2007 Comprehensive Review of Universal Service Fund Management, Administration and Oversight Federal Register Notice

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Federal Register / Vol. 72, No. 184 / Monday, September 24, 2007 / Rules and Regulations

services, and other general services. The
following is the minimum TRDP
covered dental benefit:
(i) Diagnostic services.
(A) Clinical oral examinations.
(B) Radiographs and diagnostic
imaging.
(C) Tests and laboratory examinations.
(ii) Preventive services.
(A) Dental prophylaxis.
(B) Topical fluoride treatment (office
procedure).
(C) Sealants.
(D) Other preventive services.
(E) Space maintenance.
(iii) Restorative services.
(A) Amalgam restorations.
(B) Resin-based composite
restorations.
(C) Other restorative services.
(iv) Endodontic services.
(A) Pulp capping.
(B) Pulpotomy and pulpectomy.
(C) Root canal therapy.
(D) Apexification and recalcification
procedures.
(E) Apicoectomy and periradicular
services.
(F) Other endodontic procedures.
(v) Periodontic Services.
(A) Surgical services.
(B) Periodontal services.
(vi) Oral surgery.
(A) Extractions.
(B) Surgical extractions.
(C) Alveoloplasty.
(D) Biopsy.
(E) Other surgical procedures.
(vii) Other general services.
(A) Palliative (emergenery) treatment
of dental pain.
(B) Therapeutic drug injection.
(C) Other drugs and/or medicaments.
(D) Treatment of postsurgical
complications.
*
*
*
*
*
(3) Alternative course of treatment
policy. The Director, TRICARE
Management Activity, or designee, may
establish, in accordance with generally
accepted dental benefit practices, an
alternative course of treatment policy
which provides reimbursement in
instances where the dentist and TRDP
enrollee select a more expensive service,
procedure, or course of treatement than
in customarily provided. * * *
*
*
*
*
*
(g) Maximum coverage amounts. Each
enrollee is subject to an annual
maximum coverage amount for nonorthodontic dental benefits and, if an
orthodontic benefit is offered, a lifetime
maximum coverage amount for
orthodontics as established by the
Director, TRICARE Management
Activity, or designee.
*
*
*
*
*

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Dated: September 14, 2007.
L.M. Bynum,
Alternate OSD Federal Register Liaison
Officer, Department of Defense.
[FR Doc. 07–4658 Filed 9–21–07; 8:45 am]
BILLING CODE 5001–06–M

DEPARTMENT OF HOMELAND
SECURITY
Coast Guard

Correction Instructions
In rule FR Doc. 07–4357 published on
September 5, 2007 (72 FR 50877), make
the following corrections:
1. On page 50877, in the first column,
in line 17, remove the words ‘‘Waapa
Road’’ and add, in their place, the words
‘‘the jetty access road (commonly
known as Jetty Road)’’.
2. On page 50877, in the second
column, in line 21, remove ‘‘533’’ and
add, in its place, ‘‘553’’.
§ 165.T14–160

33 CFR Part 165

3. On page 50879, in the first line of
the second column, in § 165.T14–160(a),
remove the words ‘‘Waapa Road’’ and
add, in their place, the words ‘‘the jetty
access road (commonly known as Jetty
Road)’’.

■

[Docket No. USCG–2007–29153]
RIN 1625–AA87

Security Zone; Hawaii Superferry
Arrival/Departure, Nawiliwili Harbor,
Kauai, HI
Coast Guard, DHS.
Temporary final rule; additional
correction.

AGENCY:
ACTION:

SUMMARY: This document corrects a
typographical error in a U.S. Code
section number and corrects a reference
to an access road on the jetty south of
Nawiliwili Park in a temporary final
rule entitled ‘‘Security Zone; Hawaii
Super Ferry Arrival/Departure,
Nawiliwili Harbor, Kauai, Hawaii’’ that
was published September 5, 2007, in the
Federal Register.

These corrections are effective
September 24, 2007.

DATES:

FOR FURTHER INFORMATION CONTACT:

Lieutenant (Junior Grade) Jasmin Parker,
U.S. Coast Guard Sector Honolulu at
808–842–2673.
On
September 5, 2007, the Coast Guard
published a temporary final rule
entitled ‘‘Security Zone; Hawaii Super
Ferry Arrival/Departure, Nawiliwili
Harbor, Kauai, Hawaii’’ in the Federal
Register (72 FR 50877). In that
document references were made to
Waapa Road being included in the
security zone covering land on the jetty
south of Nawiliwili Park. The road in
the zone is not named ‘‘Waapa Road’’;
instead, that jetty access road is
commonly known as ‘‘Jetty Road.’’ Also,
when citing to the authority for making
the rule effective less than 30 days after
publication, instead of citing to 5 U.S.C.
553(d)(3), because of a typographic
error, that section was cited as ‘‘533.’’
This document corrects those errors. A
previous correction document for this
rule was published September 13, 2007
(72 FR 52282).

