‘‘(1) ATTORNEY GENERAL.—The term ‘attorney
general’ means the chief legal officer of a State.
‘‘(2) 
SUBSCRIBER.—The 
term 
‘subscriber’
means the person named on the billing statement or
account, or any other person authorized to make
changes in the providers of telephone exchange serv-
ice or telephone toll service.’’.
(e) REPORT ON CARRIERS EXECUTING UNAUTHOR-
IZED CHANGES OF TELEPHONE SERVICE.—
(1) REPORT.—Not later than October 31,
1998, the Federal Communications Commission
shall submit to Congress a report on unauthorized
changes of subscribers’ selections of providers of
telephone exchange service or telephone toll service.
(2) ELEMENTS.—The report shall include the
following:
(A) A list of the 10 telecommunications
carriers or resellers that, during the 1-year pe-
riod ending on the date of the report, were sub-
ject to the highest number of complaints of hav-
ing executed unauthorized changes of subscrib-
ers from their selected providers of telephone
exchange service or telephone toll service when
compared with the total number of subscribers
served by such carriers or resellers.
(B) The telecommunications carriers or re-
sellers, if any, assessed forfeitures under section
258(e) of the Communications Act of 1934 (as
added by subsection (c)), during that period, in-
cluding the amount of each such forfeiture and
whether the forfeiture was assessed as a result
of a court judgment or an order of the Commis-
sion or was secured pursuant to a consent de-
cree.
SEC. 102. ADDITIONAL ENFORCEMENT AUTHORITY.
Section 504 of the Communications Act of 1934 (47
U.S.C. 504) is amended by adding at the end thereof the
following: ‘‘Notwithstanding the preceding sentence, the
failure of a person to pay a forfeiture imposed for violation
of section 258(a) may be used as a basis for revoking,
denying, or limiting that person’s operating authority
under section 214 or 312.’’.
SEC. 103. OBLIGATIONS OF BILLING AGENTS.
(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 thereof the following:
‘‘SEC. 231. OBLIGATIONS OF TELEPHONE BILLING AGENTS.
‘‘(a) IN GENERAL.—A billing agent, including a tele-
communications carrier or reseller, who issues a bill for
telephone exchange service or telephone toll service to a
subscriber shall—
‘‘(1) state on the bill—
‘‘(A) the name and toll-free telephone
number of any telecommunications carrier or
reseller for the subscriber’s telephone exchange
service and telephone toll service;
‘‘(B) the identity of the presubscribed car-
rier or reseller; and
‘‘(C) the charges associated with each car-
rier’s or reseller’s provision of telecommuni-
cations service during the billing period;
‘‘(2) for services other than those described in
paragraph (1), state on a separate page—
‘‘(A) the name of any company whose
charges are reflected on the subscriber’s bill;
‘‘(B) the services for which the subscriber
is being charged by that company;
‘‘(C) the charges associated with that com-
pany’s provision of service during the billing pe-
riod;
‘‘(D) the toll-free telephone number that
the subscriber may call to dispute that compa-
ny’s charges; and
‘‘(E) that disputes about that company’s
charges will not result in disruption of tele-
phone exchange service or telephone toll service;
and
‘‘(3) show the mailing address of any tele-
communications carrier or reseller or other company
whose charges are reflected on the bill.
‘‘(b) KNOWING INCLUSION OF UNAUTHORIZED OR
IMPROPER CHARGES PROHIBITED.—A billing agent may
not submit charges for telecommunications services or
other services to a subscriber if the billing agent knows,
or should know, that the subscriber did not authorize the
charges or that the charges are otherwise improper.’’.
(b) EFFECTIVE DATE.—The amendment made by
subsection (a) applies to bills to subscribers for tele-
communications services sent to subscribers more than 60
days after the date of enactment of this Act.
SEC. 104. FCC JURISDICTION OVER BILLING SERVICE PRO-
VIDERS.
Part III of title II of the Communications Act of
1934 (47 U.S.C. 271 et seq.) is amended by adding at
the end thereof the following:
‘‘SEC. 277. JURISDICTION OVER BILLING SERVICE PROVID-
ERS.
‘‘The Commission has jurisdiction to assess and re-
cover any penalty imposed under title V of this Act against
an entity not a telecommunications carrier or reseller to
the extent that entity provides billing services for the pro-
vision of telecommunications services, or for services other
than telecommunications services that appear on a sub-
scriber’s telephone bill for telecommunications services,
but the Commission may assess and recover such penalties
only if that entity knowingly or willfully violates the provi-
sions of this Act or any rule or order of the Commission.’’.
SEC. 105. REPORT; STUDY.
(a) IN GENERAL.—The Federal Communications
Commission shall issue a report within 180 days after the
date of enactment of this Act on the telemarketing and
other solicitation practices used by telecommunications
carriers or resellers or their agents or employees for the
purpose of changing the telephone exchange service or
telephone toll service provider of a subscriber.
(b) SPECIFIC ISSUES.—As part of the report required
under subsection (a), the Commission shall include find-
ings on—
(1) the extent to which imposing penalties on
telemarketers would deter unauthorized changes in a
subscriber’s selection of a provider of telephone ex-
change service or telephone toll service;
(2) the need for rules requiring third-party ver-
ification of changes in a subscriber’s selection of
such a provider and independent third party admin-
istration of presubscribed interexchange carrier
changes; and
(3) whether wireless carriers should continue to
be exempt from the requirements imposed by section
258 of the Communications Act of 1934 (47 U.S.C.
258).
