THIS SEARCH THIS DOCUMENT THIS CR ISSUE GO TO
Next Hit Forward Next Document New CR Search
Prev Hit Back Prev Document HomePage
Hit List Best Sections Daily Digest Help
Doc Contents
r. TAUZIN. If the gentleman will continue to yield, Mr. Chairman, I can answer with a statement. This amendment does not change the auditing by
[Page: H7364] GPO's PDF
Mr. MARKEY. Well, Mr. Chairman, I asked the gentleman if he would grant a hearing before the conference is completed.
Mr. TAUZIN. The gentleman prefaced his request with statements I disagree with. I would like to correct the record, if I could, if the gentleman will allow me.
Mr. MARKEY. I will reclaim my time requesting one more time if the gentleman would grant us a hearing.
Mr. TAUZIN. The answer is that the hearings, as the gentleman knows, are set by the chairman of the Committee on Commerce. I cannot commit to any dates nor time for that hearing. The gentleman knows that at this time.
More importantly, this issue is now enjoined. This will be in the conference committee and this is our chance to strike a single blow at deregulation at a commission with a 1930s attitude.
Mr. MARKEY. Reclaiming my time, Mr. Chairman, I will make this point. The United States Telephone Association has never contacted me, the ranking Democrat on the Subcommittee on Telecommunications, Trade, and Consumer Protection on this issue. There has never been a hearing where consumers or the States or the National Retail Association have been allowed to testify, and I think all Members should know that.
Mr. Chairman, I reserve the balance of my time.
The CHAIRMAN. The time of the gentleman has expired.
Mr. DINGELL. Mr. Chairman, I yield 30 seconds to the gentleman from New York (Mr. MEEKS).
Mr. MEEKS of New York. Mr. Chairman, I thank the gentleman for yielding me this time, and I rise to support this amendment.
In New York, our State's public service commissioner is on the verge of granting the local telephone company, Bell Atlantic, permission to enter the long distance market. If this happens, Bell Atlantic will probably be the first regional Bell operating company to enter into the long-distance market under the historic Telecommunications A ct o f 1996.
The reason they will be able to provide long-distance service is because competition is very much alive in New York, to the benefit of all consumers. This amendment continues that progress, protects the interests of all consumers and ensures the intent of the Telecommunications A ct, which is to provide true competition.
With none of the competitors to the local phone companies required to conform to these accounting rules, if we do not adopt this amendment, consumers will suffer greatly.
Mr. TAUZIN. Mr. Chairman, I yield such time as he may consume to the gentleman from Missouri (Mr. BLUNT).
(Mr. BLUNT asked and was given permission to revise and extend his remarks.)
Mr. BLUNT. Mr. Chairman, I rise in support of the amendment.
Mr. Chairman, I rise in support of the amendment offered by the Chairman of the Subcommittee on Telecommunications, Trade and Consumer Protection, Mr. TAUZIN, and the Subcommittee's ranking member, Mr. DINGELL. This amendment would eliminate yet another needless, costly and burdensome regulatory requirement that has outlived whatever merits it may have once had. Local telephone companies, both large and small, must submit highly detailed financial accounting records on a continuing basis to both the IRS and the Securities and Exchange Commission. These records use an accounting method approved by the Financial Accounting Services Board. One could reasonably ask the question, ``If it's good enough for the IRS and the SEC, shouldn't it be good enough for the FCC?''
Mr. Chairman, this is not a complex issue. It is a simple case of unnecessary, archaic federal regulation that requires companies to spend millions of dollars to prepare two separate sets of regulatory accounting records for use by one agency of the government. This defies logic and common sense. I urge my colleagues to join me in supporting the Tauzin amendment.
Mr. TAUZIN. Mr. Chairman, I yield such time as he may consume to the gentleman from New York (Mr. FOSSELLA).
(Mr. FOSSELLA asked and was given permission to revise and extend his remarks.)
Mr. FOSSELLA. Mr. Chairman, I rise in support of the amendment.
