IIB
107TH CONGRESS
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 Representa-
tives of the United States of America in Congress assembled,
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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 inter-
state and international in nature, and should there-
fore not be subject to regulation by the States.
(2) The imposition of regulations by the Fed-
eral Communications Commission and the States
has impeded the rapid delivery of high speed Inter-
net access services and Internet backbone services to
the public, thereby reducing consumer choice and
welfare.
(3) The Telecommunications Act of 1996 rep-
resented 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 oper-
ating company provision of interLATA services,
Congress recognized that certain telecommunications
services have characteristics that render them in-
compatible with the prohibition on Bell operating
company provision of interLATA services, and ex-
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empted such services from the interLATA prohibi-
tion.
(5) High speed data services and Internet back-
bone 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 Telecommuni-
cations 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 lim-
iting 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 serv-
ices;
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(2) by clarifying that the prohibition on Bell op-
erating 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 Communica-
tions Act of 1934 (47 U.S.C. 153) is amended—
(1) by redesignating paragraph (20) as para-
graph (21);
(2) by redesignating paragraphs (21) through
(52) as paragraphs (26) through (57), respectively;
(3) by inserting after paragraph (19) the fol-
lowing new paragraph:
‘‘(20) HIGH SPEED DATA SERVICE.—The term
‘high speed data service’ means any service that con-
sists of or includes the offering of a capability to
transmit, using a packet-switched or successor tech-
nology, information at a rate that is generally not
less than 384 kilobits per second in at least one di-
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rection. Such term does not include special access
service offered through dedicated transport links be-
tween a customer’s premises and an interexchange
carrier’s switch or point of presence.’’;
(4) by inserting after paragraph (21) the fol-
lowing new paragraphs:
‘‘(22) INTERNET.—The term ‘Internet’ means
collectively the myriad of computer and tele-
communications facilities, including equipment and
operating software, which comprise the inter-
connected world-wide network of networks that em-
ploy 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 com-
bines computer processing, information storage, pro-
tocol conversion, and routing with transmission to
enable users to access Internet content and services.
‘‘(24) INTERNET BACKBONE.—The term ‘Inter-
net backbone’ means a network that carries Internet
traffic over high-capacity long-haul transmission fa-
cilities and that is interconnected with other such
networks via private peering relationships.
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‘‘(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), re-
spectively.
(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 Commu-
nications 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
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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 serv-
ices, nor affect the rights of cable franchise authorities
to establish requirements that are otherwise consistent
with this Act.
‘‘(c) CONTINUED ENFORCEMENT OF ESP EXEMP-
TION, UNIVERSAL SERVICE RULES PERMITTED.—Noth-
ing in this section shall affect the ability of the Commis-
sion 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 require-
ments of the MTS/WATS Market Structure Order
(97 FCC 2d 682, 715 (1983)); or
‘‘(2) rules issued pursuant to section 254.
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‘‘(d) ADDITIONAL COMMISSION AUTHORITY PRE-
SERVED.—Notwithstanding subsection (a), such sub-
section 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 infor-
mation, 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.—
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‘‘(A) PRESERVATION OF RULES GUARAN-
TEEING CLEC ACCESS TO INCUMBENT CARRIER
FACILITIES.—Except as provided in subpara-
graph (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 ex-
change carrier to provide high speed data serv-
ices.
‘‘(B) TRANSPORT SERVICES AVAILABLE TO
CLECS.—
‘‘(i) OFFERING REQUIRED.—If an in-
cumbent 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 pro-
tocol.
‘‘(ii) TRANSMISSION
OPTIONS.—Such
service shall enable a requesting carrier to
transmit information over an incumbent
local exchange carrier’s facilities between
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that incumbent local exchange carrier’s
serving central office and (I) a customer’s
premises served by that serving central of-
fice; (II) a remote terminal supplied by the
requesting carrier; or (III) a high fre-
quency portion of the copper subloop ob-
tained by such requesting carrier pursuant
to the provisions of subsection (c)(3).
‘‘(iii) RATES, TERMS, AND
CONDI-
TIONS.—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 DEF-
INITION.—For the purpose of this sub-
paragraph, the term ‘serving central office’
means the centralized location where the
incumbent local exchange carrier has elect-
ed to provide access to the high speed data
service required by this subparagraph.
