Universal Service Reform Act of 2007 - Amends the Communications Act of 1934 concerning procedures for the review of universal service requirements to require the Federal-State Joint Board on universal service to complete recommendations for changes to such requirements within 18 months after the date of enactment of this Act. Includes high-speed broadband services within universal service. Directs the Federal Communications Commission (FCC) to assess contributions to universal service support mechanisms from communications service providers. Provides support contribution limits. Requires the FCC to revise it's support mechanism for rural, insular, and high cost areas.
Requires communications service providers to ensure that all traffic contains or preserves sufficient information to allow traffic identification by other communications service providers that transport or terminate the traffic.
Outlines eligibility requirements for communications service providers to receive universal service support.
Makes current limitations on universal service support and individual support caps imposed upon carriers inapplicable after the date of enactment of this Act.
Requires all residential and business lines served by an eligible telecommunications carrier to be eligible for federal universal service support.
Allows states to: (1) adopt regulations not inconsistent with FCC universal service rules; and (2) require communications service providers to contribute regardless of whether the service contains an interstate component.
[Congressional Bills 110th Congress]
[From the U.S. Government Publishing Office]
[H.R. 2054 Introduced in House (IH)]
110th CONGRESS
1st Session
H. R. 2054
To reform the universal service provisions of the Communications Act of
1934, and for other purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
April 26, 2007
Mr. Boucher (for himself, Mr. Terry, Mr. Filner, Mrs. Capito, Mr.
Graves, Mrs. Cubin, Mr. Fortenberry, Mr. Manzullo, Mr. King of Iowa,
and Mr. Radanovich) introduced the following bill; which was referred
to the Committee on Energy and Commerce
_______________________________________________________________________
A BILL
To reform the universal service provisions of the Communications Act of
1934, 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 Reform Act of
2007''.
SEC. 2. DEFINITIONS.
Section 3(a) of the Communications Act of 1934 (47 U.S.C. 153(a))
is amended--
(1) by redesignating paragraphs (20) through (52) as
paragraphs (22) through (54);
(2) by redesignating paragraphs (11) through (19) as
paragraphs (12) through (20), respectively;
(3) by inserting after paragraph (10) the following new
paragraph:
``(11) Communications service provider.--The term
`communications service provider' means any entity that--
``(A) contributes to or receives universal service
support for the most recent calendar quarter ending
before the date of enactment of the Universal Service
Reform Act of 2007;
``(B) uses telephone numbers or Internet protocol
addresses, or their functional equivalents or
successors, to offer a service or a capability--
``(i) that provides or enables real-time 2-
way voice communications; and
``(ii) in which the voice component is the
primary function; or
``(C) offers, directly to the public, or to such
classes of users as to be effectively available
directly to the public, a physical transmission
facility, whether circuit-switched, packet-switched, a
leased line, or using radio frequency transmissions,
regardless of the form, protocol, or statutory
classification of the service, that allows an end user
to obtain access, from a particular end user location,
to a network that permits the end user to engage in
electronic communications (including
telecommunications) with the public.''; and
(4) by inserting after paragraph (20) (as redesignated by
paragraph (2) of this section) the following new paragraph:
``(21) High-speed broadband service.--
``(A) Definition.--The term `high-speed broadband
service' means a two way network that uses the Internet
protocol or a successor protocol, and the associated
capabilities and functionalities, services, and
applications provided over an Internet protocol
platform or for which an Internet protocol capability
is an integral component, and services, facilities,
equipment, and applications that enable an end-user to
receive communications in Internet protocol format,
regardless of whether the communications are voice,
data, video, or any other form, at a download receiving
rate of 1 megabit per second or greater.
``(B) Commission speed adjustment requirements.--
The Commission shall review the speed requirement in
subparagraph (A) every other year beginning the sixth
year after implementation of the Universal Service
Reform Act of 2007 and shall make the necessary
adjustments to move to higher speeds as deployment and
advancement of new technology allows communications
service providers to provide higher speed broadband to
end users in an economically efficient manner.
