I

105TH CONGRESS

2D SESSION S. 1618

IN THE HOUSE OF REPRESENTATIVES

OCTOBER 21, 1998

Referred to the Committee on Commerce

AN ACT

To amend the Communications Act of 1934 to improve the

protection of consumers against ‘‘slamming’’ by telecommunications carriers, and for other purposes.

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled,

3 SECTION 1. SHORT TITLE.

4 This Act may be cited as the ‘‘Anti-slamming Amend5 ments Act’’.
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1 TITLE I—SLAMMING

2 SEC. 101. IMPROVED PROTECTION FOR CONSUMERS.

3 (a) VERIFICATION OF AUTHORIZATION.—Subsection

4 (a) of section 258 of the Communications Act of 1934 (47

5 U.S.C. 258) is amended to read as follows:

6 ‘‘(a) PROHIBITION.—

7 ‘‘(1) IN GENERAL.—No telecommunications

8 carrier or reseller of telecommunications services

9 shall submit or execute a change in a subscriber’s

10 selection of a provider of telephone exchange service

11 or telephone toll service except in accordance with

12 this section and such verification procedures as the

13 Commission shall prescribe.

14 ‘‘(2) VERIFICATION.—

15 ‘‘(A) IN GENERAL.—In order to verify a

16 subscriber’s selection of a telephone exchange

17 service or telephone toll service provider under

18 this section, the telecommunications carrier or

19 reseller shall, at a minimum, require the

20 subscriber—

21 ‘‘(i) to affirm that the subscriber is

22 authorized to select the provider of that

23 service for the telephone number in ques24 tion;
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1 ‘‘(ii) to acknowledge the type of serv2 ice to be changed as a result of the selec3 tion;

4 ‘‘(iii) to affirm the subscriber’s intent

5 to select the provider as the provider of

6 that service;

7 ‘‘(iv) to acknowledge that the selection

8 of the provider will result in a change in

9 providers of that service; and

10 ‘‘(v) to provide such other information

11 as the Commission considers appropriate

12 for the protection of the subscriber.

13 ‘‘(B) ADDITIONAL REQUIREMENTS.—The

14 procedures prescribed by the Commission to

15 verify a subscriber’s selection of a provider

16 shall—

17 ‘‘(i) preclude the use of negative op18 tion marketing;

19 ‘‘(ii) provide for a complete copy of

20 verification of a change in telephone ex21 change service or telephone toll service pro22 vider in oral, written, or electronic form;

23 ‘‘(iii) require the retention of such

24 verification in such manner and form and
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1 for such time as the Commission considers

2 appropriate;

3 ‘‘(iv) mandate that verification occur

4 in the same language as that in which the

5 change was solicited; and

6 ‘‘(v) provide for verification to be

7 made available to a subscriber on request.

8 ‘‘(3) ACTION BY UNAFFILIATED RESELLER NOT

9 IMPUTED TO CARRIER.—No telecommunications car10 rier may be found to be in violation of this section

11 solely on the basis of a violation of this section by

12 an unaffiliated reseller of that carrier’s services or

13 facilities.

14 ‘‘(4) FREEZE OPTION PROTECTED.—The Com15 mission may not take action under this section to

16 limit or inhibit a subscriber’s ability to require that

17 any change in the subscriber’s choice of a provider

18 of interexchange service not be effected unless the

19 change is expressly and directly communicated by

20 the subscriber to the subscriber’s existing telephone

21 exchange service provider.

22 ‘‘(5) APPLICATION TO WIRELESS.—This section

23 does not apply to a provider of commercial mobile

24 service.’’.
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1 (b) LIABILITY FOR CHARGES.—Subsection (b) of

2 such section is amended—

3 (1) by striking ‘‘(b) LIABILITY FOR

4 CHARGES.—Any telecommunications carrier’’ and

5 inserting the following:

6 ‘‘(b) LIABILITY FOR CHARGES.—

7 ‘‘(1) IN GENERAL.—Any telecommunications

8 carrier or reseller of telecommunications services’’;

9 (2) by designating the second sentence as para10 graph (3) and inserting at the beginning of such

11 paragraph, as so designated, the following:

12 ‘‘(3) CONSTRUCTION OF REMEDIES.—’’; and

13 (3) by inserting after paragraph (1), as des14 ignated by paragraph (1) of this subsection, the fol15 lowing:

16 ‘‘(2) SUBSCRIBER PAYMENT OPTION.—

17 ‘‘(A) IN GENERAL.—A subscriber whose

18 telephone exchange service or telephone toll

19 service is changed in violation of the provisions

20 of this section, or the procedures prescribed

21 under subsection (a), may elect to pay the car22 rier or reseller previously selected by the sub23 scriber for any such service received after the

24 change in full satisfaction of amounts due from
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1 the subscriber to the carrier or reseller provid2 ing such service after the change.

3 ‘‘(B) PAYMENT RATE.—Payment for serv4 ice under subparagraph (A) shall be at the rate

5 for such service charged by the carrier or re6 seller previously selected by the subscriber con7 cerned.’’.

8 (c) RESOLUTION OF COMPLAINTS.—Section 258 of

9 the Communications Act of 1934 (47 U.S.C. 258) is

10 amended by adding at the end thereof the following:

11 ‘‘(c) NOTICE TO SUBSCRIBER.—Whenever there is a

12 change in a subscriber’s selection of a provider of tele13 phone exchange service or telephone toll service, the tele14 communications carrier or reseller selected shall notify the

15 subscriber in a specific and unambiguous writing, not

16 more than 15 days after the change is processed by the

17 telecommunications carrier or the reseller—

18 ‘‘(1) of the subscriber’s new carrier or reseller;

19 and

20 ‘‘(2) that the subscriber may request informa21 tion regarding the date on which the change was

22 agreed to and the name of the individual who au23 thorized the change.

24 ‘‘(d) RESOLUTION OF COMPLAINTS.—

25 ‘‘(1) PROMPT RESOLUTION.—
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1 ‘‘(A) IN GENERAL.—The Commission shall

2 prescribe a period of time for a telecommuni3 cations carrier or reseller to resolve a complaint

4 by a subscriber concerning an unauthorized

5 change in the subscriber’s selection of a pro6 vider of telephone exchange service or telephone

7 toll service not in excess of 120 days after the

8 telecommunications carrier or reseller receives

9 notice from the subscriber of the complaint. A

10 subscriber may at any time pursue such a com11 plaint with the Commission, in a State or local

12 administrative or judicial body, or elsewhere.

