S 1004 IS

To amend the Communications Act of 1934 to reduce telephone rates, provide advanced telecommunications services to schools, libraries, and certain health care facilities, and for other purposes.

May 11, 1999

Mr. BURNS (for himself and Mr. INHOFE) introduced the following bill; which was read twice and referred to the Committee on Finance

To amend the Communications Act of 1934 to reduce telephone rates, provide advanced telecommunications services to schools, libraries, and certain health care facilities, and for other purposes.

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

This Act may be cited as the `Schools and Libraries Internet Access Act'.

SEC. 2. REPEAL OF FEDERAL COMMUNICATIONS COMMISSION AUTHORITY.

Section 254 of the Communications Act of 1934 (47 U.S.C. 254) is amended--

(1) in subsection (b)--

(A) by striking paragraph (6); and

(B) by redesignating paragraph (7) as paragraph (6);

(2) in subsection (c)--

(A) in paragraph (1)(A), by striking `education, public health, or'; and

(B) by striking paragraph (3); and

(3) by striking subsection (h).

SEC. 3. REDUCTION OF EXCISE TAX ON TELEPHONE AND OTHER COMMUNICATIONS SERVICES.

(a) PHASE-OUT OF TAX- Section 4251(b)(2) of the Internal Revenue Code of 1986 is amended to read as follows:

`(2) APPLICABLE PERCENTAGE- The term `applicable percentage' means--

`(A) 3.0 percent with respect to amounts paid pursuant to bills first rendered before January 1, 2000; and

`(B) 1.0 percent with respect to amounts paid pursuant to bills first rendered on or after January 1, 2000, and before October 1, 2003.'

(b) REPEAL OF TAX- Subchapter B of chapter 33 of the Internal Revenue Code of 1986 is repealed effective with respect to bills first rendered on or after October 1, 2004.

SEC. 4. TELECOMMUNICATIONS TECHNOLOGY TRUST FUND.

(a) IN GENERAL- Chapter 98 of the Internal Revenue Code of 1986 is amended by inserting after section 9510 the following:

`SEC. 9511. TELECOMMUNICATIONS TECHNOLOGY TRUST FUND.

`(a) CREATION OF TRUST FUND- There is established in the Treasury of the United States a trust fund to be known as the `Telecommunications Technology Trust Fund', consisting of such amounts as may be appropriated or credited pursuant to this section or section 9602(b).

`(b) TRANSFER TO TELECOMMUNICATIONS TECHNOLOGY TRUST FUND AMOUNTS EQUIVALENT TO CERTAIN TAXES- There are hereby appropriated to the Telecommunications Technology Trust Fund amounts equivalent to 100 percent of the taxes received in the Treasury after December 31, 1998, under section 4251 (relating to tax on communications).

`(c) EXPENDITURES FROM TELECOMMUNICATIONS TECHNOLOGY TRUST FUND- Amounts in the Telecommunications Technology Trust Fund shall be available for making expenditures to carry out the provisions of section 106 of the National Telecommunications and Information Administration Organization Act.

`(d) SUNSET- The provisions of this section shall cease to be effective on October 1, 2004.'.

SEC. 5. PROVISION OF TELECOMMUNICATIONS SERVICES TO SCHOOLS, LIBRARIES, AND RURAL HEALTH CARE PROVIDERS.

Part A of the National Telecommunications and Information Administration Organization Act (47 U.S.C. 901 et seq.) is amended by adding at the end the following new section:

`SEC. 106. PROVISION OF ADVANCED TELECOMMUNICATIONS SERVICES.

`(a) PROVISION OF CERTAIN TELECOMMUNICATIONS AND RELATED SERVICES-

`(1) GRANTS AUTHORIZED- The Secretary (or the Secretary's designee) shall award a grant for a fiscal year to each State having an approved plan under paragraph (3) for the following purposes:

`(A) To assist in acquiring telecommunications and related services which are necessary

for the provision of health care services, including instruction relating to such telecommunications and related services, by any public or nonprofit health care provider that serves persons who reside in a rural area, as defined in section 1886(d)(2)(D) of the Social Security Act (42 U.S.C. 1395ww(d)(2)(D)).

`(B) To assist in acquiring telecommunications and related services for elementary schools, secondary schools, and libraries for educational purposes.

`(2) ALLOCATION OF FUNDS- From amounts appropriated pursuant to subsection (b), the Secretary shall allocate to each of the 50 States, the District of Columbia, and the Commonwealth of Puerto Rico as follows, except that no State shall receive less than 1/2 of 1 percent of such amount:

`(A) Fifty percent shall be allocated among such jurisdictions on the basis of their relative populations of individuals aged five through 17, as determined by the Secretary on the basis of the most recent satisfactory data.

`(B) Fifty percent shall be allocated among such jurisdictions in accordance with the relative amounts such jurisdictions received under part A of title I of the Elementary and Secondary Education Act of 1965 for the preceding fiscal year.

