[Congressional Bills 107th Congress]
[From the U.S. Government Publishing Office]
[H.R. 1697 Introduced in House (IH)]







107th CONGRESS
  1st Session
                                H. R. 1697

  To amend the Clayton Act to ensure the application of the antitrust 
      laws to local telephone monopolies; and for other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                              May 3, 2001

    Mr. Conyers (for himself, Mr. Cannon, Mr. Nadler, and Mr. Issa) 
 introduced the following bill; which was referred to the Committee on 
the Judiciary, and in addition to the Committee on Energy and Commerce, 
for a period to be subsequently determined by the Speaker, in each case 
for consideration of such provisions as fall within the jurisdiction of 
                        the committee concerned

_______________________________________________________________________

                                 A BILL


 
  To amend the Clayton Act to ensure the application of the antitrust 
      laws to local telephone monopolies; and for other purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Broadband Competition and Incentives 
Act of 2001''.

       TITLE I--PROTECTION OF BROADBAND SERVICES FROM CONTINUING 
                             MONOPOLIZATION

SEC. 101. AMENDMENT TO THE CLAYTON ACT TO INCLUDE MARKET POWER ENTRY 
              TEST.

    The Clayton Act (15 U.S.C. 15 et seq.) is amended by adding at the 
end the following:

``SEC. 28. BROADBAND TELECOMMUNICATIONS SERVICES.

    ``(a) Determination by Attorney General.--A Bell operating company 
or an affiliate of a Bell operating company may not provide interLATA 
services in any of its in-region States under the authority of any 
amendments to section 271 of the Communications Act of 1934 (47 U.S.C. 
271) enacted after April 24, 2001, unless the Attorney General of the 
United States determines that such company or such affiliate does not 
have market power in the provision of wireline telephone exchange 
service in the State involved.
    ``(b) Market Power.--For purposes of this section, a Bell operating 
company or an affiliate of a Bell operating company shall be deemed to 
have market power in the provision of wireline telephone exchange 
service in the State involved if such company or such affiliate 
provides service to more than 85 percent of the business subscribers, 
or more than 85 percent of the residential subscribers, in such State 
at the time such company or such affiliate requests that the Attorney 
General make a determination under subsection (a).
    ``(c) Definitions.--For purposes of this section:
            ``(1) Affiliate.--The term `affiliate' means a person that 
        (directly or indirectly) owns or controls, is owned or 
        controlled by, or is under common ownership or control with, 
        another person. For purposes of this paragraph, the term `own' 
        means to own an equity interest (or equivalent thereof) of more 
        than 10 percent.
            ``(2) Bell operating company.--The term `Bell operating 
        company' has the meaning given such term in section 3 of the 
        Communications Act of 1934 (47 U.S.C. 153).''.

  TITLE II--BROADBAND DEPLOYMENT INCENTIVES FOR SERVICES TO ELIGIBLE 
                RURAL COMMUNITIES AND UNDERSERVED AREAS

SEC. 201. ELIMINATION OF DISCRIMINATORY TAXES ON BROADBAND SERVICE 
              PROVIDERS.

    (a) Prohibition.--No State or political subdivision of a State may 
impose--
            (1) discriminatory taxes on broadband services; or
            (2) a tax or fee imposed on telecommunications carriers or 
        affiliates thereof, other than incumbent local exchange 
        carriers and affiliates thereof, for the use of public rights-
        of-way that is greater than the tax or fee imposed on incumbent 
        local exchange carriers or affiliates thereof for their use of 
        public rights-of-way.
    (b) Liabilities and Pending Cases.--Subsection (a) shall not affect 
liability for taxes or fees accrued and enforced before the date of the 
enactment of this Act or to ongoing litigation relating to such taxes 
or such fees.

SEC. 202. LOAN PROGRAM FOR ELIGIBLE RURAL COMMUNITIES AND FOR 
              UNDERSERVED COMMUNITIES.

    (a) Authority To Make Direct Loans and Loan Guarantees.--The 
Attorney General of the United States may make direct loans or loan 
guarantees to eligible broadband service providers in accordance with 
this section to finance the deployment of broadband services to 
eligible rural communities and to underserved areas.
    (b) Eligibility Requirements.--To be eligible to receive a loan or 
loan guarantee under this section, a broadband service provider shall 
submit to the Attorney General an application containing such 
information and assurances as the Attorney General may require by rule, 
including--
            (1) information demonstrating that such provider is capable 
        of delivering broadband service;
            (2) a description of the proposed project to deploy 
        broadband service to an eligible rural community or to an 
        underserved area where broadband service is not otherwise 
        generally available throughout such community or such area; and
            (3) an assurance that such provider will meet the standards 
        for service and area wide coverage established by the Attorney 
        General.
    (c) Terms and Conditions.--Direct loans and loan guarantees made 
under this section--
            (1) shall be made available in accordance with the 
        requirements of the Federal Credit Reform Act of 1990 (2 U.S.C. 
        661 et seq.);
            (2) in the case of direct loans and loans guaranteed, shall 
        bear interest at an annual rate of not more than 2 percent per 
        annum; and
            (3) shall be made for the longer of--
                    (A) a term of 30 years; or
                    (B) the useful life of the assets constructed, 
                reconstructed, or acquired with any part of the 
proceeds of such loan or of the loan guaranteed.
    (d) Limitations.--
            (1) Technology neutrality.--In making direct loans and loan 
        guarantees under this section, the Attorney General may not 
        take into consideration the technology proposed to be employed 
        by the applicants for such loans or such guarantees.
            (2) Security interest.--The Attorney General may take a 
        security interest in assets or revenue streams, in connection 
        with a direct loan or loan guarantee made under this section, 
        of not more than the amount sufficient to cover the assets 
        financed by such loan or such guarantee.
    (e) Authorization of Appropriations.--There is authorized to be 
appropriated to the Attorney General to carry out this section 
$3,000,000,000 for fiscal years 2002, 2003, 2004, 2005, and 2006.

