[Federal Register Volume 66, Number 21 (Wednesday, January 31, 2001)]
[Proposed Rules]
[Pages 8374-8377]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 01-2744]


 ========================================================================
 Proposed Rules
                                                 Federal Register
 ________________________________________________________________________
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 This section of the FEDERAL REGISTER contains notices to the public of 
 the proposed issuance of rules and regulations. The purpose of these 
 notices is to give interested persons an opportunity to participate in 
 the rule making prior to the adoption of the final rules.
 
 ========================================================================
 

  Federal Register / Vol. 66, No. 21 / Wednesday, January 31, 2001 / 
Proposed Rules  

[[Page 8374]]



FEDERAL COMMUNICATIONS COMMISSION

47 CFR Part 54

[CC Docket No. 96-45, FCC 01-31]


Federal-State Joint Board on Universal Service

AGENCY: Federal Communications Commission.

ACTION: Notice of proposed rule.

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SUMMARY: In this document, the Commission seeks comment on 
implementation of the Children's Internet Protection Act (CHIP Act), 
Public Law 106-554. The CHIP Act provides that in order to be eligible 
to receive discounted Internet access, Internet services, and internal 
connection services, schools and libraries that have computers with 
Internet access must have in place certain Internet safety policies.

DATES: Comments are due on or before February 15, 2001. Reply comments 
are due on or before February 22. 2001. Written comments by the public 
on the proposed and/or modified information collections discussed in 
this Further Notice of Proposed Rulemaking are due on or before 
February 15, 2001. Written comments must be submitted by the Office of 
Management and Budget (OMB) on the proposed and/or modified information 
collections on or before April 2, 2001.

ADDRESSES: All filings must be sent to the Commission's Secretary, 
Magalie Roman Salas, Office of the Secretary, Federal Communications 
Commission, 445 12th Street, SW., Washington, DC 20554. In addition to 
filing comments with the Secretary, a copy of any comments on the 
information collection(s) contained herein should be submitted to Judy 
Boley, Federal Communications Commission, Room 1-C804, 445 12th Street, 
SW., Washington, DC 20554, or via the Internet to [email protected] and to 
Edward C. Springer, OMB Desk Officer, 10236 NEOB, 725 17th Street, NW., 
Washington, DC 20503, or via the Internet to [email protected]. Parties 
should also send three paper copies of their filings to Sheryl Todd, 
Accounting Policy Division, Common Carrier Bureau, Federal 
Communications Commission, 445 Twelfth Street, SW., Room 5-B540, 
Washington, DC 20554. Parties who choose to file by paper should also 
submit their comments on diskette. These diskettes should be submitted 
to Sheryl Todd, Accounting Policy Division, Common Carrier Bureau, 
Federal Communications Commission, 445 Twelfth Street, SW., Room 5-
B540, Washington, DC 20554. In addition, commenters must send diskette 
copies to the Commission's copy contractor, International Transcription 
Services, Inc., 1231 20th Street, NW., Washington, DC 20037.

FOR FURTHER INFORMATION CONTACT: Jonathan Secrest, Attorney, Common 
Carrier Bureau, Accounting Policy Division, (202) 418-7400.

SUPPLEMENTARY INFORMATION: This is a summary of the Commission's 
Further Notice of Proposed Rulemaking (FPRM) in CC Docket No. 96-45 
released on January 23, 2001. The full text of this document is 
available for public inspection during regular business hours in the 
FCC Reference Center, Room CY-A257, 445 Twelfth Street, SW., 
Washington, DC 20554.
    This NPRM contains proposed information collection(s) subject to 
the Paperwork Reduction Act of 1995 (PRA). It has been submitted to the 
Office of Management and Budget (OMB) for review under the PRA. OMB, 
the general public, and other Federal agencies are invited to comment 
on the proposed information collections contained in this proceeding.

