```

[Congressional Bills 107th Congress]
[From the U.S. Government Publishing Office]
[H.R. 1542 Reported in House (RH)]

                                                  Union Calendar No. 54
107th CONGRESS
  1st Session
                                H. R. 1542

                  [Report No. 107-83, Parts I and II]

To deregulate the Internet and high speed data services, and for other 
                               purposes.

_______________________________________________________________________

                    IN THE HOUSE OF REPRESENTATIVES

                             April 24, 2001

 Mr. Tauzin (for himself, Mr. Dingell, Mr. Goodlatte, Mr. Boucher, Mr. 
English, Mr. Frost, Mr. Smith of Washington, Mr. Lucas of Kentucky, Mr. 
Whitfield, Mr. Murtha, Mr. Collins, Mr. Blagojevich, Mr. Fossella, Mr. 
 Dicks, Mr. Gillmor, Mr. Barton of Texas, Mr. Kind, Mr. Greenwood, Mr. 
Meeks of New York, Mr. Camp, Mr. Baldacci, Mr. Rahall, Mr. Holden, Mrs. 
McCarthy of New York, Mr. Brady of Pennsylvania, Mr. Simpson, Mr. Boyd, 
  Mrs. Northup, Mr. Engel, Mr. Sandlin, Mr. Everett, Mr. Boehner, Mr. 
  Reynolds, Mr. Weldon of Pennsylvania, Mr. Sessions, Mr. Bonior, Mr. 
  Maloney of Connecticut, Mr. Buyer, Mr. Cunningham, Mr. McCrery, Mr. 
Bishop, Mr. Lampson, Mr. Vitter, Mr. Bass, Mr. Ackerman, Mr. Blunt, Mr. 
 McHugh, Mr. Ryan of Wisconsin, Mr. Quinn, Mr. Baca, Mr. Gonzalez, Mr. 
   Baker, Mr. Walsh, Mr. Green of Texas, Mr. Wexler, Mr. Oxley, Mr. 
 Radanovich, Mr. Diaz-Balart, Mr. Cooksey, Mr. Clement, Mr. Larsen of 
Washington, Mr. Schrock, Mr. Petri, Mr. Watkins, Ms. Ros-Lehtinen, Mr. 
 Hilliard, Mr. Otter, Mr. Shadegg, Mr. Bryant, Mr. Platts, Mr. Putnam, 
 Mr. Cummings, Mr. Rodriguez, Mr. Condit, Mr. Burr of North Carolina, 
and Mr. Wynn) introduced the following bill; which was referred to the 
                    Committee on Energy and Commerce

                              May 24, 2001

   Reported by the Committee on Energy and Commerce with an amendment
 [Strike out all after the enacting clause and insert the part printed 
                               in italic]

                              May 24, 2001

  Referred to the Committee on the Judiciary for a period ending not 
 later than June 18, 2001 for consideration of such provisions of the 
bill and amendment recommended by the Committee on Energy and Commerce 
as proposed to narrow the purview of the Attorney General under section 
                 271 of the Communications Act of 1934

                             June 18, 2001

Additional sponsors: Mr. Sweeney, Mr. Grucci, Mr. Turner, Mr. Gallegly, 
Mr. Bachus, Mr. Foley, Ms. Granger, Mr. Crowley, Mr. Levin, Mr. Rangel, 
 Mr. Visclosky, Mr. Hilleary, Mr. Bonilla, Mr. Fletcher, Mr. Bentsen, 
 Mr. Riley, Mr. Reyes, Mr. Berry, Mr. Shows, Ms. Brown of Florida, Mr. 
Weldon of Florida, Ms. Baldwin, Mr. Tancredo, Mrs. Meek of Florida, Mr. 
   Hayes, Mr. Ross, Mr. LaHood, Mr. Acevedo-Vila, Mr. Mollohan, Mr. 
Hastings of Florida, Mr. Ortiz, Mr. Kildee, Mr. Allen, Mr. Serrano, Mr. 
