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[Congressional Bills 111th Congress]
[From the U.S. Government Publishing Office]
[H.R. 5828 Introduced in House (IH)]

111th CONGRESS
  2d Session
                                H. R. 5828

To reform the universal service provisions of the Communications Act of 
                     1934, and for other purposes.

_______________________________________________________________________

                    IN THE HOUSE OF REPRESENTATIVES

                             July 22, 2010

Mr. Boucher (for himself and Mr. Terry) introduced the following bill; 
       which was referred to the Committee on Energy and Commerce

_______________________________________________________________________

                                 A BILL

 
To reform the universal service provisions of the Communications Act of 
                     1934, and for other purposes.

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

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Universal Service Reform Act of 
2010''.

SEC. 2. DEFINITIONS.

    (a) In General.--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 provider.--The term 
        `communications service provider' means any entity that--
                    ``(A) contributes to or receives universal service 
                support for the most recent calendar quarter ending 
                before the date of enactment of the Universal Service 
                Reform Act of 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) High-cost support.--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) Definition.--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) Internet protocol.--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 service.--The 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 provider.--
        The 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) Rule of Construction.--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.

                   TITLE I--UNIVERSAL SERVICE REFORM

SEC. 101. UNIVERSAL SERVICE REFORM PROCEDURES AND PRINCIPLES.

    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:
    ``(a) Procedures to Reform Universal Service.--
            ``(1) Federal-state joint board on universal service.--
                    ``(A) Proceeding required.--Within 1 month after 
                the date of enactment of the Universal Service Reform 
                Act of 2010, 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 Universal Service 
                Reform Act of 2010), 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.
                    ``(B) Additional member.--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.
                    ``(C) Deadline for joint board.--The Joint Board 
                shall, after notice and opportunity for public comment, 
                make its recommendations to the Commission within 9 
                months after the date of enactment of the Universal 
                Service Reform Act of 2010.
            ``(2) Commission action.--
                    ``(A) Deadline for commission.--The Commission 
                shall initiate a proceeding to consider the 
                recommendations from the Joint Board required by 
                paragraph (1)(C) and shall complete such proceeding 
                within 18 months after the date of enactment of the 
                Universal Service Reform Act of 2010.
                    ``(B) Requirement.--The rules established by such 
                proceeding shall include a definition of the services 
                that are supported by Federal universal service support 
                mechanisms and a specific timetable for implementation.
    ``(b) Universal Service Principles.--The Joint Board and the 
Commission shall base policies for the preservation and advancement of 
universal service on the following principles:
            ``(1) Quality and rates.--Quality services should be 
        available at just, reasonable, and affordable rates.
            ``(2) Access to advanced services.--Access to advanced 
        telecommunications and information services should be provided 
        in all regions of the Nation.
            ``(3) Access in rural, insular, or high cost areas.--
        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.
            ``(4) Comparable treatment of communications service 
        providers.--
                    ``(A) Equitable and nondiscriminatory 
                contributions.--All communications service providers 
                should make equitable and nondiscriminatory 
                contributions to the preservation and advancement of 
                universal service.
                    ``(B) Competitive neutrality.--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.
            ``(5) Explicit, specific, and predictable support 
        mechanisms.--There should be explicit, specific, predictable, 
        and sufficient Federal and State mechanisms to preserve and 
        advance universal service.
            ``(6) Access to advanced telecommunications services for 
        schools, health care, and libraries.--Elementary and secondary 
        schools and classrooms, health care providers, and libraries 
        should have access to advanced telecommunications services as 
        described in subsection (h).
            ``(7) Additional principles.--Such other principles as the 
        Joint Board and the Commission determine are necessary and 
        appropriate for the protection of the public interest, 
        convenience, and necessity and are consistent with this Act.
    ``(c) Definition.--
            ``(1) In general.--Universal service includes the services 
        defined on the day before the date of enactment of the 
        Universal Service Reform Act of 2010 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.
            ``(2) Alterations and modifications.--The Joint Board shall 
        consider whether to recommend to the Commission modifications 
        in the definition of the services that are supported by Federal 
        universal service support mechanisms not less than once every 5 
        years.
            ``(3) Considerations.--The Joint Board in recommending, and 
        the Commission in establishing, the definition of the services 
        that are supported by Federal universal service support 
        mechanisms shall consider the extent to which such services--
                    ``(A) are essential to education, public health, or 
                public safety;
                    ``(B) have, through the operation of market choices 
                by customers, been subscribed to by a substantial 
                majority of residential customers;
                    ``(C) are being deployed in public 
                telecommunications networks by communications service 
                providers; and
                    ``(D) are consistent with the public interest, 
                convenience, and necessity.
            ``(4) Special services.--In addition to the services 
        included in the definition of universal service under paragraph 
        (1), the Commission may designate additional services for such 
        support mechanisms for schools, libraries, and health care 
        providers for the purposes of subsection (h).
            ``(5) High-speed broadband service.--The definition of 
        universal service shall not be construed to exclude eligible 
        communications service providers from using universal service 
        funding for the provision, maintenance, and upgrading of high-
        speed broadband service.''.

