TITLE 
I—PROTECTION 
OF
BROADBAND SERVICES FROM
CONTINUING 
MONOPOLIZA-
TION
SEC. 101. AMENDMENT TO THE CLAYTON ACT TO INCLUDE
MARKET POWER ENTRY TEST.
The Clayton Act (15 U.S.C. 15 et seq.) is amended
by adding at the end the following:
‘‘SEC. 28. BROADBAND TELECOMMUNICATIONS SERVICES.
‘‘(a) DETERMINATION BY ATTORNEY GENERAL.—A
Bell operating company or an affiliate of a Bell operating
company may not provide interLATA services in any of
its in-region States under the authority of any amend-
ments to section 271 of the Communications Act of 1934
(47 U.S.C. 271) enacted after April 24, 2001, unless the
Attorney General of the United States determines that
such company or such affiliate does not have market
power in the provision of wireline telephone exchange serv-
ice in the State involved.
‘‘(b) MARKET POWER.—For purposes of this section,
a Bell operating company or an affiliate of a Bell oper-
ating company shall be deemed to have market power in
the provision of wireline telephone exchange service in the
State involved if such company or such affiliate provides
service to more than 85 percent of the business sub-
scribers, or more than 85 percent of the residential sub-
scribers, in such State at the time such company or such
affiliate requests that the Attorney General make a deter-
mination under subsection (a).
‘‘(c) DEFINITIONS.—For purposes of this section:
‘‘(1) AFFILIATE.—The term ‘affiliate’ means a
person that (directly or indirectly) owns or controls,
is owned or controlled by, or is under common own-
ership or control with, another person. For purposes
of this paragraph, the term ‘own’ means to own an
equity interest (or equivalent thereof) of more than
10 percent.
‘‘(2) BELL
OPERATING
COMPANY.—The term
‘Bell operating company’ has the meaning given
such term in section 3 of the Communications Act
of 1934 (47 U.S.C. 153).’’.
TITLE II—BROADBAND DEPLOY-
MENT INCENTIVES FOR SERV-
ICES 
TO 
ELIGIBLE 
RURAL
COMMUNITIES AND UNDER-
SERVED AREAS
SEC. 201. ELIMINATION OF DISCRIMINATORY TAXES ON
BROADBAND SERVICE PROVIDERS.
(a) PROHIBITION.—No State or political subdivision
of a State may impose—
(1) discriminatory taxes on broadband services;
or
(2) a tax or fee imposed on telecommunications
carriers or affiliates thereof, other than incumbent
local exchange carriers and affiliates thereof, for the
use of public rights-of-way that is greater than the
tax or fee imposed on incumbent local exchange car-
riers or affiliates thereof for their use of public
rights-of-way.
(b) LIABILITIES AND PENDING CASES.—Subsection
(a) shall not affect liability for taxes or fees accrued and
enforced before the date of the enactment of this Act or
to ongoing litigation relating to such taxes or such fees.
SEC. 202. LOAN PROGRAM FOR ELIGIBLE RURAL COMMU-
NITIES AND FOR UNDERSERVED COMMU-
NITIES.
(a) AUTHORITY TO MAKE DIRECT LOANS AND LOAN
GUARANTEES.—The Attorney General of the United
States may make direct loans or loan guarantees to eligi-
ble broadband service providers in accordance with this
section to finance the deployment of broadband services
to eligible rural communities and to underserved areas.
(b) ELIGIBILITY REQUIREMENTS.—To be eligible to
receive a loan or loan guarantee under this section, a
broadband service provider shall submit to the Attorney
General an application containing such information and
assurances as the Attorney General may require by rule,
including—
(1) information demonstrating that such pro-
vider is capable of delivering broadband service;
(2) a description of the proposed project to de-
ploy broadband service to an eligible rural commu-
nity or to an underserved area where broadband
service is not otherwise generally available through-
out such community or such area; and
(3) an assurance that such provider will meet
the standards for service and area wide coverage es-
tablished by the Attorney General.
(c) TERMS AND CONDITIONS.—Direct loans and loan
guarantees made under this section—
(1) shall be made available in accordance with
the requirements of the Federal Credit Reform Act
of 1990 (2 U.S.C. 661 et seq.);
(2) in the case of direct loans and loans guar-
anteed, shall bear interest at an annual rate of not
more than 2 percent per annum; and
(3) shall be made for the longer of—
(A) a term of 30 years; or
(B) the useful life of the assets con-
structed, reconstructed, or acquired with any
part of the proceeds of such loan or of the loan
guaranteed.
(d) LIMITATIONS.—
(1) TECHNOLOGY NEUTRALITY.—In making di-
rect loans and loan guarantees under this section,
the Attorney General may not take into consider-
ation the technology proposed to be employed by the
applicants for such loans or such guarantees.
