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[Congressional Bills 117th Congress]
[From the U.S. Government Publishing Office]
[S. 2427 Reported in Senate (RS)]

<DOC>

                                                       Calendar No. 594
117th CONGRESS
  2d Session
                                S. 2427

To require the Federal Communications Commission to conduct a study and 
 submit to Congress a report examining the feasibility of funding the 
     Universal Service Fund through contributions supplied by edge 
                   providers, and for other purposes.

_______________________________________________________________________

                   IN THE SENATE OF THE UNITED STATES

                             July 21, 2021

  Mr. Wicker (for himself, Mr. Young, Mrs. Capito, Mr. Barrasso, Mr. 
Crapo, Mr. Lujan, and Mr. Peters) introduced the following bill; which 
was read twice and referred to the Committee on Commerce, Science, and 
                             Transportation

                            December 7, 2022

              Reported by Ms. Cantwell, with an amendment
 [Strike out all after the enacting clause and insert the part printed 
                               in italic]

_______________________________________________________________________

                                 A BILL

 
To require the Federal Communications Commission to conduct a study and 
 submit to Congress a report examining the feasibility of funding the 
     Universal Service Fund through contributions supplied by edge 
                   providers, and for other purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

<DELETED>SECTION 1. SHORT TITLE.</DELETED>

<DELETED>    This Act may be cited as the ``Funding Affordable Internet 
with Reliable Contributions Act'' or the ``FAIR Contributions 
Act''.</DELETED>

<DELETED>SEC. 2. STUDY AND REPORT ON UNIVERSAL SERVICE FUND 
              CONTRIBUTIONS.</DELETED>

<DELETED>    (a) Definitions.--In this section:</DELETED>
        <DELETED>    (1) Appropriate congressional committees.--The 
        term ``appropriate congressional committees'' means--</DELETED>
                <DELETED>    (A) the Committee on Commerce, Science, 
                and Transportation of the Senate; and</DELETED>
                <DELETED>    (B) the Committee on Energy and Commerce 
                of the House of Representatives.</DELETED>
        <DELETED>    (2) Commission.--The term ``Commission'' means the 
        Federal Communications Commission.</DELETED>
        <DELETED>    (3) Contribution.--The term ``contribution'' means 
        funds provided to the Universal Service Fund under section 
        254(d) of the Communications Act of 1934 (47 U.S.C. 
        254(d)).</DELETED>
        <DELETED>    (4) Edge provider.--The term ``edge provider'' 
        means a provider of online content or services, such as a 
        search engine, a social media platform, a streaming service, an 
        app store, a cloud computing service, or an e-commerce 
        platform.</DELETED>
        <DELETED>    (5) Universal service fund.--The term ``Universal 
        Service Fund'' means the fund established pursuant to section 
        254 of the Communications Act of 1934 (47 U.S.C. 254) and 
        administered by the Universal Service Administrative Company to 
        support service to high-cost areas, schools and libraries, 
        rural health care facilities, and the Lifeline program of the 
        Commission.</DELETED>
<DELETED>    (b) Study and Report.--Not later than 180 days after the 
date of enactment of this Act, and after issuing a notice of inquiry 
seeking public comment on the issues described in this subsection, the 
Commission shall conduct a study and submit to the appropriate 
congressional committees a report examining the feasibility of funding 
the Universal Service Fund through contributions supplied by edge 
providers, which shall include the consideration of comments on, and 
the findings of the Commission with respect to--</DELETED>
        <DELETED>    (1) the class of firms and services on which 
        contributions could be assessed, including an inquiry into the 
        specific sources of revenue potentially subject to 
        contributions, such as digital advertising revenue and user 
        fees;</DELETED>
        <DELETED>    (2) the equity issues of the current contributions 
        system, including the cost burden on consumers who 
        traditionally purchase legacy telecommunications 
        services;</DELETED>
        <DELETED>    (3) equity issues of alternative contributions 
        systems that would create new funding sources for the Universal 
        Service Fund such as Federal appropriations or assessments on 
        edge providers;</DELETED>
        <DELETED>    (4) whether a particular contributions system 
        results in progressive or regressive fees;</DELETED>
        <DELETED>    (5) the size of firms subject to contributions 
        requirements;</DELETED>
        <DELETED>    (6) the broadband requirements, such as bandwidth 
        and latency, of a particular online service;</DELETED>
        <DELETED>    (7) other Federal, State, and local taxes and fees 
        that edge providers may already pay;</DELETED>
        <DELETED>    (8) practical issues concerning the calculation of 
        contributions, including which revenues should be subject to 
        contributions, whether a flat or progressive rate is most 
        appropriate, and the logistics of collection;</DELETED>
        <DELETED>    (9) the effect such a change would have on 
        telecommunications bills of consumers, including low-income, 
        elderly, and Tribal consumers;</DELETED>
        <DELETED>    (10) the effect such a change would have on the 
        sustainability of the Universal Service Fund, and how to ensure 
        that Universal Service Fund disbursements are consistent and 
        predictable over time;</DELETED>
        <DELETED>    (11) the statutory authority the Commission would 
        require to enact such a change and how such a change would 
        interact with existing Federal and State law; and</DELETED>
        <DELETED>    (12) the continued necessity of the Universal 
        Service Fund once advanced telecommunications capability is 
        available to all people in the United States.</DELETED>

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Funding Affordable Internet with 
Reliable Contributions Act'' or the ``FAIR Contributions Act''.