13 ‘‘(B) UNRESOLVED COMPLAINTS.—If a

14 telecommunications carrier or reseller fails to

15 resolve a complaint within the time period pre16 scribed by the Commission, then, within 10

17 days after the end of that period, the tele18 communications carrier or reseller shall—

19 ‘‘(i) notify the subscriber in writing of

20 the subscriber’s right to file a complaint

21 with the Commission and of the subscrib22 er’s rights and remedies under this section;

23 ‘‘(ii) inform the subscriber in writing

24 of the procedures prescribed by the Com25 mission for filing such a complaint; and
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1 ‘‘(iii) provide the subscriber a copy of

2 any evidence in the carrier’s or reseller’s

3 possession showing that the change in the

4 subscriber’s provider of telephone exchange

5 service or telephone toll service was sub6 mitted or executed in accordance with the

7 verification procedures prescribed under

8 subsection (a).

9 ‘‘(2) RESOLUTION BY COMMISSION.—

10 ‘‘(A) DETERMINATION OF VIOLATION.—

11 The Commission shall provide a simplified proc12 ess for resolving complaints under paragraph

13 (1)(B). The simplified procedure shall preclude

14 the use of interrogatories, depositions, discov15 ery, or other procedural techniques that might

16 unduly increase the expense, formality, and

17 time involved in the process. The Commission

18 shall determine whether there has been a viola19 tion of subsection (a) and shall issue a decision

20 or ruling at the earliest date practicable, but in

21 no event later than 150 days after the date on

22 which it received the complaint.

23 ‘‘(B) DETERMINATION OF DAMAGES AND

24 PENALTIES.—If the Commission determines

25 that there has been a violation of subsection
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1 (a), it shall issue a decision or ruling determin2 ing the amount of the damages and penalties at

3 the earliest practicable date, but in no event

4 later than 90 days after the date on which it

5 issued its decision or ruling under subpara6 graph (A).

7 ‘‘(3) DAMAGES AWARDED BY COMMISSION.—If

8 a violation of subsection (a) is found by the Commis9 sion, the Commission may award damages equal to

10 the greater of $500 or the amount of actual dam11 ages for each violation. The Commission may, in its

12 discretion, increase the amount of the award to an

13 amount equal to not more than 3 times the amount

14 available under the preceding sentence.

15 ‘‘(e) DISQUALIFICATION AND REINSTATEMENT.—

16 ‘‘(1) DISQUALIFICATION FROM CERTAIN ACTIVI17 TIES BASED ON CONVICTION.—

18 ‘‘(A) DISQUALIFICATION OF PERSONS.—

19 Subject to subparagraph (C), any person con20 victed under section 2328 of title 18, United

21 States Code, in addition to any fines or impris22 onment under that section, may not carry out

23 any activities covered by section 214.

24 ‘‘(B) DISQUALIFICATION OF COMPANIES.—

25 Subject to subparagraph (C), any company sub-
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1 stantially controlled by a person convicted

2 under section 2328 of title 18, United States

3 Code, in addition to any fines or imprisonment

4 under that section, may not carry out any ac5 tivities covered by section 214.

6 ‘‘(C) REINSTATEMENT.—

7 ‘‘(i) IN GENERAL.—The Commission

8 may terminate the application of subpara9 graph (A) to a person, or subparagraph

10 (B) to a company, if the Commission de11 termines that the termination would be in

12 the public interest.

13 ‘‘(ii) EFFECTIVE DATE.—The termi14 nation of the applicability of subparagraph

15 (A) to a person, or subparagraph (B) to a

16 company, under clause (i) may not take ef17 fect earlier than 5 years after the date on

18 which the applicable subparagraph applied

19 to the person or company concerned.

20 ‘‘(2) CERTIFICATION REQUIREMENT.—Any per21 son described in subparagraph (A) of paragraph (1),

22 or company described in subparagraph (B) of that

23 paragraph, not reinstated under subparagraph (C)

24 of that paragraph shall include with any application

25 to the Commission under section 214 a certification
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1 that the person or company, as the case may be, is

2 described in paragraph (1)(A) or (B), as the case

3 may be.

4 ‘‘(f) CIVIL PENALTIES.—

5 ‘‘(1) IN GENERAL.—Unless the Commission de6 termines that there are mitigating circumstances,

7 violation of subsection (a) is punishable by a forfeit8 ure of not less than $40,000 for the first offense,

9 and not less than $150,000 for each subsequent of10 fense.

11 ‘‘(2) FAILURE TO NOTIFY TREATED AS VIOLA12 TION OF SUBSECTION (a).—If a telecommunications

13 carrier or reseller fails to comply with the require14 ments of subsection (d)(1)(B), then that failure shall

15 be treated as a violation of subsection (a).

16 ‘‘(g) RECOVERY OF FORFEITURES.—The Commis17 sion may take such action as may be necessary—

18 ‘‘(1) to collect any forfeitures it imposes under

19 this section; and

20 ‘‘(2) on behalf of any subscriber, to collect any

21 damages awarded the subscriber under this section.

22 ‘‘(h) CHANGE INCLUDES INITIAL SELECTION.—For

23 purposes of this section, the initiation of service to a sub24 scriber by a telecommunications carrier or a reseller shall

25 be treated as a change in a subscriber’s selection of a pro-
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1 vider of telephone exchange service or telephone toll serv2 ice.’’.

3 (d) CRIMINAL PENALTY.—

4 (1) IN GENERAL.—Chapter 113A of title 18,

5 United States Code, is amended by adding at the

6 end thereof the following:

7 ‘‘§ 2328. Slamming

8 ‘‘Any person who submits or executes a change in a

9 provider of telephone exchange service or telephone toll

10 service not authorized by the subscriber in willful violation

11 of the provisions of section 258 of the Communications

12 Act of 1934 (47 U.S.C. 258), or the procedures prescribed

13 under section 258(a) of that Act—

14 ‘‘(A) shall be fined in accordance with this

15 title, imprisoned not more than 1 year, or both;

16 but

17 ‘‘(B) if previously convicted under this

18 paragraph at the time of a subsequent offense,

19 shall be fined in accordance with this title, im20 prisoned not more than 5 years, or both, for

21 such subsequent offense.’’.

