Requires the Comptroller General to report to Congress on the need to reform the high cost support mechanism for rural, insular, and high cost areas.
States that nothing in this Act shall affect the support provided to rural telephone companies.
[Congressional Bills 108th Congress]
[From the U.S. Government Publishing Office]
[H.R. 1582 Introduced in House (IH)]
108th CONGRESS
1st Session
H. R. 1582
To equitably distribute universal service support throughout rural
America, and for other purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
April 3, 2003
Mr. Terry (for himself, Mr. Stupak, Mr. Strickland, Mrs. Wilson of New
Mexico, Mr. Shimkus, Mr. Cannon, Mr. Inslee, Mr. Otter, Mr. Simpson,
Mr. Tancredo, Mr. Bishop of Utah, Mr. Renzi, Mr. Dicks, Mr. Osborne,
Mr. Bereuter, Mr. McInnis, Mrs. Cubin, Mr. Hastings of Washington, Mr.
Pomeroy, Mr. Kline, Ms. McCarthy of Missouri, Mr. Rush, Mr. Radanovich,
Mr. Rogers of Michigan, Mr. Brown of Ohio, Ms. DeGette, Mr. Barton of
Texas, Mr. Bass, and Mr. Beauprez) introduced the following bill; which
was referred to the Committee on Energy and Commerce
_______________________________________________________________________
A BILL
To equitably distribute universal service support throughout rural
America, 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 ``Universal Service Fairness Act of
2003''.
SEC. 2. FINDINGS AND PURPOSE.
(a) Findings.--The Congress finds the following:
(1) Consumers living in rural, insular, and high cost areas
should have access to universal services at affordable rates.
(2) Under the Federal Communication Commission's high cost
support program for certain carriers, two states receive
approximately 70 percent of the Federal support, while 42
states receive no support.
(3) Calculating Federal universal service support
exclusively on a statewide average basis improperly places
responsibility on most State governments to support high cost
areas with minimal assistance from the Federal Government.
(4) Federal universal service support should be calculated
and targeted to small geographic regions within a State to
provide greater assistance to the rural consumers most in need
of support.
(5) Federal and State support mechanisms for high cost
areas must be reviewed to determine the extent to which high
cost support reform is necessary.
(b) Purposes.--It is therefore the purpose of this Act to provide
Federal universal service support to consumers living in rural,
insular, and high cost areas by--
(1) spreading the benefits of the existing Federal support
mechanism more equitably across the nation;
(2) facilitating removal of implicit State support; and
(3) ensuring that the Federal Communications Commission
develops a Federal support mechanism that will promote rate
comparability between rural and urban areas.
SEC. 3. ELIGIBILITY FOR UNIVERSAL SERVICE SUPPORT FOR HIGH COST AREAS.
Section 254 of the Communications Act of 1934 (47 U.S.C. 254) is
amended by adding at the end the following new subsection:
``(m) Universal Service Support for High Cost Areas.--
``(1) Calculating support.--In calculating Federal
universal service support for eligible telecommunications
carriers that serve rural, insular, and high cost areas, the
Commission shall, subject to the provisions of paragraphs (2)
and (3), revise the Commission's support mechanism for high
cost areas to provide support to each wire center in which the
incumbent local exchange carrier's average cost per line for
such wire center exceeds 3.75 times the national average cost
per line.
``(2) Hold harmless support.--In implementing this
subsection, the Commission shall provide support for each State
equal to the greater of--
``(A) the amount calculated under the Commission's
support mechanism for high cost areas as in effect on
the date of the enactment of this subsection; or
``(B) the amount calculated pursuant to paragraph
(1).
``(3) Limitation on support to be provided.--
Notwithstanding paragraph (2)--
``(A) no State shall receive support that exceeds 5
percent of the total support calculated under the
Commission's support mechanism for high cost areas as
in effect on such date of enactment; and
``(B) the total amount of support for all States
shall not exceed the total support calculated under the
Commission's support mechanism for high cost areas as
in effect on such date of enactment.
The limitations in subparagraphs (A) and (B) shall not be
construed to preclude fluctuations in support on the basis of
changes in the data used to make such calculations.
``(4) Implementation.--Not later than 180 days after the
date of the enactment of this subsection, the Commission shall
complete the actions (including prescribing or amending
regulations) necessary to implement the requirements of this
subsection.
``(5) Definition.--For purposes of this subsection, the
term `Commission's support mechanism for high cost areas' means
section 54.309 of the Commission's regulations (47 CFR 54.309),
and regulations referred to in such section.''.
SEC. 4. GAO REPORT ON NEED TO REFORM HIGH COST SUPPORT MECHANISM.
Not later than one year after the date of enactment of this Act,
the Comptroller General shall report to Congress on the need to reform
the high cost support mechanism for rural, insular, and high cost
areas. As part of this report, the General Accounting Office shall
provide an overview and discuss whether--
(1) existing Federal and State high cost support mechanisms
ensure rate comparability between urban and rural areas;
(2) the Federal Communications Commission and the States
have taken the necessary steps to remove implicit support;
(3) the existing high cost support mechanism has affected
the development of local competition in urban and rural areas;
and
(4) amendments to section 254 of such Act are necessary to
preserve and advance universal service.
SEC. 5. NO EFFECT ON RURAL TELEPHONE COMPANIES.
Nothing in this Act shall be construed to affect the support
provided to an eligible telecommunications carrier under section 214(e)
of the Communications Act of 1934 (47 U.S.C. 214(e)) that is a rural
telephone company (as defined in section 3 of such Act (47 U.S.C.
153)).
<all>
Introduced in House
Introduced in House
Referred to the House Committee on Energy and Commerce.
Referred to the Subcommittee on Telecommunications and the Internet.
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