‘‘(C) SPACE
ADJACENT
TO
AN
INCUM-
BENT’S
REMOTE
TERMINAL.—Subparagraph
(E)(iii) does not relieve an incumbent carrier of
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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 re-
mote terminal.
‘‘(D) CLEC ACCESS TO INCUMBENT CAR-
RIER
RIGHTS-OF-WAY.—Any incumbent local
exchange carrier has the duty to afford access
to its poles, conduits, and rights-of-way in ac-
cordance with subsection (b)(4) for provision of
high speed data service.
‘‘(E) SCOPE.—Notwithstanding any provi-
sion of law, neither the Commission nor any
State shall—
‘‘(i) require an incumbent local ex-
change carrier to provide unbundled access
in accordance with subsection (c)(3) to any
packet switching network element;
‘‘(ii) require an incumbent local ex-
change carrier to provide, for the provision
of high speed data service, access on an
unbundled basis in accordance with sub-
section (c)(3) to any fiber local loop or
fiber feeder subloop; or
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‘‘(iii) require an incumbent local ex-
change carrier to provide for collocation in
accordance with subsection (c)(6) in a re-
mote 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 net-
work element for the provision of high speed
data service, or to provide collocation in accord-
ance 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 modi-
fying 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 reg-
ulation in accordance with the Commission’s
authority under section 706 of the Tele-
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communications 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 Inter-
net access service. This prohibition on discrimi-
natory subsidies shall not be interpreted to au-
thorize 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 sub-
section (c)(4). After such three-year period, such
carrier shall offer such services for resale pursuant
to subsection (b)(1).
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‘‘(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 capabili-
ties of such transmission facility, between a dis-
tribution frame (or its equivalent) in an incum-
bent local exchange carrier central office and
the loop demarcation point at an end-user cus-
tomer 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
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packets, frames, cells, or other data
units based on address or other rout-
ing information contained in the pack-
ets, frames, cells, or other data units,
including the functions that are per-
formed by digital subscriber line ac-
cess multiplexers; or
‘‘(II) any successor to the func-
tions described in clause (i);
‘‘(ii) includes such element on a
stand-alone basis, or as a part of a com-
bination 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 environ-
ment vault, cabinet, or other structure at a re-
mote 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
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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 inter-
connection agreement beyond the expiration date of
the existing current term contained in such agree-
ment on the date of enactment of this section, with-
out 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 Inter-
net service provider.
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‘‘(b) OBLIGATIONS
OF
INCUMBENT
LOCAL
EX-
CHANGE CARRIERS.—Each incumbent local exchange car-
rier 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 abil-
ity 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 ac-
cess service within a period no longer than the pe-
riod 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—
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‘‘(1) INTERNET SERVICE PROVIDER.—The term
‘Internet service provider’ means any provider of
Internet access service.
‘‘(2) INCUMBENT
LOCAL
EXCHANGE
CAR-
RIER.—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 dedi-
cated transport links between a customer’s premises
and the switch or point of presence of a high speed
data service provider, Internet backbone service pro-
vider, or Internet service provider.’’.
SEC. 6. INCIDENTAL INTERLATA PROVISION OF HIGH
SPEED 
DATA 
AND 
INTERNET 
BACKBONE
SERVICES.
(a) 
INCIDENTAL
INTERLATA 
SERVICE
PER-
MITTED.—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 para-
graph (6) and inserting ‘‘; or’’; and
(3) by adding at the end thereof the following
new paragraph:
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‘‘(7) of high speed data service or Internet
backbone service.’’.
(b) PROHIBITION ON PROVISION OF VOICE TELE-
PHONE SERVICES.—Section 271 of such Act is amended
by adding at the end thereof the following new subsection:
‘‘(k) PROHIBITION ON PROVISION OF VOICE TELE-
PHONE SERVICES.—Until the date on which a Bell oper-
ating 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 of-
fering any high speed data service or Internet backbone
service pursuant to the provisions of paragraph (7) of sub-
section (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 para-
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graph (7) of subsection (g), a Bell operating com-
pany shall submit to the Attorney General a state-
ment 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 with-
in the State in which the service will be offered,
if the service is not going to be offered State-
wide.
‘‘(2) ADDITIONAL
CONTENTS
PROHIBITED.—
The Attorney General may not require a statement
under this subsection to contain any additional in-
formation other than that specified in subparagraph
(A), (B), and (C) of paragraph (1).