``(C) Internet protocol.--The term `Internet
protocol' means the Transmission Control Protocol/
Internet Protocol, or any predecessor or successor
protocols to such protocol.''.
SEC. 3. UNIVERSAL SERVICE REFORM.
(a) In General.--
Section 254 of the Communications Act of 1934 (47 U.S.C.
254) is amended by amending subsections (a) through (e) to read
as follows:
``(a) Procedures To Reform Universal Service.--
``(1) Federal-state joint board on universal service.--
Within one month after the date of enactment of the Universal
Service Reform Act of 2007, the Commission shall institute and
refer to the Federal-State Joint Board under section 410(c) of
this title a proceeding to recommend changes to any of its
regulations in order to implement section 214(e) of this title
and this section (as amended by the Universal Service Reform
Act of 2007), including the definition of the services that are
supported by Federal universal service support mechanisms and a
specific timetable for completion of such recommendations. In
addition to the members of the Joint Board required under
section 410(c) of this title, one member of such Joint Board
shall be a State-appointed utility consumer advocate nominated
by a national organization of State utility consumer advocates.
The Joint Board shall, after notice and opportunity for public
comment, make its recommendations to the Commission within 9
months after the date of enactment of the Universal Service
Reform Act of 2007.
``(2) Commission action.--The Commission shall initiate a
single proceeding to consider the recommendations from the
Joint Board required by paragraph (1) and shall complete such
proceeding within 18 months after the date of enactment of the
Universal Service Reform Act of 2007. The rules established by
such proceeding shall include a definition of the services that
are supported by Federal universal service support mechanisms
and a specific timetable for implementation.
``(b) Universal Service Principles.--The Joint Board and the
Commission shall base policies for the preservation and advancement of
universal service on the following principles:
``(1) Quality and rates.--Quality services should be
available at just, reasonable, and affordable rates.
``(2) Access to advanced services.--Access to advanced
telecommunications and information services should be provided
in all regions of the Nation.
``(3) Access in rural and high cost areas.--Consumers in
all regions of the Nation, including low-income consumers and
those in rural, insular, and high cost areas, should have
access to the services the Commission determines to be
universal services in accordance with subsection (c), including
interexchange services and advanced telecommunications and
information services, that are reasonably comparable to those
services provided in urban areas and that are available at
rates that are reasonably comparable to rates charged for
similar services in urban areas.
``(4) Equitable and nondiscriminatory contributions.--All
communications service providers should make equitable and
nondiscriminatory contributions to the preservation and
advancement of universal service.
``(5) Explicit, specific, and predictable support
mechanisms.--There should be explicit, specific, predictable,
and sufficient Federal and State mechanisms to preserve and
advance universal service.
``(6) Competitive neutrality.--Federal and State mechanisms
to preserve and advance universal service should be
competitively neutral, so that those mechanisms neither
unfairly advantage nor disadvantage one communications service
provider over another, and neither unfairly favor nor disfavor
one technology over another.
``(7) Access to advanced telecommunications services for
schools, health care, and libraries.--Elementary and secondary
schools and classrooms, health care providers, and libraries
should have access to advanced telecommunications services as
described in subsection (h).
``(8) Additional principles.--Such other principles as the
Joint Board and the Commission determine are necessary and
appropriate for the protection of the public interest,
convenience, and necessity and are consistent with this Act.
``(c) Definition.--
``(1) In general.--Universal service includes the services
defined on the date of enactment of the Universal Service
Reform Act of 2007 as universal services, as modified by the
Commission as necessary to implement the provisions of this
Act, high-speed broadband services, and an evolving level of
telecommunications and information services that the Commission
shall establish periodically under this section, taking into
account advances in telecommunications and information
technologies and services. The Joint Board in recommending, and
the Commission in establishing, the definition of the services
that are supported by Federal universal service support
mechanisms shall consider the extent to which such services--
``(A) are essential to education, public health, or
public safety;
``(B) are being deployed in public
telecommunications networks by communications service
providers; and
``(C) are consistent with the public interest,
convenience, and necessity.
