1.This Act may be cited as the
Universal Service Reform Act of
2010
.
2.
(a)Section 3(a) of the
Communications Act of 1934 (47 U.S.C. 153(a)) is amended—
(1)by adding the
following new paragraphs:
(53)Communications
service providerThe 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 2010;
(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.
(54)The term high-cost support
means high cost
loop support, high cost model support, local switching support, interstate
access support, and interstate common line support, as such forms of support
are described in part 54 of title 47, Code of Federal Regulations,
respectively, as in effect on the date of enactment of the
Universal Service Reform Act of
2010, or any other support or revenue recovery mechanism
established by the Commission as part of the high cost fund of the universal
service fund pursuant to section 254 or the Universal Service Reform Act of 2010.
(55)High-speed
broadband service
(A)The
term high-speed broadband service means a 2-way network that uses
Internet 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, or 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 or exceeding the
minimum data rate requirement established by the Commission under section
254(q).
(B)In
subparagraph (A), the term Internet
protocol means the Transmission Control Protocol/Internet Protocol or
any predecessor or successor protocols to such protocol.
(56)Mobile wireless
communications serviceThe term mobile wireless
communications service
means a commercial mobile service (as defined in
section 332(d)), except that such term shall only apply to such service as it
relates to 2-way communications.
(57)Mobile wireless
communications service providerThe term mobile wireless
communications service provider
means a provider of a mobile wireless
communications service.
; and
(2)by reordering paragraphs (1) through (52)
of such section and the additional paragraphs added by paragraph (1) of this
section in alphabetical order based on the headings of such paragraphs and
renumbering such paragraphs as so reordered.
(b)Terms used in this Act shall have the meanings set
forth in the Communications Act of 1934 (47 U.S.C. 151 et seq.) unless
otherwise specified.
<enum>I</enum><header>Universal Service
Reform</header>
<section id="H1A406DD7D72D4AF8A5E18070F774278E"><enum>101.</enum><header>Universal
service reform procedures and principles</header><text display-inline="no-display-inline">Subsections (a), (b), and (c) of section 254
of the Communications Act of 1934 (47 U.S.C. 254) are amended to read as
follows:</text>
<quoted-block id="H55E20D3B6B354B739BC085AD73B126CF" style="OLC">
<subsection id="HE99E2EA00C8344188DF7CC1D8ED15B84"><enum>(a)</enum><header>Procedures to
reform universal service</header>
<paragraph id="H8FB96303699440C4853A178C3096E5AD"><enum>(1)</enum><header>Federal-state
joint board on universal service</header>
<subparagraph id="H208BA14BB1994F9D8E9B4E40B5E37BD7"><enum>(A)</enum><header>Proceeding
required</header><text>Within 1 month after the date of enactment of the
<short-title>Universal Service Reform Act of
2010</short-title>, the Commission shall institute and refer to the
Federal-State Joint Board under section 410(c) a proceeding to recommend
changes to any of its regulations in order to implement section 214(e) and this
section (as amended by the <short-title>Universal Service
Reform Act of 2010</short-title>), including the definition of the services
that are supported by Federal universal service support mechanisms and a
specific timetable for the completion of such recommendations.</text>
</subparagraph><subparagraph id="H008C25A01E6341DD9E1279A30234D59F"><enum>(B)</enum><header>Additional
member</header><text>In addition to the members of the Joint Board required
under section 410(c), 1 member of such Joint Board shall be a State-appointed
utility consumer advocate nominated by a national organization of State utility
consumer advocates.</text>
</subparagraph><subparagraph id="H08804231272B4849AC77C1F34E7BD96B"><enum>(C)</enum><header>Deadline for
Joint Board</header><text>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 <short-title>Universal
Service Reform Act of 2010</short-title>.</text>
</subparagraph></paragraph><paragraph id="HA11BBE17BC004E2481AA0ECD01902EC0"><enum>(2)</enum><header>Commission
action</header>
<subparagraph id="H8E7F9D6394B0429D8EA60CEE919577E3"><enum>(A)</enum><header>Deadline for
Commission</header><text>The Commission shall initiate a proceeding to consider
the recommendations from the Joint Board required by
<internal-xref idref="H08804231272B4849AC77C1F34E7BD96B" legis-path="(a)(1)(C)">paragraph (1)(C)</internal-xref> and shall complete such
proceeding within 18 months after the date of enactment of the
<short-title>Universal Service Reform Act of
2010</short-title>.</text>
</subparagraph><subparagraph id="HE3A2D52A58744C259FE1A803068E177A"><enum>(B)</enum><header>Requirement</header><text>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>
</subparagraph></paragraph></subsection><subsection id="HC29E1F2018CF4C51975948DE181937E5"><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="HB60F0778B3F84AF29C059C3588AE95E2"><enum>(1)</enum><header>Quality and
rates</header><text>Quality services should be available at just, reasonable,
and affordable rates.</text>
</paragraph><paragraph id="H3765065AA65F45B09CB928F65FF84A5D"><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="HC67E86959CF74F09A2BE857925FF9686"><enum>(3)</enum><header>Access in rural,
insular, or 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, or 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.</text>
</paragraph><paragraph commented="no" id="H2B91713AE3B74EF18547626EAEA82745"><enum>(4)</enum><header>Comparable
treatment of communications service providers</header>
<subparagraph commented="no" id="H5915951131EF44C897539817FB0ABE89"><enum>(A)</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>
</subparagraph><subparagraph commented="no" id="H88C92B8D90C342A5BD965E052BDEDC12"><enum>(B)</enum><header>Competitive
neutrality</header><text>Federal and State mechanisms to preserve and advance
universal service should be competitively neutral such that those mechanisms
neither unfairly advantage nor disadvantage one communications service provider
over another and neither unfairly favor nor disfavor one technology over
another.</text>
</subparagraph></paragraph><paragraph id="H9C4217EE3FED473EBAA09964D216037D"><enum>(5)</enum><header>Explicit,
specific, and predictable support mechanisms</header><text>There should be
explicit, specific, predictable, and sufficient Federal and State mechanisms to
preserve and advance universal service.</text>
</paragraph><paragraph id="HEB36B6483BC844268D17BD12B74A9CD7"><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="HF1B5880FA1CE4D669A56A1D772C80C88"><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="H26A4F575765640A687F5DAAA614E0B52"><enum>(c)</enum><header>Definition</header>
<paragraph id="HBFFE0A84B13D479ABA3E8BD723F1659D"><enum>(1)</enum><header>In
general</header><text display-inline="yes-display-inline">Universal service
includes the services defined on the day before the date of enactment of the
<short-title>Universal Service Reform Act of
2010</short-title> as universal services, as modified by the Commission as
necessary to implement the provisions of such Act, high-speed broadband
service, 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.</text>
</paragraph><paragraph id="H0AD20B0E089A4CC1A3558E520744A7B3"><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 not less than once every 5 years.</text>
</paragraph><paragraph id="H313B2E2AA9A34958B082984983CCF991"><enum>(3)</enum><header>Considerations</header><text>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="H97AAE0B3715347EB8ADD5B7E03CCBB0C"><enum>(A)</enum><text>are essential to
education, public health, or public safety;</text>
</subparagraph><subparagraph id="H444B1C4E57C744A9839ACE2C672C68A7"><enum>(B)</enum><text>have, through the
operation of market choices by customers, been subscribed to by a substantial
majority of residential customers;</text>
</subparagraph><subparagraph id="H5988B110EAAB49FF87D91914B7CA24BB"><enum>(C)</enum><text>are being deployed
in public telecommunications networks by communications service providers;
and</text>
</subparagraph><subparagraph id="H9C129E98F4744E449D6B17504AED3E3E"><enum>(D)</enum><text>are consistent
with the public interest, convenience, and necessity.</text>
</subparagraph></paragraph><paragraph id="H3361CE28CD534F1AB388243C93B683E6"><enum>(4)</enum><header>Special
services</header><text>In addition to the services included in the definition
of universal service under
<internal-xref idref="HBFFE0A84B13D479ABA3E8BD723F1659D" 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="HBDEC0434261149EABBE81D04334A5247"><enum>(5)</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><after-quoted-block>.</after-quoted-block></quoted-block>
</section><section id="HBE8C99E76B104549A274D9DBC731DC2A"><enum>102.</enum><header>Universal
Service Support Contributions</header>
<subsection id="H67925584A19B4AC79F1B45F5BD5541A1"><enum>(a)</enum><header>In
general</header><text display-inline="yes-display-inline">Section 254(d) of the
Communications Act of 1934 (47 U.S.C. 254(d)) is amended to read as
follows:</text>