Mr. Chairman, I rise in favor of the amendment introduced by Mr. TAUZIN to start the process of getting rid of the FCC's so-called ``Uniform System of Accounts.''
It's become clear to me that what we have on our hands here is a 64-year-old dinosaur, a creature of the FCC, designed for an arcane accounting purpose, which has been rendered totally useless by time and progress but the price tag on American consumers continues. This has to end.
It has been estimated that allowing this accounting dinosaur to exist, and allowing the FCC to require telephone companies to follow it, is now costing American consumers and our economy as much as $300 million every year, that's more than a million dollars every working day. The good news, Mr. Chairman, is this is a situation we can banish to the business trivia history books today by supporting Mr. TAUZIN's amendment.
The truth is, Mr. Chairman, the FCC does not need to use this second, artificial system of accounting and it already uses the business world's so-called ``GAAP'' method of accounting, Generally Accepted Accounting Principles, throughout its operations.
And Mr. TAUZIN's amendment will in no way endanger the availability of low-cost ``universal'' telephone service. It also will not change the FCC's oversight role, it will only make FCC operations more cost effective.
Mr. Chairman, the only purpose the Uniform System of Accounts serves today is to uniformly penalize the American consumer and the rest of us all. Let's put this dinosaur out of it's misery, right now.
Mr. Chairman, in closing, I urge my colleagues to vote ``yes'' in support of the Tauzin amendment.
Mr. TAUZIN. Mr. Chairman, I yield 15 seconds to the gentleman from Texas (Mr. BONILLA).
(Mr. BONILLA asked and was given permission to revise and extend his remarks.)
Mr. BONILLA. Mr. Chairman, I rise in strong support of the amendment of the gentleman from Louisiana. It is a big step toward cutting red tape for good, solid, reputable telephone companies. It is long overdue.
This is not 1934, it is 1999, and it is long overdue that we take action now.
Mr. DINGELL. Mr. Chairman, I yield 30 seconds to the gentleman from Texas (Mr. FROST), the chairman of our caucus.
Mr. FROST. Mr. Chairman, I rise in support of the amendment by my good friend, the gentleman from Michigan (Mr. DINGELL).
I think the point has been adequately made that local telephone companies, like every other U.S. business, keep their books according to generally accepted accounting principles, yet they must also keep a second set of books developed by the FCC in 1935. It is time to change this process, this procedure.
Mr. DINGELL. Mr. Chairman, I yield 30 seconds to the gentleman from Texas (Mr. GONZALEZ), whose father was my good friend.
Mr. GONZALEZ. Mr. Chairman, I will keep it brief, I do not want to consume the whole argument here with facts, but let us see what has happened in the recent past.
The FCC has basically changed its own rules, which it can, to presently conform to 90 to 95 percent of what is now the generally accepted accounting principles. They are almost there, but they are not quite there, and as a result it does result in the keeping of two sets of books.
The second set of facts is that this amendment leaves in place the FCC's ability to require information on costs from the local telephone companies. This is not an end run, this is simply regulatory reform, and we need it now. Please support the amendment.
Mr. DINGELL. Mr. Chairman, I yield such time as he may consume to the gentleman from Illinois (Mr. RUSH).
Mr. MARKEY. Mr. Chairman, may I inquire as to how much time is remaining in the debate?
The CHAIRMAN. The gentleman from Michigan (Mr. DINGELL) has 15 seconds remaining, and the gentleman from Louisiana (Mr. TAUZIN) has 15 seconds remaining.
(Mr. RUSH asked and was given permission to revise and extend his remarks.)
Mr. RUSH. Mr. Chairman, I rise in support of the amendment.
I rise today in support of the Tauzin-Dingell amendment. Today local telephone companies have to follow GAAP procedures for the IRS and the SEC, and the Uniform System of Accounts for the FCC. This unnecessary duplication costs the industry and its consumers $270 million each year, and serves no purpose.
