[Federal Register Volume 87, Number 30 (Monday, February 14, 2022)]
[Rules and Regulations]
[Pages 8205-8210]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2022-03057]


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FEDERAL COMMUNICATIONS COMMISSION

47 CFR Part 54

[CC Docket No. 02-6; FCC 22-8; FR ID 70414]


Schools and Libraries Universal Service Support Mechanism

AGENCY: Federal Communications Commission.

ACTION: Final rule.

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SUMMARY: In this document, the Federal Communications Commission 
(Commission) takes steps to address one of the barriers to 
participation and clarify the eligibility of Tribal libraries for E-
Rate program support by updating the definition of ``library'' in its 
E-Rate program rules to include Tribal libraries. By doing so, the 
Commission seeks to resolve a longstanding issue for Tribal libraries 
in the E-Rate program rules, consistent with Congressional action taken 
in 2018, and to encourage increased Tribal library access to affordable 
broadband connectivity through the E-Rate program.

DATES: Effective March 16, 2022.

FOR FURTHER INFORMATION CONTACT: Kate Dumouchel, Wireline Competition 
Bureau, (202) 418-7400 or by email at [email protected]. The 
Commission asks that requests for accommodations be made as soon as 
possible in order to allow the agency to satisfy such requests whenever 
possible. Send an email to [email protected] or call the Consumer and 
Governmental Affairs Bureau at (202) 418-0530.

SUPPLEMENTARY INFORMATION: This is a synopsis of the Commission's 
Report and Order in CC Docket No. 02-6; FCC 22-8, adopted January 27, 
2022 and released January 28, 2022. Due to the COVID-19 pandemic, the 
Commission's headquarters will be closed to the general public until 
further notice. The full text of this document is available at the 
following internet address: https://www.fcc.gov/document/fcc-connecting-tribal-libraries-through-e-rate-program-0.

I. Introduction

    1. The E-Rate program provides support to schools and libraries 
across the nation to obtain affordable, high-speed broadband services 
and internal connections to connect today's students and library 
patrons with next-generation learning opportunities and services. Since 
the beginning of the program, E-Rate support has helped libraries 
afford these services and provide free, public internet access to their 
communities. But for far too long, Tribal libraries have been unable to 
participate fully in the E-Rate program. This situation has exacerbated 
enduring inequities, as Tribal libraries often serve as a critical 
source of internet access in underserved areas across the nation.
    2. The Commission takes steps to address one of the barriers to 
participation and clarify the eligibility of Tribal libraries for E-
Rate program support by updating the definition of ``library'' in its 
E-Rate program rules to include Tribal libraries. By doing so, the 
Commission seeks to resolve a longstanding issue for Tribal libraries 
in the E-Rate program rules, consistent with Congressional action taken 
in 2018, and to encourage increased Tribal library access to affordable 
broadband connectivity through the E-Rate program.

