[Federal Register Volume 76, Number 202 (Wednesday, October 19, 2011)]
[Proposed Rules]
[Pages 64882-64884]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2011-26940]


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FEDERAL COMMUNICATIONS COMMISSION

47 CFR Part 54

[WC Docket Nos. 03-109 and 11-42; DA 11-1593]


Inquiry Into Disbursement Process for the Universal Service Fund 
Low Income Program

AGENCY: Federal Communications Commission.

ACTION: Proposed rule; solicitation of comments.

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SUMMARY: In this document, the Wireline Competition Bureau (WCB) seeks 
comment on a proposal for disbursing Universal Service Fund low income 
support to eligible telecommunications carriers (ETCs) based upon 
claims for reimbursement of actual support payments made, instead of 
projected claims for support. Payment based on actual support payments 
would replace the current administrative process, under which the 
Universal Service Administrative Company (USAC) reimburses ETCs for low 
income support each month based on USAC's projection of payments and on 
a ``true-up'' calculated using an ETC's actual support payments. Among 
other things, we are seeking comment on a proposal that, if adopted, 
would require that the FCC Form 497 be filed monthly.

DATES: Comments are due on or before November 18, 2011. Reply comments 
are due on or before December 5, 2011. Written comments on the 
Paperwork Reduction Act proposed information collection requirements 
must be submitted by the public, Office of Management and Budget (OMB), 
and other interested parties on or before December 19, 2011. If you 
anticipate that you will be submitting comments, but find it difficult 
to do so within the period of time allowed by this notice, you should 
advise the contact listed below as soon as possible.

ADDRESSES: You may submit comments, identified by WC Docket Nos. 03-109 
and 11-42, by any of the following methods:
     Federal eRulemaking Portal: http://www.regulations.gov. 
Follow the instructions for submitting comments.
     Federal Communications Commission's Web Site: http://fjallfoss.fcc.gov/ecfs2/. Follow the instructions for submitting 
comments.
     People with Disabilities: Contact the FCC to request 
reasonable accommodations (accessible format documents, sign language 
interpreters, CART, etc.) by e-mail: [email protected] or phone: (202) 
418-0530 or TTY: (202) 418-0432.
     In addition to filing comments with the Secretary, a copy 
of any comments on the Paperwork Reduction Act information collection 
requirements contained herein should be submitted to the Federal 
Communications Commission via e-mail to [email protected] and to Nicholas A. 
Fraser, Office of Management and Budget, via e-mail to [email protected] or via fax at 202-395-5167.
    For detailed instructions for submitting comments and additional 
information on the rulemaking process, see the SUPPLEMENTARY 
INFORMATION section of this document.

FOR FURTHER INFORMATION CONTACT: Kimberly Scardino, Wireline 
Competition Bureau, Telecommunications Access Policy Division, (202) 
418-7400 or TTY (202) 418-0484. For additional information concerning 
the Paperwork Reduction Act information collection requirements 
contained in this document, send an e-mail to [email protected] or contact 
Judith B. Herman, Office of Managing Director, 202-418-0214.

SUPPLEMENTARY INFORMATION: This is a synopsis of the Commission's 
Public Notice, WC Docket Nos. 11-42 and 03-109; DA 11-1593, issued 
September 23, 2011. The complete text of the Public Notice is available 
for inspection and copying during normal business hours in the FCC 
Reference Information Center, Portals II, 445 12th Street, SW., Room 
CY-A257, Washington, DC 20554. The document may also be purchased from 
the Commission's duplicating contractor, Best Copy and Printing, Inc., 
445 12th Street, SW., Room CY-B402, Washington, DC 20554, telephone 
(800) 378-3160 or (202) 863-2893, facsimile (202) 863-2898, or via the 
Internet at http://www.bcpiweb.com. It is also available via ECFS 
(http://www.fcc.gov/cgb/ecfs/).
    Pursuant to Sec. Sec.  1.415 and 1.419 of the Commission's rules, 
interested parties may file comments and reply comments on or before 
the dates indicated on the first page of this document. All comments 
are to reference WC Docket Nos. 11-42 and 03-109. Comments may be filed 
using: (1) the Commission's Electronic Comment Filing System (ECFS) or 
(2) by filing paper copies. See Electronic Filing of Documents in

