HR 1685 IH
106th CONGRESS
1st Session
H. R. 1685
To provide for the recognition of electronic signatures for the
conduct of interstate and foreign commerce, to restrict the transmission of
certain electronic mail advertisements, to authorize the Federal Trade
Commission to prescribe rules to protect the privacy of users of commercial
Internet websites, to promote the rapid deployment of broadband Internet
services, and for other purposes.
IN THE HOUSE OF REPRESENTATIVES
May 5, 1999
Mr. BOUCHER (for himself and Mr. GOODLATTE) introduced the following bill;
which was referred to the Committee on Commerce, and in addition to the
Committee on the Judiciary, for a period to be subsequently determined by the
Speaker, in each case for consideration of such provisions as fall within the
jurisdiction of the committee concerned
A BILL
To provide for the recognition of electronic signatures for the
conduct of interstate and foreign commerce, to restrict the transmission of
certain electronic mail advertisements, to authorize the Federal Trade
Commission to prescribe rules to protect the privacy of users of commercial
Internet websites, to promote the rapid deployment of broadband Internet
services, and for other purposes.
Be it enacted by the Senate and House of Representatives of the United
States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the `Internet Growth and Development Act of
1999'.
TITLE I--AUTHORIZATION OF ELECTRONIC SIGNATURES IN
COMMERCE
SEC. 101. DEFINITIONS.
For purposes of this title, the following definitions shall apply:
(1) ELECTRONIC COMMERCE- The term `electronic commerce' means the
transaction or conduct of any business that is in or that affects interstate
or foreign commerce and that is in whole or part transacted or conducted by
electronic means.
(2) ELECTRONIC MEANS- The term `electronic means' includes all forms of
electronic communication mediated by computer, including telephonic
communications, facsimile, electronic mail, electronic data exchanges,
satellite, cable, and fiber optic communications.
(3) ELECTRONIC AUTHENTICATION- The term `electronic authentication'
means any methodology, technology, or technique intended to--
(A) establish the identity of the maker, sender, or originator of a
document or communication in electronic commerce; and
(B) establish the fact that the document or communication has not been
altered.
(4) ELECTRONIC SIGNATURE- The term `electronic signature' means any
electronic symbol or series of symbols, created, or processed by a computer,
intended by the party using it (or authorizing its use) to have the same
legal force and effect as a manual signature.
SEC. 102. VALIDITY OF ELECTRONIC AUTHENTICATION.
(a) VALIDITY OF ELECTRONIC SIGNATURES- All electronic signatures that have
been authenticated through the use of a means of electronic authentication
that complies with subsection (d) shall have standing equal to paper-based,
written signatures, so that--
(1) any rule of law which requires a record to be in writing shall be
deemed satisfied; and
(2) any rule of law which requires a signature shall be deemed
satisfied.
(b) VALIDITY OF ELECTRONIC RECORDS- Electronic records shall not be denied
legal effect, validity, or enforceability solely because such records are in
electronic form.
(c) VALIDITY OF STATE LAWS- Nothing in this section shall be construed to
preempt the law of a State that
enacts legislation governing electronic transactions that is consistent with
subsections (a) and (b).
(d) MEANS OF ELECTRONIC AUTHENTICATION-
(1) IN GENERAL- For purposes of this title, a means of electronic
authentication complies with the requirements of this section if it--
(A) reliably establishes the identity of the maker, sender, or
originator of a document or communication in electronic commerce;
and
(B) reliably establishes the fact that the document or communication
has not been altered.
(2) METHODS OF PROOF- A person may demonstrate compliance with the
requirements of paragraph (1) by demonstrating that a means of electronic
authentication--
(A) uses an identification methodology that is unique to the person
making, sending, originating a document or communication;
(B) the identification methodology shall be capable of verifying the
identity of such person; and
(C) the identification methodology is linked to the data or
communication transmitted in such a manner that if such data or
communication has been altered, the authentication becomes
invalid.
TITLE II--ELECTRONIC MAIL ADVERTISEMENTS
SEC. 201. UNSOLICITED ELECTRONIC MAIL ADVERTISEMENTS.
Title VII of the Communications Act of 1934 is amended by adding at the
end the following section:
`SEC. 715. UNSOLICITED ELECTRONIC MAIL ADVERTISEMENTS.
`(a) COMPLIANCE OF REGISTERED USERS WITH PROVIDER POLICY REQUIRED- No
registered user of an electronic mail service provider shall use or cause to
be used that electronic mail service provider's equipment in violation of that
electronic mail service provider's policy prohibiting or restricting the use
of its service or equipment for the initiation of unsolicited electronic mail
advertisements.
