I 
112TH CONGRESS 
1ST SESSION H. R. 3118 
To direct the Federal Communications Commission to revisit the universal 
service support program under section 254 of the Communications Act 
of 1934 to reduce waste, fraud, and abuse, and for other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
OCTOBER 6, 2011 
Mr. FARENTHOLD (for himself, Mr. FLORES, Mr. COFFMAN of Colorado, Mr. 
KINGSTON, Mr. PAUL, Mr. KELLY, Mr. NUNNELEE, Mr. HARRIS, and 
Mr. MULVANEY) introduced the following bill; which was referred to the 
Committee on Energy and Commerce 
A BILL 
To direct the Federal Communications Commission to revisit 
the universal service support program under section 254 
of the Communications Act of 1934 to reduce waste, 
fraud, and abuse, and for other purposes. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. UNIVERSAL SERVICE PROGRAM. 
(a) FORBEARANCE AUTHORITY RESCINDED.— 
(1) IN GENERAL.—As of the date of enactment 
of this Act, the Federal Communications Commis-
sion may not forbear from the requirements of sec-
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tion 214(e)(1) of the Communications Act of 1934 
(47 U.S.C. 214(e)(1)) with respect to the designa-
tion of an eligible telecommunications carrier. 
(2) TRANSITION PERIOD.—On the 120th day 
after the date of enactment of this Act, the Federal 
Communications Commission shall suspend the des-
ignation of a telecommunications carrier as an eligi-
ble telecommunications carrier if such designation 
was received through forbearance of the require-
ments of such section. 
(3) AMENDMENT.—Section 214(e) of the Com-
munications Act of 1934 (47 U.S.C. 214(e)) is 
amended by adding at the end the following: 
‘‘(7) CLARIFICATION.—The charges referred to 
in paragraph (1)(B) for such services shall be more 
than zero.’’. 
(b) CONTRIBUTION.— 
(1) AMOUNT.—The amount collected to support 
universal service under section 254 of the Commu-
nications Act of 1934 (47 U.S.C. 254) each year 
shall be the same amount that was collected for fis-
cal year 2011. 
(2) SAVINGS
REDUCTION.—Of this amount, 
$500,000,000 shall be transferred each year to the 
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General Fund of the Treasury and shall not be 
available for obligation or expenditure. 
(c) REFORM LIFELINE AND LINK-UP PROGRAMS.— 
Not later than 120 days after the date of enactment of 
this Act, the Federal Communications Commission shall 
complete a rulemaking to implement the following reforms 
to the programs providing universal service support to low 
income consumers, commonly known as the Lifeline and 
Link-up programs, under such section 254: 
(1) To ensure that the programs are only sup-
porting service for 1 telephone connection per house-
hold (regardless of whether that telephone is pro-
vided through a landline or a commercial mobile 
service), the Commission shall establish a database 
and shall require an eligible telecommunications car-
rier under section 214(e) of such Act to— 
(A) include participation information in 
the database on all households that qualify and 
are receiving service from such carrier through 
the Lifeline or Link-Up programs; and 
(B) use the database to determine if a 
Lifeline or Link-Up customer is already being 
served by another provider before establishing 
new service or continuing service. 
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(2) The Commission shall update the form used 
by an eligible telecommunications carrier to make a 
reimbursement claim from the universal service sup-
port mechanisms under section 254 of such Act to 
provide information sufficient to identify and pre-
vent duplicate reimbursements. 
(3) The Commission shall require all eligible 
telecommunications carriers providing commercial 
mobile services to implement a 60-day inactivity pol-
icy. 
(4) The Commission shall implement guidance 
for the Universal Service Administrative Company 
on how to recover improper payments made to eligi-
ble telecommunications carriers. 
Æ 
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