Quiero saber acerca de...

2940

Federal Register / Vol. 86, No. 8 / Wednesday, January 13, 2021 / Rules and Regulations
receiving their allocation. In the update, the recipients shall report on the efforts undertaken, and challenges encountered, in permanently removing, replacing, and disposing its covered communications equipment or services.
Recipients shall also report in detail on the availability of replacement equipment in the marketplace so the Commission can assess whether a general, six-month extension permitted by the statute is appropriate. The report must also include information that the entity has fully complied with or is in the process of complying with all terms and conditions of the Program; has fully complied with or is in the process of complying with the commitments made in the application of the recipient for the reimbursement; has permanently removed from the communications network of the recipient, replaced, and disposed of or is in the process of permanently removing, replacing, and disposing of all covered communications equipment or services that were in the network of the recipient as of the date of the submission of the application of the recipient for the reimbursement; and has fully complied with or is in the process of complying with the timeline submitted by the recipient. The report must include a certification that affirms the information in the status report is accurate. After the program recipient has notified the Commission of the completion of the permanent removal, replacement, and disposal of the covered communications equipment or service pursuant to a final certification, updates are no longer required.
218. Steps to Mitigate Waste, Fraud, and Abuse. The Order directs OMD, or a third-party identified by OMD, to prepare a system to audit Reimbursement Program recipients to ensure compliance with the Commissions rules. The Order requires recipients found in violation of the Commissions rules or the commitments made by the recipient in the application for the reimbursement to repay funds disbursed via the Reimbursement Program. Prior to requiring repayment, the Commission will provide notice of the violation, and will give the violator 180 days to cure the violation. The Commission initiates such action by sending a request for repayment to the recipient immediately following the expiration of the opportunity to cure if the recipient does not respond to the notice of violation. If the alleged violator does not respond to the notice or does not repay the amounts due, the Commission will demand repayment. Participants that are
VerDate Sep<11>2014

19:46 Jan 12, 2021

Jkt 253001

found to violate the Commissions rules will also be referred to all appropriate law enforcement agencies or officials for further action under applicable criminal and civil laws. Any person or entity that violates the Reimbursement Program rules will also be banned from further participation in the section 4
Reimbursement Program, and the person or entity may also be barred from participating in other Commission programs, including Universal Service support programs.
219. Replacement List. The Order establishes, and the Commission will publish on its website, a Replacement List that will identify the categories of suggested replacements of real and virtual hardware and software equipment and services to guide of providers removing covered communications equipment from their networks. The Replacement List of suggested equipment and services will be updated at least annually, and program recipients and interested thirdparties may also provide information about suggested equipment and services to assist in keeping the list current and informed based upon changes in the market.
220. Reporting Requirement. The Order requires that providers of advanced communications service annually report the type of covered communications equipment or service purchased, rented or leased; location of the equipment or service; date the equipment or service was procured;
removal or replacement plans for the equipment or service, including cost to replace; amount paid for the equipment or service; the supplier for the equipment or service; and a detailed justification for obtaining such covered equipment and service. All covered communications equipment or services on the initial Covered List published under section 2a of the Secure Networks Act that was purchased, leased, or otherwise obtained by a provider on or after August 14, 2018
must be reported. Additional covered equipment or services added to the list must be reported in the next annual report that is at least 60 days after the list is updated. Those providers needing to submit a detailed justification must thoroughly explain their reasons for obtaining the covered equipment and/or services. The Commission will release to the public a list of providers that have reported covered equipment or services in their networks, consistent with the 2019 Supply Chain Information Collection Order. For the first annual filing, certified responses to this information collection from providers of advanced communication service will
PO 00000

Frm 00038

Fmt 4701

Sfmt 4700

be due through the portal no later than 90 days after OEA issues a public notice announcing the availability of the new reporting portal.
221. The RFA requires an agency to describe the steps the agency has taken to minimize the significant economic impact on small entities of the final rule, consistent with the stated objectives of the applicable statutes, including a statement of the factual, policy, and legal reasons in support of the final rule, and why any significant alternatives to the rule considered by the agency and which affect the impact on small entities were rejected.
222. Several of the rules in the Order are adopted pursuant to statutory obligation under the Secure Networks Act. However, where the Commission has discretion in its interpretation or implementation of the Secure Networks Act provisions, or adopts rules pursuant to alternative statutory authority, the scope of the rules is narrowly tailored so as to lessen the impact on small entities. The rules adopted in the Order appropriately consider the burdens on smaller providers against the Commissions goal of protecting its communications networks and communications supply chain from communications equipment and services that pose a national security threat, while facilitating the transition to safer and more secure alternatives.
223. Consistent with the Commissions proposal in the 2019
Supply Chain Further Notice, the requirement to remove and replace covered equipment and services is contingent upon appropriation from Congress, rather than making the requirement effective before funding is secured or based upon funding obtained through alternative measures, such as USF. Waiting until appropriated funding is available will reduce the burdens imposed upon smaller providers by ensuring that funds are available to cover reimbursable expenses through the Reimbursement Program. Additionally, the Order ties the administration of the remove-andreplace requirement to the administration of the Reimbursement Program, including limiting the scope of the requirement to equipment and services on the Covered List, which will allow providers to easily identify equipment and services to remove and replace from their networks. Using the Covered List to determine the scope of equipment and services applicable to the remove-and-replace requirement, as well as the prohibition on the use of Federal subsidies in 54.10 of the Commissions rules and the Reimbursement Program, will enable
E:FRFM13JAR4.SGM

13JAR4