Court Opinions
State Laws
|
Telegraphs, Telephones, and Radiotelegraphs - 47 USC Section 151
Legal Research Home >
US Lawyer > Telecom > Telegraphs, Telephones, and Radiotelegraphs - 47 USC Section 151
01/19/04 Sec. 151. Purposes of chapter; Federal Communications Commission
created
For the purpose of regulating interstate and foreign commerce in
communication by wire and radio so as to make available, so far as
possible, to all the people of the United States, without
discrimination on the basis of race, color, religion, national
origin, or sex, a rapid, efficient, Nation-wide, and world-wide
wire and radio communication service with adequate facilities at
reasonable charges, for the purpose of the national defense, for
the purpose of promoting safety of life and property through the
use of wire and radio communications, and for the purpose of
securing a more effective execution of this policy by centralizing
authority heretofore granted by law to several agencies and by
granting additional authority with respect to interstate and
foreign commerce in wire and radio communication, there is created
a commission to be known as the "Federal Communications
Commission", which shall be constituted as hereinafter provided,
and which shall execute and enforce the provisions of this chapter.
AMENDMENTS
1996 - Pub. L. 104-104 inserted ", without discrimination on the
basis of race, color, religion, national origin, or sex," after "to
all the people of the United States".
1937 - Act May 20, 1937, inserted "for the purpose of promoting
safety of life and property through the use of wire and radio
communication".
MORATORIUM ON INTERNET TAXES
Pub. L. 105-277, div. C, title XI, Oct. 21, 1998, 112 Stat.
2681-719, as amended by Pub. L. 107-75, Sec. 2, Nov. 28, 2001, 115
Stat. 703, provided that:
"SEC. 1100. SHORT TITLE.
"This title may be cited as the 'Internet Tax Freedom Act'.
"SEC. 1101. MORATORIUM.
"(a) Moratorium. - No State or political subdivision thereof
shall impose any of the following taxes during the period beginning
on October 1, 1998, and ending on November 1, 2003 -
"(1) taxes on Internet access, unless such tax was generally
imposed and actually enforced prior to October 1, 1998; and
"(2) multiple or discriminatory taxes on electronic commerce.
"(b) Preservation of State and Local Taxing Authority. - Except
as provided in this section, nothing in this title shall be
construed to modify, impair, or supersede, or authorize the
modification, impairment, or superseding of, any State or local law
pertaining to taxation that is otherwise permissible by or under
the Constitution of the United States or other Federal law and in
effect on the date of enactment of this Act [Oct. 21, 1998].
"(c) Liabilities and Pending Cases. - Nothing in this title
affects liability for taxes accrued and enforced before the date of
enactment of this Act, nor does this title affect ongoing
litigation relating to such taxes.
"(d) Definition of Generally Imposed and Actually Enforced. - For
purposes of this section, a tax has been generally imposed and
actually enforced prior to October 1, 1998, if, before that date,
the tax was authorized by statute and either -
"(1) a provider of Internet access services had a reasonable
opportunity to know by virtue of a rule or other public
proclamation made by the appropriate administrative agency of the
State or political subdivision thereof, that such agency has
interpreted and applied such tax to Internet access services; or
"(2) a State or political subdivision thereof generally
collected such tax on charges for Internet access.
"(e) Exception to Moratorium. -
"(1) In general. - Subsection (a) shall also not apply in the
case of any person or entity who knowingly and with knowledge of
the character of the material, in interstate or foreign commerce
by means of the World Wide Web, makes any communication for
commercial purposes that is available to any minor and that
includes any material that is harmful to minors unless such
person or entity has restricted access by minors to material that
is harmful to minors -
"(A) by requiring use of a credit card, debit account, adult
access code, or adult personal identification number;
"(B) by accepting a digital certificate that verifies age; or
"(C) by any other reasonable measures that are feasible under
available technology.
"(2) Scope of exception. - For purposes of paragraph (1), a
person shall not be considered to [be] making a communication for
commercial purposes of material to the extent that the person is
-
"(A) a telecommunications carrier engaged in the provision of
a telecommunications service;
"(B) a person engaged in the business of providing an
Internet access service;
"(C) a person engaged in the business of providing an
Internet information location tool; or
"(D) similarly engaged in the transmission, storage,
retrieval, hosting, formatting, or translation (or any
combination thereof) of a communication made by another person,
without selection or alteration of the communication.
