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<dc:title>109 HR 5072 IH: Universal Service Reform Act of 2006</dc:title>
<dc:publisher>U.S. House of Representatives</dc:publisher>
<dc:date>2006-03-30</dc:date>
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<dc:language>EN</dc:language>
<dc:rights>Pursuant to Title 17 Section 105 of the United States Code, this file is not subject to copyright protection and is in the public domain.</dc:rights>
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<form> 
<distribution-code display="yes">I</distribution-code> 
<congress>109th CONGRESS</congress> <session>2d Session</session> 
<legis-num>H. R. 5072</legis-num> 
<current-chamber>IN THE HOUSE OF REPRESENTATIVES</current-chamber> 
<action> 
<action-date date="20060330">March 30, 2006</action-date> 
<action-desc><sponsor name-id="T000459">Mr. Terry</sponsor> (for himself and <cosponsor name-id="B000657">Mr. Boucher</cosponsor>) introduced the following bill; which was referred to the <committee-name committee-id="HIF00">Committee on Energy and Commerce</committee-name></action-desc> 
</action> 
<legis-type>A BILL</legis-type> 
<official-title>To reform the universal service provisions of the Communications Act of 1934, and for other purposes.</official-title> 
</form> 
<legis-body id="H146BF7DCDA1349F300ABD57BC824F55" style="OLC"> 
<section id="H695A9687C3524689AB486FFF6CDC3EA9" section-type="section-one" display-inline="no-display-inline"><enum>1.</enum><header>Short title</header><text display-inline="no-display-inline">This Act may be cited as the <quote><short-title>Universal Service Reform Act of 2006</short-title></quote>. </text></section> 
<section id="H11D6A5485E3746C381A8A560CFA87D7C"><enum>2.</enum><header>Findings and purposes</header> 
<subsection id="H4742F7D981954B96A400C393949FE218"><enum>(a)</enum><header>Findings</header><text>The Congress finds the following:</text> 
<paragraph id="H62DC994ABB8845A4B7F8D0136C9B69A7"><enum>(1)</enum><text>The current State and Federal mechanisms used to collect and distribute universal service support are not sustainable in a competitive and rapidly changing technological environment.</text></paragraph> 
<paragraph id="H7E2A7C942C174FAAAE605E4CA5FB3D2"><enum>(2)</enum><text display-inline="yes-display-inline">Voice-over-Internet-Protocol, wireless voice services, and popular flat rate, all-distance pricing plans for voice services have rendered meaningless the distinctions between and among interstate telecommunications and information services, and between and among intrastate telecommunications services and information services, thus making universal service support mechanisms based upon such jurisdictional concepts unsustainable.</text></paragraph> 
<paragraph id="H0961EB22D14C466388AE74050856994E"><enum>(3)</enum><text>Providing unlimited universal service support to multiple competing telecommunications carriers in the same service area results in an excessive demand for universal service support.</text></paragraph> 
<paragraph id="HD51BCD9A07BD44A191A4CE2C0008EA90"><enum>(4)</enum><text display-inline="yes-display-inline">Implicit support mechanisms were the universal service support mechanisms of choice for State commissions and during the natural monopoly era that preceded the Telecommunications Act of 1996. Implicit support mechanisms are effective in monopoly environments; however, they are inconsistent with the competitive environment fostered by the 1996 Act, and they should be eliminated.</text></paragraph> 
<paragraph id="HE8E7EF9DE4DE4FBF009227EBF2097EB3"><enum>(5)</enum><text>The Commission was required by the Telecommunications Act of 1996 to make all Federal universal service support mechanisms explicit. Explicit universal service support mechanisms are appropriate in the competitive telecommunications marketplace of the 21st century.</text></paragraph> 
<paragraph id="H2E66C2DCA47C4096BF56001F201B62F7"><enum>(6)</enum><text>Universal service support mechanisms should preserve incentives for continued investment in and enhancements to the public switched telephone network and to increase the availability of broadband services.</text></paragraph> 
<paragraph id="HD596639460994023B9D1FBC013EAED4B"><enum>(7)</enum><text>Maintaining predictable, sufficient, and sustainable universal service support will require that support be collected from a broad base of service providers and in a more competitively and technology neutral manner.</text></paragraph> 
<paragraph id="H8B49048644354D77AB5600E37F4EF46E"><enum>(8)</enum><text display-inline="yes-display-inline">The aggregate amount of universal service support is increasing annually and as a result, telecommunications carriers have had to pay an increased percentage of their total revenues to support universal service support mechanisms. By law, telecommunications carriers may pass through these costs to their subscribers, increasing the amount consumers are required to pay to maintain the continued growth of universal service support.</text></paragraph> 
<paragraph id="H395A7458DBF9455BA1F7F002048F169"><enum>(9)</enum><text display-inline="yes-display-inline">Federal universal service support mechanisms have succeeded in bringing quality and affordable telecommunications services to rural areas that are reasonably comparable to those in urban areas. Existing Federal universal service support mechanisms have helped to bring telecommunications services to approximately 95 percent of United States households.</text></paragraph></subsection> 
<subsection id="HE7C6FBD93EBF4E6C8801FF64F6B19146"><enum>(b)</enum><header>Purposes</header><text>The purposes of this Act are to reform State and Federal universal service support contribution and distribution mechanisms by—</text> 
