[Congressional Record Volume 157, Number 18 (Monday, February 7, 2011)]
[Senate]
[Page S616]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Mr. ROCKEFELLER (for himself and Ms. Snowe):
  S. 297. A bill to amend section 254 of the Communications Act of 1934 
to provide that funds received as universal service contributions and 
the universal service support programs established pursuant to that 
section are not subject to certain provisions of title 31, United 
States Code, commonly known as the Antideficiency Act; to the Committee 
on Commerce, Science, and Transportation.
  Mr. ROCKEFELLER. Mr. President, today, along with my colleague 
Senator Snowe of Maine, I am introducing legislation to exempt 
universal service contributions and the universal service support 
programs from what is commonly referred to as the Antideficiency Act.
  The Telecommunications Act of 1996 demonstrated our long-standing 
commitment to ensuring the availability of telecommunications to all 
Americans at reasonable prices. This concept known as universal service 
has been the responsibility of the Federal Communications Commission, 
FCC, since its beginnings in 1934. As a result of the 1996 Act, the 
Universal Service Fund, USF, was established in 1997. This fund is 
administered by the Universal Service Administrative Company, USAC, 
whose Board of Directors is appointed by the Chairman of the FCC.
  USAC administers the High Cost, Low Income, Rural Health Care, and 
Schools and Libraries, E-rate, universal service programs. USAC makes 
commitments, through letters, to schools for each school year under FCC 
rules, and it is obviously important these commitments be made before 
the beginning of the school year to assist schools in their planning 
processes and achievement of educational goals. The letters of 
commitment are based upon funds the USF is authorized to collect, and 
the USF can adjust the contribution factor quarterly to ensure its 
receipts.
  While the USF receives no Federal monies, FCC staff directed USAC in 
late September 2004 to treat E-rate and Rural Health Care commitment 
letters as government obligations subject to ADA requirements. Among 
the ADA requirements is the demand for cash on hand to cover all 
obligations. This requirement disrupted the distribution of funds for 
four months. Congress realized how ill-advised it is to subject these 
funds to the ADA and enacted legislation to provide for a one-year 
exemption of the USF from the ADA, through December 31, 2005, and this 
exemption has been extended for one-year increments in each subsequent 
year. The current extension expires December 31, 2011. Congress has 
made permanent similar exemptions for at least fourteen different 
programs, and we believe the time has come to end these annual one-year 
extensions and simply make the exemption permanent. This will allow 
USAC to continue administering these important programs in the most 
sensible and effective way.
  It is important to understand that there is precedence to provide a 
permanent exemption. There are 14 agencies that currently have a 
permanent exemption for the ADA, including the Federal Aviation 
Administration, the Fish and Wildlife Service, and the National Oceanic 
and Atmospheric Administration.
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