Affordable Connectivity Program; Emergency Broadband Benefit Program, 8346-8384 [2022-02887]

Agencies

• FEDERAL COMMUNICATIONS COMMISSION

[Federal Register Volume 87, Number 30 (Monday, February 14, 2022)]
[Rules and Regulations]
[Pages 8346-8384]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2022-02887]



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Vol. 87

Monday,

No. 30

February 14, 2022

Part II





 Federal Communications Commission





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47 CFR Part 54





Affordable Connectivity Program; Emergency Broadband Benefit Program; 
Final Rule and Proposed Rule

Federal Register / Vol. 87 , No. 30 / Monday, February 14, 2022 / 
Rules and Regulations

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FEDERAL COMMUNICATIONS COMMISSION

47 CFR Part 54

[WC Docket Nos. 21-450 and 20-445; FCC 22-2; FR ID 71008]


Affordable Connectivity Program; Emergency Broadband Benefit 
Program

AGENCY: Federal Communications Commission.

ACTION: Final rule.

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SUMMARY: In this Report and Order, the Federal Communications 
Commission (Commission or FCC) adopts final rules for the Affordable 
Connectivity Program, established by Congress in the Infrastructure 
Investment and Jobs Act (Infrastructure Act). The Affordable 
Connectivity Program is designed to make broadband service and 
connected devices available to eligible low-income households at 
affordable, discounted prices from providers that opt to participate in 
the program. The rules adopted in the Report and Order address, inter 
alia, the eligibility criteria for broadband service providers that opt 
to participate in the program, eligibility criteria for households that 
seek benefits, the types of broadband services and connected devices 
that will be covered, the amounts of reimbursements available to 
providers, claims procedures, consumer protection requirements, and 
reporting, auditing, enforcement, and related matters.

DATES: Effective March 16, 2022, except for 47 CFR 54.1802(b), 54.1804, 
54.1807(b), 54.1808(c)(1) and (2), 54.1809(c), and 54.1810(a) and (b), 
which are effective April 15, 2022.

ADDRESSES: You may submit comments, identified by WC Docket Nos. 21-
450, by any of the following methods:
     Electronic Filers: You may file documents electronically 
by accessing the Commission's Electronic Comment Filing System (ECFS) 
at https://www.fcc.gov/ecfs/filings.
     Paper Filers: Parties who choose to file by paper must 
file an original and one copy of each filing.
    Filings can be sent by commercial overnight courier, or by first-
class or overnight U.S. Postal Service mail. All filings must be 
addressed to the Commission's Secretary, Office of the Secretary, 
Federal Communications Commission.
     Commercial overnight mail (other than U.S. Postal Service 
Express Mail and Priority Mail) must be sent to 9050 Junction Drive, 
Annapolis Junction, MD 20701.
     U.S. Postal Service first-class, Express, and Priority 
mail must be addressed to Federal Communications Commission, 45 L 
Street NE, Washington, DC 20554.
     Effective March 19, 2020, and until further notice, the 
Commission no longer accepts any hand or messenger delivered filings. 
This is a temporary measure taken to help protect the health and safety 
of individuals, and to mitigate the transmission of COVID-19. See FCC 
Announces Closure of FCC Headquarters Open Window and Change in Hand-
Delivery Policy, Public Notice, DA 20-304 (March 19, 2020), https://www.fcc.gov/document/fcc-closes-headquarters-open-window-and-changes-hand-delivery-policy.
     Parties that need to submit confidential filings to the 
Commission should follow the instructions provided in the Commission's 
March 31, 2020 public notice regarding the procedures for submission of 
confidential materials. See FCC Provides Further Instructions Regarding 
Submission of Confidential Materials, Public Notice, DA 20-361, 35 FCC 
Rcd 2973 (OMD, March 31, 2000), https://docs.fcc.gov/public/attachments/DA-20-361A1_Rcd.pdf. All filings must be addressed to the 
Commission's Secretary, Office of the Secretary, Federal Communications 
Commission.
    People with Disabilities. To request materials in accessible 
formats for people with disabilities (Braille, large print, electronic 
files, audio format), send an email to [email protected] or call the 
Consumer and Governmental Affairs Bureau at 202-418-0530.

FOR FURTHER INFORMATION CONTACT: Eric Wu, Attorney Advisor, 
Telecommunications Access Policy Division, Wireline Competition Bureau, 
at (202) 418-7400 or [email protected].

SUPPLEMENTARY INFORMATION: This is a synopsis of the Commission's 
Report and Order in WC Docket Nos. 21-450 and 20-445, FCC 22-2, adopted 
on January 14, 2022 and released on January 21, 2022. The full text of 
this document is available at https://docs.fcc.gov/public/attachments/FCC-22-2A1.pdf. The Further Notice of Proposed Rulemaking that was 
adopted concurrently with this Report and Order is to be published 
elsewhere in the Federal Register.

