[House Report 106-926]
[From the U.S. Government Publishing Office]
106th Congress Report
HOUSE OF REPRESENTATIVES
2d Session 106-926
======================================================================
INDEPENDENT TELECOMMUNICATIONS CONSUMER ENHANCEMENT ACT OF 2000
_______
October 3, 2000.--Committed to the Committee of the Whole House on the
State of the Union and ordered to be printed
_______
Mr. Bliley, from the Committee on Commerce, submitted the following
R E P O R T
[To accompany H.R. 3850]
The Committee on Commerce, to whom was referred the bill
(H.R. 3850) to amend the Communications Act of 1934 to promote
deployment of advanced services and foster the development of
competition for the benefit of consumers in all regions of the
Nation by relieving unnecessary burdens on the Nation's two
percent local exchange telecommunications carriers, and for
other purposes, having considered the same, report favorably
thereon with an amendment and recommend that the bill as
amended do pass.
CONTENTS
Page
Amendment........................................................ 1
Purpose and Summary.............................................. 5
Background and Need for Legislation.............................. 5
Hearings......................................................... 6
Committee Consideration.......................................... 6
Committee Votes.................................................. 6
Committee Oversight Findings..................................... 6
Committee on Government Reform Oversight Findings................ 6
New Budget Authority, Entitlement Authority, and Tax Expenditures 7
Committee Cost Estimate.......................................... 7
Congressional Budget Office Estimate............................. 7
Federal Mandates Statement....................................... 7
Advisory Committee Statement..................................... 7
Constitutional Authority Statement............................... 7
Applicability to Legislative Branch.............................. 7
Section-by-Section Analysis of the Legislation................... 8
Changes in Existing Law Made by the Bill, as Reported............ 9
Amendment
The amendment is as follows:
Strike all after the enacting clause and insert the
following:
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 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 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 enactment of this Act. Applications pending with the
Commission on the date of 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 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 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 enactment of this Act.
Purpose and Summary
The purpose of H.R. 3850, the Independent
Telecommunications Consumer Enhancement Act of 2000, is to
deregulate two percent telecommunications carriers so they may
more effectively compete in rural and less densely populated
areas.
Background and Need for Legislation
There is an ongoing debate about whether there is
sufficient competition in the provision of telecommunications
in smaller markets to warrant a reduction in FCC regulation for
carriers with less than two percent of the installed subscriber
lines in the country. The ``two percent carriers'' argue that
the FCC regulations are too burdensome for smaller carriers of
their size and that strong competition make many FCC
regulations no longer necessary.
In February 1998, the Independent Telephone and
Telecommunications Alliance (ITTA), a group of 14 mid-size
incumbent local exchange carriers (ILECs) that each have less
than two percent of the nation's installed subscriber lines,
brought a proceeding before the FCC requesting forbearance from
a number of regulations. In May 1999, the FCC released six
orders which granted ITTA some of its requests and denied
others. H.R. 3850 would legislatively remedy some of the items
denied by the FCC and would, additionally, relieve other
regulatory burdens imposed on two percent carriers.
Supporters of the legislation believe this bill is
necessary to protect two percent ILECs. They argue that FCC
regulations are written primarily for the large regional Bell
operating companies (RBOCs), and consequently, the regulations
have a disproportionate financial and regulatory impact on two
percent carriers. For instance, ITTA contends that the ``cost
allocation manual'' reporting requirements cost the two percent
carriers as much as $4.00 per customer, while it costs the
RBOCs approximately $0.04 per customer. Despite the fact that
two percent carriers do not pose the threat to competition they
did prior to 1996, two percent carriers also believe that FCC
regulations place a greater operation burden on smaller
carriers. As a result, two percent carriers argue that these
regulatory burdens prevent them from being fully competitive in
a very competitive environment.
The FCC, on the other hand, opposed much of H.R. 3850,
arguing that the bill goes too far in its effort to reduce
regulatory burdens on two percent carriers. For in stance, the
bill contains a provision requiring the FCC to take action on
waiver or reconsideration petitions filed by two percent
carriers within 90 days. The FCC argued that it lacks the
resources, particularly in light of other statutory mandates
(such as section 271 proceedings), to meet the obligations set
out in the bill. The FCC also claimed that it is planning to
take steps to address some of the issues raised in the bill
with a notice of proposed rulemaking in fall 2000.
Hearings
The Subcommittee on July 20, 2000 held a hearing on H.R.
3850, the Independent Telecommunications Consumer Protection
Act. The Subcommittee received testimony from: Carol E. Mattey,
Deputy Chief, Common Carrier Bureau, Federal Communications
Commission; Larry F. Darby, Darby Associates, Communications
Consultants; John Sumpter, Vice President of Regulatory
Affairs, Pac-West Telecomm, Inc., on behalf of Association for
Local Telecommunications Services; Jack Mueller, Cincinnati
Telephone Company/BroadWing, on behalf of Independent Telephone
and Telecommunications Alliance; and David Cole, Senior Vice
President of Operations Support, CenturyTel, Inc.