<quoted-block display-inline="no-display-inline" id="HCD5F7D97C66948B2A2C649DE927BB10C" style="OLC">
<subsection id="HF3527C1A3C204946A3283EB7263E7691"><enum>(d)</enum><header>Universal
service support contributions</header>
<paragraph id="H7DB7BFB94A2145E9B3EEA967EE971A66"><enum>(1)</enum><header>Calculating
universal service support contributions</header>
<subparagraph id="HE94A5D6778BC42708BAD6EC80495A0D2"><enum>(A)</enum><header>In
general</header>
<clause id="H7D4EC4C2EF824AF09F88C653093601CC"><enum>(i)</enum><header>Equitable</header><text display-inline="yes-display-inline">To preserve and advance universal service
in accordance with the principles in subsection (b), the Commission shall
assess contributions to universal service support mechanisms from
communications service providers in a manner that is equitable, competitively
neutral, nondiscriminatory, and ensures that communications service providers
are subject to similar obligations.</text>
</clause><clause id="H1F7B98D98D604B25A7A1070B2B731CC0"><enum>(ii)</enum><header>Methodology</header><text>The
Commission may employ any methodology to assess such contributions, including a
methodology based on—</text>
<subclause id="H4FF9EAC76EEF4B16B279E5574821A97C"><enum>(I)</enum><text display-inline="yes-display-inline">revenues derived from the provision of
intrastate, interstate, and foreign telecommunications services and information
services by communications service providers;</text>
</subclause><subclause id="HB03611B0DC944E9AA571BF93F7CEB75F"><enum>(II)</enum><text display-inline="yes-display-inline">working telephone numbers used by
communications service providers; or</text>
</subclause><subclause id="H5FDC23DBDAEE4BD88C9F263C42914F24"><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>
</subclause></clause></subparagraph><subparagraph id="HDBF8AAC9920041329B184C42C4DB4F83"><enum>(B)</enum><header>Use of more than
one methodology</header><text>If no one methodology designated under
<internal-xref idref="H1F7B98D98D604B25A7A1070B2B731CC0" legis-path="(d)(1)(A)(ii)">subparagraph (A)(ii)</internal-xref> effectuates the
principles described in this Act, the Commission may employ a combination of
any such methodologies.</text>
</subparagraph><subparagraph id="H36EAAE272B424A1BA4FDD073C1B84367"><enum>(C)</enum><header>Low volume
exception</header><text>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.</text>
</subparagraph><subparagraph id="H63A5F738F09346DE9D73AAD6BE26C05B"><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 amount of telecommunications services and information
services provided by 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><subparagraph id="H6D2CF3584BA6408AB4E4DD7E50352780"><enum>(E)</enum><header>Group plan
exception</header><text display-inline="yes-display-inline">If the Commission
uses a methodology under
<internal-xref idref="H1F7B98D98D604B25A7A1070B2B731CC0" legis-path="(d)(1)(A)(ii)">subparagraph (A)(ii)</internal-xref> 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.</text>
</subparagraph><subparagraph commented="no" id="H969D20AB4EDE4B2BABFF31583F59DDD7"><enum>(F)</enum><header>Discretionary
authority</header><text>If the Commission determines that it is in the public
interest, any provider of a telecommunications service or an information
service may be required to contribute to the preservation and advancement of
universal service.</text>
</subparagraph></paragraph><paragraph id="H2F1ED7791A7C44B9BB223AD56D8EED12"><enum>(2)</enum><header>Reports</header>
<subparagraph id="HA9788F5FF4ED4B368852A9AB78D03891"><enum>(A)</enum><header>In
general</header><text>The Commission shall establish annual reporting
requirements for all entities contributing to universal service support
mechanisms or receiving universal service support.</text>
</subparagraph><subparagraph id="HE3D0CA1BC3BD43C7AAFDEAB22E5DA88D"><enum>(B)</enum><header>Neutral</header><text>The
reporting requirements shall not impose unnecessary burdens and shall be
neutral with respect to technology and provider.</text>
</subparagraph><subparagraph id="H9C91B00E40894C73B267C9AA79FA63C2"><enum>(C)</enum><header>Review</header><text>The
Commission shall periodically review the reporting requirements to ensure that
such requirements provide adequate information to ensure that universal service
support is being used for the provision, maintenance, and upgrading of the
facilities for which such support is intended.</text>
</subparagraph></paragraph><paragraph id="H2B14D739DB684212966B288D6488226D"><enum>(3)</enum><header>Universal
service support contribution limits</header><text display-inline="yes-display-inline">In repurposing universal service support to
ensure that all people in the United States have access to voice service and
high-speed broadband service, the Commission shall not unreasonably increase
the contribution burden on consumers.</text>
</paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="HC4DBA9B4CD804FF29CD5043B445070E8"><enum>(b)</enum><header>Study of
contribution methodologies</header>
<paragraph id="H6B99413236694A8E80186E7C1495BE96"><enum>(1)</enum><header>In
general</header><text>Not later than 270 days after the date of enactment of
this Act, the Federal Communications Commission shall complete a study,
including a cost-benefit analysis, of using a system based on working telephone
numbers or revenues for calculating contributions by communications service
providers to universal service support mechanisms.</text>
</paragraph><paragraph id="H2C10F31920754852BFCBE3D19F28F6D1"><enum>(2)</enum><header>Report</header><text>Not
later than 1 year after the date of enactment of this Act, the Federal
Communications Commission shall transmit to the Committee on Energy and
Commerce of the House of Representatives and the Committee on Commerce,
Science, and Transportation of the Senate a report on the study conducted under
<internal-xref idref="H6B99413236694A8E80186E7C1495BE96" legis-path="102.(b)(1)">paragraph (1)</internal-xref>.</text>
</paragraph></subsection></section><section id="HB84BD620F3174B04BB847A8A4E1E2806"><enum>103.</enum><header>Universal
Service Support Distribution</header><text display-inline="no-display-inline">Section 254(e) of the Communications Act of
1934 (47 U.S.C. 254(e)) is amended to read as follows:</text>
<quoted-block display-inline="no-display-inline" id="HBBCF7F56F96148198A22C9083F9DDE81" style="OLC">
<subsection id="HBBA19A8C79B34C7E928D2A74E80CA167"><enum>(e)</enum><header>Distribution and
use of universal service support</header>
<paragraph id="HE0A9E4776B9F4445803D03DEC330D41A"><enum>(1)</enum><header>In
general</header>
<subparagraph id="H467BD2B5AF204EC39FC63EB462F5E22D"><enum>(A)</enum><header>Eligibility</header><text>Only
a communications service provider designated as an eligible communications
service provider under section 214(e) shall be eligible to receive specific
Federal universal service support.</text>
</subparagraph><subparagraph id="H47C61CDBFBBB4D448335DFCAF179090D"><enum>(B)</enum><header>Use
restriction</header><text>An eligible communications service provider 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.</text>
</subparagraph><subparagraph id="H327D01482BD74957A44F9CF8D29FE91D"><enum>(C)</enum><header>Explicit and
sufficient</header><text>Any such support shall be explicit and sufficient to
achieve the purposes of this section.</text>
</subparagraph></paragraph><paragraph id="H066F977508DD4998882C308C13A52A42"><enum>(2)</enum><header>Use of high-cost
support</header><text>The use of high-cost support for all rural, insular, or
high cost areas—</text>
<subparagraph id="H6C75F51A3E3C48CAA4B6A941D5FADA15"><enum>(A)</enum><text>shall be expanded
to include high-speed broadband service and any other service that is
determined to be a universal service by the Commission under subsection (c);
and</text>
</subparagraph><subparagraph commented="no" id="H537500224EDA4DED9D63D57E1C776324"><enum>(B)</enum><text>shall be available
to eligible communications service providers designated under section 214(e),
but, until such time as the Commission implements the new cost model required
by paragraph (3), an eligible communications service provider that is also an
incumbent local exchange carrier may elect to have the Commission calculate the
amount of high-cost support payable to such provider pursuant to part 54 of
title 47, Code of Federal Regulations, as in effect on the date of enactment of
the <short-title>Universal Service Reform Act of
2010</short-title>.</text>
</subparagraph></paragraph><paragraph id="H9D94F24DDA9F4BF1952BCEA7463EB28A"><enum>(3)</enum><header>Calculating
high-cost support for eligible communications service providers providing
service in rural, insular, or high cost areas</header>
<subparagraph id="HB35B7F8F1EC049D7B56AF9BB854E91F3"><enum>(A)</enum><header>Calculating
high-cost support</header>
<clause id="HF1D7B4AE37044772BD58080B11D40225"><enum>(i)</enum><header>Development of
cost model</header><text display-inline="yes-display-inline">Within 2 years
after the date of enactment of the <short-title>Universal
Service Reform Act of 2010</short-title>, the Commission shall develop a new
cost model for the provision of high-cost support to eligible communications
service providers to provide universal service in rural, insular, and high cost
areas, taking into account the cost to eligible communications service
providers of providing voice service and high-speed broadband service.</text>
