```

[Congressional Bills 107th Congress]
[From the U.S. Government Publishing Office]
[H.R. 1542 Referred in Senate (RFS)]

  2d Session
                                H. R. 1542

_______________________________________________________________________

                   IN THE SENATE OF THE UNITED STATES

                           February 28, 2002

    Received; read twice and referred to the Committee on Commerce, 
                      Science, and Transportation

_______________________________________________________________________

                                 AN ACT

 
To deregulate the Internet and high speed data services, and for other 
                               purposes.

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

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Internet Freedom and Broadband 
Deployment Act of 2001''.

 SEC. 2. FINDINGS AND PURPOSE.

    (a) Findings.--Congress finds the following:
            (1) Internet access services are inherently interstate and 
        international in nature, and should therefore not be subject to 
        regulation by the States.
            (2) The imposition of regulations by the Federal 
        Communications Commission and the States has impeded the rapid 
        delivery of high speed Internet access services and Internet 
        backbone services to the public, thereby reducing consumer 
        choice and welfare.
            (3) The Telecommunications Act of 1996 represented a 
        careful balance between the need to open up local 
        telecommunications markets to competition and the need to 
        increase competition in the provision of interLATA voice 
        telecommunications services.
            (4) In enacting the prohibition on Bell operating company 
        provision of interLATA services, Congress recognized that 
        certain telecommunications services have characteristics that 
        render them incompatible with the prohibition on Bell operating 
        company provision of interLATA services, and exempted such 
        services from the interLATA prohibition.
            (5) High speed data services and Internet backbone services 
        constitute unique markets that are likewise incompatible with 
        the prohibition on Bell operating company provision of 
        interLATA services.
            (6) Since the enactment of the Telecommunications Act of 
        1996, the Federal Communications Commission has construed the 
        prohibition on Bell operating company provision of interLATA 
        services in a manner that has impeded the development of 
        advanced telecommunications services, thereby limiting consumer 
        choice and welfare.
            (7) Internet users should have choice among competing 
        Internet service providers.
            (8) Internet service providers should have the right to 
        interconnect with high speed data networks in order to provide 
        service to Internet users.
    (b) Purposes.--It is therefore the purpose of this Act to provide 
market incentives for the rapid delivery of advanced telecommunications 
services--
            (1) by deregulating high speed data services, Internet 
        backbone services, and Internet access services;
            (2) by clarifying that the prohibition on Bell operating 
        company provision of interLATA services does not extend to the 
        provision of high speed data services and Internet backbone 
        services;
            (3) by ensuring that consumers can choose among competing 
        Internet service providers; and
            (4) by ensuring that Internet service providers can 
        interconnect with competitive high speed data networks in order 
        to provide Internet access service to the public.

 SEC. 3. DEFINITIONS

    (a) Amendments.--Section 3 of the Communications Act of 1934 (47 
U.S.C. 153) is amended--
            (1) by redesignating paragraph (20) as paragraph (21);
            (2) by redesignating paragraphs (21) through (52) as 
        paragraphs (26) through (57), respectively;
            (3) by inserting after paragraph (19) the following new 
        paragraph:
            ``(20) High speed data service.--The term `high speed data 
        service' means any service that consists of or includes the 
        offering of a capability to transmit, using a packet-switched 
        or successor technology, information at a rate that is 
        generally not less than 384 kilobits per second in at least one 
        direction. Such term does not include special access service 
        offered through dedicated transport links between a customer's 
        premises and an interexchange carrier's switch or point of 
        presence.'';
            (4) by inserting after paragraph (21) the following new 
        paragraphs:
            ``(22) Internet.--The term `Internet' means collectively 
        the myriad of computer and telecommunications facilities, 
        including equipment and operating software, which comprise the 
        interconnected world-wide network of networks that employ the 
        Transmission Control Protocol/Internet Protocol, or any 
        predecessor or successor protocols to such protocol, to 
        communicate information of all kinds by wire or radio.
            ``(23) Internet access service.--The term `Internet access 
        service' means a service that combines computer processing, 
        information storage, protocol conversion, and routing with 
        transmission to enable users to access Internet content and 
        services.