SUPPLEMENTARY INFORMATION:

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Dated: September 19, 2007.
Stefan G. Venckus,
Chief, Office of Regulations and
Administrative Law, United States Coast
Guard.
[FR Doc. E7–18783 Filed 9–21–07; 8:45 am]
BILLING CODE 4910–15–P

FEDERAL COMMUNICATIONS
COMMISSION
47 CFR Part 54
[WC Docket No. 05–195, CC Docket No. 96–
45, CC Docket No. 02–6, WC Docket No.
02–60, WC Docket No. 03–109, CC Docket
No. 97–21; FCC 07–150]

Measures To Safeguard the Universal
Service Fund From Waste, Fraud, and
Abuse as Well as Measures To
Improve the Management,
Administration, and Oversight of the
Universal Service Fund
Federal Communications
Commission.
ACTION: Final rule.
AGENCY:

SUMMARY: In the Report and Order, the
Commission adopted measures to
safeguard the Universal Service Fund
(‘‘USF’’) from waste, fraud, and abuse.
The intended effect of the measures
adopted is to improve the management,
administration, and oversight of the
USF.

Effective October 24, 2007 except
for the amendments to §§ 54.202,
54.417, 54.619, and 54.706, which
contain information collection
requirements that are not effective until
approved by the Office of Management
and Budget. The FCC will publish a
document in the Federal Register
announcing the effective date for those
sections. Additionally, the Commission
will send, as a minor rule, a copy of this

DATES:

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Federal Register / Vol. 72, No. 184 / Monday, September 24, 2007 / Rules and Regulations
Report and Order to Congress and the
Government Accountability Office
pursuant to the Congressional Review
Act, 5 U.S.C. 801(a)(1)(A).
FOR FURTHER INFORMATION CONTACT:

Mika Savir at (202) 418–0384,
[email protected], Office of Managing
Director, Federal Communications
Commission, 445 12th Street, SW.,
Washington, DC 20554. In addition, a
copy of any comments on the
Paperwork Reduction Act information
collection requirements contained
herein should be submitted to Leslie
Smith, Federal Communications
Commission, 445 12th Street, SW.,
Washington, DC 20554, or via the
Internet to [email protected].
This is a
summary of the Commission’s Report
and Order adopted August 22, 2007 and
released August 29, 2007. The full text
of this Report and Order is available for
public inspection on the Commission’s
Internet site at http://www.fcc.gov. It is
also available for inspection and
copying during regular business hours
in the FCC Reference Center (Room CY–
A257), 445 12th Street, SW.,
Washington, DC 20554. The full text of
this document also may be purchased
from the Commission’s duplication
contractor, Best Copy and Printing Inc.,
Portals II, 445 12th St., SW., Room CY–
B402, Washington, DC 20554; telephone
(202) 488–5300; fax (202) 488–5563; email [email protected].
The Universal Service Fund (‘‘USF’’)
was created by Congress in 1996 as part
of its passage of the
Telecommunications Act of 1996. The
purpose of the fund is to help provide
affordable telecommunications services
to consumers, libraries, rural health care
facilities, and schools. Today, the USF
consists of four programs: (1) The
universal service mechanism for highcost areas, providing financial support
to eligible telecommunications carriers
serving high-cost areas; (2) the universal
service mechanism for schools and
libraries, providing for discounted
services (telecommunications services,
Internet access, and internal
connections) to eligible schools and
libraries; (3) the universal service
mechanism for assisting low-income
consumers with discounted installation
and monthly telephone services; and (4)
the universal service mechanism for
rural health care, providing discounted
telecommunications and information
services to rural health care providers.
These funds are managed, on behalf of
the Commission, by the Universal
Service Administrative Company
(‘‘USAC’’ or ‘‘Administrator’’).

