II Calendar No. 594 117th CONGRESS 2d Session S. 2427 IN THE SENATE OF THE UNITED STATES July 21, 2021 Mr. Wicker (for himself, Mr. Young , Mrs. Capito , Mr. Barrasso , Mr. Crapo , Mr. Luján , and Mr. Peters ) introduced the following bill; which was read twice and referred to the Committee on Commerce, Science, and Transportation December 7, 2022 Reported by Ms. Cantwell , with an amendment Strike out all after the enacting clause and insert the part printed in italic A BILL 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.

1. Short title This Act may be cited as the Funding Affordable Internet with Reliable Contributions Act or the FAIR Contributions Act . 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.

1. Short title This Act may be cited as the Funding Affordable Internet with Reliable Contributions Act or the FAIR Contributions Act . 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) Broadband provider The term broadband provider means a provider of broadband internet access service, as defined in section 8.1(b) of title 47, Code of Federal Regulations, or any successor regulation. (3) Commission The term Commission means the Federal Communications Commission. (4) Contribution The term contribution means funds contributed to the Universal Service Fund under section 254(d) of the Communications Act of 1934 ( 47 U.S.C. 254(d) ). (5) Edge provider The term edge provider means a provider of online content or services, including, but not limited to, a search engine, a social media platform, a streaming service, an app store, a cloud computing service, an over-the-top messaging service, a video conferencing service, or an e-commerce platform. (6) Universal Service Fund The term Universal Service Fund means the fund— (A) established pursuant to section 254 of the Communications Act of 1934 ( 47 U.S.C. 254 ); and (B) administered by the Universal Service Administrative Company or any other administrator designated by the Commission. (b) Study and report Not later than 1 year 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 and effects of expanding the base of contributors to the Universal Service Fund to include contributions supplied by edge providers and broadband 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 that benefit directly and financially from the programs funded by the Universal Service Fund; (2) the size and class of firms and services on which contributions could be assessed, including an inquiry into the specific sources of revenue of edge providers and broadband providers potentially subject to contributions, such as digital advertising revenue and user fees; (3) the broadband requirements, such as bandwidth and latency, of particular online services that would be subject to contribution requirements if contributions were assessed on edge providers and broadband providers; (4) other Federal, State, and local taxes and fees that edge providers and broadband providers may already pay; (5) practical issues concerning the calculation of contributions assessed on edge providers and broadband providers, including which revenues should be subject to contributions, whether a flat or progressive rate or other fee is most appropriate, whether characteristics of service such as bandwidth or latency should affect the calculation of contributions, the logistics of collection, whether a calculation would result in the same revenue source being assessed twice, and the ability to assess contributions on foreign edge providers that provide content and services to consumers in the United States; (6) the effect the assessment of contributions on edge providers and broadband providers would have on telecommunications and edge provider costs for consumers, including low-income, elderly, and Tribal consumers; (7) the effect the assessment of contributions on edge providers and broadband providers would have on the sustainability of the Universal Service Fund, and whether the assessment would ensure that Universal Service Fund disbursements are consistent and predictable over time; (8) the existing statutory authority the Commission has to assess contributions on edge providers and broadband providers, and how any change to such authority would interact with existing Federal and State law; (9) the impact of assessing contributions on any other services, including enterprise services, that are subject to the authority of the Commission; and (10) the costs to the Commission of implementing and administering a contribution assessment mechanism on broadband providers and edge providers, and the ability of the Commission to enforce such a mechanism.

December 7, 2022 Reported with an amendment