</clause><clause id="H6DF8757D1E7F4278BFCFAC7B7ADCFE7E"><enum>(ii)</enum><header>Inclusive</header><text>The
new cost model shall determine the cost of providing voice service and
high-speed broadband service both on the basis of wire centers and study
areas.</text>
</clause><clause id="HBFCD0CF7DE3A405984A1B4A67CAC465C"><enum>(iii)</enum><header>Data rate
requirements</header><text>The Commission shall require eligible communications
service providers to meet the minimum data rate requirements established
pursuant to subsection (q) no earlier than 3 years after support is initially
disbursed pursuant to the new cost model.</text>
</clause><clause commented="no" id="HF27CBAF82C70434DA18F194EFC3CFF91"><enum>(iv)</enum><header>Maximization of
access</header><text>In developing the new cost model, the Commission shall
ensure that the new cost model results in the maximum number of households that
do not have access to high-speed broadband service as of the date of enactment
of the <short-title>Universal Service Reform Act of
2010</short-title> obtaining such access as quickly as possible.</text>
</clause><clause commented="no" id="H837790BB2D664C8DB3E1F86C83A09798"><enum>(v)</enum><header>Rate of return
regulation</header><text display-inline="yes-display-inline">In developing the
new cost model, the Commission shall develop and implement a mechanism that
maintains rate-of-return regulation for the distribution of high-cost support
to an eligible communications service provider subject to rate-of-return
regulation as of the date of enactment of the <short-title>Universal Service Reform Act of 2010</short-title>.</text>
</clause></subparagraph><subparagraph id="H33ACA33A633547239392053744360965"><enum>(B)</enum><header>Consideration</header><text display-inline="yes-display-inline">In determining the appropriate level of
high-cost support for eligible communications service providers, the Commission
may consider the net revenues derived by such providers from the provision of
any services, including telecommunications service, high-speed broadband
service, and multi-channel video programming service that are offered in a
service area over infrastructures receiving high-cost support.</text>
</subparagraph><subparagraph id="HD92A905D596849C1B5DA44BD20700BEF"><enum>(C)</enum><header>Model for
eligible communications service providers other than rural LECs</header><text display-inline="yes-display-inline">The Commission shall require all eligible
communications service providers other than rural local exchange carriers to
use the wire center results of the new cost model within 120 days after the
Commission completes the revisions required by subparagraph (A).</text>
</subparagraph><subparagraph id="H2EB9D42D6DC44A65B91EEE73D8FD46DA"><enum>(D)</enum><header>Rural
LECs</header>
<clause id="H851E3BF98C174CD492D3CD7E222A687F"><enum>(i)</enum><header>In
general</header><text display-inline="yes-display-inline">Except as provided in
clause (ii), the Commission shall require all rural local exchange carriers to
use the study area results of the new cost model within 120 days after the
Commission completes the revisions required by subparagraph (A).</text>
</clause><clause id="HC2BC7A82E1044E9E8F1BBD7D14F3A74B"><enum>(ii)</enum><header>Exception</header>
<subclause id="H4883D577D37B44FCA430E9554BFA06B5"><enum>(I)</enum><header>Election</header><text>Within
120 days after the Commission completes the revisions required by subparagraph
(A), any rural local exchange carrier may make a one-time permanent election to
have the Commission calculate the amount of high-cost support payable to such
provider based on the wire center results of the new cost model instead of the
study area results of the new cost model.</text>
</subclause><subclause id="H260462D50E184F1F880A11B9B23179D4"><enum>(II)</enum><header>Review</header><text>The
Commission shall review and approve the transition to the wire center results
of the new cost model for any such provider within 120 days after receiving
notice of such election.</text>
</subclause></clause></subparagraph><subparagraph id="HB748C697C9A446AFBCCB3E4D9EB97668"><enum>(E)</enum><header>Limitation on
high-cost support</header><text>High-cost support provided to an incumbent
local exchange carrier in accordance with the new cost model shall be in lieu
of any Federal high-cost support mechanisms to which the carrier was entitled
on the day before the date on which the Commission implements the new cost
model under subparagraph (A)(i).</text>
</subparagraph><subparagraph commented="no" id="H07C89E67B9A248BCA1AF47F2DEB9FA07"><enum>(F)</enum><header>Process for
reduction of support for ILECs</header>
<clause commented="no" id="HBC9722BB67A34B04BED1F23437C04D13"><enum>(i)</enum><header>In
general</header>
<subclause id="HA9BB0BAD2EAC486E9C9E9AAED6521E06"><enum>(I)</enum><header>Requirement</header><text display-inline="yes-display-inline">Within 1 year after the Commission
completes the new cost model required by subparagraph (A), the Commission shall
develop and implement a recurring mechanism for reducing or eliminating the
high-cost support provided to an incumbent local exchange carrier in the
competitive portions of the incumbent local exchange carrier’s service areas
and shall reduce or eliminate high-cost support in such areas.</text>
</subclause><subclause id="H3815B23ED4CD4D47A0C68D70536BBCB8"><enum>(II)</enum><header>Investment
costs</header><text>When an incumbent local exchange carrier has invested to
fulfill the requirements of subparagraphs (A) through (E) of section 214(e)(1)
in the portion of a service area that is subsequently found to be competitive,
the Commission may, in recalculating the amount of per-line high-cost support
provided to such carrier for the non-competitive portions of such service area,
consider an appropriate amortization schedule for costs incurred to satisfy the
buildout requirements in the areas that were previously determined pursuant to
subclause (III) not to be competitive.</text>
</subclause><subclause id="H8A6ACF56727547BFA55F7BE4406AF720"><enum>(III)</enum><header>Definition</header><text display-inline="yes-display-inline">For purposes of this subparagraph, in a
service area (as defined in section 214) in which the Commission determines
that at least 75 percent of the households can purchase wireline voice service
and wired high-speed broadband service from an unsupported, facilities-based,
non-incumbent provider, a competitive portion of a service area shall be that
portion of a service area where households can purchase wireline voice service
and wired high-speed broadband service from such provider.</text>
</subclause></clause><clause commented="no" id="H9F8C75AC10D84117B2885F1C6FD733C4"><enum>(ii)</enum><header>Recalculation</header>
<subclause commented="no" id="H89B4FDBA35124E8AAA074BC28C5AF7A4"><enum>(I)</enum><header>In
general</header><text display-inline="yes-display-inline">Such mechanism shall
also include a methodology for recalculating, in a service area in which the
Commission has determined that there is a competitive portion, the amount of
per-line high-cost support provided to an eligible communications service
provider for the non-competitive portions of such service area to ensure
comparable rates for supported services in both the competitive and
non-competitive portions of the service area.</text>
</subclause><subclause id="H032960D2ABF44CB98AD8DD775C4AF30B"><enum>(II)</enum><header>Considerations</header><text display-inline="yes-display-inline">In developing such methodology, the
Commission may consider the net revenues derived by such providers from the
provision of any services, including telecommunications service, high-speed
broadband service, and multi-channel video programming service that are offered
in a service area over infrastructures receiving high-cost support, except that
the total amount of high-cost support the incumbent local exchange carrier
receives for the entire service area after applying such methodology shall be
no greater than the total amount of high-cost support the incumbent local
exchange carrier received with respect to the service area on the day before
such methodology was applied.</text>
</subclause></clause><clause commented="no" id="H53ED2F31CA7D4C0E807ECDE5108EEEA3"><enum>(iii)</enum><header>Requirements</header><text>The
Commission shall also ensure that each unsupported, facilities-based
non-incumbent provider in the competitive portion of each service area that
such non-incumbent provider is authorized to serve and that is determined by
the Commission to be competitive shall—</text>
<subclause commented="no" id="H2259BA3D900248AF900E33EC245A6640"><enum>(I)</enum><text>provide basic
voice service of standard quality and high-speed broadband service to any
requesting residential customer in such area and be able to provide such
service upon request, except that such provider may impose, subject to rules
adopted by the Commission—</text>
<item commented="no" id="H94DD82657E1542098584F3EC1B3459DB"><enum>(aa)</enum><text>reasonable
requirements for creditworthiness, such as requiring a security deposit;
and</text>
</item><item commented="no" id="H054F3D0BD0E84BC5801D90A559F1FD88"><enum>(bb)</enum><text>a just and
reasonable line extension charge to provide service to any such customer whose
premises are located beyond a standard distance from the provider’s