II. Discussion

    3. To ensure that our nation's Tribal libraries and their library 
patrons have access to high-speed broadband and to encourage Tribal 
libraries' participation in the E-Rate program, the Commission now 
amends its E-Rate program rules to clarify that Tribal libraries are 
eligible for E-Rate support. Specifically, the Commission adds ``Tribal 
library'' to the definition of library in section 54.500 of the 
Commission's rules and removes the reference to Public Law 104-208, 
which contains the version of the Library Services and Technology Act 
(LSTA) enacted in 1996. All stakeholders submitting comments support 
this rule change, and no commenter opposed it.
    4. Interested parties agree that this rule change is the first step 
in ensuring that Tribal libraries have access to funding to provide 
affordable internet access to their communities. These changes update 
the E-Rate program rules and ensure that the E-Rate program can support 
library services in Tribal communities. The changes align with both 
Congress' 2018 amendments to the LSTA and the Commission's Emergency 
Connectivity Fund program rules. Moreover, the changes will simplify 
administration of the E-Rate and Emergency Connectivity Fund programs 
for the Universal Service Administrative Company (USAC), which 
administers both programs and checks applicant eligibility. Consistent 
with the rules adopted for the Emergency Connectivity Fund program, the 
E-Rate rules clarify that Tribal libraries, which are by statute 
eligible for support from State library administrative agencies under 
the LSTA, are eligible for support from the E-Rate program. Receipt of 
LSTA funds by Tribal libraries is not required for participation in the 
E-Rate program.
    5. These rule changes should also clarify and simplify E-Rate 
eligibility for Tribal libraries and, in time, will increase Tribal 
participation in the program. Comments filed by the American Library 
Association (ALA) and the Association of Tribal Archives, Libraries and 
Museums (ATALM) include preliminary results of a 2021 ATALM 
comprehensive digital inclusion survey, which note that only 12 percent 
of the Tribal libraries responding reported that they had ever applied, 
even fewer than the 15 percent of Tribal libraries that had previously 
reported receiving E-Rate support. This data is especially troubling, 
given that there is reduced broadband access in Tribal areas and 
libraries are often the ``next best alternative for many Tribal 
families and households'' to obtain internet access. Tribal governments 
and libraries have had issues interacting with and gaining support from 
State

[[Page 8206]]