Paperwork Reduction Act

    The FNPRM contains a proposed information collection. The 
Commission, as part of its continuing effort to reduce paperwork 
burdens, invites the general public and OMB to comment on the 
information collection(s) contained in this NPRM, as required by the 
PRA, Public Law 104-13. Public and agency comments on the proposed and/
or modified information collections discussed in this Notice of 
Proposed Rulemaking are due on or before February 15, 2001. Written 
comments must be submitted by the Office of Management and Budget (OMB) 
on the proposed and/or modified information collections on or before 
April 2, 2001. Comments should address: (a) Whether the proposed 
collection of information is necessary for the proper performance of 
the functions of the Commission, including whether the information 
shall have practical utility; (b) the accuracy of the Commission's 
burden estimates; (c) ways to enhance the quality, utility, and clarity 
of the information collected; and (d) ways to minimize the burden of 
the collection of information on the respondents, including the use of 
automated collection techniques or other forms of information 
technology.
    1. OMB Control Number: 3060-0853.
    Title: Receipt of Service Confirmation Form and Adjustment of 
Funding Commitment and Modification to Receipt of Service Confirmation 
Form--Universal Service for Schools and Libraries.
    Form No.: FCC Form 486.
    Type of Review: Proposed Revised Collection.
    Respondents: Business or other for-profit; Not-for-Profit 
Institutions.
    No. of Respondents: 30,000.
    Est. Time Per Response: 35* hours.
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    *First year only. 1.5 hours subsequent years.
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    Total Annual Burdern: 1,050,000 hours.
    Cost to Respondents: $0.
    2. OMB Control Number: 3060-0806.
    Title: Universal Service--Schools and Libraries Universal Service 
Program.
    Form No.: FCC Form 471.
    Type of Review: Proposed Revised Collection.
    Respondents: Business or other for-profit; Not-for-Profit 
Institutions.
    No. of Resondents: 60,000.
    Est. Time Per Response: 4.5 hours.
    Total Annual Burden: 270,000 hours.
    Cost to Respondents: $0.
    Needs and Uses: In this Further Notice of Proposed Rulemaking, the 
Commission is seeking comment on the implementation of the Children's 
Internet Protection Act (CHIP Act) that provides that in order to be 
eligible under section 254 of the Communications Act of 1934, as 
amended, to receive discounted Internet access, Internet services, and 
internal connection services, schools and libraries that have computers 
with Internet access must have in place certain Internet safety 
policies. All schools and libraries receiving Internet

[[Page 8375]]

access and internal connection services supported by the schools and 
libraries support mechanism must certify that they are enforcing a 
policy of Internet safety and enforcing the operation of a technology 
prevention measure. The Commission is also seeking comment on whether 
to use a modified FCC Form 486, the Receipt of Service Confirmation 
Form (OMB 3060-0853), to serve as the appropriate means of 
certification pursuant to the CHIP Act. In future years, the Commission 
contemplates using FCC Form 471 for the certification.

Synopsis of FNPRM

I. Introduction

    1. On December 21, 2000, the President signed into law the 
Children's Internet Protection Act (the CHIP Act), included as part of 
the Consolidated Appropriations Act, 2001. Section 1721 and related 
sections of the CHIP Act provide that in order to be eligible under 
section 254 of the Communications Act of 1934, as amended (the Act), to 
receive discounted Internet access, Internet services, and internal 
connection services, schools and libraries that have computers with 
Internet access must have in place certain Internet safety policies. In 
this Further Notice of Proposed Rulemaking (Notice), we seek comment on 
implementation of the legislation.