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The goal of the proceeding, initiated
on June 14, 2005, was to improve these
four universal service programs, to make
these programs more effective and
efficient, and to continue the
Commission’s efforts to deter waste,
fraud, and abuse of Universal Service
funds.
In conducting the proceeding, input
was sought from all interested parties,
including USF participants. Eighty-four
comments were received and
considered as the Commission came to
its decisions on how to improve the
management, administration, and
oversight of the USF.
Synopsis
On June 14, 2005, the Commission
initiated a broad inquiry into the
management, administration, and
oversight of the USF. That inquiry asked
whether: (a) The Commission should
adopt rules requiring timely payments
and assessing penalties or interest for
late payments to the USF programs; (b)
the Commission should institute a
targeted independent audit requirement
to safeguard the USF programs from
waste, fraud, and abuse; (c) the
Commission should put in place
document retention requirements for
applicants and service providers; (d) the
Commission should establish time
limits for making determinations about
whether violations have occurred
among USF program recipients; (e) the
Commission should adopt specific
sanctions to address instances in which
a USF beneficiary may not have used
funds in accordance with program
procedures; (f) the Commission should
institute aggressive debarment
procedures for anyone who defrauds or
otherwise deliberately harms the
integrity of the USF programs; and (g)
the Commission should require USAC
to report on certain efficiency,
effectiveness, accuracy, and timeliness
performance measures.
(a) Decision regarding timely
payments—since the USF is supported
by contributions from
telecommunications carriers providing
interstate services as well as
contributions by certain providers of
interstate telecommunications,
including providers of Interconnected
Voice over Internet Protocol
(‘‘Interconnected VoIP’’) services, the
Commission determined that it should
adopt tougher rules requiring timely
payments and assessing penalties or
interest for late payments.
Thus, the Commission decided that it
would replace the existing late-filing
charge, as well as the late-payment
charges; with a new ‘‘rate of interest’’
charge that reflects the consequences of

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failing to pay in a timely manner.
Henceforth, if a contributor is more than
30 days delinquent in paying its
contribution to the USF, USAC shall
assess a single rate of interest, that will
apply to the debt from the date of the
delinquency until date of payment (or in
the case of a promissory note the date
of maturity of the note), at an annual
rate equal to the U.S. prime rate on the
date of delinquency plus 3.5 percent.
Likewise, if a contributor is more than
30 days delinquent in filing an FCC
Form 499–A or 499–Q, the USAC
Administrator shall also use the U.S.
prime rate plus 3.5 percent in assessing
a remedial sanction. The sanction will
be the greater of $100 per month or the
amount derived when a rate of interest
equal to the U.S. prime rate plus 3.5
percent is assessed on the amount due
per the USAC Administrator’s invoice
or calculations (if no invoice was
provided).
In the event a contributor company is
delinquent in filing an FCC Form 499–
A or 499–Q, and within the 30 day
period following delinquency, is also
delinquent in paying its contribution,
interest will be assessed on a single
greater amount from the date of the first
delinquency.
USAC is now required to add
information to the monthly invoice sent
to contributors and in debt collection
correspondence to explain the
applicable sanction and administrative
charges for late payment.
(b) Decision regarding independent
audits—audits are a tool the
Commission and USAC use to ensure
program integrity and to detect
violations of the Act or the
Commission’s rules and to deter waste,
fraud, and abuse.
Current Commission rules already
authorize the USAC Administrator to
conduct audits of contributors to the
universal service support mechanisms.
In addition, the Commission’s OIG
annually oversees more than 400 audits
of contributors and beneficiaries of the
high-cost, low-income, rural health care,
and schools and libraries programs.
The Commission has decided that
additional audit requirements are
unnecessary at this time. The
Commission will closely watch the data
emerging from existing audits to
determine if additional or targeted
audits should be conducted in the
future.
(c) Decision regarding document
retention—proper record-keeping helps
prevent waste, fraud, and abuse. Proper
record-keeping additionally protects
applicants and service providers in the
event of vendor disputes. The
Commission concluded that, following

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Federal Register / Vol. 72, No. 184 / Monday, September 24, 2007 / Rules and Regulations

OMB approval of these Paperwork
Reduction Act information collection
requirements, the following recordkeeping will be required:
(1) High-cost program—the
Commission will require recipients of
universal service high-cost support to
retain, for five years, all records that
they may require to demonstrate to
auditors that the support they received
was consistent with the
Communications Act of 1934, as
amended, and the Commission’s rules.
These records must include the
following: Data supporting line count
filings; historical customer records;
fixed asset property accounting records;
general ledgers; invoice copies for the
purchase and maintenance of
equipment; maintenance contracts for
the upgrade or equipment; and any
other relevant documentation. The
Commission also clarified that
beneficiaries must make available all
such documents and records that
pertain to them, including those of
NECA, contractors, and consultants
working on behalf of the beneficiaries to
the Commission’s OIG, to the USAC
Administrator, and to their auditors. To
the extent other rules or any other law
require or necessitate documents be
kept for longer periods of time (e.g., to
support the account balances in the Part
32 Uniform System of Accounts,
continuing property records, pole
attachment calculations, plant
equipment age, cost, or useful life,
depreciation rates), the Commission did
not alter, amend, or supplant such rules
or laws.
(2) Low-income program—with
respect to the Lifeline and Link-Up
programs, the Commission concluded
that a ‘‘service-plus three’’ document
retention requirement will be retained.
The Commission did not believe it to be
unnecessarily burdensome to require
participating service providers to retain
eligibility-determination records for the
time period during which the service is
provided and then for three years after
the service is terminated. Additionally,
the Commission removed the clause that
waived the document retention
requirement after an audit is completed.
The Commission also clarified that
beneficiaries must make available all
documents and records that pertain to
them, including those of contractors and
consultants working on their behalf, to
the Commission’s OIG, to the USAC
Administrator, and to auditors working
on their behalf.
(3) Rural Health Care and Schools and
Libraries programs—the Commission
decided to retain the five year
requirement for schools and libraries to
retain records evidencing that the

