47 USC 1603 - Secure and Trusted Communications Networks Reimbursement Program

U.S Code last checked for updates: Apr 28, 2024

§ 1603.

Secure and Trusted Communications Networks Reimbursement Program

(a)

In general

(b)

Eligibility

The Commission may not make a reimbursement under the Program to a provider of advanced communications service unless the provider—

(1)

has 10,000,000 or fewer customers; and

(2)

makes all of the certifications required by subsection (d)(4).

(c)

Use of funds

(1)

In general

A recipient of a reimbursement under the Program shall use reimbursement funds solely for the purposes of—

(A)

permanently removing covered communications equipment or services purchased, rented, leased, or otherwise obtained—

(i)

as defined in the Report and Order of the Commission in the matter of Protecting Against National Security Threats to the Communications Supply Chain Through FCC Programs (FCC 19–121; WC Docket No. 18–89; adopted November 22, 2019) (in this section referred to as the “Report and Order”); or

(ii)

as determined to be covered by both the process of the Report and Order and the Designation Orders of the Commission on June 30, 2020 (DA 20–690; PS Docket No. 19–351; adopted June 30, 2020) (DA 20–691; PS Docket No. 19–352; adopted June 30, 2020) (in this section collectively referred to as the “Designation Orders”);

(B)

replacing the covered communications equipment or services removed as described in subparagraph (A) with communications equipment or services that are not covered communications equipment or services; and

(C)

disposing of the covered communications equipment or services removed as described in subparagraph (A) in accordance with the requirements under subsection (d)(7).

(2)

Limitations

A recipient of a reimbursement under the Program may not—

(A)

use reimbursement funds to remove, replace, or dispose of any covered communications equipment or service purchased, rented, leased, or otherwise obtained on or after—

(i)

publication of the Report and Order; or

(ii)

in the case of covered communications equipment that only became covered pursuant to the Designation Orders, June 30, 2020; or

(B)

purchase, rent, lease, or otherwise obtain any covered communications equipment or service, using reimbursement funds or any other funds (including funds derived from private sources).

(d)

Implementation

(1)

Suggested replacements

(A)

Development of list

(B)

Neutrality

(2)

Application process

(A)

In general

(B)

Cost estimate

(i)

Initial estimate

(ii)

Updates

During and after the application review process, the Commission may require an applicant to—

(I)

update the initial reimbursement cost estimate submitted under clause (i); and

(II)

submit additional supporting materials substantiating an updated cost estimate submitted under subclause (I).

(C)

Mitigation of burden

(3)

Application review process

(A)

Deadline

(i)

In general

(ii)

Additional time needed by Commission

(B)

Opportunity for applicant to cure deficiency

(C)

Effect of denial

(4)

Certifications

An applicant for a reimbursement under the Program shall, in the application of the applicant, certify to the Commission that—

(A)

as of the date of the submission of the application, the applicant—

(i)

has developed a plan for—

(I)

the permanent removal and replacement of any covered communications equipment or services that are in the communications network of the applicant as of such date; and

(II)

the disposal of the equipment or services removed as described in subclause (I) in accordance with the requirements under paragraph (7); and

(ii)

has developed a specific timeline (subject to paragraph (6)) for the permanent removal, replacement, and disposal of the covered communications equipment or services identified under clause (i), which timeline shall be submitted to the Commission as part of the application; and

(B)

beginning on the date of the approval of the application, the applicant—

(i)

will not purchase, rent, lease, or otherwise obtain covered communications equipment or services, using reimbursement funds or any other funds (including funds derived from private sources); and

(ii)

in developing and tailoring the risk management practices of the applicant, will consult and consider the standards, guidelines, and best practices set forth in the cybersecurity framework developed by the National Institute of Standards and Technology.

(5)

Distribution of reimbursement funds

(A)

In general

(B)

Notification

If, at any time during the implementation of the Program, the Commission determines that $1,000,000,000 will not be sufficient to fully fund all approved applications for reimbursements under the Program, the Commission shall immediately notify—

(i)

the Committee on Energy and Commerce and the Committee on Appropriations of the House of Representatives; and

(ii)

the Committee on Commerce, Science, and Transportation and the Committee on Appropriations of the Senate.

