text: SECTION 1. IMPROVED PROTECTION FOR CONSUMERS.
  
      (a) Verification of Authorization.--Subsection (a) of section 258 
  of the Communications Act of 1934 (47 U.S.C. 258) is amended to read as 
  follows:
      ``(a) Prohibition.--
              ``(1) In general.--No telecommunications carrier or 
          reseller of telecommunications services shall submit or execute 
          a change in a subscriber's selection of a provider of telephone 
          exchange service or telephone toll service except in accordance 
          with this section and such verification procedures as the 
          Commission shall prescribe.
              ``(2) Verification.--
                      ``(A) In general.--In order to verify a 
                  subscriber's selection of a telephone exchange service 
                  or telephone toll service provider under this section, 
                  the telecommunications carrier or reseller shall, at a 
                  minimum, require the subscriber--
                              ``(i) to acknowledge the type of service to 
                          be changed as a result of the selection;
                              ``(ii) to affirm the subscriber's intent to 
                          select the provider as the provider of that 
                          service;
                              ``(iii) to affirm that the consumer is the 
                          subscriber or is authorized to select the 
                          provider of that service for the telephone 
                          number in question;
                              ``(iv) to acknowledge that the selection of 
                          the provider will result in a change in 
                          providers of that service; and
                              ``(v) to provide such other information as 
                          the Commission considers appropriate for the 
                          protection of the subscriber.
                      ``(B) Additional requirements.--The procedures 
                  prescribed by the Commission to verify a subscriber's 
                  selection of a provider shall--
                              ``(i) preclude the use of negative option 
                          marketing;
                              ``(ii) provide for verification of a change 
                          in telephone exchange service or telephone toll 
                          service provider in oral, written, or 
                          electronic form; and
                              ``(iii) require the retention of such 
                          verification in such manner and form and for 
                          such time as the Commission considers 
                          appropriate.
              ``(3) Intrastate services.--Nothing in this section shall 
          preclude any State commission from enforcing such procedures 
          with respect to intrastate services.
              ``(4) Section not to apply to wireless.--This section does 
          not apply to a provider of commercial mobile service, as that 
          term is defined in section 332(d)(1) of this Act.''.
      (b) Resolution of Complaints.--Section 258 of the Communications 
  Act of 1934 (47 U.S.C. 258) is amended by adding at the end thereof the 
  following:
      ``(c) Notice to Subscriber.--Whenever there is a change in a 
  subscriber's selection of a provider of telephone exchange service or 
  telephone toll service, the telecommunications carrier or reseller 
  selected shall notify the subscriber in writing, not more than 15 days 
  after the change is processed by the telecommunications carrier or the 
  reseller--
              ``(1) of the subscriber's new carrier; and
              ``(2) that the subscriber may request information regarding 
          the date on which the change was agreed to and the name of the 
          individual who authorized the change.
      ``(d) Resolution of Complaints.--
              ``(1) Prompt resolution.--
                      ``(A) In general.--The Commission shall prescribe a 
                  period of time, not in excess of 120 days after a 
                  telecommunications carrier or reseller receives notice, 
                  for the telecommunications carrier or reseller to 
                  resolve a complaint by a subscriber concerning an 
                  unauthorized change in the subscriber's selection of a 
                  provider of telephone exchange service or telephone 
                  toll service.
                      ``(B) Unresolved complaints.--If a 
                  telecommunications carrier or reseller fails to resolve 
                  a complaint within the time period prescribed by the 
                  Commission, then, within 10 days after the end of that 
                  period, the telecommunications carrier or reseller 
                  shall--
                              ``(i) notify the subscriber in writing of 
                          the subscriber's right to file a complaint with 
                          the Commission concerning the unresolved 
                          complaint, the subscriber's rights under this 
                          section, and all other remedies available to 
                          the subscriber concerning unauthorized changes;
                              ``(ii) inform the subscriber in writing of 
                          the procedures prescribed by the Commission for 
                          filing such a complaint; and
                              ``(iii) provide the subscriber a copy of 
                          any evidence in the carrier's or reseller's 
                          possession showing that the change in the 
                          subscriber's provider of telephone exchange 
                          service or telephone toll service was submitted 
                          or executed in accordance with the verification 
                          procedures prescribed under subsection (a).
              ``(2) Resolution by commission.--The Commission shall 
          provide a simplified process for resolving complaints under 
          paragraph (1)(B). The simplified procedure shall preclude the 
          use of interrogatories, depositions, discovery, or other 
          procedural techniques that might unduly increase the expense, 
          formality, and time, involved in the process. The Commission 
          shall issue an order resolving any such complaint at the 
          earliest date practicable, but in no event later than--
                      ``(A) 150 days after the date on which it received 
                  the complaint, with respect to liability issues; and
                      ``(B) 90 days after the date on which it resolves a 
                  complaint, with respect to damages issues, if such 
                  additional time is necessary.