<paragraph id="H46EDE847224D4997B4E36D5647272C27"><enum>(1)</enum><text>targeting universal service support specifically to eligible telecommunications carriers in high-cost geographic areas to ensure that communications services and high-speed broadband services are made available throughout all of the States of the United States in a fair and equitable manner;</text></paragraph> 
<paragraph id="HB3EBB2A5C6874D1EA0DA53C362005385"><enum>(2)</enum><text display-inline="yes-display-inline">constraining the growth of universal service support by extending the current cap on the portion of the high cost loop support mechanism that is distributed to rural incumbent local exchange carrier study areas to all eligible telecommunications carriers receiving support from the high cost support mechanism;</text></paragraph> 
<paragraph id="H48A4B086A4E94470A914D375600A029"><enum>(3)</enum><text display-inline="yes-display-inline">ensuring universal service support contributions are assessed fairly, equitably, and in a competitively neutral manner by means of a contribution assessment methodology determined by the Federal Communications Commission applicable to any entity that currently contributes to universal service support, provides real-time voice communications, over any platform, in which the voice component is the primary function, or offers a connection to the network over any platform;</text></paragraph> 
<paragraph id="HC1B9DCBC4131471A9BB700621F069300"><enum>(4)</enum><text display-inline="yes-display-inline">strengthening the criteria for eligible recipients of universal service support: and</text></paragraph> 
<paragraph id="H9D78DEDFDFDB43B7917FDEA3FEE8EA2"><enum>(5)</enum><text>ensuring that the United States becomes a world leader in broadband deployment by making high-speed broadband services and facilities eligible for universal service support.</text></paragraph></subsection></section> 
<section id="HF5FD685E2E664FA282932BCECB8E3744"><enum>3.</enum><header>Definitions</header><text display-inline="no-display-inline">Section 3(a) of the Communications Act of 1934 (<external-xref legal-doc="usc" parsable-cite="usc/47/153">47 U.S.C. 153(a)</external-xref>) is amended—</text> 
<paragraph id="H2C3108CFC91B4505AA22AB443CCB7C00"><enum>(1)</enum><text>by redesignating paragraphs (20) through (52) as paragraphs (22) through (54);</text></paragraph> 
<paragraph id="H84FB7B24E31946ABA82F98A0CD20E7D9"><enum>(2)</enum><text>by redesignating paragraphs (11) through (19) as paragraphs (12) through (20), respectively;</text></paragraph> 
<paragraph id="H12A766D888C14287AB7993A23DFD3229"><enum>(3)</enum><text>by inserting after paragraph (10) the following new paragraph:</text> 
<quoted-block style="OLC" id="H9754097BEF7641F980C6B9BF144EAE52" display-inline="no-display-inline"> 
<paragraph id="H149A51628CD343510064005560C8B6C5"><enum>(11)</enum><header>Communications service provider</header><text>The term <term>communications service provider</term> means any entity that—</text> 
<subparagraph id="H11FD7B442653429CA87B6FAB3E5EA123" display-inline="no-display-inline"><enum>(A)</enum><text display-inline="yes-display-inline">contributes to or receives universal service support for the most recent calendar quarter ending before the date of enactment of the <short-title>Universal Service Reform Act of 2006</short-title>;</text></subparagraph> 
<subparagraph id="HA2E13086D2344C7DAA39008E00EB7409"><enum>(B)</enum><text display-inline="yes-display-inline">uses telephone numbers or Internet protocol addresses, or their functional equivalents or successors, to offer a service or a capability—</text> 
<clause id="H8D56F18FC8FB424C93004BD565504220"><enum>(i)</enum><text>that provides or enables real-time 2-way voice communications; and</text></clause> 
<clause id="HDA5B9B32758A423697EAB502C8A3A48C"><enum>(ii)</enum><text>in which the voice component is the primary function; or</text></clause></subparagraph> 
<subparagraph id="H72917E9F08FB43C38287DEA8935B9582"><enum>(C)</enum><text display-inline="yes-display-inline">offers for a fee, 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.</text></subparagraph></paragraph><after-quoted-block>; and</after-quoted-block></quoted-block></paragraph> 
<paragraph id="H6A4DB8A74BC344338279E82582AC2C41"><enum>(4)</enum><text>by inserting after paragraph (20) (as redesignated by <internal-xref idref="H84FB7B24E31946ABA82F98A0CD20E7D9" legis-path="3.(2)">paragraph (2) of this section</internal-xref>) the following new paragraph:</text> 
<quoted-block id="HC1078C101CEA4FCAADDB4F634B85F57B" style="OLC"> 
<paragraph id="HCEDEA8635D0646209906F700E8498892"><enum>(21)</enum><header>High-speed broadband service</header> 
<subparagraph id="HB128DF1755F24488AF1C15A6F668AAC2"><enum>(A)</enum><header>Definition</header><text>The term <term>high-speed broadband service</term> 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 not lower than 1 megabit per second.</text></subparagraph> 
<subparagraph id="H5010DEEB714F4C36814DDC0000F87E86"><enum>(B)</enum><header>Commission speed adjustment requirements</header><text display-inline="yes-display-inline">The Commission shall review the speed requirement in <internal-xref idref="HB128DF1755F24488AF1C15A6F668AAC2" legis-path="(20)(A)">subparagraph (A)</internal-xref> every other year beginning the sixth year after implementation of the <short-title>Universal Service Reform Act of 2006</short-title> 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.</text></subparagraph> 