[[Page 64883]]

Rulemaking Proceedings, 63 FR 24121, May 1, 1998.
     Electronic Filers: Comments may be filed electronically 
using the Internet by accessing the ECFS: http://fjallfoss.fcc.gov/ecfs2/.
     Paper Filers: Parties who choose to file by paper must 
file an original and one copy of each filing. If more than one docket 
or rulemaking number appears in the caption of this proceeding, filers 
must submit two additional copies for each additional docket or 
rulemaking number.
    Filings can be sent by hand or messenger delivery, by commercial 
overnight courier, or by first-class or overnight U.S. Postal Service 
mail. All filings must be addressed to the Commission's Secretary, 
Office of the Secretary, Federal Communications Commission.

--All hand-delivered or messenger-delivered paper filings for the 
Commission's Secretary must be delivered to FCC Headquarters at 445 
12th St., SW., Room TW-A325, Washington, DC 20554. The filing hours are 
8 a.m. to 7 p.m. All hand deliveries must be held together with rubber 
bands or fasteners. Any envelopes must be disposed of before entering 
the building.
--Commercial overnight mail (other than U.S. Postal Service Express 
Mail and Priority Mail) must be sent to 9300 East Hampton Drive, 
Capitol Heights, MD 20743.
--U.S. Postal Service first-class, Express, and Priority mail must be 
addressed to 445 12th Street, SW, Washington DC 20554.

     Additional copies: One copy of each filing must be sent to 
each of the following:

--The Commission's duplicating contractor, Best Copy and Printing, 
Inc., 445 12th Street, SW., Room CY-B402, Washington, DC 20554, (202) 
488-5300, or via e-mail to [email protected].
--Charles Tyler, Telecommunications Access Policy Division, Wireline 
Competition Bureau, 445 12th Street, SW., Room 5-A452, Washington, DC 
20554; e-mail: [email protected].

     People with Disabilities: To request materials in 
accessible formats for people with disabilities (Braille, large print, 
electronic files, audio format), send an e-mail to [email protected] or 
call the Consumer & Governmental Affairs Bureau at 202-418-0530 
(voice), 202-418-0432 (tty).
     Filings and comments are available for public inspection 
and copying during regular business hours at the FCC Reference 
Information Center, Portals II, 445 12th Street, SW., Room CY-A257, 
Washington, DC 20554. They may also be purchased from the Commission's 
duplicating contractor, Best Copy and Printing, Inc., Portals II, 445 
12th Street, SW., Room CY-B402, Washington, DC 20554, telephone: (202) 
488-5300, fax: (202) 488-5563, or via e-mail http://www.bcpiweb.com.
    In addition to filing comments with the Secretary, a copy of any 
comments on the Paperwork Reduction Act information collection 
requirements contained herein should be submitted to the Federal 
Communications Commission via e-mail to [email protected] and to Nicholas A. 
Fraser, Office of Management and Budget, via e-mail to [email protected] or via fax at 202-395-5167.