``(2) Alterations and modifications.--The Joint Board shall
consider whether to recommend to the Commission modifications
in the definition of the services that are supported by Federal
universal service support mechanisms no less than once every 5
years.
``(3) Special services.--In addition to the services
included in the definition of universal service under paragraph
(1), the Commission may designate additional services for such
support mechanisms for schools, libraries, and health care
providers for the purposes of subsection (h).
``(4) High-speed broadband service.--The definition of
universal service shall not be construed to exclude eligible
communications service providers from using universal service
funding for the provision, maintenance, and upgrading of high-
speed broadband service.
``(d) Universal Service Support Contributions.--
``(1) Calculating universal service support
contributions.--
``(A) In general.--To preserve and advance
universal service in accordance with the principles in
section (b), the Commission shall assess contributions
to universal service support mechanisms from
communications service providers in a manner that is
equitable, competitively neutral, and
nondiscriminatory, and ensures that communications
service providers are subject to similar obligations.
The Commission may employ any methodology to assess
such contributions, including consideration of--
``(i) revenues derived from the provision
of intrastate, interstate, and foreign
communications services by communications
service providers;
``(ii) working telephone numbers used by
communications service providers; or
``(iii) any other current or successor
identifier protocols or connections to the
network used by communications service
providers.
``(B) Use of more than one methodology.--If no one
methodology designated under subparagraph (A)
effectuates the principles described in this Act, the
Commission may employ a combination of any such
methodologies.
``(C) Low volume exception.--The Commission shall
not materially increase the contributions of
communications service providers whose customers
typically make a low volume of calls on a monthly
basis.
``(D) De minimis exception.--The Commission may
exempt a communications service provider from the
requirements of this subsection if the communications
activities of such provider are limited to such an
extent that the level of contributions of such provider
to the preservation and advancement of universal
service would be de minimis.
``(E) Group plan exception.--If the Commission uses
a methodology under subparagraph (A) based in whole or
in part on working telephone numbers, it may provide a
discount for additional numbers provided under a group
or family pricing plan for residential customers
provided in one bill.
``(2) Reports.--The Commission shall establish annual
reporting requirements for all communications service providers
contributing to universal service support mechanisms or
receiving universal service support. The reporting requirements
shall not impose unnecessary burdens, and shall be technology
and provider neutral. The Commission shall periodically review
the reporting requirements to ensure that universal service
support is used for the provision, maintenance, and upgrading
of the facilities for which support is intended.
``(3) Universal service support contribution limits.--
``(A) Limitation.--The total amount of universal
service support for all universal service support
mechanisms other than support for schools, libraries,
rural health care, life-line, link-up, and toll
limitation shall not exceed the total amount that was
collected from all sources for all universal service
support mechanisms other than schools, libraries, rural
health care, life-line, link-up, and toll limitation in
the last year prior to the date of enactment of the
Universal Service Reform Act of 2007, as adjusted--
``(i) annually by a growth factor; and
``(ii) once, within one year of the date of
enactment of the Universal Service Reform Act
of 2007, by the amounts that the adjustments in
subsections (e)(3) and (m) increase demand for
universal service support.
``(B) Growth factor.--The growth factor shall be
the annual percentage change in the Gross Domestic
Product-Chained Price Index (GDP-CPI), or any successor
general inflationary factor that the Bureau of Economic
Analysis of the Department of Commerce determines shall
supersede such index, plus the annual percentage change
in the total number of incumbent local exchange carrier
working loops in rural, insular, and high cost areas,
if that percentage change is greater than zero.
``(C) Intercarrier compensation recovery
mechanism.--If at any time after the date of enactment
of the Universal Service Reform Act of 2007 the
Commission mandates that intercarrier compensation
revenues be recovered through an alternative revenue
recovery mechanism, such alternative revenue recovery
mechanism shall be included in the limitation set forth
in subparagraph (A), and the Commission shall adjust
such limitation by the amount that such alternated
revenue recovery mechanism increases demand for
universal service support.