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funding they received was proper. The
Commission also decided to expand this
requirement to rural health care service
providers. This Report and Order
additionally clarified that beneficiaries
must make available all documents and
records that pertain to them, including
those of contractors and consultants
working on their behalf, to the
Commission’s OIG, to the USAC
Administrator, and to their auditors.
(4) Contributors—the Commission
also required contributors to the USF to
retain all documents and records
necessary to demonstrate to auditors
that their contributions were made in
compliance with the program rules,
assuming that the audits are conducted
within five years of such contribution.
The Commission clarified that
contributors must make available all
documents and records that pertain to
them, including those of contractors and
consultants working on their behalf, to
the Commission’s OIG, to the USAC
Administrator, and to their auditors.
These documents and records should
include without limitation the
following: financial statements and
supporting documentation; accounting
records; historical customer records;
general ledgers; and any other relevant
documentation.
(d) Decision regarding time limits for
determining violations—the
Commission will adopt a five-year
administrative limitations period for all
funds. During these five years the
Commission or the USAC Administrator
may determine that a violation has
occurred among recipients of the funds.
This five year limit, which currently
applies only to recipients of the schools
and libraries fund, will now apply to
recipients of all USF programs. This
time period appropriately balances the
beneficiary’s need for finality with the
Commission statutory obligation to
safeguard the USF programs from waste,
fraud, and abuse. This five-year time
period is not a statute of limitations.
(e) Decision regarding sanctions for
misuse of funds—consistent with a prior
Commission conclusion regarding the
schools and libraries program, the
Commission determined that funds
disbursed from the high-cost, lowincome, and rural health care support
mechanisms that are disbursed or used
in violation of a Commission rule that
implements the statute or a substantive
program goal should be recovered. The
Commission has determined that
sanctions, including enforcement
action, are appropriate in cases of waste,
fraud, and abuse, but not in cases of
clerical or ministerial errors.
(f) Decision regarding debarment for
actions that harm the integrity of the

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program—there have been several wellpublicized cases of fraud against the
schools and libraries program. In order
to prevent further fraud, and to prevent
bad actors from continuing to
participate in this program, the
Commission earlier adopted a three year
debarment rule for the schools and
libraries program that suspends and
debar parties who are convicted of
criminal violations or held civilly liable
for acts arising out of participation in
the schools and libraries program,
absent extraordinary circumstances.
The Commission now applies these
debarment procedures to all Universal
Service programs. Henceforth, any party
convicted of or held civilly liable for the
commission or attempted commission of
fraud and similar offenses will be
debarred from participation in the
program for a period of three years.
Additionally, the Commission and the
USAC Administrator will publish the
names of these debarred entities on their
respective Internet websites. The USAC
Administrator will also provide a link
from its website to the Bureau and
Commission debarment orders.
(g) Decision regarding performance
measures—following the requirements
of the Government Performance and
Results Act, the Commission established
the following performance measures:
(1) Schools and Libraries—since
nearly 100 percent connectivity to the
Internet already exists for public schools
and the Commission is not in a position
to evaluate either the impact of schools
and libraries funds on connectivity as
compared to other funding sources or
the impact of Internet connectivity on
educational outcomes, the Commission
decided on group of policy,
productivity, and efficiency
performance measures.
In the policy arena, the USAC
Administrator is to collect information
during interviews with schools and
libraries about the different types or
capacities of broadband services that are
supported through the school and
libraries program. The Commission
further requires the USAC
Administrator to work with the Wireline
Competition Bureau (‘‘Bureau’’) to
modify the relevant FCC forms or to
create additional questions for program
participants to more accurately
determine how schools and libraries
connect to the Internet and their precise
levels of connectivity. The collections of
such additional information, after
approval by OMB under the terms of the
Paperwork Reduction Act, will enable
the Commission to identify the specific
products, services, and capabilities (e.g.,
T–1s, DS–3s) at specific quantities