"(3) Definitions. - In this subsection:
"(A) By means of the world wide web. - The term 'by means of
the World Wide Web' means by placement of material in a
computer server-based file archive so that it is publicly
accessible, over the Internet, using hypertext transfer
protocol, file transfer protocol, or other similar protocols.
"(B) Commercial purposes; engaged in the business. -
"(i) Commercial purposes. - A person shall be considered to
make a communication for commercial purposes only if such
person is engaged in the business of making such
communications.
"(ii) Engaged in the business. - The term 'engaged in the
business' means that the person who makes a communication, or
offers to make a communication, by means of the World Wide
Web, that includes any material that is harmful to minors,
devotes time, attention, or labor to such activities, as a
regular course of such person's trade or business, with the
objective of earning a profit as a result of such activities
(although it is not necessary that the person make a profit
or that the making or offering to make such communications be
the person's sole or principal business or source of income).
A person may be considered to be engaged in the business of
making, by means of the World Wide Web, communications for
commercial purposes that include material that is harmful to
minors, only if the person knowingly causes the material that
is harmful to minors to be posted on the World Wide Web or
knowingly solicits such material to be posted on the World
Wide Web.
"(C) Internet. - The term 'Internet' means collectively the
myriad of computer and telecommunications facilities, including
equipment and operating software, which comprise the
interconnected world-wide 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.
"(D) Internet access service. - The term 'Internet access
service' means a service that enables users to access content,
information, electronic mail, or other services offered over
the Internet and may also include access to proprietary
content, information, and other services as part of a package
of services offered to consumers. Such term does not include
telecommunications services.
"(E) Internet information location tool. - The term 'Internet
information location tool' means a service that refers or links
users to an online location on the World Wide Web. Such term
includes directories, indices, references, pointers, and
hypertext links.
"(F) Material that is harmful to minors. - The term 'material
that is harmful to minors' means any communication, picture,
image, graphic image file, article, recording, writing, or
other matter of any kind that is obscene or that -
"(i) the average person, applying contemporary community
standards, would find, taking the material as a whole and
with respect to minors, is designed to appeal to, or is
designed to pander to, the prurient interest;
"(ii) depicts, describes, or represents, in a manner
patently offensive with respect to minors, an actual or
simulated sexual act or sexual contact, an actual or
simulated normal or perverted sexual act, or a lewd
exhibition of the genitals or post-pubescent female breast;
and
"(iii) taken as a whole, lacks serious literary, artistic,
political, or scientific value for minors.
"(G) Minor. - The term 'minor' means any person under 17
years of age.
"(H) Telecommunications carrier; telecommunications service.
- The terms 'telecommunications carrier' and
'telecommunications service' have the meanings given such terms
in section 3 of the Communications Act of 1934 (47 U.S.C. 153).
"(f) Additional Exception to Moratorium. -
"(1) In general. - Subsection (a) shall also not apply with
respect to an Internet access provider, unless, at the time of
entering into an agreement with a customer for the provision of
Internet access services, such provider offers such customer
(either for a fee or at no charge) screening software that is
designed to permit the customer to limit access to material on
the Internet that is harmful to minors.
"(2) Definitions. - In this subsection:
"(A) Internet access provider. - The term 'Internet access
provider' means a person engaged in the business of providing a
computer and communications facility through which a customer
may obtain access to the Internet, but does not include a
common carrier to the extent that it provides only
telecommunications services.
"(B) Internet access services. - The term 'Internet access
services' means the provision of computer and communications
services through which a customer using a computer and a modem
or other communications device may obtain access to the
Internet, but does not include telecommunications services
provided by a common carrier.
"(C) Screening software. - The term 'screening software'
means software that is designed to permit a person to limit
access to material on the Internet that is harmful to minors.
"(3) Applicability. - Paragraph (1) shall apply to agreements
for the provision of Internet access services entered into on or
after the date that is 6 months after the date of enactment of
this Act [Oct. 21, 1998].
"SEC. 1102. ADVISORY COMMISSION ON ELECTRONIC COMMERCE.
"(a) Establishment of Commission. - There is established a
commission to be known as the Advisory Commission on Electronic
Commerce (in this title referred to as the 'Commission'). The
Commission shall -
"(1) be composed of 19 members appointed in accordance with
subsection (b), including the chairperson who shall be selected
by the members of the Commission from among themselves; and
"(2) conduct its business in accordance with the provisions of
this title.