``(e) Distribution and Use of Universal Service Support.--
``(1) In general.--Only an eligible telecommunications
carrier designated under section 214(e) shall be eligible to
receive specific Federal universal service support. A carrier
that receives such support shall use that support only for the
provision, maintenance, and upgrading of facilities and
facilities-based services for which the support is intended.
Any such support should be explicit and sufficient to achieve
the purposes of this section.
``(2) Uses of universal service support.--The use of
universal service support for all rural, insular, and high cost
areas--
``(A) should be expanded to include high-speed
broadband services;
``(B) should be based on actual costs reasonably
incurred in providing such facilities-based services in
a service area, exclusive of the cost of acquiring
spectrum, except that an eligible telecommunications
carrier that is an incumbent local exchange carrier may
elect to have the Commission calculate the amount of
universal service support payable to such carrier
pursuant to section 54.309 of title 47, Code of Federal
Regulations (as in effect on the date of the enactment
of the Universal Service Reform Act of 2007); and
``(C) should be available to communications service
providers that are determined to be eligible
telecommunications carriers under section 214(e).
``(3) Support for non-rural carriers providing service in
rural, insular, and high cost areas.--
``(A) Calculating support.--Except with respect to
non-rural carriers serving insular areas, in
calculating the need for and distribution of Federal
universal service support for eligible
telecommunications carriers that serve rural, insular,
and high cost areas and that are either non-rural
carriers, or (after a one-time election) rural carriers
subject to Federal incentive regulation, the Commission
shall revise the Commission's support mechanism for
rural, insular, and high cost areas to provide support
to each wire center to the extent the incumbent local
exchange carrier's average forward-looking cost per
line for such wire center exceeds 2.75 times the
national average cost per line.
``(B) Hold harmless.--In implementing this
paragraph, the Commission shall ensure that no non-
rural carrier receives less Federal support calculated
under paragraph (1) than the non-rural carrier would
have received under the Commission's support mechanism
for rural, insular, and high cost areas as in effect on
the day before the date of the enactment of the
Universal Service Reform Act of 2007.
``(4) Administration: accountability standards.--
``(A) Network traffic identification accountability
standards.--
``(i) Network traffic identification
standards.--A communications service provider
shall ensure, to the degree technically
possible, that all traffic that originates on
its network contains, or, in the case of non-
originated traffic, preserves, sufficient
information in call signaling to allow for
traffic identification by other communications
service providers that transport or terminate
such traffic, including telephone number
information of the calling and called parties
and such other information as the Commission
deems appropriate. Except as otherwise
permitted by the Commission, to the degree
technically possible, a communications service
provider that transports traffic between
communications service providers shall signal-
forward without altering call signaling
information it receives from another
communications service provider.
``(ii) Network traffic identification
rulemaking.--The Commission, in consultation
with the State commissions, shall initiate a
single rulemaking no later than 180 days after
the date of enactment of the Universal Service
Reform Act of 2007 to establish rules and
enforcement provisions for traffic
identification.
``(iii) Network traffic identification
enforcement.--The Commission shall adopt and
enforce clear penalties, fines, and sanctions
under this section.
``(B) Universal service distribution accountability
standards.--To ensure fairness and accountability in
the distribution of universal service funding
contributions, the Commission shall promulgate rules to
calculate the level of universal service support to be
distributed to all eligible recipients.''.
