Agreement Apparently Reached in Senate on USF ADA Provision
There appears to be a break in the stalemate over remaining telecom legislation before Congress, but it remains unclear if there’s time to move legislation before Congress recesses for the year. Senate Commerce Committee Chmn. McCain (R-Ariz.) agreed to move the Universal Service Fund provision that’s part of the trio of telecom bills awaiting congressional action (HR-5419). McCain had a hold on the bill because the House wouldn’t consider his bill to create a national boxing commission. It appeared the 2 other measures -- on spectrum trust fund relocation and E-911 funding -- wouldn’t get moved.
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At our deadline, the Senate hadn’t acted on S-2994, the legislation introduced this week by Sen. Snowe (R-Me.) that would grant the USF a one-year exemption from Anti- Deficiency Act provisions. A spokesman for McCain said he withdrew his hold, but industry sources questioned if the Senate would be able to get the bill done in time to send it to the House. Sources also questioned if the House would have time to address the legislation. FCC Chmn. Powell on Mon. urged passage of the bill, joining USTA, OPASTCO and NTCA.
Sens. Snowe and Rockefeller (D-W.Va.) led the drive for signatures on a bipartisan letter that industry sources said was influential in helping to break the stalemate in Congress. Snowe and Rockefeller highlighted the effect the accounting change could have on the E-rate program. “The recent suspension of funding for telecommunications services for schools and libraries has caused significant hardship for these institutions across the country, especially those in rural areas. The suspension has also threatened to drive up consumers’ telephone bills,” Rockefeller said. Snowe said the one- year extension would give Congress time to devise a permanent solution to the accounting problem. “We owe it to rural phone companies and their consumers, to schools and libraries, and to low-income communities to get this fixed now,” Snowe said. The letter was signed by 32 senators.
The FCC, with guidance from the Office of Management & Budget, ruled that the USF had to comply with ADA requirements, which would generally prevent the Universal Service Administrative Co. (USAC) from forward-funding high-cost USF and E-rate commitments. The most immediate effect of such a change would be the inability for USAC to meet about 4,000 commitments to schools and rural health care facilities. It also could lead to a rise in contribution rates, officials have said.
While the USF provision of HR-5419 is expected to move, McCain and Senate Appropriations Committee ranking Democrat Robert Byrd (W.Va.) still have holds on spectrum relocation and E-911 provisions in HR-5419, sources said. Congress is expected to adjourn after it completes work on intelligence reform.