            ``(24) Internet backbone.--The term `Internet backbone' 
        means a network that carries Internet traffic over high-
        capacity long-haul transmission facilities and that is 
        interconnected with other such networks via private peering 
        relationships.
            ``(25) Internet backbone service.--The term `Internet 
        backbone service' means any interLATA service that consists of 
        or includes the transmission by means of an Internet backbone 
        of any packets, and shall include related local 
        connectivity.''.
    (b) Conforming Amendments.--
            (1) Section 230(f) of the Communications Act of 1934 (47 
        U.S.C. 230(f)) is amended--
                    (A) by striking paragraph (1); and
                    (B) by redesignating paragraphs (2) through (4) as 
                paragraphs (1) through (3), respectively.
            (2) Section 223(h)(2) of such Act (47 U.S.C. 223(h)(2)) is 
        amended by striking ``230(f)(2)'' and inserting ``230(f)(1)''.

 SEC. 4. LIMITATION ON AUTHORITY TO REGULATE HIGH SPEED DATA SERVICES.

    (a) In General.--Part I of title II of the Communications Act of 
1934 (47 U.S.C. 201 et seq.) is amended by adding at the end the 
following new section:

``SEC. 232. PROVISION OF HIGH SPEED DATA SERVICES.

    ``(a) Freedom From Regulation.--Except to the extent that high 
speed data service, Internet backbone service, and Internet access 
service are expressly referred to in this Act, neither the Commission, 
nor any State, shall have authority to regulate the rates, charges, 
terms, or conditions for, or entry into the provision of, any high 
speed data service, Internet backbone service, or Internet access 
service; nor shall the Commission impose or require the collection of 
any fees, taxes, charges, or tariffs upon such service that is not 
imposed or required on the date of enactment of this section.
    ``(b) Savings Provision.--Nothing in this section shall be 
construed to limit or affect the authority of any State to regulate 
circuit-switched telephone exchange services, nor affect the rights of 
cable franchise authorities to establish requirements that are 
otherwise consistent with this Act.
    ``(c) Continued Enforcement of ESP Exemption, Universal Service 
Rules Permitted.--Nothing in this section shall affect the ability of 
the Commission to retain or modify--
            ``(1) the exemption from interstate access charges for 
        enhanced service providers under Part 69 of the Commission's 
        regulations, and the requirements of the MTS/WATS Market 
        Structure Order (97 FCC 2d 682, 715 (1983)); or
            ``(2) rules issued pursuant to section 254.
    ``(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 e-mail 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.''.
    (b) Conforming Amendment.--Section 251 of the Communications Act of 
1934 (47 U.S.C. 251) is amended by adding at the end thereof the 
following new subsection:
    ``(j) Guaranteed Access to Consumers for CLECs.--
            ``(1) Access rules.--
                    ``(A) Preservation of rules guaranteeing clec 
                access 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 provide 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-of-
                way.--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.
                    ``(G) Authority to reduce elements subject to 
                requirement.--This paragraph shall not prohibit the 
                Commission from modifying the regulation referred to in 
                subparagraph (B) to reduce the number of network 
                elements subject to the unbundling requirement, or to 
                forbear from enforcing any portion of that regulation 
                in accordance with the Commission's authority under 
                section 706 of the Telecommunications Act of 1996, 
                notwithstanding any limitation on that authority in 
                section 10 of this Act.
                    ``(H) Prohibition on discriminatory subsidies.--Any 
                network element used in the provision of high speed 
                data service that is not subject to the requirements of 
                subsection (c) shall not be entitled to any subsidy, 
                including any subsidy pursuant to section 254, that is 
                not provided on a nondiscriminatory basis to all 
                providers of high speed data service and Internet 
                access service. This prohibition on discriminatory 
                subsidies shall not be interpreted to authorize or 
                require the extension of any subsidy to any provider of 
                high speed data service or Internet access service.
            ``(2) Resale.--For a period of three years after the 
        enactment of this subsection, an incumbent local exchange 
        carrier that provides high speed data service shall have a duty 
        to offer for resale any such service at wholesale rates in 
        accordance with subsection (c)(4). After such three-year 
        period, such carrier shall offer such services for resale 
        pursuant to subsection (b)(1).