II. Issues for Comment

    2. In this Notice, we seek comment generally on implementation of 
the CHIP Act as it affects section 254 of the Communications Act of 
1934, as amended. We seek comment in particular on the following 
issues.
    3. We tentatively conclude that the most efficient and effective 
way of obtaining the certifications required under the legislation, 
while imposing the least burden on recipients, is to modify an existing 
FCC Form to include a certification that the recipient is in compliance 
with the requirements of the legislation, or that the statute does not 
apply. We propose that recipients use one of the following 
certifications: ``I certify that the recipient complies with all 
relevant provisions of the Children's Internet Protection Act, 42 
U.S.C. 254(h).'' Or, ``I certify that the requirements of the 
Children's Internet Protection Act, 42 U.S.C. 254(h), do not apply.'' 
We seek comment on this proposal.
    4. We contemplate for funding year 4 that FCC Form 486, the Receipt 
of Service Confirmation Form, could serve as the appropriate means of 
certification pursuant to the CHIP Act when modified to include the 
required certification. In future years, we contemplate adding the 
certification to the Form 471. We invite comment on use of these forms 
for this purpose.
    5. Under the schools and libraries universal service funding 
mechanism, applicants often include entire school districts, comprising 
numerous schools, or consortia that include eligible schools and 
libraries. We therefore seek comment on which entities in these and 
other situations may make the certifications required under the CHIP 
Act.
    6. Although the CHIP Act specifies when eligible entities must make 
the certifications under 254(h) for enforcing, for both minors and 
adults, a policy of Internet safety that includes operation of a 
technology protection measure, the statute does not similarly specify 
when eligible entities must certify that they are in compliance with 
the separate Internet safety policy described in section 254(l). We 
seek comment on whether the timing requirements under section 
254(h)(5)(E) and 254(h)(6)(E) also apply to certifications by schools 
and libraries regarding the adoption and implementation of an Internet 
safety policy as required by section 254(l).
    7. Sections 254(h)(5)(F) and 254(h)(6)(F) set forth consequences 
for schools or libraries that fail to submit certifications or fail to 
comply with the CHIP Act certifications. These sections also set forth 
procedures for remedying noncompliance. We seek comment on whether any 
rules are necessary to implement these remedial provisions of the 
statute, and how these provisions can be implemented in a way that is 
administratively efficient and fair to applicants. We invite comment on 
how these provisions should be implemented in light of the annual 
funding cycle, our rule imposing a cap on the amount of federal 
universal service support for schools and libraries, and our rule that 
provides priority for applicants that file within a specified filing 
period. Finally, we invite commenters to address any additional issues 
regarding effective implementation of the CHIP Act by the Commission.

III. Procedural Matters and Ordering Clauses

    8. As required by the Regulatory Flexibility Act (RFA), the 
Commission has prepared this Initial Regulatory Flexibility Analysis 
(IRFA) of the possible significant economic impact on small entities by 
the policies and rules proposed in this Notice. Written public comments 
are requested on this IRFA. Comments must be identified as responses to 
the IRFA and must be filed by the deadlines for comments on the Notice 
provided. The Commission will send a copy of the Further Notice, 
including this IRFA, to the Chief Counsel for Advocacy of the Small 
Business Administration (SBA). In addition, the Notice and IRFA (or 
summaries thereof) will be published in the Federal Register.

1. Need for, and Objectives of, the Proposed Rules

    9. The Children's Internet Protection Act, included as part of the 
Consolidated Appropriations Act, 2001, Public Law 106-554, requires the 
Commission to prescribe regulations in order to implement the 
legislation. This Notice seeks to obtain comments about procedures that 
may be implemented in accordance with those requirements.

2. Legal Basis

    10. The legal basis for this Notice is contained in the Children's 
Internet Protection Act, included as part of the Consolidated 
Appropriations Act, 2001, Public Law 106-554, and in sections 1 through 
4, 201 through 205, 254, 303(r), and 403 of the Communications Act of 
1934, as amended by the Telecommunications Act of 1996, 47 U.S.C. 1-4, 
201-205, 254, 303(r), and 403, and Sec. 1.411 of the Commission's 
rules.

3. Description and Estimate of the Number of Small Entities To Which 
Rules Will Apply

    11. The RFA directs agencies to provide a description of and, where 
feasible, an estimate of the number of small entities that may be 
affected by the proposed rules, if adopted. The RFA generally defines 
the term ``small entity'' as having the same meaning as the terms 
``small business,'' ``small organization,'' and ``small governmental 
jurisdiction.'' In addition, the term ``small business'' has the same 
meaning as the term ``small business concern'' under the Small Business 
Act. A small business concern is one that: (1) Is independently owned 
and operated; (2) is not dominant in its field of operation; and (3) 
satisfies any additional criteria established by the Small Business 
Administration (SBA). A small organization is generally ``any not-for-
profit enterprise which is independently owned and operated and is not 
dominant in its field.'' Nationwide, as of 1992, there were 
approximately 275,801 small organizations. ``Small governmental 
jurisdiction'' generally means ``governments of cities, counties, 
towns, townships, villages, school districts, or special districts, 
with a

