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Q: SECTION 1. SHORT TITLE.

This Act may be cited as the ''Independent Telecommunications
Consumer Enhancement Act of 2000''.

SEC. 2. FINDINGS AND PURPOSE.

(a) Findings.--Congress finds the following:
(1) The Telecommunications Act of 1996 was enacted to
foster the rapid deployment of advanced telecommunications and
information technologies and services to all Americans by
promoting competition and reducing regulation in
telecommunications markets nationwide.
(2) The Telecommunications Act of 1996 specifically
recognized the unique abilities and circumstances of local
exchange carriers with fewer than two percent of the Nation's
subscriber lines installed in the aggregate nationwide.
(3) Given the markets two percent carriers typically serve,
such carriers are uniquely positioned to accelerate the
deployment of advanced services and competitive initiatives for
the benefit of consumers in less densely populated regions of
the Nation.
(4) Existing regulations are typically tailored to the
circumstances of larger carriers and therefore often impose
disproportionate burdens on two percent carriers, impeding such
carriers' deployment of advanced telecommunications services
and competitive initiatives to consumers in less densely
populated regions of the Nation.
(5) Reducing regulatory burdens on two percent carriers
will enable such carriers to devote additional resources to the
deployment of advanced services and to competitive initiatives
to benefit consumers in less densely populated regions of the
Nation.
(6) Reducing regulatory burdens on two percent carriers
will increase such carriers' ability to respond to marketplace
conditions, allowing them to accelerate deployment of advanced
services and competitive initiatives to benefit consumers in
less densely populated regions of the Nation.
(b) Purposes.--The purposes of this Act are--
(1) to accelerate the deployment of advanced services and
the development of competition in the telecommunications
industry for the benefit of consumers in all regions of the
Nation, consistent with the Telecommunications Act of 1996, by
reducing regulatory burdens on local exchange carriers with
fewer than two percent of the Nation's subscriber lines
installed in the aggregate nationwide;
(2) to improve such carriers' flexibility to undertake such
initiatives; and
(3) to allow such carriers to redirect resources from
paying the costs of such regulatory burdens to increasing
investment in such initiatives.

SEC. 3. DEFINITION.

Section 3 of the Communications Act of 1934 (47 U.S.C. 153) is
amended--
(1) by redesignating paragraphs (51) and (52) as paragraphs
(52) and (53), respectively; and
(2) by inserting after paragraph (50) the following:
''(51) Two percent carrier.--The term 'two percent carrier'
means an incumbent local exchange carrier within the meaning of
section 251(h) that has fewer than two percent of the Nation's
subscriber lines installed in the aggregate nationwide.''.

SEC. 4. REGULATORY RELIEF FOR TWO PERCENT CARRIERS.

Title II of the Communications Act of 1934 is amended by adding at
the end thereof a new part IV as follows:

''PART IV--PROVISIONS CONCERNING TWO PERCENT CARRIERS

''SEC. 281. REDUCED REGULATORY REQUIREMENTS FOR TWO PERCENT CARRIERS.

''(a) Commission To Take Into Account Differences.--In adopting
rules that apply to incumbent local exchange carriers (within the
meaning of section 251(h)), the Commission shall separately evaluate
the burden that any proposed regulatory, compliance, or reporting
requirements would have on two percent carriers.
''(b) Effect of Reconsideration or Waiver.--If the Commission
adopts a rule that applies to incumbent local exchange carriers and
fails to separately evaluate the burden that any proposed regulatory,
compliance, or reporting requirement would have on two percent
carriers, the Commission shall not enforce the rule against two percent
carriers unless and until the Commission performs such separate
evaluation.
''(c) Additional Review Not Required.--Nothing in this section
shall be construed to require the Commission to conduct a separate
evaluation under subsection (a) if the rules adopted do not apply to
two percent carriers, or such carriers are exempted from such rules.
''(d) Savings Clause.--Nothing in this section shall be construed
to prohibit any size-based differentiation among carriers mandated by
this Act, chapter 6 of title 5, United States Code, the Commission's
rules, or any other provision of law.
''(e) Effective Date.--The provisions of this section shall apply
with respect to any rule adopted on or after the date of the enactment
of this section.

''SEC. 282. LIMITATION OF REPORTING REQUIREMENTS.

''(a) Limitation.--The Commission shall not require a two percent
carrier--
''(1) to file cost allocation manuals or to have such
manuals audited, but a two percent carrier that qualifies as a
class A carrier shall annually certify to the Commission that
the two percent carrier's cost allocation complies with the
rules of the Commission; or
''(2) to file Automated Reporting and Management
Information Systems (ARMIS) reports.
''(b) Preservation of Authority.--Except as provided in subsection
(a), nothing in this Act limits the authority of the Commission to
obtain access to information under sections 211, 213, 215, 218, and 220
with respect to two percent carriers.

