                pornography, such report is regarding; and
                  (E) accurate contact information for the 
                electronic communication service provider or 
                remote computing service provider making the 
                report, including the address, telephone 
                number, facsimile number, electronic mail 
                address of, and individual point of contact for 
                such electronic communication service provider 
                or remote computing service provider.
          [(3)] (4) In addition to forwarding such reports to 
        those agencies designated in subsection (b)(2), the 
        National Center for Missing and Exploited Children is 
        authorized to forward any such report to an appropriate 
        official of a state or subdivision of a state for the 
        purpose of enforcing state criminal [law.] law, or 
        appropriate officials of foreign law enforcement 
        agencies designated by the Attorney General for the 
        purpose of enforcing State or Federal laws of the 
        United States.
          [(4)] (5) Failure to report.--A provider of 
        electronic communication services or remote computing 
        services described in paragraph (1) who knowingly and 
        willfully fails to make a report under that paragraph 
        shall be fined--
                  (A) in the case of an initial failure to make 
                a report, not more than [$50,000;] $150,000; 
                and
                  (B) in the case of any second or subsequent 
                failure to make a report, not more than 
                [$100,000.] $300,000.
  (c) Civil liability.--No provider or user of an electronic 
communication service or a remote computing service to the 
public shall be held liable on account of any action taken in 
good faith to comply with or pursuant to this section.
  (d) Limitation of Information or Material Required in 
Report.--A report under subsection (b)(1) may include 
additional information or material developed by an electronic 
communication service or remote computing service, except that 
the Federal Government may not require the production of such 
information or material in that report.
  (e) Monitoring Not Required.--Nothing in this section may be 
construed to require a provider of electronic communication 
services or remote computing services to engage in the 
monitoring of any user, subscriber, or customer of that 
provider, or the content of any communication of any such 
person.
  (f) Conditions of disclosure of information contained within 
report.--
          (1) In general.--No law enforcement agency that 
        receives a report under subsection (b)(1) shall 
        disclose any information contained in that report, 
        except that disclosure of such information may be 
        made--
                  (A) to an attorney for the government for use 
                in the performance of the official duties of 
                the attorney;
                  (B) to such officers and employees of the law 
                enforcement agency, as may be necessary in the 
                performance of their investigative and 
                recordkeeping functions;
                  (C) to such other government personnel 
                (including personnel of a State or subdivision 
                of a State) as are determined to be necessary 
                by an attorney for the government to assist the 
                attorney in the performance of the official 
                duties of the attorney in enforcing Federal 
                criminal law; or
                  (D) where the report discloses a violation of 
                State criminal law, to an appropriate official 
                of a State or subdivision of a State for the 
                purpose of enforcing such State law.
          (2) Definitions.--In this subsection, the terms 
        ``attorney for the government'' and ``State'' have the 
        meanings given those terms in Rule 54 of the Federal 
        Rules of Criminal Procedure.
  (g) Limitation on liability.--
          (1) In general.--Except as provided in paragraphs (2) 
        and (3), the National Center for Missing and Exploited 
        Children, including any of its directors, officers, 
        employees, or agents, is not liable in any civil or 
        criminal action arising from the performance of its 
        CyberTipline responsibilities and functions, as defined 
        by this section, section 404 of the Missing Children's 
        Assistance Act (42 U.S.C. 5773), or from its efforts to 
        identify child victims.
          (2) Intentional, reckless, or other misconduct.--
        Paragraph (1) does not apply in an action in which a 
        party proves that the National Center for Missing and 
        Exploited Children, or its officer, employee, or agent 
        as the case may be, engaged in intentional misconduct 
        or acted, or failed to act, with actual malice, with 
        reckless disregard to a substantial risk of causing 
        injury without legal justification, or for a purpose 
        unrelated to the performance of responsibilities or 
        functions under this section.
          (3) Ordinary business activities.--Paragraph (1) does 
        not apply to an act or omission related to an ordinary 
        business activity, such as an activity involving 
        general administration or operations, the use of motor 
        vehicles, or personnel management.
  (h) Use of Information To Combat Child Pornography.--The 
National Center for Missing and Exploited Children is 
authorized to provide elements relating to any image or other 
relevant information reported to its Cyber Tip Line to an 
electronic communication service provider or a remote computing 
service provider for the sole and exclusive purpose of 
permitting that electronic communication service provider or 
remote computing service provider to stop the further 
transmission of images and develop anti-child pornography 
technologies and related industry best practices. Any 
electronic communication service provider or remote computing 
service provider that receives information from the National 
Center for Missing and Exploited Children under this subsection 
may use such information only for the purposes described in 
this subsection.

                                  
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