I
104TH CONGRESS
2D SESSION
H. R. 3957
To amend the Communications Act of 1934 to require the Federal Commu-
nications Commission to streamline its management, to eliminate unnec-
essarily burdensome regulatory provisions, and for other purposes.
IN THE HOUSE OF REPRESENTATIVES
AUGUST 2, 1996
Mr. FIELDS of Texas (for himself and Mr. DINGELL) introduced the following
bill; which was referred to the Committee on Commerce
A BILL
To amend the Communications Act of 1934 to require the
Federal Communications Commission to streamline its
management, to eliminate unnecessarily burdensome reg-
ulatory provisions, and for other purposes.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
SECTION 1. SHORT TITLE; REFERENCES.
(a) SHORT TITLE.—This Act may be cited as the
‘‘FCC Modernization Act of 1996’’.
(b) REFERENCES.—Except as otherwise expressly
provided, whenever in this Act an amendment or repeal
is expressed in terms of an amendment to, or repeal of,
a section or other provision, the reference shall be consid-
ered to be made to a section or other provision of the Com-
munications Act of 1934 (47 U.S.C. 151 et seq.).
SEC. 2. PURPOSES; PLAN FOR AGENCY MODERNIZATION.
(a) PURPOSES.—The purposes of this Act are—
(1) to require the Federal Communications
Commission to streamline its management and pre-
pare an agency plan for accomplishing its mission
with reduced resources;
(2) to reduce regulatory burdens and agency
functions as competition renders those burdens and
functions unnecessary; and
(3) to repeal outdated and unnecessary provi-
sions of the Communications Act of 1934.
(b) PLAN FOR AGENCY MODERNIZATION.—
(1) PLAN REQUIRED.—Within 6 months after
the date of enactment of this Act, the Commission
shall prepare a plan—
(A) to adjust the allocation of agency per-
sonnel to reflect the open-entry and pro-com-
petitive policies adopted by the United States;
(B) to propose the automation or privatiza-
tion of routine agency functions, including the
use of advisory committees for coordinating fre-
quency assignments and automating frequency
assignment databases;
(C) to propose the termination of agency
functions that are no longer necessary to the
protection of the public interest;
(D) to reduce the levels of agency’s ex-
penses for management and overhead; and
(E) to prepare the agency for rapid re-
sponse to changes in technologies and markets.
(2) CONTENTS REQUIRED.—The plan required
by this subsection shall include—
(A) detailed projections of agency financial
and personnel requirements over the 5 succeed-
ing fiscal years;
(B) the savings expected from automating
and privatizing routine agency functions and
from terminating unnecessary agency functions,
and deadlines by which such automation, pri-
vatization, and termination will be attained;
(C) the appropriate level of funding for
agency management and overhead expenses;
and
(D) any additional authority or statutory
changes required to achieve the plan or carry
out the purposes of this section.
(3) SUBMISSION
OF
PLAN.—The Commission
shall submit a copy of the plan required by this sub-
section to the President and to the Committee on
Commerce of the House of Representatives and the
Committee on Commerce, Science, and Transpor-
tation of the Senate.
SEC. 3. AUTHORITY TO DELEGATE.
Section 5 (47 U.S.C. 155) is amended by adding at
the end the following new subsection:
‘‘(f) DELEGATION
TO
ADVISORY
COORDINATING
COMMITTEES.—
‘‘(1) IN
GENERAL.—When necessary to the
prompt and orderly conduct of its business, the
Commission may, by published rule or order, dele-
gate its authority to grant licenses and permits (and
modifications and renewals thereof) for stations in
the private mobile services to advisory coordinating
committees qualified pursuant to section 332(b).
Any order, decision, report, or action made or taken
pursuant to any such delegation, unless reviewed as
provided in paragraph (2), shall have the same force
and effect, and shall be made, evidenced, and en-
forced in the same manner, as orders, decisions, re-
ports, or other actions of the Commission.
‘‘(2) REVIEW OF ACTIONS.—Any order, deci-
sion, report, or action described in paragraph (1) of
this subsection shall be subject to review in the same
manner as is provided by paragraphs (4) through
(7) of subsection (c) with respect to an order, deci-
sion, report, or action made or taken pursuant to
paragraph (1) of such subsection.’’.
SEC. 4. CONTRACT FILINGS.
(a) AMENDMENT.—Section 211 (47 U.S.C. 211) is
amended to read as follows:
‘‘SEC. 211. AUTHORITY TO REQUIRE CONTRACTS TO BE
FILED.
‘‘The Commission may, by rule, require the filing by
any carrier subject to this Act of any contract, agreement,
or arrangement.’’.
(b) DELAYED EFFECTIVE DATE TO PERMIT RULE-
MAKING.—The amendment made by subsection (a) shall
be effective 6 months after the date of enactment of this
Act.
SEC. 5. INTERLOCKING DIRECTORATES.
