Sec. 101 Short title
This title may be cited as the “COVID–19 Price Gouging Prevention Act”.
Division M — Consumer Protection and Telecommunications Provisions
M Consumer Protection and Telecommunications Provisions
I COVID–19 Price Gouging Prevention
Sec. 102 Prevention of price gouging
In general— For the duration of a public health emergency declared pursuant to section 319 of the Public Health Service Act (42 U.S.C. 247d) as a result of confirmed cases of 2019 novel coronavirus (COVID–19), including any renewal thereof, it shall be unlawful for any person to sell or offer for sale a good or service at a price that—
is unconscionably excessive; and
indicates the seller is using the circumstances related to such public health emergency to increase prices unreasonably.
Factors for consideration— In determining whether a person has violated subsection (a), there shall be taken into account, with respect to the price at which such person sold or offered for sale the good or service, factors that include the following:
Whether such price grossly exceeds the average price at which the same or a similar good or service was sold or offered for sale by such person—
during the 90-day period immediately preceding January 31, 2020; or
during the period that is 45 days before or after the date that is one year before the date such good or service is sold or offered for sale under subsection (a).
Whether such price grossly exceeds the average price at which the same or a similar good or service was readily obtainable from other similarly situated competing sellers before January 31, 2020.
Whether such price reasonably reflects additional costs, not within the control of such person, that were paid, incurred, or reasonably anticipated by such person, or reasonably reflects the profitability of forgone sales or additional risks taken by such person, to produce, distribute, obtain, or sell such good or service under the circumstances.
Enforcement—
Enforcement by federal trade commission—
Unfair or deceptive acts or practices— A violation of subsection (a) shall be treated as a violation of a regulation under section 18(a)(1)(B) of the Federal Trade Commission Act (15 U.S.C. 57a(a)(1)(B)) regarding unfair or deceptive acts or practices.
Powers of commission— The Commission shall enforce subsection (a) in the same manner, by the same means, and with the same jurisdiction, powers, and duties as though all applicable terms and provisions of the Federal Trade Commission Act (15 U.S.C. 41 et seq.) were incorporated into and made a part of this section. Any person who violates such subsection shall be subject to the penalties and entitled to the privileges and immunities provided in the Federal Trade Commission Act.
Effect on other laws— Nothing in this section shall be construed in any way to limit the authority of the Commission under any other provision of law.
Enforcement by state attorneys general—
In general— If the chief law enforcement officer of a State, or an official or agency designated by a State, has reason to believe that any person has violated or is violating subsection (a), the attorney general, official, or agency of the State, in addition to any authority it may have to bring an action in State court under its laws, may bring a civil action in any appropriate United States district court or in any other court of competent jurisdiction, including a State court, to—
enjoin further such violation by such person;
enforce compliance with such subsection;
obtain civil penalties; and
obtain damages, restitution, or other compensation on behalf of residents of the State.
Notice and intervention by the FTC— The attorney general of a State shall provide prior written notice of any action under subparagraph (A) to the Commission and provide the Commission with a copy of the complaint in the action, except in any case in which such prior notice is not feasible, in which case the attorney general shall serve such notice immediately upon instituting such action. The Commission shall have the right—
to intervene in the action;
upon so intervening, to be heard on all matters arising therein; and
to file petitions for appeal.
Limitation on state action while federal action is pending— If the Commission has instituted a civil action for violation of this section, no State attorney general, or official or agency of a State, may bring an action under this paragraph during the pendency of that action against any defendant named in the complaint of the Commission for any violation of this section alleged in the complaint.
Relationship with State-law claims— If the attorney general of a State has authority to bring an action under State law directed at acts or practices that also violate this section, the attorney general may assert the State-law claim and a claim under this section in the same civil action.
Savings clause— Nothing in this section shall preempt or otherwise affect any State or local law.
Definitions— In this section:
Commission— The term Commission means the Federal Trade Commission.
Good or service— The term good or service means a good or service offered in commerce, including—
food, beverages, water, ice, a chemical, or a personal hygiene product;
any personal protective equipment for protection from or prevention of contagious diseases, filtering facepiece respirators, medical equipment and supplies (including medical testing supplies), a drug as defined in section 201(g)(1) of the Federal Food, Drug, and Cosmetic Act (21 U.S.C. 321(g)(1)), cleaning supplies, disinfectants, sanitizers; or
any healthcare service, cleaning service, or delivery service.
State— The term State means each of the several States, the District of Columbia, each commonwealth, territory, or possession of the United States, and each federally recognized Indian Tribe.
II E–Rate Support for Wi-Fi Hotspots, Other Equipment, Connected Devices, and Connectivity
Sec. 201 E–Rate support for Wi-Fi hotspots, other equipment, connected devices, and connectivity during emergency periods relating to COVID–19
Regulations required— Not later than 7 days after the date of the enactment of this Act, the Commission shall promulgate regulations providing for the provision, from amounts made available from the Emergency Connectivity Fund established under subsection (j)(1), of support under section 254(h)(1)(B) of the Communications Act of 1934 (47 U.S.C. 254(h)(1)(B)) to an elementary school, secondary school, or library (including a Tribal elementary school, Tribal secondary school, or Tribal library) for the purchase during an emergency period described in subsection (f) (including any portion of such a period occurring before the date of the enactment of this Act) of equipment described in subsection (c), advanced telecommunications and information services, or equipment described in such subsection and advanced telecommunications and information services, for use by—
in the case of a school, students and staff of such school at locations that include locations other than such school; and
in the case of a library, patrons of such library at locations that include locations other than such library.