    Brown of South Carolina, Mr. Smith of Texas, and Mr. LaTourette

                             June 18, 2001

    Reported with amendments, adversely, from the Committee on the 
 Judiciary, committed to the Committee of the Whole House on the State 
                of the Union, and ordered to be printed
[Omit the part struck through in italic and insert the part printed in 
                            boldface roman]
 [For text of introduced bill, see copy of bill as introduced on April 
                               24, 2001]

_______________________________________________________________________

                                 A BILL

 
To deregulate the Internet and high speed data services, and for other 
                               purposes.

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

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Internet Freedom and Broadband 
Deployment Act of 2001''.

 SEC. 2. FINDINGS AND PURPOSE.

    (a) Findings.--Congress finds the following:
            (1) Internet access services are inherently interstate and 
        international in nature, and should therefore not be subject to 
        regulation by the States.
            (2) The imposition of regulations by the Federal 
        Communications Commission and the States has impeded the rapid 
        delivery of high speed Internet access services and Internet 
        backbone services to the public, thereby reducing consumer 
        choice and welfare.
            (3) The Telecommunications Act of 1996 represented a 
        careful balance between the need to open up local 
        telecommunications markets to competition and the need to 
        increase competition in the provision of interLATA voice 
        telecommunications services.
            (4) In enacting the prohibition on Bell operating company 
        provision of interLATA services, Congress recognized that 
        certain telecommunications services have characteristics that 
        render them incompatible with the prohibition on Bell operating 
        company provision of interLATA services, and exempted such 
        services from the interLATA prohibition.
            (5) High speed data services and Internet backbone services 
        constitute unique markets that are likewise incompatible with 
        the prohibition on Bell operating company provision of 
        interLATA services.
            (6) Since the enactment of the Telecommunications Act of 
        1996, the Federal Communications Commission has construed the 
        prohibition on Bell operating company provision of interLATA 
        services in a manner that has impeded the development of 
        advanced telecommunications services, thereby limiting consumer 
        choice and welfare.
            (7) Internet users should have choice among competing 
        Internet service providers.
            (8) Internet service providers should have the right to 
        interconnect with high speed data networks in order to provide 
        service to Internet users.
    (b) Purposes.--It is therefore the purpose of this Act to provide 
market incentives for the rapid delivery of advanced telecommunications 
services--
            (1) by deregulating high speed data services, Internet 
        backbone services, and Internet access services;
            (2) by clarifying that the prohibition on Bell operating 
        company provision of interLATA services does not extend to the 
        provision of high speed data services and Internet backbone 
        services;
            (3) by ensuring that consumers can choose among competing 
        Internet service providers; and
            (4) by ensuring that Internet service providers can 
        interconnect with competitive high speed data networks in order 
        to provide Internet access service to the public.

 SEC. 3. DEFINITIONS

    (a) Amendments.--Section 3 of the Communications Act of 1934 (47 
U.S.C. 153) is amended--
            (1) by redesignating paragraph (20) as paragraph (21);
            (2) by redesignating paragraphs (21) through (52) as 
        paragraphs (26) through (57), respectively;
            (3) by inserting after paragraph (19) the following new 
        paragraph:
            ``(20) High speed data service.--The term `high speed data 
        service' means any service that consists of or includes the 
        offering of a capability to transmit, using a packet-switched 
        or successor technology, information at a rate that is 
        generally not less than 384 kilobits per second in at least one 
        direction. Such term does not include special access service 
        offered through dedicated transport links between a customer's 
        premises and an interexchange carrier's switch or point of 
        presence.'';
            (4) by inserting after paragraph (21) the following new 
        paragraphs:
            ``(22) Internet.--The term `Internet' means collectively 
        the myriad of computer and telecommunications facilities, 
        including equipment and operating software, which comprise the 
        interconnected world-wide network of networks that employ the 
        Transmission Control Protocol/Internet Protocol, or any 
        predecessor or successor protocols to such protocol, to 
        communicate information of all kinds by wire or radio.