Committee Consideration
On September 14, 2000, the Subcommittee on
Telecommunications, Trade, and Consumer Protection was
discharged from the further consideration of H.R. 3850. The
Full Committee met in open markup session on September 14,
2000, and ordered H.R. 3850 reported to the House, with an
amendment, by a voice vote, a quorum being present.
Committee Votes
Clause 3(b) of rule XIII of the Rules of the House of
Representatives requires the Committee to list the record votes
on the motion to report legislation and amendments thereto.
There were no record votes taken in connection with ordering
H.R. 3850 reported. A motion by Mr. Bliley to order H.R. 3850
reported to the House, with amendment, was agreed to by a voice
vote.
The following amendment was agreed to by a voice vote:
An amendment in the nature of a substitute by Mr.
Tauzin, No. 1, requiring the FCC to evaluate the burden
of any future regulation on two percent
telecommunications carriers, requiring the FCC to
approve a merger between two percent telecommunications
carriers within sixty days, and making other technical
changes.
Committee Oversight Findings
Pursuant to clause 3(c)(1) of rule XIII of the Rules of the
House of Representatives, the Committee held a legislative
hearing and made findings that are reflected in this report.
Committee on Government Reform Oversight Findings
Pursuant to clause 3(c)(4) of rule XIII of the Rules of the
House of Representatives, no oversight findings have been
submitted to the Committee by the Committee on Government
Reform.
New Budget Authority, Entitlement Authority, and Tax Expenditures
In compliance with clause 3(c)(2) of rule XIII of the Rules
of the House of Representatives, the Committee finds that H.R.
3850, the Independent Consumer Enhancement Act, would result in
no new or increased budget authority, entitlement authority, or
tax expenditures or revenues.
Committee Cost Estimate
Pursuant to clause 3(c)(2) of rule XIII of the Rules of the
House of Representatives, the Committee includes the following
estimate of the costs of this legislation:
The Committee estimates that H.R. 3850 would not have a
significant impact on the Federal budget because it would not
significantly expand the regulatory burdens on Federal
agencies. The Federal Communications Commission may realize
some increased rulemaking costs, but the Committee estimates
that these would not exceed $500,000 per year in each of the
next five fiscal years. The bill will not affect direct
spending or receipts; therefore, pay-as-you-go procedures would
not apply.
Congressional Budget Office Estimate
Although requested on September 14, 2000, the cost estimate
provided by the Congressional Budget Office pursuant to section
402 of the Congressional Budget Act of 1974 was not timely
received by the Committee.
Federal Mandates Statement
The estimate of Federal mandates prepared by the Director
of the Congressional Budget Office pursuant to section 423 of
the Unfunded Mandates Reform Act was not timely received by the
Committee. Accordingly, the Committee finds that the
legislation does not contain intergovernment or private sector
mandates as defined by the Unfunded Mandates Reform Act.
Advisory Committee Statement
No advisory committees within the meaning of section 5(b)
of the Federal Advisory Committee Act were created by this
legislation.
Constitutional Authority Statement
Pursuant to clause 3(c)(1) of rule XIII of the Rules of the
House of Representatives, the Committee finds that the
Constitutional authority for this legislation is provided in
Article I, section 8, clause 3, which grants Congress the power
to regulate commerce with foreign nations, among the several
States, and with the Indian tribes.
Applicability to Legislative Branch
The Committee finds that the legislation does not relate to
the terms and conditions of employment or access to public
services or accommodations within the meaning of section
102(b)(3) of the Congressional Accountability Act.
Section-by-Section Analysis of the Legislation
Section 1. Short title
This section establishes the short title of the bill, the
``Independent Telecommunications Consumer Enhancement Act of
2000.''
Section 2. Findings and purpose
This section makes certain Congressional findings and
describes the purposes of the bill.
Section 3. Definition
This section defines the term ``two percent carrier'' as 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.
Section 4. Regulatory relief for two percent carriers
Section 4 of the bill adds a new section 281 that requires
the FCC to separately evaluate the burden that any proposed
regulation would have on two percent carriers. If the FCC fails
to separately evaluate two percent carriers, the Commission is
not permitted to enforce the rule against two percent carriers.
The bill makes it clear that if the proposed regulation does
not apply to two percent carriers, a separate evaluation is not
required. The effective date of this section applies to any
rule adopted on or after the date of enactment of the bill.
New section 282 exempts two percent carriers from filing or
auditing cost allocation manuals and annual Automated Reporting
and Management Information Systems reports. Two percent
carriers that qualify as Class A carriers must annually certify
that they are complying with cost allocation rules. Except for
the provisions contained in section 282, nothing in this bill
is meant to limit the authority of the FCC to request or obtain
access to information currently allowed under the
Communications Act of 1934 (Communications Act; 47 U.S.C.