agencies. The Navajo Nation Telecommunications Regulatory Commission 
(NNTRC) describes how the Navajo Nation, which spans three states, 
began an internal process in 2018 to participate in the E-Rate program 
by engaging with the State library administrative agencies in Arizona, 
New Mexico, and Utah to establish whether its Chapter Houses were 
libraries eligible for assistance from those State library 
administrative agencies under the LSTA. NNTRC explains that it took 
several years and significant resources to determine eligibility, which 
it argues could have been avoided if the rules the Commission adopts 
here had been in place then.
    6. Several commenters asked the Commission to clarify who can 
designate a Tribal library or to interpret the definition of Tribal 
library in a flexible manner. First, the Commission agrees that Tribal 
libraries can be designated by a Tribal Council. Second, the Commission 
understands that ``what constitutes a library is reflective of the 
cultural, educational, and social needs of each tribe,'' but also 
remind applicants that they must be eligible by statute for support 
under the LSTA to be eligible to participate in E-Rate. The Institute 
of Museum and Library Services, the federal agency with expertise in 
the LSTA and that provides Native American library grants, requires 
Native American libraries applying for Native American Library Services 
Enhancement Grants to demonstrate that they have three basic 
characteristics: ``(1) regularly scheduled hours, (2) staff, and (3) 
materials available for library users.'' The Commission believes that 
these characteristics are therefore appropriate for Tribal libraries 
seeking support from the E-Rate program. In response to commenters 
seeking eligibility for Tribal College libraries, the Commission 
reminds applicants that when the Commission first adopted its rules on 
library eligibility for E-Rate discounts, it determined that libraries 
must be independent entities, ``whose budgets are completely separate 
from any schools (including, but not limited to elementary schools, 
colleges, and universities.'' As such, Tribal libraries that are part 
of a Tribal College or university remain ineligible for E-Rate support 
at this time.
    7. On the whole, the Commission expects this rule change to 
simplify the process for Tribal libraries to apply for E-Rate funding 
by clarifying their eligibility without requiring Tribal libraries to 
fit within the precise definitions that may be put in place by a State 
library administrative agency. By making Tribal library eligibility 
clear, the Commission aims to further the program goal of ensuring 
affordable access to high-speed broadband sufficient to support robust 
connectivity for Tribal libraries by increasing participation in the E-
Rate program. The Commission also furthers the Commission's ongoing 
obligation to advance digital equity for all, including Indigenous and 
Native American persons, people of color, persons with disabilities, 
persons who live in rural or Tribal areas, and others who are or have 
been historically underserved, marginalized, or adversely affected by 
persistent poverty or inequality. By lowering the barriers to 
participating in the E-Rate program, the Commission hopes to narrow the 
digital divide in Tribal regions, ``where increased digital inclusion 
will yield economic, educational, and healthcare outcome 
improvements.''
    8. Outreach. Preliminary results of the 2021 ATALM comprehensive 
digital inclusion survey of Tribal libraries included in ALA and 
ATALM's comments show that ``38% of respondents had not heard of the E-
rate program, 30% were unsure if they were eligible, 13% said the 
application was too complicated, and 39% would like to learn more about 
the program.'' The Commission agrees with commenters that these numbers 
demonstrate that the Commission needs to do more to increase awareness 
of the program and training opportunities among Tribal libraries. 
Therefore, in conjunction with this rule change, the Commission directs 