22 (2) CONFORMING AMENDMENT.—The chapter

23 analysis for chapter 113A of title 18, United States

24 Code, is amended by adding at the end thereof the

25 following:

‘‘2328. Slamming’’.
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1 (e) STATE RIGHT-OF-ACTION.—Section 258 of the

2 Communications Act of 1934 (47 U.S.C. 258), as amend3 ed by subsection (c), is amended by adding at the end

4 thereof the following:

5 ‘‘(i) ACTIONS BY STATES.—

6 ‘‘(1) IN GENERAL.—The attorney general of a

7 State, or an official or agency designated by a

8 State—

9 ‘‘(A) may bring an action on behalf of its

10 residents to recover damages on their behalf

11 under subsection (d)(3);

12 ‘‘(B) may bring a criminal action to en13 force this section under section 2328 of title 18,

14 United States Code; and

15 ‘‘(C) may bring an action for the assess16 ment of civil penalties under subsection (f),

17 and for purposes of such an action, subsections

18 (d)(3) and (f)(1) shall be applied by substituting

19 ‘the court’ for ‘the Commission’.

20 ‘‘(2) EXCLUSIVE JURISDICTION OF FEDERAL

21 COURTS.—The district courts of the United States,

22 the United States courts of any territory, and the

23 District Court of the United States for the District

24 of Columbia shall have exclusive jurisdiction over all

25 actions brought under this section. When a State
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1 brings an action under this section, the court in

2 which the action is brought has pendant jurisdiction

3 of any claim brought under the law of that State.

4 Upon proper application, such courts shall also have

5 jurisdiction to issue writs of mandamus, or orders

6 affording like relief, commanding the defendant to

7 comply with the provisions of this section or regula8 tions prescribed under this section, including the re9 quirement that the defendant take such action as is

10 necessary to remove the danger of such violation.

11 Upon a proper showing, a permanent or temporary

12 injunction or restraining order shall be granted with13 out bond.

14 ‘‘(3) RIGHTS OF COMMISSION.—The State shall

15 serve prior written notice of any such civil action

16 upon the Commission and provide the Commission

17 with a copy of its complaint, except in any case

18 where such prior notice is not feasible, in which case

19 the State shall serve such notice immediately upon

20 instituting such action. The Commission shall have

21 the right—

22 ‘‘(A) to intervene in the action;

23 ‘‘(B) upon so intervening, to be heard on

24 all matters arising therein; and

25 ‘‘(C) to file petitions for appeal.
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1 ‘‘(4) VENUE; SERVICE OF PROCESS.—Any civil

2 action brought under this subsection in a district

3 court of the United States may be brought in the

4 district wherein the subscriber or defendant is found

5 or is an inhabitant or transacts business or wherein

6 the violation occurred or is occurring, and process in

7 such cases may be served in any district in which

8 the defendant is an inhabitant or where the defend9 ant may be found.

10 ‘‘(5) INVESTIGATORY POWERS.—For purposes

11 of bringing any civil action under this subsection,

12 nothing in this section shall prevent the attorney

13 general of a State, or an official or agency des14 ignated by a State, from exercising the powers con15 ferred on the attorney general or such official by the

16 laws of such State to conduct investigations or to

17 administer oaths or affirmations or to compel the at18 tendance of witnesses or the production of documen19 tary and other evidence.

20 ‘‘(j) STATE LAW NOT PREEMPTED.—

21 ‘‘(1) IN GENERAL.—Nothing in this section or

22 in the regulations prescribed under this section shall

23 preempt any State law that imposes more restrictive

24 requirements, regulations, damages, costs, or pen25 alties on changes in a subscriber’s service or selec-
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1 tion of a provider of telephone exchange service or

2 telephone toll services than are imposed under this

3 section.

4 ‘‘(2) EFFECT ON STATE COURT PROCEED5 INGS.—Nothing contained in this section shall be

6 construed to prohibit an authorized State official

7 from proceeding in State court on the basis of an al8 leged violation of any general civil or criminal stat9 ute of such State or any specific civil or criminal

10 statute of such State not preempted by this section.

11 ‘‘(3) LIMITATIONS.—Whenever a complaint is

12 pending before the Commission involving a violation

13 of regulations prescribed under this section, no State

14 may, during the pendency of such complaint, insti15 tute a civil action against any defendant party to the

16 complaint for any violation affecting the same sub17 scriber alleged in the complaint.

18 ‘‘(k) REPORTS ON COMPLAINTS.—

19 ‘‘(1) REPORTS REQUIRED.—Each telecommuni20 cations carrier or reseller shall submit to the Com21 mission, quarterly, a report on the number of com22 plaints of unauthorized changes in providers of tele23 phone exchange service or telephone toll service that

24 are submitted to the carrier or reseller by its sub25 scribers. Each report shall specify each provider of
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1 service complained of and the number of complaints

2 relating to such provider.

3 ‘‘(2) LIMITATION ON SCOPE.—The Commission

4 may not require any information in a report under

5 paragraph (1) other than the information specified

6 in the second sentence of that paragraph.

7 ‘‘(3) UTILIZATION.—The Commission shall use

8 the information submitted in reports under para9 graph (1) to identify telecommunications carriers or

10 resellers that engage in patterns and practices of un11 authorized changes in providers of telephone ex12 change service or telephone toll service.

13 ‘‘(l) DEFINITIONS.—For purposes of this section:

14 ‘‘(1) ATTORNEY GENERAL.—The term ‘attorney

15 general’ means the chief legal officer of a State.

16 ‘‘(2) SUBSCRIBER.—The term ‘subscriber’

17 means the person named on the billing statement or

18 account, or any other person authorized to make

19 changes in the providers of telephone exchange serv20 ice or telephone toll service.’’.

21 (f) REPORT ON CARRIERS EXECUTING UNAUTHOR22 IZED CHANGES OF TELEPHONE SERVICE.—

23 (1) REPORT.—Not later than October 31,

24 1998, the Federal Communications Commission

25 shall submit to Congress a report on unauthorized
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1 changes of subscribers’ selections of providers of

2 telephone exchange service or telephone toll service.

3 (2) ELEMENTS.—The report shall include the

4 following:

5 (A) A list of the 10 telecommunications

6 carriers or resellers that, during the 1-year pe7 riod ending on the date of the report, were sub8 ject to the highest number of complaints of hav9 ing executed unauthorized changes of subscrib10 ers from their selected providers of telephone

11 exchange service or telephone toll service when

12 compared with the total number of subscribers

13 served by such carriers or resellers.

