[Congressional Record Volume 150, Number 56 (Wednesday, April 28, 2004)]
[Senate]
[Pages S4605-S4621]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                           TEXT OF AMENDMENTS

  SA 3052. Mrs. FEINSTEIN submitted an amendment intended to be 
proposed to amendment SA 3048 proposed by Mr. McCain to the bill S. 
150, to make permanent the moratorium on taxes on Internet access and 
multiple and discriminatory taxes on electronic commerce imposed by the 
Internet Tax Freedom Act; which was ordered to lie on the table; as 
follows:

       On page 5, line 2, strike ``2006.'' and insert ``2007.''.
       On page 5, line 20, strike ``2005.'' and insert ``2007.''.
                                 ______
                                 
  SA 3053. Mr. ROCKEFELLER submitted an amendment intended to be 
proposed to amendment SA 3048 proposed by Mr. McCain to the bill S. 
150, to make permanent the moratorium on taxes on Internet access and 
multiple and discriminatory taxes on electronic commerce imposed by the 
Internet Tax Freedom Act; which was ordered to lie on the table; as 
follows:

       At the appropriate place, insert the following:

     SEC.   . BROADBAND INTERNET ACCESS TAX CREDIT.

       (a) In General.--Subpart E of part IV of chapter 1 of the 
     Internal Revenue Code of 1986 (relating to rules for 
     computing investment credit) is amended by inserting after 
     section 48 the following:

     ``SEC. 48A. BROADBAND INTERNET ACCESS CREDIT.

       ``(a) General Rule.--For purposes of section 46, the 
     broadband credit for any taxable year is the sum of--
       ``(1) the current generation broadband credit, plus
       ``(2) the next generation broadband credit.
       ``(b) Current Generation Broadband Credit; Next Generation 
     Broadband Credit.--For purposes of this section--
       ``(1) Current Generation Broadband Credit.--The current 
     generation broadband credit for any taxable year is equal to 
     10 percent of the qualified expenditures incurred with 
     respect to qualified equipment providing current generation 
     broadband services to qualified subscribers and taken into 
     account with respect to such taxable year.
       ``(2) Next generation broadband credit.--The next 
     generation broadband credit for any taxable year is equal to 
     20 percent of the qualified expenditures incurred with 
     respect to qualified equipment providing next generation 
     broadband services to qualified subscribers and taken into 
     account with respect to such taxable year.
       ``(c) When Expenditures Taken Into Account.--For purposes 
     of this section--
       ``(1) In general.--Qualified expenditures with respect to 
     qualified equipment shall be taken into account with respect 
     to the first taxable year in which--
       ``(A) current generation broadband services are provided 
     through such equipment to qualified subscribers, or
       ``(B) next generation broadband services are provided 
     through such equipment to qualified subscribers.
       ``(2) Limitation.--
       ``(A) In general.--Qualified expenditures shall be taken 
     into account under paragraph (1) only with respect to 
     qualified equipment--
       ``(i) the original use of which commences with the 
     taxpayer, and
       ``(ii) which is placed in service, after December 31, 2003.
       ``(B) Sale-leasebacks.--For purposes of subparagraph (A), 
     if property--
       ``(i) is originally placed in service after December 31, 
     2003, by any person, and
       ``(ii) sold and leased back by such person within 3 months 
     after the date such property was originally placed in 
     service, such property shall be treated as originally placed 
     in service not earlier than the date on which such property 
     is used under the leaseback referred to in clause (ii).
       ``(d) Special Allocation Rules.--
       ``(1) Current generation broadband services.--For purposes 
     of determining the current generation broadband credit under 
     subsection (a)(1) with respect to qualified equipment through 
     which current generation broadband services are provided, if 
     the qualified equipment is capable of serving both qualified 
     subscribers and other subscribers, the qualified expenditures 
     shall be multiplied by a fraction--
       ``(A) the numerator of which is the sum of the number of 
     potential qualified subscribers within the rural areas and 
     the underserved areas which the equipment is capable of 
     serving with current generation broadband services, and
       ``(B) the denominator of which is the total potential 
     subscriber population of the area which the equipment is 
     capable of serving with current generation broadband 
     services.
       ``(2) Next generation broadband services.--For purposes of 
     determining the next generation broadband credit under 
     subsection (a)(2) with respect to qualified equipment through 
     which next generation broadband services are provided, if the 
     qualified equipment is capable of serving both qualified 
     subscribers and other subscribers, the qualified expenditures 
     shall be multiplied by a fraction--
       ``(A) the numerator of which is the sum of--
       ``(i) the number of potential qualified subscribers within 
     the rural areas and underserved areas, plus
       ``(ii) the number of potential qualified subscribers within 
     the area consisting only of residential subscribers not 
     described in clause (i),

     which the equipment is capable of serving with next 
     generation broadband services, and
       ``(B) the denominator of which is the total potential 
     subscriber population of the area which the equipment is 
     capable of serving with next generation broadband services.
       ``(e) Definitions.--For purposes of this section--
       ``(1) Antenna.--The term `antenna' means any device used to 
     transmit or receive signals through the electromagnetic 
     spectrum, including satellite equipment.
       ``(2) Cable operator.--The term `cable operator' has the 
     meaning given such term by section 602(5) of the 
     Communications Act of 1934 (47 U.S.C. 522(5)).
       ``(3) Commercial mobile service carrier.--The term 
     `commercial mobile service carrier' means any person 
     authorized to provide commercial mobile radio service as 
     defined in section 20.3 of title 47, Code of Federal 
     Regulations.
       ``(4) Current generation broadband service.--The term 
     `current generation broadband service' means the transmission 
     of signals at a rate of at least 1,000,000 bits per second to 
     the subscriber and at least 128,000 bits per second from the 
     subscriber.
       ``(5) Multiplexing or demultiplexing.--The term 
     `multiplexing' means the transmission of 2 or more signals 
     over a single channel, and the term `demultiplexing' means 
     the separation of 2 or more signals previously combined by 
     compatible multiplexing equipment.
       ``(6) Next generation broadband service.--The term `next 
     generation broadband service' means the transmission of 
     signals at a rate of at least 22,000,000 bits per second to 
     the subscriber (or its equivalent when the data rate is 
     measured before being compressed for transmission) and at 
     least 5,000,000 bits per second from the subscriber (or its 
     equivalent as so measured).
       ``(7) Nonresidential subscriber.--The term `nonresidential 
     subscriber' means any

[[Page S4606]]

     person who purchases broadband services which are delivered 
     to the permanent place of business of such person.
       ``(8) Open video system operator.--The term `open video 
     system operator' means any person authorized to provide 
     service under section 653 of the Communications Act of 1934 
     (47 U.S.C. 573).
       ``(9) Other wireless carrier.--The term `other wireless 
     carrier' means any person (other than a telecommunications 
     carrier, commercial mobile service carrier, cable operator, 
     open video system operator, or satellite carrier) providing 
     current generation broadband services or next generation 
     broadband service to subscribers through the wireless 
     transmission of energy through radio or light waves.
       ``(10) Packet switching.--The term `packet switching' means 
     controlling or routing the path of a digitized transmission 
     signal which is assembled into packets or cells.
       ``(11) Provider.--The term `provider' means, with respect 
     to any qualified equipment any--
       ``(A) cable operator,
       ``(B) commercial mobile service carrier,
       ``(C) open video system operator,
       ``(D) satellite carrier,
       ``(E) telecommunications carrier, or
       ``(F) other wireless carrier,

     providing current generation broadband services or next 
     generation broadband services to subscribers through such 
     qualified equipment.
       ``(12) Provision of services.--A provider shall be treated 
     as providing services to 1 or more subscribers if--
       ``(A) such a subscriber has been passed by the provider's 
     equipment and can be connected to such equipment for a 
     standard connection fee,
       ``(B) the provider is physically able to deliver current 
     generation broadband services or next generation broadband 
     services, as applicable, to such a subscriber without making 
     more than an insignificant investment with respect to such 
     subscriber,
       ``(C) the provider has made reasonable efforts to make such 
     subscribers aware of the availability of such services,
       ``(D) such services have been purchased by 1 or more such 
     subscribers, and
       ``(E) such services are made available to such subscribers 
     at average prices comparable to those at which the provider 
     makes available similar services in any areas in which the 
     provider makes available such services.
       ``(13) Qualified equipment.--
       ``(A) In general.--The term `qualified equipment' means 
     equipment which provides current generation broadband 
     services or next generation broadband services--
       ``(i) at least a majority of the time during periods of 
     maximum demand to each subscriber who is utilizing such 
     services, and
       ``(ii) in a manner substantially the same as such services 
     are provided by the provider to subscribers through 
     equipment with respect to which no credit is allowed under 
     subsection (a)(1).
       ``(B) Only certain investment taken into account.--Except 
     as provided in subparagraph (C) or (D), equipment shall be 
     taken into account under subparagraph (A) only to the extent 
     it--
       ``(i) extends from the last point of switching to the 
     outside of the unit, building, dwelling, or office owned or 
     leased by a subscriber in the case of a telecommunications 
     carrier,
       ``(ii) extends from the customer side of the mobile 
     telephone switching office to a transmission/receive antenna 
     (including such antenna) owned or leased by a subscriber in 
     the case of a commercial mobile service carrier,
       ``(iii) extends from the customer side of the headend to 
     the outside of the unit, building, dwelling, or office owned 
     or leased by a subscriber in the case of a cable operator or 
     open video system operator, or
       ``(iv) extends from a transmission/receive antenna 
     (including such antenna) which transmits and receives signals 
     to or from multiple subscribers, to a transmission/receive 
     antenna (including such antenna) on the outside of the unit, 
     building, dwelling, or office owned or leased by a subscriber 
     in the case of a satellite carrier or other wireless carrier, 
     unless such other wireless carrier is also a 
     telecommunications carrier.
       ``(C) Packet switching equipment.--Packet switching 
     equipment, regardless of location, shall be taken into 
     account under subparagraph (A) only if it is deployed in 
     connection with equipment described in subparagraph (B) and 
     is uniquely designed to perform the function of packet 
     switching for current generation broadband services or next 
     generation broadband services, but only if such packet 
     switching is the last in a series of such functions performed 
     in the transmission of a signal to a subscriber or the first 
     in a series of such functions performed in the transmission 
     of a signal from a subscriber.
       ``(D) Multiplexing and demultiplexing equipment.--
     Multiplexing and demultiplexing equipment shall be taken into 
     account under subparagraph (A) only to the extent it is 
     deployed in connection with equipment described in 
     subparagraph (B) and is uniquely designed to perform the 
     function of multiplexing and demultiplexing packets or cells 
     of data and making associated application adaptions, but only 
     if such multiplexing or demultiplexing equipment is located 
     between packet switching equipment described in subparagraph 
     (C) and the subscriber's premises.
       ``(14) Qualified expenditure.--
       ``(A) In general.--The term `qualified expenditure' means 
     any amount--
       ``(i) chargeable to capital account with respect to the 
     purchase and installation of qualified equipment (including 
     any upgrades thereto) for which depreciation is allowable 
     under section 168, and
       ``(ii) incurred after December 31, 2003, and before January 
     1, 2008.
       ``(B) Certain satellite expenditures excluded.--Such term 
     shall not include any expenditure with respect to the 
     launching of any satellite equipment.
       ``(C) Leased equipment.--Such term shall include so much of 
     the purchase price paid by the lessor of equipment subject to 
     a lease described in subsection (c)(2)(B) as is attributable 
     to expenditures incurred by the lessee which would otherwise 
     be described in subparagraph (A).
       ``(15) Qualified subscriber.--The term `qualified 
     subscriber' means--
       ``(A) with respect to the provision of current generation 
     broadband services--
       ``(i) any nonresidential subscriber maintaining a permanent 
     place of business in a rural area, or underserved area, or
       ``(ii) any residential subscriber residing in a dwelling 
     located in a rural area or underserved area which is not a 
     saturated market, and
       ``(B) with respect to the provision of next generation 
     broadband services--
       ``(i) any nonresidential subscriber maintaining a permanent 
     place of business in a rural area, or underserved area, or
       ``(ii) any residential subscriber.
       ``(16) Residential subscriber.--The term `residential 
     subscriber' means any individual who purchases broadband 
     services which are delivered to such individual's dwelling.
       ``(17) Rural area.--The term `rural area' means any census 
     tract which--
       ``(A) is not within 10 miles of any incorporated or census 
     designated 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.
       ``(18) Rural subscriber.--The term `rural subscriber' means 
     any residential subscriber residing in a dwelling located in 
     a rural area or nonresidential subscriber maintaining a 
     permanent place of business located in a rural area.
       ``(19) Satellite carrier.--The terns `satellite carrier' 
     means any person using the facilities of a satellite or 
     satellite service licensed by the Federal Communications 
     Commission and operating in the Fixed-Satellite Service under 
     part 25 of title 47 of the Code of Federal Regulations or the 
     Direct Broadcast Satellite Service under part 100 of title 47 
     of such Code to establish and operate a channel of 
     communications for distribution of signals, and owning or 
     leasing a capacity or service on a satellite in order to 
     provide such distribution.
       ``(20) Saturated market.--The term `saturated market' means 
     any census tract in which; as of the date of the enactment of 
     this section--
       ``(A) current generation broadband services have been 
     provided by a, single provider to 85 percent or more of the 
     total number of potential residential subscribers residing in 
     dwellings located within such census tract, and
       ``(B) such services can be utilized--
       ``(i) at least a majority of the time during periods of 
     maximum demand by each such subscriber who is utilizing such 
     services, and
       ``(ii) in a manner substantially the same as such services 
     are provided by the provider to subscribers through equipment 
     with respect to which no credit is allowed under subsection 
     (a)(1).
       ``(21) Subscriber.--The term `subscriber' means any person 
     who purchases current generation broadband services or next 
     generation broadband services.
       ``(22) 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 any commercial mobile service 
     carrier.
       ``(23) Total potential subscriber population.--The term 
     `total potential subscriber population' means, with respect 
     to any area and based on the most recent census data, the 
     total number of potential residential subscribers residing in 
     dwellings located in such area and potential nonresidential 
     subscribers maintaining permanent places of business located 
     in such area.
       ``(24) 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,
       ``(B) the District of Columbia. Enterprise Zone established 
     under section 1400,
       ``(C) a renewal community designated under section 1400E, 
     or
       ``(D) a low-income community designated under section 45D.
       ``(25) Underserved subscriber.-- The term `underserved 
     subscriber' means any residential subscriber residing in a 
     dwelling located in an underserved area or nonresidential 
     subscriber maintaining a permanent place of business located 
     in an underserved area.''.
       (b) Credit To Be Part of Investment Credit.--Section 46 of 
     the Internal Revenue Code of 1986 (relating to the amount of 
     investment credit) is amended by striking

[[Page S4607]]

     ``and'' at the end of paragraph (2), by striking the period 
     at the end of paragraph (3) and inserting ``, and'', and by 
     adding at the end the following:
       ``(4) the broadband Internet access credit.''
       (c) Special Rule for Mutual or Cooperative Telephone 
     Companies.--Section 501(c)(12)(B) of the Internal Revenue 
     Code of 1986 (relating to list of exempt organizations) is 
     amended by striking ``or'' at the end of clause (iii), by 
     striking the period at the end of clause (iv) and inserting 
     ``, or'', and by adding at the end the following new 
     clause:
       ``(v) from the sale of property subject to a lease 
     described in section 48A(c)(2)(B), but only to the extent 
     such income does not in any year exceed amount equal to the 
     credit for qualified expenditures which would be determined 
     under section 48A for such year if the mutual or cooperative 
     telephone company was not exempt from taxation and was 
     treated as the owner of the property subject to such 
     lease.''.
       (d) Conforming Amendment.--The table of sections for 
     subpart E of part IV of subchapter A of chapter 1 of the 
     Internal Revenue Code of 1986 is amended by inserting after 
     the item relating to section 48 the following:

``Sec. 48A. Broadband internet access credit.''.

       (e) Designation of Census Tracts.--
       (1) In general.--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 (17) and (24) of section 
     48A(e) of the Internal Revenue Code of 1986 (as added by this 
     section). In making such designations, the Secretary of the 
     Treasury shall consult with such other departments and 
     agencies as the Secretary determines appropriate.
       (2) Saturated market.--
       (A) In general.--For purposes of designating and publishing 
     those census tracts meeting the criteria described in 
     subsection (e)(20) of such section 48A--
       (i) the Secretary of the Treasury shall prescribe not later 
     than 30 days after the date of the enactment of this Act the 
     form upon which any provider which takes the position that it 
     meets such criteria with respect to any census tract shall 
     submit a list of such census tracts (and any other 
     information required by the Secretary) not later, than 60 
     days after the date of the publication of such form, and
       (ii) the Secretary of the Treasury shall publish an 
     aggregate list of such census tracts submitted and the 
     applicable providers not later than 30 days after the last 
     date such submissions are allowed under clause (i).
       (B) No subsequent lists required.--The Secretary of the 
     Treasury shall not be required to publish any list of census 
     tracts meeting such criteria subsequent to the list described 
     in subparagraph (A)(ii).
       (C) Authority to disregard false submissions.--In addition 
     to imposing any other applicable penalties, the Secretary of 
     the Treasury shall have the discretion to disregard any form 
     described in subparagraph (A)(i) on which a provider 
     knowingly submitted false information.
       (f) Other Regulatory Matters.--
       (1) Prohibition.--No Federal or State agency or, 
     instrumentality shall adopt regulations or rate making 
     procedures that would have the effect of confiscating any 
     credit or portion thereof allowed under section 48A of the 
     Internal Revenue Code of 1986 (as added by this section) or 
     otherwise subverting the purpose of this section.
       (2) Treasury regulatory authority.--It is the intent of 
     Congress in providing the broadband Internet access credit 
     under section 48A of the Internal Revenue Code of 1986 (as 
     added by this section) to provide incentives for the 
     purchase, installation, and connection of equipment and 
     facilities offering expanded broadband access to the Internet 
     for users in certain low income and rural areas of the United 
     States, as well as to residential users nationwide, in a 
     manner that maintains competitive neutrality among the 
     various classes of providers of broadband services. 
     Accordingly, the Secretary of the Treasury shall prescribe 
     such regulations as may be necessary or appropriate to carry 
     out the purposes of section 48A of such Code, including--
       (A) regulations to determine how and when a taxpayer that 
     incurs qualified expenditures satisfies the requirements of 
     section 48A of such Code to provide broadband services, and 
     (B) regulations describing the information, records, and data 
     taxpayers are required to provide the Secretary to 
     substantiate compliance with the requirements of section 48A 
     of such Code.
       (g) Effective Date.--The amendments made by this section 
     shall apply to expenditures incurred after December 31, 2003.
                                 ______
                                 
  SA 3054. Mr. ROCKEFELLER submitted an amendment intended to be 
proposed to amendment SA 3048 proposed by Mr. McCain to the bill S. 
150, to make permanent the moratorium on taxes on Internet access and 
multiple and discriminatory taxes on electronic commerce imposed by the 
Internet Tax Freedom Act; which was ordered to lie on the table; as 
follows:

       At the end add the following:

                  TITLE     --PHONE BILL FAIRNESS ACT.