the Office of Native Affairs and Policy (ONAP) and the Wireline 
Competition Bureau (WCB), with assistance from the Tribal liaison at 
USAC, to target outreach efforts and program training for Tribal 
libraries.
    9. Tribal library applicants face particular resource challenges in 
applying. Therefore, in addition to existing Tribal training materials, 
the Commission directs USAC, in coordination with ONAP and WCB, to 
develop training materials targeting Tribal libraries that may be 
provided during Tribal-specific outreach, as well as to its federal 
partners, like the Institute of Museum and Library Services, to build 
awareness and provide information about how to apply before the close 
of the funding year 2022 application filing window. In creating these 
targeted outreach goals, the Commission directs USAC to develop 
training materials focused on first-time E-Rate library applicants and 
to distribute these materials at national, regional, or local Tribal or 
library conferences. The Commission also directs ONAP and WCB to 
undertake efforts to coordinate with organizations like the ALA, ATALM, 
the American Indian Library Association and the Chief Officers of the 
State Library Agencies to spread awareness in the current and upcoming 
funding years.
    10. Measuring Participation. Adopting these rule changes and 
targeting specific Tribal library outreach are important steps towards 
the Commission's goal of increasing participation and access to E-Rate 
support for Tribal libraries. The Commission also, consistent with the 
recommendation from the Government Accountability Office in 2016, seeks 
to determine whether the Commission is successfully achieving the E-
Rate program's goals, including ensuring affordable access to high-
speed broadband sufficient to support robust connectivity for all 
libraries and making the program's processes fast, simple, and 
efficient. To do so, the Commission now adopts new measures for these 
two goals by specifically measuring participation of Tribal libraries 
in future funding years and the speed of processing Tribal library 
applications, and the Commission directs USAC to measure progress 
towards achieving the Commission's program goals. By creating specific 
Tribal library participation performance measures, the Commission can 
monitor performance of the E-Rate program over time and assess whether 
the Commission's rules, policies, and outreach need to be revisited to 
draw more Tribal library applicants into the program.
    11. Other Issues Raised. The importance of this rule clarification, 
combined with the E-Rate program's funding year calendar--which 
generally accepts funding applications during the first quarter of the 
calendar year for the upcoming school year--make speedy action 
critical. Therefore, to ensure these rule changes are effective before 
the close of the funding year 2022 E-Rate application filing window, 
the Commission declines to address several of the issues raised by 
comments to the Tribal Libraries Notice of Proposed Rulemaking (NPRM), 
86 FR 57097, October 14, 2021, regarding the E-Rate program at this 
time. The Commission appreciates the many comments raising broader 
issues with the E-Rate program and look forward to revisiting these 
issues.

III. Procedural Matters

    12. Final Regulatory Flexibility Analysis. As required by the 
Regulatory Flexibility Act of 1980, as amended (RFA), the Commission 
included an Initial Regulatory Flexibility Analysis (IRFA) of the 
possible significant

[[Page 8207]]

economic impact on a substantial number of small entities by the 
policies and rules proposed in the Schools and Libraries Universal 
Service Support Mechanism notice of proposed rulemaking, Tribal 
Libraries NPRM. The Commission sought written public comment on the 
proposals in the Tribal Libraries NPRM, including comment on the IRFA. 
The Commission did not receive any relevant comments in response to 
this IRFA. This Final Regulatory Flexibility Analysis (FRFA) conforms 
to the RFA.