14 (B) The telecommunications carriers or re15 sellers, if any, assessed forfeitures under section

16 258(f) of the Communications Act of 1934 (as

17 added by subsection (d)), during that period,

18 including the amount of each such forfeiture

19 and whether the forfeiture was assessed as a re20 sult of a court judgment or an order of the

21 Commission or was secured pursuant to a con22 sent decree.

23 SEC. 102. ADDITIONAL ENFORCEMENT AUTHORITY.

24 Section 504 of the Communications Act of 1934 (47

25 U.S.C. 504) is amended by adding at the end thereof the
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1 following: ‘‘Notwithstanding the preceding sentence, the

2 failure of a person to pay a forfeiture imposed for violation

3 of section 258(a) may be used as a basis for revoking,

4 denying, or limiting that person’s operating authority

5 under section 214 or 312.’’.

6 SEC. 103. OBLIGATIONS OF BILLING AGENTS.

7 (a) IN GENERAL.—Part I of title II of the Commu8 nications Act of 1934 (47 U.S.C. 201 et seq.) is amended

9 by adding at the end thereof the following:

10 ‘‘SEC. 231. OBLIGATIONS OF TELEPHONE BILLING AGENTS.

11 ‘‘(a) IN GENERAL.—A billing agent, including a tele12 communications carrier or reseller, who issues a bill for

13 telephone exchange service or telephone toll service to a

14 subscriber shall—

15 ‘‘(1) state on the bill—

16 ‘‘(A) the name and toll-free telephone

17 number of any telecommunications carrier or

18 reseller for the subscriber’s telephone exchange

19 service and telephone toll service;

20 ‘‘(B) the identity of the presubscribed car21 rier or reseller; and

22 ‘‘(C) the charges associated with each car23 rier’s or reseller’s provision of telecommuni24 cations service during the billing period;
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1 ‘‘(2) for services other than those described in

2 paragraph (1), state on a separate page—

3 ‘‘(A) the name of any company whose

4 charges are reflected on the subscriber’s bill;

5 ‘‘(B) the services for which the subscriber

6 is being charged by that company;

7 ‘‘(C) the charges associated with that com8 pany’s provision of service during the billing pe9 riod;

10 ‘‘(D) the toll-free telephone number that

11 the subscriber may call to dispute that compa12 ny’s charges; and

13 ‘‘(E) that disputes about that company’s

14 charges will not result in disruption of tele15 phone exchange service or telephone toll service;

16 and

17 ‘‘(3) show the mailing address of any tele18 communications carrier or reseller or other company

19 whose charges are reflected on the bill.

20 ‘‘(b) KNOWING INCLUSION OF UNAUTHORIZED OR

21 IMPROPER CHARGES PROHIBITED.—A billing agent may

22 not submit charges for telecommunications services or

23 other services to a subscriber if the billing agent knows,

24 or should know, that the subscriber did not authorize the

25 charges or that the charges are otherwise improper.’’.
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1 (b) EFFECTIVE DATE.—The amendment made by

2 subsection (a) applies to bills to subscribers for tele3 communications services sent to subscribers more than 60

4 days after the date of enactment of this Act.

5 SEC. 104. FCC JURISDICTION OVER BILLING SERVICE PRO6 VIDERS.

7 Part III of title II of the Communications Act of

8 1934 (47 U.S.C. 271 et seq.) is amended by adding at

9 the end thereof the following:

10 ‘‘SEC. 277. JURISDICTION OVER BILLING SERVICE PROVID11 ERS.

12 ‘‘The Commission has jurisdiction to assess and re13 cover any penalty imposed under title V of this Act against

14 an entity not a telecommunications carrier or reseller to

15 the extent that entity provides billing services for the pro16 vision of telecommunications services, or for services other

17 than telecommunications services that appear on a sub18 scriber’s telephone bill for telecommunications services,

19 but the Commission may assess and recover such penalties

20 only if that entity knowingly or willfully violates the provi21 sions of this Act or any rule or order of the Commission.’’.

22 SEC. 105. REPORT; STUDY.

23 (a) IN GENERAL.—The Federal Communications

24 Commission shall issue a report within 180 days after the

25 date of enactment of this Act on the telemarketing and
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1 other solicitation practices used by telecommunications

2 carriers or resellers or their agents or employees for the

3 purpose of changing the telephone exchange service or

4 telephone toll service provider of a subscriber.

5 (b) SPECIFIC ISSUES.—As part of the report required

6 under subsection (a), the Commission shall include find7 ings on—

8 (1) the extent to which imposing penalties on

9 telemarketers would deter unauthorized changes in a

10 subscriber’s selection of a provider of telephone ex11 change service or telephone toll service;

12 (2) the need for rules requiring third-party ver13 ification of changes in a subscriber’s selection of

14 such a provider and independent third party admin15 istration of presubscribed interexchange carrier

16 changes; and

17 (3) whether wireless carriers should continue to

18 be exempt from the requirements imposed by section

19 258 of the Communications Act of 1934 (47 U.S.C.

20 258).

21 (c) RULEMAKING.—If the Commission determines

22 that particular telemarketing or other solicitation prac23 tices are being used with the intention to mislead, deceive,

24 or confuse subscribers and that they are likely to mislead,

25 deceive, or confuse subscribers, then the Commission shall
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1 initiate a rulemaking to prohibit the use of such practices

2 within 120 days after the completion of its report.

3 SEC. 106. DISCLOSURE OF CERTAIN RECORDS FOR INVES4 TIGATIONS OF TELEMARKETING FRAUD.

5 Section 2703(c)(1)(B) of title 18, United States

6 Code, is amended by—

7 (1) striking ‘‘or’’ at the end of clause (ii);

8 (2) striking the period at the end of clause (iii)

9 and inserting ‘‘; or’’; and

10 (3) adding at the end the following:

11 ‘‘(iv) submits a formal written request rel12 evant to a law enforcement investigation con13 cerning telemarketing fraud for the name, ad14 dress, and place of business of a subscriber or

15 customer of such provider, which subscriber or

16 customer is engaged in telemarketing (as such

17 term is in section 2325 of this title).’’.

18 TITLE II—SWITCHLESS

19 RESELLERS

20 SEC. 201. REQUIREMENT FOR SURETY BONDS FROM TELE21 COMMUNICATIONS CARRIERS OPERATING AS

22 SWITCHLESS RESELLERS.

23 Part I of title II of the Communications Act of 1934

24 (47 U.S.C. 201 et seq.), as amended by section 103 of

25 this Act, is amended by adding at the end the following:
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1 ‘‘SEC. 232. SURETY BONDS FROM TELECOMMUNICATIONS

2 CARRIERS OPERATING AS SWITCHLESS RE3 SELLERS.

4 ‘‘(a) REQUIREMENT.—Under such regulations as the

5 Commission shall prescribe, any telecommunications car6 rier operating or seeking to operate as a switchless reseller

7 shall furnish to the Commission a surety bond in a form

8 and an amount determined by the Commission to be satis9 factory for purposes of this section.