[[Page 8376]]

population of less than 50,000.'' As of 1992, there were approximately 
85,006 such jurisdictions in the United States. This number includes 
38,978 counties, cities, and towns; of these, 37,566, or 96 percent, 
have populations of fewer than 50,000. The Census Bureau estimates that 
this ratio is approximately accurate for all governmental entities. 
Thus, of the 85,006 governmental entities, we estimate that 81,600 (96 
percent) are small entities.
    12. Under the schools and libraries universal service support 
mechanism, which provides support for elementary and secondary schools 
and libraries, an elementary school is generally ``a non-profit 
institutional day or residential school that provides elementary 
education, as determined under state law.'' A secondary school is 
generally as ``a non-profit institutional day or residential school 
that provides secondary education, as determined under state law,'' and 
not offering education beyond grade 12. For-profit schools and 
libraries, and schools and libraries with endowments in excess of 
$50,000,000, are not eligible to receive discounts under the program, 
nor are libraries whose budgets are not completely separate from any 
schools. Certain other statutory definitions apply as well. The SBA has 
defined as small entities elementary and secondary schools and 
libraries having $5 million or less in annual receipts. In funding year 
2 (July 1, 1999 to June 20, 2000) approximately 83,700 schools and 
9,000 libraries received funding under the schools and libraries 
universal service mechanism. Although we are unable to estimate with 
precision the number of these entities that would qualify as small 
entities under SBA's definition, we estimate that fewer than 83,700 
schools and 9,000 libraries would be affected annually by the rules 
proposed in this Notice, under current operation of the program.

4. Description of Projected Reporting, Recordkeeping, and Other 
Compliance Requirements

    13. The measures under consideration in this Notice would, if 
adopted, result in minimal additional reporting. Specifically, the 
Notice proposes to require eligible schools and libraries receiving 
federal universal service support for Internet access or internal 
connections to make one of the following certifications: ``I certify 
that the recipient complies with all relevant provisions of the 
Children's Internet Protection Act, 42 U.S.C. 254(h);'' or, ``I certify 
that the requirements of the Children's Internet Protection Act, 42 
U.S.C. 254(h), do not apply.'' The Commission proposes modifying FCC 
Form 486 to include a certification for funding year 4, and modifying 
FCC Form 471 to include the certification for future years. These forms 
are already completed on a regular basis, and the modification would 
merely require the checking of one additional box prior to signing the 
form. We estimate that it would take no more than one minute to review 
and check the appropriate certification box. The Commission tentatively 
concludes that this approach would be the most effective procedure for 
implementation of the CHIP Act's requirements, and the least burdensome 
to applicants.

5. Steps Taken to Minimize Significant Economic Impact on Small 
Entities, and Significant Alternatives Considered

    14. The RFA requires an agency to describe any significant 
alternatives that it has considered in reaching its proposed approach, 
which may include the following four alternatives (among others): (1) 
The establishment of differing compliance and reporting requirements or 
timetables that take into account the resources available to small 
entities; (2) the clarification, consolidation, or simplification of 
compliance or reporting requirements under the rule for small entities; 
(3) the use of performance, rather than design, standards; and (4) an 
exemption from coverage of the rule, or part thereof, for small 
entities.
    15. This requirement is legislatively mandated, and the Commission 
is merely attempting to implement it in most effective and least 
burdensome manner possible. Given that a certification is required by 
the legislation, we considered the alternative of having each school 
and library submit separate documentation, including the appropriate 
certification, but such an approach would likely be unnecessarily 
burdensome on these entities. As discussed, the Commission tentatively 
concludes that adding a certification requirement to an existing FCC 
form is the least burdensome alternative for implementing the 
requirements of the CHIP Act. The Commission will consider other 
options as well, based in part on input from commenters.