<subparagraph id="H6F1CD3F21007469F93B6DF86600319F8"><enum>(C)</enum><header>Internet protocol</header><text>The term <term>Internet protocol</term> means the Transmission Control Protocol/Internet Protocol, or any predecessor or successor protocols to such protocol.</text></subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block></paragraph></section> 
<section id="H6FDA284193C1421EAD60DFCA2FBF0042"><enum>4.</enum><header>Universal service reform</header> 
<subsection id="H5507126103B945559B2B00A08FDCBA4E"><enum>(a)</enum><header>In General</header><text display-inline="no-display-inline">Section 254 of the Communications Act of 1934 (<external-xref legal-doc="usc" parsable-cite="usc/47/254">47 U.S.C. 254</external-xref>) is amended by amending subsections (a) through (e) to read as follows:</text> 
<quoted-block id="H0D60A1A546C947C9989E995EF09CE26F" style="OLC"> 
<subsection id="HBB7DC852CC0C426E893304E458F57FD2"><enum>(a)</enum><header>Procedures to reform universal service</header> 
<paragraph id="HF6BDFB6901294B63B5C975E75A542D"><enum>(1)</enum><header>Federal-state joint board on universal service</header><text display-inline="yes-display-inline">Within one month after the date of enactment of the Universal Service Reform Act of 2006, 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 2006), 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 9 months after the date of enactment of the Universal Service Reform Act of 2006.</text></paragraph> 
<paragraph id="H04674C8997E742DF98D62C3500A280EC"><enum>(2)</enum><header>Commission action</header><text>The Commission shall initiate a single proceeding to consider the recommendations from the Joint Board required by <internal-xref idref="HF6BDFB6901294B63B5C975E75A542D" legis-path="(a)(1)">paragraph (1)</internal-xref> and shall complete such proceeding within 18 months after the date of enactment of the <short-title>Universal Service Reform Act of 2006</short-title>. 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.</text></paragraph></subsection> 
<subsection id="HAA81AEA8F88442D0A624A64C622DC1DB"><enum>(b)</enum><header>Universal service principles</header><text>The Joint Board and the Commission shall base policies for the preservation and advancement of universal service on the following principles:</text> 
<paragraph id="H34F4D53462E04E90B71F54F69D1F00D0"><enum>(1)</enum><header>Quality and rates</header><text>Quality services should be available at just, reasonable, and affordable rates.</text></paragraph> 
<paragraph id="HF5640E50E0F04380A97C30B98BFEE9DA"><enum>(2)</enum><header>Access to advanced services</header><text>Access to advanced telecommunications and information services should be provided in all regions of the Nation.</text></paragraph> 
<paragraph id="H2DC8F174E63C45818F95C3B4219D42C7"><enum>(3)</enum><header>Access in rural and high cost areas</header><text display-inline="yes-display-inline">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 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.</text></paragraph> 
<paragraph id="H1CCB19433E7E40169228CC2922693370"><enum>(4)</enum><header>Equitable and nondiscriminatory contributions</header><text>All communications service providers should make equitable and nondiscriminatory contributions to the preservation and advancement of universal service. </text></paragraph> 
<paragraph id="H40A8807D278943C5A11497B510A98934"><enum>(5)</enum><header>Specific and predictable support mechanisms</header><text>There should be specific, predictable and sufficient Federal and State mechanisms to preserve and advance universal service.</text></paragraph> 
<paragraph id="H1AC2D9F5A161405EB0FEB972A9389D13"><enum>(6)</enum><header>Access to advanced telecommunications services for schools, health care, and libraries</header><text>Elementary and secondary schools and classrooms, health care providers, and libraries should have access to advanced telecommunications services as described in subsection (h).</text></paragraph> 
<paragraph id="H564FF90502EF411A8900A5007D51EE41"><enum>(7)</enum><header>Additional principles</header><text>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.</text></paragraph></subsection> 
<subsection id="H43CFE3C1751041A48705F75C40053F9"><enum>(c)</enum><header>Definition</header> 
<paragraph id="H5396390655A04BBBBF469729FFE743EE"><enum>(1)</enum><header>In general</header><text display-inline="yes-display-inline">Universal service includes the services defined on the date of enactment of the <short-title>Universal Service Reform Act of 2006</short-title> as universal services, 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—</text> 
<subparagraph id="H75E9A1692A0648E6A31DD9F8652D804C"><enum>(A)</enum><text>are essential to education, public health, or public safety;</text></subparagraph> 
<subparagraph id="H573237D31F274EE89E5697CEA71E9FD"><enum>(B)</enum><text>are being deployed in public telecommunications networks by communications service providers; and</text></subparagraph> 
<subparagraph id="H8DAAB9B8588745EEAAA3F58D67E4634E"><enum>(C)</enum><text>are consistent with the public interest, convenience, and necessity.</text></subparagraph></paragraph> 
<paragraph id="H85FB731B66344D81ADF187482381B0C5"><enum>(2)</enum><header>Alterations and modifications</header><text display-inline="yes-display-inline">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.</text></paragraph> 
<paragraph id="H01C9CEE37D8142D08DFEB4B62B3D7F8B"><enum>(3)</enum><header>Special services</header><text>In addition to the services included in the definition of universal service under <internal-xref idref="H5396390655A04BBBBF469729FFE743EE" legis-path="(c)(1)">paragraph (1)</internal-xref>, the Commission may designate additional services for such support mechanisms for schools, libraries, and health care providers for the purposes of subsection (h).</text></paragraph> 
