I
107TH CONGRESS
2D SESSION
H. R. 5602
To create a Rural Issues Advisory Board within the Federal Communications
Commission, to assist the Federal Communications Commission in devel-
oping policies and procedures, and to ensure that the Commission takes
into account the size and resources of affected parties in rural America.
IN THE HOUSE OF REPRESENTATIVES
OCTOBER 10, 2002
Mr. TERRY (for himself, Mr. LUTHER, Mr. SHIMKUS, and Mr. JENKINS) in-
troduced the following bill; which was referred to the Committee on En-
ergy and Commerce, and in addition to the Committee on the Budget,
for a period to be subsequently determined by the Speaker, in each case
for consideration of such provisions as fall within the jurisdiction of the
committee concerned
A BILL
To create a Rural Issues Advisory Board within the Federal
Communications Commission, to assist the Federal Com-
munications Commission in developing policies and proce-
dures, and to ensure that the Commission takes into
account the size and resources of affected parties in
rural America.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
SECTION 1. SHORT TITLE; DEFINITIONS.
(a) SHORT TITLE.—This Act may be cited as the
‘‘Rural Issues Advisory Board Act of 2002’’.
(b) DEFINITIONS.—For purposes of this Act:
(1) RURAL TELEPHONE COMPANY.—The term
‘‘rural telephone company’’ has the meaning pro-
vided in section 3 of the Communications Act of
1934 (47 U.S.C. 153).
(2) RURAL
WIRELESS
CARRIER.—The term
‘‘rural wireless carrier’’ means any provider of com-
mercial mobile services (as such term is defined in
section 332(d) of such Act) that, together with all
affiliates of such provider, has fewer than 1 percent
of the Nation’s subscribers to such service in the ag-
gregate nationwide.
(3) 
EMERGENCY.—The 
term 
‘‘emergency’’
means an unexpected and sudden development that
has severely impacted or could severely impact the
ability of consumers to receive quality and affordable
telecommunications services and which requires im-
mediate action by the Commission.
SEC. 2. FINDINGS.
The Congress finds the following:
(1) Rural telephone companies fulfill a unique
function beneficial to the public interest and national
economy by providing a full range of vital services
to consumers in rural and insular areas where the
costs of providing service is much higher than in
other areas.
(2) Rural telephone companies operate under
circumstances that are markedly different from
those of large carriers. These differences include, but
are not limited to, factors such as much lower popu-
lation density in their service areas, higher local line
costs, higher switching costs, lower average income
levels in their service areas, a lower proportion of
business customers compared to residential cus-
tomers, and considerably smaller local calling areas
which impels more toll calls. Although rural tele-
phone companies serve fewer than eight percent of
the Nation’s access lines, their service area covers
38 percent of the Nation’s land mass.
(3) Despite these and other differences between
rural telephone companies and large telephone com-
panies, as well as among rural telephone companies
operating under highly varied circumstances, and in
spite of the critical and unique role fulfilled by rural
telephone companies, the Federal Communications
Commission often fails to adequately account for,
and defer to, these facts.
(4) As a result of this disregard, rural tele-
phone companies must face government-imposed
challenges in addition to the already difficult condi-
tions they must overcome to provide basic and ad-
vanced services to rural consumers.
(5) Rural telephone companies must also now
contend with regulatory policies designed to artifi-
cially induce competition. Such policies discourage
rural telephone companies from investing in their
networks due to the fact that any increase in the
rural telephone company’s investment only increases
the amount of high-cost support a new entrant may
receive, with no requirement that the new entrant
make similar upfront investments or undertake simi-
lar network upgrades. Consequently, rural con-
sumers must contend with the higher costs and
lower quality of services available brought about by
the introduction of artificial competition into areas
that cannot naturally support multiple carriers.
(6) The Federal Communications Commission
has failed to adhere to the Regulatory Flexibility Act
of 1980, as amended, and has at times refused to
do so. The agency charged with monitoring compli-
ance with the Regulatory Flexibility Act has repeat-
edly attempted to correct this situation, observing on
(b) TERMS.—
(1) IN GENERAL.—Except as provided in para-
graph (2), each member shall be appointed for a
term of 3 years.
(2) TERMS OF INITIAL APPOINTEES.—As des-
ignated by the President at the time of appointment,
of the members first appointed—
(A) 1 member shall be appointed for a
term of 1 year;
(B) 2 members shall be appointed for
terms of 2 years; and
(C) 2 members shall be appointed for
terms of 3 years.