            ``(23) Internet access service.--The term `Internet access 
        service' means a service that combines computer processing, 
        information storage, protocol conversion, and routing with 
        transmission to enable users to access Internet content and 
        services.
            ``(24) Internet backbone.--The term `Internet backbone' 
        means a network that carries Internet traffic over high-
        capacity long-haul transmission facilities and that is 
        interconnected with other such networks via private peering 
        relationships.
            ``(25) Internet backbone service.--The term `Internet 
        backbone service' means any interLATA service that consists of 
        or includes the transmission by means of an Internet backbone 
        of any packets, and shall include related local 
        connectivity.''.
    (b) Conforming Amendments.--
            (1) Section 230(f) of the Communications Act of 1934 (47 
        U.S.C. 230(f)) is amended--
                    (A) by striking paragraph (1); and
                    (B) by redesignating paragraphs (2) through (4) as 
                paragraphs (1) through (3), respectively.
            (2) Section 223(h)(2) of such Act (47 U.S.C. 223(h)(2)) is 
        amended by striking ``230(f)(2)'' and inserting ``230(f)(1)''.

 SEC. 4. LIMITATION ON AUTHORITY TO REGULATE HIGH SPEED DATA SERVICES.

    (a) In General.--Part I of title II of the Communications Act of 
1934 (47 U.S.C. 201 et seq.) is amended by adding at the end the 
following new section:

``SEC. 232. PROVISION OF HIGH SPEED DATA SERVICES.

    ``(a) Freedom From Regulation.--Except to the extent that high 
speed data service, Internet backbone service, and Internet access 
service are expressly referred to in this Act, neither the Commission, 
nor any State, shall have authority to regulate the rates, charges, 
terms, or conditions for, or entry into the provision of, any high 
speed data service, Internet backbone service, or Internet access 
service, or to regulate any network element to the extent it is used in 
the provision of any such service; nor shall the Commission impose or 
require the collection of any fees, taxes, charges, or tariffs upon 
such service.
    ``(b) Savings Provision.--Nothing in this section shall be 
construed to limit or affect the authority of any State to regulate 
circuit-switched telephone exchange services, nor affect the rights of 
cable franchise authorities to establish requirements that are 
otherwise consistent with this Act.
    ``(c) Continued Enforcement of ESP Exemption, Universal Service 
Rules Permitted.--Nothing in this section shall affect the ability of 
the Commission to retain or modify--
            ``(1) the exemption from interstate access charges for 
        enhanced service providers under Part 69 of the Commission's 
        regulations, and the requirements of the MTS/WATS Market 
        Structure Order (97 FCC 2d 682, 715 (1983)); or
            ``(2) rules issued pursuant to section 254.''.
    (b) Conforming Amendment.--Section 251 of the Communications Act of 
1934 (47 U.S.C. 251) is amended by adding at the end thereof the 
following new subsection:
    ``(j) Exemption.--
            ``(1) Access to network elements for high speed data 
        service.--
                    ``(A) Limitation.--Subject to subparagraphs (B), 
                (C), and (D) of this paragraph, neither the Commission 
                nor any State shall require an incumbent local exchange 
                carrier to provide unbundled access to any network 
                element for the provision of any high speed data 
                service.
                    ``(B) Preservation of regulations and line sharing 
                order.--Notwithstanding subparagraph (A), the 
                Commission shall, to the extent consistent with 
                subsections (c)(3) and (d)(2), require the provision of 
                unbundled access to those network elements described in 
                section 51.319 of the Commission's regulations (47 
                C.F.R. 51.319), as--
                            ``(i) in effect on January 1, 1999; and
                            ``(ii) subject to subparagraphs (C) and 
                        (D), as modified by the Commission's Line 
                        Sharing Order.
                    ``(C) Exceptions to preservation of line sharing 
                order.--
                            ``(i) Unbundled access to remote terminal 
                        not required.--An incumbent local exchange 
                        carrier shall not be required to provide 
                        unbundled access to the high frequency portion 
                        of the loop at a remote terminal.
