99–008

107TH CONGRESS REPORT " ! HOUSE OF REPRESENTATIVES 2d Session 107–361

PROVIDING FOR CONSIDERATION OF H.R. 1542, INTERNET

FREEDOM AND BROADBAND DEPLOYMENT ACT OF 2001

FEBRUARY 26, 2002.—Referred to the House Calendar and ordered to be printed

Mr. LINDER, from the Committee on Rules, submitted the following

R E P O R T

[To accompany H. Res. 350]

The Committee on Rules, having had under consideration House

Resolution 350, by a nonrecord vote, report the same to the House

with the recommendation that the resolution be adopted.

SUMMARY OF PROVISIONS OF THE RESOLUTION

The resolution provides for consideration of H.R. 1542, to deregulate the Internet and high speed data services, and for other purposes. The rule provides 1 hour and 20 minutes of general debate,

with one hour equally divided and controlled by the chairman and

ranking minority member of the Committee on Energy and Commerce and 20 minutes equally divided and controlled by the chairman and ranking minority member of the Committee on the Judiciary.

The rule waives all points of order against consideration of the

bill. The rule provides that the amendment in the nature of a substitute printed in Part A of this report shall be considered as adopted in the House and in the Committee of the Whole. The rule provides that the bill, as amended, shall be considered as the original

bill for the purpose of further amendment and shall be considered

as read.

The rule provides that no further amendment to the bill, as

amended, shall be in order except those printed in Part B of this

report. Further, the amendments printed in Part B of this report

may be offered only in the order printed in this report, may be offered only by a Member designated in this report, shall be considered as read, shall be debatable for the time specified in this report

equally divided and controlled by the proponent and an opponent,

shall not be subject to amendment except as specified in this report, and shall not be subject to a demand for division of the question in the House or in the Committee of the Whole.

2

The rule waives all points of order against amendments printed

in Part B of this report. Finally, the rule provides one motion to

recommit with or without instructions.

AMENDMENTS MADE IN ORDER UNDER THE RULE

(Summaries derived from information provided by sponsors.)

Part A—Summary of Amendment To Be Considered as Adopted

Consists of the text of H.R. 1542 as reported by the Energy and

Commerce Committee modified by the amendment offered by Mr.

Tauzin and Mr. Sensenbrenner which clarifies that the antitrust

laws are not repealed by, not precluded by, not diminished by and

not incompatible with the Communications Act of 1934 or the Telecommunications Act of 1996. Requires a Bell Operating Company

to notify the Department of Justice thirty days prior to offering an

interLATA high speed data or Internet backbone service originating in any in-region State in which the company has not received the authority from the FCC to provide interLATA services.

Part B—Summary of Amendments Made in Order

Upton/Green (TX): Increases the FCC’s forfeiture penalties for

phone companies which violate the telecommunications law by elevating the current cap from $1.2 million to $10 million and increasing the current $120,000 fine per violation or each day of a continuing violation to $1 million. For repeat offenders, the amendment doubles these increased forfeiture penalties to $2 million per

violation or each day of a continuing violation, capped at $20 million. The amendment doubles from 1 year to 2 years the statute of

limitations for the FCC to bring enforcement actions against phone

companies, gives the FCC clear, statutory ‘‘cease and desist’’ authority to use against phone companies which violate any of the

telecommunications laws and directs the FCC to study the impact

of the enhanced penalties under the bill and report back to Congress within one year after enactment. (40 minutes)

Cannon/Conyers: Line by line change to H.R. 1542: protects competitive investments by preserving the existing rules for telecommunications services that the competitive local exchange carriers relied upon when making investments and preserves State

authority and consumer safeguards from the broad preemption of

such authority granted under H.R. 1542. Preserves State authority

and consumer safeguards from the preemption of such authority

granted under H.R. 1542. (60 minutes)

Buyer/Towns Substitute Amendment for the Amendment offered

by Cannon/Conyers:

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

PART B—TEXT OF AMENDMENTS MADE IN ORDER UNDER THE RULE

1. AN AMENDMENT TO BE OFFERED BY REPRESENTATIVE UPTON OF

MICHIGAN, OR A DESIGNEE, DEBATABLE FOR 40 MINUTES

At the end of the bill, add the following new section:

SEC. 9. COMMON CARRIER ENFORCEMENT.