`(b) COMPLIANCE BY SENDERS WITH PROVIDER POLICY REQUIRED- No person or
other entity shall use or cause to be used, by initiating an unsolicited
electronic mail advertisement, an electronic mail service provider's equipment
in violation of that electronic mail service provider's policy prohibiting or
restricting the use of its equipment to deliver unsolicited electronic mail
advertisements to its registered users.
`(c) PROVIDER POLICIES NOT REQUIRED- An electronic mail service provider
shall not be required to create a policy prohibiting or restricting the use of
its equipment for the initiation or delivery of unsolicited electronic mail
advertisements.
`(d) CONTINUED PROTECTION FROM BEING TREATED AS PUBLISHER- Nothing in this
section shall be construed to limit or restrict the rights of an electronic
mail service provider under section 230(c)(1) of this Act, or any decision of
an electronic mail service provider to permit or to restrict access to or use
of its system, or any exercise of its editorial function.
`(1) PRIVATE ACTIONS BY PROVIDERS- In addition to any other remedy
available under law, any electronic mail service provider whose policy on
unsolicited electronic mail advertisements is violated as provided in this
section may bring a civil action to recover the actual monetary loss
suffered by that provider by reason of that violation, or liquidated damages
of $50 for each electronic mail message initiated or delivered in violation
of this section, up to a maximum of $25,000 per day, whichever amount is
greater.
`(2) ATTORNEY FEES- In any action brought pursuant to paragraph (1), the
court may award reasonable attorney's fees to a prevailing party.
`(3) NOTICE OF POLICY REQUIRED- In any action brought pursuant to
paragraph (1), the electronic mail service provider shall be required to
establish as an element of its cause of action that prior to the alleged
violation, the defendant had actual notice of both of the following:
`(A) The electronic mail service provider's policy on unsolicited
electronic mail advertising and
`(B) The fact that the defendant's unsolicited electronic mail
advertisements would use or cause to be used the electronic mail service
provider's equipment.
`(f) DEFINITIONS- As used in this section:
`(1) ELECTRONIC MAIL ADVERTISEMENT- The term `electronic mail
advertisement' means any electronic mail message, the principal purpose of
which is to promote, directly or indirectly, the sale or other commercial
distribution of goods or services to the recipient.
`(2) UNSOLICITED ELECTRONIC MAIL ADVERTISEMENT- The term `unsolicited
electronic mail advertisement' means any electronic mail advertisement that
meets both of the following requirements:
`(A) It is addressed to a recipient with whom the initiator does not
have an existing business or personal relationship.
`(B) It is not sent at the request of or with the express consent of
the recipient.
`(3) ELECTRONIC MAIL SERVICE PROVIDER- The term `electronic mail service
provider' means any person or other entity that provides registered users
the ability to send or receive electronic mail and that is an intermediary
in sending or receiving electronic mail.
`(4) INITIATION- The term `initiation' of an unsolicited electronic mail
advertisement refers to the action by the initial sender of the electronic
mail advertisement. It does not refer to the actions of any intervening
electronic mail service provider that may handle or retransmit the
electronic message.
`(5) REGISTERED USER- The term `registered user' means any person or
other entity that maintains an electronic mail address with an electronic
mail service provider.'.
TITLE III--ONLINE PRIVACY PROTECTION
SEC. 301. ONLINE PRIVACY PROTECTION.
(a) INFORMATION COLLECTION REGULATIONS- Any person operating a commercial
Internet website shall clearly and conspicuously provide notice of its
collection, use, and disclosure policies with regard to personally
identifiable information, including--
(1) the personally identifiable information that the website operator
collects from individuals visiting the website; and
(2) the uses that the website operator makes of the personally
identifiable information, including whether the operator makes the
information available to any third parties.
(b) ENFORCEMENT- Any knowing violation of the requirements under
subsection (a) shall be treated as an unfair or deceptive act or practice
under section 5 of the Federal Trade Commission Act (15 U.S.C. 45).
TITLE IV--BROADBAND DEPLOYMENT
SEC. 401. ACCELERATED DEPLOYMENT OF INTERNET BACKBONE.
(a) INTERLATA INTERNET SERVICES- Paragraph (21) of section 3 of the
Communications Act of 1934 (47 U.S.C. 153(21)), relating to the definition of
interLATA service, is amended by inserting before the period the following: `,
except that such term shall not include services that consist of or include
the transmission of any data or information, including any writing, signs,
signals, pictures, or sounds related to the transmission of such data or
information, by means of the Internet or any other network that employs
Internet Protocol-based or other packet-switched technology'.
(b) VOICE INTERLATA INTERNET SERVICES- Neither a Bell operating company,
nor any affiliate of a Bell operating company, may provide, by means of the
Internet or any other network that employs Internet Protocol-based or other
packet-switched technology, two-way voice-only interLATA telecommunications
services originating in any of its in-region States until such time as the
Federal Communications Commission approves the application of such company for
such State pursuant to section 271(d) of the Communications Act of 1934. The
terms in this subsection shall have the same respective meanings given such
terms in sections 3 and 271 of such Act.