‘‘(3) CONFIDENTIAL
TREATMENT
OF
STATE-
MENTS.—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.—
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(1) Section 272(a)(2)(B)(i) of such Act is
amended to read as follows:
‘‘(i) incidental interLATA services de-
scribed in paragraphs (1), (2), (3), (5),
(6), and (7) of section 271(g);’’.
(2) Section 272(a)(2)(C) of such Act is re-
pealed.
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 require-
ments 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 ca-
pability in its central offices in each State to which
subsection (a) applies. Such company or affiliate
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shall attain such capability in accordance with the
following schedule:
‘‘(A) Within one year after the date of en-
actment of this section, such company or affil-
iate 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 en-
actment of this section, such company or affil-
iate 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 en-
actment of this section, such company or affil-
iate 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 en-
actment of this section, such company or affil-
iate 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 pur-
poses of paragraph (1), a central office shall be con-
sidered to have attained high speed capability if—
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‘‘(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 per-
mit transmission of high speed data service (in-
cluding 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 subpara-
graphs (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
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‘‘(B) such loop can, with or without condi-
tioning, transmit high speed data services with-
out such transmission on such loop causing sig-
nificant degradation of voice service.
‘‘(c) AVAILABILITY OF REMEDIES.—
‘‘(1) FORFEITURE
PENALTIES.—A Bell oper-
ating 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 wheth-
er 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 con-
sideration the extent to which the requirements of
this section are technically infeasible.
‘‘(2) JURISDICTION.—The Commission shall
have exclusive jurisdiction to enforce the require-
ments of this section, except that any State commis-
sion may file a complaint with the Commission seek-
ing the imposition of penalties as provided in para-
graph (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
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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 de-
ployed to central offices and customer loops, or
is available using different technologies, as com-
pared with the extent of such deployment and
availability prior to such date and in prior re-
ports 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 develop-
ments in overcoming such impediments during
the intervening period between such reports;
and
‘‘(D) recommendations of the Commission,
after consultation with the National Tele-
communications and Information Administra-
tion, for further extending such deployment and
availability and overcoming such impediments.
‘‘(2) DEFINITION
OF
UNDERSERVED
AREA.—
For purposes of paragraph (1), the term ‘under-
served areas’ means areas that—
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‘‘(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 in-
come or the statewide median family
income; and
‘‘(II) in the case of a census tract
located in a nonmetropolitan statis-
tical area, 70 percent of the non-
metropolitan 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
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publish those census tracts meeting the criteria de-
scribed in paragraph (2)(B).’’.
SEC. 8. COMMISSION AUTHORIZED TO PRESCRIBE JUST
AND REASONABLE CHARGES.
The Federal Communications Commission may im-
pose 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 dis-
tinct violation shall be a separate offense, and in the case
of a continuing violation, each day shall be deemed a sepa-
rate offense, except that the amount assessed for any con-
tinuing 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
ANTI-
TRUST LAWS.—Paragraph (1) shall be interpreted to
mean that the antitrust laws are—
‘‘(A) not repealed by,
‘‘(B) not precluded by,
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‘‘(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 sub-
section:
‘‘(b) CEASE AND DESIST ORDERS.— If, after a hear-
ing, 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 re-
quired by this Act, the Commission may order such com-
mon carrier to cease or desist from such action or inac-
tion.’’.
(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 in-
serting ‘‘exceed $1,000,000’’; and
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(B) by striking ‘‘of $1,000,000’’ and in-
serting ‘‘of $10,000,000’’;
(2) in paragraph (2)(C), by striking ‘‘subpara-
graph (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 deter-
mines that such common carrier has willfully violated the
same provision, rule, regulation, that this repeated viola-
tion has caused harm to competition, and that such com-
mon carrier has been assessed a forfeiture penalty under
this subsection for such previous violation, the Commis-
sion 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 pen-
alty shall not exceed $20,000,000.’’; and
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(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 eval-
uation of the impact of the increased remedies avail-
able 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 there-
under. Such evaluation shall include—
(A) an assessment of the number of en-
forcement proceedings commenced before and
after such date of enactment;
(B) an analysis of any changes in the num-
ber, type, seriousness, or repetition of viola-
tions; 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
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Committee on Commerce, Science, and Transpor-
tation of the Senate.
Passed the House of Representatives February 27,
2002.
Attest:
JEFF TRANDAHL,
Clerk.