I 112th CONGRESS 1st Session H. R. 3118 IN THE HOUSE OF REPRESENTATIVES October 6, 2011 Mr. Farenthold (for himself, Mr. Flores, Mr. Coffman of Colorado, Mr. Kingston, Mr. Paul, Mr. Kelly, Mr. Nunnelee, Mr. Harris, and Mr. Mulvaney) introduced the following bill; which was referred to the Committee on Energy and Commerce A BILL To direct the Federal Communications Commission to revisit the universal service support program under section 254 of the Communications Act of 1934 to reduce waste, fraud, and abuse, and for other purposes.

1.

Universal Service Program

(a)

Forbearance authority rescinded

(1)

In general

As of the date of enactment of this Act, the Federal Communications Commission may not forbear from the requirements of section 214(e)(1) of the Communications Act of 1934 (47 U.S.C. 214(e)(1)) with respect to the designation of an eligible telecommunications carrier. (2)

Transition period

On the 120th day after the date of enactment of this Act, the Federal Communications Commission shall suspend the designation of a telecommunications carrier as an eligible telecommunications carrier if such designation was received through forbearance of the requirements of such section. (3)

Amendment

Section 214(e) of the Communications Act of 1934 (47 U.S.C. 214(e)) is amended by adding at the end the following: (7)

Clarification

The charges referred to in paragraph (1)(B) for such services shall be more than zero. . (b)

Contribution

(1)

Amount

The amount collected to support universal service under section 254 of the Communications Act of 1934 (47 U.S.C. 254) each year shall be the same amount that was collected for fiscal year 2011. (2)

Savings reduction

Of this amount, $500,000,000 shall be transferred each year to the General Fund of the Treasury and shall not be available for obligation or expenditure. (c)

Reform Lifeline and Link-Up programs

Not later than 120 days after the date of enactment of this Act, the Federal Communications Commission shall complete a rulemaking to implement the following reforms to the programs providing universal service support to low income consumers, commonly known as the Lifeline and Link-up programs, under such section 254: (1)To ensure that the programs are only supporting service for 1 telephone connection per household (regardless of whether that telephone is provided through a landline or a commercial mobile service), the Commission shall establish a database and shall require an eligible telecommunications carrier under section 214(e) of such Act to— (A)include participation information in the database on all households that qualify and are receiving service from such carrier through the Lifeline or Link-Up programs; and (B)use the database to determine if a Lifeline or Link-Up customer is already being served by another provider before establishing new service or continuing service. (2)The Commission shall update the form used by an eligible telecommunications carrier to make a reimbursement claim from the universal service support mechanisms under section 254 of such Act to provide information sufficient to identify and prevent duplicate reimbursements. (3)The Commission shall require all eligible telecommunications carriers providing commercial mobile services to implement a 60-day inactivity policy. (4)The Commission shall implement guidance for the Universal Service Administrative Company on how to recover improper payments made to eligible telecommunications carriers.