<paragraph id="H4E63FE0C18A744A500AE66A6E18FB22B"><enum>(4)</enum><header>High-speed broadband service</header><text display-inline="yes-display-inline">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.</text></paragraph></subsection> 
<subsection id="H593AE6DEE4AF47D282DF0094272CEF13"><enum>(d)</enum><header>Universal service support contributions</header> 
<paragraph id="H4839B11D77984771B43656E12620FE2F"><enum>(1)</enum><header>Calculating universal service support contributions</header> 
<subparagraph id="HB15B5F704C554CA38FFB21AD1D034949"><enum>(A)</enum><header>In general</header><text display-inline="yes-display-inline">The Commission shall assess contributions to universal service support mechanisms from communications service providers. The Commission shall assess such contributions in a manner that is equitable and competitively neutral, is nondiscriminatory in nature, and ensures that communications service providers are subject to similar obligations. The Commission may employ any methodology to assess such contributions, including consideration of—</text> 
<clause id="HA8EE5F807BB746D59579DFBB00C11B56"><enum>(i)</enum><text display-inline="yes-display-inline">revenues derived from the provision of intrastate, interstate, and foreign communications services by communications service providers;</text></clause> 
<clause id="H2A16060C3A50477AAE9C1260405CD670"><enum>(ii)</enum><text display-inline="yes-display-inline">working telephone numbers used by communications service providers; or</text></clause> 
<clause id="H8C7A3704E79C453393EEDC3C947FE5D5"><enum>(iii)</enum><text display-inline="yes-display-inline">any other current or successor identifier protocols or connections to the network used by communications service providers.</text></clause></subparagraph> 
<subparagraph id="HE8B04DAED1A24B559FF53CAF912E3E36"><enum>(B)</enum><header>Use of more than one methodology</header><text>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.</text></subparagraph> 
<subparagraph id="H795C4D84F0B144329915F83EC41171DB"><enum>(C)</enum><header>Low volume exception</header><text>The Commission may limit the contributions of communications service providers whose customers typically make a low volume of calls on a monthly basis.</text></subparagraph> 
<subparagraph id="H61AC6A3A13D74A61A2E581B8891F7C4"><enum>(D)</enum><header>De minimis exception</header><text display-inline="yes-display-inline">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.</text></subparagraph></paragraph> 
<paragraph id="H7CB23373E776451394898EADCE3056D3"><enum>(2)</enum><header>Reports</header><text>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.</text></paragraph> 
<paragraph id="HF26FECB2243348A6AEDE8425D0C64C7F"><enum>(3)</enum><header>Universal service support contribution limits</header> 
<subparagraph id="HB64A9A5C2F28498EA465B516AF1F25E5"><enum>(A)</enum><header>Limitation</header><text display-inline="yes-display-inline">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 <short-title>Universal Service Reform Act of 2006</short-title>, as adjusted annually by a growth factor and once, within one year of the date of enactment of the Universal Service Reform Act of 2006, by the amounts that the adjustments in subsections (e)(3) and (m) increase demand for universal service support.</text></subparagraph> 
<subparagraph id="H5C9A82A8AE7E4764872531A48FF85CE"><enum>(B)</enum><header>Growth factor</header><text display-inline="yes-display-inline">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 rural incumbent local exchange carrier working loops, if that percentage change is greater than zero.</text></subparagraph> 
<subparagraph id="H8B7CDB0743DE45A0A891854284D57835"><enum>(C)</enum><header>Intercarrier compensation recovery mechanism</header><text>If at any time after the date of enactment of the Universal Service Reform Act of 2006 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 once, within 3 months of mandating that intercarrier compensation revenues be recovered through an alternative revenue recovery mechanism, by the amount that such revenue recovery mechanism increases demand for universal service support.</text></subparagraph></paragraph> </subsection> 
<subsection id="H6AD8A0E669FD4FF9ACBD074ED67BA000"><enum>(e)</enum><header>Distribution and use of universal service support</header> 
<paragraph id="HD68F406D2DCC4D3CA3C9501D00978400"><enum>(1)</enum><header>In general</header><text>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 services for which the support is intended. Any such support should be explicit and sufficient to achieve the purposes of this section.</text></paragraph> 
<paragraph id="HF7AA12DE293640FB814C6977ADEEBDC3"><enum>(2)</enum><header>Uses of universal service support</header><text>The use of universal service support for all rural, insular, and high cost areas—</text> 
<subparagraph id="H37AC944BFA33419CB38241166DBA6036"><enum>(A)</enum><text>should be expanded to include high-speed broadband services;</text></subparagraph> 
<subparagraph id="H865E29CBBA5F4DFAAE68CD1873084ECA"><enum>(B)</enum><text display-inline="yes-display-inline">should be based on actual costs reasonably incurred in providing such services, 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 <external-xref legal-doc="regulation" parsable-cite="cfr/47/54.309">section 54.309</external-xref> of title 47, Code of Federal Regulations (as in effect on the date of the enactment of the Universal Service Reform Act of 2006); and</text></subparagraph> 