                            ``(ii) Charges for access to high frequency 
                        portion.--The Commission and the States shall 
                        permit an incumbent local exchange carrier to 
                        charge requesting carriers for the high 
                        frequency portion of a loop an amount equal to 
                        which such incumbent local exchange carrier 
                        imputes to its own high speed data service.
                    ``(D) Limitations on reinterpretation of line 
                sharing order.--Neither the Commission nor any State 
                Commission shall construe, interpret, or reinterpret 
                the Commission's Line Sharing Order in such manner as 
                would expand an incumbent local exchange carrier's 
                obligation to provide access to any network element for 
                the purpose of line sharing.
                    ``(E) Authority to reduce elements subject to 
                requirement.--This paragraph shall not prohibit the 
                Commission from modifying the regulation referred to in 
                subparagraph (B) to reduce the number of network 
                elements subject to the unbundling requirement, or to 
                forbear from enforcing any portion of that regulation 
                in accordance with the Commission's authority under 
                section 706 of the Telecommunications Act of 1996, 
                notwithstanding any limitation on that authority in 
                section 10 of this Act.
                    ``(F) Prohibition on discriminatory subsidies.--Any 
                network element used in the provision of high speed 
                data service that is not subject to the requirements of 
                subsection (c) shall not be entitled to any subsidy, 
                including any subsidy pursuant to section 254, that is 
                not provided on a nondiscriminatory basis to all 
                providers of high speed data service and Internet 
                access service. This prohibition on discriminatory 
                subsidies shall not be interpreted to authorize or 
                require the extension of any subsidy to any provider of 
                high speed data service or Internet access service.
            ``(2) Resale.--For a period of three years after the 
        enactment of this subsection, an incumbent local exchange 
        carrier that provides high speed data service shall have a duty 
        to offer for resale any such service at wholesale rates in 
        accordance with subsection (c)(4). After such three-year 
        period, such carrier shall offer such services for resale 
        pursuant to subsection (b)(1).
            ``(3) Definitions.--For purposes of this subsection--
                    ``(A) the `Commission's Line Sharing Order' means 
                the Third Report and Order in CC Docket No. 98-147 and 
                the Fourth Report and Order in CC Docket 96-98 (FCC 99-
                355), as adopted November 18, 1999, and without regard 
                to any clarification or interpretation in the further 
                notice of proposed rulemaking in such Dockets adopted 
                January 19, 2001 (FCC 01-26); and
                    ``(B) the term `remote terminal' means an 
                accessible terminal located outside of the 
central office to which analog signals are carried from customer 
premises, in which such signals are converted to digital, and from 
which such signals are carried, generally over fiber, to the central 
office.''.
    (c) Preservation of Existing Interconnection Agreements.--Nothing 
in the amendments made by this section--
            (1) shall be construed to permit or require the abrogation 
        or modification of any interconnection agreement in effect on 
        the date of enactment of this section during the term of such 
        agreement, except that this paragraph shall not apply to any 
        interconnection agreement beyond the expiration date of the 
        existing current term contained in such agreement on the date 
        of enactment of this section, without regard to any extension 
        or renewal of such agreement; or
            (2) affects the implementation of any change of law 
        provision in any such agreement.

SEC. 5. INTERNET CONSUMERS FREEDOM OF CHOICE.

    Part I of title II of the Communications Act of 1934, as amended by 
section 4, is amended by adding at the end the following new section:

``SEC. 233. INTERNET CONSUMERS FREEDOM OF CHOICE.

    ``(a) Purpose.--It is the purpose of this section to ensure that 
Internet users have freedom of choice of Internet service provider.