infrastructure;</text>
</item></subclause><subclause commented="no" id="H15ABCCF307AF4D369DB6586F35F3A87F"><enum>(II)</enum><text>provide
residential customers with the option to subscribe to basic voice service on a
stand-alone basis without any term commitment nor any penalty for early
termination of the subscription;</text>
</subclause><subclause commented="no" id="HAD895F045B38409A814F84F943C39A2C"><enum>(III)</enum><text>provide toll
limitation (as defined in section 54.400(d) of title 47, Code of Federal
Regulations, as of the date of enactment of the
<short-title>Universal Service Reform Act of
2010</short-title>) if the provider offers basic voice service that does not
include unlimited local and domestic interexchange calling for a flat monthly
rate;</text>
</subclause><subclause commented="no" id="HA328B18F741844A8B4FC2383B1711D20"><enum>(IV)</enum><text>offer access to
telecommunications relay services in accordance with Commission requirements;
and</text>
</subclause><subclause commented="no" id="H8536338A103841328DFD5533FF38B11A"><enum>(V)</enum><text>comply with
Commission requirements regarding—</text>
<item commented="no" id="HB5943477AD5E43DEA10EC9A684782E78"><enum>(aa)</enum><text>appropriate
notice and approval before discontinuing service;</text>
</item><item commented="no" id="HD532571295F24123A254885A697DD008"><enum>(bb)</enum><text>emergency
preparedness and network outages; and</text>
</item><item commented="no" id="H95F0C35119DB48DEBD630F9740B17377"><enum>(cc)</enum><text>the provision of
911 and E911 service.</text>
</item></subclause></clause><clause id="H7DA1566273F747A7A2131644D6B04CA8"><enum>(iv)</enum><header>Limitation</header><text display-inline="yes-display-inline">A State may not impose or enforce any
carrier-of-last-resort requirements on any unsupported, facilities-based
non-incumbent provider in a service area that the Commission has determined is
competitive.</text>
</clause></subparagraph><subparagraph id="H6FB0DC0B8BC04203B4B5522B5AE36E2E"><enum>(G)</enum><header>Tribal
lands</header>
<clause id="HB6572ACBA17544699220D64BA01FF91B"><enum>(i)</enum><header>In
general</header><text>Notwithstanding any other provision of this paragraph,
the Commission shall not reduce high-cost support for tribal lands under
section 54.400(e) of title 47, Code of Federal Regulations, unless the
Commission makes an affirmative finding that such reductions are in the public
interest.</text>
</clause><clause id="HDD56009A097D46E89A5101331AFBC493"><enum>(ii)</enum><header>Requirements
for finding</header><text display-inline="yes-display-inline">In making a
finding under clause (i), the Commission shall consider whether residents of
such tribal lands 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, consistent with subsection (b)(3).</text>
</clause></subparagraph><subparagraph commented="no" id="HEB6D881FB0D546FE9E25D6F0DD9FFA3D"><enum>(H)</enum><header>Hold
harmless</header>
<clause commented="no" id="H3866D7D3154846C0BAC239121C6A7D39"><enum>(i)</enum><header>In
general</header><text>The Commission shall ensure that, for 1 year after the
Commission implements the new cost model under subparagraph (A)(i), no
incumbent local exchange carrier receives less high-cost support in a service
area than the incumbent local exchange carrier was receiving in high-cost
support in such area on the day before the Commission implements such new cost
model.</text>
</clause><clause commented="no" id="H8E01230FC3014299ADA18F91C1029800"><enum>(ii)</enum><header>Determination</header><text display-inline="yes-display-inline">The Commission shall determine the
difference between the amount an incumbent local exchange carrier was receiving
in high-cost support on the day before the Commission implements such new cost
model and the amount that such incumbent local exchange carrier would receive
after the Commission implements such new cost model and shall, beginning in the
fifth quarter that begins after the Commission implements such new cost model,
reduce the amount of such difference in equal increments over a 5-year period
such that the amount of the difference has been reduced to zero at the end of
such
period.</text>
</clause></subparagraph></paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</section><section id="H5C32D012EC5942E89B2FEABA144092C5"><enum>104.</enum><header>Eligible
recipients of universal service support</header>
<subsection id="H2ECBEE5DE5BF4BC8B299FDE014E5044C"><enum>(a)</enum><header>Amendment</header><text display-inline="yes-display-inline">Section 214(e) of the Communications Act of
1934 (47 U.S.C. 214(e)) is amended—</text>
<paragraph id="HF1F7BE91928949CEAC7945D4FE657319"><enum>(1)</enum><text>in paragraph
(1)—</text>
<subparagraph id="HD6C1A7D430CC4CD882A6E49F5202F0E8"><enum>(A)</enum><text display-inline="yes-display-inline">by striking <quote><header-in-text level="paragraph" style="OLC">Eligible Telecommunications
Carriers.</header-in-text>—A common carrier</quote> and all that follows
through <quote>paragraph (2), (3), or (6)</quote> and inserting the following:
<quote><header-in-text level="paragraph" style="OLC">Eligible Communications
Service Provider.</header-in-text>—A communications service provider designated
as an eligible communications service provider under paragraph (2), (3), (6),
or (8)</quote>;</text>
</subparagraph><subparagraph id="H6BE7F403BD7944F69693767B334849AE"><enum>(B)</enum><text>by striking
<quote>throughout the service area for which</quote> and inserting
<quote>throughout the portions of a service area that the Commission has not
determined are competitive, where the eligible communications service provider
accepts support, and for which</quote>;</text>
</subparagraph><subparagraph commented="no" id="HEEAA43FFE25D48D986E91C8CD765660C"><enum>(C)</enum><text>in subparagraph
(A),</text>
<clause commented="no" id="HC26C2465A9014C8D999178DE5DAB4AD0"><enum>(i)</enum><text>by striking
<quote>services that are</quote> and inserting <quote>services, except for
high-speed broadband service, that are</quote>; and</text>
</clause><clause commented="no" id="H67BB4590650F4254A08E0322CEDBE664"><enum>(ii)</enum><text>by striking
<quote>; and</quote> and inserting the following: <quote>and adhere to the
State carrier-of-last-resort requirements that are imposed on incumbent local
exchange carriers serving such service area;</quote>;</text>
</clause></subparagraph><subparagraph id="H2AAF7BEC96264CE998B836ED1AC08B76"><enum>(D)</enum><text>in subparagraph
(B), by striking the period at the end and inserting the following:
<quote>throughout the service area and advertise the availability of life-line
and link-up services in a manner reasonably designed to reach those likely to
qualify for those services;</quote>; and</text>
</subparagraph><subparagraph id="HD7F1DBC4EF2E41E9A2A82727C3C9A7AF"><enum>(E)</enum><text>by adding at the
end the following:</text>
<quoted-block display-inline="no-display-inline" id="H63B313D0AFAD45288481240C0E0C88B4" style="OLC">
<subparagraph id="HA62D58C4FD35432AAFA78A1B0F31F31F"><enum>(C)</enum><text>demonstrate the
ability to remain functional in emergency situations;</text>
</subparagraph><subparagraph id="HF3B2F765F7CD411DBDE67E1A1EBC59A3"><enum>(D)</enum><text>comply with
applicable State and Federal consumer protection and service quality standards;
and</text>
</subparagraph><subparagraph id="HF13123B4E5F84DB8A15C0FF5225948B3"><enum>(E)</enum><text>notwithstanding
subparagraph (A), in an area where an eligible communications service provider
elects to receive high-cost support and high-speed broadband service is not
otherwise available, meet the basic requirements for the deployment of
high-speed broadband service and provide high-speed broadband service either
itself or through resale of another provider’s services, including, for
purposes of this subparagraph only, the resale of satellite broadband service,
except that the Commission shall establish a process in which—</text>
<clause id="H149733D8D9C14F37A100970944FA44EF"><enum>(i)</enum><text display-inline="yes-display-inline">a determination can be made to waive the
requirements of this subparagraph for 3 years upon a communications service
provider’s application covering all or part of such communications service
provider’s service area 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 demonstrating that the cost per line of deploying and providing
high-speed broadband service to unserved high cost portions of its service area
is at least 3 times the national average cost per line of providing high-speed
broadband service or demonstrating that there is insufficient satellite
capacity to meet the requirements to provide high-speed broadband service,
subject to the renewal provisions set forth in clause (ii);</text>
</clause><clause id="H8B5C66C49CE5406FAEF9E908FE3154A5"><enum>(ii)</enum><text>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 or the cost per line of deploying and providing high-speed
broadband service to unserved high cost portions of its service area remains at
least 3 times the national average cost per line of providing high-speed
broadband service or there continues to be insufficient satellite capacity to
meet the requirements to provide high-speed broadband service; and</text>
</clause><clause id="H0AB65A7FB5214F869FA836C515FDBD0F"><enum>(iii)</enum><text>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 after the date