SEC. 102. UNIVERSAL SERVICE SUPPORT CONTRIBUTIONS.

    (a) In General.--Section 254(d) of the Communications Act of 1934 
(47 U.S.C. 254(d)) is amended to read as follows:
    ``(d) Universal Service Support Contributions.--
            ``(1) Calculating universal service support 
        contributions.--
                    ``(A) In general.--
                            ``(i) Equitable.--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.
                            ``(ii) Methodology.--The Commission may 
                        employ any methodology to assess such 
                        contributions, including a methodology based 
                        on--
                                    ``(I) revenues derived from the 
                                provision of intrastate, interstate, 
                                and foreign telecommunications services 
                                and information services by 
                                communications service providers;
                                    ``(II) working telephone numbers 
                                used by communications service 
                                providers; or
                                    ``(III) any other current or 
                                successor identifier protocols or 
                                connections to the network used by 
                                communications service providers.
                    ``(B) Use of more than one methodology.--If no one 
                methodology designated under subparagraph (A)(ii) 
                effectuates the principles described in this Act, the 
                Commission may employ a combination of any such 
                methodologies.
                    ``(C) Low volume exception.--The Commission shall 
                not materially increase the contributions of 
                communications service providers whose customers 
                typically make a low volume of calls on a monthly 
                basis.
                    ``(D) De minimis exception.--The Commission may 
                exempt a communications service provider from the 
                requirements of this subsection if the 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.
                    ``(E) Group plan exception.--If the Commission uses 
                a methodology under subparagraph (A)(ii) 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.
                    ``(F) Discretionary authority.--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.
            ``(2) Reports.--
                    ``(A) In general.--The Commission shall establish 
                annual reporting requirements for all entities 
                contributing to universal service support mechanisms or 
                receiving universal service support.
                    ``(B) Neutral.--The reporting requirements shall 
                not impose unnecessary burdens and shall be neutral 
                with respect to technology and provider.
                    ``(C) Review.--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.
            ``(3) Universal service support contribution limits.--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.''.
    (b) Study of Contribution Methodologies.--
            (1) In general.--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.
            (2) Report.--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 paragraph (1).

SEC. 103. UNIVERSAL SERVICE SUPPORT DISTRIBUTION.