10 ‘‘(b) SURETY.—A surety bond furnished pursuant to

11 this section shall be issued by a surety corporation that

12 meets the requirements of section 9304 of title 31, United

13 States Code.

14 ‘‘(c) CLAIMS AGAINST BOND.—A surety bond fur15 nished under this section shall be available to pay the fol16 lowing:

17 ‘‘(1) Any fine or penalty imposed against the

18 carrier concerned while operating as a switchless re19 seller as a result of a violation of the provisions of

20 section 258 (relating to unauthorized changes in

21 subscriber selections to telecommunications carriers).

22 ‘‘(2) Any penalty imposed against the carrier

23 under this section.

24 ‘‘(3) Any other fine or penalty, including a for25 feiture penalty, imposed against the carrier under

26 this Act.
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1 ‘‘(d) RESIDENT AGENT.—A telecommunications car2 rier operating as a switchless reseller that is not domiciled

3 in the United States shall designate a resident agent in

4 the United States for receipt of service of judicial and ad5 ministrative process, including subpoenas.

6 ‘‘(e) PENALTIES.—

7 ‘‘(1) SUSPENSION.—The Commission may sus8 pend the right of any telecommunications carrier to

9 operate as a switchless reseller—

10 ‘‘(A) for failure to furnish or maintain the

11 surety bond required by subsection (a);

12 ‘‘(B) for failure to designate an agent as

13 required by subsection (d); or

14 ‘‘(C) for a violation of section 258 while

15 operating as a switchless reseller.

16 ‘‘(2) ADDITIONAL PENALTIES.—In addition to

17 suspension under paragraph (1), any telecommuni18 cations carrier operating as a switchless reseller that

19 fails to furnish or maintain a surety bond under this

20 section shall be subject to any forfeiture provided for

21 under sections 503 and 504.

22 ‘‘(f) BILLING SERVICES FOR UNBONDED

23 SWITCHLESS RESELLERS.—

24 ‘‘(1) PROHIBITION.—No common carrier or bill25 ing agent may provide billing services for any serv-
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1 ices provided by a switchless reseller unless the

2 switchless reseller—

3 ‘‘(A) has furnished the bond required by

4 subsection (a); and

5 ‘‘(B) in the case of a switchless reseller not

6 domiciled in the United States, has designated

7 an agent under subsection (d).

8 ‘‘(2) PENALTY.—

9 ‘‘(A) PENALTY.—Any common carrier or

10 billing agent that knowingly and willfully pro11 vides billing services to a switchless reseller in

12 violation of paragraph (1) shall be liable to the

13 United States for a civil penalty not to exceed

14 $50,000.

15 ‘‘(B) APPLICABILITY.—For purposes of

16 subparagraph (A), the provision of services to

17 any particular reseller in violation of paragraph

18 (1) shall constitute a separate violation of that

19 paragraph.

20 ‘‘(3) COMMISSION AUTHORITY TO ASSESS AND

21 COLLECT PENALTIES.—The Commission shall have

22 the authority to assess and collect any penalty pro23 vided for under this subsection upon a finding by the

24 Commission of a violation of paragraph (1).

25 ‘‘(g) RETURN OF BONDS.—
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1 ‘‘(1) REVIEW.—

2 ‘‘(A) IN GENERAL.—The Commission may

3 from time to time review the activities of a tele4 communications carrier that has furnished a

5 surety bond under this section for purposes of

6 determining whether or not to retain the bond

7 under this section.

8 ‘‘(B) STANDARDS OF REVIEW.—The Com9 mission shall prescribe any standards applicable

10 to its review of activities under this paragraph.

11 ‘‘(C) FIRST REVIEW.—The Commission

12 may not first review the activities of a carrier

13 under subparagraph (A) before the date that is

14 3 years after the date on which the carrier fur15 nishes the bond concerned under this section.

16 ‘‘(2) RETURN.—The Commission may return a

17 surety bond as a result of a review under this sub18 section.

19 ‘‘(h) DEFINITIONS.—In this section:

20 ‘‘(1) BILLING AGENT.—The term ‘billing agent’

21 means any entity (other than a telecommunications

22 carrier) that provides billing services for services

23 provided by a telecommunications carrier, or other

24 services, if charges for such services appear on the

25 bill of a subscriber for telecommunications services.
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1 ‘‘(2) SWITCHLESS RESELLER.—The term

2 ‘switchless reseller’ means a telecommunications car3 rier that resells the switched telecommunications

4 service of another telecommunications carrier with5 out the use of any switching facilities under its own

6 ownership or control.

7 ‘‘(i) DETARIFFING AUTHORITY NOT IMPAIRED.—

8 Nothing in this section is intended to prohibit the Com9 mission from adopting rules providing for the permissive

10 detariffing of long-distance telephone companies, if the

11 Commission determines that such permissive detariffing

12 would otherwise serve the public interest, convenience, and

13 necessity.’’.

14 TITLE III—SPAMMING

15 SEC. 301. REQUIREMENTS RELATING TO TRANSMISSIONS

16 OF UNSOLICITED COMMERCIAL ELECTRONIC

17 MAIL.

18 (a) INFORMATION TO BE INCLUDED IN TRANS19 MISSIONS.—

20 (1) IN GENERAL.—A person who transmits an

21 unsolicited commercial electronic mail message shall

22 cause to appear in each such electronic mail message

23 the information specified in paragraph (2).

24 (2) COVERED INFORMATION.—The following in25 formation shall appear at the beginning of the body
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1 of an unsolicited commercial electronic mail message

2 under paragraph (1):

3 (A) The name, physical address, electronic

4 mail address, and telephone number of the per5 son who initiates transmission of the message.

6 (B) The name, physical address, electronic

7 mail address, and telephone number of the per8 son who created the content of the message, if

9 different from the information under subpara10 graph (A).

11 (C) A statement that further transmissions

12 of unsolicited commercial electronic mail to the

13 recipient by the person who initiates trans14 mission of the message may be stopped at no

15 cost to the recipient by sending a reply to the

16 originating electronic mail address with the

17 word ‘‘remove’’ in the subject line.

