I
105TH CONGRESS
2D SESSION
H. R. 4801
To ensure the restoration and preservation of State authority over intrastate
telecommunications.
IN THE HOUSE OF REPRESENTATIVES
OCTOBER 10, 1998
Mr. TAUZIN (for himself, Mr. DINGELL, Mr. OXLEY, Mr. BOUCHER, Mr.
ROGAN, Mr. BONIOR, Mr. GOODLATTE, Mr. KLINK, Mr. HASTERT, Mr.
WYNN, and Mr. BURR of North Carolina) introduced the following bill;
which was referred to the Committee on Commerce
A BILL
To ensure the restoration and preservation of State authority
over intrastate telecommunications.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ‘‘InterLATA Commu-
nication Improvements Act of 1998’’.
SEC. 2. STATE INTERSTATE COMMUNICATIONS AUTHORITY.
(a) DIVISION OF AUTHORITY FOR INTERSTATE AND
INTRASTATE SERVICES.—Section 271(b)(1) of the Com-
munications Act of 1934 (47 U.S.C. 271(b)) is amended
by striking ‘‘if the Commission approves’’ and inserting
‘‘if the Commission, with respect to interstate interLATA
services, or the State, with respect to intrastate
interLATA services, approves’’.
(b) ADMINISTRATIVE PROVISIONS.—Section 271(d)
of the Communications Act of 1934 (47 U.S.C. 271(d))
is amended—
(1) in paragraph (1)—
(A) in the heading of paragraph (1), by
striking ‘‘TO COMMISSION’’;
(B) by striking ‘‘apply to the Commission
for authorization’’ and inserting ‘‘apply to the
Commission, 
with 
respect 
to 
interstate
interLATA services, or to the State, with re-
spect to intrastate interLATA services, for au-
thorization’’; and
(C) by striking the last sentence and in-
serting the following: ‘‘With respect to inter-
state interLATA services, the application shall
identify the originating State for which author-
ization is sought.’’;
(2) in the first sentence of paragraph (2)(A), by
inserting ‘‘ with respect to interstate interLATA
services’’ after ‘‘under paragraph (1)’’;
(3) in paragraph (2)(B)—
(A) by inserting ‘‘on an application with
respect to interstate interLATA services’’ after
‘‘determination under this subsection’’; and
(B) by adding at the end the following:
‘‘The Commission shall affirm the evaluation of
the State concerning such compliance, unless
the Commission determines by clear and con-
vincing evidence that the State evaluation was
clearly erroneous in any material respect.’’; and
(4) by striking paragraphs (3) through (6) and
inserting the following:
‘‘(3) DETERMINATION.—
‘‘(A) IN
GENERAL.—Not later than 90
days after receiving an application under para-
graph (1), the Commission, with respect to
interstate interLATA service, and the State,
with respect to intrastate interLATA service,
shall issue a written determination approving or
denying the authorization requested in the ap-
plication. The Commission, with respect to
interstate interLATA service, and a State, with
respect to intrastate interLATA service, shall
approve the authorization requested in an appli-
cation submitted under paragraph (1) if it finds
that—
‘‘(i)(I) with respect to interstate
interLATA service, the Bell operating com-
pany’s compliance with subsection (c) has
been 
verified 
pursuant 
to 
subsection
(d)(2)(B); or
‘‘(II) 
with 
respect 
to 
intrastate
interLATA service, the State has deter-
mined that the company is in compliance
with subsection (c); and
‘‘(ii) the requested authorization is
consistent with the public interest, conven-
ience, and necessity.
‘‘(B) RULE FOR DETERMINING PUBLIC IN-
TEREST.—On or after February 8, 1999, a de-
termination—
‘‘(i) by the Commission, with respect
to interstate interLATA service, that a
Bell operating company is in compliance
with subparagraph (A)(i)(I); or
‘‘(ii) a State, with respect to intra-
state interLATA service, that a Bell oper-
ating company is in compliance with sub-
paragraph (A)(i)(I);
shall be deemed to be in full satisfaction of the
public interest, convenience, and necessity re-
quirements of subparagraph (A)(ii) and section
214 of the Act.
‘‘(C) STATEMENT OF BASIS AND WRITTEN
DETERMINATION.—The Commission, with re-
spect to interstate interLATA service, or a
State, with respect to intrastate interLATA
service, shall state the basis for its approval or
denial of the application. Each such approval or
denial shall include a written determination by
the Commission or State indicating whether the
Bell operating company has complied with each
item of the competitive checklist and whether
such Bell operating company application has
been determined to be in the public interest,
convenience, and necessity.
‘‘(4) SEPARATE AFFILIATE; SAFEGUARDS COM-
PLIANCE.—The Commission, with respect to inter-
state interLATA service, shall not approve the re-
quested authorization unless it determines that such
requested authorization will be carried out in accord-
ance with section 272. In its written determination
approving or denying the requested authorization,
the Commission shall indicate whether it has deter-
mined the Bell operating company to be in compli-
ance with section 272.
‘‘(5) APPROVAL.—If a State fails to approve or
disapprove an application within the 90-day period
specified in paragraph (3), such application shall be
deemed approved.
‘‘(6) JUDICIAL
REVIEW.—Not later than 30
days after an approval pursuant to paragraph (5),
any aggrieved party may bring an action in an ap-
propriate Federal district court. The court shall
enter a judgment either affirming or reversing any
paragraph (5) approval. The court shall affirm such
approval unless such aggrieved party has dem-
onstrated by clear and convincing evidence that such
Bell operating company has not met the require-
ments of subsection (c)(2) with respect to the sub-
ject application.