    Section 254(e) of the Communications Act of 1934 (47 U.S.C. 254(e)) 
is amended to read as follows:
    ``(e) Distribution and Use of Universal Service Support.--
            ``(1) In general.--
                    ``(A) Eligibility.--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.
                    ``(B) Use restriction.--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.
                    ``(C) Explicit and sufficient.--Any such support 
                shall be explicit and sufficient to achieve the 
                purposes of this section.
            ``(2) Use of high-cost support.--The use of high-cost 
        support for all rural, insular, or high cost areas--
                    ``(A) 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
                    ``(B) 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 Universal Service Reform Act 
                of 2010.
            ``(3) Calculating high-cost support for eligible 
        communications service providers providing service in rural, 
        insular, or high cost areas.--
                    ``(A) Calculating high-cost support.--
                            ``(i) Development of cost model.--Within 2 
                        years after the date of enactment of the 
                        Universal Service Reform Act of 2010, 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.
                            ``(ii) Inclusive.--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.
                            ``(iii) Data rate requirements.--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.
                            ``(iv) Maximization of access.--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 Universal 
                        Service Reform Act of 2010 obtaining such 
                        access as quickly as possible.
                            ``(v) Rate of return regulation.--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 Universal Service 
                        Reform Act of 2010.
                    ``(B) Consideration.--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.
                    ``(C) Model for eligible communications service 
                providers other than rural lecs.--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).
                    ``(D) Rural lecs.--
                            ``(i) In general.--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).
                            ``(ii) Exception.--
                                    ``(I) Election.--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.
                                    ``(II) Review.--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.
                    ``(E) Limitation on high-cost support.--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).
                    ``(F) Process for reduction of support for ilecs.--
                            ``(i) In general.--
                                    ``(I) Requirement.--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.
                                    ``(II) Investment costs.--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.
                                    ``(III) Definition.--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.
                            ``(ii) Recalculation.--
                                    ``(I) In general.--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.
                                    ``(II) Considerations.--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.
                            ``(iii) Requirements.--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--
                                    ``(I) 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--
                                            ``(aa) reasonable 
                                        requirements for 
                                        creditworthiness, such as 
                                        requiring a security deposit; 
                                        and
                                            ``(bb) 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;
                                    ``(II) 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;
                                    ``(III) 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 Universal 
                                Service Reform Act of 2010) if the 
                                provider offers basic voice service 
                                that does not include unlimited local 
                                and domestic interexchange calling for 
                                a flat monthly rate;
                                    ``(IV) offer access to 
                                telecommunications relay services in 
                                accordance with Commission 
                                requirements; and
                                    ``(V) comply with Commission 
                                requirements regarding--
                                            ``(aa) appropriate notice 
                                        and approval before 
                                        discontinuing service;
                                            ``(bb) emergency 
                                        preparedness and network 
                                        outages; and
                                            ``(cc) the provision of 911 
                                        and E911 service.
                            ``(iv) Limitation.--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.
                    ``(G) Tribal lands.--
                            ``(i) In general.--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.
                            ``(ii) Requirements for finding.--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).
                    ``(H) Hold harmless.--
                            ``(i) In general.--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.
                            ``(ii) Determination.--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.''.

SEC. 104. ELIGIBLE RECIPIENTS OF UNIVERSAL SERVICE SUPPORT.

