SEC. 2. PURPOSE.
It is the purpose of this Act to prevent the imposition
of additional telephone charges to support the provision
of universal telecommunications services by dedicating to
such support the revenues of telephone excise taxes al-
ready in effect on the date of enactment of this Act.
SEC. 3. PROVISION OF UNIVERSAL SERVICES FROM APPRO-
PRIATIONS OF EXCISE TAXES.
(a) AMENDMENT.—Section 254 of the Communica-
tions Act of 1934 (47 U.S.C. 254) is amended by adding
at the end the following new subsection:
‘‘(l) PROVISION OF UNIVERSAL SERVICES FROM AP-
PROPRIATIONS OF EXCISE TAXES.—
‘‘(1) TERMINATION
OF
CONTRIBUTIONS; EX-
CLUSIVE SOURCE OF FUNDS.—The contributions of
providers of interstate telecommunications services
pursuant to subsections (b)(4) and (d) shall cease to
be required for any period beginning on or after the
date on which funds appropriated pursuant to para-
graph (2) of this subsection are first available for
Federal universal service support. The Commission
may continue to distribute any balances of such con-
tributions that remain unallocated on such date, but,
other than such balances, the funds appropriated
under paragraph (2) shall constitute the exclusive
source of funds for the provision of any type of Fed-
eral universal service support, including rural, high-
cost, lifeline, programs under subsection (h), or any
other program of Federal universal service support.
‘‘(2) AUTHORIZATION
OF
APPROPRIATIONS.—
There are authorized to be appropriated for fiscal
year 1999 and each of the 5 succeeding fiscal years,
from the Telecommunications Trust Fund estab-
lished by section 9511 of the Internal Revenue Code,
such sums as may be necessary to provide Federal
universal service support pursuant to this section,
including support pursuant to subsection (h) of this
section.
‘‘(3) AVAILABILITY ON SCHOOL YEAR BASIS.—
Appropriations for any fiscal year that are available
to carry out subsection (h) may, in accordance with
regulations of the Commission, be made available for
obligation by the recipient on the basis of an aca-
demic or school year differing from such fiscal year.
Notwithstanding any other provision of law, unless
enacted in specific limitation of the provisions of this
subsection, any funds from such appropriations dur-
ing any fiscal year which are not obligated and ex-
pended prior to the beginning of the fiscal year suc-
ceeding the fiscal year for which such funds were ap-
propriated shall remain available for obligation and
expenditure during such succeeding fiscal year.
‘‘(4) APPORTIONMENT OF FUNDS.—Funds from
any such appropriation shall be apportioned in ac-
cordance with regulations prescribed by the Commis-
sion to carry out the purposes of this section.’’.
(b) CONFORMING AMENDMENT.—Section 254(d) of
such Act is amended by adding at the end the following:
‘‘This subsection and subsection (b)(4) shall cease to be
effective on the date described in subsection (l)(1).’’.
SEC. 4. ADVANCED COMMUNICATIONS TRUST FUND.
(a) IN GENERAL.—Chapter 98 of the Internal Reve-
nue Code of 1986 is amended by inserting after section
9510 the following:
‘‘SEC. 9511. TELECOMMUNICATIONS TRUST FUND.
‘‘(a) CREATION OF TRUST FUND.—There is estab-
lished in the Treasury of the United States a trust fund
to be known as the ‘Telecommunications Trust Fund’,
consisting of such amounts as may be appropriated or
credited pursuant to this section or section 9602(b).
‘‘(b) TRANSFER
TO
ADVANCED
TELECOMMUNI-
CATIONS TRUST FUND AMOUNTS EQUIVALENT TO CER-
TAIN TAXES.—There are hereby appropriated to the Tele-
communications Trust Fund amounts equivalent to 100
percent of the taxes received in the Treasury after Decem-
ber 31, 1998, under section 4251 (relating to tax on com-
munications).
‘‘(c) EXPENDITURES
FROM
ADVANCED
TELE-
COMMUNICATIONS TRUST FUND.—Amounts in the Tele-
communications Trust Fund shall be available, as pro-
vided in appropriations Acts, only to provide for Federal
universal service support mechanisms pursuant to section
254 of the Communications Act of 1934.’’.
SEC. 5. EFFECTIVE DATES; TRANSITION.
(a) EFFECTIVE DATES.—
(1) IN GENERAL.—Except as provided in para-
graph (2), this Act and the amendments made by
this Act shall be effective on July 1, 1999.
(2) EXCEPTIONS.—Notwithstanding paragraph
(1)—
(A) the authorization of appropriations in
section 254(l)(2) of the Communications Act of
1934, as amended by section 3 of this Act, is
effective upon enactment; and
(B) the Federal Communications Commis-
sion may prescribe such regulations or take
such other action as is necessary to the imple-
mentation of the amendments made by this Act
at any time after such date of enactment.
(b) TRANSITION.—In order to effect a transition to
the provision of telecommunications services in accordance
with the amendments made by this Act, the Federal Com-
munications Commission shall prescribe such regulations
and take such other actions as may be necessary to pro-
vide for the allocation or refund of unused universal serv-
ice contributions and obligations.
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