Stevens Wins USF Provisions in C-J-S Bill
House and Senate conferees agreed Fri. to exempt the universal service fund (USF) from Anti-Deficiency Act accounting rules for a year, and to bar the FCC from limiting USF support to primary lines. Senate Commerce Chmn. Stevens (R-Alaska) brokered the USF deal Thurs. night with House Commerce Chmn. Barton (R-Tex.), who wants to overhaul USF. Stevens thought he had sewn up the arrangement, but learned after the Thurs. conferees’ meeting that the primary-line provision wasn’t in the bill. “I didn’t sleep last night because of this amendment,” he told conferees during Fri.’s meeting, arguing passionately that the primary-line provision is essential in rural areas.
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“I'm not going to sign the conference report and I'll oppose it on the floor, and I'll be hard to deal with on USF reform” if the motion isn’t passed, Stevens said loudly. “I don’t think that’s a powerful threat,” replied Appropriations Science, State, Justice and Commerce Subcommittee Chmn. Wolf (R-Va.). Wolf said he had reservations because Barton sent a letter to conferees expressing concerns about “jurisdiction,” since the provisions are related to in-depth House Commerce Committee scrutiny of USF. Acknowledging Barton’s concern, Wolf urged conferees to vote their “conscience” on the motion, which conferees passed by voice vote. Minutes after thanking the members, Stevens walked to Wolf’s chair to shake his hand.
“This is important to our members,” said Randy Tyree, OPASTCO dir.-legislative affairs. “It’s especially important to consumers. If we didn’t have this support, they'd be paying higher rates for secondary lines.” Other entities that represent rural groups lauded the legislation. “Restricting support to one line would inevitably increase costs to rural customers and small businesses,” said ITAA Exec. Dir. David Zesiger. Secondary lines typically are used for fax machines, computers and broadband services -- and are important for businesses as well as residential customers.
Both the ADA exemption and the primary-line provision appeared in last year’s appropriations bill. The primary- line provision was prompted by FCC action based on a federal-state universal service board’s recommendations to constrain USF growth. The FCC decision to limit the program drew intense complaint by industry and in Congress, hence its appearance in appropriations legislation. Sens. Burns (R-Mont.) led a 2004 push to strike the FCC provision, which he said hurt small business. Stevens made a similar point Fri. in the conference committee debate. “You'd be turning the clock back” refusing support for secondary lines, he said, noting a provider can supply 3 lines at less cost than one. Limiting USF support to one line would interfere with that setup.
Stevens stressed his commitment to USF overhaul. “It needs to be reconstructed and it will be a major issue for us next year,” he said. “It has to be done next year.” He said the primary-line exemption is critical until full reform is done. Dorgan said the primary-line provision wouldn’t enlarge the USF program, admitting the program “needs revisiting.” But a change such as limiting service to primary lines won’t solve the bigger problem, he said.
USTelecom said the USF program “faces many significant challenges,” but the conferees’ decision gives Congress time to develop a solution, USTelecom Pres. Walter McCormick said in a statement. NTCA also praised the decision. The bill goes to the full House and Senate for a vote.