    (a) Amendment.--Section 214(e) of the Communications Act of 1934 
(47 U.S.C. 214(e)) is amended--
            (1) in paragraph (1)--
                    (A) by striking ``Eligible telecommunications 
                carriers.--A common carrier'' and all that follows 
                through ``paragraph (2), (3), or (6)'' and inserting 
                the following: ``Eligible communications service 
                provider.--A communications service provider designated 
                as an eligible communications service provider under 
                paragraph (2), (3), (6), or (8)'';
                    (B) by striking ``throughout the service area for 
                which'' and inserting ``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'';
                    (C) in subparagraph (A),
                            (i) by striking ``services that are'' and 
                        inserting ``services, except for high-speed 
                        broadband service, that are''; and
                            (ii) by striking ``; and'' and inserting 
                        the following: ``and adhere to the State 
                        carrier-of-last-resort requirements that are 
                        imposed on incumbent local exchange carriers 
                        serving such service area;'';
                    (D) in subparagraph (B), by striking the period at 
                the end and inserting the following: ``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;''; and
                    (E) by adding at the end the following:
                    ``(C) demonstrate the ability to remain functional 
                in emergency situations;
                    ``(D) comply with applicable State and Federal 
                consumer protection and service quality standards; and
                    ``(E) 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--
                            ``(i) 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);
                            ``(ii) 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
                            ``(iii) 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.'';
            (2) by amending paragraphs (2) through (4) to read as 
        follows:
            ``(2) Eligibility criteria.--
                    ``(A) In general.--In addition to the criteria 
                specified in paragraph (1), the Commission shall 
                establish such additional eligibility criteria for the 
                receipt of universal service support by eligible 
                communications service providers as it deems necessary 
                and in the public interest. The criteria established in 
                paragraph (1) and the criteria established by the 
                Commission pursuant to this paragraph shall be used by 
                State commissions in determining which providers shall 
                be designated as eligible recipients of universal 
                service support for the purpose of paragraph (3).
                    ``(B) Additional designation.--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).
            ``(3) Designation of eligible recipients.--A State 
        commission shall, upon its own motion or upon request, 
        designate as an eligible recipient of universal service support 
        only those providers meeting the requirements of paragraphs (1) 
        and (2).
            ``(4) Grandfather provision.--
                    ``(A) Eligibility requirements.--A communications 
                service provider who was a recipient of high-cost 
                support in any service area prior to the date of 
                enactment of the Universal Service Reform Act of 2010 
                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--
                            ``(i) as described in paragraphs (1)(A) 
                        through (D), within 1 year after the date of 
                        enactment of the Universal Service Reform Act 
                        of 2010; and
                            ``(ii) as described in paragraph (1)(E), 
                        within 5 years after such date of enactment.
                    ``(B) Failure to meet requirements.--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 subparagraph (E).
                    ``(C) Partial compliance.--
                            ``(i) In general.--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.
                            ``(ii) Definition.--For the purposes of 
                        clause (i), the term `service territory' 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.
                    ``(D) Rule of construction.--Nothing in this 
                paragraph shall be construed to prohibit such recipient 
                from obtaining a waiver under paragraph (1)(E).
                    ``(E) Life-line and link-up exception.--A recipient 
                of universal service support in any service area prior 
                to the date of enactment of the Universal Service 
                Reform Act of 2010 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.'';
            (3) in paragraph (6)--
                    (A) in the heading, by striking ``Common carriers'' 
                and inserting ``Communications service providers'';
                    (B) by striking ``common carrier'' each place it 
                appears and inserting ``communications service 
                provider'';
                    (C) by striking ``eligible telecommunications 
                carrier'' each place it appears and inserting 
                ``eligible communications service provider''; and
                    (D) by striking ``carrier'' and inserting 
                ``provider''; and
            (4) by adding at the end the following:
            ``(7) Amount of specific federal universal service support 
        available to mobile wireless communications service 
        providers.--
                    ``(A) In general.--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.
                    ``(B) Limitation.--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 Universal Service Reform Act of 2010.
            ``(8) Competitive bidding.--Within 1 year after the date of 
        enactment of the Universal Service Reform Act of 2010, 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:
                    ``(A) To participate in the competitive bidding 
                process, a mobile wireless communications service 
                provider shall--
                            ``(i) 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
                            ``(ii) establish that it is legally, 
                        technically, financially, and otherwise 
                        qualified to serve a rural, insular, or high 
                        cost area.
                    ``(B) 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.
                    ``(C) 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 Universal Service Reform 
                Act of 2010, 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.
                    ``(D) 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.
                    ``(E) 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.
                    ``(F) When awarding bids to mobile wireless 
                communications service providers, the Commission shall 
                prioritize funding as follows:
                            ``(i) First, to service areas where no 
                        mobile wireless communications service provider 
                        offers voice service.
                            ``(ii) Second, to service areas where no 
                        mobile wireless communications service provider 
                        offers high-speed broadband service.
                            ``(iii) Third, to all other service areas.
                    ``(G) 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.
                    ``(H) 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.
                    ``(I) 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.
                    ``(J) Each mobile wireless communications service 
                provider that is selected to serve each service area 
                shall execute a service contract with the Commission.
                    ``(K) 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 
                Universal Service Reform Act of 2010. 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 Universal Service 
                Reform Act of 2010 shall also be superseded.''.
    (b) Definitions.--Paragraph (5) of section 214(e) is amended to 
read as follows:
            ``(5) Service area defined.--As used in this subsection, 
        the term `service area' 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 `study 
        area' or the licensed or authorized service area of any other 
        communications service provider serving an area that overlaps 
        with the service area of a rural local exchange carrier.''.
    (c) Payphone Service.--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.

SEC. 105. REMOVAL OF IMPEDIMENTS TO SUFFICIENT SUPPORT MECHANISMS.

    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:
    ``(m) Removal of Limitations on Universal Support Mechanisms.--The 
limitations on universal service support contained in section 54.305 of 
the Commission's regulations (47 CFR 54.305) and the individual caps 
imposed upon carriers contained in section 36.631 of the Commission's 
regulations (47 CFR 36.631) shall cease to be effective on the date of 
enactment of the Universal Service Reform Act of 2010.''.

SEC. 106. SCOPE OF SUPPORT.

    Section 254 of the Communications Act of 1934 (47 U.S.C. 254) is 
further amended by adding after subsection (m), as added by section 105 
of this Act, the following new subsection:
    ``(n) Scope of Support.--The Commission, in implementing the 
requirements of this section (as amended by the Universal Service 
Reform Act of 2010 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.''.