"(b) Membership. -
"(1) In general. - The Commissioners shall serve for the life
of the Commission. The membership of the Commission shall be as
follows:
"(A) 3 representatives from the Federal Government, comprised
of the Secretary of Commerce, the Secretary of the Treasury,
and the United States Trade Representative (or their respective
delegates).
"(B) 8 representatives from State and local governments (one
such representative shall be from a State or local government
that does not impose a sales tax and one representative shall
be from a State that does not impose an income tax).
"(C) 8 representatives of the electronic commerce industry
(including small business), telecommunications carriers, local
retail businesses, and consumer groups, comprised of -
"(i) 5 individuals appointed by the Majority Leader of the
Senate;
"(ii) 3 individuals appointed by the Minority Leader of the
Senate;
"(iii) 5 individuals appointed by the Speaker of the House
of Representatives; and
"(iv) 3 individuals appointed by the Minority Leader of the
House of Representatives.
"(2) Appointments. - Appointments to the Commission shall be
made not later than 45 days after the date of the enactment of
this Act [Oct. 21, 1998]. The chairperson shall be selected not
later than 60 days after the date of the enactment of this Act.
"(3) Vacancies. - Any vacancy in the Commission shall not
affect its powers, but shall be filled in the same manner as the
original appointment.
"(c) Acceptance of Gifts and Grants. - The Commission may accept,
use, and dispose of gifts or grants of services or property, both
real and personal, for purposes of aiding or facilitating the work
of the Commission. Gifts or grants not used at the expiration of
the Commission shall be returned to the donor or grantor.
"(d) Other Resources. - The Commission shall have reasonable
access to materials, resources, data, and other information from
the Department of Justice, the Department of Commerce, the
Department of State, the Department of the Treasury, and the Office
of the United States Trade Representative. The Commission shall
also have reasonable access to use the facilities of any such
Department or Office for purposes of conducting meetings.
"(e) Sunset. - The Commission shall terminate 18 months after the
date of the enactment of this Act [Oct. 21, 1998].
"(f) Rules of the Commission. -
"(1) Quorum. - Nine members of the Commission shall constitute
a quorum for conducting the business of the Commission.
"(2) Meetings. - Any meetings held by the Commission shall be
duly noticed at least 14 days in advance and shall be open to the
public.
"(3) Opportunities to testify. - The Commission shall provide
opportunities for representatives of the general public, taxpayer
groups, consumer groups, and State and local government officials
to testify.
"(4) Additional rules. - The Commission may adopt other rules
as needed.
"(g) Duties of the Commission. -
"(1) In general. - The Commission shall conduct a thorough
study of Federal, State and local, and international taxation and
tariff treatment of transactions using the Internet and Internet
access and other comparable intrastate, interstate or
international sales activities.
"(2) Issues to be studied. - The Commission may include in the
study under subsection (a) -
"(A) an examination of -
"(i) barriers imposed in foreign markets on United States
providers of property, goods, services, or information
engaged in electronic commerce and on United States providers
of telecommunications services; and
"(ii) how the imposition of such barriers will affect
United States consumers, the competitiveness of United States
citizens providing property, goods, services, or information
in foreign markets, and the growth and maturing of the
Internet;
"(B) an examination of the collection and administration of
consumption taxes on electronic commerce in other countries and
the United States, and the impact of such collection on the
global economy, including an examination of the relationship
between the collection and administration of such taxes when
the transaction uses the Internet and when it does not;
"(C) an examination of the impact of the Internet and
Internet access (particularly voice transmission) on the
revenue base for taxes imposed under section 4251 of the
Internal Revenue Code of 1986 [26 U.S.C. 4251];
"(D) an examination of model State legislation that -
"(i) would provide uniform definitions of categories of
property, goods, service, or information subject to or exempt
from sales and use taxes; and
"(ii) would ensure that Internet access services, online
services, and communications and transactions using the
Internet, Internet access service, or online services would
be treated in a tax and technologically neutral manner
relative to other forms of remote sales;
"(E) an examination of the effects of taxation, including the
absence of taxation, on all interstate sales transactions,
including transactions using the Internet, on retail businesses
and on State and local governments, which examination may
include a review of the efforts of State and local governments
to collect sales and use taxes owed on in-State purchases from
out-of-State sellers; and
"(F) the examination of ways to simplify Federal and State
and local taxes imposed on the provision of telecommunications
services.