A. Need for, and Objectives of, the Report and Order

    13. The Commission is required by Section 254 of the Communications 
Act of 1934, as amended, to promulgate rules to implement the universal 
service provisions of Section 254. On May 8, 1997, the Commission 
adopted rules to reform its system of universal service support 
mechanisms so that universal service is preserved and advanced as 
markets moved toward competition. Specifically, under the schools and 
libraries universal service support mechanism, also known as the E-Rate 
program, eligible schools, libraries, and consortia that include 
eligible schools and libraries may receive discounts for eligible 
telecommunications services, internet access, and internal connections.
    14. Taking steps to close the digital divide is a top priority for 
the Commission. The E-Rate program provides a vital source of support 
to schools and libraries, ensuring that students and library patrons 
across the nation have access to high-speed broadband and essential 
communications services. In this document, the Commission updates the 
E-Rate program rules to be consistent with the amended Library Services 
and Technology Act (LSTA), and clarify that Tribal libraries are 
eligible to apply for and receive E-Rate funding.

B. Summary of Significant Issues Raised by Public Comments in Response 
to the IRFA

    15. There were no comments filed that specifically address the 
rules and policies proposed in the IRFA.

C. Response to Comments by the Chief Counsel for Advocacy of the Small 
Business Administration

    16. Pursuant to the Small Business Jobs Act of 2010, which amended 
the RFA, the Commission is required to respond to any comments filed by 
the Chief Counsel of the Small Business Administration (SBA), and to 
provide a detailed statement of any change made to the proposed rule(s) 
as a result of those comments. The Chief Counsel did not file any 
comments in response to the proposed rule(s) in this proceeding.

D. Description and Estimate of the Number of Small Entities to Which 
the Rules Will Apply

    17. 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).
    18. Small Businesses, Small Organizations, Small Governmental 
Jurisdictions. The Commission's actions, over time, may affect small 
entities that are not easily categorized at present. The Commission 
therefore describes here, at the outset, three broad groups of small 
entities that could be directly affected herein. First, while there are 
industry specific size standards for small businesses that are used in 
the regulatory flexibility analysis, according to data from the SBA's 
Office of Advocacy, in general a small business is an independent 
business having fewer than 500 employees. These types of small 
businesses represent 99.9% of all businesses in the United States, 
which translates to 30.7 million businesses.
    19. Next, the type of small entity described as a ``small 
organization'' is generally ``any not-for-profit enterprise which is 
independently owned and operated and is not dominant in its field.'' 
The Internal Revenue Service (IRS) uses a revenue benchmark of $50,000 
or less to delineate its annual electronic filing requirements for 
small exempt organizations. Nationwide, for tax year 2018, there were 
approximately 571,709 small exempt organizations in the U.S. reporting 
revenues of $50,000 or less according to the registration and tax data 
for exempt organizations available from the IRS.
    20. Finally, the small entity described as a ``small governmental 
jurisdiction'' is defined generally as ``governments of cities, 
counties, towns, townships, villages, school districts, or special 
districts, with a population of less than fifty thousand.'' U.S. Census 
Bureau data from the 2017 Census of Governments indicates that there 
were 90,075 local governmental jurisdictions consisting of general 
purpose governments and special purpose governments in the United 
States. Of this number there were 36,931 general purpose governments 
(county, municipal and town or township) with populations of less than 
50,000 and 12,040 special purpose governments--independent school 
districts with enrollment populations of less than 50,000. Accordingly, 
based on the 2017 U.S. Census of Governments data, the Commission 
estimates that at least 48,971 entities fall into the category of 
``small governmental jurisdictions.''
1. Schools and Libraries
    21. As noted, a ``small entity'' includes non-profit and small 
government entities. 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 defined 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. A library includes 
``(1) a public library, (2) a public elementary school or secondary 
school library, (3) an academic library, (4) a research library, . . . 
. and (5) a private library, but only if the state in which such 
private library is located determines that the library should be 
considered a library for the purposes of this definition.'' The rule 
changes adopted in this document update the definition of library to 
add Tribal libraries. 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 for-profit, elementary 
and secondary schools and libraries having $6 million or less in annual 
receipts as small entities. In funding year 2017, approximately 103,699 
schools and 11,810 libraries received funding under the schools and 
libraries universal service mechanism. Although the Commission is 
unable to estimate with precision the number of these entities that 
would qualify as small entities under SBA's size standard, the 
Commission estimates that fewer than 103,699 schools and 11,810 
libraries