SEC. 107. APPLICATION OF ANTIDEFICIENCY ACT; INVESTMENT OF 
              CONTRIBUTIONS.

    Section 254 of the Communications Act of 1934 (47 U.S.C. 254) is 
further amended by adding after subsection (n), as added by section 106 
of this Act, the following new subsections:
    ``(o) Proper Accounting of Universal Service Contributions.--
            ``(1) From all budgets.--Notwithstanding any other 
        provision of law, the receipts and disbursements of universal 
        service contributions under this section shall not be counted 
        as new budget authority, outlays, receipts, deficit, or surplus 
        for purposes of--
                    ``(A) the budget of the United States Government as 
                submitted by the President;
                    ``(B) the Congressional budget;
                    ``(C) the Balanced Budget and Emergency Deficit 
                Control Act of 1985; or
                    ``(D) any other law requiring budget sequesters.
            ``(2) Additional exemptions.--Section 1341, subchapter II 
        of chapter 15, and sections 3302, 3321, 3322, and 3325 of title 
        31, United States Code, shall not apply to--
                    ``(A) the collection and receipt of universal 
                service contributions, including the interest earned on 
                such contributions; or
                    ``(B) disbursements or other obligations authorized 
                by the Commission under this section.
    ``(p) Investment of Universal Service Support Contributions.--
Notwithstanding any other provision of law, including sections 3302, 
3321, 3322, and 3325 of title 31, United States Code, the cash balance 
of receipts of universal service 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.''.

SEC. 108. STATE AUTHORITY.

    Section 254(f) of the Communications Act of 1934 (47 U.S.C. 254(f)) 
is amended to read as follows:
    ``(f) State Authority.--
            ``(1) In general.--A State may adopt regulations not 
        inconsistent with the Commission's rules to preserve and 
        advance universal service. In adopting those rules, a State may 
        require communications service providers to contribute to 
        universal service on the basis of a billing address or service 
        address assigned to that State for--
                    ``(A) revenues derived from the provision of 
                intrastate telecommunications services by 
                communications service providers;
                    ``(B) working telephone numbers used by 
                communications service providers; or
                    ``(C) any other current or successor identifier 
                protocols or connections to the network used by 
                communications service providers.
            ``(2) Disregard of interstate component.--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.
            ``(3) Guidelines.--Regulations adopted by a State under 
        this subsection shall result in a specific, predictable, and 
        sufficient mechanism to support universal service and shall be 
        competitively and technologically neutral, equitable, and 
        nondiscriminatory.''.

SEC. 109. MINIMUM DATA RATE REQUIREMENTS.

    Section 254 of the Communications Act of 1934 (47 U.S.C. 254) is 
further amended by adding after subsection (p), as added by section 107 
of this Act, the following new subsection:
    ``(q) Minimum Data Rate Requirements.--
            ``(1) In general.--Within 90 days after the date of 
        enactment of the Universal Service Reform Act of 2010, the 
        Commission shall adopt a minimum data rate requirement for 
        high-speed broadband service.
            ``(2) Commission speed adjustment requirements.--Beginning 
        in the sixth year after the date of enactment of the Universal 
        Service Reform Act of 2010 and periodically thereafter, the 
        Commission shall review the minimum data rate requirement in 
        paragraph (1) 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.''.

                        TITLE II--ACCOUNTABILITY

SEC. 201. PERFORMANCE MEASURES.

    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.

SEC. 202. AUDITS.

    The Federal Communications Commission shall, within 270 days after 
the date of enactment of this Act, establish rules to--
            (1) determine the appropriate audit methodology for audits 
        of recipients of Federal universal service support;
            (2) ensure that universal service support auditors are 
        trained in universal service support program compliance and 
        audit only in connection with such compliance;
            (3) 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
            (4) 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.

SEC. 203. REPORT TO CONGRESS.

    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.

              TITLE III--INTERCARRIER COMPENSATION REFORM

SEC. 301. INTERCARRIER COMPENSATION REFORM.

    (a) Authority.--
            (1) In general.--Notwithstanding any other provision of 
        law, the Federal Communications Commission shall have authority 
        to reform intercarrier compensation systems for both interstate 
        and intrastate traffic.
            (2) Deadline.--The Federal Communications Commission shall 
        complete an initial intercarrier compensation reform proceeding 
        within 1 year after the date of enactment of this Act.
            (3) Private arrangements.--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.
    (b) Intercarrier Compensation Recovery Mechanism.--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.