(C)

Priority for allocation

On and after December 27, 2020, the Commission shall allocate sufficient reimbursement funds—

(i)

first, to approved applicants that have 2,000,000 or fewer customers, for removal and replacement of covered communications equipment, as defined in section 1608 of this title or as designated by the process set forth in the Report and Order;

(ii)

after funds have been allocated to all applicants described in clause (i), to approved applicants that are accredited public or private non-commercial educational institutions providing their own facilities-based educational broadband service, as defined in section 27.4 of title 47, Code of Federal Regulations, or any successor regulation, for removal and replacement of covered communications equipment, as defined in section 1608 of this title or as designated by the process set forth in the Report and Order; and

(iii)

after funds have been allocated to all applicants described in clause (ii), to any remaining approved applicants determined to be eligible for reimbursement under the Program.

(6)

Removal, replacement, and disposal term

(A)

Deadline

(B)

General extension

The Commission may grant an extension of the deadline described in subparagraph (A) for 6 months to all recipients of reimbursements under the Program if the Commission—

(i)

finds that the supply of replacement communications equipment or services needed by the recipients to achieve the purposes of the Program is inadequate to meet the needs of the recipients; and

(ii)

provides notice and a detailed justification for granting the extension to—

(I)

the Committee on Energy and Commerce of the House of Representatives; and

(II)

the Committee on Commerce, Science, and Transportation of the Senate.

(C)

Individual extension

(i)

Petition

(ii)

Grant

(7)

Disposal of covered communications equipment or services

(8)

Status updates

(A)

In general

(B)

Public posting

(C)

Reports to Congress

Not less frequently than once every 180 days beginning on the date on which the Commission first makes funds available to a recipient of a reimbursement under the Program, the Commission shall prepare and submit to the Committee on Energy and Commerce of the House of Representatives and the Committee on Commerce, Science, and Transportation of the Senate a report on—

(i)

the implementation of the Program by the Commission; and

(ii)

the work by recipients of reimbursements under the Program to permanently remove, replace, and dispose of covered communications equipment or services identified under paragraph (4)(A)(i).

(e)

Measures to avoid waste, fraud, and abuse

(1)

In general

(2)

Spending reports

(3)

Audits, reviews, and field investigations

The Commission shall conduct—

(A)

regular audits and reviews of reimbursements under the Program to confirm that recipients of such reimbursements are complying with this chapter; and

(B)

random field investigations to ensure that recipients of reimbursements under the Program are performing the work such recipients are required to perform under the commitments made in the applications of such recipients for reimbursements under the Program, including the permanent removal, replacement, and disposal of the covered communications equipment or services identified under subsection (d)(4)(A)(i).

(4)

Final certification

(A)

In general

The Commission shall require a recipient of a reimbursement under the Program to submit to the Commission, in a form and at an appropriate time to be determined by the Commission, a certification stating that the recipient—

(i)

has fully complied with (or is in the process of complying with) all terms and conditions of the Program;

(ii)

has fully complied with (or is in the process of complying with) the commitments made in the application of the recipient for the reimbursement;

(iii)

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

(iv)

has fully complied with (or is in the process of complying with) the timeline submitted by the recipient under subparagraph (A)(ii) of paragraph (4) of subsection (d) and the other requirements of such paragraph.

(B)

Updated certification

(f)

Effect of removal of equipment or service from list

(1)

In general

If, after the date on which a recipient of a reimbursement under the Program submits the application for the reimbursement, any covered communications equipment or service that is in the network of the recipient as of such date is removed from the list published under section 1601(a) of this title, the recipient may—

(A)

return to the Commission any reimbursement funds received for the removal, replacement, and disposal of such equipment or service and be released from any requirement under this section to remove, replace, or dispose of such equipment or service; or

(B)

retain any reimbursement funds received for the removal, replacement, and disposal of such equipment or service and remain subject to the requirements of this section to remove, replace, and dispose of such equipment or service as if such equipment or service continued to be on the list published under section 1601(a) of this title.

(2)

Assurances

(g)

Rulemaking

(1)

Commencement

(2)

Completion

(h)

Rule of construction regarding timing of reimbursement

(i)

Education efforts

The Commission shall engage in education efforts with providers of advanced communications service to—

(1)

encourage such providers to participate in the Program; and

(2)

assist such providers in submitting applications for the Program.

(j)

Separate from Federal universal service programs

(k)

Limitation

(Pub. L. 116–124, § 4, Mar. 12, 2020, 134 Stat. 160; Pub. L. 116–260, div. N, title IX, § 901(1), Dec. 27, 2020, 134 Stat. 2120.)

cite as: 47 USC 1603

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