From the U.S. Code Online via GPO Access
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[Laws in effect as of January 7, 2003]
[Document not affected by Public Laws enacted between
  January 7, 2003 and December 19, 2003]
[CITE: 47USC151]

 
          TITLE 47--TELEGRAPHS, TELEPHONES, AND RADIOTELEGRAPHS
 
                 CHAPTER 5--WIRE OR RADIO COMMUNICATION
 
                    SUBCHAPTER I--GENERAL PROVISIONS
 
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.

(June 19, 1934, ch. 652, title I, Sec. 1, 48 Stat. 1064; May 20, 1937, 
ch. 229, Sec. 1, 50 Stat. 189; Pub. L. 104-104, title I, Sec. 104, Feb. 
8, 1996, 110 Stat. 86.)

                       References in Text

    This chapter, referred to in text, was in the original ``this Act'', 
meaning act June 19, 1934, ch. 652, 48 Stat. 1064, as amended, known as 
the Communications Act of 1934, which is classified principally to this 
chapter. For complete classification of this Act to the Code, see 
section 609 of this title and Tables.


                               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.

                        Executive Order No. 10460

    Ex. Ord. No. 10460, eff. June 18, 1953, 18 F.R. 3513, as amended by 
Ex. Ord. No. 10773, eff. July 1, 1958, 23 F.R. 5061; Ex. Ord. No. 10782, 
eff. Sept. 8, 1958, 23 F.R. 6971, which related to the performance of 
telecommunication functions by Director of the Office of Civil and 
Defense Mobilization, was revoked by section 4 of Ex. Ord. No. 10995, 
eff. Feb. 16, 1962, 27 F.R. 1519.

                  Section Referred to in Other Sections

    This section is referred to in sections 225, 309, 332, 607, 925 of 
this title.