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Federal Register / Vol. 72, No. 184 / Monday, September 24, 2007 / Rules and Regulations
provided by the schools and libraries
program.
The Commission also requires the
USAC Administrators to cross-reference
participating school districts with a full
listing of school districts to identify the
public schools that are not participating
in the schools and libraries program in
order to focus outreach on these
schools. The USAC Administrator
should determine why these schools
and libraries choose not to participate
and assist them, if necessary, in the
beginning of the application process.
The USAC Administrator should report
its conclusions to the Commission
annually.
In the productivity arena, the
Commission is requiring the USAC
Administrator to provide data, on a
funding year basis, reporting the
number of applications and funding
request numbers (‘‘FRNs’’) submitted,
the number of applications and FRNs
rejected, the number of applications and
FRNs granted, and the processing time
for applications and FRNs. The USAC
Administrator is also required to
document the amount of time it takes to
make a payment to the service provider,
from the date the proper form is
submitted. The Commission recognizes
that the USAC Administrator could
reject more invoices in order to improve
the amount of time it takes to make
payments. For this reason, the
Commission also requires the USAC
Administrator to provide the number of
paid invoices and the number of
rejected invoices.
In the efficiency arena, the
Commission is directing the USAC
Administrator to determine the
percentage of appeals that are resolved
by the USAC Administrator within 90
days from the date of appeal. The USAC
Administrator will also provide
information on how long it takes to
process 50 percent, 75 percent, and 100
percent of the pending appeals from the
schools and libraries division.
(2) Low-income—the Commission
currently lacks the baseline information
necessary to make an assessment of
whether the program is accomplishing
its goal. Therefore the Commission has
directed the USAC Administrator to
provide the following baseline
information: (a) Number of program
beneficiaries (i.e., carriers); (b) number
of low-income customers for which each
carrier receives low-income support; (c)
number of connections supported; (d)
time to process support payments and
authorize disbursements; (e) average
(mean) dollar amount awarded and
median dollar amount awarded, per
carrier; and (f) total amount disbursed.
This baseline information will assist the

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Commission in setting performance
measures in the future.
In addition, to further expand its
baseline knowledge, the Commission
requires the USAC Administrator to
provide the Commission with specified
information from a survey that is taken
by service providers of the customers in
the Lifeline benefits program. The
information to be provided to the
Commission includes: (a) The number
of Lifeline customers surveyed by the
service providers; (b) the Number of
Lifeline customers found to be
ineligible; and (c) the Number of
Lifeline customers who did not respond
to the service provider survey. The
Commission may revisit this issue at a
later time and request further
information from the Lifeline survey.
(3) Rural Health Care—the
Commission requires the USAC
Administrator to provide the following
performance information: time to
process applications; time to pay
invoices; and time to determine appeals.
These data will provide a baseline
against which subsequent goals can be
implemented in the future.
Additionally, except for the rural
health care pilot program, the USAC
Administrator is to provide the
Commission with specified productivity
and efficiency performance data in
regard to its application processing,
invoice processing, and handling of
appeals.
(4) High-cost—because it does not
have sufficient data at this time to
establish performance goals; the
Commission directs the USAC
Administrator to provide baseline
information against which goals can be
implemented in the future. The
information to be provided includes the:
(a) Number of program beneficiaries per
study area and per wire center; (b)
number of lines, per study area and per
wire center (c) number of requests for
support payments; (d) mean dollar
amount of support and median dollar
amount of support for each line; (d) total
amount disbursed; (e) time to process 50
percent, 75 percent, and 100 percent of
the high-cost support requests and
authorize disbursements; and (f) rates of
telephone subscribership in urban
versus rural areas.
(5) USAC Administrative Performance
Measures—the Commission additionally
adopted a requirement that the USAC
Administrator provide some general, not
program-specific, performance data. The
required performance data include: (a)
The amount of payments determined to
be improper payments and the error rate
(i.e., the percentage of total payments
that are determined to be improper
payments); (b) the amount of improper