     SECTION--01. SHORT TITLE.

       This title may be cited as the ``Phone Bill Fairness Act''.

     SEC.--02. FINDINGS; PURPOSE.

       (a) Findings.--Congress makes the following findings:
       (1) Customer bills for telecommunications services are 
     unreasonably complicated, and many Americans are unable to 
     understand the nature of services provided to them and the 
     charges for which they are responsible.
       (2) One of the purposes of the Telecommunications Act of 
     1996 (Public Law 104-104) was to unleash competitive and 
     market forces for telecommunications services.
       (3) Unless customers can understand their 
     telecommunications bills they cannot take advantage of the 
     newly competitive market for telecommunications services.
       (4) Confusing telecommunications bills allow a small 
     minority of providers of telecommunications services to 
     commit fraud more easily. The best defense against 
     telecommunications fraud is a well informed consumer. 
     Consumers cannot be well informed when their 
     telecommunications bills are incomprehensible.
       (5) Certain providers of telecommunications services have 
     established new, specific charges on customer bills commonly 
     known as ``line-item charges''.
       (6) These line-item charges have proliferated and are often 
     described with inaccurate and confusing names.
       (7) These line-item charges have generated significant 
     confusion among customers regarding the nature and scope of 
     universal service and of the fees associated with universal 
     service.
       (8) The National Association of Regulatory Utility 
     Commissioners adopted a resolution in February 1998 
     supporting action by the Federal Communications Commission to 
     require interstate telecommunications carriers to provide 
     accurate customer notice regarding the implementation and 
     purpose of end-user charges for telecommunications services.
       (b) Purpose.--It is the purpose of this Act to require the 
     Federal Communications Commission and the Federal Trade 
     Commission to protect and empower consumers of 
     telecommunications services by assuring that 
     telecommunications bills, including line-item charges, issued 
     by telecommunications carriers nationwide are both accurate 
     and comprehensible.

     SEC.--03. INVESTIGATION OF TELECOMMUNICATIONS CARRIER BILLING 
                   PRACTICES.

       (a) Investigation.--
       (1) Requirement.--The Federal Communications Commission and 
     the Federal Trade Commission shall jointly conduct an 
     investigation of the billing practices of telecommunications 
     carriers.
       (2) Purpose.--The purpose of the investigation is to 
     determine whether the bills sent by telecommunications 
     carriers to their customers accurately assess and correctly 
     characterize the services received and fees charged for such 
     services, including any fees imposed as line-item charges.
       (b) Determinations.--In carrying out the investigation 
     under subsection (a), the Federal Communications Commission 
     and the Federal Trade Commission shall determine the 
     following:
       (1) The prevalence of incomprehensible or confusing 
     telecommunications bills.
       (2) The most frequent causes for confusion on 
     telecommunications bills.
       (3) Whether or not any best practices exist, which, if 
     utilized as an industry standard, would reduce confusion and 
     improve comprehension of telecommunications bills.
       (4) Whether or not telecommunications bills that impose 
     fees through line-item charges characterize correctly the 
     nature and basis of such fees, including, in particular, 
     whether or not such fees are required by the Federal 
     Government or State governments.
       (c) Review of Records.--
       (1) Authority.--For purposes of the investigation under 
     subsection (a), the Federal Communications Commission and the 
     Federal Trade Commission may obtain from any 
     telecommunications carrier any record of such carrier that is 
     relevant to the investigation, including any record 
     supporting such carrier's basis for setting fee levels or 
     percentages.
       (2) Use.--The Federal Communications Commission and the 
     Federal Trade Commission may use records obtained under this 
     subsection only for purposes of the investigation.
       (d) Disciplinary Actions.--
       (1) In general.--If the Federal Communications Commission 
     or the Federal Trade Commission determines as a result of the 
     investigation under subsection (a) that the bills sent by a 
     telecommunications carrier to its customers do not accurately 
     assess or correctly characterize any service or fee contained 
     in such bills, the Federal Communications Commission or the 
     Federal Trade Commission, as the case may be, may take such 
     action against such carrier as such Commission is authorized 
     to take under law.
       (2) Characterization of fees.--If the Federal 
     Communications Commission or the Federal Trade Commission 
     determines as a result of the investigation under subsection 
     (a) that a telecommunications carrier has characterized a fee 
     on bills sent to its customers as mandated or otherwise 
     required by the Federal Government or a State and that such 
     characterization is incorrect, the Federal Communications 
     Commission or the Federal Trade Commission, as the case may

[[Page S4608]]

     be, may require the carrier to discontinue such 
     characterization.
       (3) Additional actions.--If the Federal Communications 
     Commission or the Federal Trade Commission determines that 
     such Commission does not have authority under law to take 
     actions under paragraph (1) that would be appropriate in 
     light of a determination described in paragraph (1), the 
     Federal Communications Commission or the Federal Trade 
     Commission, as the case may be, shall notify Congress of the 
     determination under this paragraph in the report under 
     subsection (e).
       (e) Report.--Not later than one year after the date of the 
     enactment of this Act, the Federal Communications Commission 
     and the Federal Trade Commissions shall jointly submit to 
     Congress a report on the results of the investigation under 
     subsection (a). The report shall include the determination, 
     if any, of either Commission under subsection (d)(3) and any 
     recommendations for further legislative action that such 
     Commissions consider appropriate.

     SEC. _04. TREATMENT OF MISLEADING TELECOMMUNICATIONS BILLS 
                   AND TELECOMMUNICATIONS RATE PLANS.

       (a) Federal Trade Commission.--The Federal Trade Commission 
     shall treat any telecommunications billing practice or 
     telecommunications rate plan that the Commission determines 
     to be intentionally misleading as an unfair business practice 
     under the Federal Trade Commission Act (15 U.S.C. 41 et 
     seq.).
       (b) Federal Communications Commission.--The Federal 
     Communications Commissions shall, upon finding that any 
     holder of a license under the Commission has repeatedly and 
     intentionally engaged in a telephone billing practice, or has 
     repeatedly and intentionally utilized a telephone rate plan, 
     that is misleading, treat such holder as acting against the 
     public interest for purposes of the Communications Act of 
     1934 (47 U.S.C. 151 et seq.).

     SEC. _05. REQUIREMENTS FOR ALL BILLS FOR TELECOMMUNICATIONS 
                   SERVICES.

       (a) Average Per Minute Rate Calculation.--Each 
     telecommunications carrier shall display on the first page of 
     each customer bill for telecommunications services the 
     average per-minute charge of telecommunications services of 
     such customer for the billing period covered by such bill.
       (b) Calling Patterns.--Each telecommunications carrier 
     shall display on the first page of each customer bill for 
     telecommunications services the percentage of the total 
     number of telephone calls of such customer for the billing 
     period covered by such bill as follows:
       (1) That began on a weekday.
       (2) That began on a weekend.
       (3) That began from 8 a.m. to 8 p.m.
       (4) That began from 8:01 p.m. to 7:59 a.m.
       (5) That were billed to a calling card.
       (c) Average Per-Minute Charge Defined.--In this section, 
     the term ``average per-minute charge'', in the case of a bill 
     of a customer for a billing period, means
       (1) the sum of--
       (A) the aggregate amount of monthly or other recurring 
     charges, if any, for telecommunications services imposed on 
     the customer by the bill for the billing period; and
       (B) the total amount of all per-minute charges for 
     telecommunications services imposed on the customer by the 
     bill for the billing period; divided by
       (2) the total number of minutes of telecommunications 
     services provided to the customer during the billing period 
     and covered by the bill.

     SEC. _06. REQUIREMENTS FOR TELECOMMUNICATIONS CARRIERS 
                   IMPOSING CERTAIN CHARGES FOR SERVICES.

       (a) Billing Requirements.--Any telecommunications carrier 
     shall include on the bills for telecommunications services 
     sent to its customers the following:
       (1) An accurate name and description of any covered charge.
       (2) The recipient or class of recipients of the monies 
     collected through each such charge.
       (3) A statement whether each such charge is required by law 
     or collected pursuant to a requirement imposed by a 
     governmental entity under its discretionary authority.
       (4) A specific explanation of any reduction in charges or 
     fees to customers, and the class of telephone customer that 
     such reduction, that are related to each such charge.
       (b) Universal Service Contributions and Receipts.--Not 
     later than January 31 each year, each telecommunications 
     carrier required to contribute to universal service during 
     the previous year under section 254(d) of the Communications 
     Act of 1934 (47 U.S.C. 254(d)) shall submit to the Federal 
     Communications Commission a report on the following:
       (1) The total contributions of the carrier to the universal 
     service fund during the previous year.
       (2) The total receipts from customers during such year 
     designed to recover contributions to the fund.
       (c) Action on Universal Service Contributions and Receipts 
     Data.--
       (1) Review.--The Federal Communications Commission shall 
     review the reports submitted to the Commission under 
     subsection (b) in order to determine whether or not the 
     amount of the contributions of a telecommunications carrier 
     to the universal service fund in any year is equal to the 
     amount of the receipts of the telecommunications carrier from 
     its customers in such year for purposes of contributions to 
     the fund.
       (2) Additional contributions.--If the Commission determines 
     as a result of a review under paragraph (1) that the amount 
     of the receipts of a telecommunications carrier from its 
     customers in a year for purposes of contributions to the 
     universal service fund exceeded the amount contributed by the 
     carrier in such year to the fund, the Commission shall have 
     the authority to require the carrier to deposit in the fund 
     an amount equal to the amount of such excess.
       (d) Covered Charges.--For purposes of subsection (a), a 
     covered charge shall include any charge on a bill for 
     telecommunications services that is separate from a per-
     minute rate charge, including a universal service charge, a 
     subscriber line charge, and a resubscribed interchange 
     carrier charge.

     SEC. _07. TELECOMMUNICATIONS CARRIER DEFINED.

       In this Act, the term ``telecommunications carrier'' has 
     the meaning given that term in section 3(44) of the 
     Communications Act of 1934 (47 U.S.C. 153(44)).
                                 ______
                                 
  SA 3055. Mr. ALLEN submitted an amendment intended to be proposed to 
amendment SA 3048 proposed by Mr. McCain to the bill S. 150, to make 
permanent the moratorium on taxes on Internet access and multiple and 
discriminatory taxes on electronic commerce imposed by the Internet Tax 
Freedom Act; which was ordered to lie on the table; as follows:

       On page 5, line 2, strike ``2006.'' and insert ``2005.''.
                                 ______
                                 
  SA 3056. Mr. ALLEN submitted an amendment intended to be proposed to 
amendment SA 3048 proposed by Mr. McCain to the bill S. 150, to make 
permanent the moratorium on taxes on Internet access and multiple and 
discriminatory taxes on electronic commerce imposed by the Internet Tax 
Freedom Act; which was ordered to lie on the table; as follows:

       On page 4, beginning with line 9, strike through line 20 on 
     page 5, and insert the following:

     ``SEC. 1104. GRANDFATHERING OF PRE-OCTOBER 1998 TAXES.

       ``(a) In General.--Section 1101(a) does not apply to a tax 
     on Internet access that was 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.
       ``(b) Termination.--Subsection (a) shall not apply after 
     November 1, 2006.''.
                                 ______
                                 
  SA 3057. Mr. ALLEN submitted an amendment intended to be proposed to 
amendment SA 3048 proposed by Mr. McCain to the bill S. 150, to make 
permanent the moratorium on taxes on Internet access and multiple and 
discriminatory taxes on electronic commerce imposed by the Internet Tax 
Freedom Act; which was ordered to lie on the table; as follows:

       On page 2, strike lines 1 through 6, and insert the 
     following:
       ``(a) Moratoria.--
       ``(1) Multiple or discriminatory taxes on electronic 
     commerce.--No State or political subdivision thereof may 
     impose multiple or discriminatory taxes on electronic 
     commerce.
       ``(2) Taxes on internet access.--No State or political 
     subdivision thereof may impose a tax on Internet access 
     during the period beginning November 1, 2003, and ending 
     November 1, 2007.''.
                                 ______
                                 
  SA 3058. Mr. ALLEN submitted an amendment intended to be proposed to 
amendment SA 3048 proposed by Mr. McCain to the bill S. 150, to make 
permanent the moratorium on taxes on Internet access and multiple and 
discriminatory taxes on electronic commerce imposed by the Internet Tax 
Freedom Act; which was ordered to lie on the table; as follows:

       On page 2, strike lines 1 through 7, and insert the 
     following:
       ``(a) Moratorium.--No State or political subdivision 
     thereof may impose any of the following taxes:
       ``(1) Taxes on Intenet access.
       ``(2) Multiple or discriminatory taxes on electronic 
     commerce.''.
       On page 8, between lines 9 and 10, insert the following:

     SEC. 7. RESTORATION OF ORIGINAL DEFINITION OF INTERNET ACCESS 
                   AFTER 4 YEARS.

       ``(a) In General.--
       ``(1) Paragraph (3)(D) of section 1101(d) (as redesignated 
     by section 2(b)(1) of this Act) is amended by striking the 
     second sentence and

[[Page S4609]]

     inserting ``Such term does not include telecommunications 
     services.''.
       ``(2) Paragraph (5) of section 1105 (as redesignated by 
     section 3(1) of this Act) is amended by striking the second 
     sentence and inserting ``Such term does not include 
     telecommunications services.''.
       ``(b) Effective Date.--The amendments made by subsection 
     (a) shall take effect on November 2, 2007.
       On page 8, line 10, strike ``SEC. 7.'' and insert ``SEC. 
     8.''.
       On page 8, line 11, strike ``The'' and insert ``Except as 
     provided in section 7(b), the''.
                                 ______
                                 
  SA 3059. Mr. BINGAMAN submitted an amendment intended to be proposed 
to amendment SA 3048 proposed by Mr. McCain to the bill S. 150, to make 
permanent the moratorium on taxes on Internet access and multiple and 
discriminatory taxes on electronic commerce imposed by the Internet Tax 
Freedom Act; which was ordered to lie on the table; as follows:

       On page 5, line 2, strike ``2006'' and insert ``2007''.
                                 ______
                                 
  SA 3060. Mr. CARPER submitted an amendment intended to be proposed to 
amendment SA 3048 proposed by Mr. McCain to the bill S. 150, to make 
permanent the moratorium on taxes on Internet access and multiple and 
discriminatory taxes on electronic commerce imposed by the Internet Tax 
Freedom Act; which was ordered to lie on the table; as follows:

       At the appropriate place, insert the following:

     SEC. _. INTERNET TAX PROVIDERS MUST PAY OTHER STATE TAXES 
                   THEY ARE REQUIRED TO PAY.

       Nothing in the Internet Tax Freedom Act (47 U.S.C. 151 
     note) may be construed to exempt an Internet access provider 
     (within the meaning of that Act) from liability to pay any 
     tax that is--
       (1) generally applied under the authority of State law; and
       (2) the legal liability of that Internet access provider.
                                 ______
                                 
  SA 3061. Mr. CARPER submitted an amendment intended to be proposed to 
amendment SA 3048 proposed by Mr. McCain to the bill S. 150, to make 
permanent the moratorium on taxes on Internet access and multiple and 
discriminatory taxes on electronic commerce imposed by the Internet Tax 
Freedom Act; which was ordered to lie on the table; as follows:

       On page 2, line 1, strike ``No State or political 
     subdivision thereof may'' and insert ``The Federal Government 
     and a State or political subdivision thereof may not''.
                                 ______
                                 
  SA 3062. Mr. CARPER submitted an amendment intended to be proposed to 
amendment SA 3048 proposed by Mr. McCain to the bill S. 150, to make 
permanent the moratorium on taxes on Internet access and multiple and 
discriminatory taxes on electronic commerce imposed by the Internet Tax 
Freedom Act; which was ordered to lie on the table; as follows:

       At the appropriate place, insert the following:

     SEC. __. SENSE OF THE SENATE.