Tribal issues—
Reservation for Tribal lands— The Commission shall reserve not less than 5 percent of the amounts available to the Commission under subsection (j)(2) to provide support under the regulations required by subsection (a) to schools and libraries that serve persons who are located on Tribal lands.
Eligibility of Tribal libraries— For purposes of determining the eligibility of a Tribal library for support under the regulations required by subsection (a), the portion of paragraph (4) of section 254(h) of the Communications Act of 1934 (47 U.S.C. 254(h)) relating to eligibility for assistance from a State library administrative agency under the Library Services and Technology Act shall not apply.
Equipment described— The equipment described in this subsection is the following:
Wi-Fi hotspots.
Modems.
Routers.
Devices that combine a modem and router.
Connected devices.
Prioritization of support— The Commission shall provide in the regulations required by subsection (a) for a mechanism to require a school or library to prioritize the provision of equipment described in subsection (c), advanced telecommunications and information services, or equipment described in such subsection and advanced telecommunications and information services, for which support is received under such regulations, to students and staff or patrons (as the case may be) that the school or library believes do not have access to equipment described in subsection (c), do not have access to advanced telecommunications and information services, or have access to neither equipment described in subsection (c) nor advanced telecommunications and information services, at the residences of such students and staff or patrons.
Support amount—
Reimbursement of 100 percent of costs— In providing support under the regulations required by subsection (a), the Commission shall reimburse 100 percent of the costs associated with the equipment described in subsection (c), advanced telecommunications and information services, or equipment described in such subsection and advanced telecommunications and information services for which such support is provided, except that any reimbursement of a school or library for the costs associated with any such equipment may not exceed an amount that the Commission determines, with respect to the request by such school or library for such reimbursement, is reasonable.
Shortfall in funding— If requests for reimbursement for equipment described in subsection (c), advanced telecommunications and information services, or equipment described in such subsection and advanced telecommunications and information services exceed amounts available from the Emergency Connectivity Fund established under subsection (j)(1), the Commission shall—
prioritize reimbursements based on the assigned discount percentage of each eligible school or library requesting reimbursement under subpart F of part 54 of title 47, Code of Federal Regulations (or any successor regulation), starting with the eligible schools and libraries with the highest discount percentage established under such subpart; and
not later than 2 days after the Commission determines that the shortfall in funding exists, notify the Committee on Commerce, Science, and Transportation and the Committee on Appropriations of the Senate and the Committee on Energy and Commerce and the Committee on Appropriations of the House of Representatives of such shortfall.
Emergency periods described— An emergency period described in this subsection is a period that—
begins on the date of a determination by the Secretary of Health and Human Services pursuant to section 319 of the Public Health Service Act (42 U.S.C. 247d) that a public health emergency exists as a result of COVID–19; and
ends on the June 30 that first occurs after the date on which such determination (including any renewal thereof) terminates.
Treatment of equipment after emergency period— The Commission shall provide in the regulations required by subsection (a) that, in the case of a school or library that purchases equipment described in subsection (c) using support received under such regulations, such school or library—
may, after the emergency period with respect to which such support is received, use such equipment for such purposes as such school or library considers appropriate, subject to any restrictions provided in such regulations (or any successor regulation); and
may not sell or otherwise transfer such equipment in exchange for any thing (including a service) of value, except that such school or library may exchange such equipment for upgraded equipment of the same type.
Rule of construction— Nothing in this section shall be construed to affect any authority the Commission may have under section 254(h)(1)(B) of the Communications Act of 1934 (47 U.S.C. 254(h)(1)(B)) to allow support under such section to be used for the purposes described in subsection (a) other than as required by such subsection.
Procedural matters—
Part 54 regulations— Nothing in this section shall be construed to prevent the Commission from providing that the regulations in part 54 of title 47, Code of Federal Regulations (or any successor regulation), shall apply in whole or in part to support provided under the regulations required by subsection (a), shall not apply in whole or in part to such support, or shall be modified in whole or in part for purposes of application to such support.
Exemption from certain rulemaking requirements— Section 553 of title 5, United States Code, shall not apply to a regulation promulgated under subsection (a) or a rulemaking to promulgate such a regulation.
Paperwork Reduction Act exemption— A collection of information conducted or sponsored under the regulations required by subsection (a), or under section 254 of the Communications Act of 1934 (47 U.S.C. 254) in connection with support provided under such regulations, shall not constitute a collection of information for the purposes of subchapter I of chapter 35 of title 44, United States Code (commonly referred to as the Paperwork Reduction Act).
Emergency Connectivity Fund—
Establishment— There is established in the Treasury of the United States a fund to be known as the Emergency Connectivity Fund.