(b) Rural Health Care Support Mechanisms.--
(1) Amendment.--Subparagraph (A) of section 254(h)(1) of
the Communications Act of 1934 (47 U.S.C. 254(h)(1)) is amended
to read as follows:
``(A) Health care services for rural areas.--Within
180 days after the date of enactment of the Universal
Service Reform Act of 2007, the Commission shall
prescribe regulations that provide that a
communications service provider shall, upon, receiving
a bona fide request, provide covered services which are
necessary for the provision of health care services in
a State, including instruction relating to such
services, to any public or nonprofit health care
provider that serves persons who reside in rural areas
in that State at rates that are reasonably comparable
to rates charged for similar services in urban areas in
that State. A communications service provider providing
service under this subparagraph shall be entitled to
have an amount equal to the difference, if any, between
the rates for services provided to health care
providers for rural areas in a State and the rates for
similar services in urban areas in that State treated
as a service obligation as a part of its obligation to
participate in the mechanisms to preserve and advance
universal service.''.
(2) Definition of health care provider.--Subparagraph (B)
of section 254(h)(7) of such Act (47 U.S.C. 254(h)(7)(B)) is
amended to read as follows:
``(B) Health care provider.--The term `health care
provider' means--
``(i) post-secondary educational
institutions offering health care instruction,
teaching hospitals, and medical schools;
``(ii) community health centers or health
centers providing health care to migrants;
``(iii) local health departments or
agencies;
``(iv) community mental health centers;
``(v) not-for-profit hospitals;
``(vi) critical access hospitals;
``(vii) rural hospitals with emergency
rooms;
``(viii) rural health clinics;
``(ix) not-for-profit nursing homes or
skilled nursing homes;
``(x) hospice providers;
``(xi) emergency medical services
facilities;
``(xii) rural dialysis facilities;
``(xiii) elementary, secondary, and post-
secondary school health clinics; and
``(xiv) consortia of health care providers
consisting of one or more entities described in
clauses (i) through (xiii).''.
(3) Definition of rural for health care support.--Section
254(h)(7) of such Act is further amended by adding at the end
the following new subparagraph:
``(J) Rural area.--Within 180 days after the date
of enactment of the Universal Service Reform Act of
2007, the Commission shall prescribe regulations that
provide that, for purposes of the rural health care
universal service support mechanisms established
pursuant to this subsection, a `rural area' is--
``(i) any incorporated or unincorporated
place in the United States, its territories and
insular possessions (including any area within
the Federated States of Micronesia, the
Republic of the Marshall Islands and the
Republic of Palau) that has no more than 20,000
inhabitants based on the most recent available
population statistics from the Census Bureau;
``(ii) any area located outside of the
boundaries of any incorporated or
unincorporated city, village, or borough having
a population exceeding 20,000;
``(iii) any area with a population density
of fewer than 250 persons per square mile; or
``(iv) any place that qualified as a `rural
area' and received support from the rural
health care support mechanism pursuant to the
Commission's rules in effect prior to December
1, 2004, and that continues to qualify as a
`rural area' pursuant to such rules.''.
(c) Schools, Libraries, Rural Health Care, Life-Line, Link-up, and
Toll Limitation Hold Harmless.--Except as provided in subsections
(h)(1)(A), (h)(7)(B), and (h)(7)(J) of section 254 of the
Communications Act of 1934 (47 U.S.C. 254), as amended by subsection
(b)--
(1) nothing in this Act (and the amendments made by this
Act) shall be construed as limiting, changing, modifying, or
altering the amount of support or means of distribution for the
schools, libraries, rural health care, life-line, link-up, and
toll limitation programs; and
(2) the Federal Communications Commission shall ensure that
such amendments do not result in a decrease of such support to
a level below the level for the fiscal year preceding the
fiscal year in which this Act is enacted.
SEC. 4. ELIGIBLE RECIPIENTS OF UNIVERSAL SERVICE SUPPORT.
