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Billno should always have and extension i.e. h1.ih

To provide a clear and unambiguous structure for the jurisdictional and regulatory treatment for the offering or provision of voice-over-Internet-protocol applications, and for other... (Introduced in Senate)

S 2281 IS

108th CONGRESS

2d Session

S. 2281

To provide a clear and unambiguous structure for the jurisdictional and regulatory treatment for the offering or provision of voice-over-Internet-protocol applications, and for other purposes.

IN THE SENATE OF THE UNITED STATES

April 5, 2004

Mr. SUNUNU introduced the following bill; which was read twice and referred to the Committee on Commerce, Science, and Transportation

A BILL

To provide a clear and unambiguous structure for the jurisdictional and regulatory treatment for the offering or provision of voice-over-Internet-protocol applications, 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.

(a) SHORT TITLE- This Act may be referred to as the `VOIP Regulatory Freedom Act of 2004'.

(b) PURPOSE- The purpose of this Act is to prevent the imposition of harmful obligations or a patchwork of multiple and discriminatory regulations on the providers of applications that utilize the Internet protocol or any successor protocol to offer 2-way or multidirectional voice communications.

SEC. 2. ASSERTION OF FEDERAL JURISDICTION.

(a) IN GENERAL- Notwithstanding any other provision of law, responsibility and authority to regulate the offering or provision of a voice-over-Internet-protocol application is reserved solely to the Federal Government.

(b) PROHIBITION OF STATE REGULATION- No State or political subdivision thereof may enact or enforce any law, rule, regulation, standard, or other provision having the force or effect of law that regulates, or has the effect of regulating, the offering or provision of a VOIP application.

(c) PROHIBITION OF DELEGATION TO STATES- Any responsibility or authority to regulate the offering or provision of a VOIP application that, pursuant to subsection (a), is reserved by the Federal Government may not be delegated, by any Federal agency or officer, to any State or political subdivision thereof.

SEC. 3. PREEMPTION OF BROAD FCC AUTHORITY.

Except as specifically provided in this Act and notwithstanding any other provision of law, the Commission shall not impose any rule or regulation on, or otherwise regulate, the offering or provision of a VOIP application.

SEC. 4. FCC AUTHORITY REGARDING CONNECTED VOIP APPLICATIONS.

(a) INTERPROVIDER COMPENSATION-

(1) EXPLICIT BAN ON ACCESS CHARGES- The offering or provision of a VOIP application shall not be subject to part 69 of the Commission's rules (47 C.F.R. 69) or successor charges.

(2) ALTERNATE MECHANISM- Paragraph (1) shall not be construed to prevent the Commission from establishing a compensation mechanism for providers of VOIP applications based on--

(A) the mutual recovery of costs through reciprocal obligations; or

(B) arrangements that waive mutual recovery (such as bill-and-keep arrangements).

(3) SINGLE REGIME REQUIRED- The Commission may not impose a compensation mechanism based on the mutual recovery of costs through reciprocal obligations, pursuant to paragraph (2)(B), unless or until the Commission has established a single unified regime for the sending and receiving of all data and voice communications.

(4) PRIVATE NEGOTIATIONS- Nothing in paragraph (2) shall be construed to prevent connected VOIP application providers from negotiating acceptable arrangements for mutual recovery of costs for the sending or receiving of voice communications of a connected VOIP application.

(b) UNIVERSAL SERVICE-

(1) COMMISSION AUTHORITY- The Commission shall ensure that all providers of a connected VOIP application contribute, directly or indirectly, to the preservation and advancement of Federal universal service programs based on a flat fee, which could include a collection methodology based on the assignment of telephone numbers to end users.

(2) EXEMPTION- The Commission may exempt from contributing, pursuant to paragraph (1), any use or category of uses of connected VOIP application.

(c) ACCESS TO INFORMATION BY LAW ENFORCEMENT- The Commission shall require a provider of a connected VOIP application to provide access to necessary information to law enforcement agencies not less than that required of information service providers.

(d) IMPLEMENTATION OF RULES- Not later than 180 days after the date of enactment of this Act, the Commission shall take all necessary action to implement this section.