Use of funds— Amounts in the Emergency Connectivity Fund shall be available to the Commission to provide support under the regulations required by subsection (a).
Relationship to universal service contributions— Support provided under the regulations required by subsection (a) shall be provided from amounts made available under paragraph (2) and not from contributions under section 254(d) of the Communications Act of 1934 (47 U.S.C. 254(d)).
Definitions— In this section:
Advanced telecommunications and information services— The term advanced telecommunications and information services means advanced telecommunications and information services, as such term is used in section 254(h) of the Communications Act of 1934 (47 U.S.C. 254(h)).
Commission— The term Commission means the Federal Communications Commission.
Connected device— The term connected device means a laptop computer, tablet computer, or similar device that is capable of connecting to advanced telecommunications and information services.
Library— The term library includes a library consortium.
Tribal land— The term Tribal land means—
any land located within the boundaries of—
an Indian reservation, pueblo, or rancheria; or
a former reservation within Oklahoma;
any land not located within the boundaries of an Indian reservation, pueblo, or rancheria, the title to which is held—
in trust by the United States for the benefit of an Indian Tribe or an individual Indian;
by an Indian Tribe or an individual Indian, subject to restriction against alienation under laws of the United States; or
by a dependent Indian community;
any land located within a region established pursuant to section 7(a) of the Alaska Native Claims Settlement Act (43 U.S.C. 1606(a));
Hawaiian Home Lands, as defined in section 801 of the Native American Housing Assistance and Self-Determination Act of 1996 (25 U.S.C. 4221); or
those areas or communities designated by the Assistant Secretary of Indian Affairs of the Department of the Interior that are near, adjacent, or contiguous to reservations where financial assistance and social service programs are provided to Indians because of their status as Indians.
Tribal library— The term Tribal library means, only during an emergency period described under subsection (f), a facility owned by an Indian Tribe, serving Indian Tribes, or serving American Indians, Alaskan Natives, or Native Hawaiian communities, including—
a Tribal library or Tribal library consortium; or
a Tribal government building, chapter house, longhouse, community center, or other similar public building.
Wi-Fi— The term Wi-Fi means a wireless networking protocol based on Institute of Electrical and Electronics Engineers standard 802.11 (or any successor standard).
Wi-Fi hotspot— The term Wi-Fi hotspot means a device that is capable of—
receiving mobile advanced telecommunications and information services; and
sharing such services with another device through the use of Wi-Fi.
III Emergency Benefit for Broadband Service
Sec. 301 Benefit for broadband service during emergency periods relating to COVID–19
Promulgation of regulations required— Not later than 7 days after the date of the enactment of this Act, the Commission shall promulgate regulations implementing this section.
Requirements— The regulations promulgated pursuant to subsection (a) shall establish the following:
Emergency broadband benefit— During an emergency period, a provider shall provide an eligible household with an internet service offering, upon request by a member of such household. Such provider shall discount the price charged to such household for such internet service offering in an amount equal to the emergency broadband benefit for such household.
Verification of eligibility— To verify whether a household is an eligible household, a provider shall either—
use the National Lifeline Eligibility Verifier; or
rely upon an alternative verification process of the provider, if the Commission finds such process to be sufficient to avoid waste, fraud, and abuse.
Use of national lifeline eligibility verifier— The Commission shall—
expedite the ability of all providers to access the National Lifeline Eligibility Verifier for purposes of determining whether a household is an eligible household; and
ensure that the National Lifeline Eligibility Verifier approves an eligible household to receive the emergency broadband benefit not later than two days after the date of the submission of information necessary to determine if such household is an eligible household.
Extension of emergency period— An emergency period may be extended within a State or any portion thereof if the State, or in the case of Tribal land, a Tribal government, provides written, public notice to the Commission stipulating that an extension is necessary in furtherance of the recovery related to COVID–19. The Commission shall, within 48 hours after receiving such notice, post the notice on the public website of the Commission.
Reimbursement— From the Emergency Broadband Connectivity Fund established in subsection (h), the Commission shall reimburse a provider in an amount equal to the emergency broadband benefit with respect to an eligible household that receives such benefit from such provider.
Reimbursement for connected device— A provider that, in addition to providing the emergency broadband benefit to an eligible household, supplies such household with a connected device may be reimbursed up to $100 from the Emergency Broadband Connectivity Fund established in subsection (h) for such connected device, if the charge to such eligible household is more than $10 but less than $50 for such connected device, except that a provider may receive reimbursement for no more than one connected device per eligible household.
No retroactive reimbursement— A provider may not receive a reimbursement from the Emergency Broadband Connectivity Fund for providing an internet service offering discounted by the emergency broadband benefit, or for supplying a connected device, that was provided or supplied (as the case may be) before the date of the enactment of this Act.
Certification required— To receive a reimbursement under paragraph (5) or (6), a provider shall certify to the Commission the following:
That the amount for which the provider is seeking reimbursement from the Emergency Broadband Connectivity Fund for an internet service offering to an eligible household is not more than the normal rate.