<subparagraph id="H4BF4A0F2DB524CDFA22473477E91CB17"><enum>(C)</enum><text>should be available to communications service providers that are determined to be eligible telecommunications carriers under section 214(e).</text></subparagraph></paragraph> 
<paragraph id="HBBA0735FA05D422798B98804E61641DF"><enum>(3)</enum><header>Support for non-rural carriers providing service in rural, insular, and high cost areas</header> 
<subparagraph id="H22C45C272C404F85A5BCB388A0C14EBF"><enum>(A)</enum><header>Calculating support</header><text>Except with respect to non-rural carriers serving insular areas, in calculating Federal universal service support for eligible telecommunications carriers that serve rural, insular, and high cost areas and that are not rural telephone companies, the Commission shall, subject to the provisions of <internal-xref idref="H51BCCFEE6806404998D00AA03397BF0" legis-path="(e)(3)(B)">subparagraph (B)</internal-xref>, revise the Commission’s support mechanism for rural, insular, and 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.</text></subparagraph> 
<subparagraph id="H51BCCFEE6806404998D00AA03397BF0"><enum>(B)</enum><header>Hold harmless</header><text>In implementing this paragraph, the Commission shall ensure that no non-rural carrier receives less Federal support calculated under <internal-xref idref="HD68F406D2DCC4D3CA3C9501D00978400" legis-path="(e)(1)">paragraph (1)</internal-xref> 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 <short-title>Universal Service Reform Act of 2006</short-title>.</text></subparagraph></paragraph> 
<paragraph id="H7C95ACFA08AE4866B2A76E3F64052C19"><enum>(4)</enum><header>Administration: accountability standards</header> 
<subparagraph id="H7EA9213A4DC741E488CC8E3B503CCA30"><enum>(A)</enum><header>Network traffic identification accountability standards</header> 
<clause id="H350DE444D59B49C4BB53AA628200184E"><enum>(i)</enum><header>Network traffic identification standards</header><text display-inline="yes-display-inline">Communications service providers shall ensure that all traffic that originates on their networks contains sufficient information to allow for traffic identification by other communications service providers that transport, transit, or terminate such traffic, including information on the identity of the originating provider, the calling and called parties, and the jurisdiction in which the traffic originates.</text></clause> 
<clause id="H3B4FF668A2CD43CE85BF9F1529D4DB25"><enum>(ii)</enum><header>Network traffic identification rulemaking</header><text>The Commission, in consultation with the States, shall initiate a single rulemaking no later than 180 days after the date of enactment of the <short-title>Universal Service Reform Act of 2006</short-title> to establish rules and enforcement provisions for traffic identification. Such rules shall include mandatory requirements for identification of all traffic by the originating provider and shall require that such traffic identification information is transferred to transporting, transiting, and terminating providers unchanged and unaltered. The rules shall also establish procedures for carriers to contest insufficiently labeled traffic in a prompt manner and shall establish appropriate enforcement and penalty provisions for carriers that insufficiently label traffic. The processes to adjudicate insufficiently labeled traffic shall require the relevant providers to demonstrate their compliance with the Commission’s traffic labeling standards.</text></clause> 
<clause id="H3D4643E544ED4CCEBD719E47F1FCF950"><enum>(iii)</enum><header>Network traffic identification enforcement</header><text>The Commission shall adopt clear penalties, fines, and sanctions for insufficiently labeled traffic. The penalties, fines, and sanctions established by the Commission shall provide—</text> 
<subclause id="HFB6143D880114C3197F8712423F5E506"><enum>(I)</enum><text>adequate retroactive monetary reimbursement to the defrauded provider or providers equal to the rate differential between accurately and inaccurately labeled traffic;</text></subclause> 
<subclause id="H90BBB2BF3F194B96B2691B185EF4CA7E"><enum>(II)</enum><text>monetary fines determined by the Commission;</text></subclause> 
<subclause id="H00C406F3B70846349026BBE4D84DC25E"><enum>(III)</enum><text>a deterrence penalty for those offenders who do not resolve their violations or remit the required reimbursements to defrauded provider or providers;</text></subclause> 
<subclause id="H5D86D83D9E7741CA0062CF5160536D63"><enum>(IV)</enum><text>an adequate deterrence penalty against frivolous accusations;</text></subclause> 
<subclause id="HF4BD16FCAD0A4C67883879CFDF5EB1E5"><enum>(V)</enum><text>the ability of network traffic operators to block inaccurately labeled traffic;</text></subclause> 
<subclause id="H52BDFF3F858C4C3A9D30A7BAF7F625EA"><enum>(VI)</enum><text>the decertification of repeat offenders or those providers unwilling to comply with the established rules and penalties; and</text></subclause> 
<subclause id="HAEF294D40AEF47FD00A59DFA3E63BFE"><enum>(VII)</enum><text>specific and clear time frames for the investigation and subsequent penalty, fines, and sanctions of offending providers, to ensure proper accountability.</text></subclause></clause> 
<clause id="H06FD857E10F54E61AA7500C100529BD3"><enum>(iv)</enum><header>Accountability for network traffic exchange</header><text>To ensure that all communications service providers are accountable for the volume of traffic the providers terminate on other carriers’ networks, the Commission shall ensure that all providers are compensated for the use of their networks by other providers.</text></clause></subparagraph> 