Section 212 (47 U.S.C. 212), relating to interlocking
directorates, is repealed.
SEC. 6. VALUATION OF CARRIER PROPERTY.
Section 213 (47 U.S.C. 213), relating to valuation
of carrier property, is amended—
(1) by striking subsections (a) through (e);
(2) in subsection (f), by striking ‘‘such carrier’’
and inserting ‘‘any carrier subject to this Act’’; and
(3) by redesignating subsections (f) and (g) as
subsections (a) and (b), respectively.
SEC. 7. ELIMINATION OF COMMISSION AUTHORITY OVER
NEW LINES; CONTROL OF ABANDONMENT TO
PROTECT UNIVERSAL SERVICE.
(a) AMENDMENTS.—Section 214 (47 U.S.C. 214) is
amended—
(1) by amending subsection (a) to read as fol-
lows:
‘‘(a) CARRIER AUTHORITY TO DISCONTINUE, RE-
DUCE, OR IMPAIR SERVICE.—No carrier shall discontinue,
reduce, or impair service to a community, or part of a
community, unless and until there shall first have been
obtained from the Commission a certificate that the public
convenience and necessity will not be adversely affected
thereby; except that the Commission may, upon appro-
priate request being made, authorize temporary or emer-
gency discontinuance, reduction, or impairment of service,
or partial discontinuance, reduction, or impairment of
service, without regard to the provisions of this section.
As used in this section the term ‘line’ means any channel
of communication established by the use of appropriate
equipment, other than a channel of communication estab-
lished by the interconnection of two or more existing chan-
nels.’’;
(2) in subsection (b)—
(A) by inserting ‘‘NOTICE.—’’ after the
subsection designation; and
(B) by striking ‘‘in which such line is pro-
posed to be constructed, extended, acquired, or
operated, or’’;
(3) in subsection (c)—
(A) by inserting ‘‘ISSUANCE AND EFFECT
OF
CERTIFICATE.—’’ after the subsection
designation;
(B) by striking ‘‘or extension thereof’’;
(C) by striking ‘‘construction, extension,
acquisition, operation, or’’; and
(D) by striking ‘‘Any construction, exten-
sion, acquisition, operation, discontinuance’’
and inserting ‘‘Any discontinuance’’; and
(4) in subsection (d), by inserting ‘‘MANDA-
TORY EXTENSIONS OF SERVICE.—’’ after the sub-
section designation.
(b) EXPEDITIOUS CONSIDERATION OF WAIVER RE-
QUESTS IN CONNECTION WITH ACQUISITIONS.—A com-
mon carrier’s application for a waiver of part 36, 61, or
69 of the Commission’s rules (47 C.F.R. parts 36, 61,
and 69) in connection with an acquisition of the lines of
another common carrier shall be deemed approved 6
months after the date on which the application is filed
with the Commission unless the Commission, prior to the
expiration of such 6-month period, finds that the applica-
tion is not in the public interest.
(c) DELAYED
EFFECTIVE
DATE
FOR
INTER-
NATIONAL EXTENSIONS.—The amendments made by sub-
section (a) of this section are effective upon enactment,
except that such amendments shall not apply with respect
to the construction, extension, or acquisition of any line
for foreign communication until such date as the Commis-
sion prescribes by rule consistent with the public interest.
SEC. 8. TRANSACTIONS RELATING TO SERVICES AND
EQUIPMENT.
Section 215 (47 U.S.C. 215), relating to transactions
relating to services and equipment, is repealed.
SEC. 9. INQUIRIES INTO MANAGEMENT.
Section 218 (47 U.S.C. 218), relating to inquiries
into management, is amended—
(1) by amending the section designation and
heading of such section to read as follows:
‘‘SEC. 218. AUTHORITY TO OBTAIN INFORMATION.’’;
(2) by striking the first sentence; and
(3) by striking ‘‘such carriers’’ and inserting
‘‘carriers subject to this Act’’.
SEC. 10. ANNUAL AND OTHER REPORTS.
Section 219 (47 U.S.C. 219) is amended to read as
follows:
‘‘SEC. 
219. 
FILING 
OF 
FINANCIAL 
STATEMENTS 
AND
ANNUAL REPORTS.
‘‘Each telecommunications carrier shall file with the
Commission—
‘‘(1) a copy of any annual or other periodic re-
port to shareholders;
‘‘(2) a copy of any prospectus, registration
statement, proxy statement, or other document dis-
tributed in connection with an offering of securities
or the solicitation of shareholder votes; and
‘‘(3) a copy of such other supplementary and
periodic information, documents, and reports as may
be required by the Securities and Exchange Commis-
sion pursuant to section 13 or 15(d) of the Securi-
ties Exchange Act of 1934.’’.
SEC. 11. PIONEER PREFERENCES.
(a) TERMINATION OF AUTHORITY.—Paragraph (13)
of section 309(j) (47 U.S.C. 309(j)) is amended to read
as follows: