ALAWON: American Library Association Washington Office Newsline Volume 8, Number 101 October 7, 1999 In this issue: E-rate on Issues Plate in the Waning Days of Congressional Session [1] The Schools and Libraries Internet Access Act, H.R. 1746 [2] Truth in Telephone Billing -- H.R. 3011 and H.R. 3022 With appropriations bills looming and the healthcare debate heating up, the congressional plate in these last remaining days of the session might appear too full for E-rate issues. Nonetheless, on September 30, the House Commerce Subcommittee on Telecommunications, Trade and Consumer Protection held a hearing on Rep. Billy Tauzin's (R-LA) bill, the Schools and Libraries Internet Access Act, H.R. 1746. On October 5, Rep. Tom Bliley (R- VA) introduced the Truth in Telephone Billing Act, H.R. 3011. On the same day Rep. Ed Markey (D-MA) introduced a slightly different bill, the Rest of the Truth in Telephone Billing Act, H.R. 3022. As one staff person put it, they are "setting the stage" for the election year. While we do not expect immediate action on these items, rhetoric and positioning is likely to continue up to the end of the session. We will continue to monitor the situation for any end- of-session surprises. [1] The Schools and Libraries Internet Access Act, H.R. 1746 In his opening statements, Rep. Billy Tauzin (R-LA), chair of the Telecommunications, Trade and Consumer Protection Subcommittee and sponsor of the Schools and Libraries Internet Access Act, said his bill "eliminates the need for the improper new taxes imposed by the FCC that many have dubbed the 'Gore Tax.'" Rep. Ed Markey (D-MA) responded, "The good news is the Fifth Circuit Court rejected arguments that the FCC's actions constitute a tax. It's not a tax. That's really good news that paints a wonderful picture for our country of global trade and the proper information skill set. There is hope now, given by the E-rate." Seven witnesses participated in the hearing. Speaking in support of Rep. Tauzin's legislation were cosponsors Reps. Jerry Weller (R-IL) and Thomas Tancredo (R-CO). Both objected to the current construction of the E-rate funding mechanism and called it "an unauthorized tax." Kent Lassman, deputy director for technology and communications policy with Citizens for a Sound Economy Foundation, offered qualified support for H.R. 1746, stating it "presents a solution that would be -- at best -- a marginal improvement over the current situation. More likely, it would result in an unfunded entitlement that might actually limit opportunities for America's children to learn from, and by, using technology." Cheryl Parrino, CEO of the Universal Service Administrative Company (USAC), testified as the administrator of the E-rate and other universal service programs. The FCC's USAC charter prohibits her from taking a position on any legislation. The remaining witnesses spoke against the proposed bill. Kelly Levy, acting associate administrator of the Office of Policy Analysis and Development at the National Telecommunications and Information Administration (NTIA), told the Subcommittee that NTIA is not prepared to undertake such a grant program, adding, "We see no need for new legislation to change the E-rate program in order to bring the full promise of the Information Age to our children." NTIA is the agency within the Department of Commerce which would be require to administer the bill's proposed technology block grants. After recounting the litigation that has ensnared many parts of the Telecommunications Act of 1996 including the E-rate, Christopher Wright, general counsel to the Federal Communications Commission, said, "If this bill proceeds on the same schedule [as the E-rate] it will be 2003 before we have the clarity we now have." [2] Truth in Telephone Billing -- H.R. 3011 and H.R. 3022 The Truth in Telephone Billing Act, H.R. 3011, introduced by Rep. Tom Bliley (R-VA) on October 5, amends the universal service provisions of the Communications Act of 1934. Collections for the E-rate as well as other universal service programs would be identified on subscriber's bills with the following detail: `(1) the identity of the governmental mechanism, fund, tax, or program to which the contribution or assessment is made, and the identity of the governmental authority whose rules require or authorize the contribution or assessment; `(2) the basis for the contribution or assessment (such as per subscriber, per line, or percentage of some or all charges or revenues); and `(3) as a separate line-item, the dollar amount that is being attributed to and collected from such subscriber for such governmental mechanism, fund, tax, or program.' While making consumers' bills clear is a laudable goal, this bill seems to take aim at universal service in general and at the E- rate in particular. Rep. Bliley made introductory remarks that repeatedly referred to the E-rate as the "Gore Tax." He also alleged that the "FCC imposed extraordinary and unprecedented political pressure on the Nation's largest long distance carriers to withhold information from their subscribers. . ." Rep. Bliley is joined by cosponsors Reps. Billy Tauzin (R-LA), Michael Oxley (R-OH), and Roy Blunt (R-MO). On the same day Rep. Ed Markey (D-MA) introduced a slightly different bill, the Rest of the Truth in Telephone Billing Act, H.R. 3022. In an introductory statement he explained: "I offer the 'rest of the truth' to point out that a listing of fees and taxes only provides half of the story. The other half of the story is the subsidies in the telecommunications marketplace. . ." Rep. Markey believes it is just as important to let customers know what they do and do not pay for when they subscribe to telecommunications services. This is similar to the position ALA has taken on this issue in the past. ****** ALAWON (ISSN 1069-7799) is a free, irregular publication of the American Library Association Washington Office. All materials subject to copyright by the American Library Association may be reprinted or redistributed for noncommercial purposes with appropriate credits. To subscribe to ALAWON, send the message: subscribe ala-wo [your_firstname] [your_lastname] to listproc@ala.org or go to http://www.ala.org/washoff/alawon. To unsubscribe to ALAWON, send the message: unsubscribe ala-wo to listproc@ala.org or go to http://www.ala.org/washoff/alawon. ALAWON archives at http://www.ala.org/washoff/alawon. 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