‘‘(2) DISREGARD OF INTERSTATE COMPONENT.— 
A State may require telecommunications service pro-
viders and IP-enabled voice service providers to con-
tribute under paragraph (1) regardless of whether the 
service contains an interstate component. 
‘‘(3) BUNDLING.—If a telecommunications serv-
ice or IP-enabled voice service is offered as part of a 
bundle of services, the Commission shall determine a 
fair allocation of revenue between the telecommuni-
cations service or IP-enabled voice service and other 
bundled services if the primary place of use of such 
bundled services is within the State. 
‘‘(4) GUIDELINES.—Regulations adopted by a 
State under this subsection shall result in a specific, 
predictable, and sufficient mechanism to support uni-
versal service and shall be competitively and techno-
logically neutral, equitable, and nondiscriminatory.’’. 
(b) PROPER ACCOUNTING
OF UNIVERSAL SERVICE 
CONTRIBUTIONS.— 
(1) FROM ALL BUDGETS.—Notwithstanding any 
other provision of law, the receipts and disbursements 
of universal service under section 254 of the Commu-
nications Act of 1934 (47 U.S.C. 254) shall not be 
counted as new budget authority, outlays, receipts, or 
deficit or surplus for purposes of— 
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(A) the budget of the United States Govern-
ment 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 seques-
ters. 
(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 au-
thorized by the Federal Communications Com-
mission under section 254 and 254A of the Com-
munications Act of 1934 (47 U.S.C. 254 and 
254A). 
(c) FINANCIAL MANAGEMENT.—The Federal Commu-
nications Commission and the Administrator of the Uni-
versal Service Fund— 
(1) shall account for the financial transactions of 
the Fund in accordance with generally accepted ac-
counting principles for Federal agencies; 
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(2) shall maintain the accounts of the Fund in 
accordance with the United States Government 
Standard General Ledger; and 
(3) may invest unexpended balances only in Fed-
eral securities (as defined in section 113(b)(5) of Of-
fice of Management and Budget circular OMB A–11 
or any revision of that circular). 
(d) RULEMAKING.—Not later than 180 days after the 
date of enactment of this Act, the Federal Communications 
Commission shall issue a rule to implement section 254(d) 
of the Communications Act of 1934 (47 U.S.C. 254(d)) as 
amended by this section. 
(e) CONGRESSIONAL REVIEW.—Any rule issued under 
subsection (d) shall— 
(1) be submitted to Congress, along with any 
data and information relied upon to establish such 
rule; and 
(2) not take effect until the date that is 90 days 
after the date of such submission. 
SEC. 212. MODIFICATION OF RURAL VIDEO SERVICE EXEMP-
TION. 
(a) 
RURAL
TELEPHONE
COMPANIES.—Section 
251(f)(1) (47 U.S.C. 251(f)(1)) is amended— 
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(1) by striking ‘‘Subsection’’ in subparagraph 
(A) and inserting ‘‘Except as provided in subpara-
graph (B), subsection’’; 
(2) by striking ‘‘interconnection, services, or net-
work elements’’ in subparagraphs (A) and (B) and 
inserting ‘‘services or network elements’’; 
(3) by striking ‘‘(under subparagraph (B))’’ in 
subparagraph (A) and inserting ‘‘(under subpara-
graph (C))’’; 
(4) by redesignating subparagraphs (B) and (C) 
as subparagraphs (D) and (E); 
(5) by inserting after subparagraph (A) the fol-
lowing: 
‘‘(B) CERTAIN
CARRIERS.—Subsection (c) 
(other than paragraphs (1) and (2) thereof) of 
this section shall not apply to a rural telephone 
company in Alaska with fewer than 10 access 
lines per square mile installed in the aggregate 
in its service area (as defined in section 
214(e)(5)). 
‘‘(C) INTERCONNECTION.—Notwithstanding 
subparagraphs (A) and (D), paragraphs (1) and 
(2) of subsection (c) of this section shall not 
apply to a rural telephone company until such 
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company has received a bona fide request for 
interconnection.’’; and 
(6) by striking subparagraph (E), as redesig-
nated. 
(b) OTHER RURAL CARRIERS.—Section 251(f)(2) (47 
U.S.C. 251(f)(2)) is amended by inserting ‘‘(other than 
paragraphs (1) and (2) of subsection (c))’’ after ‘‘subsection 
(b) or (c)’’ in the first sentence. 
(c) EFFECTIVE DATE.—Notwithstanding any other 
provision of this Act, the amendments made by this section 
shall take effect on the date of enactment of this Act. 
SEC. 213. INTERCONNECTION. 
Title VII (47 U.S.C. 601 et seq.) is amended by adding 
after section 714 the following new section: 
‘‘SEC. 715. RIGHTS AND OBLIGATIONS OF IP-ENABLED 
VOICE SERVICE PROVIDERS. 
‘‘(a) IN GENERAL.—A facilities-based IP-enabled voice 
service provider shall have the same rights, duties, and obli-
gations, including any obligation imposed under section 
276, as a requesting telecommunications carrier under sec-
tions 251 and 252, if the provider elects to assert such 
rights. A telecommunications carrier may not refuse to 
transport or terminate IP-enabled voice traffic solely on the 
basis that it is IP-enabled. A provider originating, trans-
mitting, or terminating IP-enabled voice traffic shall not 
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