Initial Paperwork Reduction Act of 1995 Analysis

    This document contains proposed information collection 
requirements. The Commission, as part of its continuing effort to 
reduce paperwork burdens, invites the general public and the Office of 
Management and Budget (OMB) to comment on the information collection 
requirements contained in this document, as required by the Paperwork 
Reduction Act of 1995, Public Law 104-13. Public and agency comments 
are due December 19, 2011.
    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; (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; and (e) 
ways to further reduce the information collection burden on small 
business concerns with fewer than 25 employees. In addition, pursuant 
to the Small Business Paperwork Relief Act of 2002, Public Law 107-198, 
see 44 U.S.C. 3506(c)(4), we seek specific comment on how we might 
further reduce the information collection burden for small business 
concerns with fewer than 25 employees.
    OMB Control Number: 3060-0819.
    Title: Lifeline Assistance (Lifeline) Connection Assistance (Link-
Up) Reporting Worksheet and Instructions (47 CFR 54.400-54.417).
    Form Number: FCC Form 497
    Type of Review: Revision of currently approved collection.
    Respondents: Business or other for-profit (Eligible 
Telecommunications Carriers (ETCs)).
    Number of Respondents and Responses: Approximately 251,400 
respondents; 280,450 responses.
    Estimated Time per Response: 5 hrs per month.
    Frequency of Response: Monthly, quarterly, annually and on occasion 
reporting requirements.
    Obligation to Respond: Required to obtain or retain benefits. 
Statutory authority for this information collection is contained in 47 
U.S.C. sections 4(i), 201-205, 214, 254, and 403.
    Total Annual Burden: 61,386 hours.
    Total Annual Costs: N/A.
    Privacy Act Impact Assessment: The changes proposed in the 2011 
Disbursement Process PN (requiring monthly rather than optional 
monthly/quarterly filing of Form 497), do not affect individuals or 
households, and thus have no impact under the Privacy Act. However, 
other portions of information collection 3060-0819 affects individuals 
or households, and thus, there are impacts under the Privacy Act. As 
required by the Privacy Act of 1974, as amended, 5 U.S.C. 552a, the 
Commission is creating a system of records notice (SORN) to cover those 
aspects of this information collection that impact individuals or 
households. In addition, the Commission is preparing a Privacy Impact 
Assessment (PIA) as required by OMB Memorandum M-03-22.
    Nature and Extent of Confidentiality: This proposed revision does 
not address information of a confidential nature.
    Needs and Uses: The information collected via FCC Form 497 
(Lifeline and Link Up Worksheet) provides the Commission with the 
necessary information to administer the Lifeline/Link-Up programs, and 
determine the amount of support entities seeking funding are eligible 
to receive. Currently, the FCC Form 497 may be filed either monthly or 
quarterly. The Commission is proposing to revise the currently approved 
collection 3060-0819 reporting requirement, requiring ETCs to file the 
FCC Form 497 monthly.

Synopsis of Proposed Administrative Rule

I. Introduction

    1. The Wireline Competition Bureau (WCB) seeks comment on a 
proposal for disbursing Universal Service Fund (USF) low income support 
to eligible telecommunications carriers (ETCs) based upon claims for 
reimbursement of actual support payments made, instead of projected 
claims for support. Payment

[[Page 64884]]

based on actual support payments could replace the current 
administrative process, under which USAC reimburses ETCs for low income 
support each month based on USAC's projection of payments and on a 
``true-up'' calculated using an ETC's actual support payments.
    On May 13, 2011 the Commission's Office of the Managing Director 
(OMD) directed USAC to propose an administrative process for disbursing 
USF low income support to ETCs based on verified claims for 
reimbursement. USAC submitted its proposal on August 9, 2011, the text 
of which is located at http://transition.fcc.gov/Daily_Releases/Daily_Business/2011/db1003/DA-11-1593A1.pdf.