(a) CEASE AND DESIST AUTHORITY.—Section 501 of the Communications Act of 1934 (47 U.S.C. 501) is amended—

(1) by striking ‘‘Any person’’ and inserting ‘‘(a) FINES AND IMPRISONMENT.—Any person’’;

(2) by adding at the end the following new subsection:

‘‘(b) CEASE AND DESIST ORDERS.—If, after a hearing, the Commission determines that any common carrier is engaged in an act,

matter, or thing prohibited by this Act, or is failing to perform any

act, matter, or thing required by this Act, the Commission may

order such common carrier to cease or desist from such action or

inaction.’’.

(b) FORFEITURE PENALTIES.—Section 503(b) of the Communications Act of 1934 (47 U.S.C. 503(b)) is amended—

(1) in paragraph (2)(B)—

(A) by striking ‘‘exceed $100,000’’ and inserting ‘‘exceed

$1,000,000’’; and

(B) by striking ‘‘of $1,000,000’’ and inserting ‘‘of

$10,000,000’’;

(2) in paragraph (2)(C), by striking ‘‘subparagraph (A) or (B)’’

and inserting ‘‘subparagraph (A), (B), or (C)’’;

(3) by redesignating subparagraphs (C) and (D) of paragraph

(2) as subparagraphs (D) and (E), respectively;

(4) by inserting after subparagraph (B) of paragraph (2) the

following new subparagraph:

‘‘(C) If a common carrier has violated a cease and desist order or

has previously been assessed a forfeiture penalty for a violation of

a provision of this Act or of any rule, regulation, or order issued

by the Commission, and if the Commission or an administrative

law judge determines that such common carrier has willfully violated the same provision, rule, regulation, that this repeated violation has caused harm to competition, and that such common carrier

has been assessed a forfeiture penalty under this subsection for

such previous violation, the Commission may assess a forfeiture

penalty not to exceed $2,000,000 for each violation or each day of

continuing violation; except that the amount of such forfeiture penalty shall not exceed $20,000,000.’’; and

(5) in paragraph (6)(B), by striking ‘‘1 year’’ and inserting ‘‘2

years’’.

(c) EVALUATION OF IMPACT.—

(1) EVALUATION REQUIRED.—Within one year after the date

of enactment of this Act, the Federal Communications Commission shall conduct an evaluation of the impact of the increased

remedies available under the amendments made by this section on improving compliance with the requirements of the

Communications Act of 1934, and with the rules, regulations,

and orders of the Commission thereunder. Such evaluation

shall include—

27

(A) an assessment of the number of enforcement proceedings commenced before and after such date of enactment;

(B) an analysis of any changes in the number, type, seriousness, or repetition of violations; and

(C) an analysis of such other factors as the Commission

considers appropriate to evaluate such impact.

(2) REPORT.—Within one year after such date of enactment,

the Commission shall submit a report on the evaluation to the

Committee on Energy and Commerce of the House of Representatives and the Committee on Commerce, Science, and

Transportation of the Senate.

2. AN AMENDMENT TO BE OFFERED BY REPRESENTATIVE CANNON

OF UTAH, OR A DESIGNEE, DEBATABLE FOR 60 MINUTES

Page 6, beginning on line 5, strike ‘‘neither the Commission, nor

any State, shall have’’ and insert ‘‘the Commission shall have no’’.

Page 6, beginning on line 15, strike ‘‘State to regulate circuitswitched telephone exchange services,’’ and insert ‘‘State,’’.

Page 6, line 13, strike ‘‘(b) SAVINGS PROVISION.—’’ and insert the

following:

‘‘(b) SAVINGS PROVISIONS.—

‘‘(1) STATE AUTHORITY.—’’.

Page 6, after line 18, insert the following new paragraphs:

‘‘(2) EXISTING RULES AND COMPETITION PRESERVED.—Notwithstanding the limitations on Commission and State authority contained in the Internet Freedom and Broadband Deployment Act of 2001 (including the amendments made by such

Act), in order to preserve and promote fair competition, innovation, economic investment, and consumer choice, no provision

of such Act or amendments shall restrict or affect in any way

the application and enforcement of the Federal and State rules

in effect on the date of enactment of such Act relating to the

rates, charges, terms, and conditions for the purchasing or

leasing of telecommunications services and network elements

by competitive telecommunications carriers.