That each eligible household for which a provider is seeking reimbursement for providing an internet service offering discounted by the emergency broadband benefit—
has not been and will not be charged—
for such offering, if the normal rate for such offering is less than or equal to the amount of the emergency broadband benefit for such household; or
more for such offering than the difference between the normal rate for such offering and the amount of the emergency broadband benefit for such household;
will not be required to pay an early termination fee if such eligible household elects to enter into a contract to receive such internet service offering if such household later terminates such contract; and
was not subject to a mandatory waiting period for such internet service offering based on having previously received broadband internet access service from such provider.
That each eligible household for which the provider is seeking reimbursement for supplying such household with a connected device has not been and will not be charged $10 or less or $50 or more for such device.
A description of the process used by the provider to verify that a household is an eligible household, if the provider elects an alternative verification process under paragraph (2)(B), and that such verification process was designed to avoid waste, fraud, and abuse.
Audit requirements— The Commission shall adopt audit requirements to ensure that providers are in compliance with the requirements of this section and to prevent waste, fraud, and abuse in the emergency broadband benefit program established under this section.
Eligible providers— Notwithstanding subsection (e) of this section, the Commission shall provide a reimbursement to a provider under this section without requiring such provider to be designated as an eligible telecommunications carrier under section 214(e) of the Communications Act of 1934 (47 U.S.C. 214(e)).
Rule of construction— Nothing in this section shall affect the collection, distribution, or administration of the Lifeline Assistance Program governed by the rules set forth in subpart E of part 54 of title 47, Code of Federal Regulations (or any successor regulation).
Part 54 regulations— Nothing in this section shall be construed to prevent the Commission from providing that the regulations in part 54 of title 47, Code of Federal Regulations (or any successor regulation), shall apply in whole or in part to support provided under the regulations required by subsection (a), shall not apply in whole or in part to such support, or shall be modified in whole or in part for purposes of application to such support.
Enforcement— A violation of this section or a regulation promulgated under this section, including the knowing or reckless denial of an internet service offering discounted by the emergency broadband benefit to an eligible household that requests such an offering, shall be treated as a violation of the Communications Act of 1934 (47 U.S.C. 151 et seq.) or a regulation promulgated under such Act. The Commission shall enforce this section and the regulations promulgated under this section in the same manner, by the same means, and with the same jurisdiction, powers, and duties as though all applicable terms and provisions of the Communications Act of 1934 were incorporated into and made a part of this section.
Exemptions—
Certain rulemaking requirements— Section 553 of title 5, United States Code, shall not apply to a regulation promulgated under subsection (a) or a rulemaking to promulgate such a regulation.
Paperwork reduction act requirements— A collection of information conducted or sponsored under the regulations required by subsection (a) shall not constitute a collection of information for the purposes of subchapter I of chapter 35 of title 44, United States Code (commonly referred to as the Paperwork Reduction Act).
Emergency broadband connectivity fund—
Establishment— There is established in the Treasury of the United States a fund to be known as the Emergency Broadband Connectivity Fund.
Use of funds— Amounts in the Emergency Broadband Connectivity Fund shall be available to the Commission for reimbursements to providers under the regulations required by subsection (a).
Relationship to universal service contributions— Reimbursements provided under the regulations required by subsection (a) shall be provided from amounts made available under this subsection and not from contributions under section 254(d) of the Communications Act of 1934 (47 U.S.C. 254(d)), except the Commission may use such contributions if needed to offset expenses associated with the reliance on the National Lifeline Eligibility Verifier to determine eligibility of households to receive the emergency broadband benefit.
Definitions— In this section:
Broadband internet access service— The term broadband internet access service has the meaning given such term in section 8.1(b) of title 47, Code of Federal Regulations (or any successor regulation).
Connected device— The term connected device means a laptop or desktop computer or a tablet.
Eligible household— The term eligible household means, regardless of whether the household or any member of the household receives support under subpart E of part 54 of title 47, Code of Federal Regulations (or any successor regulation), and regardless of whether any member of the household has any past or present arrearages with a provider, a household in which—
at least one member of the household meets the qualifications in subsection (a) or (b) of section 54.409 of title 47, Code of Federal Regulations (or any successor regulation);
at least one member of the household has applied for and been approved to receive benefits under the free and reduced price lunch program under the Richard B. Russell National School Lunch Act (42 U.S.C. 1751 et seq.) or the school breakfast program under section 4 of the Child Nutrition Act of 1966 (42 U.S.C. 1773);
at least one member of the household has experienced a substantial loss of income since February 29, 2020, documented by layoff or furlough notice, application for unemployment insurance benefits, or similar documentation; or
at least one member of the household has received a Federal Pell Grant under section 401 of the Higher Education Act of 1965 (20 U.S.C. 1070a) in the current award year.
Emergency broadband benefit— The term emergency broadband benefit means a monthly discount for an eligible household applied to the normal rate for an internet service offering, in an amount equal to such rate, but not more than $50, or, if an internet service offering is provided to an eligible household on Tribal land, not more than $75.
Emergency period— The term emergency period means a period that—
begins on the date of a determination by the Secretary of Health and Human Services pursuant to section 319 of the Public Health Service Act (42 U.S.C. 247d) that a public health emergency exists as a result of COVID–19; and
ends on the date that is 6 months after the date on which such determination (including any renewal thereof) terminates, except as such period may be extended under subsection (b)(4).
