Rural Universal Service Equity Act of 2005 - Requires the Comptroller General to report to Congress on the need to reform the high cost support mechanism (with respect to universal telephone service) for rural, insular, and high cost areas.
Amends the Communications Act of 1934 to require the Federal Communications Commission (FCC), in calculating Federal universal service support for eligible telecommunications carriers that serve such areas, to revise its 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 exceeds the national average by such amount as the FCC determines appropriate for the purpose of ensuring the equitable distribution of universal service support throughout the United States. Requires: (1) the FCC to ensure that no State receives less Federal support than it would have received, up to ten percent of the total support distributed, under the FCC's previous support mechanism; and (2) the total amount of support for all States to be equal to the total support calculated under the support mechanism in existence before enactment of this Act.
States that nothing in this Act shall affect the support provided to rural telephone companies.
[Congressional Bills 109th Congress]
[From the U.S. Government Publishing Office]
[S. 284 Introduced in Senate (IS)]
109th CONGRESS
1st Session
S. 284
To distribute universal service support equitably throughout rural
America, and for other purposes.
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
February 3, 2005
Mr. Smith (for himself, Mr. Bayh, Mr. Allen, Mr. Wyden, Mr. McCain, Mr.
Levin, Mr. Crapo, Mr. Dayton, Mr. Hagel, Mr. Baucus, Mr. Coleman, Mr.
Hatch, Mr. Bennett, Mr. Thomas, Mr. Enzi, Mr. Kyl, Mr. Grassley, Mr.
Craig, Mr. Lugar, and Mr. Domenici) introduced the following bill;
which was read twice and referred to the Committee on Commerce,
Science, and Transportation
_______________________________________________________________________
A BILL
To distribute universal service support equitably 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 ``Rural Universal Service Equity Act
of 2005''.
SEC. 2. FINDINGS AND PURPOSE.
(a) Findings.--Congress makes the following findings:
(1) The Federal Communications Commission's high-cost model
support program for certain carriers provides no Federal
support to 40 States.
(2) 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.
(3) Local telephone competition and emerging technologies
are threatening the viability of Federal universal service
support.
(b) Purposes.--The purposes of this Act are as follows:
(1) To begin consideration of universal service reform.
(2) To spread the benefits of the existing Federal high-
cost model support mechanism more equitably across the nation.
SEC. 3. COMPTROLLER GENERAL REPORT ON NEED TO REFORM HIGH-COST SUPPORT
MECHANISM.
Not later than one year after the date of the enactment of this
Act, the Comptroller General shall submit to Congress a report on the
need to reform the high-cost support mechanism for rural, insular, and
high-cost areas. As part of the report, the Comptroller General 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 the Communications Act of
1934 (47 U.S.C. 254) are necessary to preserve and advance
universal service.
SEC. 4. 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 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 the national average cost per line by such amount as
the Commission determines appropriate for the purpose of
ensuring the equitable distribution of universal service
support throughout the United States.
``(2) Hold harmless support.--In implementing this
subsection, the Commission shall ensure that no State receives
less Federal support calculated under paragraph (1) than the
State would have received, up to 10 percent of the total
support distributed, under the Commission's support mechanism
for high-cost areas as in effect on the date of the enactment
of this subsection.
``(3) Limitation on total support to be provided.--The
total amount of support for all States, as calculated under
paragraphs (1) and (2), shall be equivalent to the total
support calculated under the Commission's support mechanism for
high-cost areas as in effect on the date of the enactment of
this subsection.
``(4) Construction of limitation.--The limitation in
paragraph (3) shall not be construed to preclude fluctuations
in support on the basis of changes in the data used to make
such calculations.
``(5) 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.
``(6) Definition.--In this subsection, the term
`Commission's support mechanism for high-cost areas' means
section 54.309 of title 47, Code of Federal Regulations and the
regulations referred to in such section.''.
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 Senate
Sponsor introductory remarks on measure. (CR S985-986)
Read twice and referred to the Committee on Commerce, Science, and Transportation. (text of measure as introduced: CR S986)
Llama 3.2 · runs locally in your browser
Ask anything about this bill. The AI reads the full text to answer.
Enter to send · Shift+Enter for new line