What This Bill Does
This bill requires the Federal Communications Commission to study whether internet companies like Google, Facebook, Netflix and Amazon could help pay for the Universal Service Fund. The Universal Service Fund is money used to provide phone and internet service to rural areas, schools, libraries, rural health care facilities and low-income households. The commission must finish the study and report back to Congress within 180 days.
Who It Affects
The Federal Communications Commission, Congress, edge providers (companies that provide online content or services), telecommunications companies that currently pay into the Universal Service Fund, and consumers who use telecommunications services.
Key Provisions
• The Federal Communications Commission must conduct a study and submit a report to Congress examining whether edge providers could fund the Universal Service Fund. (Sec. 2(b))
• The commission must issue a public notice asking for comments before conducting the study. (Sec. 2(b))
• The study must examine which types of online companies and services could be required to contribute, including inquiry into digital advertising revenue and user fees as potential sources. (Sec. 2(b)(1))
• The study must consider how this change would affect telecommunications bills for consumers, especially low-income, elderly and Tribal consumers. (Sec. 2(b)(9))
• The study must examine what legal authority the commission would need to make this change and how it would interact with existing federal and state laws. (Sec. 2(b)(11))
What Changes
If this bill becomes law, the Federal Communications Commission must study and report on funding options for the Universal Service Fund that involve contributions from edge providers instead of the current system. This does not automatically change how the Universal Service Fund is funded, but requires the commission to examine whether it is possible to do so.
Important Definitions
• Edge provider: a company that provides online content or services, including search engines, social media platforms, streaming services, app stores, cloud computing services or e-commerce platforms. (Sec. 2(a)(4))
• Universal Service Fund: money established to support telephone and internet service to high-cost areas, schools, libraries, rural health care facilities and the Lifeline program for low-income households. (Sec. 2(a)(5))
• Contribution: funds provided to the Universal Service Fund. (Sec. 2(a)(3))
Effective Date
Not specified in bill text
II
118TH CONGRESS
1ST SESSION
S. 856
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 pro-
viders, and for other purposes.
IN THE SENATE OF THE UNITED STATES
MARCH 16, 2023
Mr. WICKER (for himself, Mr. LUJA´N, Mr. YOUNG, and Mr. KELLY) intro-
duced the following bill; which was read twice and referred to the Com-
mittee on Commerce, Science, and Transportation
A BILL
To require the Federal Communications Commission to con-
duct 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 Representa-
1
tives of the United States of America in Congress assembled,
2
SECTION 1. SHORT TITLE.
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This Act may be cited as the ‘‘Funding Affordable
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Internet with Reliable Contributions Act’’ or the ‘‘FAIR
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Contributions Act’’.
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•S 856 IS
SEC. 2. STUDY AND REPORT ON UNIVERSAL SERVICE FUND
1
CONTRIBUTIONS.
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(a) DEFINITIONS.—In this section:
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(1) APPROPRIATE
CONGRESSIONAL
COMMIT-
4
TEES.—The term ‘‘appropriate congressional com-
5
mittees’’ means—
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(A) the Committee on Commerce, Science,
7
and Transportation of the Senate; and
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(B) the Committee on Energy and Com-
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merce of the House of Representatives.
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(2) COMMISSION.—The term ‘‘Commission’’
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means the Federal Communications Commission.
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(3) CONTRIBUTION.—The term ‘‘contribution’’
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means funds provided to the Universal Service Fund
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under section 254(d) of the Communications Act of
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1934 (47 U.S.C. 254(d)).
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(4) EDGE
PROVIDER.—The term ‘‘edge pro-
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vider’’ means a provider of online content or serv-
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ices, such as a search engine, a social media plat-
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form, a streaming service, an app store, a cloud
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computing service, or an e-commerce platform.
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(5) UNIVERSAL
SERVICE
FUND.—The term
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‘‘Universal Service Fund’’ means the fund estab-
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lished pursuant to section 254 of the Communica-
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tions Act of 1934 (47 U.S.C. 254) and administered
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by the Universal Service Administrative Company to
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•S 856 IS
support service to high-cost areas, schools and li-
1
braries, rural health care facilities, and the Lifeline
2
program of the Commission.
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(b) STUDY AND REPORT.—Not later than 180 days
4
after the date of enactment of this Act, and after issuing
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a notice of inquiry seeking public comment on the issues
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described in this subsection, the Commission shall conduct
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a study and submit to the appropriate congressional com-
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mittees a report examining the feasibility of funding the
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Universal Service Fund through contributions supplied by
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edge providers, which shall include the consideration of
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comments on, and the findings of the Commission with
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respect to—
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(1) the class of firms and services on which
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contributions could be assessed, including an inquiry
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into the specific sources of revenue potentially sub-
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ject to contributions, such as digital advertising rev-
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enue and user fees;
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(2) the equity issues of the current contribu-
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tions system, including the cost burden on con-
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sumers who traditionally purchase legacy tele-
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communications services;
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(3) equity issues of alternative contributions
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systems that would create new funding sources for
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•S 856 IS
the Universal Service Fund such as Federal appro-
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priations or assessments on edge providers;
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(4) whether a particular contributions system
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results in progressive or regressive fees;
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(5) the size of firms subject to contributions re-
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quirements;
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(6) the broadband requirements, such as band-
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width and latency, of a particular online service;
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(7) other Federal, State, and local taxes and
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fees that edge providers may already pay;
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(8) practical issues concerning the calculation
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of contributions, including which revenues should be
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subject to contributions, whether a flat or progres-
13
sive rate is most appropriate, and the logistics of
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collection;
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(9) the effect such a change would have on tele-
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communications bills of consumers, including low-in-
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come, elderly, and Tribal consumers;
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(10) the effect such a change would have on the
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sustainability of the Universal Service Fund, and
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how to ensure that Universal Service Fund disburse-
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ments are consistent and predictable over time;
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(11) the statutory authority the Commission
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would require to enact such a change and how such
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a change would interact with existing Federal and
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State law; and
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(12) the continued necessity of the Universal
3
Service Fund once advanced telecommunications ca-
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pability is available to all people in the United
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States.
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Æ
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