              ``(3) Damages awarded by commission.--In resolving a 
          complaint under paragraph (1)(B), the Commission may award 
          damages equal to the greater of $500 or the amount of actual 
          damages. The Commission may, in its discretion, increase the 
          amount of the award to an amount equal to not more than 3 times 
          the amount available under the preceding sentence.
      ``(e) Penalty.--
              ``(1) In general.--Unless the Commission determines that 
          there are mitigating circumstances, violation of subsection (a) 
          is punishable by a fine of not less than $40,000 for the first 
          offense, and not less than $150,000 for each subsequent 
          offense.
              ``(2) Failure to notify treated as violation of subsection 
          (a).--If a telecommunications carrier or reseller fails to 
          comply with the requirements of subsection (d)(1)(B), then that 
          failure shall be treated as a violation of subsection (a).
      ``(f) Recovery of Fines.--The Commission may take such action as 
  may be necessary--
              ``(1) to collect any fines it imposes under this section; 
          and
              ``(2) on behalf of any subscriber, any damages awarded the 
          subscriber under this section.
      ``(g) Change Includes Initial Selection.--For purposes of this 
  section, the initiation of service to a subscriber by a 
  telecommunications carrier or a reseller shall be treated as a change 
  in a subscriber's selection of a provider of telephone exchange service 
  or telephone toll service.''.
      (c) State Right-of-Action.--Section 258 of the Communications Act 
  of 1934 (47 U.S.C. 258), as amended by subsection (b), is amended by 
  adding at the end thereof the following:
      ``(h) Actions by States.--
              ``(1) Authority of states.--Whenever the attorney general 
          of a State, or an official or agency designated by a State, has 
          reason to believe that a telecommunications carrier or reseller 
          has engaged or is engaging in a pattern or practice of changing 
          telephone exchange service or telephone toll service provider 
          without authority from subscribers in that State in violation 
          of this section or the regulations prescribed under this 
          section, the State may bring a civil action on behalf of its 
          residents to enjoin such unauthorized changes, an action to 
          recover for actual monetary loss or receive $500 in damages for 
          each violation, or both such actions. If the court finds the 
          defendant willfully or knowingly violated such regulations, the 
          court may, in its discretion, increase the amount of the award 
          to an amount equal to not more than 3 times the amount 
          available under the preceding sentence.
              ``(2) Exclusive jurisdiction of federal courts.--The 
          district courts of the United States, the United States courts 
          of any territory, and the District Court of the United States 
          for the District of Columbia shall have exclusive jurisdiction 
          over all civil actions brought under this subsection. Upon 
          proper application, such courts shall also have jurisdiction to 
          issue writs of mandamus, or orders affording like relief, 
          commanding the defendant to comply with the provisions of this 
          section or regulations prescribed under this section, including 
          the requirement that the defendant take such action as is 
          necessary to remove the danger of such violation. Upon a proper 
          showing, a permanent or temporary injunction or restraining 
          order shall be granted without bond.
              ``(3) Rights of commission.--The State shall serve prior 
          written notice of any such civil action upon the Commission and 
          provide the Commission with a copy of its complaint, except in 
          any case where such prior notice is not feasible, in which case 
          the State shall serve such notice immediately upon instituting 
          such action. The Commission shall have the right--
                      ``(A) to intervene in the action;
                      ``(B) upon so intervening, to be heard on all 
                  matters arising therein; and
                      ``(C) to file petitions for appeal.
              ``(4) Venue; service of process.--Any civil action brought 
          under this subsection in a district court of the United States 
          may be brought in the district wherein the defendant is found 
          or is an inhabitant or transacts business or wherein the 
          violation occurred or is occurring, and process in such cases 
          may be served in any district in which the defendant is an 
          inhabitant or where the defendant may be found.
              ``(5) Investigatory powers.--For purposes of bringing any 
          civil action under this subsection, nothing in this section 
  shall prevent the attorney general of a State, or an official or agency 
  designated by a State, from exercising the powers conferred on the 
  attorney general or such official by the laws of such State to conduct 
  investigations or to administer oaths or affirmations or to compel the 
  attendance of witnesses or the production of documentary and other 
  evidence.
              ``(6) Effect on state court proceedings.--Nothing contained 
          in this subsection shall be construed to prohibit an authorized 
          State official from proceeding in State court on the basis of 
          an alleged violation of any general civil or criminal statute 
          of such State.
              ``(7) Limitation.--Whenever the Commission has instituted a 
          civil action for violation of regulations prescribed under this 
          section, no State may, during the pendency of such action 
          instituted by the Commission, subsequently institute a civil 
          action against any defendant named in the Commission's 
          complaint for any violation as alleged in the Commission's 
          complaint.
              ``(8) Definition.--As used in this subsection, the term 
          `attorney general' means the chief legal officer of a State.
      ``(i) State Law Not Preempted.--Nothing in this section or in the 
  regulations prescribed under this section shall preempt any State law 
  that imposes more restrictive intrastate requirements or regulations 
  on, or which prohibits unauthorized changes in, a subscriber's 
  selection of a provider of telephone exchange service or telephone toll 
  service.''.