<subparagraph id="H09586CAF16F14425A471019EB0489500"><enum>(B)</enum><header>Universal service distribution accountability standards</header><text>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.</text></subparagraph> </paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block></subsection> 
<subsection id="H4E38A49597A84C129C27601873440941"><enum>(b)</enum><header>Rural Health Care Support Mechanisms</header> 
<paragraph id="H7DF2098C07774D648C974F5607A4B9AB"><enum>(1)</enum><header>Amendment</header><text>Subparagraph (A) of section 254(h)(1) of the Communications Act of 1934 (<external-xref legal-doc="usc" parsable-cite="usc/47/254">47 U.S.C. 254(h)(1)</external-xref>) is amended to read as follows:</text> 
<quoted-block style="OLC" id="H9080A797AE71422A8F8E61922523F9E4" display-inline="no-display-inline"> 
<subparagraph id="H08A27429CD624CD5B3EF4B3039A3F2F8"><enum>(A)</enum><header>Health care services for rural areas</header><text display-inline="yes-display-inline">Within 180 days after the date of enactment of the <short-title>Universal Service Reform Act of 2006</short-title>, 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.</text></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block></paragraph> 
<paragraph id="H1C13B299880040FF860504065B86A3D0"><enum>(2)</enum><header>Definition of health care provider</header><text>Subparagraph (B) of section 254(h)(7) of such Act (<external-xref legal-doc="usc" parsable-cite="usc/47/254">47 U.S.C. 254(h)(7)(B)</external-xref>) is amended to read as follows:</text> 
<quoted-block style="OLC" id="H4D43318271C246288542C2E530E1F0DF" display-inline="no-display-inline"> 
<subparagraph id="H6736E3FF10604733B49414817E2F94E6"><enum>(B)</enum><header>Health care provider</header><text display-inline="yes-display-inline">The term <term>health care provider</term> means—</text> 
<clause id="H6AA72D8F3CEB474AB6D02014543E28EA"><enum>(i)</enum><text>post-secondary educational institutions offering health care instruction, teaching hospitals, and medical schools; </text></clause> 
<clause id="H00000C0A86DB42D191B4A36BA55F8400"><enum>(ii)</enum><text>community health centers or health centers providing health care to migrants; </text></clause> 
<clause id="H9BBF7754C40942DE8D54234D9CA21317"><enum>(iii)</enum><text>local health departments or agencies; </text></clause> 
<clause id="H068B330AFF96484983D28B006270D2D"><enum>(iv)</enum><text>community mental health centers; </text></clause> 
<clause id="H1F1F7E6CCEEF46F1B0B386F1E0364983"><enum>(v)</enum><text>not-for-profit hospitals; </text></clause> 
<clause id="H9CBF536902A941DCB94E007FC84356A7"><enum>(vi)</enum><text>critical access hospitals; </text></clause> 
<clause id="HE1026C0267814CA8B346DA542FE1E800"><enum>(vii)</enum><text>rural hospitals with emergency rooms; </text></clause> 
<clause id="H7277D15F486748DE99292F6C54EBC82B"><enum>(viii)</enum><text>rural health clinics; </text></clause> 
<clause id="HFFE667588CB3476DAFFDA1E820ACFEF0"><enum>(ix)</enum><text>not-for-profit nursing homes or skilled nursing homes; </text></clause> 
<clause id="H554355F13A1745B691BEC2C124613324"><enum>(x)</enum><text>hospice providers; </text></clause> 
<clause id="H6C5A7138248F4ABBA400ABB41B30E949"><enum>(xi)</enum><text>emergency medical services facilities; </text></clause> 
<clause id="H8F51ECB888644DE587CD8F7900EC3057"><enum>(xii)</enum><text>rural dialysis facilities; </text></clause> 
<clause id="HA5B5BB4D98E848018F3D083B1CA5AB3F"><enum>(xiii)</enum><text>elementary, secondary, and post-secondary school health clinics; and </text></clause> 
<clause id="HA551347729594348AAD4D00C5F69A"><enum>(xiv)</enum><text>consortia of health care providers consisting of one or more entities described in clauses (i) through (xiii).</text></clause></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block></paragraph> 
<paragraph id="HE9AEB2C5F52E4A888800290096AAE6DA"><enum>(3)</enum><header>Definition of rural for health care support</header><text>Section 254(h)(7) of such Act is further amended by adding at the end the following new subparagraph:</text> 
<quoted-block style="OLC" id="H12D6B2E80D0C4C3B933FC0C3C1E3D524" display-inline="no-display-inline"> 
<subparagraph id="H7190D97287984505B100BE6E20CC5293"><enum>(J)</enum><header>Rural area</header><text display-inline="yes-display-inline">Within 180 days after the date of enactment of the <short-title>Universal Service Reform Act of 2006</short-title>, 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 <quote>rural area</quote> is—</text> 
<clause id="H4151BB949217404DBA6900CF3A5DB98"><enum>(i)</enum><text>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; </text></clause> 
<clause id="H993B38B18527497DA41F80C58E4CE5F"><enum>(ii)</enum><text>any area located outside of the boundaries of any incorporated or unincorporated city, village, or borough having a population exceeding 20,000; </text></clause> 
<clause id="HCC4A749A2886462C8B0200B52629E841"><enum>(iii)</enum><text>any area with a population density of fewer than 250 persons per square mile; or </text></clause> 
<clause id="HE1A81F9D7E6C4A789FB110DEE2504F03"><enum>(iv)</enum><text>any place that qualified as a <quote>rural area</quote> 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 <quote>rural area</quote> pursuant to such rules.</text></clause></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block></paragraph> </subsection> 
