113 
the Internet and Universal Service Act of 2006 to es-
tablish rules and enforcement provisions for traffic 
identification. 
‘‘(3) NETWORK
TRAFFIC
IDENTIFICATION
EN-
FORCEMENT.—The Commission shall adopt and en-
force clear penalties, fines, and sanctions under this 
section. 
‘‘(4) VOICE
COMMUNICATIONS
SERVICE
DE-
FINED.—In this subsection, the term ‘voice commu-
nications service’ means telecommunications service 
or IP-enabled voice service (as defined in section 
254(d)(6)(E)).’’. 
(b) CONFORMING AMENDMENT.—Section 276(d) (47 
U.S.C. 276(d)) is amended— 
(1) by striking ‘‘DEFINITION.—’’ and inserting 
‘‘DEFINITIONS.—’’; and 
(2) by striking ‘‘services.’’ and inserting ‘‘serv-
ices, and the term ‘call’ includes any communication 
coming within the definition of ‘communications serv-
ice’ (as defined in section 254(d)) when it originated 
from a payphone.’’. 
SEC. 258. RANDOM AUDITS. 
Section 254 (47 U.S.C. 254), as amended by section 
257 of this Act, is amended by adding at the end the fol-
lowing: 
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114 
‘‘(n) AUDITS.—The Commission shall provide for ran-
dom periodic audits, to be administered by the Universal 
Service Administrative Company, of each recipient of funds 
collected pursuant to subsection (d) with respect to its re-
ceipt and use of such support. With respect to an eligible 
communications carrier, the audit shall include a review 
of its relative cost to provide service compared to other, 
similarly situated, universal service recipients based on 
their respective service areas (as defined in section 
214(e)(5)). The Commission shall take such remedial action 
as it deems necessary if any audit under this subsection 
reveals improper use of universal service support, including 
the imposition of fines or other appropriate remedies.’’. 
SEC. 259. INTEGRITY AND ACCOUNTABILITY. 
(a) IN GENERAL.—The Federal Communications Com-
mission, in consultation with the Administrator of the Uni-
versal Service Administrative Company, shall— 
(1) ensure the integrity and accountability of all 
programs established under sections 254 and 254A of 
the Communications Act of 1934 (47 U.S.C. 254 and 
254A); and 
(2) not later than 180 days after the date of en-
actment of this Act, establish rules— 
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115 
(A) identifying appropriate fiscal controls 
and accountability standards that shall be ap-
plied to programs under sections 254 and 254A; 
(B) establishing a memorandum of under-
standing, or contractual relationships, as the 
Commission determines appropriate, defining the 
administrative structure and processes by which 
the Universal Service Administrative Company 
administers programs under sections 254 and 
254A; 
(C) creating performance goals and meas-
ures for programs under sections 254 and 254A, 
that shall be used by the Commission to deter-
mine— 
(i) how efficiently and cost-effectively 
the Universal Service Administrative Com-
pany spends funds pursuant to its oper-
ation of all universal service programs; and 
(ii) areas for improving operations; 
(D) creating performance goals and meas-
urements for the Schools and Libraries Program 
under section 254(h) that— 
(i) determine the progress of schools 
and libraries toward achieving advances in 
connectivity goals; and 
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