       (a) Findings.--The Senate finds that the Unfunded Mandates 
     Reform Act of 1995 (P.L. 104-4) was passed--
       (1) ``to end the imposition, in the absence of full 
     consideration by Congress, of Federal mandates on State, 
     local, and tribal governments without adequate Federal 
     funding, in a manner that may displace other essential State, 
     local, and tribal governmental priorities'';
       (2) to provide ``for the development of information about 
     the nature and size of mandates in proposed legislation'';
       (3) ``to establish a point-of-order vote on the 
     consideration in the Senate and House of Representatives of 
     legislation containing significant Federal intergovernmental 
     mandates without providing adequate funding to comply with 
     such mandates'';
       (4) to require that ``Federal agencies prepare and consider 
     better estimates of the budgetary impact of regulations 
     containing Federal mandates upon State, local, and tribal 
     governments before adopting such regulations, and ensuring 
     that small governments are given special consideration in 
     that process''; and
       (5) to establish the general rule that Congress shall not 
     impose Federal mandates on State, local, and tribal 
     governments without providing adequate funding to comply with 
     such mandates.
       (b) Sense of the Senate.--It is the sense of the Senate 
     that--
       (1) the Unfunded Mandates Reform Act of 1995 constituted an 
     important pledge on the part of the Federal Government, in 
     general, and Congress, in particular, to refrain from 
     imposing Federal mandates on State, local, and tribal 
     governments without providing adequate resources to 
     compensate State, local, and tribal governments for the cost 
     of complying with such mandates;
       (2) at this time when State, local, and tribal governments 
     are struggling to cope with the worst State and local fiscal 
     crisis since World War II, it is urgently important that 
     Congress adhere to its commitments under the Unfunded 
     Mandates Reform Act of 1995; and
       (3) Congress should not pass laws mandating that States or 
     localities spend new money or forgo collecting currently 
     collected revenues, unless Congress--
       (A) has clear and precise estimates of the budgetary 
     impacts of such mandates upon States, local governments, and 
     tribal governments; and
       (B) provides adequate funding to cover the cost to States 
     and localities of complying with such mandates.
                                 ______
                                 
  SA 3063. Mr. CARPER submitted an amendment intended to be proposed to 
amendment SA 3048 proposed by Mr. McCain to the bill S. 150, to make 
permanent the moratorium on taxes on Internet access and multiple and 
discriminatory taxes on electronic commerce imposed by the Internet Tax 
Freedom Act; which was ordered to lie on the table; as follows:

       At the end of the bill, add the following:

                   TITLE II--CORPORATE SUBSIDY REFORM

     SEC. 201. SHORT TITLE.

       This title may be cited as the ``Corporate Subsidy Reform 
     Commission Act of 2004''.

     SEC. 202. FINDINGS.

       The Congress finds that--
       (1) Federal subsidies, including tax advantages, which may 
     have been enacted with a valid purpose for specific 
     industries or industry segments can--
       (A) fall subject to abuse, causing unanticipated and 
     unjustified windfalls to some industries and industry 
     segments; or
       (B) become obsolete, anticompetitive, or no longer in the 
     public interest, making such subsidies unnecessary or 
     undesired;
       (2) it is unfair to force the United States taxpayer to 
     support unnecessary subsidies, including tax advantages, that 
     do not provide a substantial public benefit or serve the 
     public interest;
       (3) the Congress has been unable to evaluate methodically 
     those Federal subsidies that are unfair and unnecessary and 
     require reform or elimination; and
       (4) a Commission to advise the Congress is essential to a 
     comprehensive review of such unfair corporate subsidies and 
     to the reform or elimination of such subsidies.

     SEC. 203. PURPOSE.

       The purpose of this title is to establish a fair and 
     deliberative process that will result in the timely 
     identification, review, and reform or elimination of 
     unnecessary and inequitable subsidies, including tax 
     advantages, provided by the Federal Government to entities or 
     industries engaged in profit-making enterprises.

     SEC. 204. DEFINITION.

       For purposes of this title, the term ``inequitable Federal 
     subsidy''--
       (1) except as provided in paragraph (2), means a payment, 
     benefit, service, or tax advantage that--
       (A) is provided by the Federal Government to any 
     corporation, partnership, joint venture, association, or 
     business trust other than--
       (i) a nonprofit organization described under section 
     501(c)(3) of the Internal Revenue Code of 1986 that is exempt 
     from taxation under section 501(a) of the Internal Revenue 
     Code of 1986; or
       (ii) a State or local government or Indian Tribe; and
       (B) provides an unfair competitive advantage or financial 
     windfall; and
       (2) does not include a payment, benefit, service, or tax 
     advantage that is awarded for the purposes of research and 
     development in the broad public interest on the basis of a 
     peer reviewed or other open, competitive, merit-based 
     procedure.

     SEC. 205. THE COMMISSION.

       (a) Establishment.--There is established an independent 
     commission to be known as the ``Corporate Subsidy Reform 
     Commission'' (hereafter in this title referred to as the 
     ``Commission'').
       (b) Duties.--The Commission shall--
       (1) examine the programs and laws of the Federal Government 
     and identify such programs and laws that provide inequitable 
     Federal subsidies;
       (2) review inequitable Federal subsidies; and
       (3) submit the report required under section 206(c) to the 
     Congress, making recommendations regarding the termination, 
     modification, or retention of inequitable Federal subsidies.
       (c) Limitations.--
       (1) Creation of new programs or taxes.--This title is not 
     intended to result in the creation of new programs or taxes. 
     The Commission established in this section shall limit its 
     activities to reviewing existing programs or laws with the 
     goal of ensuring fairness and equity in the operation and 
     application thereof.
       (2) Elimination of agencies and departments.--The 
     Commission--
       (A) shall limit its recommendations to the termination or 
     reform of payments, benefits, services, or tax advantages; 
     and
       (B) shall not recommend the termination of any Federal 
     agency or department.
       (d) Advisory Committee.--The Commission shall be considered 
     an advisory committee within the meaning of that term in the 
     Federal Advisory Committee Act (5 U.S.C. App.).
       (e) Appointment.--

[[Page S4610]]

       (1) Members.--The members of the Commission--
       (A) shall be appointed for the life of the Commission; and
       (B) shall be composed of 8 members, of whom--
       (i) 2 shall be appointed by the Speaker of the House of 
     Representatives;
       (ii) 2 shall be appointed by the minority leader of the 
     House of Representatives;
       (iii) 2 shall be appointed by the majority leader of the 
     Senate, one of whom shall be designated by the majority 
     leader to serve as a co-chair; and
       (iv) 2 shall be appointed by the minority leader of the 
     Senate, one of whom shall be designated by the minority 
     leader to serve as a co-chair.
       (2) Consultation required.--The Speaker of the House of 
     Representatives, the minority leader of the House of 
     Representatives, the majority leader of the Senate, and the 
     minority leader of the Senate shall consult among themselves 
     prior to the appointment of the members of the Commission in 
     order to achieve, to the maximum extent possible, fair and 
     equitable representation of various points of view with 
     respect to the matters to be studied by the Commission under 
     subsection (b).
       (3) Background.--The members shall represent a broad array 
     of expertise covering, to the extent practical, all subject 
     matter, programs, and laws the Commission is likely to 
     review.
       (f) Meetings.--
       (1) Initial meeting.--No later than April 1, 2004, the 
     Commission shall conduct its first meeting.
       (2) Open meetings.--Each meeting of the Commission shall be 
     open to the public, except that in cases in which classified 
     information, trade secrets, or personnel matters are 
     discussed, the co-chairs may close the meeting. All 
     proceedings, information, and deliberations of the Commission 
     shall be available, upon request, to the Chairman and ranking 
     minority member of the relevant Committee of the Congress 
     having jurisdiction to report legislation regarding the 
     subject matter thereof.
       (g) Vacancies.--A vacancy on the Commission shall be filled 
     in the same manner as the original appointment.
       (h) Pay and Travel Expenses.--
       (1) Pay.--Notwithstanding section 7 of the Federal Advisory 
     Committee Act (5 App. U.S.C.), each member of the Commission, 
     other than the co-chairs, shall be paid at a rate equal to 
     the daily equivalent of the minimum annual rate of basic pay 
     for level IV of the Executive Schedule under section 5315 of 
     title 5, United States Code, for each day (including travel 
     time) during which the member is engaged in the actual 
     performance of duties vested in the Commission.
       (2) Chairmen.--Notwithstanding section 7 of the Federal 
     Advisory Committee Act (5 App. U.S.C.), the co-chairs shall 
     be paid for each day referred to in paragraph (1) at a rate 
     equal to the daily payment of the minimum annual rate of 
     basic pay payable for level III of the Executive Schedule 
     under section 5314 of title 5, United States Code.
       (3) Travel expenses.--Members of the Commission shall 
     receive travel expenses, including per diem in lieu of 
     subsistence, in accordance with section 5702 and 5703 of 
     title 5, United States Code.
       (i) Director of Staff.--
       (1) Qualifications.--The co-chairs shall appoint as 
     Director an individual who has not, during the 12 months 
     preceding the date of such appointment, served in any of the 
     entities or industries that the Commission intends to review.
       (2) Pay.--Notwithstanding section 7 of the Federal Advisory 
     Committee Act (5 App. U.S.C.), the Director shall be paid at 
     the rate of basic pay payable for level IV of the Executive 
     Schedule under section 5315 of title 5, United States Code.
       (3) Reports.--The Director shall submit periodic reports on 
     administrative and personnel matters to the co-chairs of the 
     Commission and the Chairman and ranking minority member of 
     the Committee on Governmental Affairs of the Senate and the 
     Committee on Government Reform of the House of 
     Representatives.
       (j) Staff.--
       (1) Additional personnel.--Subject to paragraphs (2) and 
     (4), the Director, with the approval of the Commission, may 
     appoint and fix the pay of additional personnel.
       (2) Appointments.--The Director may make such appointments 
     without regard to the provisions of title 5, United States 
     Code, governing appointments in the competitive service, and 
     any personnel so appointed may be paid without regard to the 
     provisions of chapter 51 and subchapter III of chapter 53 of 
     that title relating to classification and General Schedule 
     pay rates.
       (3) Legal staff.--The Director shall appoint under 
     paragraph (2) such professional legal staff as are necessary 
     for the performance of the functions of the Commission.
       (4) Detailees.--Upon the request of the Director, the head 
     of any Federal department or agency may detail any of the 
     personnel of that department or agency to the Commission to 
     assist the Commission in accordance with an agreement entered 
     into with the Commission.
       (5) Restrictions on personnel and detailees.--The following 
     restrictions shall apply to personnel and detailees of the 
     Commission:
       (A) Personnel.--No more than one-third of the personnel 
     detailed to the Commission may be on detail from Federal 
     agencies that deal directly or indirectly with the Federal 
     subsidies the Commission intends to review.
       (B) Analysts.--No more than one-fifth of the professional 
     analysts of the Commission may be persons detailed from a 
     Federal agency that deals directly or indirectly with the 
     Federal subsidies the Commission intends to review.
       (C) Lead analyst.--No person detailed from a Federal agency 
     to the Commission may be assigned as the lead professional 
     analyst with respect to an entity or industry the Commission 
     intends to review if the person has been involved in 
     regulatory or policy-making decisions affecting any such 
     entity or industry in the 12 months preceding such 
     assignment.
       (D) Detailee.--A person may not be detailed from a Federal 
     agency to the Commission if, within 12 months before the 
     detail is to begin, that person participated personally and 
     substantially in any matter within that particular agency 
     concerning the preparation of recommendations under this 
     title.
       (E) Federal officer or employee.--No officer or employee of 
     a Federal agency may--
       (i) prepare any report concerning the effectiveness, 
     fitness, or efficiency of the performance on the staff of the 
     Commission of any person detailed from a Federal agency to 
     that staff;
       (ii) review the preparation of such report; or
       (iii) approve or disapprove such a report.
       (F) Limitation on staff size.--(i) Subject to clause (ii), 
     there may not be more than 25 persons (including any 
     detailees) on the staff at any time.
       (ii) The Commission may increase the member of its 
     personnel in excess of the limitation under clause (i), 15 
     days after submitting notification of such increase to the 
     Committee on Governmental Affairs of the Senate and the 
     Committee on Government Reform of the House of 
     Representatives.
       (G) Limitation on federal officer.--No member of a Federal 
     agency and no employee of a Federal agency may serve as a 
     member of the Commission or as a paid member of its staff.
       (6) Assistance.--
       (A) In general.--The Comptroller General of the United 
     States may provide assistance, including the detailing of 
     employees, to the Commission in accordance with an agreement 
     entered into with the Commission.
       (B) Consultation.--The Commission and the Comptroller 
     General of the United States shall consult with the Committee 
     on Governmental Affairs of the Senate and the Committee on 
     Government Reform of the House of Representatives on the 
     agreement referred to under subparagraph (A) before entering 
     into such agreement.
       (k) Other Authority.--
       (1) Experts and consultants.--The Commission may procure by 
     contract, to the extent funds are available, the temporary or 
     intermittent services of experts or consultants pursuant to 
     section 3109 of title 5, United States Code.
       (2) Leasing.--The Commission may lease space and acquire 
     personal property to the extent that funds are available.
       (l) Funding.--There is authorized to be appropriated to the 
     Commission $4,000,000 to carry out its duties under this 
     title.
       (m) Termination.--The Commission shall terminate on January 
     1, 2006.

     SEC. 206. PROCEDURE FOR MAKING RECOMMENDATIONS TO TERMINATE 
                   CORPORATE SUBSIDIES.

       (a) Agency Plan.--
       (1) In general.--The head of each Federal department or 
     agency shall include in the documents submitted in support of 
     the budget of the agency for fiscal year 2005 a list 
     identifying all programs and laws administered by that 
     department or agency that the head of the department or 
     agency determines provide inequitable Federal subsidies.
       (2) Contents.--Such list shall include--
       (A) a detailed description of each program or law in 
     question;
       (B) a statement identifying and detailing the extent to 
     which each payment, benefit, service, or tax advantage under 
     such program or law is an inequitable Federal subsidy;
       (C) a statement summarizing the legislative history and 
     purpose of such payment, benefit, service, or tax advantage, 
     and the laws or policies directly or indirectly giving rise 
     to the need for such programs or law; and
       (D) a recommendation to the Commission regarding the 
     termination, modification, or retention of each inequitable 
     Federal subsidy identified in the list.
       (b) Review by the Commission.--
       (1) In general.--At any time after the submission of the 
     budget documents to the Congress, the Commission shall 
     conduct public hearings on the termination, modification, or 
     retention of inequitable Federal subsidies, including the 
     recommendations included in the lists required under 
     subsection (a).
       (2) Testimony under oath.--All testimony before the 
     Commission at a public hearing conducted under this paragraph 
     shall be presented under oath.
       (c) Report and Recommendations of Commission.--
       (1) Report to congress.--
       (A) Requirement.--No later than March 31, 2005, the 
     Commission shall submit a report to the Congress containing 
     the Commission's findings and recommendations for 
     termination, modification, or retention of each of the 
     inequitable Federal subsidies reviewed by the Commission.

[[Page S4611]]

       (B) Contents.--Such findings and recommendations shall 
     specify--
       (i) all actions, circumstances, and considerations relating 
     to or bearing upon the recommendations; and
       (ii) to the maximum extent practicable, the estimated 
     effect of the recommendations upon the policies, laws, and 
     programs directly or indirectly affected by the 
     recommendations.
       (C) Supermajority requirement.--The Commission may not 
     include a recommendation in the report unless inclusion of 
     the recommendation is approved by at least 6 members of the 
     Commission.
       (2) Information and justifications.--The Commission shall 
     include in its report information specifying--
       (A) the reasons and justifications for the recommendations 
     of the Commission;
       (B) to the maximum extent practicable, the estimated 
     fiscal, economic, and budgetary impact of accepting its 
     recommendations;
       (C) the amount of the projected savings resulting from each 
     of its recommendations;
       (D) all actions, circumstances, and considerations relating 
     to or bearing upon the recommendations and to the maximum 
     extent practicable, the estimated effect of the 
     recommendations upon the policies, laws and programs directly 
     or indirectly affected by the recommendations; and
       (E) the specific changes in Federal statutes necessary to 
     implement the recommendations, including citation of the 
     relevant provisions of existing law.
       (3) Submission to congress.--The report submitted to the 
     Congress under this subsection shall be submitted to the 
     Senate and the House of Representatives on the same day, and 
     shall be delivered to the Secretary of the Senate if the 
     Senate is not in session, and to the Clerk of the House of 
     the Representatives if the House is not in session.
       (4) Federal register.--The report submitted under this 
     subsection shall be printed in the first issue of the Federal 
     Register after such submission.
       (5) Changes in agency or department recommendations.--
       (A) In general.--Subject to the deadline in paragraph (1) 
     and to subparagraphs (B) and (C) of this paragraph, in making 
     its recommendations, the Commission may make changes in any 
     of the recommendations made by a department or agency if the 
     Commission determines that such department or agency, in 
     treating any matter as an inequitable Federal subsidy, 
     deviated substantially from the provisions of section 204.
       (B) Limitation.--The Commission may make a change in the 
     recommendations made by a department or agency, only if the 
     Commission--
       (i) makes the determination required under subparagraph 
     (B); and
       (ii) conducts a public hearing on the Commission's proposed 
     changes.
       (C) Application of limitation.--Subparagraph (B) shall 
     apply only to a change by the Commission in a department or 
     agency recommendation that would--
       (i) add or delete a payment, benefit, service, or tax 
     advantage to or from, respectively, the list recommended for 
     termination;
       (ii) add or delete a payment, benefit, service, or tax 
     advantage to or from, respectively, the list recommended for 
     modification; or
       (iii) increase or decrease the extent of a recommendation 
     to modify a payment, benefit, service, or tax advantage 
     included in a department's or agency's recommendation.
       (D) Justification.--The Commission shall explain and 
     justify in the report submitted to the Congress under this 
     subsection any recommendation made by the Commission that is 
     different from a recommendation made by an agency under 
     subsection (a).
       (6) Provision of information to members of congress.--After 
     March 31, 2005, the Commission shall, upon request, promptly 
     provide to any Member of Congress the information used by the 
     Commission in making its recommendations.
       (7) Comptroller general.--The Comptroller General of the 
     United States shall--
       (A) assist the Commission, to the extent requested, in the 
     Commission's review and analysis of the lists, statements, 
     and recommendations made by departments and agencies under 
     subsection (a); and
       (B) no later than 60 days after April 1, 2004, or the 
     public release of the President's budget documents in 2004, 
     whichever is earlier, submit to the Congress and to the 
     Commission a report containing a detailed analysis of the 
     list, statements, and recommendations of each department or 
     agency.