Internet service offering— The term internet service offering means, with respect to a provider, broadband internet access service provided by such provider to a household, offered in the same manner, and on the same terms, as described in any of such provider’s advertisements for broadband internet access service to such household, as on September 1, 2020.
Normal rate— The term normal rate means, with respect to an internet service offering by a provider, the advertised monthly retail rate, as of September 1, 2020, including any applicable promotions and excluding any taxes or other governmental fees.
Provider— The term provider means a provider of broadband internet access service.
Sec. 302 Enhanced Lifeline benefits during emergency periods
Enhanced minimum service standards for lifeline benefits during emergency periods— During an emergency period—
the minimum service standard for Lifeline supported mobile voice service shall provide an unlimited number of minutes per month;
the minimum service standard for Lifeline supported mobile data service shall provide an unlimited data allowance each month and 4G speeds, where available; and
the Basic Support Amount and Tribal Lands Support Amount, as described in section 54.403 of title 47, Code of Federal Regulations (or any successor regulation), shall be increased by an amount necessary, as determined by the Commission, to offset any incremental increase in cost associated with the requirements in paragraphs (1) and (2), but at a minimum the Basic Support Amount shall be not less than $25 per month and the Tribal Lands Support Amount shall be not less than $40 per month.
Extension of emergency period— An emergency period may be extended within a State or any portion thereof for a maximum of six months, if the State, or in the case of Tribal land, a Tribal government, provides written, public notice to the Commission stipulating that an extension is necessary in furtherance of the recovery related to COVID–19. The Commission shall, within 48 hours after receiving such notice, post the notice on the public website of the Commission.
Regulations—
In general— Not later than 7 days after the date of the enactment of this Act, the Commission shall promulgate regulations implementing this section.
Exemptions—
Certain rulemaking requirements— Section 553 of title 5, United States Code, shall not apply to a regulation promulgated under paragraph (1) or a rulemaking to promulgate such a regulation.
Paperwork Reduction Act requirements— A collection of information conducted or sponsored under the regulations promulgated under paragraph (1), or under section 254 of the Communications Act of 1934 (47 U.S.C. 254) in connection with support provided under such regulations, shall not constitute a collection of information for the purposes of subchapter I of chapter 35 of title 44, United States Code (commonly referred to as the Paperwork Reduction Act).
Emergency period defined— In this section, the term emergency period means a period that—
begins on the date of a determination by the Secretary of Health and Human Services pursuant to section 319 of the Public Health Service Act (42 U.S.C. 247d) that a public health emergency exists as a result of COVID–19; and
ends on the date that is 6 months after the date on which such determination (including any renewal thereof) terminates, except as such period may be extended under subsection (b).
Sec. 303 Grants to States to strengthen National Lifeline Eligibility Verifier
In general— From amounts appropriated to carry out this section, the Commission shall, not later than 7 days after the date of the enactment of this Act, make a grant to each State, in an amount in proportion to the population of such State, for the purpose of connecting the database used by such State for purposes of the supplemental nutrition assistance program under the Food and Nutrition Act of 2008 (7 U.S.C. 2011 et seq.) to the National Lifeline Eligibility Verifier, so that the receipt by a household of benefits under such program is reflected in the National Lifeline Eligibility Verifier.
Disbursement of grant funds— Funds under each grant made under subsection (a) shall be disbursed to the State receiving such grant not later than 7 days after the date of the enactment of this Act.
Certification to Congress— Not later than 21 days after the date of the enactment of this Act, the Commission shall certify to the Committee on Energy and Commerce of the House of Representatives and the Committee on Commerce, Science, and Transportation of the Senate that the grants required by subsection (a) have been made and that funds have been disbursed as required by subsection (b).
Sec. 304 Definitions
In this title:
Commission— The term Commission means the Federal Communications Commission.
National lifeline eligibility verifier— The term National Lifeline Eligibility Verifier has the meaning given such term in section 54.400 of title 47, Code of Federal Regulations (or any successor regulation).
State— The term State has the meaning given such term in section 3 of the Communications Act of 1934 (47 U.S.C. 153).
IV Continued Connectivity
Sec. 401 Continued connectivity during emergency periods relating to COVID–19
Title VII of the Communications Act of 1934 (47 U.S.C. 601 et seq.) is amended by adding at the end the following:
“723. Continued connectivity during emergency periods relating to COVID–19
“(a) In general—During an emergency period described in subsection (c), it shall be unlawful—
“(1) for a provider of advanced telecommunications service or voice service to—
“(A) terminate, reduce, or change such service provided to any individual customer or small business because of the inability of the individual customer or small business to pay for such service if the individual customer or small business certifies to such provider that such inability to pay is a result of disruptions caused by the public health emergency to which such emergency period relates; or
“(B) impose late fees on any individual customer or small business because of the inability of the individual customer or small business to pay for such service if the individual customer or small business certifies to such provider that such inability to pay is a result of disruptions caused by the public health emergency to which such emergency period relates;
“(2) for a provider of advanced telecommunications service to, during such emergency period—
“(A) employ a limit on the amount of data allotted to an individual customer or small business during such emergency period, except that such provider may engage in reasonable network management; or
“(B) charge an individual customer or small business an additional fee for exceeding the limit on the data allotted to an individual customer or small business; or
“(3) for a provider of advanced telecommunications service that had functioning Wi-Fi hotspots available to subscribers in public places on the day before the beginning of such emergency period to fail to make service provided by such Wi-Fi hotspots available to the public at no cost during such emergency period.
