FCC Modernization Act of 1996

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 considered to be made to a section or other provision of the 
Communications 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 prepare 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            (3) to repeal outdated and unnecessary provisions of the 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 personnel to 
                reflect the open-entry and pro-competitive policies 
                adopted by the United States;
                    (B) to propose the automation or privatization of 
                routine agency functions, including the use of advisory 
                committees for coordinating frequency 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 expenses for 
                management and overhead; and
                    (E) to prepare the agency for rapid response 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 succeeding 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, privatization, 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 subsection to the President and to 
        the Committee on Commerce of the House of Representatives and 
        the Committee on Commerce, Science, and Transportation 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, delegate 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 enforced in the same manner, as orders, decisions, reports, 
        or other actions of the Commission.
            ``(2) Review of actions.--Any order, decision, 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, decision, 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 Rulemaking.--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 follows:
    ``(a) Carrier Authority To Discontinue, Reduce, 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 appropriate request being made, 
authorize temporary or emergency 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 established by the interconnection of 
two or more existing channels.'';
            (2) in subsection (b)--
                    (A) by inserting ``Notice.--'' after the subsection 
                designation; and
                    (B) by striking ``in which such line is proposed 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, extension, 
                acquisition, operation, discontinuance'' and inserting 
                ``Any discontinuance''; and
            (4) in subsection (d), by inserting ``Mandatory Extensions 
        of Service.--'' after the subsection designation.
    (b) Expeditious Consideration of Waiver Requests in Connection With 
Acquisitions.--A common 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 application is 
not in the public interest.
    (c) Delayed Effective Date for International Extensions.--The 
amendments made by subsection (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 Commission 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 report to 
        shareholders;
            ``(2) a copy of any prospectus, registration statement, 
        proxy statement, or other document distributed 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 Commission pursuant to section 13 or 
        15(d) of the Securities 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:
            ``(13) Termination of authority to grant pioneer 
        preferences.--The authority of the Commission to provide 
        preferential treatment in licensing procedures (by precluding 
        the filing of mutually exclusive applications) to persons who 
        make significant contributions to the development of a new 
        service or to the development of new technologies that 
        substantially enhance an existing service shall expire on the 
        date of enactment of the FCC Modernization Act of 1996.''.
    (b) Conforming Amendments.--Section 309(j)(6) is amended--
            (1) by inserting ``and'' after the semicolon at the end of 
        subparagraph (F);
            (2) by striking subparagraph (G);
            (3) by striking ``section 8'' in subparagraph (H) and 
        inserting ``sections 8 and 9''; and
            (4) by redesignating subparagraph (H) as subparagraph (G).

SEC. 12. USE OF NAVAL STATIONS FOR COMMERCIAL MESSAGES.

    Section 327 (47 U.S.C. 327), relating to use of naval stations for 
commercial messages, is repealed.

SEC. 13. VERY HIGH FREQUENCY STATIONS AND AM RADIO STATIONS.

    Section 331 (47 U.S.C. 331), relating to very high frequency 
stations and AM radio stations, is repealed.

SEC. 14. PROCEEDS OF FACILITIES SITING FEES.

    Section 704(c) of the Telecommunications Act of 1996 (47 U.S.C. 
332(c), note) is amended by inserting before the last sentence the 
following new sentence: ``All proceeds from the fees charged by Federal 
departments and agencies for use of property, rights-of-way, and 
easements shall be deposited in the Treasury in accordance with chapter 
33 of title 31, United States Code. As used in this subsection, the 
term `agency' has the meaning provided in section 551(1) of title 5, 
United States Code, and includes, notwithstanding any other provision 
of law, any independent establishment in the Executive branch.''.

SEC. 15. TRAVEL RESTRICTION.

    For the 2 years following the date of enactment of this Act, the 
Chairman of the Federal Communications Commission shall not be 
permitted to travel more than 50 miles from the District of Columbia 
while on official business.

Summary: FCC Modernization Act of 1996 - Directs the Federal Communications Commission (FCC) to prepare a plan to:  (1) adjust the allocation of FCC personnel to reflect competitive policies adopted by the United States; (2) propose the automation or privatization of routine FCC functions, as well as the termination of unnecessary functions; (3) reduce FCC management and overhead expenses; and (4) prepare the FCC for rapid response to changes in technologies and markets. 
(Sec. 3) Amends the Communications Act of 1934 to authorize the FCC to delegate to advisory coordinating committees its authority to grant licenses and permits for stations in the private mobile communications services. 
(Sec. 4) Authorizes the FCC to require the filing by any carrier of any contract, agreement, or arrangement.  (Currently, every such carrier is required to make such filings.) 
(Sec. 5) Repeals provisions of the Act:  (1) prohibiting any person from holding the position of officer or director of more than one carrier subject to the Act, unless authorized by the FCC; and (2) authorizing the FCC to undertake valuations, and require inventories, of carrier property. 
(Sec. 7) Terminates the FCC's authority to prohibit the construction of a new line, or the extension of a line, of communications service by a carrier without such carrier first obtaining a certificate of permission from the FCC.  Delays the effective date of such termination with respect to the construction, extension, or acquisition of any line for foreign communications. 
Provides that a common carrier's application for a waiver of specified regulations in connection with an acquisition of the lines of another carrier shall be deemed approved six months after submission unless the FCC finds that the application is not in the public interest. 
(Sec. 8) Repeals provisions of the Act:  (1) requiring the FCC to examine common carrier transactions relating to the furnishing of equipment, supplies, and services in order to determine the effect of such transactions on fees charged by such carriers; and (2) authorizing the FCC to inquire into the management of the business of all carriers subject to the Act. 
(Sec. 10) Requires each telecommunications carrier to file annually with the FCC its financial report to shareholders, as well as related documents and information.  (Currently, the FCC is authorized to require certain reports from such carriers.) 
(Sec. 11) Terminates the FCC's authority to provide preferential treatment in licensing procedures to persons who make significant contributions to the development of a new telecommunication service or the development of new technologies that substantially enhance an existing service. 
(Sec. 12) Repeals provisions of the Act relating to:  (1) the use of naval radio stations for broadcasting commercial messages; and (2) FCC allocation of very high frequency stations and AM radio stations. 
(Sec. 14) Provides for deposit into the Treasury of fees charged by Federal departments and agencies for use of property, rights-of-way, and easements. 
(Sec. 15) Prohibits the FCC Chairman, for two years after the enactment of this Act, from travelling more than 50 miles from the District of Columbia while on official business.