3060-0824 Proposed 2021 Supporting Statement_final version

3060-0824

August 2021

Service Provider and Bill Entity

Identification Number and Contact Information Form

SUPPORTING STATEMENT

This collection is being submitted to the Office of Management and Budget (OMB) as an extension of a currently approved collection to FCC Form 498.

1. Justification:

1. Circumstances that make collection necessary. The Telecommunications Act of 1996 (1996 Act) directed the Commission to initiate a rulemaking to reform the system of universal service so that universal service is preserved and advanced as markets move toward competition. Based on the recommendations of the Federal-State Joint Board on Universal Service, the Commission released a Report and Order in CC Docket No. 96-45 on May 8, 1997, to implement the congressional directives set out in Section 254 of the Communications Act, as amended by the 1996 Act (the Act). As part of that implementation, the Commission appointed the Universal Service Administrative Company (USAC) as administrator of the federal universal service support mechanisms.

One of the functions of USAC is to provide a means for the billing, collection, and disbursement of funds for the universal service support mechanisms. In October 1998, Office of Management and Budget (OMB) approved FCC Form 498, the “Service Provider Information Form,” to enable USAC to collect service provider name and address, telephone number, Federal Employer Identification Number (EIN), contact names, contact telephone numbers, and remittance information. FCC Form 498 enables participants to request a Service Provider Identification Number (SPIN) and provides the official record for participation in the universal service support mechanisms. The remittance information provided by participants on FCC Form 498 enables USAC to make payments to participants in the universal service support mechanisms.

Pursuant to 47 C.F.R. §§ 54.202, 54.301, 54.303, 54.307, 54.309, 54.311, 54.504,

54.407, 54.422, 54.514, 54.515, 54.679, 54.702, 54.802, and 54.902, USAC collects

service provider name, phone numbers, other contact information, and remittance information for all four of the universal service support mechanisms -- Schools and Libraries, Rural Health Care, High-Cost and Low-Income (commonly referred to as Lifeline). On July 23, 2014, the Commission released an Order and FNPRM (WC Docket No. 13-184, FCC 14-99; 79 FR 49160, August 19, 2014) (E-rate

Modernization Order) modernizing the E-rate program. Specifically, the E-rate Modernization Order revised the Commission rules to allow an applicant that pays the full cost of the Schools and Libraries (E-rate) supported services to a service provider to receive direct reimbursement from USAC.

The Digital Accountability and Transparency Act (DATA Act) directs Federal agencies to report financial obligations and standardize the information that recipients of federal funds report to government agencies. To comply with the DATA Act, the DATA Act Business Type is reported on FCC Form 498. When

completing or updating this form, service providers and billed entities are required to select up to three business types that best describes the organization.

We propose to extend this information collection to reflect non-substantive changes to FCC Form 498 and its accompanying instructions. Specifically, we propose to add a “Network/Infrastructure option to Block 20: Principle Communications Types on FCC Form 498 to better identify the business type activity options, as well as clarify the instructions for completing this field. We also propose to update the links on the FCC Form 498 and instructions to reflect the current URLs. These extensions do not change the burdens for this information collection.

This information collection does not affect individuals or households; thus, there are no impacts under the Privacy Act.

The statutory authority for this collection is contained in sections 1-4 and 254 of the Communications Act of 1934, as amended, 47 U.S.C. § 151-154, 254, and Part 54 of the Commission’s rules.

2. Use of information. The information collected by FCC Form 498 is used by USAC to disburse federal universal service support consistent with the specifications of eligible participants in the universal service programs. FCC Form 498 submissions also provide USAC with updated contact information so that USAC can contact universal service fund participants when necessary. Without such information, USAC would not be able to distribute support to the proper entities and this would prevent the Commission from fulfilling its statutory responsibilities under the Act to preserve and advance universal service.

3. Technological collection techniques. The information will be collected via a web based portal.

4. Efforts to identify duplication. There will be no duplication of information. The information sought is unique to each respondent and similar information is not already available.