“(b) Waiver—Upon a petition by a provider advanced telecommunications service or voice service, the provisions in subsection (a) may be suspended or waived by the Commission at any time, in whole or in part, for good cause shown.
“(c) Emergency periods described—An emergency period described in this subsection is any portion beginning on or after the date of the enactment of this section of the duration of a public health emergency declared pursuant to section 319 of the Public Health Service Act (42 U.S.C. 247d) as a result of COVID–19, including any renewal thereof.
“(d) Definitions—In this section:
“(1) Advanced telecommunications service—The term advanced telecommunications service means a service that provides advanced telecommunications capability (as defined in section 706 of the Telecommunications Act of 1996 (47 U.S.C. 1302)).
“(2) Broadband internet access service—The term broadband internet access service has the meaning given such term in section 8.1(b) of title 47, Code of Federal Regulations (or any successor regulation).
“(3) Individual customer—The term individual customer means an individual who contracts with a mass-market retail provider of advanced telecommunications service or voice service to provide service to such individual.
“(4) Reasonable network management—The term reasonable network management—
“(A) means the use of a practice that—
“(i) has a primarily technical network management justification; and
“(ii) is primarily used for and tailored to achieving a legitimate network management purpose, taking into account the particular network architecture and technology of the service; and
“(B) does not include other business practices.
“(5) Small business—The term small business has the meaning given such term under section 601(3) of title 5, United States Code.
“(6) Voice service—The term voice service has the meaning given such term under section 227(e)(8) of the Communications Act of 1934 (47 U.S.C. 227(e)(8)).
“(7) Wi-fi—The term Wi-Fi means a wireless networking protocol based on Institute of Electrical and Electronics Engineers standard 802.11 (or any successor standard).
“(8) Wi-fi hotspot—The term Wi-Fi hotspot means a device that is capable of—
“(A) receiving mobile broadband internet access service; and
“(B) sharing such service with another device through the use of Wi-Fi.”
V Don’t Break Up the T–Band
Sec. 501 Repeal of requirement to reallocate and auction T–Band spectrum
Repeal— Section 6103 of the Middle Class Tax Relief and Job Creation Act of 2012 (47 U.S.C. 1413) is repealed.
Clerical amendment— The table of contents in section 1(b) of such Act is amended by striking the item relating to section 6103.
VI COVID–19 Compassion and Martha Wright Prison Phone Justice
Sec. 601 Findings
Congress finds the following:
Prison, jails, and other confinement facilities in the United States have unique telecommunications needs due to safety and security concerns.
Unjust and unreasonable charges for telephone and advanced communications services in confinement facilities negatively impact the safety and security of communities in the United States by damaging relationships between incarcerated persons and their support systems, thereby exacerbating recidivism.
The COVID–19 pandemic has greatly intensified these concerns. Jails and prisons have become epicenters for the spread of the virus, with incarcerated persons concentrated in small, confined spaces and often without access to adequate health care. At Cook County jail alone, hundreds of incarcerated persons and jail staff have tested positive for the virus since its outbreak.
To prevent the spread of the virus, many jails and prisons across the country suspended public visitation, leaving confinement facility communications services as the only way that incarcerated persons can stay in touch with their families.
All people in the United States, including anyone who pays for confinement facility communications services, should have access to communications services at charges that are just and reasonable.
Unemployment has risen sharply as a result of the COVID–19 pandemic, straining the incomes of millions of Americans and making it even more difficult for families of incarcerated persons to pay the high costs of confinement facility communications services.
Certain markets for confinement facility communications services are distorted due to reverse competition, in which the financial interests of the entity making the buying decision (the confinement facility) are aligned with the seller (the provider of confinement facility communications services) and not the consumer (the incarcerated person or a member of his or her family). This reverse competition occurs because site commission payments to the confinement facility from the provider of confinement facility communications services are the chief criterion many facilities use to select their provider of confinement facility communications services.
Charges for confinement facility communications services that have been shown to be unjust and unreasonable are often a result of site commission payments that far exceed the costs incurred by the confinement facility in accommodating these services.
Unjust and unreasonable charges have been assessed for both audio and video services and for both intrastate and interstate communications from confinement facilities.
Though Congress enacted emergency legislation to allow free communications in Federal prisons during the pandemic, it does not cover communications to or from anyone incarcerated in State and local prisons or jails.
Mrs. Martha Wright-Reed led a campaign for just communications rates for incarcerated people for over a decade.
Mrs. Wright-Reed was the lead plaintiff in Wright v. Corrections Corporation of America, CA No. 00–293 (GK) (D.D.C. 2001).
