Telecommunications Trust Act of 1998

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Telecommunications Trust Act of 
1998''.

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 already in effect on the date of enactment of 
this Act.

SEC. 3. PROVISION OF UNIVERSAL SERVICES FROM APPROPRIATIONS OF EXCISE 
              TAXES.

    (a) Amendment.--Section 254 of the Communications 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 Appropriations of Excise 
Taxes.--
            ``(1) Termination of contributions; exclusive 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 
        paragraph (2) of this subsection are first available for 
        Federal universal service support. The Commission may continue 
        to distribute any balances of such contributions 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 
        Federal 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 established 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 academic 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 during any fiscal year which are 
        not obligated and expended prior to the beginning of the fiscal 
        year succeeding the fiscal year for which such funds were 
        appropriated 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 accordance with 
        regulations prescribed by the Commission 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 Revenue Code of 1986 is 
amended by inserting after section 9510 the following:

``SEC. 9511. TELECOMMUNICATIONS TRUST FUND.

    ``(a) Creation of Trust Fund.--There is established 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 Telecommunications Trust Fund Amounts 
Equivalent to Certain Taxes.--There are hereby appropriated to the 
Telecommunications Trust Fund amounts equivalent to 100 percent of the 
taxes received in the Treasury after December 31, 1998, under section 
4251 (relating to tax on communications).
    ``(c) Expenditures From Advanced Telecommunications Trust Fund.--
Amounts in the Telecommunications Trust Fund shall be available, as 
provided 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 paragraph (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 Commission may 
                prescribe such regulations or take such other action as 
                is necessary to the implementation 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 Communications Commission shall prescribe such 
regulations and take such other actions as may be necessary to provide 
for the allocation or refund of unused universal service contributions 
and obligations.

Summary: Telecommunications Trust Act of 1998 - Amends the Communications Act of 1934 to state that contributions currently required of providers of interstate telecommunications services for the preservation and enhancement of universal telecommunications services shall no longer be required after the date on which appropriated funds are first available for Federal universal service support.  Authorizes the Federal Communications Commission to continue to distribute balances of such contributions that remain available on such date. 
Authorizes appropriations for FY 1999 through 2004 from the Telecommunications Trust Fund (established under this Act) to provide Federal universal service support, such funds to be the exclusive source of funding for such support.  Allow such funds to be available on a school year basis in lieu of a fiscal year basis. 
Amends the Internal Revenue Code to establish the Telecommunications Trust Fund for the deposit of amounts appropriated for universal services support.  Transfers to such Fund 100 percent of amounts received in the Treasury after December 31, 1998, as certain communications excise taxes.  Makes Fund amounts available only to provide for Federal universal service support mechanisms.