<subsection id="H0364795A9D3E43C7A5A40021FCCD26F1"><enum>(c)</enum><header>Schools, libraries, rural health care, life-line, link-up, and toll limitation hold harmless</header><text display-inline="yes-display-inline">Except as provided in subsections (h)(1)(A), (h)(7)(B), and (h)(7)(J) of section 254 of the Communications Act of 1934 (<external-xref legal-doc="usc" parsable-cite="usc/47/254">47 U.S.C. 254</external-xref>), as amended by subsection (b)—</text> 
<paragraph id="H43098BBD0A414A3F8645237D00EB56C8"><enum>(1)</enum><text>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</text></paragraph> 
<paragraph id="H64C655F5D3D04527A364476D22D628B6"><enum>(2)</enum><text display-inline="yes-display-inline">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.</text></paragraph></subsection></section> 
<section id="H4E36700222A54598A6332169066FBDA5"><enum>5.</enum><header>Eligible recipients of universal service support</header> 
<subsection id="H82A9A31265E24C99900729AB6109ECC"><enum>(a)</enum><header>Amendment</header><text display-inline="yes-display-inline">Section 214(e) of the Communications Act of 1934 (<external-xref legal-doc="usc" parsable-cite="usc/47/214">47 U.S.C. 214(e)</external-xref>) is amended—</text> 
<paragraph id="H51541BD1F9524F67836E17BECBAE7FB5"><enum>(1)</enum><text>by redesignating paragraphs (3), (4), (5), and (6) as paragraphs (6), (7), (9), and (8), respectively, and reordering such paragraphs in numerical order; and</text></paragraph> 
<paragraph id="H06A607D514294CC88355CBA374D99E32"><enum>(2)</enum><text>by striking paragraphs (1) and (2) and inserting the following:</text> 
<quoted-block style="OLC" id="H6FFBDBFC59334F4CA2CC6703FDEB8C7" display-inline="no-display-inline"> 
<paragraph id="H949870F033144D13A26CAB3FB79CE2D9" display-inline="no-display-inline"><enum>(1)</enum><header>Eligibility to receive universal service support</header><text>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—</text> 
<subparagraph id="H746A5732F75E4DB6A1B27B0062AE5E1E"><enum>(A)</enum><text display-inline="yes-display-inline">uses its own facilities to make available in a service area the services that have been determined by the Commission to be universal services pursuant to section 254(c), and responds to reasonable requests for service from persons located anywhere in such service area consistent with carrier-of-last-resort requirements in the State in which the requesting person is located;</text></subparagraph> 
<subparagraph id="HC64622890EA449D98690664FBB97BBED"><enum>(B)</enum><text>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;</text></subparagraph> 
<subparagraph id="H577A51266D7F4DEF963178A4533020F7"><enum>(C)</enum><text>demonstrates the ability to remain functional in emergency situations;</text></subparagraph> 
<subparagraph id="H8924707C6C1F493188C14F7130E09FE0"><enum>(D)</enum><text>satisfies consumer protection and service quality standards; and</text></subparagraph> 
<subparagraph id="H917F4ADB74B34AFA8CB34CA7E06ADE0"><enum>(E)</enum><text display-inline="yes-display-inline">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—</text> 
<clause id="H9C72FF04A47249C887AD0478E60013D"><enum>(i)</enum><text display-inline="yes-display-inline">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); </text></clause> 
<clause id="HF07D54F73395424E9E2EE33F70ABF00"><enum>(ii)</enum><text>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</text></clause> 
<clause id="H16218B63E50F4AE2BC4118B1ECDA53AA"><enum>(iii)</enum><text display-inline="yes-display-inline">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.</text></clause></subparagraph></paragraph> 
<paragraph id="HAB38F3615DDD4C94A8A8412ECC7B52A9"><enum>(2)</enum><header>Eligibility criteria</header><text>In addition to the criteria specified in <internal-xref idref="H949870F033144D13A26CAB3FB79CE2D9" legis-path="(1)">paragraph (1)</internal-xref>, 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 <internal-xref idref="H949870F033144D13A26CAB3FB79CE2D9" legis-path="(1)">paragraph (1)</internal-xref> 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 <internal-xref idref="HD200B5F155A1495F8F5C92841F7E1170" legis-path="(3)">paragraph (3)</internal-xref>.</text></paragraph> 
<paragraph id="HD200B5F155A1495F8F5C92841F7E1170"><enum>(3)</enum><header>Designation of eligible recipients</header><text>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 <internal-xref idref="H949870F033144D13A26CAB3FB79CE2D9" legis-path="(1)">paragraphs (1)</internal-xref> and <internal-xref idref="HAB38F3615DDD4C94A8A8412ECC7B52A9" legis-path="(2)">(2)</internal-xref>.</text></paragraph> 
<paragraph id="HFD292C4BA636442B9FD1096D1C3093C0"><enum>(4)</enum><header>Grandfather provision</header><text display-inline="yes-display-inline">Recipients of universal service support in any service area prior to the date of enactment of the <short-title>Universal Service Reform Act of 2006</short-title> shall meet the eligibility requirements for eligible recipients of universal service support—</text> 
<subparagraph id="H6FDD968DE00C46B8A07F6BB83284ACC3"><enum>(A)</enum><text>as described in <internal-xref idref="H949870F033144D13A26CAB3FB79CE2D9" legis-path="(1)">paragraphs (1)(A)</internal-xref> through (D) within one year of the date of enactment of the Universal Service Reform Act of 2006; and</text></subparagraph> 