SEC. 203. DEFINITIONS.

    (a) In General.--In this title:
            (1) Affiliate.--Term ``affiliate'' means a person that 
        (directly or indirectly) owns or controls, is owned or 
        controlled by, or is under common ownership or control with, 
        another person. For purposes of this paragraph, the term 
        ``own'' means to own an equity interest (or equivalent thereof) 
        of more than 10 percent.
            (2) Assessment.--The term ``assessment'' means valuation 
        for a property tax levied by a taxing State or political 
        subdivision thereof.
            (3) Assessment jurisdiction.--The term ``assessment 
        jurisdiction'' means a geographical area in a State used in 
        determining the assessed value of property for ad valorem 
        taxation.
            (4) Broadband service.--The term ``broadband service'' 
        includes, without regard to any particular transmission medium 
        or technology, high-speed, switched, broadband 
        telecommunications capable of delivering not less than 1.5 
        megabits of data per second to the user and 128,000 bits of 
        data per second from the user that enables users to originate 
        and receive high-quality voice, data, graphics, and video 
        telecommunications.
            (5) Commercial business.--The term ``commercial business'' 
        means a business, other than a broadband service provider, 
        devoted to a commercial use.
            (6) Commercial property.--The term ``commercial property'' 
        means property, other than property owned by a broadband 
        service provider, devoted to a commercial use.
            (7) Discriminatory tax.--The term ``discriminatory tax'' 
        means any tax imposed by a State or political subdivision of a 
        State on a broadband service provider that--
                    (A) uses an assessment of property owned by 
                broadband service providers at a value that has a 
                higher ratio to the true market value of the broadband 
                service provider's property than the ratio that the 
                assessed value of other commercial property in the same 
                assessment jurisdiction has to the true market value of 
                the other commercial property value;
                    (B) uses an assessment of property owned by 
                broadband service providers at a value that encompasses 
                factors other than tangible assets, such as intangible 
                assets and a going concern component, and bases the 
                assessed value of other commercial property on a local 
                assessment process of only tangible assets;
                    (C) is not generally imposed and legally 
                collectible by such State or such political subdivision 
                on commercial businesses; or
                    (D) is imposed without 180 days advance 
                notification of the imposition of such tax.
            (8) Eligible rural community.--The term ``eligible rural 
        community'' means any census tract which--
                    (A) is not within 10 miles of any incorporated or 
                unincorporated place containing more than 25,000 
                people, and
                    (B) is not within a county or county equivalent 
                which has an overall population density of more than 
                500 people per square mile of land.
            (9) Incumbent local exchange carrier.--The term ``incumbent 
        local exchange carrier'' means, with respect to an area, the 
        local exchange carrier that--
                    (A) on the date of enactment of this Act, is 
                providing telephone exchange service in such area; and
                    (B)(i) is deemed to be a member of the exchange 
                carrier association pursuant to section 69.601(b) of 
                title 47 of the Code of Federal Regulations, as in 
                effect on such date; or
                    (ii) on or after such date, is a successor or 
                assign of a member described in clause (i).
            (10) Tax.--The term ``tax'' has the meaning given such term 
        in section 1104 of the Internet Tax Freedom Act (47 U.S.C. 151 
        note).
            (11) Telecommunications carrier.--The term 
        ``telecommunications carrier'' has the meaning given such term 
        by section 3(44) of the Communications Act of 1934 (47 U.S.C. 
        153 (44)), but--
                    (A) includes all members of an affiliated group of 
                which a telecommunications carrier is a member, and
                    (B) does not include a commercial mobile service 
                carrier.
            (12) Underserved area.--The term ``underserved area'' means 
        any census tract which is located in--
                    (A) an empowerment zone or enterprise community 
                designated under section 1391 of the Internal Revenue 
                Code of 1986;
                    (B) the District of Columbia Enterprise Zone 
                established under section 1400 of such Code;
                    (C) a renewal community designated under section 
                1400E of such Code; or
                    (D) a low-income community designated under section 
                45D of such Code.
    (b) Designation of Census Tracts.--The Secretary of the Treasury 
shall, not later than 90 days after the date of the enactment of this 
Act, designate and publish those census tracts meeting the criteria 
described in paragraphs (8) and (12) of subsection (a).
                                 <all>