(c) RULEMAKING.—If the Commission determines
that particular telemarketing or other solicitation prac-
tices are being used with the intention to mislead, deceive,
or confuse subscribers and that they are likely to mislead,
deceive, or confuse subscribers, then the Commission shall
initiate a rulemaking to prohibit the use of such practices
within 120 days after the completion of its report.
TITLE II—SWITCHLESS
RESELLERS
SEC. 201. REQUIREMENT FOR SURETY BONDS FROM TELE-
COMMUNICATIONS CARRIERS OPERATING AS
SWITCHLESS RESELLERS.
Part I of title II of the Communications Act of 1934
(47 U.S.C. 201 et seq.), as amended by section 103 of
this Act, is amended by adding at the end the following:
‘‘SEC. 232. SURETY BONDS FROM TELECOMMUNICATIONS
CARRIERS OPERATING AS SWITCHLESS RE-
SELLERS.
‘‘(a) REQUIREMENT.—Under such regulations as the
Commission shall prescribe, any telecommunications car-
rier operating or seeking to operate as a switchless reseller
shall furnish to the Commission a surety bond in a form
and an amount determined by the Commission to be satis-
factory for purposes of this section.
‘‘(b) SURETY.—A surety bond furnished pursuant to
this section shall be issued by a surety corporation that
meets the requirements of section 9304 of title 31, United
States Code.
‘‘(c) CLAIMS AGAINST BOND.—A surety bond fur-
nished under this section shall be available to pay the fol-
lowing:
‘‘(1) Any fine or penalty imposed against the
carrier concerned while operating as a switchless re-
seller as a result of a violation of the provisions of
section 258 (relating to unauthorized changes in
subscriber selections to telecommunications carriers).
‘‘(2) Any penalty imposed against the carrier
under this section.
‘‘(3) Any other fine or penalty, including a for-
feiture penalty, imposed against the carrier under
this Act.
‘‘(d) RESIDENT AGENT.—A telecommunications car-
rier operating as a switchless reseller that is not domiciled
in the United States shall designate a resident agent in
the United States for receipt of service of judicial and ad-
ministrative process, including subpoenas.
‘‘(e) PENALTIES.—
‘‘(1) SUSPENSION.—The Commission may sus-
pend the right of any telecommunications carrier to
operate as a switchless reseller—
‘‘(A) for failure to furnish or maintain the
surety bond required by subsection (a);
‘‘(B) for failure to designate an agent as
required by subsection (d); or
‘‘(C) for a violation of section 258 while
operating as a switchless reseller.
‘‘(2) ADDITIONAL PENALTIES.—In addition to
suspension under paragraph (1), any telecommuni-
cations carrier operating as a switchless reseller that
fails to furnish or maintain a surety bond under this
section shall be subject to any forfeiture provided for
under sections 503 and 504.
‘‘(f) 
BILLING
SERVICES
FOR
UNBONDED
SWITCHLESS RESELLERS.—
‘‘(1) PROHIBITION.—No common carrier or bill-
ing agent may provide billing services for any serv-
ices provided by a switchless reseller unless the
switchless reseller—
‘‘(A) has furnished the bond required by
subsection (a); and
‘‘(B) in the case of a switchless reseller not
domiciled in the United States, has designated
an agent under subsection (d).
‘‘(2) PENALTY.—
‘‘(A) PENALTY.—Any common carrier or
billing agent that knowingly and willfully pro-
vides billing services to a switchless reseller in
violation of paragraph (1) shall be liable to the
United States for a civil penalty not to exceed
$50,000.
‘‘(B) APPLICABILITY.—For purposes of
subparagraph (A), the provision of services to
any particular reseller in violation of paragraph
(1) shall constitute a separate violation of that
paragraph.
‘‘(3) COMMISSION AUTHORITY TO ASSESS AND
COLLECT PENALTIES.—The Commission shall have
the authority to assess and collect any penalty pro-
vided for under this subsection upon a finding by the
Commission of a violation of paragraph (1).
‘‘(g) RETURN OF BONDS.—
‘‘(1) REVIEW.—
‘‘(A) IN GENERAL.—The Commission may
from time to time review the activities of a tele-
communications carrier that has furnished a
surety bond under this section for purposes of
determining whether or not to retain the bond
under this section.
‘‘(B) STANDARDS OF REVIEW.—The Com-
mission shall prescribe any standards applicable
to its review of activities under this paragraph.
‘‘(C) FIRST
REVIEW.—The Commission
may not first review the activities of a carrier
under subparagraph (A) before the date that is
3 years after the date on which the carrier fur-
nishes the bond concerned under this section.
‘‘(2) RETURN.—The Commission may return a
surety bond as a result of a review under this sub-
section.
‘‘(h) DEFINITIONS.—In this section:
‘‘(1) BILLING AGENT.—The term ‘billing agent’
means any entity (other than a telecommunications
carrier) that provides billing services for services
provided by a telecommunications carrier, or other
services, if charges for such services appear on the
bill of a subscriber for telecommunications services.
‘‘(2) 
SWITCHLESS
RESELLER.—The 
term
‘switchless reseller’ means a telecommunications car-
rier that resells the switched telecommunications
service of another telecommunications carrier with-
out the use of any switching facilities under its own
ownership or control.
‘‘(i) DETARIFFING AUTHORITY NOT IMPAIRED.—
Nothing in this section is intended to prohibit the Com-
mission from adopting rules providing for the permissive
detariffing of long-distance telephone companies, if the
Commission determines that such permissive detariffing
would otherwise serve the public interest, convenience, and
necessity.’’.