"(3) Effect on the communications act of 1934. - Nothing in
this section shall include an examination of any fees or charges
imposed by the Federal Communications Commission or States
related to -
"(A) obligations under the Communications Act of 1934 (47
U.S.C. 151 et seq.); or
"(B) the implementation of the Telecommunications Act of 1996
[Pub. L. 104-104, see Short Title of 1996 Amendment note set
out under section 609 of this title] (or of amendments made by
that Act).
"(h) National Tax Association Communications and Electronic
Commerce Tax Project. - The Commission shall, to the extent
possible, ensure that its work does not undermine the efforts of
the National Tax Association Communications and Electronic Commerce
Tax Project.
"SEC. 1103. REPORT.
"Not later than 18 months after the date of the enactment of this
Act [Oct. 21, 1998], the Commission shall transmit to Congress for
its consideration a report reflecting the results, including such
legislative recommendations as required to address the findings of
the Commission's study under this title. Any recommendation agreed
to by the Commission shall be tax and technologically neutral and
apply to all forms of remote commerce. No finding or recommendation
shall be included in the report unless agreed to by at least
two-thirds of the members of the Commission serving at the time the
finding or recommendation is made.
"SEC. 1104. DEFINITIONS.
"For the purposes of this title:
"(1) Bit tax. - The term 'bit tax' means any tax on electronic
commerce expressly imposed on or measured by the volume of
digital information transmitted electronically, or the volume of
digital information per unit of time transmitted electronically,
but does not include taxes imposed on the provision of
telecommunications services.
"(2) Discriminatory tax. - The term 'discriminatory tax' means
-
"(A) any tax imposed by a State or political subdivision
thereof on electronic commerce that -
"(i) is not generally imposed and legally collectible by
such State or such political subdivision on transactions
involving similar property, goods, services, or information
accomplished through other means;
"(ii) is not generally imposed and legally collectible at
the same rate by such State or such political subdivision on
transactions involving similar property, goods, services, or
information accomplished through other means, unless the rate
is lower as part of a phase-out of the tax over not more than
a 5-year period;
"(iii) imposes an obligation to collect or pay the tax on a
different person or entity than in the case of transactions
involving similar property, goods, services, or information
accomplished through other means;
"(iv) establishes a classification of Internet access
service providers or online service providers for purposes of
establishing a higher tax rate to be imposed on such
providers than the tax rate generally applied to providers of
similar information services delivered through other means;
or
"(B) any tax imposed by a State or political subdivision
thereof, if -
"(i) except with respect to a tax (on Internet access) that
was generally imposed and actually enforced prior to October
1, 1998, the sole ability to access a site on a remote
seller's out-of-State computer server is considered a factor
in determining a remote seller's tax collection obligation;
or
"(ii) a provider of Internet access service or online
services is deemed to be the agent of a remote seller for
determining tax collection obligations solely as a result of
-
"(I) the display of a remote seller's information or content
on the out-of-State computer server of a provider of Internet
access service or online services; or
"(II) the processing of orders through the out-of-State
computer server of a provider of Internet access service or
online services.
"(3) Electronic commerce. - The term 'electronic commerce'
means any transaction conducted over the Internet or through
Internet access, comprising the sale, lease, license, offer, or
delivery of property, goods, services, or information, whether or
not for consideration, and includes the provision of Internet
access.
"(4) Internet. - The term 'Internet' means collectively the
myriad of computer and telecommunications facilities, including
equipment and operating software, which comprise the
interconnected world-wide 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) Internet access. - The term 'Internet access' means a
service that enables users to access content, information,
electronic mail, or other services offered over the Internet, and
may also include access to proprietary content, information, and
other services as part of a package of services offered to users.
Such term does not include telecommunications services.
"(6) Multiple tax. -
"(A) In general. - The term 'multiple tax' means any tax that
is imposed by one State or political subdivision thereof on the
same or essentially the same electronic commerce that is also
subject to another tax imposed by another State or political
subdivision thereof (whether or not at the same rate or on the
same basis), without a credit (for example, a resale exemption
certificate) for taxes paid in other jurisdictions.