5. Impact on small entities. In conformance with the Paperwork Reduction Act of 1995, the Commission is making an effort to minimize the burden on all respondents, regardless of size. The form has been designed to impose the least possible burden on the respondents, as respondents will only complete those sections of the form that pertain to the programs in which they participate. For greater flexibility and to reduce the time burden on applicants, the FCC Form 498 enables service providers and billed entities to elect either one remittance financial institution account for all four universal service programs or multiple remittance financial institution accounts. The Commission has limited the information requirements to those absolutely necessary for obtaining the remittance information USAC needs to make disbursements. Applicants also are allowed to elect either one contact for all four programs or multiple contacts.

6. Consequences if information is not collected. Failing to collect the information, or collecting it less frequently, would prevent the Commission from implementing section 254 of the Act and attaining the goals of affordable telecommunications service and access to advanced services throughout the nation.

7. Frequency of collection. Respondents will provide information once to obtain a SPIN for the first time and on subsequent occasions only as their own contact and remittance information changes.

8. Federal register notice; efforts to consult with persons outside the Commission. A 60-day notice was published in the Federal Register as required by 5 CFR 1320.8(d) to solicit public comment on June 3, 2021 (86 FR 29774). No PRA comments were received as a result of the notice.

9. Payments or gifts to respondents. The Commission will not provide payments or gifts to respondents. Some respondents, however, may receive universal service support payments based on the Commission’s rules.

10. Assurance of confidentiality. The Commission notes that USAC must preserve the confidentiality of all data obtained from respondents and contributors to the universal service programs, must not use the data except for purposes of administering the universal service programs, and must not disclose data in company-specific form unless directed to do so by the Commission. With respect to the Service Provider and Billed Entity Identification Number and Contact Information Form (FCC Form 498), USAC shall publish each participant’s name, SPIN, and contact information via USAC’s website. All other information, including financial institution account numbers or routing information, shall remain confidential.

11. Questions of a sensitive nature. There are no questions of a sensitive nature with respect to the information collected.

12. Estimates of the hour burden of the collection to respondents.

Submission of FCC Form 498 “Service Provider and Billed Entity Identification Number and Contact Information Form”

• Number of respondents: Approximately 26,000 respondents: 4,000 service providers, 22,000 billed entities.

• Frequency of response: On occasion reporting requirement. Service providers must submit FCC Form 498 with contact information to USAC to initially request a SPIN, and on occasion as information changes.

• Annual burden per response: .75 hours. The total annual hour burden is

19,500 hours.

• Total estimate of the in-house cost to respondents for the hour burdens for collection of information: $780,000.

• Explanation of calculation: We estimate that this obligation will take approximately .75 hours and will occur once a year for 26,000 program participants. 26,000 (number of respondents) x 1 (number of submissions

• required) x .75 hours (to prepare form, including time for reading instructions) x $40 per hour (including administrative staff time and overhead) = $780,000.

Total Number of Respondents and Responses: 26,000respondents/responses

Total Annual Burden: 19,500 burden hours

Total In-House Cost to Respondents: $780,000

13. Estimate of the cost burden of the collection to respondents. We estimate that there will be no capital or start-up costs to comply with this collection because the information relates to contact and remittance information that readily will be available. We do not believe that these requirements will necessitate the purchase of additional equipment. We estimate that there will be no operation, maintenance or purchase of services, or costs associated with this collection.

14. Estimate of the cost burden to the Commission. There will be no costs to the Commission because notice and enforcement requirements are already part of Commission duties. Moreover, there will be minimal cost to the Federal government since an outside party will administer this program.

15. Program changes or adjustment. The Commission is not reporting any program changes or adjustments to this collection.

16. Collections of information whose results will be published. USAC shall publish each participant’s name, SPIN, and contact information via USAC’s website. All other information, including financial institution account numbers or routing information, shall remain confidential.

17. Display of expiration date for OMB approval of information collection. The Commission seeks continued approval to not display the expiration date for OMB approval of this information collection

18. Exceptions to the certification statement for Paperwork Reduction Act submissions. There are no exceptions to Certification Statement

2. Collections of Information Employing Statistical Methods:

No statistical methods are employed.

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