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54217

payments subsequently recovered from
the beneficiaries by the USAC
Administrator; (c) data on USAC
administrative costs, per program, and
general administrative costs (not
program-specific); (d) the amount of
payments determined to be improper
payments and the error rate (i.e., the
percentage of total payments that are
determined to be improper payments),
per program; (e) the amount of improper
payments subsequently recovered from
the beneficiaries by the USF
Administrator, per program; (f) the
number of corrections or true-ups due to
errors by the USAC Administrator, per
program; (g) the number of USF
contributors; number of USF
contributors 90 days or more delinquent
in payments; (h) the total amount of
delinquencies or past due payments; (i)
the total number of contributors
assessed late fees or penalties; (j) the
total amount of late fees or penalties; (k)
the total amount of contributions to the
USF; and (l) the total amount of
disbursements.
List of Subjects in 47 CFR Part 54
Communications common carriers,
Health facilities, Infants and children,
Libraries, Reporting and recordkeeping
requirements, Schools,
Telecommunications, Telephone.
Federal Communications Commission.
Marlene H. Dortch,
Secretary.

Final Rules
For the reasons discussed in the
preamble, the Federal Communications
Commission amends 47 CFR part 54 as
follows:
■ 1. The authority citation for part 54
continues to read as follows:
■

Authority: Secs. 5, 48 Stat. 1068, as
amended; 47 U.S.C. 155.

2. Section 54.202 is amended by
adding paragraph (e) to read as follows:

■

§ 54.202 Additional requirements for
Commission designation of eligible
telecommunications carriers.

*

*
*
*
*
(e) All eligible telecommunications
carriers shall retain all records required
to demonstrate to auditors that the
support received was consistent with
the universal service high-cost program
rules. These records should include the
following: data supporting line count
filings; historical customer records;
fixed asset property accounting records;
general ledgers; invoice copies for the
purchase and maintenance of
equipment; maintenance contracts for
the upgrade or equipment; and any
other relevant documentation. This

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documentation must be maintained for
at least five years from the receipt of
funding.
■ 3. Section 54.417(a) is amended by
revising the undesignated paragraph to
read as follows:
§ 54.417

Recordkeeping requirements.

(a) * * *
Notwithstanding the preceding
sentence, eligible telecommunications
carriers must maintain the
documentation required in § § 54.409(d)
and 54.410(b)(3) for as long as the
consumer receives Lifeline service from
that eligible telecommunications carrier
*
*
*
*
*
■ 4. Redesignate § 54.521 as § 54.8 and
revise pargraphs (a)(1), (a)(5), (a)(7), (c),
(d), (e)(2)(i), (e)(3), (e)(4), and (g) to read
as follows:

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§ 54.8 Prohibition on participation:
Suspension and debarment.

(a) Definitions—(1) Activities
associated with or related to the schools
and libraries support mechanism, the
high-cost support mechanism, the rural
health care support mechanism, and the
low-income support mechanism. Such
matters include the receipt of funds or
discounted services through one or
more of these support mechanisms, or
consulting with, assisting, or advising
applicants or service providers
regarding one or more of these support
mechanisms.
*
*
*
*
*
(5) Debarment. Any action taken by
the Commission in accordance with
these regulations to exclude a person
from activities associated with or
relating to the schools and libraries
support mechanism, the high-cost
support mechanism, the rural health
care support mechanism, and the lowincome support mechanism. A person
so excluded is ‘‘debarred.’’
*
*
*
*
*
(7) Suspension. An action taken by
the Commission in accordance with
these regulations that immediately
excludes a person from activities
associated with or relating to the
schools and libraries support
mechanism, the high-cost support
mechanism, the rural health care
support mechanism, and the lowincome support mechanism for a
temporary period, pending completion
of the debarment proceedings. A person
so excluded is ‘‘suspended.’’
*
*
*
*
*
(c) Causes for suspension and
debarment. Causes for suspension and
debarment are conviction of or civil
judgment for attempt or commission of
criminal fraud, theft, embezzlement,

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forgery, bribery, falsification or
destruction of records, making false
statements, receiving stolen property,
making false claims, obstruction of
justice and other fraud or criminal
offense arising out of activities
associated with or related to the schools
and libraries support mechanism, the
high-cost support mechanism, the rural
health care support mechanism, and the
low-income support mechanism.
(d) Effect of suspension and
debarment. Unless otherwise ordered,
any persons suspended or debarred
shall be excluded from activities
associated with or related to the schools
and libraries support mechanism, the
high-cost support mechanism, the rural
health care support mechanism, and the
low-income support mechanism.
Suspension and debarment of a person
other than an individual constitutes
suspension and debarment of all
divisions and/or other organizational
elements from participation in the
program for the suspension and
debarment period, unless the notice of
suspension and proposed debarment is
limited by its terms to one or more
specifically identified individuals,
divisions, or other organizational
elements or to specific types of
transactions.
(e) * * *
(2) * * *
(i) Give the reasons for the proposed
debarment in terms sufficient to put a
person on notice of the conduct or
transaction(s) upon which it is based
and the cause relied upon, namely, the
entry of a criminal conviction or civil
judgment arising out of activities
associated with or related to the schools
and libraries support mechanism, the
high-cost support mechanism, the rural
health care support mechanism, and the
low-income support mechanism;
*
*
*
*
*
(3) A person subject to proposed
debarment, or who has an existing
contract with a person subject to
proposed debarment or intends to
contract with such a person to provide
or receive services in matters arising out
of activities associated with or related to
the schools and libraries support
mechanism, the high-cost support
mechanism, the rural health care
support mechanism, and the lowincome support mechanism may contest
debarment or the scope of the proposed
debarment. A person contesting
debarment or the scope of proposed
debarment must file arguments and any
relevant documentation within thirty
(30) calendar days of receipt of notice or
publication in the Federal Register,
whichever is earlier.