6. Federal Rules that may Duplicate, Overlap, or Conflict with the 
Proposed Rules

    16. None.

Comment Due Dates and Filing Procedures

    17. We invite comment on the issues and questions set forth in the 
Further Notice of Proposed Rulemaking and Initial Regulatory 
Flexibility Analysis contained herein. Pursuant to applicable 
procedures set forth in Secs. 1.415 and 1.419 of the Commission's 
rules, interested parties may comment on or before February 15, 2001 
and reply comment on or before February 22, 2001. Comments may be filed 
using the Commission's Electronic Comment Filing System (ECFS) or by 
filing paper copies. See Electronic Filing of Documents in Rulemaking 
Proceedings, 63 FR 24,121, May 1, 1998.
    18. Comments filed through the ECFS can be sent as an electronic 
file via the Internet to http://www.fcc.gov/e-file/ecfs.html. 
Generally, only one copy of an electronic submission must be filed. If 
multiple docket or rulemaking numbers appear in the caption of this 
proceeding, however, commenters must transmit one electronic copy of 
the comments to each docket or rulemaking number referenced in the 
caption. In completing the transmittal screen, commenters should 
include their full name, Postal Service mailing address, and the 
applicable docket or rulemaking number. Parties may also submit 
electronic comments by Internet e-mail. To receive filing instructions 
for e-mail comments, commenters should send an e-mail to [email protected], 
and should include the following words in the body of the message, 
``get form (your e-mail address).'' A sample form and directions will 
be sent in reply.
    19. Parties who choose to file by paper must file an original and 
four copies of each filing. If more than one docket or rulemaking 
number appears in the caption of this proceeding, commenters must 
submit two additional copies for each additional docket or rulemaking 
number. All filings must be sent to the Commission's Secretary, Magalie 
Roman Salas, Office of the Secretary, Federal Communications 
Commission, 445 12th Street, SW., Washington, DC 20554. Parties also 
should send three paper copies of their filing to Sheryl Todd, 
Accounting Policy Division, Common Carrier Bureau, Federal 
Communications Commission, 445 Twelfth Street, SW., Room 5-B540, 
Washington, DC 20554.
    20. Parties who choose to file by paper should also submit their 
comments on diskette to Sheryl Todd, Accounting Policy Division, Common 
Carrier Bureau, Federal Communications Commission, 445 Twelfth Street, 
SW., Room 5-B540, Washington, DC 20554. Such a submission should be on 
a 3.5 inch diskette formatted in an IBM-compatible format using 
Microsoft Word 97 for Windows or a compatible software. The

[[Page 8377]]

diskette should be accompanied by a cover letter and should be 
submitted in ``read-only'' mode. The diskette should be clearly labeled 
with the commenter's name, proceeding, including the lead docket number 
in the proceeding (CC Docket No. 96-45), type of pleading (comment or 
reply comment), date of submission, and the name of the electronic file 
on the diskette. The label should also include the following phrase 
(``Disk Copy Not an Original.'') Each diskette should contain only one 
party's pleadings, preferably in a single electronic file. In addition, 
commenters must send diskette copies to the Commission's copy 
contractor, International Transcription Service, Inc., 1231 20th 
Street, NW., Washington, DC 20037.

IV. Ordering Clauses

    21. Pursuant to the authority contained in the Children's Internet 
Protection Act, included as part of the Consolidated Appropriations 
Act, 2001, Public Law 106-554, and in sections 1-4, 201-205, 254, 
303(r), and 403 of the Communications Act of 1934, as amended, 47 
U.S.C. 151-154, 201-205, 254, 303(r), 403, and Sec. 1.411 of the 
Commission's rules, this Further Notice of Proposed Rulemaking is 
adopted, as described herein.
    22. The Commission's Consumer Information Bureau, Reference 
Information Center, shall send a copy of this Further Notice of 
Proposed Rulemaking, including the Initial Regulatory Flexibility 
Analysis, to the Chief Counsel for Advocacy of the Small Business 
Administration.

List of Subjects in 47 CFR Part 54

    Reporting and recordkeeping requirements, Telecommunications, 
Telephone.


Federal Communications Commission.
Magalie Roman Salas,
Secretary.
[FR Doc. 01-2744 Filed 1-30-01; 8:45 am]
BILLING CODE 6712-01-U