of submission to the Commission shall be deemed
granted.</text>
</clause></subparagraph><after-quoted-block>;</after-quoted-block></quoted-block>
</subparagraph></paragraph><paragraph id="H5ACE45EE57014AD8AE545D8331F4DBE8"><enum>(2)</enum><text>by amending
paragraphs (2) through (4) to read as follows:</text>
<quoted-block display-inline="no-display-inline" id="H12CE8A6E1C8F4FE1A077B4633AC78366" style="OLC">
<paragraph id="H2975FF55C02D434F831E31AC3F48848E"><enum>(2)</enum><header>Eligibility
criteria</header>
<subparagraph id="HB4DA62D37DCD45E5A03CA4C6C01ACEAB"><enum>(A)</enum><header>In
general</header><text>In addition to the criteria specified in
<internal-xref idref="H49A0F9A3F3B84C3F9D33B39D237BDCC7" legis-path="(1)">paragraph (1)</internal-xref>, the Commission shall establish
such additional eligibility criteria for the receipt of universal service
support by eligible communications service providers as it deems necessary and
in the public interest. The criteria established in
<internal-xref idref="H49A0F9A3F3B84C3F9D33B39D237BDCC7" 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="HAB0DD37389DE49CFB9CC465B2A712A25" legis-path="(3)">paragraph (3)</internal-xref>.</text>
</subparagraph><subparagraph id="H95066F23E65B4B62BA7785A3403DFD9E"><enum>(B)</enum><header>Additional
designation</header><text>The Commission may establish a life-line service
provider designation that is not subject to the eligibility requirements in
paragraph (1) or the eligibility criteria established in subparagraph
(A).</text>
</subparagraph></paragraph><paragraph id="HAB0DD37389DE49CFB9CC465B2A712A25"><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="H49A0F9A3F3B84C3F9D33B39D237BDCC7" legis-path="(1)">paragraphs (1)</internal-xref> and
<internal-xref idref="H2975FF55C02D434F831E31AC3F48848E" legis-path="(2)">(2)</internal-xref>.</text>
</paragraph><paragraph id="H6AE1E3D53F1C4A5AB9DA56C225C8579A"><enum>(4)</enum><header>Grandfather
provision</header>
<subparagraph id="HAFA465D46C8A4B92BC1A1CC3C1DCF10F"><enum>(A)</enum><header>Eligibility
Requirements</header><text display-inline="yes-display-inline">A communications
service provider who was a recipient of high-cost support in any service area
prior to the date of enactment of the <short-title>Universal Service Reform Act of 2010</short-title> shall,
for those areas where high-cost support provided by section 254(e)(3) is
available and the communications service provider elects to receive such
support, meet the eligibility requirements for an eligible communications
service provider—</text>
<clause id="HFC55462289504C3F94EBEBCCD3A48441"><enum>(i)</enum><text>as
described in
<internal-xref idref="H49A0F9A3F3B84C3F9D33B39D237BDCC7" legis-path="(1)">paragraphs (1)(A)</internal-xref> through (D), within 1 year
after the date of enactment of the <short-title>Universal
Service Reform Act of 2010</short-title>; and</text>
</clause><clause id="H55D173CEE668473886F2F99DF7A8EFEF"><enum>(ii)</enum><text>as described in
<internal-xref idref="H49A0F9A3F3B84C3F9D33B39D237BDCC7" legis-path="(1)(F)">paragraph (1)(E)</internal-xref>, within 5 years after such
date of enactment.</text>
</clause></subparagraph><subparagraph id="H252D9FC593A5408A9D78664F90783A5F"><enum>(B)</enum><header>Failure to meet
requirements</header><text display-inline="yes-display-inline">Failure of such
recipient to maintain and meet the eligibility requirements within the period
required by subparagraph (A) shall require the automatic termination of
specific Federal universal service support to such recipient, and such
recipient shall simultaneously be relieved of its obligation under this
section, except as described in
<internal-xref idref="H25CD8411AB5D49C6A364C06C3112C178" legis-path="(4)(E)">subparagraph (E)</internal-xref>.</text>
</subparagraph><subparagraph id="HA711853E2AB542FAB996CAB489C94AFE"><enum>(C)</enum><header>Partial
compliance</header>
<clause id="HF73439934F8643E2BE94AED1B8732103"><enum>(i)</enum><header>In
general</header><text>Such recipient is permitted to maintain and meet the
eligibility requirements in part of its service territory and is eligible to
continue to receive specific Federal universal service support in those service
areas within its service territory in which it meets the eligibility
requirements.</text>
</clause><clause id="HF9099747894E4B4C9CF5EB79653BBFEC"><enum>(ii)</enum><header>Definition</header><text display-inline="yes-display-inline">For the purposes of clause (i), the term
<quote>service territory</quote> means all of the service areas in which the
communications service provider is offering, or is designated by the Commission
or by a State commission to offer, services that are supported by Federal
universal service support mechanisms.</text>
</clause></subparagraph><subparagraph id="H331A018626864480996054CA0264C873"><enum>(D)</enum><header>Rule of
construction</header><text>Nothing in this paragraph shall be construed to
prohibit such recipient from obtaining a waiver under
<internal-xref idref="H49A0F9A3F3B84C3F9D33B39D237BDCC7" legis-path="(1)(E)">paragraph (1)(E)</internal-xref>.</text>
</subparagraph><subparagraph id="H25CD8411AB5D49C6A364C06C3112C178"><enum>(E)</enum><header>Life-line and
Link-Up exception</header><text display-inline="yes-display-inline">A recipient
of universal service support in any service area prior to the date of enactment
of the <short-title>Universal Service Reform Act of
2010</short-title> that relinquishes its eligible telecommunications carrier or
eligible communications service provider designation shall continue to offer
and receive support for providing life-line and link-up service to its
subscribers throughout its service area unless another provider is designated
as an eligible communications service provider or a life-line service provider
in all or part of that service
area.</text>
</subparagraph></paragraph><after-quoted-block>;</after-quoted-block></quoted-block>
</paragraph><paragraph id="H60E1D3D2A44C47A8A62E7D345C3C555C"><enum>(3)</enum><text display-inline="yes-display-inline">in paragraph (6)—</text>
<subparagraph id="H8CC0CB952A0F4A92A848CC084E3E0E14"><enum>(A)</enum><text>in the heading, by
striking <quote><header-in-text level="paragraph" style="OLC">Common
carriers</header-in-text></quote> and inserting <quote><header-in-text level="paragraph" style="OLC">Communications service
providers</header-in-text></quote>;</text>
</subparagraph><subparagraph id="HEE29342711934AB4ABF73DDD5AA68D5D"><enum>(B)</enum><text display-inline="yes-display-inline">by striking <quote>common carrier</quote>
each place it appears and inserting <quote>communications service
provider</quote>;</text>
</subparagraph><subparagraph id="H042A3BA8390545CDBEE7098FA288241F"><enum>(C)</enum><text>by striking
<quote>eligible telecommunications carrier</quote> each place it appears and
inserting <quote>eligible communications service provider</quote>; and</text>
</subparagraph><subparagraph id="HC10B6490F33C4E21968E2B363228AD8E"><enum>(D)</enum><text>by striking
<quote>carrier</quote> and inserting <quote>provider</quote>; and</text>
</subparagraph></paragraph><paragraph id="H2D18A2623282425895B782A10A054DD0"><enum>(4)</enum><text>by adding at the
end the following:</text>
<quoted-block display-inline="no-display-inline" id="HEE272E122751445D879E0C5C999DA92B" style="OLC">
<paragraph display-inline="no-display-inline" id="H324783E5EAEA4E56B0380E867C3D4D10"><enum>(7)</enum><header>Amount of
specific Federal universal service support available to mobile wireless
communications service providers</header>
<subparagraph id="H33C38477D03F435F8CF3254AA2F8173A"><enum>(A)</enum><header>In
general</header><text display-inline="yes-display-inline">The Commission shall
establish the amount of high-cost support to be distributed to all mobile
wireless communications service providers designated as eligible communications
service providers under this subsection through a competitive bidding process
established by the Commission.</text>
</subparagraph><subparagraph id="HA2D5D584C64243B69F41635AF40A24BB"><enum>(B)</enum><header>Limitation</header><text>The
amount of such high-cost support available to be distributed annually to mobile
wireless communications service providers shall not exceed the amount of
high-cost support received by all mobile wireless communications service
providers for rural, insular, or high cost areas in the last full calendar year
immediately preceding the date of enactment of the
<short-title>Universal Service Reform Act of
2010</short-title>.</text>
</subparagraph></paragraph><paragraph id="H1E4C3A833F5045D2B3B9A1E8E9AFBE28"><enum>(8)</enum><header>Competitive
Bidding</header><text display-inline="yes-display-inline">Within 1 year after
the date of enactment of the <short-title>Universal
Service Reform Act of 2010</short-title>, the Commission shall adopt a
competitive bidding process for mobile wireless communications service
providers to provide service to rural, insular, or high cost areas that
incorporates the following:</text>
<subparagraph id="H4FCC4FC4244D4652B3E0EFAE96E59F39"><enum>(A)</enum><text display-inline="yes-display-inline">To participate in the competitive bidding
process, a mobile wireless communications service provider shall—</text>
<clause id="HFBF0DFED36C747A5BA39A2C758896849"><enum>(i)</enum><text>be
designated as an eligible communications service provider under this subsection