‘‘(7) 
LIMITATION
ON
COMMISSION
AND
STATE.—Neither the Commission nor any State
may, by rule or otherwise, limit or extend the terms
used in the competitive checklist set forth in sub-
section (c)(2)(B).
‘‘(8) PUBLICATION.—Not later than 10 days
after issuing a determination under paragraph (3)—
‘‘(A) the Commission, with respect to
interstate interLATA service, shall publish in
the Federal Register a brief description of its
determination; and
‘‘(B) the State, with respect to intrastate
interLATA service, shall make public, in a
manner consistent with applicable State law, its
determination accompanied by a brief descrip-
tion of such determination.
‘‘(9) ENFORCEMENT OF CONDITIONS.—
‘‘(A) COMMISSION
AND
STATE
AUTHOR-
ITY.—If, at any time after the approval of an
application under paragraph (3), the Commis-
sion, with respect to interstate interLATA serv-
ice, or a State, with respect to intrastate
interLATA service, determines that a Bell oper-
ating company has ceased to meet any of the
conditions required for such approval, after no-
tice and opportunity for a hearing—
‘‘(i) the Commission or State, as the
case may be, may issue an order to such
company to correct the deficiency;
‘‘(ii)(I) the Commission may impose a
penalty on such company pursuant to title
V;
‘‘(II) the State may impose any pen-
alty permitted by State law; or
‘‘(iii) the Commission or State, as the
case may be, may suspend or revoke such
approval.
‘‘(B) RECEIPT
AND
REVIEW
OF
COM-
PLAINTS.—The Commission with respect to
interstate interLATA service, and the State,
with respect to intrastate interLATA service,
shall establish procedures for the review of com-
plaints concerning the failure by a Bell operat-
ing company to meet conditions required for ap-
proval under paragraph (3). Unless the parties
otherwise agree, the Commission shall act on
each such complaint within 90 days.
SEC. 3. PRESENCE OF COMPETITOR.
(a) SIMPLIFICATION
OF
COMPETITOR
PRESENCE
TEST.—Paragraph (1) of section 271(c) of the Commu-
nications Act of 1934 (47 U.S.C. 271(c)(1)) is amended
to read as follows:
‘‘(1) ACCESS OR STATEMENT.—A Bell operat-
ing company shall be deemed to have met the re-
quirements of this paragraph on and after February
8, 1999. Prior to that date, a Bell operating com-
pany meets the requirements of this paragraph if—
‘‘(A) the Bell operating company is provid-
ing access and interconnection to its network
facilities for the network facilities of one or
more unaffiliated competing providers of tele-
phone exchange service (as defined in section
3(47)(A), but excluding exchange access) to
residential and business subscribers; or
‘‘(B) a statement of the terms and condi-
tions that the company generally offers to pro-
vide such access and interconnection has been
approved or permitted to take effect by the
State commission under section 252(f).’’.
(b) CONFORMING AMENDMENTS.—Section 271(c)(2)
is amended—
(1) by striking the heading of subparagraph (A)
and inserting ‘‘ACCESS OR STATEMENT REQUIRED’’;
and
(2) in subparagraph (A)(i)(I), by striking ‘‘pur-
suant to one or more agreements’’ and inserting
‘‘as’’.
SEC. 4. RESALE.
Section 271(b) of the Communications Act of 1934
(47 U.S.C. 271(b)) is amended by adding at the end the
following:
‘‘(5) RESALE.—On or after February 8, 1999,
a Bell operating company may provide interstate
and intrastate interLATA services originating in any
State through the purchase and resale of tele-
communications services obtained from a person who
is not affiliated with such Bell operating company.’’
SEC. 5. INCIDENTAL INTERLATA SERVICES.
(a) DATA COMMUNICATIONS AND INTERNATIONAL
SERVICES.—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 a semicolon; and
(3) by adding at the end thereof the following:
‘‘(7) of data communication; and
‘‘(8) of any international telecommunications or
information service.’’.
(b) DEFINITION OF DATA SERVICES.—Section 271(i)
of the Communications Act of 1934 is amended by adding
at the end the following:
‘‘(4) DATA COMMUNICATION.—The term ‘data
communication’ means the transmission of writing,
signs, signals, pictures, and sounds of all kinds by
aid of wire, cable, radio, or other like connection be-
tween the points of origin and reception of such
transmission, including the instrumentalities, facili-
ties, apparatus, and services (among other things,
the receipt, forwarding, and delivery of communica-
tions) incidental to such transmission, except for 2-
way voice conversations.’’.
(c) 
CONFORMING
AMENDMENT.—Section
272(a)(2)(B)(i) of the Communications Act of 1934 (47
U.S.C. 272(a)(2)(B)(i)) is amended by striking ‘‘(1), (2),
(3), (5), and (6)’’ and inserting ‘‘(1) through (8)’’.
SEC. 6. REVISION OF COMMISSION REGULATIONS.
The Federal Communications Commission shall re-
vise its regulations to clarify that Internet traffic carried
by local exchange carriers is interstate in nature for pur-
poses of the reciprocal compensation provisions of section
251(b)(5) of the Communications Act of 1934 (47 U.S.C.
251(b)(5)).
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