SEC. 402. ACCELERATED DEPLOYMENT OF BROADBAND SERVICES.
Title VII of the Communications Act of 1934 is further amended by adding
at the end thereof the following new section:
`SEC. 716. ACCELERATED DEPLOYMENT OF BROADBAND SERVICES.
`(a) BROADBAND SERVICES PLANS-
`(1) PLAN REQUIRED- Within 180 days after the effective date of this
section, each local exchange carrier shall submit to the State commission in
each State in which such carrier does business a plan to provide broadband
telecommunications service in all local exchange areas in which such carrier
has telephone exchange service customers as soon as such broadband
telecommunications service is economically reasonably and technically
feasible. The plan shall include all terms and conditions, including
pricing, under which the services shall be provided. The test of economic
reasonability and technical feasibility shall be made separately by the
local exchange carrier for each local exchange, and the plan shall be
considered certified 45 days after submission unless the State commission
rejects the plan within such 45 days. Upon rejection of a plan, successive
plans shall be submitted until approval is obtained. The plan shall be
implemented within 180 days of the certification of the plan in each local
exchange in which the provision of the service is both economically
reasonable and technically feasible. Upon certification of its plan, the
carrier shall be obligated by terms of the plan (including any modifications
that it requests that are thereafter certified) but shall otherwise provide
such services free of Federal and State price, rate, rate of return, and
profit regulation. Upon a determination by the State commission that a local
exchange is served by another provider of broadband telecommunications
services, or any broadband Internet access transport provider, or upon a
determination by such State commission that the local exchange carrier makes
broadband telecommunications services available to 70 percent of the access
lines in an exchange, a local exchange carrier shall no longer be obligated
by the terms of any such plan in such local exchange.
`(2) STATE MODIFICATIONS PROHIBITED- Except upon request of the carrier,
the State commission shall have no authority to modify any plan submitted
pursuant to paragraph (1).
`(3) NO COMMISSION AUTHORITY- The Commission shall have no authority
with respect to the terms of any plan and shall have no authority with
respect to the approval or rejection of any such plan.
`(b) SUPERSESSION OF OTHER REQUIREMENTS- An incumbent local exchange
carrier's provision of broadband local telecommunications services shall not
be subject to the requirements of sections 251(c)(3) and 251(c)(4) of the Act
in any State in which that carrier certifies to the State commission that--
`(1) in central offices in which it provides local loops that are
conditioned for broadband services, it provides such loops to other carriers
at least as quickly as it provides them for its own customers;
`(2) in central offices in which it does not currently provide local
loops that are conditioned for broadband services, but in which such service
is economically reasonable and technically feasible, it will provide such
loops within 120 days of a request for such conditioning from another
carrier; and
`(3) conditioned loops are provided upon such prices and other terms and
conditions as the parties shall agree, or in any event of disagreements, as
are determined through commercial arbitration, in which the commercial
arbitrator shall establish the price based upon the cost of the loops and
the costs for
such conditioning that have been incurred by the local exchange carrier plus
a reasonable profit.'.
TITLE V--ANTITRUST AND CRIMINAL PROVISIONS
SEC. 501. PROHIBITION ON ANTICOMPETITIVE BEHAVIOR BY INCUMBENT LOCAL
EXCHANGE CARRIERS.
In any civil action based on a claim arising under section 1, 2, or 3 of
the Sherman Act (15 U.S.C. 1, 2, 3), evidence that an incumbent local exchange
carrier that has market power in the broadband service provider market has
willfully and knowingly failed to provide conditioned unbundled local loops
when economically reasonable and technically feasible under section 716(a) of
the Communications Act of 1934, or restrains unreasonably the ability of a
carrier to compete in its provision of broadband services over a local loop,
shall be sufficient to establish a presumption of a violation of such section
1, 2, or 3 of the Sherman Act.
SEC. 502. PROHIBITION ON ANTICOMPETITIVE CONTRACTS BY BROADBAND ACCESS
TRANSPORT PROVIDERS.
In any civil action based on a claim arising under section 1, 2, or 3 of
the Sherman Act (15 U.S.C. 1, 2, 3), evidence that a broadband access
transport provider that has market power in the broadband service provider
market has offered access to a service provider on terms and conditions, other
than terms justified by demonstrable cost differentials, that are less
favorable than those offered by such operator to itself, to an affiliated
service provider, or to another service provider, or restrains unreasonably
the ability of a service provider from competing in its provision of broadband
services, shall be sufficient to establish a presumption of a violation of
such section.