SEC. 5. VOLUNTARY INDUSTRY CONSENSUS PROCESS REGARDING OTHER CONNECTED VOIP OBLIGATIONS.

(a) VOLUNTARY PROCESS- The Commission shall appoint an appropriate representative industry organization or organizations which shall, within 180 days after the date of the enactment of this Act, develop, as applicable, consensus guidelines, protocols, or performance requirements pertaining to the offering or provision of connected VOIP applications for--

(1) providing comparable capabilities to 911 and enhanced 911 services;

(2) improving use by the disabled community;

(3) improving reliability of voice over Internet protocol applications; and

(4) ensuring appropriate security for the application and voice communications.

(b) INFORMATION TO CUSTOMERS- A provider of a connected VOIP application that does not provide for its customers services that are comparable to 911 service and enhanced 911 service shall provide a clear and conspicuous notice of the failure to provide such services to each customer prior to the offering of the application to that customer.

(c) TECHNICAL SUPPORT- The Commission shall provide technical support, as appropriate, to the organization selected pursuant to subsection (a).

SEC. 6. COMMISSION REVIEW.

Beginning in 2005, the Commission shall provide a report to Congress not less than biennially indicating any regulatory obligations that it recommends be enacted on the offering or provision of a VOIP application, including nondiscriminatory treatment for processing or treatment of digital packets.

SEC. 7. NO TAXATION OF VOIP APPLICATIONS.

(a) IN GENERAL- No State or political subdivision shall impose any tax, fee, surcharge, or other charge for the purpose of generating revenues for governmental purposes on the offering or provision of a VOIP application.

(b) EXEMPTION- Subsection (a) shall not apply to a fee imposed for a specific privilege, service, or benefit conferred.

SEC. 8. NO IMPACT ON TRANSMISSION FACILITIES.

Nothing in this Act shall affect the authority of the Commission or any State commission to regulate the transmission facilities used to transmit a voice communication of a VOIP application. This section may not be construed to authorize the Commission or any State to regulate the offering or provision of a VOIP application by regulating such transmission facilities.

SEC. 9. FTC AUTHORITY.

(a) IN GENERAL- Except as provided in subsection (b), nothing in this Act shall be constructed to affect the authority of the Federal Trade Commission to prevent unfair or deceptive acts or practices.

(b) REGULATIONS EXCLUDED- Subsection (a) does not authorize the Federal Trade Commission to issue any regulations to implement this Act.

SEC. 10. DEFINITIONS.

(a) IN GENERAL- For purposes of this Act:

(1) COMMISSION- The term `Commission' means the Federal Communications Commission.

(2) CONNECTED VOIP APPLICATION- The term `connected VOIP application' means a VOIP application that is capable of receiving voice communications from or sending voice communications to the public switched telephone network, or both.

(3) CUSTOMER- The term `customer' includes a consumer of goods or services whether for a fee, in exchange for an explicit benefit, or provided for free.

(4) REGULATE- The term `regulate' includes taking any governmental action that restricts, prohibits, limits, or burdens, or imposes any obstacle, obligation, or duty, or interferes with, an application.

(5) UNIVERSAL SERVICE- The term `universal service' has the meaning given such term by section 254(c) of such Act (47 U.S.C. 254(c)).

(6) VOICE-OVER-INTERNET-PROTOCOL APPLICATION; VOIP APPLICATION-

(A) IN GENERAL- The terms `Voice-over-Internet-protocol application' and `VOIP application' mean the use of software, hardware, or network equipment for real-time 2-way or multidirectional voice communications over the public Internet or a private network utilizing Internet protocol, or any successor protocol, in whole or part, to connect users notwithstanding--

(i) the underlying transmission technology used to transmit the communications;

(ii) whether the packetizing and depacketizing of the communications occurs at the customer premise or network level; or

(iii) the software, hardware, or network equipment used to connect users.

(B) EXCLUSION- The term does not include an application that is used for voice communications that both originate and terminate on the public switched telephone network.

(b) COMMON TERMINOLOGY- Except as otherwise provided in subsection (a), terms used in this Act shall have the meaning provided under section 3 of the Communications Act of 1934.

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