     SEC. 207. CONGRESSIONAL ACTION ON COMMISSION RECOMMENDATIONS.

       It is the sense of the Congress that, following submission 
     of the report of the Corporate Subsidy Reform Commission 
     under section 206, the House of Representatives and the 
     Senate should promptly consider legislation that would enact 
     changes in Federal statutes necessary to implement the 
     recommendations of the Commission.
                                 ______
                                 
  SA 3064. Mrs. FEINSTEIN submitted an amendment intended to be 
proposed to amendment SA 3048 proposed by Mr. McCain to the bill S. 
150, to make permanent the moratorium on taxes on Internet access and 
multiple and discriminatory taxes on electronic commerce imposed by the 
Internet Tax Freedom Act; which was ordered to lie on the table; as 
follows:

       At the end of the bill, add the following:

     SEC. . 4-YEAR GRANDFATHER FOR EXISTING TAXES.

       (a) In General.--Notwithstanding any provision of the 
     Internet Tax Freedom Act (47 U.S.C. 151 note), as amended by 
     this Act, to the contrary section 1101(a) of that Act does 
     not apply to--
       (1) a tax on Internet access that was generally imposed and 
     actually enforced prior to October 1, 1998, if, before that 
     date, the tax was authorized by statute and either--
       (A) 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
       (B) a State or political subdivision thereof generally 
     collected such tax on charges for Internet access; or
       (2) a tax on Internet access that was generally imposed and 
     actually enforced as of November 1, 2003, if, as of that 
     date, the tax was authorized by statute and--
       (A) a provider of Internet access services had a reasonable 
     opportunity to know by virtue of a public 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; and
       (B) a State or political subdivision thereof generally 
     collected such tax on charges for Internet access.
       (b) Termination.--This section shall not apply after 
     November l, 2007.
                                 ______
                                 
  SA 3065. Mrs. FEINSTEIN submitted an amendment intended to be 
proposed by her to the bill S. 150, to make permanent the moratorium on 
taxes on Internet access and multiple and discriminatory taxes on 
electronic commerce imposed by the Internet Tax Freedom Act; which was 
ordered to lie on the table; as follows:

       At the end of the bill, add the following:

     SEC.     . GRANDFATHER FOR EXISTING TAXES.

       (a) In General.--Notwithstanding any provision of the 
     Internet Tax Freedom Act (47 U.S.C. 151 note), as amended by 
     this Act, to the contrary section 1101(a) of that Act does 
     not apply to--
       (1) a tax on Internet access that was generally imposed and 
     actually enforced prior to October 1, 1998, if, before that 
     date, the tax was authorized by statute and either--
       (A) 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
       (B) a State or political subdivision thereof generally 
     collected such tax on charges for Internet access; or
       (2) a tax on Internet access that was generally imposed and 
     actually enforced as of November 1, 2003, if, as of that 
     date, the tax was authorized by statute and--
       (A) a provider of Internet access services had a reasonable 
     opportunity to know by virtue of a public 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; and
       (B) a State or political subdivision thereof generally 
     collected such tax on charges for Internet access.
                                 ______
                                 
  SA 3066. Mr. DORGAN submitted an amendment intended to be proposed by 
him to the bill S. 150, to make permanent the moratorium on taxes on 
Internet access and multiple and discriminatory taxes on electronic 
commerce imposed by the Internet Tax Freedom Act; which was ordered to 
lie on the table; as follows:

       At the appropriate place, insert the following:

     SEC.     . RESTORATION OF EXISTING DEFINITION OF INTERNET 
                   ACCESS.

       (a) In General.--
       (1) Paragraph (3)(D) of section 1101(d) (as redesignated by 
     section 2(b)(1) of this Act) is amended by striking the 
     second sentence and inserting ``Such term does not include 
     telecommunications services.''.
       (2) Paragraph (5) of section 1105 (as redesignated by 
     section 3(1) of this Act) is amended by striking the second 
     sentence and inserting ``Such term does not include 
     telecommunications services.''.
       (b) Effective Date.--The amendments made by subsection (a) 
     shall take effect on November 3, 2003.

     SEC.     . LIMITATION ON TAXATION OF TELECOMMUNICATIONS 
                   SERVICES RELATED TO ADVANCED TELECOMMUNICATIONS 
                   CAPABILITY.

       Notwithstanding any provision of the Internet Tax Freedom 
     Act (47 U.S.C. 151 note) to the contrary, no State or 
     political subdivision thereof may impose a tax on the retail 
     provision of advanced telecommunications capability (as 
     defined in section 706(c)(1) of the Telecommunications Act of 
     1996 (47 U.S.C. 157 note)) to consumers during the period 
     specified in section 1101(a) of that Act.

[[Page S4612]]

     SEC.     . VOIP AND BROADBAND TELEPHONY EXCLUSION.

       Section 1101(a) of the Internet Tax Freedom Act (47 U.S.C. 
     151 note) shall not apply to the imposition or collection of 
     any tax, fee, or charge on a service advertised or offered to 
     consumers for the provision of realtime voice 
     telecommunications regardless of whether such service employs 
     circuit-switched technology, packet switched technology, or 
     any successor technology or transmission protocol.

     SEC.     . GRANDFATHERING OF EXISTING TAXES.

       (a) In General.--Section 1104 of the Internet Tax Freedom 
     Act (47 U.S.C. 151 note) is amended to read as follows:

     ``SEC. 1104. EXCEPTIONS FOR CERTAIN TAXES.

       ``(a) Pre-October, 1998, Taxes.--Section 1101(a) does not 
     apply to a tax on Internet access (as that term was defined 
     in section 1104(5) of this Act as that section was in effect 
     on the day before the date of enactment of the Internet Tax 
     Ban Extension and Improvement Act) that was 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.
       ``(b) Taxes on Telecommunications Services.--Section 
     1101(a) does not apply to a tax on Internet access that was 
     generally imposed and actually enforced as of November 1, 
     2003, if, as of 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 service.''.
       (b) Effective Date.--The amendment made by subsection (a) 
     takes effect on November 3, 2003.
                                 ______
                                 
  SA 3067. Mr. DORGAN submitted an amendment intended to be proposed by 
him to the bill S. 150, to make permanent the moratorium on taxes on 
Internet access and multiple and discriminatory taxes on electronic 
commerce imposed by the Internet Tax Freedom Act; which was ordered to 
lie on the table; as follows:

       At the appropriate place, insert the following:

     SEC.     . RESTORATION OF EXISTING DEFINITION OF INTERNET 
                   ACCESS.

       (a) In General.--
       (1) Paragraph (3)(D) of section 1101(d) (as redesignated by 
     section 2(b)(1) of this Act) is amended by striking the 
     second sentence and inserting ``Such term does not include 
     telecommunications services.''.
       (2) Paragraph (5) of section 1105 (as redesignated by 
     section 3(l) of this Act) is amended by striking the second 
     sentence and inserting ``Such term does not include 
     telecommunications services.''.
       (b) Effective Date.--The amendments made by subsection (a) 
     shall take effect on November 3, 2003.

     SEC.     . LIMITATION ON TAXATION OF TELECOMMUNICATIONS 
                   SERVICES RELATED TO ADVANCED TELECOMMUNICATIONS 
                   CAPABILITY.

       Notwithstanding any provision of the Internet Tax Freedom 
     Act (47 U.S.C. 151 note) to the contrary, no State or 
     political subdivision thereof may impose a tax on the retail 
     provision of advanced telecommunications capability (as 
     defined in section 706(c)(1) of the Telecommunications Act of 
     1996 (47 U.S.C. 157 note)) to consumers during the period 
     specified in section 1101 (a) of that Act.

     SEC.     . VOIP AND BROADBAND TELEPHONY EXCLUSION.

       Section 1101(a) of the Internet Tax Freedom Act (47 U.S.C. 
     151 note) shall not apply to the imposition or collection of 
     any tax, fee, or charge on a service advertised or offered to 
     consumers for the provision of realtime voice 
     telecommunications regardless of whether such service employs 
     circuit-switched technology, packet switched technology, or 
     any successor technology or transmission protocol.
                                 ______
                                 
  SA 3068. Mr. ALEXANDER submitted an amendment intended to be proposed 
to amendment SA 3048 proposed by Mr. McCain to the bill S. 150, to make 
permanent the moratorium on taxes on Internet access and multiple and 
discriminatory taxes on electronic commerce imposed by the Internet Tax 
Freedom Act; which was ordered to lie on the table; as follows:

       At the appropriate place, insert the following:

     SEC.  . REIMBURSEMENT OF STATE AND LOCAL GOVERNMENTS FOR 
                   REVENUES FORGONE DUE TO INTERNET TAX FREEDOM 
                   ACT.

       (a) Application.--Upon a proper accounting and showing, at 
     such time, in such form, and containing such information as 
     the Secretary of the Treasury shall require, each State, 
     local government, or other taxing authority shall request 
     reimbursement from the Treasury of the United States for tax 
     revenues forgone by that State, local government, or other 
     taxing authority because of section 1101 of the Internet Tax 
     Freedom Act (47 U.S.C. 151). Any such request shall be made 
     by written application, signed under penalty of perjury, by 
     the chief executive officer of the State, local government, 
     or other taxing authority requesting reimbursement.
       (b) Certain Taxes Ineligible for Reimbursement.--Subsection 
     (a) shall not apply to revenues lost from--
       (1) any tax imposed only on Internet access; or
       (2) any rate of tax imposed on Internet access that exceeds 
     the rate at which that tax is imposed on other taxable 
     activities to which the tax applies.
       (c) No Interest or Penalties.--No payment may be made under 
     this section for any amount attributable to interest or 
     penalties.
       (d) Authority To Pay.--The Secretary of the Treasury shall 
     pay, upon application, such amounts as the Secretary 
     determines to be requested in accordance with subsection (a) 
     and supported by such documentation as the Secretary may 
     require, to any State, local government, or other taxing 
     authority that requests reimbursement under subsection (a).
       (e) Funding.--Notwithstanding any other provision of law to 
     the contrary, amounts received in the general fund of the 
     Treasury attributable to taxes imposed and collected under 
     subchapter B of chapter 33 of the Internal Revenue Code of 
     1986 shall be available, without further appropriation, to 
     make payments under this section.
                                 ______
                                 
  SA 3069. Mr. ALEXANDER submitted an amendment intended to be proposed 
to amendment SA 3048 proposed by Mr. McCain to the bill S. 150, to make 
permanent the moratorium on taxes on Internet access and multiple and 
discriminatory taxes on electronic commerce imposed by the Internet Tax 
Freedom Act; which was ordered to lie on the table; as follows:

       At the appropriate place, insert the following:

     SEC.  . $25 PER MONTH CAP.

       Notwithstanding any provision of the Internet Tax Freedom 
     Act (47 U.S.C. 151 note) to the contrary, the prohibition on 
     the imposition of tax on Internet access provided by section 
     1101(a) of that Act shall apply only with respect to the 
     first $25 of charges per month per subscriber for Internet 
     access.
                                 ______
                                 
  SA 3070. Mr. ALEXANDER submitted an amendment intended to be proposed 
to amendment SA 3048 proposed by Mr. McCain to the bill S. 150, to make 
permanent the moratorium on taxes on Internet access and multiple and 
discriminatory taxes on electronic commerce imposed by the Internet Tax 
Freedom Act; which was ordered to lie on the table; as follows:

       In lieu of the matter proposed to be inserted, insert the 
     following:

     SECTION 1. SHORT TITLE.

       This Act may be cited as the ``Internet Tax Ban Extension 
     and Improvement Act''.

     SEC. 2. 2-YEAR EXTENSION OF MORATORIUM.

       Section 1101(a) of the Internet Tax Freedom Act (47 U.S.C. 
     151 nt) is amended--
       (1) by striking ``2003--'' and inserting ``2005:'';
       (2) by striking paragraph (1) and inserting the following:
       ``(1) Taxes on Internet access.''; and
       (3) by striking ``multiple'' in paragraph (2) and inserting 
     ``Multiple''.

     SEC. 3. EXCEPTIONS FOR CERTAIN TAXES.

       The Internet Tax Freedom Act (47 U.S.C. 151 note) is 
     amended--
       (1) by redesignating section 1104 as section 1105; and
       (2) by inserting after section 1103 the following:

     ``SEC. 1104. EXCEPTIONS FOR CERTAIN TAXES.

       ``(a) Pre-October, 1998, Taxes.--Section 1101(a) does not 
     apply to a tax on Internet access (as that term was defined 
     in section 1104(5) of this Act as that section was in effect 
     on the day before the date of enactment of the Internet Tax 
     Ban Extension and Improvement Act) that was 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.
       ``(b) Taxes on Telecommunications Services.--Section 
     1101(a) does not apply to a tag on Internet access that was 
     generally imposed and actually enforced as of November 1, 
     2003, if, as of 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

[[Page S4613]]

     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 service.''.

     SEC. 4. CHANGE IN DEFINITIONS. OF INTERNET ACCESS SERVICE.

       (a) In General. Paragraph (3)(D) of section 1101(e) of the 
     Internet Tax Freedom Act (47 U.S.C. 151 note) is amended by 
     striking the second sentence and inserting ``The term 
     `Internet access service' does not include telecommunications 
     services, except to the extent such services are purchased, 
     used, or sold by an Internet access provider to connect a 
     purchaser of Internet access to the Internet access 
     provider.''.
       (b) Conforming Amendments.--
       (1) Paragraph (2)(B)(1) of section 1105 of that Act, as 
     redesignated by subsection (a), is amended by striking 
     ``except with respect to a tax (on Inter net access) that was 
     generally imposed and actually enforced prior to October 1, 
     1998,''.
       (2) Internet access.--Paragraph (5) of section 1105 of that 
     Act, as redesignated by subsection (a), is amended by 
     striking the second sentence and inserting ``The term 
     `Internet access'' does not include telecommunications 
     services, except to the extent such services are purchased, 
     used, or sold by an Internet access provider to connect a 
     purchaser of Internet access to the Internet access 
     provider.''.
       (3) Paragraph (10) of section 1105 of that Act, as 
     redesignated by subsection (a), is amended to read as 
     follows:
       ``(10) Tax on internet access.--
       ``(A) In general.--The term `tax on Internet access'' means 
     a tax on Internet access, regardless of whether such tax is 
     imposed on a provider of Internet access or a buyer of 
     Internet access and regardless of the terminology used to 
     describe the tax.
       ``(B) General exception.--The term `tax on Internet 
     access'' does not include a tax levied upon or measured by 
     net income, capital stock, net worth, or property value.''.

     SEC. 5. ACCOUNTING RULE.

       The Internet Tax Freedom Act (47 U.S.C. 151 note) is 
     amended by adding at the end the following:

     ``SEC. 1106. ACCOUNTING RULE.

       ``(a) In General.--If charges for Internet access are 
     aggregated with and not separately stated from charges for 
     telecommunications services or other charges that are subject 
     to taxation, then the charges for Internet access may be 
     subject to taxation unless the Internet access provider can 
     reasonably identify the charges for Internet access from its 
     books and records kept in the regular course of business.
       ``(b) Definitions.--In this section:
       ``(1) Charges for internet access.--The term `charges for 
     Internet access' means all charges for Internet access as 
     defined in section 1105(5).
       ``(2) Charges for telecommunications services.--The term 
     `charges for telecommunications services' means all charges 
     for telecommunications services except to the extent such 
     services are purchased, used, or sold by an Internet access 
     provider to connect a purchaser of Internet access to the 
     Internet access provider.''.

     SEC. 6. EFFECT ON OTHER LAWS.

       The Internet Tax Freedom Act (47 U.S.C. 151 note), amended 
     by section 4, is amended by adding at the end the following:

     ``SEC. 1107. EFFECT ON OTHER LAWS.

       ``(a) Universal Service.--Nothing in this Act shall prevent 
     the imposition or collection of any fees or charges used to 
     preserve and advance Federal universal service or similar 
     State programs--
       ``(1) authorized by section 254 of the Communications Act 
     of 1934 (47 U.S.C. 254); or
       ``(2) in effect on February 8, 1996.
       ``(b) 911 and E-911 Services.--Nothing in this Act shall 
     prevent the imposition or collection on a service used for 
     access to 911 or E-911 services, of any fee or charge 
     specifically designated or presented as dedicated by a State 
     or political subdivision thereof for the support of 911 or E-
     911 services if no portion of the revenue derived from such 
     fee or charge is obligated or expended for any purpose other 
     than support of 911 or E-911 services.
       ``(c) Non-Tax Regulatory Proceedings.--Nothing in this Act 
     shall be construed to affect any Federal or State regulatory 
     proceeding that is not related to taxation.''.

     SEC. 7. EFFECTIVE DATE.

       The amendments made by this Act take effect November 1, 
     2003.
                                 ______
                                 
  SA 3071. Mr. ALEXANDER submitted an amendment intended to be proposed 
to amendment SA 3048 proposed by Mr. McCain to the bill S. 150, to make 
permanent the moratorium on taxes on Internet access and multiple and 
discriminatory taxes on electronic commerce imposed by the Internet Tax 
Freedom Act; which was ordered to lie on the table; as follows:

       Strike all after the first word and insert the following:

     SECTION 1. SHORT TITLE.

       This Act may be cited as the ``Internet Tax 
     Nondiscrimination Act''.

     SEC. 2. TWO-YEAR EXTENSION OF INTERNET TAX MORATORIUM.