    ``(b) Obligations of Incumbent Local Exchange Carriers.--Each 
incumbent local exchange carrier has the duty to provide--
            ``(1) Internet users with the ability to subscribe to and 
        have access to any Internet service provider that interconnects 
        with such carrier's high speed data service;
            ``(2) any Internet service provider with the right to 
        acquire the facilities and services necessary to interconnect 
        with such carrier's high speed data service for the provision 
        of Internet access service;
            ``(3) any Internet service provider with the ability to 
        collocate equipment in accordance with the provisions of 
        section 251, to the extent necessary to achieve the objectives 
        of paragraphs (1) and (2) of this subsection; and
            ``(4) any provider of high speed data services, Internet 
        backbone service, or Internet access service with special 
        access for the provision of Internet access service within a 
        period no longer than the period in which such incumbent local 
        exchange carrier provides special access to itself or any 
        affiliate for the provision of such service.
    ``(c) Definitions.--As used in this section--
            ``(1) Internet service provider.--The term `Internet 
        service provider' means any provider of Internet access 
        service.
            ``(2) Incumbent local exchange carrier.--The term 
        `incumbent local exchange carrier' has the same meaning as 
        provided in section 251(h).
            ``(3) Special access service.--The term `special access 
        service' means the provision of dedicated transport links 
        between a customer's premises and the switch or point of 
        presence of a high speed data service provider, Internet 
        backbone service provider, or Internet service provider.''.

SEC. 6. INCIDENTAL INTERLATA PROVISION OF HIGH SPEED DATA AND INTERNET 
              BACKBONE SERVICES.

    (a) Incidental InterLATA Service Permitted.--Section 271(g) of the 
Communications Act of 1934 (47 U.S.C. 271(g)) is amended--
            (1) by striking ``or'' at the end of paragraph (5);
            (2) by striking the period at the end of paragraph (6) and 
        inserting ``; or''; and
            (3) by adding at the end thereof the following new 
        paragraph:
            ``(7) of high speed data service or Internet backbone 
        service, subject to subsection (l).''.
    (b) Prohibition on Provision of Voice Telephone Services.--Section 
271 of such Act is amended by adding at the end thereof the following 
new subsection:
    ``(k) Prohibition on Provision of Voice Telephone Services.--Until 
the date on which a Bell operating company is authorized to offer 
interLATA services originating in an in-region State in accordance with 
the provisions of this section, such Bell operating company offering 
any high speed data service or Internet backbone service pursuant to 
the provisions of paragraph (7) of subsection (g) may not, in such in-
region State provide interLATA voice telecommunications service, 
regardless of whether there is a charge for such service, by means of 
the high speed data service or Internet backbone service provided by 
such company.''.
    (c) Application Prerequisite to Providing High Speed Data Service 
or Internet Backbone Service.--Section 271 of the Communications Act of 
1934 (47 U.S.C. 271), as amended by subsection (b), is amended by 
adding at the end the following:
    ``(l) Application Prerequisite to Providing High Speed Data Service 
or Internet Backbone Service.--
            ``(1) Requirement to file application with attorney general 
        of the united states.--Neither a Bell operating company, nor 
        any affiliate of a Bell operating company, may begin providing 
        high speed data service or Internet backbone service in any in-
        region State under the authority of subsection (g)(7)--
                    ``(A) unless it files with the Attorney General of 
                the United States an application to provide such 
                service; and
                    ``(B) until the Attorney General --
                            ``(i) approves such application before the 
                        expiration of the 90-day period beginning on 
                        the date such application is filed; or
                            ``(ii) fails to approve or to disapprove 
                        such application during such 90-day period.
            ``(2) Authority of attorney general.--The Attorney General 
        of the United States--
                    ``(A) may issue rules to establish requirements 
                applicable to the form and contents of applications 
                filed under paragraph (1);
                    ``(B) may make recommendations to an applicant 
                regarding--
                            ``(i) withdrawal of an application filed 
                        under paragraph (1); or
                            ``(ii) filing of an application under 
                        paragraph (1), with or without modifications, 
                        subsequent to the withdrawal of an application 
                        filed under such paragraph; and
                    ``(C) may not approve an application filed in 
                compliance with this subsection unless the Attorney 
                General determines that the applicant has demonstrated 
                that it meets the substantive requirements of 
                subsections (c) and (d) with respect to high speed data 
                service or Internet backbone service in the State for 
                which such application is filed.