"(B) Exception. - Such term shall not include a sales or use
tax imposed by a State and 1 or more political subdivisions
thereof on the same electronic commerce or a tax on persons
engaged in electronic commerce which also may have been subject
to a sales or use tax thereon.
"(C) Sales or use tax. - For purposes of subparagraph (B),
the term 'sales or use tax' means a tax that is imposed on or
incident to the sale, purchase, storage, consumption,
distribution, or other use of tangible personal property or
services as may be defined by laws imposing such tax and which
is measured by the amount of the sales price or other charge
for such property or service.
"(7) State. - The term 'State' means any of the several States,
the District of Columbia, or any commonwealth, territory, or
possession of the United States.
"(8) Tax. -
"(A) In general. - The term 'tax' means -
"(i) any charge imposed by any governmental entity for the
purpose of generating revenues for governmental purposes, and
is not a fee imposed for a specific privilege, service, or
benefit conferred; or
"(ii) the imposition on a seller of an obligation to
collect and to remit to a governmental entity any sales or
use tax imposed on a buyer by a governmental entity.
"(B) Exception. - Such term does not include any franchise
fee or similar fee imposed by a State or local franchising
authority, pursuant to section 622 or 653 of the Communications
Act of 1934 (47 U.S.C. 542, 573), or any other fee related to
obligations or telecommunications carriers under the
Communications Act of 1934 (47 U.S.C. 151 et seq.).
"(9) Telecommunications service. - The term 'telecommunications
service' has the meaning given such term in section 3(46) of the
Communications Act of 1934 (47 U.S.C. 153(46)) and includes
communications services (as defined in section 4251 of the
Internal Revenue Code of 1986 [26 U.S.C. 4251]).
"(10) Tax on internet access. - The term 'tax on Internet
access' means a tax on Internet access, including the enforcement
or application of any new or preexisting tax on the sale or use
of Internet services unless such tax was generally imposed and
actually enforced prior to October 1, 1998."
STYLISTIC CONSISTENCY
Section 101(c) of title I of Pub. L. 104-104 provided that: "The
Act [Communications Act of 1934 (47 U.S.C. 151 et seq.)] is amended
so that -
"(1) the designation and heading of each title of the Act shall
be in the form and typeface of the designation and heading of
this title of this Act [110 Stat. 61]; and
"(2) the designation and heading of each part of each title of
the Act shall be in the form and typeface of the designation and
heading of part I of title II of the Act [110 Stat. 61], as
amended by subsection (a)."
STUDY OF TELECOMMUNICATIONS AND INFORMATION GOALS
Pub. L. 97-259, title II, Sec. 202, Sept. 13, 1982, 96 Stat.
1099, provided that:
"(a) The National Telecommunications and Information
Administration shall conduct a comprehensive study of the
long-range international telecommunications and information goals
of the United States, the specific international telecommunications
and information policies necessary to promote those goals and the
strategies that will ensure that the United States achieves them.
The Administration shall further conduct a review of the
structures, procedures, and mechanisms which are utilized by the
United States to develop international telecommunications and
information policy.
"(b) In any study or review conducted pursuant to this section,
the National Telecommunications and Information Administration
shall not make public information regarding usage or traffic
patterns which would damage United States commercial interests. Any
such study or review shall be limited to international
telecommunications policies or to domestic telecommunications
issues which directly affect such policies."
COMMISSION ON GOVERNMENTAL USE OF INTERNATIONAL TELECOMMUNICATIONS
Act July 29, 1954, ch. 647, 68 Stat. 587, established the
Commission on Governmental Use of International Telecommunications
to examine, study and report on the objectives, operations, and
effectiveness of information programs with respect to the prompt
development of techniques, methods, and programs for greatly
expanded and far more effective operations in this vital area of
foreign policy through the use of foreign telecommunications. The
Commission was required to make a report of its findings and
recommendations on or before Dec. 31, 1954, and the Commission
ceased to exist 90 days after submission of its report to the
Congress.
COMMUNICATION PRIVILEGES TO PARTICIPANTS IN WORLD TELECOMMUNICATION
CONFERENCES
Act May 13, 1947, ch. 51, 61 Stat. 83, provided that nothing in
this chapter, or in any other provision of law should be construed
to prohibit United States communication common carriers from
rendering free communication services to official participants in
the world telecommunications conferences which were held in the
United States in 1947.
Last modified: June 19, 2006
|
|