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(4) A person subject to proposed
debarment, or who has an existing
contract with a person subject to
proposed debarment or intends to
contract with such a person to provide
or receive services in matters arising out
of activities associated with or related to
the schools and libraries support
mechanism, the high-cost support
mechanism, the rural health care
support mechanism, and the lowincome support mechanism may also
contest suspension or the scope of
suspension, but such action will not
ordinarily be granted. A person
contesting suspension or the scope of
suspension must file arguments and any
relevant documentation within thirty
(30) calendar days of receipt of notice or
publication in the Federal Register,
whichever is earlier.
*
*
*
*
*
(g) Time period for debarment. A
debarred person shall be prohibited
from involvement with the schools and
libraries support mechanism, the highcost support mechanism, the rural
health care support mechanism, and the
low-income support mechanism for
three (3) years from the date of
debarment. The Commission may, if
necessary to protect the public interest,
set a longer period of debarment or
extend the existing period of debarment.
If multiple convictions or judgments
have been rendered, the Commission
shall determine based on the facts
before it whether debarments shall run
concurrently or consecutively.
■ 5. Section 54.619 is amended by
adding paragraph (d) to read as follows:
§ 54.619

Audits and recordkeeping.

*

*
*
*
*
(d) Service providers. Service
providers shall retain documents related
to the delivery of discounted
telecommunications and other
supported services for at least 5 years
after the last day of the delivery of
discounted services. Any other
document that demonstrates compliance
with the statutory or regulatory
requirements for the rural health care
mechanism shall be retained as well.
■ 6. Section 54.702 is amended by
adding paragraph (o) to read as follows:
§ 54.702 Administrator’s functions and
responsibilities.

*

*
*
*
*
(o) The Administrator shall provide
performance measurements pertaining
to the universal service support
mechanisms as requested by the
Commission by order or otherwise.
■ 7. Section 54.706 is amended by
adding paragraph (e) to read as follows:

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Federal Register / Vol. 72, No. 184 / Monday, September 24, 2007 / Rules and Regulations
§ 54.706

Contributions.

*

*
*
*
*
(e) Any entity required to contribute
to the federal universal service support
mechanisms shall retain, for at least five
years from the date of the contribution,
all records that may be required to
demonstrate to auditors that the
contributions made were in compliance
with the Commission’s universal service
rules. These records shall include
without limitation the following:
Financial statements and supporting
documentation; accounting records;
historical customer records; general
ledgers; and any other relevant
documentation. This document
retention requirement also applies to
any contractor or consultant working on
behalf of the contributor.
■ 8. Section 54.713 is revised to read as
follows:

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§ 54.713 Contributors’ failure to report or
to contribute.

(a) A contributor that fails to file a
Telecommunications Reporting
Worksheet and subsequently is billed by
the Administrator shall pay the amount
for which it is billed. The Administrator
may bill a contributor a separate
assessment for reasonable costs incurred
because of that contributor’s filing of an
untruthful or inaccurate
Telecommunications Reporting
Worksheet, failure to file the
Telecommunications Reporting
Worksheet, or late payment of
contributions. Failure to file the
Telecommunications Reporting
Worksheet or to submit required
quarterly contributions may subject the
contributor to the enforcement
provisions of the Act and any other
applicable law. The Administrator shall
advise the Commission of any
enforcement issues that arise and
provide any suggested response. Once a
contributor complies with the
Telecommunications Reporting
Worksheet filing requirements, the
Administrator may refund any
overpayments made by the contributor,
less any fees, interest, or costs.
(b) If a universal service fund
contributor fails to make full payment
on or before the date due of the monthly
amount established by the contributor’s
applicable Form 499–A or Form 499–Q,
or the monthly invoice provided by the
Administrator, the payment is
delinquent. All such delinquent
amounts shall incur from the date of
delinquency, and until all charges and
costs are paid in full, interest at the rate
equal to the U.S. prime rate (in effect on
the date of the delinquency) plus 3.5
percent, as well as administrative
charges of collection and/or penalties