            ``(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'--
                            ``(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.''.
    (c) Preservation of Existing Interconnection Agreements.--Nothing 
in the amendments made by this section--
            (1) shall be construed to permit or require the abrogation 
        or modification of any interconnection agreement in effect on 
        the date of enactment of this section during the term of such 
        agreement, except that this paragraph shall not apply to any 
        interconnection agreement beyond the expiration date of the 
        existing current term contained in such agreement on the date 
        of enactment of this section, without regard to any extension 
        or renewal of such agreement; or
            (2) affects the implementation of any change of law 
        provision in any such agreement.

SEC. 5. INTERNET CONSUMERS FREEDOM OF CHOICE.

    Part I of title II of the Communications Act of 1934, as amended by 
section 4, is amended by adding at the end the following new section:

``SEC. 233. INTERNET CONSUMERS FREEDOM OF CHOICE.

    ``(a) Purpose.--It is the purpose of this section to ensure that 
Internet users have freedom of choice of Internet service provider.
    ``(b) Obligations of Incumbent Local Exchange Carriers.--Each 
incumbent local exchange carrier has the duty to provide--
            ``(1) Internet users with the ability to subscribe to and 
        have access to any Internet service provider that interconnects 
        with such carrier's high speed data service;
            ``(2) any Internet service provider with the right to 
        acquire the facilities and services necessary to interconnect 
        with such carrier's high speed data service for the provision 
        of Internet access service;
            ``(3) any Internet service provider with the ability to 
        collocate equipment in accordance with the provisions of 
        section 251, to the extent necessary to achieve the objectives 
        of paragraphs (1) and (2) of this subsection; and
            ``(4) any provider of high speed data services, Internet 
        backbone service, or Internet access service with special 
        access for the provision of Internet access service within a 
        period no longer than the period in which such incumbent local 
        exchange carrier provides special access to itself or any 
        affiliate for the provision of such service.
    ``(c) Definitions.--As used in this section--
            ``(1) Internet service provider.--The term `Internet 
        service provider' means any provider of Internet access 
        service.
            ``(2) Incumbent local exchange carrier.--The term 
        `incumbent local exchange carrier' has the same meaning as 
        provided in section 251(h).
            ``(3) Special access service.--The term `special access 
        service' means the provision of dedicated transport links 
        between a customer's premises and the switch or point of 
        presence of a high speed data service provider, Internet 
        backbone service provider, or Internet service provider.''.

SEC. 6. INCIDENTAL INTERLATA PROVISION OF HIGH SPEED DATA AND INTERNET 
              BACKBONE SERVICES.

    (a) Incidental InterLATA Service Permitted.--Section 271(g) of the 
Communications Act of 1934 (47 U.S.C. 271(g)) is amended--
            (1) by striking ``or'' at the end of paragraph (5);
            (2) by striking the period at the end of paragraph (6) and 
        inserting ``; or''; and
            (3) by adding at the end thereof the following new 
        paragraph:
            ``(7) of high speed data service or Internet backbone 
        service.''.
    (b) Prohibition on Provision of Voice Telephone Services.--Section 
271 of such Act is amended by adding at the end thereof the following 
new subsection:
    ``(k) Prohibition on Provision of Voice Telephone Services.--Until 
the date on which a Bell operating company is authorized to offer 
interLATA services originating in an in-region State in accordance with 
the provisions of this section, such Bell operating company offering 
any high speed data service or Internet backbone service pursuant to 
the provisions of paragraph (7) of subsection (g) may not, in such in-
region State provide interLATA voice telecommunications service, 
regardless of whether there is a charge for such service, by means of 
the high speed data service or Internet backbone service provided by 
such company.''.