      (d) Report on Carriers Executing Unauthorized Changes of Telephone 
  Service.--
              (1) Report.--Not later than October 31, 1998, the Federal 
          Communications Commission shall submit to Congress a report on 
          unauthorized changes of subscribers' selections of providers of 
          telephone exchange service or telephone toll service.
              (2) Elements.--The report shall include the following:
                      (A) A list of the 10 telecommunications carriers 
                  that, during the 1-year period ending on the date of 
                  the report, were subject to the highest number of 
                  complaints of having executed unauthorized changes of 
                  subscribers from their selected providers of telephone 
                  exchange service or telephone toll service when 
                  compared with the total number of subscribers served by 
                  such carriers.
                      (B) The telecommunications carriers, if any, 
                  assessed fines under section 258(e) of the 
                  Communications Act of 1934 (as added by subsection 
                  (c)), during that period, including the amount of each 
                  such fine and whether the fine was assessed as a result 
                  of a court judgment or an order of the Commission or 
                  was secured pursuant to a consent decree.
  
  SEC. 2. REPORT ON TELEMARKETING PRACTICES.
  
      (a) In General.--The Federal Communications Commission shall issue 
  a report within 180 days after the date of enactment of this Act on the 
  telemarketing practices used by telecommunications carriers or 
  resellers or their agents or employees for the purpose of soliciting 
  changes by subscribers of their telephone exchange service or telephone 
  toll service provider.
      (b) Specific Issues.--As part of the report required under 
  subsection (a), the Commission shall include findings on--
              (1) the extent to which imposing penalties on telemarketers 
          would deter unauthorized changes in a subscriber's selection of 
          a provider of telephone exchange service or telephone toll 
          service;
              (2) the need for rules requiring third-party verification 
          of changes in a subscriber's selection of such a provider; and
              (3) whether wireless carriers should continue to be exempt 
          from the verification and retention requirements imposed by 
          section 258(a)(2)(B)(iii) of the Communications Act of 1934 (47 
          U.S.C. 258(a)(2)(B)(iii)).
      (c) Rulemaking.--If the Commission determines that particular 
  telemarketing practices are being used with the intention to mislead, 
  deceive, or confuse subscribers and that they are likely to mislead, 
  deceive, or confuse subscribers, then the Commission shall initiate a 
  rulemaking to prohibit the use of such practices within 120 days after 
  the completion of its report.
target: Amends the Communications Act of 1934 to prohibit a telecommunications carrier or a reseller of telecommunications services from submitting or executing a change in a subscriber's selection of a provider of telephone exchange service or toll service, except in accordance with this Act and Federal Communications Commission (FCC) verification procedures. 
  Requires a carrier or reseller, in verifying a subscriber's selection of a telephone exchange or toll service provider, to require the subscriber to:  (1) acknowledge the type of service to be changed by the selection; (2) affirm the intent to select the service provider; (3) affirm that the consumer is the subscriber or is authorized to make such selection for that telephone number; (4) acknowledge that such selection will result in a change of service provider; and (5) provide any other such information the FCC considers appropriate for the subscriber's protection. 
  Requires FCC selection verification procedures to:  (1) preclude the use of negative option marketing; (2) provide for verification of a change of provider in oral, written, or electronic form; and (3) require the retention of such verification in a manner and form and for such time as the FCC considers appropriate. 
  Makes the above provisions inapplicable to providers of commercial mobile service. 
  Requires a carrier or reseller selected by a subscriber to notify the subscriber in writing not more than 15 days after the change is processed by the carrier or reseller:  (1) of the subscriber's new carrier; and (2) that the subscriber may request information regarding the date of the change and the individual authorizing the change. 
  Requires the FCC to:  (1) prescribe a period not to exceed 120 days after receipt of notice of a complaint of an unauthorized change for the carrier or reseller to resolve such complaint; and (2) provide a simplified process for resolving such complaints.  Authorizes the FCC, in resolving a complaint, to award damages of:  (1) the greater amount of $500 or actual damages; or (2) three times such amount. 
  Provides penalties for violations of this Act and authorizes the FCC to collect fines and damages. 
  Treats an initiation of service as a change in a subscriber's selection for purposes of this Act. 
  Authorizes a State, when it has reason to believe that a carrier or reseller has or is engaged in a practice of changing service providers without subscriber authority, to bring an action on behalf of its residents to enjoin such changes and to recover damages.  Gives Federal courts exclusive jurisdiction over such actions.  Requires FCC notification of, and authorizes FCC intervention in, any such action. 
  Requires the FCC to report to the Congress on unauthorized changes in subscribers' providers. 
  (Sec. 2) Directs the FCC to issue a report on the telemarketing practices used by carriers or resellers to solicit changes by subscribers in their service providers.  Authorizes the FCC to initiate a rulemaking to prohibit particular practices it determines are being used with the intention to mislead, deceive, or confuse subscribers.
feat_title: To amend the Communications Act of 1934 to improve the protection of consumers against "slamming" by telecommunications carriers, and for other purposes.