(a) Amendment.--Section 214(e) of the Communications Act of 1934
(47 U.S.C. 214(e)) is amended--
(1) by redesignating paragraphs (3), (4), (5), and (6) as
paragraphs (6), (7), (9), and (8), respectively, and reordering
such paragraphs in numerical order; and
(2) by striking paragraphs (1) and (2) and inserting the
following:
``(1) Eligibility to receive universal service support.--A
communications service provider shall be eligible to receive
universal service support in accordance with the requirements
of this subsection only if such communications service
provider--
``(A) uses its own facilities in whole or in part
to make available throughout a service area the
services that have been determined by the Commission to
be universal services pursuant to section 254(c), and
adheres to the State carrier-of-last-resort
requirements that are imposed on incumbent carriers
serving the area;
``(B) advertises the supported services and their
associated charges throughout the service area using
media of general distribution, and advertises the
availability of life-line and link-up services in a
manner reasonably designed to reach those likely to
qualify for those services;
``(C) demonstrates the ability to remain functional
in emergency situations;
``(D) satisfies consumer protection and service
quality standards; and
``(E) meets the basic requirements for the
deployment of high-speed broadband service, and
provides high-speed broadband service, except that the
Commission shall establish a process--
``(i) whereby a determination can be made
to waive the requirements of this subparagraph
for 3 years upon application of a
communications service provider demonstrating
that the deployment and provision of high-speed
broadband service is not technically feasible
or would materially impair the communications
service provider's ability to continue to
provide local exchange service throughout its
service area, except that a waiver shall be
deemed automatically granted under this clause
for a communications service provider which can
demonstrate that the cost per line of deploying
and providing high-speed broadband service is
at least three times the average cost of
providing high-speed broadband service among
all recipients of universal service support,
subject to the renewal provisions set forth in
clause (ii);
``(ii) whereby the communications service
provider may seek renewal of such waiver every
3 years for as long as the deployment and
provision of high-speed broadband service is
not technically feasible or would materially
impair the communications service provider's
ability to continue to provide local exchange
service throughout its service area; and
``(iii) whereby any application of a
communications service provider for a waiver
pursuant to clause (i) on which the Commission
has not taken final action within 60 days of
the date of submission to the Commission shall
be deemed granted.
``(2) Eligibility criteria.--In addition to the criteria
specified in paragraph (1), the Commission shall establish such
additional eligibility criteria for the receipt of universal
service support by communications service providers as it deems
necessary and in the public interest. The criteria established
in paragraph (1) and the criteria established by the Commission
pursuant to this paragraph shall be used by State commissions
in determining which providers shall be designated as eligible
recipients of universal service support for the purpose of
paragraph (3).
``(3) Designation of eligible recipients.--A State
commission shall, upon its own motion or upon request,
designate as an eligible recipient of universal service support
only those providers meeting the requirements of paragraphs (1)
and (2).
``(4) Grandfather provision.--Recipients of universal
service support in any service area prior to the date of
enactment of the Universal Service Reform Act of 2007 shall
meet the eligibility requirements for eligible recipients of
universal service support--
``(A) as described in paragraphs (1)(A) through
(D), within one year of the date of enactment of the
Universal Service Reform Act of 2007; and
``(B) as described in paragraph (1)(E), within 5
years after the date of enactment of the Universal
Service Reform Act of 2007.
Failure of such an eligible recipient of universal service
support to maintain and meet the eligibility requirements
within the period required by subparagraph (A) or (B) after the
date of enactment of the Universal Service Reform Act of 2007
shall require the automatic termination of Federal universal
service support to that recipient. This paragraph shall not be
construed to prohibit such a recipient from obtaining a waiver
under paragraph (1)(E).''.
(b) Definitions.--Paragraph (9) of section 214(e) (as redesignated
by subsection (a)) is amended to read as follows:
``(9) Definitions.--As used in this subsection, the term
`service area' means a geographic area that aligns with the
area in which a communications service provider is licensed or
authorized to provide service for the purpose of determining
universal service obligations and support mechanisms. In the
case of an area served by a rural telephone company, `service
area' means such company's `study area' or the licensed or
authorized service area of any other communications service
provider serving an area that overlaps with the service area of
a rural telephone company. In the case of an area served by a
wireless service provider, `service area' means such company's
basic trading area.''.
SEC. 5. REMOVAL OF IMPEDIMENTS TO SUFFICIENT SUPPORT MECHANISMS.