The Tauzin-Dingell amendment eliminates unnecessary regulation and levels the playing
[Page: H7365] GPO's PDF
Mr. DINGELL. Mr. Chairman, I yield such time as he may consume to the gentleman from Virginia (Mr. BOUCHER).
(Mr. BOUCHER asked and was given permission to revise and extend his remarks.)
Mr. BOUCHER. Mr. Chairman, I thank the gentleman for yielding me this time, and I rise in support of the Tauzin amendment.
[Time: 19:15]
Mr. DINGELL. Mr. Chairman, I yield such time as she may consume to the distinguished gentlewoman from California (Ms. MILLENDER-MCDONALD).
(Ms. MILLENDER-McDONALD asked and was given permission to revise and extend her remarks.)
Ms. MILLENDER-McDONALD. Mr. Chairman, I stand in support of this amendment.
Mr. Chairman, I rise today in support of the Tauzin/Dingell amendment to the Commerce, Justice, State Appropriations bill. The Gentleman from Louisiana, Mr. TAUZIN and the Gentleman from Michigan, Mr. DINGELL have crafted an amendment that would prohibit the Federal Communications Commission from requiring persons to use accounting methods that do not conform to Generally Accepted Accounting Principles (GAAP).
Today, the Federal Communications Commission requires local telephone companies to keep two sets of books.
No other industry is required to do this and it is unfair for the government to treat one segment of the telecommunications i ndustry differently than we do others. This current requirement serves no purpose and should be eliminated.
Local telephone companies keep their financial records according to generally accepted accounting principles (GAAP), the standard required by the IRS, SEC, and the investment community. In addition, they must also keep another set of records that follows the Uniform Systems of Accounts, developed by the FCC in 1935 to facilitate the Commission's oversight of the ``old'' AT&T. This costs customers $270 million.
The Tauzin/Dingell amendment would simply prohibit the FCC from requiring companies to provide financial records in a format other than what is generally accepted. The amendment also leaves in place the FCC's ability to require information on costs and to set depreciation schedules necessary for universal service calculations.
The use of GAAP will not jeopardize universal service. In today's market, rapid advances in technology drive the introduction of new products at an incredible pace. Costly and unnecessary regulations slow the pace and place certain companies on an unlevel playing field. The Tauzin/Dingell amendment helps promote competition and levels the playing field among telecommunications c ompanies. Support the Tauzin/Dingell amendment and I yield back the balance of my time.
Mr. DINGELL. Mr. Chairman, I yield 15 seconds to my dear friend, the gentleman from Virginia (Mr. GOODLATTE).
Mr. TAUZIN. Mr. Chairman, I yield 30 seconds to the gentleman from Virginia (Mr. GOODLATTE).
(Mr. GOODLATTE asked and was given permission to revise and extend his remarks.)
Mr. GOODLATTE. Mr. Chairman, I rise in strong support of the amendment offered by the gentleman from Louisiana (Mr. TAUZIN) and urge my colleagues to do likewise. By adopting this provision, we will be able to achieve several objectives.
First, we can save the American consumer and telephone industry a significant amount of money. Second, we can take a step towards further reducing government regulation. And third, we will be achieving competitive balance in the industry. We should support this amendment.
It has been estimated that this double-accounting regime costs the industry and consumers $270 million. That is money that could be reinvested in telephone infrastructure, and used to introduce new products and services so essential in today's rapidly changing telecommunications m arket.
The phone companies already keep one set of books for the IRS and SEC. Yet, the FCC makes them keep a whole other set of books for its accounting purposes. If the GAAP system is good enough for the IRS, it is good enough for the SEC, in fact is good enough for most of the American business world, it ought to be good enough for the FCC.
No other segment of the telecommunications i ndustry is required to keep these books, and it is unfair for one sector to be singled out for different treatment. These costly and unnecessary regulations skew the balance among the companies, and slow the ability of the companies subject to the regulation to introduce new products and services.