That case ultimately led to the Wright Petition at the Federal Communications Commission, CC Docket No. 96–128 (November 3, 2003).
As a grandmother, Mrs. Wright-Reed was forced to choose between purchasing medication and communicating with her incarcerated grandson.
Mrs. Wright-Reed passed away on January 18, 2015, before fully realizing her dream of just communications rates for all people.
Sec. 602 Requirements for confinement facility communications services, during the COVID–19 pandemic and other times
In general— Section 276 of the Communications Act of 1934 (47 U.S.C. 276) is amended by adding at the end the following:
“(e) Additional requirements for confinement facility communications services
“(1) Authority
“(A) In general—All charges, practices, classifications, and regulations for and in connection with confinement facility communications services shall be just and reasonable, and any such charge, practice, classification, or regulation that is unjust or unreasonable is declared to be unlawful.
“(B) Rulemaking required—Not later than 18 months after the date of the enactment of this subsection, the Commission shall issue rules to adopt, for the provision of confinement facility communications services, rates and ancillary service charges that are just and reasonable, which shall be the maximum such rates and charges that a provider of confinement facility communications services may charge for such services. In determining rates and charges that are just and reasonable, the Commission shall adopt such rates and charges based on the average industry costs of providing such services using data collected from providers of confinement facility communications services.
“(C) Biennial review—Not less frequently than every 2 years following the issuance of rules under subparagraph (B), the Commission shall—
“(i) determine whether the rates and ancillary service charges authorized by the rules issued under such subparagraph remain just and reasonable; and
“(ii) if the Commission determines under clause (i) that any such rate or charge does not remain just and reasonable, revise such rules so that such rate or charge is just and reasonable.
“(2) Interim rate caps—Until the Commission issues the rules required by paragraph (1)(B), a provider of confinement facility communications services may not charge a rate for any voice service communication using confinement facility communications services that exceeds the following:
“(A) For debit calling or prepaid calling, $0.04 per minute.
“(B) For collect calling, $0.05 per minute.
“(3) Assessment on per-minute basis—Except as provided in paragraph (4), a provider of confinement facility communications services—
“(A) shall assess all charges for a communication using such services on a per-minute basis for the actual duration of the communication, measured from communication acceptance to termination, rounded up to the next full minute, except in the case of charges for services that the confinement facility offers free of charge or for amounts below the amounts permitted under this subsection; and
“(B) may not charge a per-communication or per-connection charge for a communication using such services.
“(4) Ancillary service charges
“(A) General prohibition—A provider of confinement facility communications services may not charge an ancillary service charge other than—
“(i) if the Commission has not yet issued the rules required by paragraph (1)(B), a charge listed in subparagraph (B) of this paragraph; or
“(ii) a charge authorized by the rules adopted by the Commission under paragraph (1).
“(B) Permitted charges and rates—If the Commission has not yet issued the rules required by paragraph (1)(B), a provider of confinement facility communications services may not charge a rate for an ancillary service charge in excess of the following:
“(i) In the case of an automated payment fee, 2.9 percent of the total charge on which the fee is assessed.
“(ii) In the case of a fee for single-call and related services, the exact transaction fee charged by the third-party provider, with no markup.
“(iii) In the case of a live agent fee, $5.95 per use.
“(iv) In the case of a paper bill or statement fee, $2 per use.
“(v) In the case of a third-party financial transaction fee, the exact fee, with no markup, charged by the third party for the transaction.
“(5) Prohibition on site commissions—A provider of confinement facility communications services may not assess a site commission.
“(6) Relationship to State law—A State or political subdivision of a State may not enforce any law, rule, regulation, standard, or other provision having the force or effect of law relating to confinement facility communications services that allows for higher rates or other charges to be assessed for such services than is permitted under any Federal law or regulation relating to confinement facility communications services.
“(7) Definitions—In this subsection:
“(A) Ancillary service charge—The term ancillary service charge means any charge a consumer may be assessed for the setting up or use of a confinement facility communications service that is not included in the per-minute charges assessed for individual communications.
“(B) Automated payment fee—The term automated payment fee means a credit card payment, debit card payment, or bill processing fee, including a fee for a payment made by means of interactive voice response, the internet, or a kiosk.
“(C) Collect calling—The term collect calling means an arrangement whereby a credit-qualified party agrees to pay for charges associated with a communication made to such party using confinement facility communications services and originating from within a confinement facility.
“(D) Confinement facility—The term confinement facility—
“(i) means a jail or a prison; and
“(ii) includes any juvenile, detention, work release, or mental health facility that is used primarily to hold individuals who are—
“(I) awaiting adjudication of criminal charges or an immigration matter; or
“(II) serving a sentence for a criminal conviction.
“(E) Confinement facility communications service—The term confinement facility communications service means a service that allows incarcerated persons to make electronic communications (whether intrastate, interstate, or international and whether made using video, audio, or any other communicative method, including advanced communications services) to individuals outside the confinement facility, or to individuals inside the confinement facility, where the incarcerated person is being held, regardless of the technology used to deliver the service.
“(F) Consumer—The term consumer means the party paying a provider of confinement facility communications services.