18 (b) ROUTING INFORMATION.—All Internet routing

19 information contained within or accompanying an elec20 tronic mail message described in subsection (a) must be

21 accurate, valid according to the prevailing standards for

22 Internet protocols, and accurately reflect message routing.

23 (c) EFFECTIVE DATE.—The requirements in this sec24 tion shall take effect 30 days after the date of enactment

25 of this Act.
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1 SEC. 302. FEDERAL OVERSIGHT OF UNSOLICITED COMMER2 CIAL ELECTRONIC MAIL.

3 (a) TRANSMISSIONS.—

4 (1) IN GENERAL.—Upon notice from a person

5 of the person’s receipt of electronic mail in violation

6 of a provision of section 301 or 305, the

7 Commission—

8 (A) may conduct an investigation to deter9 mine whether or not the electronic mail was

10 transmitted in violation of such provision; and

11 (B) if the Commission determines that the

12 electronic mail was transmitted in violation of

13 such provision, may—

14 (i) impose upon the person initiating

15 the transmission a civil fine in an amount

16 not to exceed $15,000;

17 (ii) commence in a district court of

18 the United States a civil action to recover

19 a civil penalty in an amount not to exceed

20 $15,000 against the person initiating the

21 transmission;

22 (iii) commence an action in a district

23 court of the United States a civil action to

24 seek injunctive relief; or
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1 (iv) proceed under any combination of

2 the authorities set forth in clauses (i), (ii),

3 and (iii).

4 (2) DEADLINE.—The Commission may not take

5 action under paragraph (1)(B) with respect to a

6 transmission of electronic mail more than 2 years

7 after the date of the transmission.

8 (b) ADMINISTRATION.—

9 (1) NOTICE BY ELECTRONIC MEANS.—The

10 Commission shall establish an Internet web site with

11 an electronic mail address for the receipt of notices

12 under subsection (a).

13 (2) INFORMATION ON ENFORCEMENT.—The

14 Commission shall make available through the Inter15 net web site established under paragraph (1) infor16 mation on the actions taken by the Commission

17 under subsection (a)(1)(B).

18 (3) ASSISTANCE OF OTHER FEDERAL AGEN19 CIES.—Other Federal agencies may assist the Com20 mission in carrying out its duties under this section.

21 SEC. 303. ACTIONS BY STATES.

22 (a) IN GENERAL.—Whenever the attorney general of

23 a State has reason to believe that the interests of the resi24 dents of the State have been or are being threatened or

25 adversely affected because any person is engaging in a pat-
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1 tern or practice of the transmission of electronic mail in

2 violation of a provision of section 301 or 305, the State,

3 as parens patriae, may bring a civil action on behalf of

4 its residents to enjoin such transmission, to enforce com5 pliance with such provision, to obtain damages or other

6 compensation on behalf of its residents, or to obtain such

7 further and other relief as the court considers appropriate.

8 (b) NOTICE TO COMMISSION.—

9 (1) NOTICE.—The State shall serve prior writ10 ten notice of any civil action under this section on

11 the Commission and provide the Commission with a

12 copy of its complaint, except that if it is not feasible

13 for the State to provide such prior notice, the State

14 shall serve written notice immediately on instituting

15 such action.

16 (2) RIGHTS OF COMMISSION.—On receiving a

17 notice with respect to a civil action under paragraph

18 (1), the Commission shall have the right—

19 (A) to intervene in the action;

20 (B) upon so intervening, to be heard in all

21 matters arising therein; and

22 (C) to file petitions for appeal.

23 (c) ACTIONS BY COMMISSION.—Whenever a civil ac24 tion has been instituted by or on behalf of the Commission

25 for violation of a provision of section 301 or 305, no State
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1 may, during the pendency of such action, institute a civil

2 action under this section against any defendant named in

3 the complaint in such action for violation of any provision

4 as alleged in the complaint.

5 (d) CONSTRUCTION.—For purposes of bringing a civil

6 action under subsection (a), nothing in this section shall

7 prevent an attorney general from exercising the powers

8 conferred on the attorney general by the laws of the State

9 concerned to conduct investigations or to administer oaths

10 or affirmations or to compel the attendance of witnesses

11 or the production of documentary or other evidence.

12 (e) VENUE; SERVICE OF PROCESS.—Any civil action

13 brought under subsection (a) in a district court of the

14 United States may be brought in the district in which the

15 defendant is found, is an inhabitant, or transacts business

16 or wherever venue is proper under section 1391 of title

17 28, United States Code. Process in such an action may

18 be served in any district in which the defendant is an in19 habitant or in which the defendant may be found.

20 (f) ACTIONS BY OTHER STATE OFFICIALS.—Nothing

21 in this section may be construed to prohibit an authorized

22 State official from proceeding in State court on the basis

23 of an alleged violation of any civil or criminal statute of

24 the State concerned.

25 (g) DEFINITIONS.—In this section:
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1 (1) ATTORNEY GENERAL.—The term ‘‘attorney

2 general’’ means the chief legal officer of a State.

3 (2) STATE.—The term ‘‘State’’ means any

4 State of the United States, the District of Columbia,

5 Puerto Rico, Guam, American Samoa, the United

6 States Virgin Islands, the Commonwealth of the

7 Northern Mariana Islands, the Republic of the Mar8 shall Islands, the Federated States of Micronesia,

9 the Republic of Palau, and any possession of the

10 United States.

11 SEC. 304. INTERACTIVE COMPUTER SERVICE PROVIDERS.

12 (a) EXEMPTION FOR CERTAIN TRANSMISSIONS.—

13 (1) EXEMPTION.—Section 301 or 305 shall not

14 apply to a transmission of electronic mail by an

15 interactive computer service provider unless—

16 (A) the provider initiates the transmission;

17 or

18 (B) the transmission is not made to its

19 own customers.

20 (2) CONSTRUCTION.—Nothing in this sub21 section may be construed to require an interactive

22 computer service provider to transmit or otherwise

23 deliver any electronic mail message.

24 (b) ACTIONS BY INTERACTIVE COMPUTER SERVICE

25 PROVIDERS.—
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1 (1) IN GENERAL.—In addition to any other

2 remedies available under any other provision of law,

3 any interactive computer service provider adversely

4 affected by a violation of a provision of section 301

5 or 305 may, within 1 year after discovery of the vio6 lation, bring a civil action in a district court of the

7 United States against a person who violates such

8 provision. Such an action may be brought to enjoin

9 the violation, to enforce compliance with such provi10 sion, to obtain damages, or to obtain such further

11 and other relief as the court considers appropriate.

