Copyright 1999 Federal Document Clearing House, Inc.
Federal Document Clearing House Congressional Testimony
September 30, 1999
SECTION: CAPITOL HILL HEARING TESTIMONY
LENGTH: 1534 words
HEADLINE:
TESTIMONY September 30, 1999 JERRY WELLER REPRESENTATIVE HOUSE
COMMERCE TELECOMMUNICATIONS, TRADE AND CONSUMER PROTECTION SCHOOLS AND LIBRARIES
INTERNET ACCESS
BODY:
Legislative Hearing H.R. 1746
- Schools and Libraries Internet Access Act Subcommittee on Telecommunications
Trade & Consumer Protection September 30, 1999 Prepared Statement of The
Honorable Jerry Weller U.S. House of Representatives Thank you, Mr. Chairman:
First, let me thank you for the opportunity to work with you on this important
legislation which will bring stability and legitimacy to an important program
which provides Internet access to local schools and libraries through access
discounts. I appreciate the opportunity to testify here today. Our work on this
bill began as an effort to achieve a goal we all share...giving every child
access to the Internet through our local schools and libraries. When we passed
the Telecommunications Act of 1996, it included a simple directive that any
telecommunications carrier serving a particular geographic area must make any of
its services under the Universal Service Fund (USF) available at reduced rates
to schools and libraries. Unfortunately, the FCC misinterpreted the
Telecommunications Act and may have jeopardized the goal we all share, which is
providing Internet access for all of America's children. First, the FCC
determined that as much as $2.25 billion per year should be made available to
support universal service for schools and libraries. Second, FCC expanded the
scope of what was available for schools and libraries from just discounted rates
on the telecommunications services and decided to include Internet access costs
and internal connections (wiring). Third, the FCC created a whole new
bureaucracy, known as the School and Library Corporation to administer the
e-rate program without authorization from Congress to do so. Finally, with
probably the most questionable of all of the provisions, the FCC determined that
the funds supporting the e-rate, for schools and libraries should come from an
assessment, or tax, on all long distance telecommunications
service providers. Here are the problems that we now face: 1) The FCC has taken
unauthorized action to create a new bureaucracy to administer a program whose
funding base may not be secure 2) The FCC has taken the unconstitutional action
of imposing an unauthorized tax on long distance users in order
to cover the expense of this enterprise. The FCC is incorrect in its contention
that this unauthorized tax is a fee. A fee is a charge for a
service rendered; however, long distance users are not receiving a service.
Thus, if a charge is levied and no direct service is provided then it is
characterized as a tax, regardless of whether it shows up on
your 1040 form or your telephone bill, and only Congress can
impose a tax under the Constitution. The FCC's actions are
being contested in court. The result is that many schools across the country
have come to depend and rely on the E-Rate program. Without a secure funding
source, their technology programs may be in jeopardy. Some examples in the 11th
District of Illinois which I represent, Lincoln Elementary School in Calumet
City, Illinois received $51,214 for internal connections and Internet access;
Marseilles Elementary School received $22,055 for internal connections; These
and other schools across the country deserve to know that their E-rate is
secure. The fact of the matter is, the FCC implemented a program based upon a
funding source that is unconstitutional. Congress, not the FCC, is the only body
able to impose a tax. Chairman Tauzin and I want to fix this
problem by ensuring that the funding source for the erate program is secure. The
Schools and Library Internet Access Act would protect the technology assistance
program for over 1,800 schools in Illinois alone by slashing the World War I
three percent telephone excise tax (currently sent to the
general fund) to 1% and earmarking the remaining revenue to fund the important
school and library Internet access programs through block grants to the states.
In addition to slashing the current tax, The Schools and
Library Internet Access Act would repeal the 3% unconstitutional
Tax on long distance customers. Our legislation will save
consumers $5 billion while providing $1.7 billion in the first year to equip our
nation's schools and libraries with Internet access. The legislation effectively
kills two birds with one stone. First, the legislation preserves and expands
funding for the important Internet access assistance program to our schools and
libraries and places it appropriately under the jurisdiction of the National
Telecommunications and Information Administration. Second, the legislation
abolishes the FCC's unconstitutional funding mechanism and reduces an antiquated
World War I tax which disproportionately impacts the poor and
senior citizens. Let's do it right this time. The FCC and its unconstitutional
tax created the problem. However, I support the bipartisan goal
of giving every child in school access to the Internet and believe we need to
solve this problem by enacting The Schools and Library Internet Access Act. It
is the right thing to do. Lets work in a bipartisan fashion to get it done.
Therefore I ask my colleagues to give the Schools and Libraries Internet Access
Act favorable consideration in this committee. Thank you, Mr. Chairman
LOAD-DATE: October 4, 1999 