‘‘(3) ADDITIONAL COMMISSION AUTHORITY PRESERVED.—Notwithstanding the limitations on Commission authority contained in the Internet Freedom and Broadband Deployment

Act of 2001 (including the amendments made by such Act),

such Act and amendments shall not restrict or affect in any

way—

‘‘(A) the authority of the Commission to adopt regulations to prohibit unsolicited commercial e-mail messages;

‘‘(B) the authority of the Commission to regulate changes

in subscriber carrier selections or the imposition of charges

on telephone bills for unauthorized services; or

‘‘(C) the authority of the Commission— ‘‘(i) with respect to customer proprietary network information, as provided in section 222; ‘‘(ii) with respect to rules and procedures adopted

pursuant to section 223 to restrict the provision of pornography to minors and unconsenting adults; or

28

‘‘(iii) with respect to access by persons with disabilities, as provided in section 255.

Page 7, beginning on line 11, strike ‘‘neither the Commission nor

any State shall require’’ and insert ‘‘the Commission shall not require’’. Page 12, beginning on line 23, strike ‘‘Internet access’’ and insert ‘‘such’’.

3. AN AMENDMENT TO BE OFFERED BY REPRESENTATIVE BUYER OF

INDIANA, OR A DESIGNEE, AS A SUBSTITUTE FOR THE AMENDMENT

NUMBERED 2, TO BE OFFERED BY REPRESENTATIVE CANNON OF

UTAH, OR A DESIGNEE, DEBATABLE FOR 60 MINUTES

Page 6, beginning on line 9, strike ‘‘, or to regulate any network

element to the extent it is used in the provision of any such service’’.

Page 7, strike line 7 and all that follows through line 2 on page

9 and insert the following: ‘‘(j) GUARANTEED ACCESS TO CONSUMERS FOR CLECS.— ‘‘(1) ACCESS RULES.— ‘‘(A) PRESERVATION OF RULES GUARANTEEING CLEC AC- CESS TO INCUMBENT CARRIER FACILITIES.—Except as provided in subparagraph (E), the Commission is not required

to repeal or modify the regulations in effect on May 24,

2001, that enable a requesting carrier to use the facilities

of an incumbent local exchange carrier to provide high

speed data services. ‘‘(B) TRANSPORT SERVICES AVAILABLE TO CLECS.— ‘‘(i) OFFERING REQUIRED.—If an incumbent local exchange carrier provides high-speed data services over

a fiber local loop or fiber feeder subloop, that carrier

shall offer, over such loop or subloop for delivery at

the incumbent local exchange carrier’s serving central

office, a high speed data service that is provided by

such carrier utilizing an industry-standard protocol.

‘‘(ii) TRANSMISSION OPTIONS.—Such service shall enable a requesting carrier to transmit information over

an incumbent local exchange carrier’s facilities between that incumbent local exchange carrier’s serving

central office and (I) a customer’s premises served by

that serving central office; (II) a remote terminal supplied by the requesting carrier; or (III) a high frequency portion of the copper subloop obtained by such

requesting carrier pursuant to the provisions of subsection (c)(3).

‘‘(iii) RATES, TERMS, AND CONDITIONS.—Such high

speed data service shall be offered on rates, terms, and

conditions that are just and reasonable in accordance

with section 201(b). For such purposes, such high

speed data service shall be deemed a nondominant

service.

‘‘(iv) SERVING CENTRAL OFFICE DEFINITION.—For the

purpose of this subparagraph, the term ‘serving central office’ means the centralized location where the

incumbent local exchange carrier has elected to proVerDate 11-MAY-2000 03:45 Feb 27, 2002 Jkt 099008 PO 00000 Frm 00028 Fmt 6659 Sfmt 6602 E:\HR\OC\HR361.XXX pfrm09 PsN: HR361
29

vide access to the high speed data service required by

this subparagraph.