[[Page 8208]]

might be affected annually by its action, notwithstanding the fact that 
more Tribal libraries may be encouraged to apply for funding under the 
rule change in the Report and Order.
2. Telecommunications Service Providers
    22. Wired Telecommunications Carriers. The U.S. Census Bureau 
defines this industry as ``establishments primarily engaged in 
operating and/or providing access to transmission facilities and 
infrastructure that they own and/or lease for the transmission of 
voice, data, text, sound, and video using wired communications 
networks. Transmission facilities may be based on a single technology 
or a combination of technologies. Establishments in this industry use 
the wired telecommunications network facilities that they operate to 
provide a variety of services, such as wired telephony services, 
including voice over internet protocol (VoIP) services, wired (cable) 
audio and video programming distribution, and wired broadband internet 
services. By exception, establishments providing satellite television 
distribution services using facilities and infrastructure that they 
operate are included in this industry.'' The SBA has developed a small 
business size standard for Wired Telecommunications Carriers, which 
consists of all such companies having 1,500 or fewer employees. U.S. 
Census Bureau data for 2012 shows that there were 3,117 firms that 
operated that year. Of this total, 3,083 operated with fewer than 1,000 
employees. Thus, under this size standard, the majority of firms in 
this industry can be considered small.
    23. All Other Telecommunications. The ``All Other 
Telecommunications'' category is comprised of establishments primarily 
engaged in providing specialized telecommunications services, such as 
satellite tracking, communications telemetry, and radar station 
operation. This industry also includes establishments primarily engaged 
in providing satellite terminal stations and associated facilities 
connected with one or more terrestrial systems and capable of 
transmitting telecommunications to, and receiving telecommunications 
from, satellite systems. Establishments providing internet services or 
voice over internet protocol (VoIP) services via client-supplied 
telecommunications connections are also included in this industry. The 
SBA has developed a small business size standard for ``All Other 
Telecommunications'', which consists of all such firms with annual 
receipts of $35 million or less. For this category, U.S. Census Bureau 
data for 2012 shows that there were 1,442 firms that operated for the 
entire year. Of those firms, a total of 1,400 had annual receipts less 
than $25 million and 15 firms had annual receipts of $25 million to 
$49, 999,999. Thus, the Commission estimates that the majority of ``All 
Other Telecommunications'' firms potentially affected by its action can 
be considered small.
    24. Wireless Telecommunications Carriers (except Satellite). This 
industry comprises establishments engaged in operating and maintaining 
switching and transmission facilities to provide communications via the 
airwaves. Establishments in this industry have spectrum licenses and 
provide services using that spectrum, such as cellular services, paging 
services, wireless internet access, and wireless video services. The 
appropriate size standard under SBA rules is that such a business is 
small if it has 1,500 or fewer employees. For this industry, U.S. 
Census Bureau data for 2012 shows that there were 967 firms that 
operated for the entire year. Of this total, 955 firms employed fewer 
than 1,000 employees and 12 firms employed 1,000 employees or more. 
Thus under this category and the associated size standard, the 
Commission estimates that the majority of Wireless Telecommunications 
Carriers (except Satellite) are small entities.
    25. Wireless Telephony. Wireless telephony includes cellular, 
personal communications services, and specialized mobile radio 
telephony carriers. The closest applicable SBA category is Wireless 
Telecommunications Carriers (except Satellite). Under the SBA small 
business size standard, a business is small if it has 1,500 or fewer 
employees. For this industry, U.S. Census Bureau data for 2012 shows 
that there were 967 firms that operated for the entire year. Of this 
total, 955 firms had fewer than 1,000 employees and 12 firms had 1,000 
employees or more. Thus under this category and the associated size 
standard, the Commission estimates that a majority of these entities 
can be considered small. According to Commission data, 413 carriers 
reported that they were engaged in wireless telephony. Of these, an 
estimated 261 have 1,500 or fewer employees and 152 have more than 
1,500 employees. Therefore, based on Commission data, more than half of 
these entities can be considered small.
3. Internet Service Providers (ISPs)
    26. Internet Service Providers (Broadband). Broadband internet 
service providers include wired (e.g., cable, digital subscriber line 
(DSL)) and VoIP service providers using their own operated wired 
telecommunications infrastructure fall in the category of Wired 
Telecommunication Carriers. Wired Telecommunications Carriers are 
comprised of establishments primarily engaged in operating and/or 
providing access to transmission facilities and infrastructure that 
they own and/or lease for the transmission of voice, data, text, sound, 
and video using wired telecommunications networks. Transmission 
facilities may be based on a single technology or a combination of 
technologies. The SBA size standard for this category classifies a 
business as small if it has 1,500 or fewer employees. U.S. Census 
Bureau data for 2012 shows that there were 3,117 firms that operated 
that year. Of this total, 3,083 operated with fewer than 1,000 
employees. Consequently, under this size standard the majority of firms 
in this industry can be considered small.
    27. Internet Service Providers (Non-Broadband). internet access 
service providers such as Dial-up internet service providers, VoIP 
service providers using client-supplied telecommunications connections 
and internet service providers using client-supplied telecommunications 
connections (e.g., dial-up ISPs) fall in the category of All Other 
Telecommunications. The SBA has developed a small business size 
standard for All Other Telecommunications which consists of all such 
firms with gross annual receipts of $35 million or less. For this 
category, U.S. Census Bureau data for 2012 shows that there were 1,442 
firms that operated for the entire year. Of these firms, a total of 
1,400 had gross annual receipts of less than $25 million. Consequently, 
under this size standard a majority of firms in this industry can be 
considered small.
4. Vendors of Internal Connections
    26. Vendors of Infrastructure Development or Network Buildout. The 
Commission has not developed a small business size standard 
specifically directed toward manufacturers of network facilities. There 
are two applicable SBA categories in which manufacturers of network 
facilities could fall and each have different size standards under the 
SBA rules. The SBA categories are ``Radio and Television Broadcasting 
and Wireless Communications Equipment'' with a size standard of 1,250 
employees or less and ``Other Communications Equipment Manufacturing'' 
with a size standard of 750 employees or less.'' U.S. Census

[[Page 8209]]