    (c) Notice to Attorney General.--Section 271 of such Act is further 
amended by adding at the end the following new subsection:
    ``(l) Notice to Attorney General.--
            ``(1) Statement required.--Not less than 30 days before 
        commencing to offer any interLATA high speed data service or 
        Internet backbone service originating in an in-region State 
        pursuant to paragraph (7) of subsection (g), a Bell operating 
        company shall submit to the Attorney General a statement that--
                    ``(A) expresses the intention to commence providing 
                such service in such State;
                    ``(B) provides a description of the service to be 
                offered; and
                    ``(C) identifies the geographic region within the 
                State in which the service will be offered, if the 
                service is not going to be offered Statewide.
            ``(2) Additional contents prohibited.--The Attorney General 
        may not require a statement under this subsection to contain 
        any additional information other than that specified in 
        subparagraph (A), (B), and (C) of paragraph (1).
            ``(3) Confidential treatment of statements.--A statement 
        submitted to the Attorney General under this subsection shall 
        be exempt from disclosure under section 552 of title 5, United 
        States Code, and no such statement may be made public, except 
        as may be relevant to any administrative or judicial action or 
        proceeding.''.
    (d) Conforming Amendments.--
            (1) Section 272(a)(2)(B)(i) of such Act is amended to read 
        as follows:
                            ``(i) incidental interLATA services 
                        described in paragraphs (1), (2), (3), (5), 
                        (6), and (7) of section 271(g);''.
            (2) Section 272(a)(2)(C) of such Act is repealed.

SEC. 7. DEPLOYMENT OF BROADBAND SERVICES.

    Part III of title II of the Communications Act of 1934 is amended 
by inserting after section 276 (47 U.S.C. 276) the following new 
section:

``SEC. 277. DEPLOYMENT OF BROADBAND SERVICES.

    ``(a) Deployment Required.--Each Bell operating company and its 
affiliates shall deploy high speed data services in each State in which 
such company or affiliate is an incumbent local exchange carrier (as 
such term is defined in section 251(h)) in accordance with the 
requirements of this section.
    ``(b) Deployment Requirements.--
            ``(1) Mileposts for deployment.--A Bell operating company 
        or its affiliate shall deploy high speed data services by 
        attaining high speed data capability in its central offices in 
        each State to which subsection (a) applies. Such company or 
        affiliate shall attain such capability in accordance with the 
        following schedule:
                    ``(A) Within one year after the date of enactment 
                of this section, such company or affiliate shall attain 
                high speed data capability in not less than 20 percent 
                of such central offices in such State.
                    ``(B) Within 2 years after the date of enactment of 
                this section, such company or affiliate shall attain 
                high speed data capability in not less than 40 percent 
                of such central offices in such State.
                    ``(C) Within 3 years after the date of enactment of 
                this section, such company or affiliate shall attain 
                high speed data capability in not less than 70 percent 
                of such central offices in such State.
                    ``(D) Within 5 years after the date of enactment of 
                this section, such company or affiliate shall attain 
                high speed data capability in not less than 100 percent 
                of such central offices in such State.
            ``(2) High speed data capability.--For purposes of 
        paragraph (1), a central office shall be considered to have 
        attained high speed capability if--
                    ``(A)(i) such central office is equipped with high 
                speed data multiplexing capability; and
                    ``(ii) each upgradeable customer loop that 
                originates or terminates in such central office is 
                upgraded promptly upon receipt of a customer request 
                for such upgrading, as necessary to permit transmission 
                of high speed data service (including any conditioning 
                of the loop);
                    ``(B) each customer served by such central office 
                (without regard to the upgradeability or length of the 
                customer's loop) is able to obtain the provision of 
                high speed data service from such Bell operating 
                company or its affiliate by means of an alternative 
                technology that does not involve the use of the 
                customer's loop; or
                    ``(C) each such customer is able to obtain the 
                provision of high speed data service by one or the 
                other of the means described in subparagraphs (A) and 
                (B).
            ``(3) Upgradeable loops.--For purposes of paragraph (2), a 
        customer loop is upgradeable if--
                    ``(A) such loop is less than 15,000 feet in length 
                (from the central office to the customer's premises 
                along the line); and
                    ``(B) such loop can, with or without conditioning, 
                transmit high speed data services without such 
                transmission on such loop causing significant 
                degradation of voice service.