12 (2) DAMAGES.—

13 (A) IN GENERAL.—The amount of dam14 ages in an action under this subsection for a

15 violation specified in paragraph (1) may not ex16 ceed $15,000 per violation.

17 (B) RELATIONSHIP TO OTHER DAM18 AGES.—Damages awarded for a violation under

19 this subsection are in addition to any other

20 damages awardable for the violation under any

21 other provision of law.

22 (C) COST AND FEES.—The court may, in

23 issuing any final order in any action brought

24 under paragraph (1), award costs of suit, rea25 sonable costs of obtaining service of process,
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1 reasonable attorney fees, and expert witness

2 fees for the prevailing party.

3 (3) VENUE; SERVICE OF PROCESS.—Any civil

4 action brought under paragraph (1) in a district

5 court of the United States may be brought in the

6 district in which the defendant or in which the inter7 active computer service provider is located, is an in8 habitant, or transacts business or wherever venue is

9 proper under section 1391 of title 28, United States

10 Code. Process in such an action may be served in

11 any district in which the defendant is an inhabitant

12 or in which the defendant may be found.

13 (c) INTERACTIVE COMPUTER SERVICE PROVIDER

14 DEFINED.—In this section, the term ‘‘interactive com15 puter service provider’’ has the meaning given the term

16 ‘‘interactive computer service’’ in section 230(e)(2) of the

17 Communications Act of 1934 (47 U.S.C. 230(e)(2)).

18 SEC. 305. RECEIPT OF TRANSMISSIONS BY PRIVATE PER19 SONS.

20 (a) TERMINATION OF TRANSMISSIONS.—A person

21 who receives from any other person an electronic mail

22 message requesting the termination of further trans23 mission of commercial electronic mail shall cease the initi24 ation of further transmissions of such mail to the person

25 making the request.
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1 (b) AFFIRMATIVE AUTHORIZATION OF TRANS2 MISSIONS.—

3 (1) IN GENERAL.—Subject to paragraph (2), a

4 person may authorize another person to initiate

5 transmissions of unsolicited commercial electronic

6 mail to the person.

7 (2) AVAILABILITY OF TERMINATION.—A person

8 initiating transmissions of electronic mail under

9 paragraph (1) shall include, with each transmission

10 of such mail to a person authorizing the trans11 mission under that paragraph, the information speci12 fied in section 301(a)(2)(C).

13 (c) CONSTRUCTIVE AUTHORIZATION OF TRANS14 MISSIONS.—

15 (1) IN GENERAL.—Subject to paragraphs (2)

16 and (3), a person who secures a good or service

17 from, or otherwise responds electronically to, an

18 offer in a transmission of unsolicited commercial

19 electronic mail shall be deemed to have authorized

20 the initiation of transmissions of unsolicited com21 mercial electronic mail from the person who initiated

22 the transmission.

23 (2) NO AUTHORIZATION FOR REQUESTS FOR

24 TERMINATION.—An electronic mail request to cease

25 the initiation of further transmissions of electronic
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1 mail under subsection (a) shall not constitute au2 thorization for the initiation of further electronic

3 mail under this subsection.

4 (3) AVAILABILITY OF TERMINATION.—A person

5 initiating transmissions of electronic mail under

6 paragraph (1) shall include, with each transmission

7 of such mail to a person deemed to have authorized

8 the transmission under that paragraph, the informa9 tion specified in section 301(a)(2)(C).

10 (d) EFFECTIVE DATE OF TERMINATION REQUIRE11 MENTS.—Subsections (a), (b)(2), and (c)(3) shall take ef12 fect 30 days after the date of enactment of this Act.

13 SEC. 306. DEFINITIONS.

14 In this title:

15 (1) COMMERCIAL ELECTRONIC MAIL.—The

16 term ‘‘commercial electronic mail’’ means any elec17 tronic mail that—

18 (A) contains an advertisement for the sale

19 of a product or service;

20 (B) contains a solicitation for the use of a

21 telephone number, the use of which connects

22 the user to a person or service that advertises

23 the sale of or sells a product or service; or

24 (C) promotes the use of or contains a list

25 of one or more Internet sites that contain an
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1 advertisement referred to in subparagraph (A)

2 or a solicitation referred to in subparagraph

3 (B).

4 (2) COMMISSION.—The term ‘‘Commission’’

5 means the Federal Trade Commission.

6 (3) the term ‘‘initiate the transmission’’ in the

7 case of an electronic mail message means to origi8 nate the electronic mail message, and does not en9 compass any intervening interactive computer service

10 whose facilities may have been used to relay, handle,

11 or otherwise retransmit the electronic mail message,

12 unless the intervening interactive computer service

13 provider knowingly and intentionally retransmits any

14 electronic mail in violation of section 301 or 305.

15 TITLE IV—MISCELLANEOUS

16 PROVISIONS

17 SEC. 401. ENFORCEMENT OF REGULATIONS REGARDING

18 CITIZENS BAND RADIO EQUIPMENT.

19 Section 302 of the Communications Act of 1934 (47

20 U.S.C. 302) is amended by adding at the end the follow21 ing:

22 ‘‘(f)(1) Except as provided in paragraph (2), a State

23 or local government may enforce the following regulations

24 of the Commission under this section:
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1 ‘‘(A) A regulation that prohibits a use of citi2 zens band radio equipment not authorized by the

3 Commission.

4 ‘‘(B) A regulation that prohibits the unauthor5 ized operation of citizens band radio equipment on

6 a frequency between 24 MHz and 35 MHz.

7 ‘‘(2) Possession of a station license issued by the

8 Commission pursuant to section 301 in any radio service

9 for the operation at issue shall preclude action by a State

10 or local government under this subsection.

11 ‘‘(3) The Commission shall provide technical guid12 ance to State and local governments regarding the detec13 tion and determination of violations of the regulations

14 specified in paragraph (1).

15 ‘‘(4)(A) In addition to any other remedy authorized

16 by law, a person affected by the decision of a State or

17 local government enforcing a regulation under paragraph

18 (1) may submit to the Commission an appeal of the deci19 sion on the grounds that the State or local government,

20 as the case may be, acted outside the authority provided

21 in this subsection.

22 ‘‘(B) A person shall submit an appeal on a decision

23 of a State or local government to the Commission under

24 this paragraph, if at all, not later than 30 days after the
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1 date on which the decision by the State or local govern2 ment becomes final.

3 ‘‘(C) The Commission shall make a determination on

4 an appeal submitted under subparagraph (B) not later

5 than 180 days after its submittal.