(2) SECURITY INTEREST.—The Attorney Gen-
eral may take a security interest in assets or revenue
streams, in connection with a direct loan or loan
guarantee made under this section, of not more than
the amount sufficient to cover the assets financed by
such loan or such guarantee.
(e) AUTHORIZATION OF APPROPRIATIONS.—There is
authorized to be appropriated to the Attorney General to
carry out this section $3,000,000,000 for fiscal years
2002, 2003, 2004, 2005, and 2006.
SEC. 203. DEFINITIONS.
(a) IN GENERAL.—In this title:
(1) AFFILIATE.—Term ‘‘affiliate’’ means a per-
son that (directly or indirectly) owns or controls, is
owned or controlled by, or is under common owner-
ship or control with, another person. For purposes
of this paragraph, the term ‘‘own’’ means to own an
equity interest (or equivalent thereof) of more than
10 percent.
(2) ASSESSMENT.—The term ‘‘assessment’’
means valuation for a property tax levied by a taxing
State or political subdivision thereof.
(3) ASSESSMENT
JURISDICTION.—The term
‘‘assessment jurisdiction’’ means a geographical area
in a State used in determining the assessed value of
property for ad valorem taxation.
(4) 
BROADBAND
SERVICE.—The 
term
‘‘broadband service’’ includes, without regard to any
particular transmission medium or technology, high-
speed, switched, broadband telecommunications ca-
pable of delivering not less than 1.5 megabits of
data per second to the user and 128,000 bits of data
per second from the user that enables users to origi-
nate and receive high-quality voice, data, graphics,
and video telecommunications.
(5) COMMERCIAL BUSINESS.—The term ‘‘com-
mercial business’’ means a business, other than a
broadband service provider, devoted to a commercial
use.
(6) COMMERCIAL PROPERTY.—The term ‘‘com-
mercial property’’ means property, other than prop-
erty owned by a broadband service provider, devoted
to a commercial use.
(7) DISCRIMINATORY
TAX.—The term ‘‘dis-
criminatory tax’’ means any tax imposed by a State
or political subdivision of a State on a broadband
service provider that—
(A) uses an assessment of property owned
by broadband service providers at a value that
has a higher ratio to the true market value of
the broadband service provider’s property than
the ratio that the assessed value of other com-
mercial property in the same assessment juris-
diction has to the true market value of the
other commercial property value;
(B) uses an assessment of property owned
by broadband service providers at a value that
encompasses factors other than tangible assets,
such as intangible assets and a going concern
component, and bases the assessed value of
other commercial property on a local assess-
ment process of only tangible assets;
(C) is not generally imposed and legally
collectible by such State or such political sub-
division on commercial businesses; or
(D) is imposed without 180 days advance
notification of the imposition of such tax.
(8) ELIGIBLE RURAL COMMUNITY.—The term
‘‘eligible rural community’’ means any census tract
which—
(A) is not within 10 miles of any incor-
porated or unincorporated place containing
more than 25,000 people, and
(B) is not within a county or county equiv-
alent which has an overall population density of
more than 500 people per square mile of land.
(9) INCUMBENT LOCAL EXCHANGE CARRIER.—
The term ‘‘incumbent local exchange carrier’’ means,
with respect to an area, the local exchange carrier
that—
(A) on the date of enactment of this Act,
is providing telephone exchange service in such
area; and
(B)(i) is deemed to be a member of the ex-
change carrier association pursuant to section
69.601(b) of title 47 of the Code of Federal
Regulations, as in effect on such date; or
(ii) on or after such date, is a successor or
assign of a member described in clause (i).
(10) TAX.—The term ‘‘tax’’ has the meaning
given such term in section 1104 of the Internet Tax
Freedom Act (47 U.S.C. 151 note).
(11) 
TELECOMMUNICATIONS
CARRIER.—The
term ‘‘telecommunications carrier’’ has the meaning
given such term by section 3(44) of the Communica-
tions Act of 1934 (47 U.S.C. 153 (44)), but—
(A) includes all members of an affiliated
group of which a telecommunications carrier is
a member, and
(B) does not include a commercial mobile
service carrier.
(12) UNDERSERVED AREA.—The term ‘‘under-
served area’’ means any census tract which is lo-
cated in—
(A) an empowerment zone or enterprise
community designated under section 1391 of
the Internal Revenue Code of 1986;
(B) the District of Columbia Enterprise
Zone established under section 1400 of such
Code;
(C) a renewal community designated under
section 1400E of such Code; or
(D) a low-income community designated
under section 45D of such Code.
(b) DESIGNATION OF CENSUS TRACTS.—The Sec-
retary of the Treasury shall, not later than 90 days after
the date of the enactment of this Act, designate and pub-
lish those census tracts meeting the criteria described in
paragraphs (8) and (12) of subsection (a).
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