[Congressional Record Volume 150, Number 57 (Thursday, April 29, 2004)]
[Senate]
[Pages S4670-S4671]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                   INTERNET TAX NONDISCRIMINATION ACT

  Mrs. HUTCHISON. Mr. President, I voted for the bill that has just 
passed because I have said all along I am against taxing Internet 
access. I think it is a disruption of interstate commerce. I have said 
that all along.
  The reason I have been concerned about this bill is I have been very 
afraid that the city franchise taxes that are collected in my State of 
Texas were somehow going to be brought into the bill. I have now been 
working with the Senate leaders, the managers of the bill, Senators 
McCain, Allen, Wyden, and Senator Dorgan, to assure that it was not the 
intent to take the Texas franchise fee, which is called an access line 
fee in Texas, to be included in the ban on Internet access. It is not 
Internet access; it is a franchise fee.
  I very much hope we can clarify the record on this point and assure 
that in conference the definition will be clear so it will be 
recognized under Federal law 47 U.S.C., section 1104(8)(B), that the 
Texas access line fee is included as a franchise fee or similar fee, 
and included in the exceptions from the definition of tax.
  I hope we have an assurance from the managers of the bill that this 
Texas access line fee, which is a franchise fee, would not be included 
within the definition of Internet access tax.
  Mr. WYDEN. Will the Senator yield?
  Mrs. HUTCHISON. I am happy to yield.
  Mr. WYDEN. I am glad to work with the Senator. I wish to consult with 
the chairman and also Senator Allen, but it has always been our 
intent--and as the prime Senate sponsor of the law back in 1998 it was 
always my intent--that franchise fees not be affected by the Internet 
tax moratorium.

[[Page S4671]]

  As the Senator has correctly noted, I say to the distinguished 
Senator from Texas, Texas has changed the name of its franchise fee to 
an access line fee. It was never our intention that franchise fees be 
affected by the moratorium.
  I am very happy to work with the Senator from Texas on it. I will 
have to consult with the Senator from Virginia, but he has always been 
very gracious working with our colleagues. The two of us will be 
consulting with the chairman of the committee. I want to make it clear 
I am very anxious to accommodate the distinguished Senator from Texas.
  Mr. ALLEN. Will the Senator from Texas yield?
  Mrs. HUTCHISON. I am happy to yield to the Senator from Virginia.
  Mr. ALLEN. Mr. President, I state for the record that I concur with 
the Senator from Oregon, Mr. Wyden, and the Senator from Texas, Mrs. 
Hutchison, that my intent as the author of the underlying bill, S. 150, 
is to prevent taxation of Internet access. Any modifications to the 
definition of Internet access taxes are not intended to include 
payments for franchising fees as described in section 1104(8)(B), 
including Texas' access line fees. I believe it is accurate to say the 
exemption for any franchise fee or similar fee in the definition of tax 
in section 1104(8)(B) of title 47 of the United States Code includes 
the tax line fees as established in Texas in 1999.
  I thank the Senator from Texas for her strong advocacy for the people 
of Texas, making sure that this is brought up. I can assure the Senator 
from Texas that the Senator from Oregon and I, as this goes into 
conference, will work to make sure that express intent is effectuated 
when this measure comes back and is signed into law.
  Mr. McCAIN. I want to join my colleagues Senators Allen, Wyden and 
Hutchison to include Texas access line fees collected by cities and 
local governments in the exception to the definition of ``tax'' in 47 
U.S.C. section 1104(8).
  Mrs. HUTCHISON. Mr. President, I thank the Senators from Virginia and 
Oregon, and say that I also have the assurance from Senator McCain and 
Senator Dorgan that in the conference this issue will be addressed. It 
is a Texas-only issue, as I understand. It is a franchise fee but it is 
called an access line fee after Texas law was changed in 1999, which is 
why the moratorium puts it in question.
  I would like to assure that we get this definition in conference. I 
know now, from talking to the four managers, that it was not the 
intention to take our access fee as a part of the major bill, but in 
fact treat it as a franchise fee, which is what it is.
  I yield the floor.
  The PRESIDING OFFICER. The Senator from Alaska.

                          ____________________