SEC. 503. PROHIBITION ON ANTICOMPETITIVE OR DISCRIMINATORY BEHAVIOR BY
BROADBAND ACCESS TRANSPORT PROVIDERS.
It shall be unlawful for a broadband access transport provider to engage
in unfair methods of competition or unfair or deceptive acts or practices, the
purpose or effect of which is to discriminate in favor of a service provider
that is affiliated with a broadband access transport provider or to restrain
unreasonably the ability of a service provider that is not affiliated with a
broadband access transport provider from competing in its provision of any of
the services provided by a service provider as set forth in section 505(3).
SEC. 504. PROTECTION FROM FRAUDULENT UNSOLICITED E-MAIL.
Section 1030 of title 18, United States Code, is amended--
(1) in subsection (a)(5)--
(A) by striking `or' at the end of subparagraph (B); and
(B) by inserting after subparagraph (C) the following new
subparagraphs:
`(D) intentionally and without authorization initiates the transmission
of a bulk unsolicited electronic mail message to a protected computer with
knowledge that such message falsifies an Internet domain, header
information, date or time stamp, originating e-mail address or other
identifier; or
`(E) intentionally sells or distributes any computer program
that--
`(i) is designed or produced primarily for the purpose of concealing
the source or routing information of bulk unsolicited electronic mail
messages in a manner prohibited by subparagraph (D) of this
paragraph;
`(ii) has only limited commercially significant purpose or use other
than to conceal such source or routing information; or
`(iii) is marketed by the violator or another person acting in concert
with the violator and with the violator's knowledge for use in concealing
the source or routing information of such messages;';
(2) in subsection (c)(2)(A)--
(A) by inserting `(i)' after `in the case of an offense'; and
(B) by inserting after `an offense punishable under this
subparagraph;' the following: `; or (ii) under subsection (a)(5)(D) or
(a)(5)(E) of this section which results in damage to a protected
computer';
(3) in subsection (c)(2), by adding at the end the following new
subparagraph:
`(D) in the case of a violation of subsection (a)(5)(D) or (E), actual
monetary loss and statutory damages of $15,000 per violation or an amount of
up to $10 per message per violation whichever is greater; and';
(A) by striking `and' at the end of paragraph (8);
(B) by striking the period at the end of paragraph (9); and
(C) by adding at the end the following new paragraphs:
`(10) the term `initiates the transmission' means, in the case of an
electronic mail message, to originate the electronic mail message, and
excludes the actions of any interactive computer service whose facilities or
services are used by another person to transmit, relay, or otherwise handle
such message;
`(11) the term `Internet domain' means a specific computer system
(commonly referred to as a `host') or collection of computer systems
attached to or able to be referenced from the Internet which are assigned a
specific reference point on the Internet (commonly referred to as an
`Internet domain name') and registered with an organization recognized by
the Internet industry as a registrant of Internet domains;
`(12) the term `unsolicited electronic mail message' means any
substantially identical electronic mail message other than electronic mail
initiated by any purpose to others with whom such person has a prior
relationship, including prior business relationship, or electronic mail sent
by a source to recipients where such recipients, or their designees, have at
any time affirmatively requested to receive communications from that source;
and
`(13) the term `Internet' means all computer and telecommunications
facilities, including equipment and operating software, which comprise the
interconnected network of networks that employ the Transmission Control
Protocol/Internet Protocol, or any predecessor or successor protocols to
such protocol, to communicate information of all kinds by wire or
radio.'.
(5) in subsection (g), by inserting `and reasonable attorneys' fees and
other litigation costs reasonably incurred in connection with civil action'
after `injunctive relief or other equitable relief'.
SEC. 505. DEFINITIONS.
For purposes of this title:
(1) BROADBAND- The term `broadband' refers to a transmission capability
in excess of 200 kilobits per second in at least one direction.
(2) BROADBAND ACCESS TRANSPORT PROVIDER- The term `broadband access
transport provider' means one who engages in the broadband transmission of
data between a user and his service provider's point of interconnection with
the broadband access transport provider's facilities. Such term shall also
include a service provider who provides to itself, over facilities owned by
it or under its control, the broadband transport of services between itself
and its users.
(3) SERVICE PROVIDER- The term `service provider' means a person who
provides a service that enables users to access content, information,
electronic mail, or other services. The term may also include access to
proprietary content, information, and other services as part of a package of
services offered to consumers.
(4) INTERNET- The term `Internet' means all computer and
telecommunications facilities, including equipment and operating software,
which comprise the interconnected network of networks that employ the
Transmission Control Protocol/Internet Protocol, or any predecessor or
successor protocols to such protocol, to communicate information of all
kinds by wire or radio.
(5) BROADBAND SERVICE PROVIDER MARKET- The term `broadband service
provider market' includes the provision of broadband services over a single
broadband access transport provider's facilities.
END