I
106TH CONGRESS
1ST SESSION
H. R. 727
To amend the Communications Act of 1934 to provide for explicit and
stable funding for Federal support of universal telecommunications serv-
ices through the creation of a Telecommunications Trust Fund.
IN THE HOUSE OF REPRESENTATIVES
FEBRUARY 11, 1999
Mr. KLINK (for himself, Mr. DICKEY, Mr. HOLDEN, Mr. BRADY of Pennsyl-
vania, Mr. GREEN of Texas, and Mr. ENGLISH) introduced the following
bill; which was referred to the Committee on Commerce, and in addition
to the Committee on Ways and Means, for a period to be subsequently
determined by the Speaker, in each case for consideration of such provi-
sions as fall within the jurisdiction of the committee concerned
A BILL
To amend the Communications Act of 1934 to provide for
explicit and stable funding for Federal support of univer-
sal telecommunications services through the creation of
a Telecommunications Trust Fund.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ‘‘Telecommunications
Trust Act’’.
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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-
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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-
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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.
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(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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