            ``(3) Withdrawal of application.--An application filed 
        under paragraph (1) may be withdrawn by the applicant at any 
        time before the Attorney General approves or disapproves such 
        application, but may not be modified after being filed.''.
    <DELETED>(c)</DELETED> (d) Conforming Amendments.--
            (1) Section 272(a)(2)(B)(i) of such Act is amended to read 
        as follows:
                            ``(i) incidental interLATA services 
                        described in paragraphs (1), (2), (3), (5), 
                        (6), and (7) of section 271(g);''.
            (2) Section 272(a)(2)(C) of such Act is repealed.
    (e) Continued Full Application of the Antitrust Laws to Matters 
Involved in the Telecommunications Industry.--Section 601(b) of the 
Telecommunications Act of 1996 (47 U.S.C. 152 note) is amended by 
adding at the end the following:
            ``(4) Continuing operation of the antitrust laws.--The 
        rights, obligations, powers, and remedies provided under the 
        antitrust laws are in addition to, and are--
                    ``(A) not preempted by;
                    ``(B) not inconsistent with; and
                    ``(C) not incompatible with;
        any of the rights, obligations, powers, and remedies provided 
        under the Communications Act of 1934 (47 U.S.C. 151 et seq.), 
        under this Act, or under any law amended by either such Act, 
        regardless of the progress of competition in any market.''.

SEC. 7. DEPLOYMENT OF BROADBAND SERVICES.

    Part III of title II of the Communications Act of 1934 is amended 
by inserting after section 276 (47 U.S.C. 276) the following new 
section:

``SEC. 277. DEPLOYMENT OF BROADBAND SERVICES.

    ``(a) Deployment Required.--Each Bell operating company and its 
affiliates shall deploy high speed data services in each State in which 
such company or affiliate is an incumbent local exchange carrier (as 
such term is defined in section 251(h)) in accordance with the 
requirements of this section.
    ``(b) Deployment Requirements.--
            ``(1) Mileposts for deployment.--A Bell operating company 
        or its affiliate shall deploy high speed data services by 
        attaining high speed data capability in its central offices in 
        each State to which subsection (a) applies. Such company or 
        affiliate shall attain such capability in accordance with the 
        following schedule:
                    ``(A) Within one year after the date of enactment 
                of this section, such company or affiliate shall attain 
                high speed data capability in not less than 20 percent 
                of such central offices in such State.
                    ``(B) Within 2 years after the date of enactment of 
                this section, such company or affiliate shall attain 
                high speed data capability in not less than 40 percent 
                of such central offices in such State.
                    ``(C) Within 3 years after the date of enactment of 
                this section, such company or affiliate shall attain 
                high speed data capability in not less than 70 percent 
                of such central offices in such State.
                    ``(D) Within 5 years after the date of enactment of 
                this section, such company or affiliate shall attain 
                high speed data capability in not less than 100 percent 
                of such central offices in such State.
            ``(2) High speed data capability.--For purposes of 
        paragraph (1), a central office shall be considered to have 
        attained high speed capability if--
                    ``(A)(i) such central office is equipped with high 
                speed data multiplexing capability; and
                    ``(ii) each upgradeable customer loop that 
                originates or terminates in such central office is 
                upgraded promptly upon receipt of a customer request 
                for such upgrading, as necessary to permit transmission 
                of high speed data service (including any conditioning 
                of the loop);
                    ``(B) each customer served by such central office 
                (without regard to the upgradeability or length of the 
                customer's loop) is able to obtain the provision of 
                high speed data service from such Bell operating 
                company or its affiliate by means of an alternative 
                technology that does not involve the use of the 
                customer's loop; or
                    ``(C) each such customer is able to obtain the 
                provision of high speed data service by one or the 
                other of the means described in subparagraphs (A) and 
                (B).
            ``(3) Upgradeable loops.--For purposes of paragraph (2), a 
        customer loop is upgradeable if--
                    ``(A) such loop is less than 15,000 feet in length 
                (from the central office to the customer's premises 
                along the line); and
                    ``(B) such loop can, with or without conditioning, 
                transmit high speed data services without such 
                transmission on such loop causing significant 
                degradation of voice service.