       (a) In General.--Subsection (a) of section 1101 of the 
     Internet Tax Freedom Act (47 U.S.C. 151 note) is amended to 
     read as follows:
       ``(a) Moratorium.--No State or political subdivision 
     thereof may impose any of the following taxes during the 
     period beginning November 1, 2003, and ending November 1, 
     2005:
       ``(1) Taxes on Internet access.
       ``(2) Multiple or discriminatory taxes on electronic 
     commerce.''.
       (b) Conforming Amendments.--
       (1) Section 1101 of the Internet Tax Freedom Act (47 U.S.C. 
     151 note) is amended by striking subsection (d) and 
     redesignating subsections (e) and (f) as subsections (d) and 
     (e), respectively.
       (2) Section 1104(10) of the Internet Tax Freedom Act (47 
     U.S.C. 151 note) is amended to read as follows:
       ``(10) Tax on Internet Access.--
       ``(A) In General.--The term `tax on Internet access' means 
     a tax on Internet access, regardless of whether such tax is 
     imposed on a provider of Internet access or a buyer of 
     Internet access and regardless of the terminology used to 
     describe the tax.
       ``(B) General Exception.--The term `tax on Internet access' 
     does not include a tax levied upon or measured by net income, 
     capital stock, net worth, or property value.''.
       (3) Section 1104(2)(B)(1) of the Internet Tax Freedom Act 
     (47 U.S.C. 151 note) is amended by striking ``except with 
     respect to a tax (on Internet access) that was generally 
     imposed and actually enforced prior to October 1, 1998,''.
       (c) Internet Access Service; Internet Access.--
       (1) Internet access service.--Paxagraph (3)(D) of section 
     1101(d) (as redesignated by subsection (b)(1) of this 
     section) of the Internet Tax Freedom Act (47 U.S.C. 151 note) 
     is amended by striking the second sentence and inserting 
     ``The term `Internet access service' does not include 
     telecommunications services, except to the extent such 
     services are purchased, used, or sold by an Internet access 
     provider to connect a purchaser of Internet access to the 
     Internet access provider.''.
       (2) Internet access.--Section 1104(5) of that Act is 
     amended by striking the second sentence and inserting ``The 
     term `Internet access' does not include telecommunications 
     services, except to the extent such services are purchased, 
     used, or sold by an Internet access provider to connect a 
     purchaser of Internet access to the Internet access 
     provider.''.

     SEC. 3. GRANDFATHERING OF STATES THAT TAX INTERNET ACCESS.

       The Internet Tax Freedom Act (47 U.S.C. 151 note) is 
     amended--
       (1) by redesignating section 1104 as section 1105; and
       (2) by inserting after section 1103 the following:

     ``SEC. 1104. GRANDFATHERING OF STATES THAT TAX INTERNET 
                   ACCESS.

       ``(a) Pre-October 1998 Taxes.--
       ``(1) In general.--Section 1101(a) does not apply to a tax 
     on Internet access (as that term was defined in section 
     1104(5) of this Act as that section was in effect on the day 
     before the date of enactment of the Internet Tax 
     Nondiscrimination Act) that was generally imposed and 
     actually enforced prior to October 1, 1998, if, before that 
     date, the tax was authorized by statute and either--
       ``(A) 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
       ``(B) a State or political subdivision thereof generally 
     collected such tax on charges for Internet access.
       ``(2) Termination.--This subsection shall not apply after 
     November 1, 2006.
       ``(b) Pre-November 2003 Taxes.--
       ``(1) In general.--Section 1101(a) does not apply to a tax 
     on Internet access that was generally imposed and actually 
     enforced as of November 1, 2003, if, as of that date, the tax 
     was authorized by statute and--
       ``(A) a provider of Internet access services had a 
     reasonable opportunity to know by virtue of a public 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; and
       ``(B) a State or political subdivision thereof generally 
     collected such tax on charges for Internet access.
       ``(2) Termination.--This subsection shall not apply after 
     November 1, 2005.''.

     SEC. 4. ACCOUNTING RULE.

       The Internet Tax Freedom Act (47 U.S.C. 151 note) is 
     amended by adding at the end the following:

     ``SEC. 1106. ACCOUNTING RULE.

       ``(a) In General.--If charges for Internet access are 
     aggregated with and not separately stated from charges for 
     telecommunications services or other charges that are subject 
     to taxation, then the charges for Internet access may be 
     subject to taxation unless the Internet access provider can 
     reasonably identify the charges for Internet access from its 
     books and records kept in the regular course of business.
       ``(b) Definitions.--In this section:
       ``(1) Charges for internet access.--The term `charges for 
     Internet access' means all charges for Internet access as 
     defined in section 1105(5).

[[Page S4614]]

       ``(2) Charges for telecommunications services.--The term 
     `charges for telecommunications services' means all charges 
     for telecommunications services, except, to the extent such 
     services are purchased, used, or sold by an Internet access 
     provider to connect a purchaser of Internet access to the 
     Internet access provider.''.

     SEC. 5. EFFECT ON OTHER LAWS.

       The Internet Tax Freedom Act (47 U.S.C. 151 note), as 
     amended by section 4, is amended by adding at the end the 
     following:

     ``SEC. 1107. EFFECT ON OTHER LAWS.

       ``(a) Universal Service.--Nothing in this Act shall prevent 
     the imposition or collection of any fees or charges used to 
     preserve and advance Federal universal service or similar 
     State programs--
       ``(1) authorized by section 254 of the Communications Act 
     of 1934 (47 U.S.C. 254); or
       ``(2) in effect on February 8, 1996.
       ``(b) 911 and E-911 Services.--Nothing in this Act shall 
     prevent the imposition or collection, on a service used for 
     access to 911 or E-911 services, of any fee or charge 
     specifically designated or presented as dedicated by a State 
     or political subdivision thereof for the support of 911 or E-
     911 services if no portion of the revenue derived from such 
     fee or charge is obligated or expended for any purpose other 
     than support of 911 or E-911 services.
       ``(c) Non-tax Regulatory Proceedings.--Nothing in this Act 
     shall be construed to affect any Federal or State regulatory 
     proceeding that is not related to taxation.''.

     SEC. 6. EXCEPTION FOR VOICE AND OTHER SERVICES OVER THE 
                   INTERNET.

       The Internet Tax Freedom Act (47 U.S.C. 151 note), as 
     amended by section 5, is amended by adding at the end the 
     following:

     ``SEC. 1108. TAXATION OF TELEPHONE SERVICE.

       Section 1101(a) of the Internet Tax Freedom Act (47 U.S.C. 
     151 note) shall not apply to the imposition or collection of 
     any tax, fee, or charge on a service advertised or offered to 
     consumers for the provision of realtime voice 
     telecommunications regardless of whether such service employs 
     circuit- switched technology, packet switched technology, or 
     any successor technology or transmission protocol.

     SEC. 7. EFFECTIVE DATE.

       The amendments made by this Act take effect on November 1, 
     2003.
                                 ______
                                 
  SA 3072. Mr. ALEXANDER submitted an amendment intended to be proposed 
to amendment SA 3048 proposed by Mr. McCain to the bill S. 150, to make 
permanent the moratorium on taxes on Internet access and multiple and 
discriminatory taxes on electronic commerce imposed by the Internet Tax 
Freedom Act; which was ordered to lie on the table; as follows:

       In lieu of the matter proposed to be inserted, insert the 
     following:

     SECTION 1. SHORT TITLE.

       This Act may be cited as the ``Internet Tax 
     Nondiscrimination Act''.

     SEC. 2. TWO-YEAR, EXTENSION OF INTERNET TAX MORATORIUM.

       (a) In General.--Subsection (a) of section 1101 of the 
     Internet Tax Freedom Act (47 U.S.C. 151 note) is amended to 
     read as follows:
       ``(a) Moratorium.--No State or political subdivision 
     thereof may impose any of the following taxes during the 
     period beginning November 1, 2003, and ending November 1, 
     2005:
       ``(1) Taxes on Internet access.
       ``(2) Multiple or discriminatory taxes on electronic 
     commerce.''.
       (b) Conforming Amendments.--
       (1) Section 1101 of the Internet Tax Freedom Act (47 U.S.C. 
     151 note) is amended by striking subsection (d) and 
     redesignating subsections (e) and (f) as subsections (d) and 
     (e), respectively.
       (2) Section 1104(10) of the Internet Tax Freedom Act (47 
     U.S.C. 151 note) is amended to read as follows:
       ``(10) Tax on internet access.--
       ``(A) In general.--The term `tax on Internet access' means 
     a tax on Internet access, regardless of whether such tax is 
     imposed on a provider of Internet access or a buyer of 
     Internet access and regardless of the terminology used to 
     describe the tax.
       ``(B) General Exception.--The term `tax on Internet access' 
     does not include a tax levied upon or measured by net income, 
     capital stock, net worth, or property value.''.
       (3) Section 1104(2)(B)(i) of the Internet Tax Freedom Act 
     (47 U.S.C. 151 note) is amended by striking ``except with 
     respect to a tax (on Internet access) that was generally 
     imposed and actually enforced prior to October 1, 1998,''.
       (c) Internet Access Service; Internet Access.--
       (1) Internet access service.--Paragraph (3)(D) of section 
     1101(d) (as redesignated by subsection (b)(1) of this 
     section) of the Internet Tax Freedom Act (47 U.S.C. 151 note) 
     is amended by striking the second sentence and inserting 
     ``The term `Internet access service' does not include 
     telecommunications services, except to the extent such 
     services are purchased, used, or sold by an Internet access 
     provider to connect a purchaser of Internet access to the 
     Internet access provider.''.
       (2) Internet access.--Section 1104(5) of that Act is 
     amended by striking the second sentence and inserting ``The 
     term `Internet access' does not include telecommunications 
     services, except to the extent such services are purchased, 
     used, or sold by an Internet access provider to connect a 
     purchaser of Internet access to the Internet access 
     provider.''.

     SEC. 3. GRANDFATHERING OF STATES THAT TAX INTERNET ACCESS.

       The Internet Tax Freedom Act (47 U.S.C. 151 note) is 
     amended--
       (1) by redesignating section 1104 as section 1105; and
       (2) by inserting after section 1103 the following:

     ``SEC. 1104. GRANDFATHERING OF STATES THAT TAX INTERNET 
                   ACCESS.

       ``(a) Pre-October 1998 Taxes.--
       ``(1) In general.--Section 1101(a) does not apply to a tax 
     on Internet access (as that term was defined in section 
     1104(5) of this Act as that section was in effect on the day 
     before the date of enactment of the Internet Tax 
     Nondiscrimination Act) that was generally imposed and 
     actually enforced prior to October 1, 1998, if, before that 
     date, the tax was authorized by statute and either--
       ``(A) 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
       ``(B) a State or political subdivision thereof generally 
     collected such tax on charges for Internet access.
       ``(2) Termination.--This subsection shall not apply after 
     November 1, 2006.
       ``(b) Pre-November 2003 Taxes.--
       ``(1) In General.--Section 1101(a) does not apply to a tax 
     on Internet access that was generally imposed and actually 
     enforced as of November 1, 2003, if, as of that date, the tax 
     was authorized by statute and--
       ``(A) a provider of Internet access services had a 
     reasonable opportunity to know by virtue of a public 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; and
       ``(B) a State or political subdivision thereof generally 
     collected such tax on charges for Internet access.
       ``(2) Termination.--This subsection shall not apply after 
     November 1, 2005.''.

     SEC. 4. ACCOUNTING RULE.

       The Internet Tax Freedom Act (47 U.S.C. 151 note) is 
     amended by adding at the end the following:

     ``SEC. 1106. ACCOUNTING RULE.

       ``(a) In General.--If charges for Internet access are 
     aggregated with and not separately stated from charges for 
     telecommunications services or other charges that are subject 
     to taxation, then the charges for Internet access may be 
     subject to taxation unless the Internet access provider can 
     reasonably identify the charges for Internet access from its 
     books and records kept in the regular course of business.
       ``(b) Definitions.--In this section:
       ``(1) Charges for Internet Access.--The term `charges for 
     Internet access'' means all charges for Internet access as 
     defined in section 1105(5).
       ``(2) Charges for telecommunications services.--The term 
     `charges for telecommunications services' means all charges 
     for telecommunications services, except to the extent such 
     services are purchased, used, or sold by an Internet access 
     provider to connect a purchaser of Internet access to the 
     Internet access provider.''.

     SEC. 5. EFFECT ON OTHER LAWS.

       The Internet Tax Freedom Act (47 U.S.C. 151 note), as 
     amended by section 4, is amended by adding at the end the 
     following:

     ``SEC. 1107. EFFECT ON OTHER LAWS.

       ``(a) Universal Service.--Nothing in this Act shall prevent 
     the imposition or collection of any fees or charges used to 
     preserve and advance Federal universal service or similar 
     State programs--
       ``(1) authorized by section 254 of the Communications Act 
     of 1934 (47 U.S.C. 254); or
       ``(2) in effect on February 8, 1996.
       ``(b) 911 and E-911 Services.--Nothing in this Act shall 
     prevent the imposition or collection, on a service used for 
     access to 911 or E-911 services, of any fee or charge 
     specifically designated or presented as dedicated by a State 
     or political subdivision thereof for the support of 911 or E-
     911 services if no portion of the revenue derived from such 
     fee or charge is obligated or expended for any purpose other 
     than support of 911 or E-911 services.
       ``(c) Non-Tax Regulatory Proceedings.--Nothing in this Act 
     shall be construed to affect any Federal or State regulatory 
     proceeding that is not related to taxation.''.

     SEC. 6. EXCEPTION FOR VOICE AND OTHER SERVICES OVER THE 
                   INTERNET.

       The Internet Tax Freedom Act (47 U.S.C. 151 note), as 
     amended by section 5, is amended by adding at the end the 
     following:

     ``SEC. 1108. TAXATION OF TELEPHONE SERVICE.

       Section 1101(a) of the Internet Tax Freedom Act (47 U.S.C. 
     151 note) shall not apply to the imposition or collection of 
     any tax, fee, or charge on a service advertised or offered to 
     consumers for the provision of realtime voice 
     telecommunications regardless of whether such service employs 
     circuit-switched technology, packet switched technology, or 
     any successor technology or transmission protocol.

     SEC. 7. EFFECTIVE DATE.

       The amendments made by this Act take effect on November 1, 
     2003.

[[Page S4615]]

                                 ______
                                 
  SA 3073. Mr. ALEXANDER submitted an amendment intended to be proposed 
to amendment SA 3048 proposed by Mr. McCain to the bill S. 150, to make 
permanent the moratorium on taxes on Internet access and multiple and 
discriminatory taxes on electronic commerce imposed by the Internet Tax 
Freedom Act; which was ordered to lie on the table; as follows:

       In lieu of the matter proposed to be inserted, insert the 
     following:

     SECTION 1. SHORT TITLE.

       This Act may be cited as the ``Internet Tax Ban Extension 
     and Improvement Act''.

     SEC. 2. 2-YEAR EXTENSION OF MORATORIUM.

       Section 1101 (a) of the Internet Tax Freedom Act (47 U.S.C. 
     151 nt) is amended--
       (1) by striking ``2003--'' and inserting ``2005:'';
       (2) by striking paragraph (1) and inserting the following:
       ``(1) Taxes on Internet access.''; and
       (3) by striking ``multiple'' in paragraph (2) and inserting 
     ``Multiple''.

     SEC. 3. EXCEPTIONS FOR CERTAIN TAXES.

       The Internet Tax Freedom Act (47 U.S.C. 151 note) is 
     amended--
       (1) by redesignating section 1104 as section 1105; and
       (2) by inserting after section 1103 the following:

     ``SEC. 1104. EXCEPTIONS FOR CERTAIN TAXES.

       ``(a) Pre-October, 1998, Taxes.--Section 1101(a) does not 
     apply to a tax on Internet access (as that term was defined 
     in section 1104(5) of this Act as that section was in effect 
     on the day before the date of enactment of the Internet Tax 
     Ban Extension and Improvement Act) that 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.
       ``(b) Taxes on Telecommunications Services.--Section 
     1101(a) does not apply to a tax on Internet access that was 
     generally imposed and actually enforced as of November 1, 
     2003, if, as of 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 service.''.

     SEC. 4. CHANGE IN DEFINITIONS OF INTERNET ACCESS SERVICE.

       (a) In General.--Paragraph (3)(D) of section 1101(e) of the 
     Internet Tax Freedom Act (47 U.S.C. 151 note) is amended by 
     striking the second sentence and inserting ``The term 
     `Internet access service' does not include telecommunications 
     services, except to the extent such services are purchased, 
     used, or sold by an Internet access provider to connect a 
     purchaser of Internet access to the Internet access 
     provider.''.
       (b) Conforming Amendments.--
       (1) Paragraph (2)(B)(i) of section 1105 of that Act, as 
     redesignated by subsection (a), is amended by striking 
     ``except with respect, to a tax (on Internet access) that was 
     generally imposed and actually enforced prior to October 1, 
     1998,''.
       (2) Internet access.--Paragraph (5) of section 1105 of that 
     Act, as redesignated by subsection (a), is amended by 
     striking the second sentence and inserting ``The term 
     `Internet access' does not include telecommunications 
     services, except to the extent such services are purchased, 
     used, or sold by an Internet access provider to connect a 
     purchaser of Internet access to the Internet access 
     provider.''.
       (3) Paragraph (10) of section 1105 of that Act, as 
     redesignated by subsection (a), is amended to read as 
     follows:
       ``(10) Tax on internet access.
       ``(A) In general.--The term `tax on Internet access' means 
     a tax on Internet access, regardless of whether such tax is 
     imposed on a provider of Internet access or a buyer of 
     Internet access and regardless of the terminology used to 
     describe the tax.
       ``(B) General exception.--The term `tax on Internet access' 
     does not include a tax levied upon or measured by net income, 
     capital stock, net worth, or property value.''.

     SEC. 5. ACCOUNTING RULE.

       The Internet Tax Freedom Act (47 U.S.C. 151 note) is 
     amended by adding at the end the following:

     ``SEC. 1106. ACCOUNTING RULE.

