WASHINGTON-As the phone tax repeal and electronic signature bills progressed in Congress last week, two other bills of importance to the wireless industry-uniform sourcing and China trade-remained in limbo.
On a separate front, the House Appropriations Committee last Wednesday approved legislation denying the Clinton administration budget increases it seeks for the Federal Communications Commission and the National Telecommunications and Information Administration.
As part of the FCC budget reduction, which will reduce funding from its current $210 million level to $208 million in fiscal 2001, the agency’s lobbying office would be halved. While no reason has been given for the targeted FCC cuts, the agency has been under fire for alleged lobbying on wireless bankruptcy and low-power FM issues. The FCC denies any wrongdoing.
“This could seriously impair the FCC’s ability to carry out its mission by delaying implementation of necessary technology systems and would likely require an agencywide furlough,” said Jacob Lew, director of the Office of Management and Budget, in a June 12 letter to House Appropriations Committee Chairman Bill Young (R-Calif.).
The topsy-turvy week also saw Commerce Secretary William Daley named to head Vice President Gore’s presidential campaign, a shake-up that comes amid health problems of now-resigned Gore campaign head Tony Coelho and troubles within the Gore campaign camp.
Commerce oversees NTIA. Likely replacing Daley, who takes leave from office on July 15, will be Deputy Commerce Secretary Robert Mallett.
With fall elections on the horizon, the GOP-led Congress wants to adjourn early to give lawmakers time to campaign. But before it can do so, lawmakers must pass 13 appropriations bills.
At the same time, Republicans are anxious to move a handful of high-tech bills and curry favor with deep-pocketed Silicon Valley moguls in advance of the fall elections.
Politics aside, time will soon become an issue for wireless and other telecom legislation.
At least two bills of importance to the wireless industry appear safe bets for passage this year.
With the Senate Finance Committee’s vote to repeal the 3-percent telephone service excise tax by September, the measure is poised for action by the full Senate. The House-passed bill would phase out the 3-percent telephone excise tax over the next two years.
“The telephone excise tax outlived its purpose decades ago. It cannot be justified on any tax policy grounds,” said Sen. William Roth (R-Del.), chairman of the Senate Finance Committee.
The Clinton administration, while a promoter of high tech, has shown only lukewarm interest in the 3-percent excise tax repeal because of the $50 billion-a-year loss to the U.S. Treasury. The White House was more ebullient about House passage of the e-signature, which will foster financial transactions on the Internet via wireless and wireline technologies.
“By marrying one of our oldest values-our commitment to consumer protection-with the newest technologies, we can achieve the full measure of the benefits that e-commerce has to offer,” said President Clinton.
The Senate was expected to pass companion e-signature legislation on Friday.
“We’re delighted with the language. We wanted to ensure that options were preserved for wireless carriers to offer m-commerce solutions. And this bill would do that,” said Rob Hoggarth, senior vice president of government relations for the Personal Communications Industry Association.
Elsewhere, a bill to simplify taxation of mobile phone calls remains the subject of a nasty jurisdictional dispute between the House Commerce Committee and the House Judiciary Committee. The spat, which is delaying the legislation from progressing, will have to be sorted out by the House GOP leadership.
The China trade bill, which the House passed last month, also is bogged down. Senate Majority Leader Trent Lott (R-Miss.) does not want to rush a vote on China trade, saying lawmakers need time to craft amendments. In addition, Lott maintains that passage of appropriations bills is more pressing right now.
Some see Lott’s delay tactics on China trade as leverage to gain concessions in upcoming budget negotiations with the Clinton administration. The wireless industry is anxious to do business with China, given its 1.3 billion population and the country’s limited telecom infrastructure.
On a separate front, key lawmakers and Federal Trade Commission Chairman Robert Pitofsky signaled they will press for e-commerce privacy legislation next year. Industry-through stepped up self regulation-is trying to head off or at least minimize any legislative initiative.