6 ‘‘(D) If the Commission determines under subpara7 graph (C) that a State or local government has acted out8 side its authority in enforcing a regulation, the Commis9 sion shall reverse the decision enforcing the regulation.

10 ‘‘(5) The enforcement of a regulation by a State or

11 local government under paragraph (1) in a particular case

12 shall not preclude the Commission from enforcing the reg13 ulation in that case concurrently.

14 ‘‘(6) Nothing in this subsection shall be construed to

15 diminish or otherwise affect the jurisdiction of the Com16 mission under this section over devices capable of interfer17 ing with radio communications.’’.

18 SEC. 402. MODIFICATION OF EXCEPTION TO PROHIBITION

19 ON INTERCEPTION OF COMMUNICATIONS.

20 (a) MODIFICATION.—Section 2511(2)(d) of title 18,

21 United States Code, is amended by adding at the end the

22 following: ‘‘Notwithstanding the previous sentence, it shall

23 not be unlawful under this chapter for a person not acting

24 under the color of law to intercept a wire, oral, or elec25 tronic communication between a health insurance issuer
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1 or health plan and a subscriber of such issuer or plan,

2 or between a health care provider and a patient, only if

3 all of the parties to the communication have given prior

4 express consent to such interception. For purposes of the

5 preceding sentence, the term ‘health insurance issuer’ has

6 the meaning given that term in section 733 of the Em7 ployee Retirement Income Security Act of 1974 (29

8 U.S.C. 1191b), the term ‘health plan’ means a group

9 health plan, as defined in such section of such Act, an

10 individual or self-insured health plan, the medicare pro11 gram under title XVIII of the Social Security Act (42

12 U.S.C. 1395 et seq.), the medicaid program under title

13 XIX of such Act (42 U.S.C. 1396 et seq.), the State chil14 dren’s health insurance program under title XXI of such

15 Act (42 U.S.C. 1397aa et seq.), and the Civilian Health

16 and Medical Program of the Uniformed Services under

17 chapter 55 of title 10, and the term ‘health care provider’

18 means a physician or other health care professional.’’.

19 (b) RECORDING AND MONITORING OF COMMUNICA20 TIONS WITH HEALTH INSURERS.—

21 (1) COMMUNICATION WITHOUT RECORDING OR

22 MONITORING.—Notwithstanding any other provision

23 of law, a health insurance issuer, health plan, or

24 health care provider that notifies any customer of its

25 intent to record or monitor any communication with
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1 such customer shall provide the customer the option

2 to conduct the communication without being re3 corded or monitored by the health insurance issuer,

4 health plan, or health care provider.

5 (2) DEFINITIONS.—In this subsection:

6 (A) HEALTH CARE PROVIDER.—The term

7 ‘‘health care provider’’ means a physician or

8 other health care professional.

9 (B) HEALTH INSURANCE ISSUER.—The

10 term ‘‘health insurance issuer’’ has the meaning

11 given that term in section 733 of the Employee

12 Retirement Income Security Act of 1974 (29

13 U.S.C. 1191b).

14 (C) HEALTH PLAN.—The term ‘‘health

15 plan’’ means—

16 (i) a group health plan, as defined in

17 section 733 of the Employee Retirement

18 Income Security Act of 1974 (29 U.S.C.

19 1191b);

20 (ii) an individual or self-insured

21 health plan;

22 (iii) the medicare program under title

23 XVIII of the Social Security Act (42

24 U.S.C. 1395 et seq.);
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1 (iv) the medicaid program under title

2 XIX of such Act (42 U.S.C. 1396 et seq.);

3 (v) the State children’s health insur4 ance program under title XXI of such Act

5 (42 U.S.C. 1397aa et seq.); and

6 (vi) the Civilian Health and Medical

7 Program of the Uniformed Services under

8 chapter 55 of title 10, United States Code.

9 SEC. 403. CONSUMER TRUTH IN BILLING DISCLOSURE ACT.

10 (a) FINDINGS.—Congress makes the following find11 ings:

12 (1) Billing practices by telecommunications car13 riers may not reflect accurately the cost or basis of

14 the additional telecommunications services and bene15 fits that consumers receive as a result of the enact16 ment of the Telecommunications Act of 1996 (Public

17 Law 104–104) and other Federal regulatory actions

18 taken since the enactment of that Act.

19 (2) The Telecommunications Act of 1996 was

20 not intended to allow providers of telecommuni21 cations services to misrepresent to customers the

22 costs of providing services or the services provided.

23 (3) Certain providers of telecommunications

24 services have established new, specific charges on
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1 customer bills commonly known as ‘‘line-item

2 charges’’.

3 (4) Certain providers of telecommunications

4 services have described such charges as ‘‘Federal

5 Universal Service Fees’’ or similar fees.

6 (5) Such charges have generated significant

7 confusion among customers regarding the nature of

8 and scope of universal service and of the fees associ9 ated with universal service.

10 (6) The State of New York is considering ac11 tion to protect consumers by requiring telecommuni12 cations carriers to disclose fully in the bills of all

13 classes of customers the fee increases and fee reduc14 tions resulting from the enactment of the Tele15 communications Act of 1996 and other regulatory

16 actions taken since the enactment of that Act.

17 (7) The National Association of Regulatory

18 Utility Commissioners adopted a resolution in Feb19 ruary 1998 supporting action by the Federal Com20 munications Commission and the Federal Trade

21 Commission to protect consumers of telecommuni22 cations services by assuring accurate cost reporting

23 and billing practices by telecommunications carriers

24 nationwide.
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1 (b) REQUIREMENTS.—Any telecommunications car2 rier that includes any change resulting from Federal regu3 latory action shall specify in such bill—

4 (1) the reduction in charges or fees for each

5 class of customers (including customers of residen6 tial basic service, customers of other residential serv7 ices, small business customers, and other business

8 customers) resulting from any regulatory action of

9 the Federal Communications Commission;

10 (2) total monthly charges, usage charges, per11 centage charges, and premiums for each class of

12 customers (including customers of residential basic

13 service, customers of other residential services, small

14 business customers, and other business customers);

15 (3) notify consumers one billing cycle in ad16 vance of any changes in existing charges or imposi17 tion of new charges; and

18 (4) disclose, upon subscription, total monthly

19 charges, usage charges, percentage charges, and pre20 miums for each class of customers (including resi21 dential basic service, customers of other residential

22 service, small business customers, and other business

23 customers).

Passed the Senate May 12, 1998.

Attest: GARY SISCO,

Secretary.