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and charges permitted by the applicable
law (e.g., 31 U.S.C. 3717 and
implementing regulations).
(c) If a universal service fund
contributor is more than 30 days
delinquent in filing a
Telecommunications Reporting
Worksheet Form 499–A or 499–Q, the
Administrator shall assess an
administrative remedial collection
charge equal to the greater of $100 or an
amount computed using the rate of the
U.S. prime rate (in effect on the date the
applicable Worksheet is due) plus 3.5
percent, of the amount due per the
Administrator’s calculations. In
addition, the contributor is responsible
for administrative charges of collection
and/or penalties and charges permitted
by the applicable law (e.g., 31 U.S.C.
3717 and implementing regulations).
The Commission may also pursue
enforcement action against delinquent
contributors and late filers, and assess
costs for collection activities in addition
to those imposed by the Administrator.
(d) In the event a contributor fails
both to file the Worksheet and to pay its
contribution, interest will accrue on the
greater of the amounts due, beginning
with the earlier of the date of the failure
to file or pay.
(e) If a universal service fund
contributor pays the Administrator a
sum that is less than the amount due for
the contributor’s universal service
contribution, the Administrator shall
adhere to the ‘‘American Rule’’ whereby
payment is applied first to outstanding
penalty and administrative cost charges,
next to accrued interest, and third to
outstanding principal. In applying the
payment to outstanding principal, the
Administrator shall apply such payment
to the contributor’s oldest past due
amounts first.
[FR Doc. E7–18711 Filed 9–21–07; 8:45 am]
BILLING CODE 6712–01–P

DEPARTMENT OF COMMERCE
National Oceanic and Atmospheric
Administration
50 CFR Part 600
[Docket No. 070607179–7509–02]
RIN 0648–AV66

Fishing Capacity Reduction Program
for the Longline Catcher Processor
Subsector of the Bering Sea and
Aleutian Islands Non-pollock
Groundfish Fishery, Industry Fee
System
National Marine Fisheries
Service (NMFS), National Oceanic and

AGENCY:

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54219

Atmospheric Administration (NOAA),
Commerce.
ACTION: Final rule.
SUMMARY: NMFS establishes regulations
to implement an industry fee system for
repaying a $35 million Federal loan
financing a fishing capacity reduction
program in the longline catcher
processor subsector of the Bering Sea
and Aleutian Islands (BSAI) nonpollock groundfish fishery. This action
implements the fee collection system to
ensure repayment of the loan.
DATES: This final rule is effective, and
fee payment collection begins, on
October 24, 2007.
ADDRESSES: Copies of the
Environmental Assessment/Regulatory
Impact Review/Final Regulatory
Flexibility Analysis (EA/RIR/FRFA)
prepared for the program and the FRFA
for this final rule may be obtained from
Leo Erwin, Chief, Financial Services
Division, National Marine Fisheries
Service, 1315 East-West Highway, Silver
Spring, MD 20910–3282.
Comments involving the burden-hour
estimates or other aspects of the
collection-of-information requirements
contained in this final rule should be
submitted in writing to Leo Erwin, at
the above address, and to David Rostker,
Office of Management and Budget
(OMB), by email at
[email protected] or by fax
to 202–395–7285.
FOR FURTHER INFORMATION CONTACT: Leo
Erwin at 301–713 2390.
SUPPLEMENTARY INFORMATION:

I. Background
Sections 312(b)–(e) of the MagnusonStevens Fishery Conservation and
Management Act (16 U.S.C. 1861a(b)
through (e)) generally authorized fishing
capacity reduction programs. In
particular, section 312(d) authorized
industry fee systems for repaying the
reduction loans which finance
reduction program costs. Subpart L of
50 CFR part 600 (§§ 600.1000 through
600.1017) is the framework rule
generally implementing sections 312(b)–
(e). Subpart M of 50 CFR part 600
(§§ 600.1100 through 600.1105) contains
specific fishery or program regulations.
Sections 1111 and 1112 of the
Merchant Marine Act, 1936 (46 U.S.C.
1279f and 1279g) generally authorized
reduction loans.
The FY 2005 Appropriations Act
(Public Law 108–447, Section 219)
authorized a fishing capacity reduction
program for the longline catcher
processor subsector of the BSAI nonpollock groundfish fishery (reduction
fishery).

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