       ``(a) In General.--If charges for Internet access are 
     aggregated with and not separately stated from charges for 
     telecommunications services or other charges that are subject 
     to taxation, then the charges for Internet access may be 
     subject to taxation unless the Internet access provider can 
     reasonably identify the charges for Internet access from its 
     books and records kept in the regular course of business.
       ``(b) Definitions.--In this section:
       ``(1) Charges for internet access.--The term `charges for 
     Internet access' means all charges for Internet access as 
     defined in section 1105(5).
       ``(2) Charges for telecommunications service.--The term 
     `charges for telecommunications services' means all charges 
     for telecommunications services except to the extent such 
     services are purchased, used, or sold by an Internet access 
     provider to connect a purchaser of Internet access to the 
     Internet access provider.''.

     SEC. 6. EFFECT ON OTHER LAWS.

       The Internet Tax Freedom Act (47 U.S.C. 151 note), as 
     amended by section 4, is amended by adding at the end the 
     following:

     ``SEC. 1107. EFFECT ON OTHER LAWS.

       ``(a) Universal Service.--Nothing in this Act shall prevent 
     the imposition or collection of any fees or charges used to 
     preserve and advance Federal universal service or similar 
     State programs--
       ``(1) authorized by section 254 of the Communications Act 
     of 1934 (47 U.S.C. 254); or
       ``(2) in effect on February 8, 1996.
       ``(b) 911 and E-911 Services.--Nothing in this Act shall 
     prevent the imposition or collection, on a service used for 
     access to 911 or E-911 services, of any fee or charge 
     specifically designated or presented as dedicated by a State 
     or political subdivision thereof for the support of 911 or E-
     911 services if no portion of the revenue derived from such 
     fee or charge is obligated or expended for any purpose other 
     than support of 911 or E-911 services.
       ``(c) Non-Tax Regulatory Proceedings.--Nothing in this Act 
     shall be construed to affect any Federal or State regulatory 
     proceeding that is not related to taxation.''.

     SEC. 7. EFFECTIVE DATE.

       The amendments made by this Act take effect November 1, 
     2003.

     SEC.   VOIP AND BROADBAND TELEPHONY EXCLUSION.

       Section 1101(a) of the Internet Tax Freedom Act (47 U.S.C. 
     151 note) shall not apply to the imposition or collection of 
     any tax, fee, or charge on a service advertised or offered to 
     consumers for the provision of realtime voice 
     telecommunications regardless of whether such service employs 
     circuit-switched technology, packet switched technology, or 
     any successor technology or transmission protocol.
                                 ______
                                 
  SA 3074. Mr. GRAHAM of Florida submitted an amendment intended to be 
proposed to amendment SA 3048 proposed by Mr. McCain to the bill S. 
150, to make permanent the moratorium on taxes on Internet access and 
multiple and discriminatory taxes on electronic commerce imposed by the 
Internet Tax Freedom Act; which was ordered to lie on the table; as 
follows:

       At the appropriate place, add the following:
       Whereas the United States, its people and its armed forces, 
     are committed to winning the war on terrorism;
       Whereas winning this global war will require a sustained 
     sacrifice from our troops, an expensive commitment of U.S. 
     resources, and effective and credible intelligence community, 
     and considerable cooperation of the international community;
       Whereas winning this global war will also require that our 
     leaders correctly prioritize the national security threats 
     facing this nation, develop a plan for defeating those 
     threats, and urgently implement the measures required to 
     defeat those threats;
       Whereas senior Bush Administration officials have 
     acknowledged that terrorism was not their top priority prior 
     to September 11, 2001, their strategy to counter this threat 
     took eight months to develop, and this strategy was not 
     implemented until after September 11, 2001.
       Whereas Richard Clarke, President Bush's former senior 
     counter-terrorism advisor, has testified under oath that the 
     Bush Administration did not consider terrorism the top 
     priority and reports indicate that terrorism was discussed at 
     only two of the 100 meetings of the Bush Administration's 
     National Security Council prior to September 11, 2001;
       Whereas Richard Clarke also testified that he provided Bush 
     Administration officials a memo on January 25, 2001 outlining 
     a counter-terrorism strategy and in September, 2001 the 
     Administration approved a counter-terrorism strategy that, 
     according to Clarke, was virtually identical to the strategy 
     outlined in his January memo;
       Whereas the terrorist attacks of September 11, 2001, were 
     the deadliest ever directed against the United States and 
     there have been more terrorist attacks by al-Qaeda and 
     related groups in the 30 months since September 11, 2001 than 
     there were in the 30 months before September 11;
       Whereas the Administration's policies have generated 
     growing hostility and resentment of the United States 
     throughout the Middle East and the world and majorities in 
     key Muslim countries have a more favorable opinion of Osama 
     Bin Laden than they do the United States;
       Whereas the assessment by David Kay, the Administration's 
     chief weapons inspector, that there are no weapons of mass 
     destruction in Iraq has eroded the confidence of the American 
     people and the world in the assessment of our intelligence 
     community and our policymakers;
       Whereas the bipartisan, bicameral joint congressional 
     inquiry into the intelligence

[[Page S4616]]

     community's activities before and after September 11, 2001, 
     discovered many strengths and weaknesses within the community 
     pertaining to counter-terrorism;
       Whereas many of the joint inquiry's testimony and documents 
     remain classified and inaccessible, including June 11, 2002 
     testimony by Richard Clarke and a twenty-eight page section 
     that addresses the involvement of a foreign government in 
     supporting several of the hijackers who carried out the 
     September 11 attacks;
       Whereas Richard Clarke and the Majority and Minority 
     Leaders of the United States Senate have requested that 
     Clarke's June 11, 2002, testimony before the Joint Inquiry be 
     declassified; and
       Whereas an Administration decision to selectively 
     declassify parts of documents or of individual documents will 
     not present to our troops and the American people the 
     complete information they need and deserve;
       Now, therefore, be it
       Resolved, that it is the sense of the Senate that--
       (1) the June 11, 2002 testimony of Richard Clarke before 
     the joint inquiry should immediately be declassified and 
     publicly released in its entirety;
       (2) the twenty-eight pages of the joint inquiry report 
     discussing foreign government involvement in the September 11 
     terrorist plot should be immediately declassified and 
     publicly released in their entirety, as well as any other 
     joint inquiry documents and testimony whose classification 
     can no longer be justified;
       (3) the January 25, 2001 memorandum prepared by Richard 
     Clarke outlining a plan of action against the al-Qaeda 
     terrorist organization and the Bush Administration's 
     September 4, 2001 National Security Directive addressing 
     terrorism should be immediately declassified and publicly 
     released in their entirety; and
       (4) the Bush Administration should immediately prepare and 
     publicly release a list of the dates and topics of all 
     National Security Council meetings that took place before 
     September 11, 2001.
                                 ______
                                 
  SA 3075. Mr. HOLLINGS submitted an amendment intended to be proposed 
by him to the bill S. 150, to make permanent the moratorium on taxes on 
Internet access and multiple and discriminatory taxes on electronic 
commerce imposed by the Internet Tax Freedom Act; which was ordered to 
lie on the table; as follows:

       At the appropriate place add the following:

                      TITLE --BROADBAND DEPLOYMENT

     SEC.--01. SHORT TITLE; TABLE OF CONTENTS.

       (a) Short title.--This title may be cited as the 
     ``Broadband Telecommunications Deployment Act of 2004.''.
       (b) Table of Contents.--
       The table of contents for this title is as follows:

Sec. --01. Short title; table of contents.
Sec. --02. Findings.

         Subtitle A--Trust Fund for Broadband Loans and Grants

Sec. --101. Broadband deployment trust fund.

 Subtitle B--Access to Broadband Telecommunications Services in Rural 
                                 Areas

Sec. -- 201. Loan program.
Sec. -- 202. Grants for planning and feasibility studies on broadband 
              deployment.
Sec. -- 203. Pilot program for wireless or satellite broadband trials 
              in rural areas.
Sec. -- 204. Rural and underserved community broadband technology 
              initiative.
Sec. -- 205. Report on universal service and competition.
Sec. -- 206. Block grants to States for broadband deployment.
Sec. -- 207. GAO to study broadband deployment in other countries.
Sec. -- 208. Assessment of homeland security and public safety needs in 
              rural and underserved areas.

Subtitle C--Research on Technical and Financial Requirements for Faster 
                           Broadband Services

Sec. -- 301. Research enhancement of broadband telecommunications 
              services.
Sec. -- 302. Grants to colleges and universities to research faster 
              broadband technology.

         Subtitle D--Stimulating Demand for Broadband Services

Sec. -- 401. Grants to colleges and universities for research.
Sec. -- 402. Grants to libraries to digitize collections.
Sec. -- 403. Grants to museums to digitize collections.
Sec. -- 404. Grants for DTV conversion and programming.

     SEC. --02. FINDINGS.

       The Congress finds the following:
       (1) Broadband service could revolutionize the way Americans 
     live. Therefore, it is important that Congress examine the 
     issues surrounding the availability and subscription to 
     broadband service.
       (2) The Federal Communications Commission recently 
     concluded that advanced telecommunications capability is 
     being deployed in a reasonable and timely manner and that 
     although investment trends in general have slowed recently, 
     investment in infrastructure for advanced telecommunications 
     remains strong.
       (3) Approximately 89 percent of Americans have access to 
     broadband service provided by either the cable or telephone 
     companies.
       (4) Some communities, such as those in rural and urban 
     areas do not have access to broadband service.
       (5) According to numerous reports approximately 21 percent 
     of consumers subscribe to broadband service, leading many to 
     believe that the low adoption of broadband by consumers is 
     not due to low availability, but instead to a lack of demand 
     by consumers.
       (6) Cable and telephone companies generally provide 
     broadband service with speeds of up to 1.5 megabits per 
     second to residential consumers. How ever, many in the 
     technology industry state that higher speeds are needed to 
     provide telemedicine, video conferencing, movie and music 
     over the internet and other internet applications.
       (7) The Federal Communications Commission's policies for 
     promoting broadband deployment must not undermine competition 
     or universal service.
       (8) Congress must explore ways to ensure that broadband 
     service is available to all Americans and that no one is left 
     behind. This includes exploring ways to increase deployment 
     in unserved and underserved areas, address consumer demand 
     factors, facilitate innovation that results in higher service 
     speeds, and promote consumer confidence when using the 
     Internet.

         Subtitle A--Trust Fund for Broadband Loans and Grants

     SEC. --101. BROADBAND DEPLOYMENT TRUST FUND.

       (a) In General.--The National Telecommunications and 
     Information Administration Organization Act is amended--
       (1) by redesignating part C as part D; and
       (2) by inserting after part B (47 U.S.C. 921 et seq.) the 
     following new part:

    ``Part C--Assistance To Promote Broadband Deployment and Demand

     ``SEC. 131. BROADBAND DEPLOYMENT AND DEMAND TRUST FUND.

       ``(a) Creation of Trust Fund.--There is established in the 
     Treasury of the United States a trust fund to be known as the 
     Broadband Deployment and Demand Trust Fund.
       ``(b) Expenditures From Trust Fund.--Amounts in the Trust 
     Fund shall be available for making expenditures to carry out 
     the provisions of the Broadband Telecommunications Deployment 
     Act of 2004, and for such expenditures as may be necessary to 
     administer the programs established therein.
       ``(c) Treatment as Trust Fund.--Subchapter B of chapter 98 
     of the Internal Revenue Code of 1986 shall apply to the 
     administration of the Trust Fund.

     ``SEC. 132. REGULATIONS.

       ``The Secretary of Commerce may prescribe such regulations 
     as may be necessary to carry out this part.

     ``SEC. 133. AUTHORIZATION OF APPROPRIATIONS.

       ``(a) Authorization.--For each of fiscal years 2005 through 
     2009 there are authorized to be appropriated to the Broadband 
     Deployment and Demand Trust Fund an amount equivalent to 50 
     percent of the taxes received in the Treasury after September 
     30, 2004, and before October 1, 2009, under section 4251 
     (relating to tax on communications) of the Internal Revenue 
     Code of 1986.
       ``(b) Sunset of Appropriations Stream.--The authorization 
     of appropriations by subsection (a) to the Trust Fund shall 
     terminate at the end of fiscal year 2009, but any balances 
     remaining in the Trust Fund at the close of that fiscal year, 
     and any repayments of loans made from the Trust Fund received 
     after fiscal year 2009, shall remain available for obligation 
     and expenditure from the Trust Fund.''.

 Subtitle B--Access to Broadband Telecommunications Services in Rural 
                                 Areas

     SEC. --201. LOAN PROGRAM.

       (a) Purpose.--The purpose of this section is to provide 
     loans to fund the costs of the construction, improvement, and 
     acquisition of facilities and equipment for broadband service 
     in eligible rural and underserved communities.
       (b) Definitions.--In this section:
       (1) Broadband service.--The term ``broadband service'' 
     means any technology identified by the National 
     Telecommunications and Information Administration, in 
     consultation with the Rural Utilities Service of the 
     Department of Agriculture, as having the capacity to transmit 
     data to enable a subscriber to the service to originate and 
     receive high-quality voice, high-speed data, graphics, or 
     video.
       (2) Eligible rural community.--The term ``eligible rural 
     community'' means any incorporated or unincorporated place 
     that--
       (A) has not more than 50,000 inhabitants, based on the most 
     recent available population statistics of the Bureau of the 
     Census; and
       (B) is not located in an area designated as a standard 
     metropolitan statistical area.
       (3) Eligible underserved community.--The term ``eligible 
     underserved community'' means any census tract 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.

[[Page S4617]]

       (c) Loans.--
       (1) In general.--The Rural Utilities Service, in 
     consultation with National Telecommunications and Information 
     Administration, shall make loans to eligible entities to 
     provide funds for the construction, improvement, or 
     acquisition of facilities and equipment for the provision of 
     broadband service in eligible rural and underserved 
     communities.
       (2) Loans to lecs.--The Rural Utilities Service, in 
     consultation with National Telecommunications and Information 
     Administration, shall make loans to local exchange carriers 
     (as defined in section 3(26) of the Communications Act of 
     1934 (47 U.S.C. 151(26)) that are eligible entities to 
     provide funds to upgrade or install remote terminals located 
     more than 25,000 feet from the closest central office of the 
     local exchange carrier, and for the installation of fiber 
     optic cable or broadband wireless facilities between such 
     remote terminals and the closest central office of a local 
     exchange carrier, in order to provide broadband service to 
     eligible rural and underserved communities.
       (3) Effect of communications policy.--Notwithstanding any 
     other provision of this section, the Rural Utilities Service 
     may not make a loan under this subsection if the National 
     Telecommunications and Information Administration determines 
     that the loan would have an adverse effect on communications 
     policy, including competition in the communications 
     marketplace.
       (d) Eligible Entities.--To be eligible to obtain a loan 
     under this section, an entity shall--
       (1) be able to furnish, improve, or extend a broadband 
     service to an eligible rural or underserved community; and
       (2) submit to the Rural Utilities Service a proposal for a 
     project that meets the requirements of this section.
       (e) Broadband service.--The National Telecommunications and 
     Information Administration shall, from time to time as 
     advances in technology warrant, re view and recommend 
     modifications to the rate-of-data transmission criteria for 
     purposes of the identification of broadband service 
     technologies under subsection (b) (1).
       (f) Technological neutrality.--For purposes of determining 
     whether to make a loan for a project under this section, the 
     Rural Utilities Service shall apply technologically neutral 
     criteria and encourage the use of a variety of landline and 
     wireless technologies among applications.
       (g) Terms and Conditions for Loans.--A loan under 
     subsection (d) shall--
       (1) be made available in accordance with the requirements 
     of the Federal Credit Reform Act of 1990 (2 U.S.C. 661 et 
     seq.);
       (2) bear interest at an annual rate, as determined by the 
     National Telecommunications and Information Administration, 
     in consultation with the Rural Utilities Service, of--
       (A) 4 percent per annum; or
       (B) the current applicable market rate; and
       (3) have a term not to exceed the useful life of the assets 
     constructed, improved, or acquired with the proceeds of the 
     loan or extension of credit.
       (h) Use of Loan Proceeds to Refinance Loans for Deployment 
     of Broadband Service.--Notwithstanding any other provision of 
     this title, the proceeds of any loan made by the Rural 
     Utilities Service under this title may be used by the 
     recipient of the loan for the purpose of refinancing an 
     outstanding obligation of the recipient on another 
     telecommunications loan made under this title if the use of 
     the proceeds for that purpose will further the construction, 
     improvement, or acquisition of facilities and equipment for 
     the provision of broadband service in eligible rural and 
     underserved communities.
       (i) Incumbent Local Exchange Carrier Must Make Upgraded 
     Facilities Available.--In addition to any other requirement 
     to provide unbundled network elements, any incumbent local 
     exchange carrier (as defined in section 251(h) of the 
     Communications Act of 1934 (47 U.S.C. 251(h))) that uses 
     funds made available under subsection (c)(2) shall make 
     remote terminals and fiber optic cable so funded, and any 
     loop that includes such components, available to a requesting 
     telecommunications carrier on an unbundled basis in 
     accordance with the requirements of sections 251 and 252 
     of the Communications Act of 1934 (47 U.S.C. 251, 252).
       (j) Funding.--
       (1) In general.--The Secretary of Commerce shall make 
     available from amounts in the Broadband Deployment and Demand 
     Trust Fund not more than $125,000,000 for each of fiscal 
     years 2005 through 2009 for loans under this section, of 
     which $25,000,000 shall be for loans under subsection (c) 
     (2).
       (2) Value of loans outstanding.--The aggregate value of all 
     loans made under this section shall be at least 
     $2,500,000,000 for each such fiscal year, including not more 
     than $500,000,000 for outstanding loans under subsection 
     (c)(2).
       (3) Allocation of funds.--
       (A) In general.--From amounts made available for each 
     fiscal year under paragraph (1), the Rural Utilities Service 
     shall establish a national reserve for loans to eligible 
     entities in States under this section.
       (B) Unobligated amounts.--Any amounts in the reserve 
     established for a State for a fiscal year under subparagraph 
     (A) that are not obligated by April 1 of the fiscal year 
     shall be available to the Rural Utilities Service to make 
     loans under this section to eligible entities in any State, 
     as determined by the Rural Utilities Service.