    ``(c) Availability of Remedies.--
            ``(1) Forfeiture penalties.--A Bell operating company or 
        its affiliate that fails to comply with this section shall be 
        subject to the penalties provided in section 503(b)(2). In 
        determining whether to impose a forfeiture penalty, and in 
        determining the amount of any forfeiture penalty under section 
        503(b)(2)(D), the Commission shall take into consideration the 
        extent to which the requirements of this section are 
        technically infeasible.
            ``(2) Jurisdiction.--The Commission shall have exclusive 
        jurisdiction to enforce the requirements of this section, 
        except that any State commission may file a complaint with the 
        Commission seeking the imposition of penalties as provided in 
        paragraph (1).
    ``(d) Annual Report on Deployment.--
            ``(1) Analysis required.--The Commission shall include in 
        each of its annual reports submitted no more than 18 months 
        after the date of enactment of this section an analysis of the 
        deployment of high speed data service to underserved areas. 
        Such report shall include--
                    ``(A) a statistical analysis of the extent to which 
                high speed data service has been deployed to central 
                offices and customer loops, or is available using 
                different technologies, as compared with the extent of 
                such deployment and availability prior to such date and 
                in prior reports under this subsection;
                    ``(B) a breakdown of the delivery of high speed 
                data service by type of technology and class or 
                category of provider;
                    ``(C) an identification of impediments to such 
                deployment and availability, and developments in 
                overcoming such impediments during the intervening 
                period between such reports; and
                    ``(D) recommendations of the Commission, after 
                consultation with the National Telecommunications and 
                Information Administration, for further extending such 
                deployment and availability and overcoming such 
                impediments.
            ``(2) Definition of underserved area.--For purposes of 
        paragraph (1), the term `underserved areas' means areas that--
                    ``(A) are high cost areas that are eligible for 
                services under subpart D of part 54 of the Commission's 
                regulations (47 C.F.R. 54.301 et seq.); or
                    ``(B) are within or comprised of any census tract--
                            ``(i) the poverty level of which is at 
                        least 30 percent (based on the most recent 
                        census data); or
                            ``(ii) the median family income of which 
                        does not exceed--
                                    ``(I) in the case of a census tract 
                                located in a metropolitan statistical 
                                area, 70 percent of the greater of the 
                                metropolitan area median family income 
                                or the statewide median family income; 
                                and
                                    ``(II) in the case of a census 
                                tract located in a nonmetropolitan 
                                statistical area, 70 percent of the 
                                nonmetropolitan statewide median family 
                                income.
            ``(3) Designation of census tracts.--The Commission shall, 
        not later than 90 days after the date of the enactment of this 
        section, designate and publish those census tracts meeting the 
        criteria described in paragraph (2)(B).''.

SEC. 8. COMMISSION AUTHORIZED TO PRESCRIBE JUST AND REASONABLE CHARGES.

    The Federal Communications Commission may impose penalties under 
section 503 of the Communications Act of 1934 not to exceed $1,000,000 
for any violation of provisions contained in, or amended by, section 5, 
6, or 7 (or any combination thereof) of this Act. Each distinct 
violation shall be a separate offense, and in the case of a continuing 
violation, each day shall be deemed a separate offense, except that the 
amount assessed for any continuing violation shall not exceed a total 
of $10,000,000 for any single act or failure to act described in 
section 5, 6, or 7 (or any combination thereof) of this Act.

SEC. 9. CLARIFICATION OF CONTINUING OPERATION OF ANTITRUST LAWS.

    Section 601(b) of the Telecommunications Act of 1996 (Public Law 
104-104; 110 Stat. 143) is amended by adding at the end the following 
new paragraph:
            ``(4) Continuing operation of the antitrust laws.--
        Paragraph (1) shall be interpreted to mean that the antitrust 
        laws are--
                    ``(A) not repealed by,
                    ``(B) not precluded by,
                    ``(C) not diminished by, and
                    ``(D) not incompatible with,
        the Communications Act of 1934, this Act, or any law amended by 
        either such Act.''.

SEC. 10. 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--
                    (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.

            Passed the House of Representatives February 27, 2002.

            Attest:

                                                 JEFF TRANDAHL,

                                                                 Clerk.
```