Bureau data for 2012 shows that for Radio and Television Broadcasting 
and Wireless Communications Equipment firms 841 establishments operated 
for the entire year. Of that number, 828 establishments operated with 
fewer than 1,000 employees, and 7 establishments operated with between 
1,000 and 2,499 employees. For Other Communications Equipment 
Manufacturing, U.S. Census Bureau data for 2012 shows that 383 
establishments operated for the year. Of that number 379 operated with 
fewer than 500 employees and 4 had 500 to 999 employees. Based on this 
data, the Commission concludes that the majority of Vendors of 
Infrastructure Development or ``Network Buildout'' are small.
    27. Telephone Apparatus Manufacturing. This industry comprises 
establishments primarily engaged in manufacturing wire telephone and 
data communications equipment. These products may be stand-alone or 
board-level components of a larger system. Examples of products made by 
these establishments are central office switching equipment, cordless 
and wire telephones (except cellular), private branch exchange (PBX) 
equipment, telephone answering machines, local area network (LAN) 
modems, multi-user modems, and other data communications equipment, 
such as bridges, routers, and gateways. The SBA has developed a small 
business size standard for Telephone Apparatus Manufacturing, which 
consists of all such companies having 1,250 or fewer employees. U.S. 
Census Bureau data for 2012 shows that there were 266 establishments 
that operated that year. Of this total, 262 operated with fewer than 
1,000 employees. Thus, under this size standard, the majority of firms 
in this industry can be considered small.
    28. Radio and Television Broadcasting and Wireless Communications 
Equipment Manufacturing. This industry comprises establishments 
primarily engaged in manufacturing radio and television broadcast and 
wireless communications equipment. Examples of products made by these 
establishments are: Transmitting and receiving antennas, cable 
television equipment, global positioning system (GPS) equipment, 
pagers, cellular phones, mobile communications equipment, and radio and 
television studio and broadcasting equipment. The SBA has established a 
small business size standard for this industry of 1,250 employees or 
less. U.S. Census Bureau data for 2012 shows that 841 establishments 
operated in this industry in that year. Of that number, 828 
establishments operated with fewer than 1,000 employees, 7 
establishments operated with between 1,000 and 2,499 employees and 6 
establishments operated with 2,500 or more employees. Based on this 
data, the Commission concludes that a majority of manufacturers in this 
industry are small.

E. Description of Projected Reporting, Recordkeeping, and Other 
Compliance Requirements for Small Entities

    29. The rules adopted in the Report and Order will not result in 
modified reporting, recordkeeping, or other compliance requirements for 
small or large entities. In this document, the Commission updates the 
E-Rate program rules to make clear that Tribal libraries are eligible 
to apply for and receive E-Rate funding, as well as funding from the 
Emergency Connectivity Fund program. These changes will produce 
requirements that are equal to existing requirements, and the 
Commission does not believe small entities will have to hire attorneys, 
engineers, consultants, or other professionals in order to comply. 
Updating the E-Rate program rules to adopt the amended definition of 
library under the LSTA, for example, will clarify that Tribal libraries 
are eligible for support by statute. Moreover, this clarity may also 
alleviate some of the issues that Tribal libraries face when seeking E-
Rate support.

F. Steps Taken To Minimize the Significant Economic Impact on Small 
Entities, and Significant Alternatives Considered

    30. The RFA requires an agency to describe any significant, 
specifically small business, 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 or reporting requirements or timetables that take into 
account the resources available to small entities; (2) the 
clarification, consolidation, or simplification of compliance and 
reporting requirements under the rule for such small entities; (3) the 
use of performance rather than design standards; and (4) an exemption 
from coverage of the rule, or any part thereof, for such small 
entities.''
    31. In the Report and Order, the Commission has taken steps to 
minimize the economic impact on small entities with the rule changes 
that the Commission has adopted. Under the current E-Rate rules, only 
libraries eligible for assistance from a State library administrative 
agency under the 1996 version of the LSTA are eligible for E-Rate 
funding. Absent a rule change, Tribal libraries continue to face 
uncertainty about eligibility which leads to them being 
underrepresented among E-Rate applicants. The Commission has therefore 
updated the rules to add Tribal libraries to the definition of library, 
which may encourage Tribal libraries to apply for and receive E-Rate 
support. In addition, Tribal libraries will have less difficulty 
determining eligibility than they have in the past.