“(G) Debit calling—The term debit calling means a presubscription or comparable service which allows an incarcerated person, or someone acting on an incarcerated person’s behalf, to fund an account set up through a provider that can be used to pay for confinement facility communications services originated by the incarcerated person.
“(H) Fee for single-call and related services—The term fee for single-call and related services means a billing arrangement whereby communications made by an incarcerated person using collect calling are billed through a third party on a per-communication basis, where the recipient does not have an account with the provider of confinement facility communications services.
“(I) Incarcerated person—The term incarcerated person means a person detained at a confinement facility, regardless of the duration of the detention.
“(J) Jail—The term jail—
“(i) means a facility of a law enforcement agency of the Federal Government or of a State or political subdivision of a State that is used primarily to hold individuals who are—
“(I) awaiting adjudication of criminal charges;
“(II) post-conviction and committed to confinement for sentences of one year or less; or
“(III) post-conviction and awaiting transfer to another facility; and
“(ii) includes—
“(I) city, county, or regional facilities that have contracted with a private company to manage day-to-day operations;
“(II) privately-owned and operated facilities primarily engaged in housing city, county, or regional incarcerated persons; and
“(III) facilities used to detain individuals pursuant to a contract with U.S. Immigration and Customs Enforcement.
“(K) Live agent fee—The term live agent fee means a fee associated with the optional use of a live operator to complete a confinement facility communications service transaction.
“(L) Paper bill or statement fee—The term paper bill or statement fee means a fee associated with providing a consumer an optional paper billing statement.
“(M) Per-communication or per-connection charge—The term per-communication or per-connection charge means a one-time fee charged to a consumer at the initiation of a communication.
“(N) Prepaid calling—The term prepaid calling means a calling arrangement that allows a consumer to pay in advance for a specified amount of confinement facility communications services.
“(O) Prison—The term prison—
“(i) means a facility operated by a State or Federal agency that is used primarily to confine individuals convicted of felonies and sentenced to terms in excess of one year; and
“(ii) includes—
“(I) public and private facilities that provide outsource housing to State or Federal agencies such as State Departments of Correction and the Federal Bureau of Prisons; and
“(II) facilities that would otherwise be jails but in which the majority of incarcerated persons are post-conviction or are committed to confinement for sentences of longer than one year.
“(P) Provider of confinement facility communications services—The term provider of confinement facility communications services means any communications service provider that provides confinement facility communications services, regardless of the technology used.
“(Q) Site commission—The term site commission means any monetary payment, in-kind payment, gift, exchange of services or goods, fee, technology allowance, or product that a provider of confinement facility communications services or an affiliate of a provider of confinement facility communications services may pay, give, donate, or otherwise provide to—
“(i) an entity that operates a confinement facility;
“(ii) an entity with which the provider of confinement facility communications services enters into an agreement to provide confinement facility communications services;
“(iii) a governmental agency that oversees a confinement facility;
“(iv) the State or political subdivision of a State where a confinement facility is located; or
“(v) an agent or other representative of an entity described in any of clauses (i) through (iv).
“(R) Third-party financial transaction fee—The term third-party financial transaction fee means the exact fee, with no markup, that a provider of confinement facility communications services is charged by a third party to transfer money or process a financial transaction to facilitate the ability of a consumer to make an account payment via a third party.
“(S) Voice service—The term voice service—
“(i) means any service that is interconnected with the public switched telephone network and that furnishes voice communications to an end user using resources from the North American Numbering Plan or any successor to the North American Numbering Plan adopted by the Commission under section 251(e)(1); and
“(ii) includes—
“(I) transmissions from a telephone facsimile machine, computer, or other device to a telephone facsimile machine; and
“(II) without limitation, any service that enables real-time, two-way voice communications, including any service that requires internet protocol-compatible customer premises equipment (commonly known as “CPE”) and permits out-bound calling, whether or not the service is one-way or two-way voice over internet protocol.”
Conforming amendment— Section 276(d) of the Communications Act of 1934 (47 U.S.C. 276(d)) is amended by striking “inmate telephone service in correctional institutions” and inserting “confinement facility communications services (as defined in subsection (e)(7))”.
Existing contracts—
In general— In the case of a contract that was entered into and under which a provider of confinement facility communications services was providing such services at a confinement facility on or before the date of the enactment of this Act—
paragraphs (1) through (5) of subsection (e) of section 276 of the Communications Act of 1934, as added by subsection (a) of this section, shall apply to the provision of confinement facility communications services by such provider at such facility beginning on the earlier of—
the date that is 60 days after such date of enactment; or
the date of the termination of the contract; and
the terms of such contract may not be extended after such date of enactment, whether by exercise of an option or otherwise.
Definitions— In this subsection, the terms confinement facility, confinement facility communications service, and provider of confinement facility communications services have the meanings given such terms in paragraph (7) of subsection (e) of section 276 of the Communications Act of 1934, as added by subsection (a) of this section.
Sec. 603 Authority
Section 2(b) of the Communications Act of 1934 (47 U.S.C. 152(b)) is amended by inserting “section 276,” after “227, inclusive,”.