     SEC. __202. GRANTS FOR PLANNING AND FEASIBILITY STUDIES ON 
                   BROADBAND DEPLOYMENT.

       (a) In General.--The National Telecommunications and 
     Information Administration shall make grants to non-profit 
     organizations for planning and feasibility studies on the 
     deployment of broadband services in different geographic 
     areas, including towns, cities, counties, and States.
       (b) Eligibility Criteria.--
       (1) In general.--The National Telecommunications and 
     Information Administration may establish additional criteria 
     for eligibility for grants under this section, including 
     criteria for the scope of the planning and feasibility 
     studies to be carried out with grants under this section.
       (2) Contribution by grantee.--An organization may not be 
     awarded a grant under this section unless the entity agrees 
     to contribute (out of funds other than the grant amount) to 
     the planning and feasibility study to be funded by the grant 
     an amount equal to the amount of the grant.
       (c) Application.--An organization seeking a grant under 
     this section shall submit an application for the grant to 
     National Telecommunications and Information Administration 
     that is in such form, and that contains such information, as 
     the National Telecommunications and Information 
     Administration shall require.
       (d) Limitation on Use of Grant Amounts.--Grant amounts 
     under this section may not be used for the acquisition of 
     office equipment, the construction of buildings or other 
     facilities, the acquisition or improvement of existing 
     buildings or facilities, or the leasing of office space.
       (e) Reservation of Funds for Grants.--
       (1) In general.--The Secretary of Commerce shall make 
     available from amounts in the Broadband Deployment and Demand 
     Trust Fund not more than $60,000,000 for each of fiscal years 
     2005 through 2009 as a reserve for grants under this section.
       (2) Release.--Funds reserved under paragraph (1) for a 
     fiscal year shall be reserved only until April 1 of the 
     fiscal year.
       (f) Supplement Not Supplant.--
       (1) In general.--Eligibility for a grant under this section 
     shall not affect eligibility for a grant or loan under 
     another section of this title.
       (2) Considerations.--The National Telecommunications and 
     Information Administration may not take into account the 
     award of a grant under this section, or the award of a grant 
     or loan under another section of this title, in awarding a 
     grant or loan under this section or another section of this 
     title, as the case may be.
       (g) Termination of Authority.--
       (1) In general.--No grant may be made under this section 
     after September 30, 2009.
       (2) Effect on validity of grant.--Notwithstanding paragraph 
     (1), any grant made under this section before the date 
     specified in paragraph (1) shall be valid.

     SEC. __203. PILOT PROGRAM FOR WIRELESS OR SATELLITE BROADBAND 
                   TRIALS IN RURAL AREAS.

       (a) In General.--The National Telecommunications and 
     Information Administration shall support up to 7 pilot 
     programs in each of fiscal years 2005 through 2009 for 
     conducting innovative applications of wireless, satellite, 
     and other non-wireline technologies capable of delivering 
     broadband service (as defined in section __201(b)(1)) to an 
     eligible rural community (as defined in section __201(b)(2)) 
     or an eligible underserved community (as defined in section 
     __201(b)(3)). The National Telecommunications and Information 
     Administration shall support 1 pilot program per year for 
     fiber-to-the-home technology under this subsection except for 
     any year for which no application is received for such a 
     program.
       (b) Application Procedures and Conditions.--The National 
     Telecommunications and Information Administration shall 
     establish such application procedures and conditions for 
     grants under this section as it deems appropriate.
       (c) Funding.--The Secretary of Commerce shall make 
     available from the Broadband Deployment and Demand Trust Fund 
     up to $2,000,000 per year for each pilot program under 
     subsection (a).

     SEC. __204. RURAL AND UNDERSERVED COMMUNITY BROADBAND 
                   TECHNOLOGY INITIATIVE.

       The Director of the National Institute of Standards and 
     Technology, through the Advanced Technology Program, may hold 
     a portion of the Institute's competitions in thematic areas, 
     selected after consultation with industry, academics, and 
     other Federal Agencies, designed to develop and improve 
     technical capabilities with respect to the speed, quality, 
     and availability of technologies that will extend the reach 
     of broadband Internet services to individuals living in 
     eligible rural communities (as defined in section --
     201(b)(2)) and eligible underserved communities (as 
     defined in section __201(b)(3)).

     SEC. __205. REPORT ON UNIVERSAL SERVICE AND COMPETITION.

       No later than May 1, 2005, a Federal-State Joint Board 
     established pursuant to section 410(c) of the Communications 
     Act of 1934 (47 U.S.C. 410(c)) and the National Exchange 
     Carriers Association shall report to the Federal 
     Communications Commission and to the Senate Committee on 
     Commerce, Science, and Transportation and the House of 
     Representatives Committee on Energy and Commerce on--
       (1) the effect of reclassifying telecommunications services 
     provided by incumbent local exchange carriers on--

[[Page S4618]]

       (A) the level of support available for universal service;
       (B) the universal service contribution obligations of 
     telecommunications carriers and other providers of 
     telecommunications; and
       (C) the ability of the Commission and State commissions to 
     fulfill the requirements of subsections (b), (h), and (i) of 
     section 254 of the Communications Act of 1934 (47 U.S.C. 
     254);
       (2) the effect on universal service of--
       (A) reducing the availability of network elements provided 
     by incumbent local exchange carriers;
       (B) modifying the rates, terms, and conditions for the 
     purchasing or leasing of such elements; and
       (C) reducing the oversight of the rates, charges, terms, 
     and conditions for the purchasing or leasing of 
     telecommunications services provided by such carriers; and
       (3) the effect of such changes on competition in the 
     provision of telecommunications services.

     SEC. --206. BLOCK GRANTS TO STATES FOR BROADBAND DEPLOYMENT.

       (a) In General.--The Secretary of Commerce shall establish 
     a grant program to provide funding to State and local 
     governments to encourage and support the deployment of 
     broadband technologies and services, particularly in eligible 
     rural communities (as defined in section --201(b)(2)) and 
     eligible underserved communities (as defined in section --
     201(b)(3)).
       (b) Purposes.--State and local governments receiving grants 
     under this section shall use the funds--
       (1) to spur investment in broadband facilities;
       (2) to stimulate deployment of broadband technology and 
     services;
       (3) to encourage the adoption of broadband in eligible 
     rural communities (as defined in section --201(b)(2)) and 
     eligible underserved communities (as defined in section --
     201(b)(3)); and
       (4) to provide e-government services through improved 
     access to government services through broadband Internet 
     connections.
       (c) Applications.--To be eligible to receive a grant under 
     this section, a State or local government shall submit an 
     application to the Secretary at such time, in such manner, 
     and containing such information as the Secretary may require. 
     The Secretary shall establish a procedure for accepting, 
     processing, and evaluating applications and publish an 
     announcement of the procedure, including a statement 
     regarding the availability of funds, in the Federal Register.
       (d) Funding.--The Secretary shall make available from 
     amounts in the Broadband Deployment and Demand Trust Fund 
     $1,000,000,000 for each of fiscal years 2005 through 2009 for 
     grants under this section, of which $250,000,000 shall be 
     made available for each such fiscal year for e-government 
     enhancement activities described in subsection (b)(4) in all 
     communities.

     SEC. --207. GAO TO STUDY BROADBAND DEPLOYMENT IN OTHER 
                   COUNTRIES.

       The Comptroller General shall survey countries with 
     broadband deployment and subscriber rates that are similar 
     to, or greater than, the broadband deployment and subscriber 
     rates in the United States in order to determine the actions 
     governments, carriers, and other parties have taken to 
     facilitate the deployment of broadband (including the factors 
     that encourage consumers to subscribe to broadband service) 
     and report the results of his survey to the Congress by May 
     1, 2005.

     SEC. --208. ASSESSMENT OF HOMELAND SECURITY AND PUBLIC SAFETY 
                   NEEDS IN RURAL AND UNDERSERVED AREAS.

       (a) In General.--No later than 6 months after the date of 
     enactment of this title, the National Telecommunications and 
     Information Administration shall issue a report on the 
     potential role of broadband in rural and underserved areas in 
     addressing homeland security and public safety needs, and, as 
     necessary, make recommendations to enhance deployment to 
     improve emergency response systems.
       (b) Funding.--The Secretary of Commerce shall make 
     available from the Broadband Deployment and Demand Trust Fund 
     up to $500,000 for the study under subsection (a).

SUBTITLE C--RESEARCH ON TECHNICAL AND FINANCIAL REQUIREMENTS FOR FASTER 
                           BROADBAND SERVICES

     SEC. --301. RESEARCH ENHANCEMENT OF BROADBAND 
                   TELECOMMUNICATIONS SERVICES.

       (a) In General.--
       (1) National science board research.--The Director of the 
     National Science Board, without considering any changes in 
     telecommunications regulation, shall research--
       (A) technical changes that would be necessary with respect 
     to wireline, wireless facilities, and satellite facilities to 
     provide broadband telecommunications services in order to 
     provide speeds between 50 megabits-per-second and 100 
     megabits-per-second; and
       (B) the financial cost of ensuring that all Americans have 
     access to broadband services with speeds between 50 megabits-
     per-second and 100 megabits-per-second.
       (2) ITS broadband research.--The Director of the Institute 
     of Telecommunications Sciences of the National 
     Telecommunications and Information Administration, in 
     consultation with the Director of the National Institute of 
     Science and Technology Laboratories, shall engage in research 
     and development--
       (A) of wireline, wireless facilities, and satellite 
     facilities to provide broadband telecommunications services 
     in order to provide speeds between 50 megabits-per-second and 
     100 megabits-per-second;
       (B) of new broadband technologies to meet government and 
     commercial needs; and
       (C) with respect to the technical capabilities of existing 
     technologies to improve their speed, quality, and 
     availability and extend the reach of broadband services to 
     individuals living in rural areas.
       (3) Spectrum-sharing and interference issues.--The Director 
     of the Institute of Telecommunications Sciences shall also 
     conduct research or studies--
       (A) to enhance spectrum-sharing between governmental and 
     private sector users of broadband services;
       (B) to develop technologies that would enable government 
     and private sector users to use spectrum more efficiently; 
     and
       (C) to provide recommendations to the Administrator of the 
     National Telecommunications and Information Administration 
     that would enhance--
       (i) government and private sector spectrum sharing 
     opportunities and coordination; and
       (ii) private sector innovation of new wireless technologies 
     that benefit government and private sector users.
       (b) Consultation and Coordination.--The Directors of the 
     National Science Board, the Institute of Telecommunications 
     Sciences, and the National Institute of Science and 
     Technology Laboratories shall--
       (1) consult with governmental and commercial users of 
     broadband services as appropriate to facilitate research 
     under subsection (a); and
       (2) consult with each other in order to coordinate their 
     activities under subsection (a).
       (c) Results of Research.--The Director shall make available 
     to the public, in such manner as the Director considers 
     appropriate, the results of any research carried out under 
     this section.
       (d) Funding.--The Secretary of Commerce shall make 
     available from amounts in the Broadband Deployment and Demand 
     Trust Fund for each of fiscal years 2005 through 2009 to 
     carry out this section not more than--
       (1) $60,000,000 to the Director of the Institute of 
     Telecommunications Sciences of the National 
     Telecommunications and Information Administration, of which 
     not more than $10,000,000 shall be used to carry out 
     subsection (a)(2);
       (2) $15,000,000 to the Director of the National Institute 
     of Science and Technology Laboratories; and
       (3) $50,000,000 to the Director of the National Science 
     Board.

     SEC. --302. GRANTS TO COLLEGES AND UNIVERSITIES TO RESEARCH 
                   FASTER BROADBAND TECHNOLOGY.

       (a) In General.--The Director of the National Science 
     Foundation shall establish and administer a grant program to 
     fund research at colleges and universities into advancing the 
     technical aspects of broadband technology in order to 
     provide speeds between 50 megabits-per-second and 100 
     megabits-per-second. In carrying out this subsection, the 
     Director shall ensure that grants are geographically 
     distributed nationwide.
       (b) Funding.--The Secretary of Commerce shall make 
     available from amounts in the Broadband Deployment and Demand 
     Trust Fund not more than $50,000,000 for each of fiscal years 
     2005 through 2009 to the National Science Board for purposes 
     of activities under this section.

         Subtitle D--Stimulating Demand for Broadband Services

     SEC.--401. GRANTS TO COLLEGES AND UNIVERSITIES FOR RESEARCH.

       (a) In General.--The National Telecommunications and 
     Information Administration shall establish and administer a 
     grant program to fund research at colleges and universities 
     to develop computer or Internet applications that require 
     broadband facilities and are of particular use to residential 
     consumers.
       (b) Funding.--The Secretary of Commerce shall make 
     available from amounts in the Broadband Deployment and Demand 
     Trust Fund not more than $50,000,000 for each of fiscal years 
     2005 through 2009 for grants under this section.

     SEC.--402. GRANTS TO LIBRARIES TO DIGITIZE COLLECTIONS.

       (a) In General.--The National Telecommunications and 
     Information Administration shall establish and administer a 
     grant program for libraries to enable them to make a record 
     in digital format of their collections.
       (b) Consultation With Knowledgeable Persons.--In making 
     grants under subsection (a), the National Telecommunications 
     and Information Administration shall consult with--
       (1) the Librarian of Congress;
       (2) the Archivist of the United States; and
       (4) representatives of libraries, academic institutions, 
     and other individuals with professional responsibilities 
     related to collection, curation, preservation, and display of 
     books, records, films, and other written or recorded matter 
     of public interest.
       (c) Funding.--The Secretary of Commerce shall make 
     available from amounts in the Broadband Deployment and Demand 
     Trust Fund not more than $100,000,000 for each of fiscal 
     years 2005 through 2009 for grants under this section.

     SEC.--403. GRANTS TO MUSEUMS TO DIGITIZE COLLECTIONS.

       (a) In General.--The National Telecommunications and 
     Information Administration shall establish and administer a

[[Page S4619]]

     grant program for museums to enable them to make a record in 
     digital format of their collections.
       (b) Consultation With Knowledgeable Persons.--In making 
     grants under subsection (a), the National Telecommunications 
     and Information Administration shall consult with--
       (1) the Secretary of the Smithsonian Institution;
       (2) the Chairman of the National Endowment for the Arts;
       (3) the Chairman of the National Endowment for the 
     Humanities; and
       (4) representatives of museums, academic institutions, and 
     other individuals with professional responsibilities related 
     to collection, curation, preservation, and display of objects 
     of significant public interest.
       (c) Funding.--The Secretary of Commerce shall make 
     available from amounts in the Broadband Deployment and Demand 
     Trust Fund not more than $100,000,000 for each of fiscal 
     years 2005 through 2009 for grants under this section.

     SEC.--404. GRANTS FOR DTV CONVERSION AND PROGRAMMING.

       The Secretary of Commerce shall make available from amounts 
     in the Broadband Deployment and Demand Trust Fund not more 
     than $50,000,000 for each of fiscal years 2005 through 2009 
     to the National Telecommunications and Information 
     Administration for grants under the Public Telecommunications 
     Facilities Program for facility upgrades to transmit digital 
     television programming and to develop educational and public 
     interest digital programming.
                                 ______
                                 
  SA 3076. Mr. GRAHAM of Florida submitted an amendment intended to be 
proposed to amendment SA 3048 proposed by Mr. McCain to the bill S. 
150, to make permanent the moratorium on taxes on Internet access and 
multiple and discriminatory taxes on electronic commerce imposed by the 
Internet Tax Freedom Act; which was ordered to lie on the table; as 
follows:

       At the appropriate place, add the following:

     SECTION 1. SHORT TITLE.

       This Act may be cited as the ``Sales and Use Tax Fairness 
     Act''.

     SEC. 2. FINDINGS.

       The Congress finds that--
       (1) the November 12, 2002, Streamlined Sales and Use Tax 
     Agreement establishes minimum requirements for a sales and 
     use tax system that simplifies and harmonizes State sales and 
     use tax laws and administrative procedures; and
       (2) the Agreement, once implemented, will eliminate any 
     undue burden on interstate commerce associated with requiring 
     remote sellers to collect and remit sales and use taxes.

     SEC. 3. SENSE OF THE CONGRESS.

       It is the sense of the Congress that the sales and use tax 
     system established by the Streamlined Sales and Use Tax 
     Agreement provides sufficient simplification and uniformity 
     to warrant Federal authorization to States that are parties 
     to the Agreement to require remote sellers, subject to the 
     conditions provided in this Act, to collect and remit the 
     sales and use taxes of such States and of local taxing 
     jurisdictions of such States.

     SEC. 4. AUTHORIZATION TO REQUIRE COLLECTION OF SALES AND USE 
                   TAXES.

       (a) Grant of Authority.--Once ten States comprising at 
     least twenty percent of the total population of all States 
     imposing a sales tax, as determined by the 2000 Federal 
     census, have petitioned for membership under the Streamlined 
     Sales and Use Tax Agreement in the manner required by the 
     Agreement, have been found to be in compliance with the 
     Agreement pursuant to the terms of the Agreement, and have 
     become Member States under the Agreement, any Member State 
     under the Agreement is authorized, notwithstanding any other 
     provision of law, to require all sellers not qualifying for 
     the small business exception provided under subsection (b) to 
     collect and remit sales and use taxes with respect to remote 
     sales to purchasers located in such State. Such authorization 
     shall terminate if the requirements of the preceding sentence 
     cease to be met. Such authorization shall also terminate for 
     any Member State if such Member State no longer complies with 
     the minimum requirements of the Agreement existing on 
     November 12, 2002, or if such requirements are no longer 
     complied with by ten States that otherwise meet the 
     requirements of this subsection. Determinations regarding 
     compliance with the requirements of this subsection shall be 
     made by the Governing Board (or, where provided by the 
     Agreement, the States petitioning for membership under the 
     Agreement) subject to the governance provisions of Section 5.
       (b) Small Business Exception.--No seller shall be subject 
     to a requirement of any State to collect and remit sales and 
     use taxes with respect to a remote sale where the seller and 
     its affiliates collectively had gross sales nationwide of 
     less than $5,000,000 in the calendar year preceding the date 
     of such sale.
       (c) Reasonable Seller Compensation.--The authority provided 
     in subsection (a) shall be conditioned on acceptance and 
     implementation by all Member States under the Agreement of a 
     requirement that such States provide reasonable and uniform 
     compensation for expenses incurred by sellers related to the 
     collection and remittance of the sales and use taxes of such 
     States.