II. Comment Sought on Proposal

    2. To facilitate a smooth transition to a revised payment process, 
we seek public comment on USAC's proposed plan to pay low income 
support reimbursement based solely on actual support payments, 
including the following issues:
    3. Filing Deadline. USAC proposes to establish a monthly due date 
by which ETCs must submit their FCC Form 497 in order to receive a 
payment at the end of the following month. Carriers that do not file 
FCC Form 497 by the monthly deadline in a given month would not receive 
a payment in the following month. USAC would process an FCC Form 497 
received after the monthly deadline during the following month, and 
would make a disbursement based on that support claim in the subsequent 
month. We seek comment on monthly filing deadline and on the process 
for disbursing payment to ETCs that miss a monthly deadline.
    4. Quarterly Filing. Under USAC's proposal, carriers would be 
allowed to continue to file quarterly, but those that do so would no 
longer be paid monthly. Instead, for the month following the month the 
forms are filed, ETCs filing on a quarterly basis would receive one 
payment for all three months filed. We seek comment on the adequacy of 
quarterly reimbursements.
    5. Deadline for New Support and Filing Revisions. Currently, USAC 
maintains an administrative window of fifteen months for filing 
original or revised support claims. Specifically, after the end of each 
calendar year (closed calendar year), carriers have fifteen months to 
file original claims or to revise support claims for the closed 
calendar year. After the fifteen-month window, ETCs may not file 
revised or original support claims for any portion of the closed 
calendar year. Under USAC's proposed plan, new support claims and 
upward revisions would only be permitted to be filed within an 
administrative window of six months. We seek comment on whether this 
new filing window provides ETCs sufficient time to file revisions. 
Commenters proposing a longer filing window should provide a detailed 
explanation of why the proposed six-month period would be insufficient.
    6. True-Up before Transition to New Disbursement Process. Most ETCs 
currently receive payments based on projections. Under USAC's proposed 
plan, in order to transition to paying on actual support claims, USAC 
would true-up all payments against projections for each ETC. ETCs 
currently paid based on projections will likely receive little or no 
support for the month in which the program transitions to payments 
against actual claims. The example at Table 2 of Appendix A illustrates 
how the transition month would affect a typical carrier's support 
payment. We seek comment on the proposed true-up process for the 
transition month, and whether USAC's proposed early transition option 
provides ETCs with sufficient time to transition from projected to 
actual claims. Commenters with alternative proposals should provide 
examples of how such proposals would work.
    7. Payment of Negative Balance as a Result of Transition True-Up. A 
carrier may incur a negative disbursement as a result of the true-up 
process during the transition month. Under USAC's proposed plan, in the 
event the negative amount exceeds the carrier's next monthly payment, 
USAC would invoice the carrier for the full amount of the negative 
balance. We seek comment on this approach to the settlement of negative 
balances.
    8. Transition Date and Early Transition Option. If adopted, the new 
disbursement process would contain a transition date by which all 
carriers would receive support based on claims for actual, rather than 
projected, support. We seek comment on what date would be appropriate 
for the transition, including details to support any dates proposed. 
Additionally, under USAC's proposed plan, ETCs could elect to 
transition to the new disbursement process prior to the transition 
deadline. For example, a carrier that claims low income program support 
in multiple study areas may wish to transition its study areas at 
different times in order to phase-in payment on actual support claims, 
rather than have all of its study areas transition at the same time. We 
seek comment on this early transition option. Commenters with 
alternative proposals should provide examples of how such proposals 
would work.
    9. Implementation and Outreach. OMD requested that USAC's proposal 
include an implementation and outreach component, which USAC includes 
in its proposal. We seek comment on whether the key components of 
USAC's outreach plan are sufficient to notify and educate ETCs on 
USAC's new process for paying on actual claims.
    10. Codifying USAC's Procedures. We invite comments on all aspects 
of the proposal located at http://transition.fcc.gov/Daily_Releases/Daily_Business/2011/db1003/DA-11-1593A1.pdf. Without limitation, we 
seek comment on whether USAC's requirements for ETCs' seeking and 
recovering reimbursement for Lifeline and Link Up should be codified in 
Commission rules, or should be adopted as an administrative procedure, 
posted on USAC's Web site. Section 553(b)(3)(A) of the Administrative 
Procedure Act (APA) states that notice and comment requirements do not 
apply to ``interpretive rules, general statements of policy, or rules 
of agency organization, procedure, or practice.'' 5 U.S.C. 
553(b)(3)(A). The proposed revised disbursement schedule is a non-
substantive change to the administrative aspects of the low income 
program, and is therefore exempt from the notice-and-comment procedures 
of section 553 of the APA. After reviewing comments, OMD and WCB will 
determine what further steps are needed to adopt a new process.
    11. This matter shall be treated as a ``permit-but-disclose'' 
proceeding in accordance with the Commission's ex parte rules. Persons 
making oral ex parte presentations are reminded that memoranda 
summarizing the presentations must contain summaries of the substance 
of the presentation and not merely a listing of the subjects discussed. 
More than a one or two sentence description of the views and arguments 
presented generally is required. Other rules pertaining to oral and 
written ex parte presentations in permit-but-disclose proceedings are 
set forth in Sec.  1.1206(b) of the Commission's rules.

Federal Communications Commission.
Trent Harkrader,
Division Chief, Wireline Competition Bureau.
[FR Doc. 2011-26940 Filed 10-18-11; 8:45 am]
BILLING CODE 6712-01-P