    ``(c) Availability of Remedies.--
            ``(1) Forfeiture penalties.--A Bell operating company or 
        its affiliate that fails to comply with this section shall be 
        subject to the penalties provided in section 503(b)(2). In 
        determining whether to impose a forfeiture penalty, and in 
        determining the amount of any forfeiture penalty under section 
        503(b)(2)(D), the Commission shall take into consideration the 
        extent to which the requirements of this section are 
        technically infeasible.
            ``(2) Jurisdiction.--The Commission shall have exclusive 
        jurisdiction to enforce the requirements of this section, 
        except that any State commission may file a complaint with the 
        Commission seeking the imposition of penalties as provided in 
        paragraph (1).
    ``(d) Annual Report on Deployment.--
            ``(1) Analysis required.--The Commission shall include in 
        each of its annual reports submitted no more than 18 months 
        after the date of enactment of this section an analysis of the 
        deployment of high speed data service to underserved areas. 
        Such report shall include--
                    ``(A) a statistical analysis of the extent to which 
                high speed data service has been deployed to central 
                offices and customer loops, or is available using 
                different technologies, as compared with the extent of 
                such deployment and availability prior to such date and 
                in prior reports under this subsection;
                    ``(B) a breakdown of the delivery of high speed 
                data service by type of technology and class or 
                category of provider;
                    ``(C) an identification of impediments to such 
                deployment and availability, and developments in 
                overcoming such impediments during the intervening 
                period between such reports; and
                    ``(D) recommendations of the Commission, after 
                consultation with the National Telecommunications and 
                Information Administration, for further extending such 
                deployment and availability and overcoming such 
                impediments.
            ``(2) Definition of underserved area.--For purposes of 
        paragraph (1), the term `underserved areas' means areas that--
                    ``(A) are high cost areas that are eligible for 
                services under subpart D of part 54 of the Commission's 
                regulations (47 C.F.R. 54.301 et seq.); or
                    ``(B) are within or comprised of any census tract--
                            ``(i) the poverty level of which is at 
                        least 30 percent (based on the most recent 
                        census data); or
                            ``(ii) the median family income of which 
                        does not exceed--
                                    ``(I) in the case of a census tract 
                                located in a metropolitan statistical 
                                area, 70 percent of the greater of the 
                                metropolitan area median family income 
                                or the statewide median family income; 
                                and
                                    ``(II) in the case of a census 
                                tract located in a nonmetropolitan 
                                statistical area, 70 percent of the 
                                nonmetropolitan statewide median family 
                                income.
            ``(3) Designation of census tracts.--The Commission shall, 
        not later than 90 days after the date of the enactment of this 
        section, designate and publish those census tracts meeting the 
        criteria described in paragraph (2)(B).''.

SEC. 8. COMMISSION AUTHORIZED TO PRESCRIBE JUST AND REASONABLE CHARGES.

    The Federal Communications Commission may impose penalties under 
section 503 of the Communications Act of 1934 not to exceed $1,000,000 
for any violation of provisions contained in, or amended by, section 5, 
6, or 7 (or any combination thereof) of this Act. Each distinct 
violation shall be a separate offense, and in the case of a continuing 
violation, each day shall be deemed a separate offense, except that the 
amount assessed for any continuing violation shall not exceed a total 
of $10,000,000 for any single act or failure to act described in 
section 5, 6, or 7 (or any combination thereof) of this Act.

                                                  Union Calendar No. 54

107th CONGRESS

  1st Session

                               H. R. 1542

                  [Report No. 107-83, Parts I and II]

_______________________________________________________________________

                                 A BILL

To deregulate the Internet and high speed data services, and for other 
                               purposes.

_______________________________________________________________________

                             June 18, 2001

    Reported with amendments, adversely, from the Committee on the 
 Judiciary, committed to the Committee of the Whole House on the State 
                of the Union, and ordered to be printed
```