     SEC. 5. GOVERNANCE.

       (a) Petition.--Any person who may be affected by the 
     Agreement may petition the Governing Board for a 
     determination on any issue relating to the implementation of 
     the Agreement.
       (b) Review in Court of Federal Claims.--Any person who has 
     submitted a petition under subsection (a) may bring an action 
     against the Governing Board in the United States Court of 
     Federal Claims for judicial review of the action of the 
     Governing Board on that petition if--
       (1) The petition related to (A) an issue of whether a State 
     has met or continues to meet the requirements for Member 
     State status under the Agreement, or (B) an issue of whether 
     the Governing Board has performed a non-discretionary duty of 
     the Governing Board under the Agreement; and
       (2) The petition was denied by the Governing Board in whole 
     or in part with respect to that issue, or the Governing Board 
     failed to act on the petition with respect to that issue 
     within six months of the date on which the petition was 
     submitted.
       (c) Timing of Action for Review.--An action for review 
     under this section shall be initiated within 60 days of the 
     Governing Board's denial of the petition as provided in 
     subsection (b), or, if the Governing Board failed to act on 
     the petition as provided in subsection (b), within 90 days 
     following the expiration of the six-month period following 
     the date on which the petition was submitted.
       (d) Standard of Review.--In any action for review under 
     this section, the court shall set aside the actions, 
     findings, and conclusions of the Governing Board found to be 
     arbitrary, capricious, an abuse of discretion, or otherwise 
     not in accordance with law.
       (e) Jurisdiction.--Chapter 91 of Title 28 of the United 
     States Code is amended by adding at the end thereof:

     Sec. 1510. Jurisdiction regarding the Streamlined Sales and 
       Use Tax Agreement

       The United States Court of Federal Claims shall have 
     exclusive jurisdiction over actions for judicial review of 
     determination of the Governing Board of the Streamlined Sales 
     and Use Tax Agreement under the terms and conditions provided 
     in section 5 of the Sales and Tax Fairness Act.

     SEC. 6. LIMITATION.

       (a) In General.--Nothing in this Act shall be construed as 
     subjecting sellers to franchise taxes, income taxes, or 
     licensing requirements of a State or political subdivision 
     thereof, nor shall anything in this Act be construed as 
     affecting the application of such taxes or requirements or 
     enlarging or reducing the authority of any State to impose 
     such taxes or requirements.
       (b) No Effect on Nexus, Etc.--No obligation imposed by 
     virtue of the authority granted by section 4 of this Act 
     shall be considered in determining whether a seller has a 
     nexus with any State for any other tax purpose. Except as 
     provided in Section 4 of this Act, nothing in this Act 
     permits or prohibits a State--
       (1) to license or regulate any person;
       (2) to require any person to qualify to transact intrastate 
     business; or
       (3) to subject any person to State taxes not related to the 
     sale of goods or services.

     SEC. 7. DEFINITIONS.

       For the purposes of this Act--
       (1) Affiliate.--The term ``affiliate'' means any entity 
     that controls, is controlled by, or is under common control 
     with a seller.
       (2) Governing board.--The term ``Governing Board'' means 
     the governing board established by the Streamlined Sales and 
     Use Tax Agreement.
       (3) Member state.--The term ``Member State'' means a member 
     state under the Streamlined Sales and Use Tax Agreement.
       (4) Person.--The term ``person'' means an individual, 
     trust, estate, fiduciary, partnership, corporation, or any 
     other legal entity, and includes a State or local government.
       (5) Remote sale.--The terms ``remote sale'' and ``remote 
     seller'' refer to a sale of goods or services attributed to a 
     particular taxing jurisdiction with respect to which the 
     seller did not have adequate nexus under the law existing on 
     the day before the date of enactment of this Act to allow 
     such jurisdiction to require the seller to collect and remit 
     sales or use taxes with respect to such sale.
       (6) State.--The term ``State'' means any State of the 
     United States of America and includes the District of 
     Columbia.
       (7) Streamlined sales and use tax agreement.--The term 
     ``Streamlined Sales and Use Tax Agreement'' (or ``the 
     Agreement'') means the multistate agreement with the title 
     adopted on November 12, 2002, and as amended from time to 
     time.
                                 ______
                                 
  SA 3077. Mr. LAUTENBERG submitted an amendment intended to be 
proposed by him to the bill S. 150, to make permanent the moratorium on 
taxes on Internet access and multiple and discriminatory taxes on 
electronic commerce imposed by the Internet Tax Freedom Act; which was 
ordered to lie on the table; as follows:

       At the appropriate place, insert the following:

[[Page S4620]]

     SEC. __. GAO STUDY OF EFFECTS OF INTERNET TAX MORATORIUM ON 
                   STATE AND LOCAL GOVERNMENTS AND ON BROADBAND 
                   DEPLOYMENT.

       The Comptroller General shall conduct a study of the impact 
     of the Internet tax moratorium, including its effects on the 
     revenues of State and local governments and on the deployment 
     and adoption of broadband technologies for Internet access 
     throughout the United States, including the impact of the 
     Internet Tax Freedom Act (47 U.S.C. 151 note) on build-out of 
     broadband technology resources in rural under served areas of 
     the country. The study shall compare deployment and adoption 
     rates in States that tax broadband Internet access service 
     with States that do not tax such service, and take into 
     account other factors to determine whether the Internet Tax 
     Freedom Act has had an impact on the deployment or adoption 
     of broadband Internet access services. The Comptroller 
     General shall report the findings, conclusions, and any 
     recommendations from the study to the Senate Committee on 
     Commerce, Science, and Transportation and the House of 
     Representatives Committee on Energy and Commerce no later 
     than November 1, 2005.

                                 ______
                                 
  SA 3078. Mr. LAUTENBERG submitted an amendment intended to be 
proposed to amendment SA 3048 proposed by Mr. McCain to the bill S. 
150, to make permanent the moratorium on taxes on Internet access and 
multiple and discriminatory taxes on electronic commerce imposed by the 
Internet Tax Freedom Act; which was ordered to lie on the table; as 
follows:

       In lieu of the matter proposed to be inserted, insert the 
     following:

     SECTION 1. SHORT TITLE.

       This Act may be cited as the ``Internet Tax 
     Nondiscrimination Act''.

     SEC. 2. TWO-YEAR EXTENSION OF INTERNET TAX MORATORIUM.

       (a) In General.--Subsection (a) of section 1101 of the 
     Internet Tax Freedom Act (47 U.S.C. 151 note) is amended to 
     read as follows:
       ``(a) Moratorium.--No State or political subdivision 
     thereof may impose any of the following taxes during the 
     period beginning November 1, 2003, and ending November 1, 
     2005:
       ``(1) Taxes on Internet access.
       ``(2) Multiple or discriminatory taxes on electronic 
     commerce.''.
       (b) Conforming Amendments.--
       (1) Section 1101 of the Internet Tax Freedom Act (47 U.S.C. 
     151 note) is amended by striking subsection (d) and 
     redesignating subsections (e) and (f) as subsections (d) and 
     (e), respectively.
       (2) Section 1104(10) of the Internet Tax Freedom Act (47 
     U.S.C. 151 note) is amended to read as follows:
       ``(10) Tax on internet access.--
       ``(A) In general.--The term `tax on Internet access' means 
     a tax on Internet access, regardless of whether such tax is 
     imposed on a provider of Internet access or a buyer of 
     Internet access and regardless of the terminology used to 
     describe the tax.
       ``(B) General exception.--The term `tax on Internet access' 
     does not include a tax levied upon or measured by net income, 
     capital stock, net worth, or property value.''.
       (3) Section 1104(2)(B)(i) of the Internet Tax Freedom Act 
     (47 U.S.C. 151 note) is amended by striking ``except with 
     respect to a tax (on Internet access) that was generally 
     imposed and actually enforced prior to October 1, 1998,''.
       (c) Internet Access Service; Internet Access.--
       (1) Internet access service.--Paragraph (3)(D) of section 
     1101(d) (as redesignated by subsection (b)(1) of this 
     section) of the Internet Tax Freedom Act (47 U.S.C. 151 note) 
     is amended by striking the second sentence and inserting 
     ``The term `Internet access service' does not include 
     telecommunications services, except to the extent such 
     services are purchased, used, or sold by a provider of 
     Internet access to provide Internet access.''.
       (2) Internet access.--Section 1104(5) of that Act is 
     amended by striking the second sentence and inserting ``The 
     term `Internet access' does not include telecommunications 
     services, except to the extent such services are purchased, 
     used, or sold by a provider of Internet access to provide 
     Internet access.''.

     SEC. 3. GRANDFATHERING OF STATES THAT TAX INTERNET ACCESS.

       The Internet Tax Freedom Act (47 U.S.C. 151 note) is 
     amended--
       (1) by redesignating section 1104 as section 1105; and
       (2) by inserting after section 1103 the following:

     ``SEC. 1104. GRANDFATHERING OF STATES THAT TAX INTERNET 
                   ACCESS.

       ``(a) Pre-October 1998 Taxes.--
       ``(1) In general.--Section 1101(a) does not apply to a tag 
     on Internet access that was generally imposed and actually 
     enforced prior to October 1, 1998, if, before that date, the 
     tax was authorized by statute and either--
       ``(A) 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
       ``(B) a State or political subdivision thereof generally 
     collected such tax on charges for Internet access.
       ``(2) Termination.--This subsection shall not apply after 
     November 1, 2005.
       ``(b) Pre-November 2003 Taxes.--
       ``(1) In general.--Section 1101(a) does not apply to a tax 
     on Internet access that was generally imposed and actually 
     enforced as of November 1, 2003, if, as of that date, the tax 
     was authorized by statute and--
       ``(A) a provider of Internet access services had a 
     reasonable opportunity to know by virtue of a public 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; and
       ``(B) a State or political subdivision thereof generally 
     collected such tax on charges for Internet access.
       ``(2) Termination.--This subsection shall not apply after 
     November 1, 2005.''.

     SEC. 4. ACCOUNTING RULE.

       The Internet Tax Freedom Act (47 U.S.C. 151 note) is 
     amended by adding at the end the following:

     ``SEC. 1106. ACCOUNTING RULE.

       ``(a) In General.--If charges for Internet access are 
     aggregated with and not separately stated from charges for 
     telecommunications services or other charges that are subject 
     to taxation, then the charges for Internet access may be 
     subject to taxation unless the Internet access provider can 
     reasonably identify the charges for Internet access from its 
     books and records kept in the regular course of business.
       ``(b) Definitions.--In this section:
       ``(1) Charges for internet access.--The term `charges for 
     Internet access' means all charges for Internet access as 
     defined in section 1105(5).
       ``(2) Charges for telecommunications services.--The term 
     `charges for telecommunications services' means all charges 
     for telecommunications services, except to the extent such 
     services are purchased, used, or sold by a provider of 
     Internet access to provide Internet access.''.

     SEC. 5. EFFECT ON OTHER LAWS.

       The Internet Tax Freedom Act (47 U.S.C. 151 note), as 
     amended by section 4, is amended by adding at the end the 
     following:

     ``SEC. 1107. EFFECT ON OTHER LAWS.

       ``(a) Universal Service.--Nothing in this Act shall prevent 
     the imposition or collection of any fees or charges used to 
     preserve and advance Federal universal service or similar 
     State programs--
       ``(1) authorized by section 254 of the Communications Act 
     of 1934 (47 U.S.C. 254); or
       ``(2) in effect on February 8, 1996.
       ``(b) 911 and E-911 Services.--Nothing in this Act shall 
     prevent the imposition or collection, on a service used for 
     access to 911 or E-911 services, of any fee or charge 
     specifically designated or presented as dedicated by a State 
     or political subdivision thereof for the support of 911 or E-
     911 services if no portion of the revenue derived from such 
     fee or charge is obligated or expended for any purpose other 
     than support of 911 or E-911 services.
       ``(c) Non-Tax Regulatory Proceedings.--Nothing in this Act 
     shall be construed to affect any Federal or State regulatory 
     proceeding that is not related to taxation.''.

     SEC. 6. EXCEPTION FOR VOICE AND OTHER SERVICES OVER THE 
                   INTERNET.

       The Internet Tax Freedom Act (47 U.S.C. 151 note), as 
     amended by section 5, is amended by adding at the end the 
     following:

     ``SEC. 1108. EXCEPTION FOR VOICE AND OTHER SERVICES OVER THE 
                   INTERNET.

       ``Nothing in this Act shall be construed to affect the 
     imposition of tax on a charge for voice or any other service 
     utilizing Internet Protocol or any successor protocol. This 
     section shall not apply to Internet access or to any services 
     that are incidental to Internet access, such as e-mail, text 
     instant messaging, and instant messaging with voice 
     capability.''.

     SEC. 7. EFFECTIVE DATE.

       The amendments made by this Act take effect on November 1, 
     2003.
                                 ______
                                 
  SA 3079. Mr. GRAHAM of Florida submitted an amendment intended to be 
proposed to amendment SA 3048 proposed by Mr. McCain to the bill S. 
150, to make permanent the moratorium on taxes on Internet access and 
multiple and discriminatory taxes on electronic commerce imposed by the 
Internet Tax Freedom Act; which was ordered to lie on the table; as 
follows:

       At the appropriate place in Amdt. No. 3048, insert the 
     following:

     SEC. __. SENSE OF THE SENATE.

       (a) Findings.--The Senate finds that the Unfunded Mandates 
     Reform Act of 1995 (P.L. 104-4) was passed--
       (1) ``to end the imposition, in the absence of full 
     consideration by Congress, of Federal mandates on State, 
     local, and tribal governments without adequate Federal 
     funding, in a manner that may displace other essential State, 
     local, and tribal governmental priorities'';
       (2) to provide ``for the development of information about 
     the nature and size of mandates in proposed legislation'';
       (3) ``to establish a point-of-order vote on the 
     consideration in the Senate and House of Representatives of 
     legislation containing significant Federal intergovernmental 
     mandates without providing adequate funding to comply with 
     such mandates'';

[[Page S4621]]

       (4) to require that ``Federal agencies prepare and consider 
     better estimates of the budgetary impact of regulations 
     containing Federal mandates upon State, local, and tribal 
     governments before adopting such regulations, and ensuring 
     that small governments are given special consideration in 
     that process''; and
       (5) to establish the general rule that Congress shall not 
     impose Federal mandates on State, local, and tribal 
     governments without providing adequate funding to comply with 
     such mandates.
       (b) Sense of the Senate.--It is the sense of the Senate 
     that--
       (1) the Unfunded Mandates Reform Act of 1995 constituted an 
     important pledge on the part of the Federal Government, in 
     general, and Congress, in particular, to refrain from 
     imposing Federal mandates on State, local, and tribal 
     governments without providing adequate resources to 
     compensate State, local, and tribal governments for the cost 
     of complying with such mandates;
       (2) at this time when State, local, and tribal governments 
     are struggling to cope with the worst State and local fiscal 
     crisis since World War II, it is urgently important that 
     Congress adhere to its commitments under the Unfunded 
     Mandates Reform Act of 1995; and
       (3) Congress should not pass laws mandating that States or 
     localities spend new money or forgo collecting currently 
     collected revenues, unless Congress--
       (A) has clear and precise estimates of the budgetary 
     impacts of such mandates upon States, local governments, and 
     tribal governments; and
       (B) provides adequate funding to cover the cost to States 
     and localities of complying with such mandates.
                                 ______
                                 
  SA 3080. Mr. ENZI submitted an amendment intended to be proposed by 
him to the bill S. 150, to make permanent the moratorium on taxes on 
Internet access and multiple and discriminatory taxes on electronic 
commerce imposed by the Internet Tax Freedom Act; which was ordered to 
lie on the table; as follows:

       In lieu of the matter proposed to be inserted, insert the 
     following:

     SECTION 1. EXTENSION OF THE INTERNET TAX FREEDOM ACT.

       Section 1101(a) of the Internet Tax Freedom Act (47 U.S.C. 
     151 note) is amended by striking ``November 1, 2003'' and 
     inserting ``May 31, 2005''.
                                 ______
                                 
  SA 3081. Mr. ENZI submitted an amendment intended to be proposed by 
him to the bill S. 150, to make permanent the moratorium on taxes on 
Internet access and multiple and discriminatory taxes on electronic 
commerce imposed by the Internet Tax Freedom Act; which was ordered to 
lie on the table; as follows:

       Strike all after the first word and insert the following:

     1. EXTENSION OF THE INTERNET TAX FREEDOM ACT.

       Section 1101(a) of the Internet Tax Freedom Act (47 U.S.C. 
     151 note) is amended by striking ``November 1, 2003'' and 
     inserting ``June 1, 2005''.
                                 ______
                                 
  SA 3082. Mr. LOTT submitted an amendment intended to be proposed to 
amendment SA 3048 proposed by Mr. McCain to the bill S. 150, to make 
permanent the moratorium on taxes on Internet access and multiple and 
discriminatory taxes on electronic commerce imposed by the Internet Tax 
Freedom Act; which was ordered to lie on the table; as follows:

       On page 5, line 2, strike ``2006'' and insert ``2007''.

                          ____________________