SEC. 2. STUDY AND REPORT ON UNIVERSAL SERVICE FUND CONTRIBUTIONS.

    (a) Definitions.--In this section:
            (1) Appropriate congressional committees.--The term 
        ``appropriate congressional committees'' means--
                    (A) the Committee on Commerce, Science, and 
                Transportation of the Senate; and
                    (B) the Committee on Energy and Commerce of the 
                House of Representatives.
            (2) Broadband provider.--The term ``broadband provider'' 
        means a provider of broadband internet access service, as 
        defined in section 8.1(b) of title 47, Code of Federal 
        Regulations, or any successor regulation.
            (3) Commission.--The term ``Commission'' means the Federal 
        Communications Commission.
            (4) Contribution.--The term ``contribution'' means funds 
        contributed to the Universal Service Fund under section 254(d) 
        of the Communications Act of 1934 (47 U.S.C. 254(d)).
            (5) Edge provider.--The term ``edge provider'' means a 
        provider of online content or services, including, but not 
        limited to, a search engine, a social media platform, a 
        streaming service, an app store, a cloud computing service, an 
        over-the-top messaging service, a video conferencing service, 
        or an e-commerce platform.
            (6) Universal service fund.--The term ``Universal Service 
        Fund'' means the fund--
                    (A) established pursuant to section 254 of the 
                Communications Act of 1934 (47 U.S.C. 254); and
                    (B) administered by the Universal Service 
                Administrative Company or any other administrator 
                designated by the Commission.
    (b) Study and Report.--Not later than 1 year after the date of 
enactment of this Act, and after issuing a notice of inquiry seeking 
public comment on the issues described in this subsection, the 
Commission shall conduct a study and submit to the appropriate 
congressional committees a report examining the feasibility and effects 
of expanding the base of contributors to the Universal Service Fund to 
include contributions supplied by edge providers and broadband 
providers, which shall include the consideration of comments on, and 
the findings of the Commission with respect to--
            (1) the class of firms and services that benefit directly 
        and financially from the programs funded by the Universal 
        Service Fund;
            (2) the size and class of firms and services on which 
        contributions could be assessed, including an inquiry into the 
        specific sources of revenue of edge providers and broadband 
        providers potentially subject to contributions, such as digital 
        advertising revenue and user fees;
            (3) the broadband requirements, such as bandwidth and 
        latency, of particular online services that would be subject to 
        contribution requirements if contributions were assessed on 
        edge providers and broadband providers;
            (4) other Federal, State, and local taxes and fees that 
        edge providers and broadband providers may already pay;
            (5) practical issues concerning the calculation of 
        contributions assessed on edge providers and broadband 
        providers, including which revenues should be subject to 
        contributions, whether a flat or progressive rate or other fee 
        is most appropriate, whether characteristics of service such as 
        bandwidth or latency should affect the calculation of 
        contributions, the logistics of collection, whether a 
        calculation would result in the same revenue source being 
        assessed twice, and the ability to assess contributions on 
        foreign edge providers that provide content and services to 
        consumers in the United States;
            (6) the effect the assessment of contributions on edge 
        providers and broadband providers would have on 
        telecommunications and edge provider costs for consumers, 
        including low-income, elderly, and Tribal consumers;
            (7) the effect the assessment of contributions on edge 
        providers and broadband providers would have on the 
        sustainability of the Universal Service Fund, and whether the 
        assessment would ensure that Universal Service Fund 
        disbursements are consistent and predictable over time;
            (8) the existing statutory authority the Commission has to 
        assess contributions on edge providers and broadband providers, 
        and how any change to such authority would interact with 
        existing Federal and State law;
            (9) the impact of assessing contributions on any other 
        services, including enterprise services, that are subject to 
        the authority of the Commission; and
            (10) the costs to the Commission of implementing and 
        administering a contribution assessment mechanism on broadband 
        providers and edge providers, and the ability of the Commission 
        to enforce such a mechanism.
                                                       Calendar No. 594

117th CONGRESS

  2d Session

                                S. 2427

_______________________________________________________________________

                                 A BILL

To require the Federal Communications Commission to conduct a study and 
 submit to Congress a report examining the feasibility of funding the 
     Universal Service Fund through contributions supplied by edge 
                   providers, and for other purposes.

_______________________________________________________________________

                            December 7, 2022

                       Reported with an amendment
```