<subparagraph id="H70E4CF7E74CD4C5BB7A7304216FE02A9"><enum>(B)</enum><text>as described in <internal-xref idref="H949870F033144D13A26CAB3FB79CE2D9" legis-path="(1)(F)">paragraph (1)(E)</internal-xref> within 5 years after the date of enactment of the <short-title>Universal Service Reform Act of 2006</short-title>.</text></subparagraph><continuation-text continuation-text-level="paragraph">Failure of such an eligible recipient of universal service support to maintain and meet the eligibility requirements within the period required by <internal-xref idref="H6FDD968DE00C46B8A07F6BB83284ACC3" legis-path="(4)(A)">subparagraph (A)</internal-xref> or <internal-xref idref="H70E4CF7E74CD4C5BB7A7304216FE02A9" legis-path="(4)(B)">(B)</internal-xref> after the date of enactment of the <short-title>Universal Service Reform Act of 2006</short-title> 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 <internal-xref idref="H917F4ADB74B34AFA8CB34CA7E06ADE0" legis-path="(1)(E)">paragraph (1)(E)</internal-xref>.</continuation-text></paragraph> 
<paragraph id="H26D4B1B488DF432189CB795C741219DB"><enum>(5)</enum><header>State authority</header><text display-inline="yes-display-inline">Nothing in this Act or the Universal Service Reform Act of 2006 precludes a State from establishing funding mechanisms to preserve and advance universal service within that State pursuant to section 254(f) of this Act.</text></paragraph><after-quoted-block>.</after-quoted-block></quoted-block></paragraph></subsection> 
<subsection id="HBA07A84309554863AF09353687DB0001"><enum>(b)</enum><header>Definitions</header><text>Paragraph (9) of section 214(e) (as redesignated by <internal-xref idref="H82A9A31265E24C99900729AB6109ECC" legis-path="5.(a)">subsection (a)</internal-xref>) is amended to read as follows:</text> 
<quoted-block id="H1C98171F34B84F72AE47A0363600381" style="OLC"> 
<paragraph id="H03E88F3853E04698A589D2C136E7842C"><enum>(9)</enum><header>Definitions</header><text display-inline="yes-display-inline">As used in this subsection, the term <term>service area</term> 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, <quote>service area</quote> means such company’s <quote>study area</quote> 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.</text> </paragraph><after-quoted-block>.</after-quoted-block></quoted-block></subsection></section> 
<section id="HACAB2FD9016F4CD5BAF800F87200BF3F"><enum>6.</enum><header>Removal of impediments to sufficient support mechanisms</header><text display-inline="no-display-inline">Section 254 of the Communications Act of 1934 is amended by adding at the end the following new subsection:</text> 
<quoted-block id="H598298BB92834A9AB7A8003131790276" style="OLC"> 
<subsection id="H5093A25551284297002EC7AA686DFCBC"><enum>(m)</enum><header>Removal of limitations on high cost support mechanisms</header><text display-inline="yes-display-inline">The limitations on universal service support contained in section 54.305 of the Commission’s regulations (47 C.F.R. 54.305), and the individual caps imposed upon carriers contained in section 36.631 of the Commission's regulations (47 C.F.R. 36.631), shall cease to be effective on the date of enactment of the <short-title>Universal Service Reform Act of 2006</short-title>. 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 based on fund size or other considerations unrelated to the sufficiency of support to achieve the purposes of this section.</text></subsection><after-quoted-block>.</after-quoted-block></quoted-block></section> 
<section id="HDDF5A2192CD94E8CB0EF5FB27F09F1E"><enum>7.</enum><header>Application of Antideficiency Act</header> 
<subsection id="H13BC5014E109418BB17C27438B28A6AD"><enum>(a)</enum><header>Making Antideficiency Act Exemption Permanent</header><text>Section 254 of the Communications Act of 1934 (<external-xref legal-doc="usc" parsable-cite="usc/47/254">47 U.S.C. 254</external-xref>) is amended by adding the following subsection (n):</text> 
<quoted-block id="HA1B0205FA37B4C8FB9AA8987AE8193F1" style="OLC"> 
<subsection id="H45F60DE23D2A4B60857FF146CF99C5CC"><enum>(n)</enum><header>Application of antideficiency act</header><text>Section 1341 and subchapter II of <external-xref legal-doc="usc-chapter" parsable-cite="usc-chapter/31/15">chapter 15</external-xref> of title 31, United States Code, do not apply—</text> 
<paragraph id="HA8D58D92FD65472685A90894DFE501F2"><enum>(1)</enum><text>to any amount collected or received as Federal universal service contributions required by this section, including any interest earned on such contributions; nor</text></paragraph> 
<paragraph id="H331173A0D4B741B08FC8BC8B870616E0"><enum>(2)</enum><text>to the expenditure or obligation of amounts attributable to such contributions for universal service support programs established pursuant to this section.</text></paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block></subsection> 
<subsection id="HC0E5265297CC4D11BF33BA00E2A703A4"><enum>(b)</enum><header>Investment of Universal Service Fund Contributions</header><text>Notwithstanding any other provision of law, including but not limited to sections 3302, 3321, 3322, and 3325 of title 31, United States Code, the cash balance of receipts of universal service contributions collected pursuant to section 254 of the Communications Act of 1934 (<external-xref legal-doc="usc" parsable-cite="usc/47/254">47 U.S.C. 254</external-xref>) 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 section 254 of the Communications Act of 1934 (<external-xref legal-doc="usc" parsable-cite="usc/47/254">47 U.S.C. 254</external-xref>).</text></subsection></section> 
<section id="H1C611C4B51FE48F69EF906B505870053"><enum>8.</enum><header>Scope of support</header><text display-inline="no-display-inline">The Commission in implementing the requirements of this Act 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.</text></section> 
<section id="H111C60F518A348FD84FD864975C06400"><enum>9.</enum><header>Report to Congress</header><text display-inline="no-display-inline">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.</text></section> 
</legis-body> 
</bill> 