SEC. 302. NETWORK TRAFFIC IDENTIFICATION ACCOUNTABILITY STANDARDS.

    Part II of title II of the Communications Act of 1934 is amended by 
adding at the end the following:

``SEC. 262. NETWORK TRAFFIC IDENTIFICATION ACCOUNTABILITY STANDARDS.

    ``(a) Network Traffic Identification Standards.--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.
    ``(b) Network Traffic Identification Rulemaking.--The Commission 
shall establish rules for traffic identification consistent with this 
section within 180 days after the date of enactment of the Universal 
Service Reform Act of 2010.
    ``(c) Network Traffic Identification Enforcement.--The Commission 
shall adopt and enforce penalties, fines, and sanctions under this 
section.''.

SEC. 303. TRAFFIC PUMPING.

    (a) Traffic Stimulation Charge.--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.
    (b) Prohibition.--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.
    (c) No Presumption of Validity.--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.

             TITLE IV--RURAL HEALTH CARE SUPPORT MECHANISMS

SEC. 401. RURAL HEALTH CARE SUPPORT MECHANISMS.

    (a) Amendment.--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:
                    ``(A) Health care services for rural areas.--Within 
                180 days after the date of enactment of the Universal 
                Service Reform Act of 2010, 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.''.
    (b) Definition of Health Care Provider.--Subparagraph (B) of 
section 254(h)(7) of such Act (47 U.S.C. 254(h)(7)(B)) is amended to 
read as follows:
                    ``(B) Health care provider.--The term `health care 
                provider' means--
                            ``(i) post-secondary educational 
                        institutions offering health care instruction, 
                        teaching hospitals, and medical schools;
                            ``(ii) community health centers or health 
                        centers providing health care to migrants;
                            ``(iii) local health departments or 
                        agencies;
                            ``(iv) community mental health centers;
                            ``(v) not-for-profit hospitals;
                            ``(vi) critical access hospitals;
                            ``(vii) rural hospitals with emergency 
                        rooms;
                            ``(viii) rural health clinics;
                            ``(ix) not-for-profit nursing facilities or 
                        not-for-profit skilled nursing facilities;
                            ``(x) hospice providers;
                            ``(xi) emergency medical services 
                        facilities;
                            ``(xii) rural dialysis facilities;
                            ``(xiii) elementary, secondary, and post-
                        secondary school health clinics; and
                            ``(xiv) consortia of health care providers 
                        consisting of one or more entities described in 
                        clauses (i) through (xiii).''.
    (c) Definition of Rural for Health Care Support.--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:
                    ``(J) Rural area.--Within 180 days after the date 
                of enactment of the Universal Service Reform Act of 
                2010, the Commission shall prescribe regulations that 
                provide that, for purposes of the rural health care 
                universal service support mechanisms established 
                pursuant to this subsection, a `rural area' is--
                            ``(i) any incorporated or unincorporated 
                        place in the United States, its territories and 
                        insular possessions (including any area within 
                        the Federated States of Micronesia, the 
                        Republic of the Marshall Islands and the 
                        Republic of Palau) that has no more than 20,000 
                        inhabitants based on the most recent available 
                        population statistics from the Census Bureau;
                            ``(ii) any area located outside of the 
                        boundaries of any incorporated or 
                        unincorporated city, village, or borough having 
                        a population exceeding 20,000;
                            ``(iii) any area with a population density 
                        of fewer than 250 persons per square mile; or
                            ``(iv) any place that qualified as a `rural 
                        area' and received support from the rural 
                        health care support mechanism pursuant to the 
                        Commission's rules in effect prior to December 
                        1, 2004, and that continues to qualify as a 
                        `rural area' pursuant to such rules.''.
    (d) Schools, Libraries, Rural Health Care, Life-Line, Link-Up, and 
Toll Limitation Hold Harmless.--Except as provided in subsections 
(h)(1)(A), (h)(7)(B), and (h)(7)(J) of section 254 of the 
Communications Act of 1934 (47 U.S.C. 254), as amended by this 
section--
            (1) 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
            (2) the Federal Communications Commission shall ensure that 
        such amendments do not result in a decrease of such support to 
        a level below the level for the fiscal year preceding the 
        fiscal year in which this Act is enacted.
                                 <all>
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