Commissioner Harold Furchgott-Roth of the FCC has indicated that, and I quote, ``In today's increasing competitive telecommunications m arketplace, the Commission should be focusing its efforts on transitioning to a more competitive environment. The amount of detailed information and regulatory scrutiny required under our accounting and ARMIS rules is inordinate and should be reduced.'' Mr. Speaker, that comes from one of the sitting Commissioners.
I urge my colleagues to vote in favor of Mr. TAUZIN's amendment, and eliminate unnecessary regulation, save resources, and level the playing field for all telephone companies. I thank the gentleman and yield back the balance of my time.
ANNOUNCEMENT BY THE CHAIRMAN
The CHAIRMAN. The Chair must remind all Members to refrain from characterizing actions of or in the Senate.
Mr. BARTON of Texas. Mr. Chairman, I would like to commend my fellow Commerce Committee colleagues on the amendment they are offering today. This should be an easy vote which will achieve real regulatory reform by requiring the FCC to take an action it should have taken years ago.
I doubt that many of our constituents would be shocked to know that the federal government has made certain industries duplicative, unnecessary, work since 1935. For the last 64 years, the federal government has required local telephone companies to keep two different sets of accounting books.
The Internal Revenue Service and the Securities and Exchange Commission both require a standard for all businesses to follow when keeping their books, which is according to the ``Generally Accepted Accounting Principles'' (GAAP). However, the Federal Communications Commission (FCC) makes local telephone companies keep a separate set of books in order to comply with the ``Uniform System of Accounts,'' which was put in place in 1935 in order to facilitate the Commission's oversight of AT&T.
Like many other aspects of the federal government that have remained in place for decades, the Uniform System of Accounts is unnecessary and needs to be changed. This needless system costs the industry and its consumers an estimated $300 million dollars every year. In addition, the FCC requires longer depreciation lives for high tech equipment that telephone companies need to provide advanced services to consumers. Slower depreciation may mean slower recovery of costs, which would reduce the incentives these companies have to deploy new technology.
I urge all Members to support this amendment. By following GAAP, the FCC will not be jeopardizing universal service, local competition or any other congressional policy. I urge a ``yes'' vote.
The CHAIRMAN. All time has expired.
The question is on the amendment offered by the gentleman from Louisiana (Mr. TAUZIN).
The question was taken; and the Chairman announced that the ayes appeared to have it.
Mr. RYAN of Wisconsin. Mr. Chairman, I demand a recorded vote.
The CHAIRMAN. Pursuant to House Resolution 273, further proceedings on the amendment offered by the gentleman from Louisiana (Mr. TAUZIN) will be postponed.
AMENDMENT NO. 7 OFFERED BY MR. CROWLEY
Mr. CROWLEY. Mr. Chairman, I offer an amendment.
The CHAIRMAN. The Clerk will designate the amendment.
The text of the amendment is as follows:
Amendment No. 7 offered by Mr. CROWLEY:
At the end of the bill, insert after the last section (preceding the short title) the following:
TITLE VIII--ADDITIONAL GENERAL PROVISIONS
SEC. 801. None of the funds made available in this Act m ay be used for joint training programs between the Royal Ulster Constabulary and any Federal law enforcement agency.
Mr. CROWLEY. Mr. Chairman, I yield myself such time as I may consume.
Mr. Chairman, my amendment would limit the funding from being expended for any joint training programs between the Royal Ulster Constabulary and any Federal law enforcement agencies here in the United States.
This year the FBI began joint training between the FBI and the Royal Ulster Constabulary, the RUC, the police force of Northern Ireland.
The purpose of this program is to address ``the new challenges that societal changes are having on law enforcement in the region.''
[Page: H7366] GPO's PDF
THIS SEARCH THIS DOCUMENT THIS CR ISSUE GO TO
Next Hit Forward Next Document New CR Search
Prev Hit Back Prev Document HomePage
Hit List Best Sections Daily Digest Help
Doc Contents