S 1312 IS
106th CONGRESS
1st Session
S. 1312
To ensure full and expeditious enforcement of the provisions of the
Communications Act of 1934 that seek to bring about competition in local
telecommunications markets, and for other purposes.
IN THE SENATE OF THE UNITED STATES
July 1, 1999
Mr. HOLLINGS introduced the following bill; which was read twice and referred
to the Committee on Commerce, Science, and Transportation
A BILL
To ensure full and expeditious enforcement of the provisions of the
Communications Act of 1934 that seek to bring about competition in local
telecommunications markets, 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 `Telecommunications Competition Enforcement
Act of 1999'.
SEC. 2. FINDINGS.
(1) The Telecommunications Act of 1996 put in place the proper framework
to achieve competition in local telecommunications markets.
(2) The Telecommunications Act of 1996 required that all incumbent local
exchange carriers open their markets to competition by interconnecting with
and providing network access to new entrants, a process to be overseen by
Federal and State regulators.
(3) To increase the incentives of the Bell operating companies to open
their local networks to competition, the Telecommunications Act of 1996
allows the Bell operating companies to provide interLATA long distance
service in their service region only after opening their local networks to
competition.
(4) While significant progress has been made in opening local
telecommunications markets, 3 years after passage of the Act, not a single
Bell operating company has opened its network to competition as required by
the Telecommunications Act of 1996.
(5) It is apparent that the incumbent local exchange carriers do not
have adequate incentives to cooperate in this process and that regulators
have not exercised their enforcement authority to require compliance.
(6) By improving mandatory penalties on Bell operating companies and
incumbent telephone companies that have not opened their network to
competition, there will be greater assurance that local telecommunications
markets will be opened more expeditiously and, as a result, American
consumers will obtain the full benefits of competition.
SEC. 3. PURPOSE.
The purpose of this Act is to impose penalties on telephone companies that
have not complied with the Telecommunications Act of 1996 in order to ensure
that local telecommunications markets are opened more rapidly to full, robust,
and sustainable competition.
SEC. 4. ENFORCEMENT AUTHORITY.
Title 2 of the Communications Act of 1934 (47 U.S.C. 201 et seq.) is
amended by adding at the end the following new section:
`SEC. 262. ENFORCEMENT AUTHORITY.
`(1) If the Commission finds that a Bell operating company has not fully
implemented the competitive checklist in section 271(c)(2)(B) for all
telecommunications (including voice, video, and data) for at least one-half
of the States in its region by February 8, 2001, as determined by the
Commission under Commission policies adopted as of June 1, 1999, the
Commission shall assess on such company a forfeiture penalty of $100,000 for
each day of the continuing violation until the Commission determines that
the Bell operating company has fully implemented section 271(c)(2)(B).
`(2) If the Commission finds that a Bell operating company has not fully
implemented the competitive checklist in section 271(c)(2)(B) for all
telecommunications (including voice, video, and data) in all States in its
region by February 8, 2003, as determined by the Commission under Commission
policies adopted as of June 1, 1999, the Commission shall order the Bell
operating company to divest itself of its telecommunications network
facilities within 180 days in States in which it has not fully implemented
the requirements of section 271(c)(2)(B). The Bell operating company owning
or controlling those telecommunications network facilities shall provide
neither telecommunications nor information services to subscribers who are
telecommunications carriers in States in which it is in violation of section
271(c)(2)(B) until the Commission finds that effective facilities-based
local competition exists in the relevant market.
`(b) ENSURE MARKETS ARE OPEN TO COMPETITION-
`(1) For an incumbent local exchange carrier (as defined in section
251(h)), other than a Bell operating company, with more than 5 percent of
the access lines in the nation the Commission shall ensure, upon receipt of
a petition from any interested party, that the company's markets are open to
competition by completing an investigation within 120 days to determine
whether such incumbent local exchange carrier has fully complied with
section 251(c) for all telecommunications (including voice, video, and
data).
`(2) In determining compliance with section 251(c), the Commission shall
consult with the relevant State regulators and shall use as a benchmark the
practices and performance of other incumbent local exchange carriers in the
State and region.
`(3)(A) If the Commission finds that such incumbent local exchange
carrier is not in full compliance with section 251(c) for all
telecommunications (including voice, video, and data), the Commission shall
explicitly state the reasons for such carrier not being in full compliance
and allow the carrier 60 days to come into full compliance.
`(B) If such carrier does not come into full compliance at the end of
the 60-day period, the Commission shall--
`(i) assess on the carrier a forfeiture penalty of $50,000 per day of
the continuing violation; and
`(ii) order the carrier to cease and desist in marketing and selling
long distance services to new customers.
Such forfeiture penalty and cease and desist order shall continue until
the Commission finds that the carrier is in compliance with section
251(c).
`(c) POST APPROVAL PROTECTIONS-
`(1) IN GENERAL- If at any time after the approval of an application
consistent with the requirements of section 271, the Commission determines
that a Bell operating company has ceased to meet one or more of the
requirements of section 271(c)(2)(B) for all telecommunications (including
voice, video, and data), the Commission shall, after notice and opportunity
for a hearing assess on the company a forfeiture penalty of $100,000 for
each violation and for each day of the continuing violation.
`(2) PENALTY- If at any time after the approval of an application
consistent with the requirements of section 271, the Commission determines
that a Bell operating company has willfully, knowingly, and repeatedly
ceased to meet one or more of the requirements of section 271(c)(2)(B) for
all telecommunications (including voice, video, and data), the Commission
shall, after notice and opportunity for a hearing order the company to
divest itself of its telecommunications network facilities within 180 days
in States in which it has ceased to meet the requirements of section
271(c)(2)(B).
`(d) AUTHORITY- Notwithstanding any other provision of this Act, the
Commission shall have full authority to order, implement, and enforce the
provisions of this section. In implementing this section, the Commission shall
ensure that it does not alter the policies and standards in effect as of June
1, 1999, for ensuring compliance with section 271 of the Act.
`(e) ADDITIONAL PROVISIONS- The provisions of this section are in addition
to the penalties and forfeitures provided by title 5 of this Act.'.
END