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Legislation Calls for Restructuring of Universal-Service Program

Following charges by senators that the corporations administering the universal-service telecommunications-discount program are usurping congressional authority, the Senate Appropriations Committee passed legislation March 17 requiring the Federal Communications Commission to restructure the program.

The provisions, part of an emergency spending bill, would also require the FCC to document how much money has been contributed to the fund by telecommunications companies. Salaries of the corporations' top executives—also under attack by the senators—would be capped at $151,800 a year.

Although the measure doesn't specify how the programs should be restructured, Senate aides said the aim is to give Congress more supervision. "The main concern is that, whenever a government corporation has been set up, it has been done by Congress," said committee spokesperson John Raffetto. "Nobody seeks to dismantle the corporations, but the objective is to get the FCC to put on the record what its plans are."

Posted March 23, 1998.

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