''SEC. 283. INTEGRATED OPERATION OF TWO PERCENT CARRIERS.

''The Commission shall not require any two percent carrier to
establish or maintain a separate affiliate to provide any common
carrier or noncommon carrier services, including local and
interexchange services, commercial mobile radio services, advanced
services (within the meaning of section 706 of the Telecommunications
Act of 1996), paging, Internet, information services or other enhanced
services, or other services. The Commission shall not require any two
percent carrier and its affiliates to maintain separate officers,
directors, or other personnel, network facilities, buildings, research
and development departments, books of account, financing, marketing,
provisioning, or other operations.

''SEC. 284. PARTICIPATION IN TARIFF POOLS AND PRICE CAP REGULATION.

''(a) NECA Pool.--The participation or withdrawal from
participation by a two percent carrier of one or more study areas in
the common line tariff administered and filed by the National Exchange
Carrier Association or any successor tariff or administrator shall not
obligate such carrier to participate or withdraw from participation in
such tariff for any other study area.
''(b) Price Cap Regulation.--A two percent carrier may elect to be
regulated by the Commission under price cap rate regulation, or elect
to withdraw from such regulation, for one or more of its study areas at
any time. The Commission shall not require a carrier making an election
under this paragraph with respect to any study area or areas to make
the same election for any other study area.

''SEC. 285. DEPLOYMENT OF NEW TELECOMMUNICATIONS SERVICES BY TWO
PERCENT COMPANIES.

''The Commission shall permit two percent carriers to introduce new
interstate telecommunications services by filing a tariff on one day's
notice showing the charges, classifications, regulations and practices
therefor, without obtaining a waiver, or make any other showing before
the Commission in advance of the tariff filing. The Commission shall
not have authority to approve or disapprove the rate structure for such
services shown in such tariff.

''SEC. 286. ENTRY OF COMPETING CARRIER.

''(a) Pricing Flexibility.--Notwithstanding any other provision of
this Act, any two percent carrier shall be permitted to deaverage its
interstate switched or special access rates, file tariffs on one day's
notice, and file contract-based tariffs for interstate switched or
special access services immediately upon certifying to the Commission
that a telecommunications carrier unaffiliated with such carrier is
engaged in facilities-based entry within such carrier's service area.
''(b) Pricing Deregulation.--Notwithstanding any other provision of
this Act, upon receipt by the Commission of a certification by a two
percent carrier that a local exchange carrier that is not a two percent
carrier is engaged in facilities-based entry within the two percent
carrier's service area, the Commission shall regulate such two percent
carrier as non-dominant, and therefore shall not require the tariffing
of the interstate service offerings of such two percent carrier.
''(c) Participation in Exchange Carrier Association Tariff.--A two
percent carrier that meets the requirements of subsection (a) or (b) of
this section with respect to one or more study areas shall be permitted
to participate in the common line tariff administered and filed by the
National Exchange Carrier Association or any successor tariff or
administrator, by electing to include one or more of its study areas in
such tariff.
''(d) Definitions.--For purposes of this section:
''(1) Facilities-based entry.--The term 'facilities-based
entry' means, within the service area of a two percent
carrier--
''(A) the provision or procurement of local
telephone exchange switching capability; and
''(B) the provision of local exchange service to at
least one unaffiliated customer.
''(2) Contract-based tariff.--The term 'contract-based
tariff' shall mean a tariff based on a service contract entered
into between a two percent carrier and one or more customers of
such carrier. Such tariff shall include--
''(A) the term of the contract, including any
renewal options;
''(B) a brief description of each of the services
provided under the contract;
''(C) minimum volume commitments for each service,
if any;
''(D) the contract price for each service or
services at the volume levels committed to by the
customer or customers;
''(E) a brief description of any volume discounts
built into the contract rate structure; and
''(F) a general description of any other
classifications, practices, and regulations affecting
the contract rate.
''(3) Service area.--The term 'service area' has the same
meaning as in section 214(e)(5).

''SEC. 287. SAVINGS PROVISIONS.

''(a) Commission Authority.--Nothing in this part shall be
construed to restrict the authority of the Commission under sections
201 through 205 and 208.
''(b) Rural Telephone Company Rights.--Nothing in this part shall
be construed to diminish the rights of rural telephone companies
otherwise accorded by this Act, or the rules, policies, procedures,
guidelines, and standards of the Commission as of the date of the
enactment of this section.''.