‘‘(C) SPACE ADJACENT TO AN INCUMBENT’S REMOTE TERMINAL.—Subparagraph (E)(iii) does not relieve an incumbent carrier of any obligation under regulations in effect

on May 24, 2001, to provide space adjacent to its remote

terminal to a requesting carrier so that the requesting carrier may construct its own remote terminal.

‘‘(D) CLEC ACCESS TO INCUMBENT CARRIER RIGHTS-OFWAY.—Any incumbent local exchange carrier has the duty

to afford access to its poles, conduits, and rights-of-way in

accordance with subsection (b)(4) for provision of high

speed data service.

‘‘(E) SCOPE.—Notwithstanding any provision of law, neither the Commission nor any State shall—

‘‘(i) require an incumbent local exchange carrier to

provide unbundled access in accordance with subsection (c)(3) to any packet switching network element;

‘‘(ii) require an incumbent local exchange carrier to

provide, for the provision of high speed data service,

access on an unbundled basis in accordance with subsection (c)(3) to any fiber local loop or fiber feeder

subloop; or

‘‘(iii) require an incumbent local exchange carrier to

provide for collocation in accordance with subsection

(c)(6) in a remote terminal, or to construct or make

available space in a remote terminal.

‘‘(F) REINTERPRETATION.—Consistent with subparagraph

(E), neither the Commission nor any State shall construe,

interpret, or apply this section in such a manner as to expand an incumbent local exchange carrier’s obligation, as

in effect on May 24, 2001, to provide access in accordance

with subsection (c)(3) to any network element for the provision of high speed data service, or to provide collocation

in accordance with subsection (c)(6) for the provision of

high speed data service.

Page 9, lines 3 and 15, redesignate subparagraphs (E) and (F) as

subparagraphs (G) and (H), respectively.

Page 10, beginning on line 11, strike paragraph (3) through page

11, line 3, and insert the following:

‘‘(3) DEFINITIONS.—For purposes of this subsection—

‘‘(A) the term ‘fiber feeder subloop’ means the entirely

fiber optic cable portion of the local loop between the feeder/distribution interface (or its equivalent) and a distribution frame (or its equivalent) in an incumbent local exchange carrier central office, including all features, functions, and capabilities of such portion of the local loop;

‘‘(B) the term ‘fiber local loop’ means an entirely fiber

optic cable transmission facility, including all features,

functions, and capabilities of such transmission facility, between a distribution frame (or its equivalent) in an incumbent local exchange carrier central office and the loop demarcation point at an end-user customer premise;

‘‘(C) the term ‘packet switching network element’—

30

‘‘(i) means a network element that performs, or offers the capability to perform— ‘‘(I) the basic packet switching function of routing or forwarding packets, frames, cells, or other

data units based on address or other routing information contained in the packets, frames, cells, or

other data units, including the functions that are

performed by digital subscriber line access multiplexers; or ‘‘(II) any successor to the functions described in

clause (i); ‘‘(ii) includes such element on a stand-alone basis, or

as a part of a combination with one or more other network elements; and ‘‘(iii) does not include elements of the signaling system 7 network transmitting signaling information between switching points; ‘‘(D) the term ‘remote terminal’ means a controlled environment hut, controlled environment vault, cabinet, or

other structure at a remote location between the central

office and a customer’s premises; and ‘‘(E) the term ‘signaling system 7 network’ means the

network that uses signaling links to transmit routing messages between switches and between switches and call related data bases.’’. Page 7, line 3, strike the close quotation marks and the following

period, and after such line insert the following: ‘‘(d) ADDITIONAL COMMISSION AUTHORITY PRESERVED.—Notwithstanding subsection (a), such subsection shall not restrict or affect

in any way the authority of the Commission— ‘‘(1) to adopt regulations to prohibit unsolicited commercial email messages; ‘‘(2) to regulate changes in subscriber carrier selections or

the imposition of charges on telephone bills for unauthorized

services; or

‘‘(3) with respect to—

‘‘(A) customer proprietary network information, as provided in section 222;

‘‘(B) with respect to rules and procedures adopted pursuant to section 223 to restrict the provision of pornography

to minors and unconsenting adults; or

‘‘(C) with respect to access by persons with disabilities,

as provided in section 255.’’.

Page 6, line 12, insert before the period the following: ‘‘that is not

imposed or required on the date of enactment of this section’’.

Æ