`(3) STATE PLANS- In order for a State to receive a grant or an allocation of funds under this part for any fiscal year, such State shall have in effect for such fiscal year a State plan. Such plan shall--

`(A) designate the State educational agency (as such term is defined in section 14101 of the Elementary and Secondary Education Act of 1965) as the State agency responsible for the administration of the program assisted under this part;

`(B) set forth a program under which funds paid to the State in accordance with this section will be expended solely for--

`(i) acquiring certain telecommunications and related services under subsection (a); and

`(ii) administration of the State plan, except that the amount used for administration of the State plan in any fiscal year shall not exceed 2 percent of the amount available to such State under this section for such fiscal year;

`(C) set forth criteria to be used in allotting funds among the eligible entities in the State, taking into consideration the relative economic need of the eligible entities, including the number of students or other persons who are--

`(i) living in areas with high concentrations of low-income families;

`(ii) from or part of a low-income family; and

`(iii) living in sparsely populated areas; and

`(D) contain assurance that funds paid to the State in accordance with this section will be expended in accordance with the regulations prescribed by the Secretary under paragraph (5).

`(4) TERMS AND CONDITIONS- Telecommunications and related services and network capacity provided to a school, library, or health care provider under this section may not be sold, resold, or otherwise transferred by such user in consideration for money or any other thing of value.

`(5) RULEMAKING AUTHORITY- The Secretary (or the Secretary's designee) shall prescribe such regulations as may be necessary to establish qualifications and conditions to carry out the provisions of this section. Such regulations shall include criteria by which States shall determine, in the case of any acquisition of telecommunications and related services for elementary schools, secondary schools, and libraries for educational purposes that includes the installation of equipment within any such school or library, whether the installation is essential to permit such school or library to have access to advanced technologies.

`(6) DEFINITIONS- For purposes of this section:

`(A) ELEMENTARY AND SECONDARY SCHOOLS- The terms `elementary schools' and `secondary schools' have the same meanings given those terms in paragraphs (14) and (25), respectively, of section 14101 of the Elementary and Secondary Education Act of 1965.

`(B) HEALTH CARE PROVIDER- The term `health care provider' includes--

`(i) post-secondary educational institutions offering health care instructions, teaching hospitals, and medical schools;

`(ii) community health centers or health centers providing health care to migrants;

`(iii) local health departments or agencies;

`(iv) community mental health centers;

`(v) not-for-profit hospitals;

`(vi) rural health clinics; and

`(vii) consortia of health care providers consisting of 1 or more of the above described entities.

`(C) ELIGIBLE ENTITIES- Notwithstanding subparagraph (A) or (B), no entity shall be entitled to receive grants authorized under this section if such entity operates as other than a not-for-profit business, is a school described in subparagraph (A) with an endowment of more than $50,000,000, or is a library or library consortium not eligible for assistance from a State library administrative agency under the Library Services and Technology Act.

`(b) EXPENDITURE AUTHORITY-

`(1) APPROPRIATIONS FROM TRUST FUND-

`(A) AUTHORIZATION- Subject to subparagraphs (B) and (C), there are authorized to be appropriated from the Telecommunications Technology Trust Fund, established pursuant to section 9511 of the Internal Revenue Code of 1986, such funds as may be necessary for each of the fiscal years 2000 through 2004 to fund--

`(i) the grants authorized by section (a)(1); and

`(ii) such expenditures as may be necessary to administer the programs established by this section.

`(B) LIMITATION BASED ON COLLECTIONS- No amount may be appropriated pursuant to subparagraph (A) for a fiscal year for grants pursuant to section (a)(1) that in the aggregate exceed 100 percent of the trust fund receipts credited to the Telecommunications Technology Trust Fund with respect to the preceding fiscal year.

`(C) FISCAL YEAR 1999 LIMITATION- The amount appropriated under subparagraph (A) for fiscal year 2000 shall not exceed $1,700,000,000.

`(D) UNEXPENDED BALANCES- Any balances in the Telecommunications Technology Trust Fund after deduction of the amount appropriated under subparagraph (A) for any fiscal year are authorized to be transferred to and deposited in the general fund of the Treasury, to the extent so provided in an appropriations Act.

`(2) APPROPRIATIONS AFTER EXPIRATION OF TAX RECEIPTS- For fiscal year 2005 and each of the succeeding fiscal years, there are authorized to be appropriated, from funds in the Treasury not otherwise appropriated, not to exceed $500,000,000 to fund--

`(A) the grants authorized by section (a)(1); and

`(B) such expenditures as may be necessary to administer the programs established by this section.'.

SEC. 6. EFFECTIVE DATES.

(a) DELAYED DATE- The amendments made by sections 2 and 5 of this Act shall be effective 180 days after the date of enactment of this Act.

(b) IMMEDIATE EFFECT- The amendments made by sections 3 and 4 of this Act shall be effective on the date of enactment of this Act.

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