G. Report to Congress

    32. The Commission will send a copy of the Report and Order, 
including this FRFA, in a report to be sent to Congress and the 
Government Accountability Office pursuant to the Small Business 
Regulatory Enforcement Fairness Act of 1996. In addition, the 
Commission will send a copy of the Report and Order, including the 
FRFA, to the Chief Counsel for Advocacy of the Small Business 
Administration. A copy of the Report and Order and FRFA (or summaries 
thereof) will also be published in the Federal Register.
    33. Paperwork Reduction Act. This document does not contain 
proposed information collection(s) subject to the Paperwork Reduction 
Act of 1995 (PRA), Public Law 104-13. In addition, therefore, it does 
not contain any new or modified information collection burden for small 
business concerns with fewer than 25 employees, pursuant to the Small 
Business Paperwork Relief Act of 2002, Public Law 107-198, see 44 
U.S.C. 3506(c)(4).
    34. Congressional Review Act. The Commission has determined, and 
the Administrator of the Office of Information and Regulatory Affairs, 
Office of Management and Budget (OMB), concurs, that this rule is 
``non-major'' under the Congressional Review Act, 5 U.S.C. 804(2). The 
Commission will send a copy of the Report and Order to Congress and the 
Government Accountability Office pursuant to 5 U.S.C. 801(a)(1)(A).

IV. Ordering Clauses

    35. Accordingly, it is ordered that, pursuant to the authority 
contained in sections 1 through 3, 201-202, 254, and 303(r) of the 
Communications Act of 1934, as amended, 47 U.S.C. 151-153, 201-202, 
254, and 303(r), the Report and Order is adopted, and Sec. Sec.  54.500 
and 54.501(b)(1) of the Commission's rules, 47 CFR 54.500 and 
54.501(b)(1), are amended as set forth and such rule amendments shall 
be effective March 16, 2022.
    36. It is further ordered that the Commission's Consumer and 
Governmental Affairs Bureau, Reference Information Center, shall send a 
copy of

[[Page 8210]]

the Report and Order, including the Final Regulatory Flexibility 
Analysis, to the Chief Counsel for Advocacy of the Small Business 
Administration.
    37. It is further ordered that the Commission shall send a copy of 
the Report and Order in a report to be sent to Congress and the 
Government Accountability Office pursuant to the Congressional Review 
Act, see 5 U.S.C. 801(a)(1)(A).

Federal Communications Commission.
Katura Jackson,
Federal Register Liaison Officer.

Final Rules

    For the reasons set forth above, part 54 of title 47 of the Code of 
Federal Regulations is amended as follows:

PART 54--UNIVERSAL SERVICE

0
1. The authority for part 54 continues to read as follows:

    Authority: 47 U.S.C. 151, 154(i), 155, 201, 205, 214, 219, 220, 
229, 254, 303(r), 403, 1004, 1302, and 1601-1609, unless otherwise 
noted.


0
2. Amend Sec.  54.500 by revising the definition of ``Library'' to read 
as follows:


Sec.  54.500  Terms and definitions.

* * * * *
    Library. A ``library'' includes:
    (1) A public library;
    (2) A public elementary school or secondary school library;
    (3) A Tribal library;
    (4) An academic library;
    (5) A research library, which for the purpose of this section means 
a library that:
    (i) Makes publicly available library services and materials 
suitable for scholarly research and not otherwise available to the 
public; and
    (ii) Is not an integral part of an institution of higher education; 
and
    (6) A private library, but only if the state in which such private 
library is located determines that the library should be considered a 
library for the purposes of this definition.
* * * * *

0
3. Amend Sec.  54.501 by revising paragraph (b)(1) to read as follows:


Sec.  54.501  Eligible recipients.

* * * * *
    (b) * * *
    (1) Only libraries eligible for assistance from a State library 
administrative agency under the Library Services and Technology Act (20 
U.S.C. 9122) and not excluded under paragraph (b)(2) or (3) of this 
section shall be eligible for discounts under this subpart.
* * * * *
[FR Doc. 2022-03057 Filed 2-11-22; 8:45 am]
BILLING CODE 6712-01-P