Section 254 of the Communications Act of 1934 is amended by adding
at the end the following new subsection:
``(m) Removal of Limitations on High Cost Support Mechanisms.--The
limitations on universal service support contained in section 54.305 of
the Commission's regulations (47 CFR 54.305), and the individual caps
imposed upon carriers contained in section 36.631 of the Commission's
regulations (47 CFR 36.631), shall cease to be effective on the date of
enactment of the Universal Service Reform Act of 2007. The Commission
shall not, on or after such date of enactment, enforce or reimpose
limitations on support mechanisms for rural telephone companies or
exchanges they acquire.''.
SEC. 6. SCOPE OF SUPPORT.
Section 254 of the Communications Act of 1934 (47 U.S.C. 254) is
further amended by adding at the end the following new subsection:
``(n) Scope of Support.--The Commission in implementing the
requirements of this section as amended by the Universal Service Reform
Act of 2007 with respect to the distribution and use of Federal
universal service support shall not limit such distribution and use to
a single connection or primary line, and all residential and business
lines served by an eligible telecommunications carrier shall be
eligible for Federal universal service support.''.
SEC. 7. APPLICATION OF ANTIDEFICIENCY ACT; INVESTMENT OF CONTRIBUTIONS.
Section 254 of the Communications Act of 1934 (47 U.S.C. 254) is
further amended by adding at the end the following new subsections:
``(o) Proper Accounting of Universal Service Contributions.--
``(1) From all budgets.--Notwithstanding any other
provision of law, the receipts and disbursements of universal
service contributions under section 254 of the Communications
Act of 1934 (47 U.S.C. 254) shall not be counted as new budget
authority, outlays, receipts, or deficit or surplus for
purposes of--
``(A) the budget of the United States Government as
submitted by the President;
``(B) the Congressional budget;
``(C) the Balanced Budget and Emergency Deficit
Control Act of 1985; or
``(D) any other law requiring budget sequesters.
``(2) Additional exemptions.--Section 1341, subchapter II
of chapter 15, and sections 3302, 3321, 3322, and 3325 of title
31, United States Code, shall not apply to--
``(A) the collection and receipt of universal
service contributions, including the interest earned on
such contributions; or
``(B) disbursements or other obligations authorized
by the Federal Communications Commission under section
254 of the Communications Act of 1934 (47 U.S.C. 254).
``(p) Investment of Universal Service Fund Contributions.--
Notwithstanding any other provision of law, including sections 3302,
3321, 3322, and 3325 of title 31, United States Code, the cash balance
of receipts of universal service contributions collected pursuant to
this section shall be invested by the Commission or its designee in
conservative, liquid, interest-bearing investment vehicles of
government backed securities until such time as such receipts are
disbursed pursuant to this section 254.''.
SEC. 8. STATE AUTHORITY.
Section 254(f) of the Communications Act of 1934 (47 U.S.C. 254(f))
is amended to read as follows:
``(f) State Authority.--
``(1) In general.--A State may adopt regulations not
inconsistent with the Commission's rules to preserve and
advance universal service. In adopting those rules, a State may
require communications service providers to contribute to
universal service on the basis of--
``(A) revenues derived from the provision of
intrastate, interstate, and foreign communications
services by communications service providers;
``(B) working telephone numbers used by
communications service providers; or
``(C) any other current or successor identifier
protocols or connections to the network used by
communications service providers.
``(2) Disregard of interstate component.--A State may
require communications service providers to contribute under
paragraph (1) regardless of whether the service contains an
interstate component.
``(3) Guidelines.--Regulations adopted by a State under
this subsection shall result in a specific, predictable, and
sufficient mechanism to support universal service and shall be
competitively and technologically neutral, equitable, and
nondiscriminatory.''.
SEC. 9. REPORT TO CONGRESS.
The Commission shall, not later than 3 years after the date of
enactment of this Act and triennially thereafter, report to Congress
regarding the availability of the services designated by the Commission
as universal services to all Americans, including schools, libraries,
rural health care providers, and low income consumers.
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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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