or commit to immediately seeking such designation under this subsection if the
Commission selects its bid; and</text>
</clause><clause id="HDB6937C19BAD4B38AEBF86F052567E45"><enum>(ii)</enum><text>establish that it
is legally, technically, financially, and otherwise qualified to serve a rural,
insular, or high cost area.</text>
</clause></subparagraph><subparagraph id="H01C5F680FC3944A183B8A0A1C416DC33"><enum>(B)</enum><text>The Commission
shall determine whether a mobile wireless communications service provider is
legally, technically, financially, and otherwise qualified to serve a rural,
insular, or high cost area in approximately the same manner as the Commission
uses to qualify participants for the Commission’s wireless spectrum
auctions.</text>
</subparagraph><subparagraph id="HB1BBF19E9EB8436F9D7EA1FD1707CD5A"><enum>(C)</enum><text>The Commission
shall seek competitive bids to provide mobile wireless communications service
in rural, insular, or high cost areas where there are at least 3 mobile
wireless communications service providers qualified to bid. In rural, insular,
or high cost areas where there are not at least 3 mobile wireless
communications service providers qualified to bid, the Commission shall
continue to provide support at the per-line level in effect as of the day
before the date of enactment of the <short-title>Universal
Service Reform Act of 2010</short-title>, subject to adjustment over time
pursuant to the interim cap on support to competitive eligible
telecommunications carriers adopted by the Commission prior to such date of
enactment.</text>
</subparagraph><subparagraph id="H0C519E5C1B91413E9F3313E131FBC99A"><enum>(D)</enum><text display-inline="yes-display-inline">Prior to soliciting competitive bids, the
Commission shall issue a request for proposals identifying the area a winning
bidder must serve and the minimum requirements for serving such area. In
determining the appropriate service area for competitive bidding, the
Commission shall take into account existing service areas for providing mobile
wireless communications service, including the areas where mobile wireless
communications service providers are licensed to provide service.</text>
</subparagraph><subparagraph id="H60857F1966B3422B9C079950538F2D12"><enum>(E)</enum><text display-inline="yes-display-inline">No more than 2 mobile wireless
communications service providers shall be selected by the Commission to receive
high-cost support in each service area based on the Commission’s evaluation of
the competitive bids received for each service area. In evaluating competitive
bids received for each service area, the amount of the bid and the minimum
broadband speeds proposed by each mobile wireless communications service
provider shall be primary factors in selecting a winning bid, but the
Commission may take into account other factors, including timing of service
buildout.</text>
</subparagraph><subparagraph id="H6012A11E8C934D8983BA66B255DC0D5B"><enum>(F)</enum><text>When awarding bids
to mobile wireless communications service providers, the Commission shall
prioritize funding as follows:</text>
<clause id="HF2DF005D041B4FD3A3133AE45DA86923"><enum>(i)</enum><text>First, to service
areas where no mobile wireless communications service provider offers voice
service.</text>
</clause><clause id="H2E40B0F171B54DFE85E0BF15665FE04C"><enum>(ii)</enum><text display-inline="yes-display-inline">Second, to service areas where no mobile
wireless communications service provider offers high-speed broadband
service.</text>
</clause><clause id="H8CEA82839E544242B4033ED8D0F85352"><enum>(iii)</enum><text>Third, to all
other service areas.</text>
</clause></subparagraph><subparagraph id="HE2F7B93BEEC64E7E94C75D60DBB9722B"><enum>(G)</enum><text display-inline="yes-display-inline">If the Commission selects a bid from a
mobile wireless communications service provider that has not been designated as
an eligible communications service provider in that service area, the mobile
wireless communications service provider shall apply for such designation
within 1 month after the date the Commission selects its bid. The Commission or
applicable State commission shall act on such application within 6 months after
the date of its receipt.</text>
</subparagraph><subparagraph id="HCAF03C8F0C0E459E90EEEF3ED8DF44FD"><enum>(H)</enum><text display-inline="yes-display-inline">Each mobile wireless communications service
provider selected as a Federal universal service provider for a service area
shall receive high-cost support based on each mobile wireless communications
service provider’s respective bid for a multi-year period, up to 10 years, as
determined by the Commission to be appropriate, after which time the area shall
be rebid.</text>
</subparagraph><subparagraph id="H883C8FCC04BC4F3FA5499D4F3AC593BA"><enum>(I)</enum><text>If high-cost
support is made available to a second mobile wireless communications service
provider in an area that is subject to competitive bidding, the amount of such
support shall be based on that mobile wireless communications service
provider’s bid and shall be no more than the amount of high-cost support
awarded by the Commission to the first mobile wireless communications service
provider in such area.</text>
</subparagraph><subparagraph id="HFE7871CFA9F34FF88A85E37F30FC853B"><enum>(J)</enum><text>Each mobile
wireless communications service provider that is selected to serve each service
area shall execute a service contract with the Commission.</text>
</subparagraph><subparagraph id="H1AE6DC0CB6CC489599EC14954060BF7F"><enum>(K)</enum><text>The Commission
shall provide for a transition to competitive bidding from the current system
of high-cost support for wireless providers that shall last no longer than 3
years after the date of enactment of the <short-title>Universal Service Reform Act of 2010</short-title>. As of
the date the Commission implements competitive bidding, provider-specific
Federal universal service adjustments to wireless support imposed by the
Commission in effect as of the date of enactment of the
<short-title>Universal Service Reform Act of
2010</short-title> shall also be
superseded.</text>
</subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection><subsection id="H9F77E43FE81C4516BBEE2909FDF9EDC0"><enum>(b)</enum><header>Definitions</header><text>Paragraph
(5) of section 214(e) is amended to read as follows:</text>
<quoted-block id="HB30D081D8FFF4E3FB1C2BEEAF8138A99" style="OLC">
<paragraph id="HEF9FDF6CB7144992ACDDDDE7036AC6F1"><enum>(5)</enum><header>Service area
defined</header><text display-inline="yes-display-inline">As used in this
subsection, the term <term>service area</term> means a targeted geographic area
determined by the Commission as requiring universal service support and used by
the Commission for the purpose of determining universal service obligations and
support mechanisms for eligible communications service providers except that an
eligible communications service provider’s service area shall not include
geographic areas that the provider is not authorized to serve. In the case of
an area served by a rural local exchange carrier, such term means such
carrier’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 local exchange
carrier.</text>
</paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="HFB7C08469ACD47E3B7BFEEB844B7D6C2"><enum>(c)</enum><header>Payphone
service</header><text>Nothing in this Act or in the amendments made by this Act
shall limit the authority of the Joint Board established under section 254 of
the Communications Act of 1934 (47 U.S.C. 254) to recommend or of the Federal
Communications Commission to define payphone service as a service supported by
Federal universal service support mechanisms under such section as such
authority existed on the day before the date of enactment of this Act.</text>
</subsection></section><section id="H65F37BEB397647E6A02915781A9E942C"><enum>105.</enum><header>Removal of
impediments to sufficient support mechanisms</header><text display-inline="no-display-inline">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:</text>
<quoted-block id="H37DDBC5A3B4D49D7945B177BF9839B12" style="OLC">
<subsection id="H827BDA06CCE94D128EEEF6B86BA593BC"><enum>(m)</enum><header>Removal of
limitations on universal 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 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 <short-title>Universal Service Reform Act of
2010</short-title>.</text>
</subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</section><section id="H954ADE17A8844A3899B042313E937EAD"><enum>106.</enum><header>Scope of
support</header><text display-inline="no-display-inline">Section 254 of the
Communications Act of 1934 (47 U.S.C. 254) is further amended by adding after
subsection (m), as added by
<internal-xref idref="H65F37BEB397647E6A02915781A9E942C" legis-path="105.">section 105</internal-xref> of this Act, the following new
subsection:</text>
<quoted-block display-inline="no-display-inline" id="H0E03D998076348F68920DD8544DA1D07" style="OLC">
<subsection id="HE9189FE1D65D45FF817A5C6229129450"><enum>(n)</enum><header>Scope of
support</header><text display-inline="yes-display-inline">The Commission, in
implementing the requirements of this section (as amended by the
<short-title>Universal Service Reform Act of
2010</short-title> with respect to the distribution and use of high-cost
