National Governors Association
Council of State Governments
National League of Cities
National Association of Counties
International City/County Management Association



February 22, 2002


The Honorable J. Dennis Hastert		The Honorable Richard A.
Gephardt
Speaker						Democratic Leader
U.S. House of Representatives			U.S. House of Representatives
The Capitol, Room H-228			The Capitol, Room H-204
Washington, D.C.  20515			Washington, D.C. 20515

Dear Mr. Speaker and Representative Gephardt:

On behalf of the nation's state and local elected officials, we
are writing to express our concerns with H.R. 1542, the
``Internet Freedom and Broadband Deployment Act of 2001.''  This
legislation would allow the ``Baby Bells'' to provide
high-speed, enhanced telecommunications and Internet access
services (``broadband'' services) without having to first
demonstrate that their local telephone markets have been opened
to competition.  While we unequivocally share congressional
concerns about the need for wide-ranging deployment of broadband
technology in our nation, particularly in rural and other
underserved areas, we believe this legislation contains
provisions that will interfere with and preempt the traditional
and legal rights of state and local governments.

We are particularly troubled by the legislative findings and
certain presumptions and specific language contained in Section
4, Limitation on Authority to Regulate High Speed Data Services.
 We emphatically disagree with the bill sponsors' assertion that
state regulation has ``impeded the rapid delivery of high speed
Internet access services to the public, and reduced consumer
choice and welfare.''  State and local governments have
exercised authority over local telephone service for nearly a
century and fully recognize that the long-term economic success
and productivity of this nation depend on continued investment
in the development and expansion of broadband services,
particularly in rural and other underserved areas.  H.R. 1542
would significantly alter this long-standing arrangement by
preempting state authority over the telephone network to the
detriment of successful state and local economic development
efforts.

We also are concerned that this direct federal preemption of
state regulatory authority over the telephone network could
affect the states' ability to ensure widespread deployment of
broadband service to all communities, including rural and other
underserved areas.  At a minimum, states could be precluded from
regulating rates, charges, terms and conditions, entry into the
broadband market, and providers' facilities, while states would
continue to maintain the financial burden for the costs
associated with telecommunications services within the state. 
Lastly, the preemption language may have the effect of limiting
consumer remedies over complaints with


The Honorable J. Dennis Hastert 
The Honorable Richard A. Gephardt
February 22, 2002
Page Two



telecommunications services, especially in those instances where
consumers are unable to be provided relief for poor service or
high rates.

State and local governments realize that the availability of
broadband service is a vital component in the development of
business, industry, retail, and trade and is the key to a better
standard of living and quality of life for all Americans.  As
such, state and local officials-those closest to understanding
and meeting the needs of our citizens-remain committed to
promoting a fair, competitive marketplace through which the
widespread deployment of, and citizens' access to, these
enhanced services may occur.  

On behalf of all elected state and local officials, our
organizations would like to thank you for this opportunity to
express our concerns with H.R. 1542 and look forward to an
opportunity to work with you on these matters.  

Sincerely,

  Raymond C. Scheppach Executive Director National Governors
Association	 Daniel M. Sprague Executive Director Council of
State Governments
 Donald J. Borut Executive Director National League of Cities	
Larry E. Naake Executive Director National Association of
Counties
   William H. Hansell, Jr. Executive Director International
City/County Management Association