FAIR Contributions Act
Bill: H.R.8575 | Sponsor: Rep. Mullin, Markwayne (R-OK)
Policy area: Science, Technology, Communications

Summary:
Funding Affordable Internet with Reliable Contributions Act or the FAIR Contributions Act
This bill requires the Federal Communications Commission (FCC) to study and report on the feasibility of funding the Universal Service Fund through contributions from edge providers (i.e., providers of online content or services, such as search engines).
The fund provides support to high-cost areas, schools and libraries, rural health care facilities, and the Lifeline program (an FCC program that provides a discount on phone service for low-income consumers).
The report must consider (1) the type and size of firms and services on which contributions could be assessed, (2) equity issues related to current versus alternative systems for contributing to the fund, (3) the effect of any change to the contribution system on the telecommunications bills of consumers, and (4) the sustainability of the fund and how to ensure that fund disbursements are consistent and predictable over time.

To require the Federal Communications Commission to conduct a study and 
 submit to Congress a report examining the feasibility of funding the 
     Universal Service Fund through contributions supplied by edge 
                   providers, 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 ``Funding Affordable Internet with 
Reliable Contributions Act'' or the ``FAIR Contributions Act''.

SEC. 2. STUDY AND REPORT ON UNIVERSAL SERVICE FUND CONTRIBUTIONS.

    (a) Definitions.--In this section:
            (1) Appropriate congressional committees.--The term 
        ``appropriate congressional committees'' means--
                    (A) the Committee on Commerce, Science, and 
                Transportation of the Senate; and
                    (B) the Committee on Energy and Commerce of the 
                House of Representatives.
            (2) Commission.--The term ``Commission'' means the Federal 
        Communications Commission.
            (3) Contribution.--The term ``contribution'' means funds 
        provided to the Universal Service Fund under section 254(d) of 
        the Communications Act of 1934 (47 U.S.C. 254(d)).
            (4) Edge provider.--The term ``edge provider'' means a 
        provider of online content or services, such as a search 
        engine, a social media platform, a streaming service, an app 
        store, a cloud computing service, or an e-commerce platform.
            (5) Universal service fund.--The term ``Universal Service 
        Fund'' means the fund established pursuant to section 254 of 
        the Communications Act of 1934 (47 U.S.C. 254) and administered 
        by the Universal Service Administrative Company to support 
        service to high-cost areas, schools and libraries, rural health 
        care facilities, and the Lifeline program of the Commission.
    (b) Study and Report.--Not later than 180 days after the date of 
enactment of this Act, and after issuing a notice of inquiry seeking 
public comment on the issues described in this subsection, the 
Commission shall conduct a study and submit to the appropriate 
congressional committees a report examining the feasibility of funding 
the Universal Service Fund through contributions supplied by edge 
providers, which shall include the consideration of comments on, and 
the findings of the Commission with respect to--
            (1) the class of firms and services on which contributions 
        could be assessed, including an inquiry into the specific 
        sources of revenue potentially subject to contributions, such 
        as digital advertising revenue and user fees;
            (2) the equity issues of the current contributions system, 
        including the cost burden on consumers who traditionally 
        purchase legacy telecommunications services;
            (3) equity issues of alternative contributions systems that 
        would create new funding sources for the Universal Service Fund 
        such as Federal appropriations or assessments on edge 
        providers;
            (4) whether a particular contributions system results in 
        progressive or regressive fees;
            (5) the size of firms subject to contributions 
        requirements;
            (6) the broadband requirements, such as bandwidth and 
        latency, of a particular online service;
            (7) other Federal, State, and local taxes and fees that 
        edge providers may already pay;
            (8) practical issues concerning the calculation of 
        contributions, including which revenues should be subject to 
        contributions, whether a flat or progressive rate is most 
        appropriate, and the logistics of collection;
            (9) the effect such a change would have on 
        telecommunications bills of consumers, including low-income, 
        elderly, and Tribal consumers;
            (10) the effect such a change would have on the 
        sustainability of the Universal Service Fund, and how to ensure 
        that Universal Service Fund disbursements are consistent and 
        predictable over time;
            (11) the statutory authority the Commission would require 
        to enact such a change and how such a change would interact 
        with existing Federal and State law; and
            (12) the continued necessity of the Universal Service Fund 
        once advanced telecommunications capability is available to all 
        people in the United States.
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