support), shall not limit the distribution and use of high-cost support to a
single connection or primary line, and all residential and business lines
served by an eligible communications service provider shall be eligible for
high-cost
support.</text>
</subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</section><section id="H8650A9DA8E9241AEAD60D359CBEE0BB1"><enum>107.</enum><header>Application of
Antideficiency Act; investment of contributions</header><text display-inline="no-display-inline">Section 254 of the Communications Act of
1934 (47 U.S.C. 254) is further amended by adding after subsection (n), as
added by
<internal-xref idref="H954ADE17A8844A3899B042313E937EAD" legis-path="106.">section 106</internal-xref> of this Act, the following new
subsections:</text>
<quoted-block id="H6F0EBC17C425458892F6A53692DECA1B" style="OLC">
<subsection id="HE8EA6497A82B4172AFD64DF61BADBCFE"><enum>(o)</enum><header>Proper
accounting of universal service contributions</header>
<paragraph id="H4E1EB9035A0C4430B2BEE1D24ED03EE9"><enum>(1)</enum><header>From all
budgets</header><text>Notwithstanding any other provision of law, the receipts
and disbursements of universal service contributions under this section shall
not be counted as new budget authority, outlays, receipts, deficit, or surplus
for purposes of—</text>
<subparagraph id="H4D95EC9B94DE4823BFFA9DDA412C9D21"><enum>(A)</enum><text>the budget of the
United States Government as submitted by the President;</text>
</subparagraph><subparagraph id="H8AA16A4988024432B2831E819A726193"><enum>(B)</enum><text>the Congressional
budget;</text>
</subparagraph><subparagraph id="H2700BC059C254951AEABE8C9FBC30681"><enum>(C)</enum><text>the Balanced
Budget and Emergency Deficit Control Act of 1985; or</text>
</subparagraph><subparagraph id="H06BDE6B8515C45B7B9FBE3F3F1B56332"><enum>(D)</enum><text>any other law
requiring budget sequesters.</text>
</subparagraph></paragraph><paragraph id="HA6AF1FC3938746FB96770973044DD896"><enum>(2)</enum><header>Additional
exemptions</header><text>Section 1341, subchapter II of chapter 15, and
sections 3302, 3321, 3322, and 3325 of title 31, United States Code, shall not
apply to—</text>
<subparagraph id="HCAC073C51B404D29BA11B281365E1EB5"><enum>(A)</enum><text>the collection and
receipt of universal service contributions, including the interest earned on
such contributions; or</text>
</subparagraph><subparagraph id="HBEE5E6FB15554B4C85E6C8C65A878477"><enum>(B)</enum><text>disbursements or
other obligations authorized by the Commission under this section.</text>
</subparagraph></paragraph></subsection><subsection id="H14BDB49243A4432F9C143876DA141364"><enum>(p)</enum><header>Investment of
Universal Service Support Contributions</header><text>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 support
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.</text>
</subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</section><section id="H64C3FF5650BD4CD1885DBD05E0EC24E2"><enum>108.</enum><header>State
authority</header><text display-inline="no-display-inline">Section 254(f) of
the Communications Act of 1934 (47 U.S.C. 254(f)) is amended to read as
follows:</text>
<quoted-block id="H79B41D77FD1C4C65B71E12B2675371F7" style="OLC">
<subsection id="H4C5AA85CF48344BBADFEA4E6F49397EF"><enum>(f)</enum><header>State
authority</header>
<paragraph id="HD33BCC542AB04108A69812BB197DD207"><enum>(1)</enum><header>In
general</header><text>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 billing address or service address assigned
to that State for—</text>
<subparagraph id="H39B7596F99414F8E9BB1C92983FBBD17"><enum>(A)</enum><text>revenues derived
from the provision of intrastate telecommunications services by communications
service providers;</text>
</subparagraph><subparagraph id="H1C453002AE9141FEAC4886992CB64D92"><enum>(B)</enum><text>working telephone
numbers used by communications service providers; or</text>
</subparagraph><subparagraph id="HA8FFFE47190E43F4B80B365417EE428D"><enum>(C)</enum><text>any other current
or successor identifier protocols or connections to the network used by
communications service providers.</text>
</subparagraph></paragraph><paragraph id="H18EBED12494242F0B21BAD85E180D526"><enum>(2)</enum><header>Disregard of
interstate component</header><text>With respect to a combination of services
that includes interstate services, the Commission shall determine how States
may calculate the proportion of intrastate services for which they are
permitted to make an assessment.</text>
</paragraph><paragraph id="HBB7F1153F5054821B7ADCB5DA6C30DD2"><enum>(3)</enum><header>Guidelines</header><text>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.</text>
</paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</section><section id="H9E4DE4A2E5F9495AAC5783657D2614F6"><enum>109.</enum><header>Minimum data
rate requirements</header><text display-inline="no-display-inline">Section 254
of the Communications Act of 1934 (47 U.S.C. 254) is further amended by adding
after subsection (p), as added by
<internal-xref idref="H8650A9DA8E9241AEAD60D359CBEE0BB1" legis-path="107.">section 107</internal-xref> of this Act, the following new
subsection:</text>
<quoted-block display-inline="no-display-inline" id="H3EDE022FA9984F96A575F2F0A776EC91" style="OLC">
<subsection id="H3DBB1CCBB24F449CB1CB5A117022B18F"><enum>(q)</enum><header>Minimum data
rate requirements</header>
<paragraph id="H49C214D292294AB9945C9B5EE9BCEDE8"><enum>(1)</enum><header>In
general</header><text display-inline="yes-display-inline">Within 90 days after
the date of enactment of the <short-title>Universal
Service Reform Act of 2010</short-title>, the Commission shall adopt a minimum
data rate requirement for high-speed broadband service.</text>
</paragraph><paragraph id="HE89C646B4DFE43738DBC962D40D2D9D9"><enum>(2)</enum><header>Commission speed
adjustment requirements</header><text display-inline="yes-display-inline">Beginning in the sixth year after the date
of enactment of the <short-title>Universal Service Reform
Act of 2010</short-title> and periodically thereafter, the Commission shall
review the minimum data rate requirement in
<internal-xref idref="H49C214D292294AB9945C9B5EE9BCEDE8" legis-path="(q)(1)">paragraph (1)</internal-xref> and shall make adjustments,
if necessary, as the advancement and deployment of technology allows eligible
communications service providers to provide broadband service at increased
minimum data rates to end users in an economically rational
manner.</text>
</paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</section><enum>II</enum><header>Accountability</header>
<section id="H7D12B95475DA48A39C2D681039F363BA"><enum>201.</enum><header>Performance
Measures</header><text display-inline="no-display-inline">Within 1 year after
the date of enactment of this Act, the Federal Communications Commission shall
establish and implement outcome-oriented performance goals and measures for
each universal service support program.</text>
</section><section id="HD4777B72F7494973973121B502BE4B2D"><enum>202.</enum><header>Audits</header><text display-inline="no-display-inline">The Federal Communications Commission shall,
within 270 days after the date of enactment of this Act, establish rules
to—</text>
<paragraph id="HA400F3E0F8484F91882AAF426D22BD72"><enum>(1)</enum><text>determine the
appropriate audit methodology for audits of recipients of Federal universal
service support;</text>
</paragraph><paragraph id="H94CD38E6D3704535B38AD0A8F9E7F2AA"><enum>(2)</enum><text>ensure that
universal service support auditors are trained in universal service support
program compliance and audit only in connection with such compliance;</text>
</paragraph><paragraph id="H4797CA8E6EE147CDB23B574F4E6A8B9C"><enum>(3)</enum><text>provide that
auditors may not penalize recipients of universal service support by requesting
and auditing for program compliance records, including copies of invoices for
equipment purchased or maintained with program disbursements, that are older
than records that recipients of universal service support are required to
retain pursuant to the Federal Communications Commission’s rules; and</text>
</paragraph><paragraph id="HD2DE877F217D425985359A398942EAE0"><enum>(4)</enum><text>provide that any
appeal of a finding by the Universal Service Administrative Company or any
successor organization in connection with a program audit is resolved by the
Federal Communications Commission within 180 days after the date of filing of
such appeal.</text>
</paragraph></section><section id="H188FF457D343420B9861243B31936356"><enum>203.</enum><header>Report to
Congress</header><text display-inline="no-display-inline">The Federal
Communications 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, including the availability of such services to schools, libraries,
rural health care providers, and low income consumers. Such report shall
include the outcome-oriented performance goals and measures for each universal
service support program, an analysis of the implementation of such goals and
measures, and an analysis of the progress towards meeting such goals and
measures.</text>
</section><enum>III</enum><header>Intercarrier
Compensation Reform</header>
<section id="HBFACEE0CEBF343DCAA4534EC570C0430"><enum>301.</enum><header>Intercarrier
Compensation Reform</header>
<subsection id="HFC496A6EACCB48E9A06860616D5AEE3C"><enum>(a)</enum><header>Authority</header>