(3) VACANCIES.—Any member appointed to fill
a vacancy occurring before the expiration of the
term for which the member’s predecessor was ap-
pointed shall be appointed only for the remainder of
that term. A member may serve after the expiration
of that member’s term until a successor has taken
office. A vacancy in the Board shall be filled in the
manner in which the original appointment was
made.
(c) CHAIR.—The Chair of the Board shall be elected
by the members. The term of office of the Chair shall be
3 years.
(d) MEETINGS.—
(1) The Board shall meet in person at a min-
imum of once per calendar quarter. Additional meet-
ings may be held at the discretion of the Board.
(2) The Board members may meet by means of
conference calls and video conferencing or other tele-
communications device for the purpose of nonquar-
terly meetings.
(3) The nonquarterly meetings of the Board, if
held in person, shall be required to be open to the
public. Any other nonquarterly meeting shall not be
required to be open to the public. The minutes of all
nonquarterly Board meetings shall be available to
the public no later than 48 hours after the conclu-
sion of each meeting. The minutes of each meeting
shall also be made available by being posted on the
Federal Communications Commission’s Web site.
(e) QUARTERLY MEETINGS.—
(1) The quarterly meetings of the Board shall
not be required to be in Washington, D.C.
(2) The quarterly meetings of the Board shall
be open to the public and the minutes of these meet-
ings shall be available to the public no later than 48
hours after the conclusion of each meeting. The min-
utes of each meeting shall also be made available by
being posted on the Federal Communications Com-
mission’s Web site.
(3) The Board shall publish in the Federal Reg-
ister, notice of the quarterly meeting no fewer than
30 days prior to the meeting.
(f) COMPENSATION.—
(1) SERVICE
WITHOUT
PAY.—Except as pro-
vided in paragraph (2), members of the Board shall
serve without pay.
(2) TRAVEL EXPENSES.—Each member of the
Board shall receive travel expenses, including per
diem in lieu of subsistence, in accordance with appli-
cable provisions under subchapter I of chapter 57 of
title 5, United States Code.
(g) FINANCIAL AUTHORITY OF CHAIR.—The Chair
of the Board shall be in control of funds appropriated to
carry out this Act to compensate staff, all related ex-
penses, and any other costs related to the Board or its
staff’s official business.
(h) RULES AND PROCEDURES.—The Board shall es-
tablish rules for its procedures.
(i) RESPONSIVENESS
TO CONGRESS.—The Board
shall keep the Congress and congressional committees
fully and currently informed of the major activities of the
Board.
SEC. 5. STAFF.
(a) LOCATION.—The Federal Communications Com-
mission shall provide suitable space to the Board for the
location of the Board’s staff at the headquarters of the
Commission.
(b) NUMBER AND PAY OF STAFF.—For purposes of
carrying out the responsibilities of the Board, the Board
may employ personnel with a rate of pay not to exceed
GS–15 of the General Schedule.
(c) EXEMPTION FROM CIVIL SERVICE LAWS.—The
employment and compensation of personnel under this
section may be made without regard to the provisions of
title 5, United States Code, governing appointments in the
civil service and without regard to the provisions of chap-
ter 51 and subchapter III of chapter 53 of such title relat-
ing to the classification of positions and General Schedule
pay rates.
SEC. 6. OFFICIAL DUTIES OF THE BOARD AND ITS STAFF.
(a) ADVICE TO COMMISSION.—The Board and its
staff shall advise the Commission on the impact of its deci-
sions on markets and customers in rural America.
(b) RURAL IMPACT ANALYSES.—
(1) The Board may make a rural impact anal-
ysis (as defined in section 7) of any rule, order, or
other decision of the Commission.
(2) The Board and its staff will have sole dis-
cretion to decide which rules, orders, and decisions
on which the Board wishes to make a rural impact
analysis. The Board will make the determination of
whether or not to do a rural impact analysis by a
majority vote of the Board members.
(3) Except as provided in section 4(h), the
Board shall be prohibited from issuing any rules or
regulations.
(c) OTHER INFORMATION ON IMPACTS TO COMMIS-
SION.—The Board, and its staff, may develop advisory
opinions, comments, and reports to advance the commit-
ment of the Federal Government to universal service, and
to improve access to advanced services and information
services, in rural America, and to submit such advisory
opinions, comments, and reports to the Commission.
(d) ADVICE TO OTHER AGENCIES.—The Board, and
its staff, may develop advisory opinions, comments, and
reports for other departments and agencies of the Federal
Government to advance the commitment of the Federal
Government to universal service, and to access to ad-
vanced services and information services in rural America,
and to submit such advisory opinions, comments, and re-
ports to other departments and agencies of the Federal
Government.