Sec. 151 et seq.).
New section 283 prevents the FCC from requiring a two
percent carrier to establish a separate affiliate to provide
any common carrier or noncommon carrier service, including
local and interexchange services, commercial mobile radio
service, advanced services (within the meaning of section 706
of the Communications Act), paging, Internet, information
service or other enhanced services.
New section 284 eliminates the ``all or nothing rules''
relating to the NECA common line tariff pool and price can
regulations. This section allows multiple operating companies
of two percent carriers to participate in one or more study
areas for NECA's common line tariff, and elect to be regulated
under the price cap scheme for one or more study areas.
New section 285 allows two percent carriers to introduce
new interstate services by filing a tariff with one day's
notice, without obtaining a waiver, and prevents the FCC from
approving or disapproving the rate structure. Nothing in this
section restricts the authority of the FCC under sections 201
through 205 and 208 of the Communications Act.
New section 286 allows a two percent carrier to deaverage
its interstate switched or special access rates, file a tariff
with one day's notice, or file contract-based tariffs for
intestate switched or special access services upon certifying
that the carrier faces a facilities-based entrant. Upon
certifying that a two percent carrier faces a facilities-based
entrant, the FCC must regulate a two percent carrier as a non-
dominant carrier, and therefore, shall not require the
tariffing of the interstate service offerings. The right to
participate in the NECA common line tariff is preserved in both
instances. The term ``Facilities-based entry'' is defined as
the provision or procurement of local telephone exchange
switching capability, and the provision of local exchange
service to at least one unaffiliated customer.
New section 287 includes a savings provision providing that
nothing in this section is to be construed to diminish the
rights of rural telephone companies under the Communications
Act.
Section 5. Limitation on merger review
This section amends section 310 of the Communications Act
(47 U.S.C. Sec. 310) by adding a deadline for making a public
interest determination. This provision was intended to apply in
instances where a merger between two percent carriers results
in a two percent carrier. The FCC, in making a determination
under section 214 or 310, must make a determination not later
than 60 days after the date an application is filed with the
FCC. If the FCC fails to approve or deny the application within
60 days, the merger application is deemed approved without
conditions. This section is effective with respect to any
application submitted to the FCC on or after the date of
enactment. Merger applications pending at the FCC on the date
of enactment shall be subject to this section as if they had
been filed with the FCC on the date of enactment.
Section 6. Time limits for action on petitions for reconsideration or
waiver
Section 6 amends section 405 of the Communications Act (47
U.S.C. Sec. 405) by requiring the FCC to act on waiver and
reconsideration petitions filed by two percent carriers within
90 days of filing. If no action is taken on a waiver petition
within 90 days, the petition is deemed granted. If no action is
taken on a petition for reconsideration within 90 days, the
Commission's enforcement of any rule the reconsideration of
which was specifically sought shall be stayed with respect to
that party until the Commission issues an order granting or
denying the petition.
Changes in Existing Law Made by the Bill, as Reported
In compliance with clause 3(e) of rule XIII of the Rules of
the House of Representatives, changes in existing law made by
the bill, as reported, are shown as follows (existing law
proposed to be omitted is enclosed in black brackets, new
matter is printed in italic, existing law in which no change is
proposed is shown in roman):
COMMUNICATIONS ACT OF 1934
TITLE I--GENERAL PROVISIONS
* * * * * * *
SEC. 3. DEFINITIONS.
For the purposes of this Act, unless the context otherwise
requires--
(1) * * *
* * * * * * *
(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.
[(51)] (52) United states.--The term ``United
States'' means the several States and Territories, the
District of Columbia, and the possessions of the United
States, but does not include the Canal Zone.
[(52)] (53) Wire communication.--The term ``wire
communication'' or ``communication by wire'' means the
transmission of writing, signs, signals, pictures, and
sounds of all kinds by aid of wire, cable, or other
like connection between the points of origin and
reception of such transmission, including all
instrumentalities, facilities, apparatus, and services
(among other things, the receipt, forwarding, and
delivery of communications) incidental to such
transmission.
* * * * * * *
TITLE II--COMMON CARRIERS
* * * * * * *
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
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 enactment of this section.
TITLE III--PROVISIONS RELATING TO RADIO
PART I--GENERAL PROVISIONS
* * * * * * *
SEC. 310. LIMITATION ON HOLDING AND TRANSFER OF LICENSES.
(a) * * *
* * * * * * *
(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.
* * * * * * *
TITLE IV--PROCEDURAL AND ADMINISTRATIVE PROVISIONS
* * * * * * *
SEC. 405. RECONSIDERATIONS.
(a) * * *
* * * * * * *
(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.
* * * * * * *