SEC. 5. LIMITATION ON MERGER REVIEW

(a) Amendment.--Section 310 of the Communications Act of 1934 (47
U.S.C. 310) is amended by adding at the end the following:
''(f) Deadline for Making Public Interest Determination.--
''(1) Time limit.--In connection with any merger between
two percent carriers, or the acquisition, directly or
indirectly, by a two percent carrier or its affiliate of the
securities or assets of another two percent carrier or its
affiliate, the Commission shall make any determination required
by subsection (d) of this section or section 214 not later than
60 days after the date an application with respect to such
merger is submitted to the Commission.
''(2) Approval absent action.--If the Commission does not
approve or deny an application as described in paragraph (1) by
the end of the period specified, the application shall be
deemed approved on the day after the end of such period. Any
such application deemed approved under this subsection shall be
deemed approved without conditions.''.
(b) Effective Date.--The provisions of this section shall apply
with respect to any application that is submitted to the Commission on
or after the date of the enactment of this Act. Applications pending
with the Commission on the date of the enactment of this Act shall be
subject to the requirements of this section as if they had been filed
with the Commission on the date of the enactment of this Act.

SEC. 6. TIME LIMITS FOR ACTION ON PETITIONS FOR RECONSIDERATION OR
WAIVER.

(a) Amendment.--Section 405 of the Communications Act of 1934 (47
U.S.C. 405) is amended by adding to the end the following:
''(c) Expedited Action Required.--
''(1) Time limit.--Within 90 days after receiving from a
two percent carrier a petition for reconsideration filed under
this section or a petition for waiver of a rule, policy, or
other Commission requirement, the Commission shall issue an
order granting or denying such petition. If the Commission
fails to act on a petition for waiver subject to the
requirements of this section within this 90-day period, the
relief sought in such petition shall be deemed granted. If the
Commission fails to act on a petition for reconsideration
subject to the requirements of this section within this 90 day
period, the Commission's enforcement of any rule the
reconsideration of which was specifically sought by the
petitioning party shall be stayed with respect to that party
until the Commission issues an order granting or denying such
petition.
''(2) Finality of action.--Any order issued under paragraph
(1), or any grant of a petition for waiver that is deemed to
occur as a result of the Commission's failure to act under
paragraph (1), shall be a final order and may be appealed.''.
(b) Effective Date.--The provisions of this section shall apply
with respect to any petition for reconsideration or petition for waiver
that is submitted to the Commission on or after the date of the
enactment of this Act. Pending petitions for reconsideration or
petitions for waiver shall be subject to the requirements of this
section as if they had been filed on the date of the enactment of this
Act.

Passed the House of Representatives October 3, 2000.

Attest:

Clerk.
A:
Directs the Federal Communications Commission (FCC), in adopting rules that apply to incumbent local exchange carriers, to separately evaluate the burden that any proposed regulatory, compliance, or reporting requirements would have on two percent carriers. Authorizes a two percent carrier to seek a waiver or reconsideration of an adopted rule which does not separately evaluate such burden upon such carriers.
Prohibits the FCC from requiring a two percent carrier to file cost allocation manuals or Automated Reporting and Management Information systems (but requires a two percent carrier that qualifies as a class A carrier to annually certify to the FCC that such carrier's cost allocation complies with FCC rules).
Prohibits the FCC from requiring any two percent carrier to establish or maintain a separate affiliate to provide any common carrier or noncommon carrier services, or to maintain separate officers, personnel, facilities, books or accounts, or other operations.
States that the participation or withdrawal from participation by a two percent carrier of one or more study areas in the common line tariff administered and filed by the National Exchange Carrier Association (NECA) or any successor tariff or administrator shall not obligate such carrier to participate or withdraw from participation in such tariff for any other study area. Authorizes a two percent carrier to elect to be regulated by the FCC under price cap regulation, or to withdraw from such regulation, for one or more of its study areas at any time.
Directs the FCC to permit two percent carriers to introduce new telecommunications services by filing a tariff on one day's notice, without making any other showing before the FCC in advance of such filing.
Allows any two percent carrier to deaverage its interstate switched or special rates and file contract-based tariffs for interstate switched or special access services immediately upon certifying to the FCC that an unaffiliated carrier has engaged in facilities-based entry within such carrier's service area. Requires the FCC to regulate such two percent carrier as non-dominant, and therefore not subject to tariffing of interstate services, after such certification. Allows such a carrier to participate in the common line tariff administered and filed by the NECA or any successor tariff or administrator by electing to include one or more of its study areas in such tariff.
Requires the FCC to determine: (1) within 60 days after application that the public interest, convenience, and necessity will be served by a merger or acquisition between two percent carriers; and (2) within 90 days a petition by a two percent carrier for reconsideration or waiver of a rule, policy, or other FCC requirement (as authorized under this Act).