<paragraph id="HF57A9CD8FE1D4CA0BF0FED8CE0CF42CC"><enum>(1)</enum><header>In
general</header><text>Notwithstanding any other provision of law, the Federal
Communications Commission shall have authority to reform intercarrier
compensation systems for both interstate and intrastate traffic.</text>
</paragraph><paragraph id="H28622B4B6327455EA70D4B7F8E9B1740"><enum>(2)</enum><header>Deadline</header><text>The
Federal Communications Commission shall complete an initial intercarrier
compensation reform proceeding within 1 year after the date of enactment of
this Act.</text>
</paragraph><paragraph id="HD00A6558A1E64754B6B1145826BA360C"><enum>(3)</enum><header>Private
arrange<editorial></editorial>ments</header><text>Entities that are required to
participate in intercarrier compensation shall be permitted to enter into
arrangements by mutual agreement for the exchange of traffic without regard to
the rules established by the Federal Communications Commission pursuant to this
subsection.</text>
</paragraph></subsection><subsection commented="no" id="HAC45FEEBCA5B4EACB4FE1F57E8D1F623"><enum>(b)</enum><header>Intercarrier
compensation recovery mechanism</header><text>If, at any time after the date of
enactment of this Act, the Federal Communications Commission mandates that
intercarrier compensation revenues be recovered through an alternate revenue
recovery mechanism, the Federal Communications Commission may establish such
mechanism to be included as high-cost support.</text>
</subsection></section><section id="H2C7494F0F2AA41D8BE51D4214FB7E212"><enum>302.</enum><header>Network traffic
identification accountability standards</header><text display-inline="no-display-inline">Part II of title II of the Communications
Act of 1934 is amended by adding at the end the following:</text>
<quoted-block display-inline="no-display-inline" id="HB62327260C6C4976B4EB22303411871A" style="OLC">
<section id="HEDA87949606447BF8E7D3B4BA302A8B8"><enum>262.</enum><header>Network traffic
identification accountability standards</header>
<subsection id="H44F113207B9F4F04854E47701E941531"><enum>(a)</enum><header>Network traffic
identification standards</header><text>A communications service provider shall
ensure, to the degree technically possible and in accordance with industry
standards, 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 the telephone
number 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 transmit
without altering the call signaling information it receives from another
communications service provider.</text>
</subsection><subsection id="HB80EB26C27784FABA38B9022F6087436"><enum>(b)</enum><header>Network traffic
identification rulemaking</header><text>The Commission shall establish rules
for traffic identification consistent with this section within 180 days after
the date of enactment of the <short-title>Universal
Service Reform Act of 2010</short-title>.</text>
</subsection><subsection id="H2217B978BBF246DC8818E4DC4DC01504"><enum>(c)</enum><header>Network traffic
identification enforcement</header><text>The Commission shall adopt and enforce
penalties, fines, and sanctions under this
section.</text>
</subsection></section><after-quoted-block>.</after-quoted-block></quoted-block>
</section><section id="H9D471E01BAF7496BB6D08FD850846F07"><enum>303.</enum><header>Traffic
pumping</header>
<subsection id="HE0D72B8E1697486E9F5101EEC335925F"><enum>(a)</enum><header>Traffic
stimulation charge</header><text display-inline="yes-display-inline">The term
“traffic stimulation charge” means any switched access or reciprocal
compensation charge assessed by a local exchange carrier upon a connecting
carrier for delivery of telecommunications during which a free or below cost
service or product is provided by an entity with which the local exchange
carrier has a business, financial, or contractual arrangement relating directly
or indirectly to switched access or reciprocal compensation revenues from the
offering of such service or product.</text>
</subsection><subsection id="H50BB61F1F90B4A22B7E2EA0C8F6135A2"><enum>(b)</enum><header>Prohibition</header><text>The
assessment of a traffic stimulation charge constitutes an unreasonable practice
under section 201(b) of the Communications Act of 1934 (47 U.S.C. 201(b)), and
local exchange carriers are prohibited from assessing traffic stimulation
charges.</text>
</subsection><subsection id="H70FBA8C4FB0D41E28002C8281543F887"><enum>(c)</enum><header>No presumption
of validity</header><text>Nothing in this Act shall be construed as indicating
that traffic stimulation charges assessed prior to the effective date of this
Act were just, reasonable, or in accordance with the Communications Act of 1934
or any other statute, regulation, tariff, or policy.</text>
</subsection></section><enum>IV</enum><header>Rural Health Care
Support Mechanisms</header>
<section id="H489BBB6DB1104736A1239D51AD22368A"><enum>401.</enum><header>Rural Health
Care Support Mechanisms</header>
<subsection id="H521F3F4BF8CC4F96A3C5E799BF741784"><enum>(a)</enum><header>Amendment</header><text>Subparagraph
(A) of section 254(h)(1) of the Communications Act of 1934 (47 U.S.C.
254(h)(1)(A)) is amended to read as follows:</text>
<quoted-block display-inline="no-display-inline" id="H2250D06B7B294B66A9932898910B8D12" style="OLC">
<subparagraph id="HFEFF2F19B1AC435BBB99691C430121BE"><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
2010</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 not-for-profit 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>
</subsection><subsection id="H9E3C0EFF015B4EE789C7B1C3F4CBF30E"><enum>(b)</enum><header>Definition of
health care provider</header><text>Subparagraph (B) of section 254(h)(7) of
such Act (47 U.S.C. 254(h)(7)(B)) is amended to read as follows:</text>
<quoted-block display-inline="no-display-inline" id="H1EDC1902438E4521999D993F39E98151" style="OLC">
<subparagraph id="HD8EEBD99951B4BE2B43D8242C156B0C5"><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="HFEF9C4C2E0E14B36A95BEAF29B7B49AF"><enum>(i)</enum><text>post-secondary
educational institutions offering health care instruction, teaching hospitals,
and medical schools;</text>
</clause><clause id="HD8A1AD6B4E2A4AEFB008DC43AEC2257E"><enum>(ii)</enum><text>community health
centers or health centers providing health care to migrants;</text>
</clause><clause id="H970FC59C6273403791228E7AAA4D2D57"><enum>(iii)</enum><text>local health
departments or agencies;</text>
</clause><clause id="H213DE9CD880F4DE3A18517ED2CCCD9E4"><enum>(iv)</enum><text>community mental
health centers;</text>
</clause><clause id="H172D8A71992E48A290C960F46085D79E"><enum>(v)</enum><text>not-for-profit
hospitals;</text>
</clause><clause id="H314B26F62564426299CC80ACCCCA5352"><enum>(vi)</enum><text>critical access
hospitals;</text>
</clause><clause id="HD673758BEF5C44458AB54B7F80DF2317"><enum>(vii)</enum><text>rural hospitals
with emergency rooms;</text>
</clause><clause id="HB6E83A8310B148CEACCB0510D054925F"><enum>(viii)</enum><text>rural health
clinics;</text>
</clause><clause id="HCACFB2EA4A8742D78072A3401FE77199"><enum>(ix)</enum><text>not-for-profit
nursing facilities or not-for-profit skilled nursing facilities;</text>
</clause><clause id="H91C521B1D22C49898E85E5DC159CDA73"><enum>(x)</enum><text>hospice
providers;</text>
</clause><clause id="HDBE473713F8C4F1FBBE6D1557243D25B"><enum>(xi)</enum><text>emergency medical
services facilities;</text>
</clause><clause id="H8167AFE403B64FDF85C2DC889C84D7D8"><enum>(xii)</enum><text>rural dialysis
facilities;</text>
</clause><clause id="H7060E7E2C8F8455589C3BEA644066EE5"><enum>(xiii)</enum><text>elementary,
secondary, and post-secondary school health clinics; and</text>
</clause><clause id="H486462515D054111AE7D0E40938D87B5"><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>
</subsection><subsection id="H94585DA70C494936A30395CF900E0799"><enum>(c)</enum><header>Definition of
rural for health care support</header><text>Section 254(h)(7) of such Act (47
U.S.C. 254(h)(7)) is further amended by adding at the end the following new
subparagraph:</text>
<quoted-block display-inline="no-display-inline" id="H861373C54094437CB85C205341D83852" style="OLC">
<subparagraph id="H2154C59727F143FE91AF619859C72FDC"><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 2010</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="H47DC8D7B9F0F4CF8BD702046E62AA6F7"><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="H3C0A8EBFAE4D455DA1AE17F39B7126E0"><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="H7DE488894310487AB0459783BAF5D372"><enum>(iii)</enum><text>any area with a
population density of fewer than 250 persons per square mile; or</text>
</clause><clause id="H5A6B3E5CA45E4F52AD76CB653953AFC0"><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>
</subsection><subsection id="H4448155C11D044D2B09BBC496FA08156"><enum>(d)</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 (47 U.S.C. 254), as amended by this section—</text>
<paragraph id="H63069A565D4F41BEA4A66257F8DB632A"><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 or means of distribution of or,
with respect to schools and libraries, eligibility to receive universal service
support for the schools, libraries, rural health care, life-line, link-up, and
toll limitation programs; and</text>
</paragraph><paragraph id="HC6B1613A8B1746AC96F19D3AE7E4A50E"><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>