I. Introduction

    1. In the Infrastructure Act, Congress established the Affordable 
Connectivity Program (ACP) on the basis of the preexisting Emergency 
Broadband Benefit Program (EBB Program), with modifications designed to 
transform it from an emergency response to a public health crisis to a 
longer-term program to support making discounted broadband service and 
connected devices available to low-income households. The 
Infrastructure Act includes an additional $14.2 billion appropriation 
for implementing the new program. The rules adopted in the Report and 
Order are largely based on the Commission's EBB Program rules, with 
modifications to reflect statutory changes adopted in the 
Infrastructure Act.
    2. In particular, the Infrastructure Act changed the EBB Program's 
subscriber eligibility rules and benefit amounts by increasing the 
Affordable Connectivity Program's income threshold from 135% to 200% of 
the Federal Poverty Guidelines, adding the Special Supplemental 
Nutritional Program for Women, Infants, and Children (WIC) as a 
qualifying program, removing eligibility for households that qualified 
for the EBB Program based on factors related to income losses due to 
the COVID-19 pandemic, and reducing the standard monthly benefit from 
$50.00 to $30.00. See Infrastructure Act, div. F, tit. V, section 
60502(b)(1), amending Consolidated Appropriations Act, 2021, Public Law 
116-260, div. N. tit. IX, section 904(a)(6), (a)(7)(A) (2020); 47 
U.S.C. 1752(a)(6), (a)(7)(A). Under the Affordable Connectivity 
Program, eligible households may apply subsidy benefits to any 
broadband services offered by a participating provider, rather than 
limiting the covered services to those offered on December 1, 2020, as 
in the EBB Program. Infrastructure Act, div. F, tit. V, section 
60502(a)(3), amending Consolidated Appropriations Act, 2021, Public Law 
116-260, div. N. tit. IX, section 904(a)(9), (b)(7); 47 U.S.C. 
1752(b)(7)(A)(i). The Affordable Connectivity Program also includes 
modified obligations for participating providers relating to consumer 
protection and program promotion, as well as reporting, enforcement, 
auditing, and other provisions. These statutory provisions and rules 
implementing them are discussed following.
    3. Pursuant to the Infrastructure Act, the Affordable Connectivity 
Program took effect on December 31, 2001. The Universal Service 
Administrative Company (USAC or the Administrator), which administers 
the Commission's universal service programs as well as the EBB and 
Affordable Connectivity Programs, began accepting applications and 
enrollments for the Affordable Connectivity Program on December 31, 
2021. As of January 14, 2022, approximately 265,000 households had 
enrolled in the Affordable Connectivity Program and more than 9 million

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households had transitioned into that newly-launched program from the 
EBB Program.
    4. The Infrastructure Act directs the Commission to adopt rules to 
implement the Affordable Connectivity Program by January 14, 2022 
(i.e., within 60 days after November 15, 2021, the date of enactment of 
the statute). See 47 U.S.C. 1752(c)(1). As directed by the statute, a 
public notice initiating this proceeding and seeking comment on 
proposed rules was issued on November 18, 2021, see 47 U.S.C. 
1752(c)(2); see Wireless Competition Bureau Seeks Comment on the 
Implementation of the Affordable Connectivity Program, WC Docket No. 
21-450, Public Notice, DA 21-1453 (WCB Nov. 18, 2021) (ACP Public 
Notice); Proposed Rule, 88 FR 74036 (Dec. 29, 2021); and interested 
parties were given 20 days to file comments (due Dec. 8, 2021) and 20 
days for reply comments (due Dec. 28, 2021). In response, the 
Commission received comments from broadband providers, State and local 
governments, educational groups, consumer groups and other non-profits, 
and individual consumers.

II. Discussion

A. Participating Providers

    5. The Infrastructure Act defines an eligible ``participating 
provider'' as a broadband service provider that has either received 
Eligible Telecommunications Carrier (ETC) designation under 47 U.S.C. 
214(e) or requested and obtained the Commission's approval as such. See 
47 U.S.C. 1752(a)(11)(A). This definition is consistent with the 
definition of ``participating provider'' in the Consolidated 
Appropriations Act for purposes of the EBB Program; and as in the EBB 
Program, provider participation in the Affordable Connectivity Program 
is voluntary. 47 U.S.C. 1752(a)(11)(A). Nothing in the Infrastructure 
Act requires changes to the EBB Program framework through which 
providers may seek to participate in the Affordable Connectivity 
Program, including the participating provider election process, the 
``expedited approval process'' to approve requests to participate by 
providers that are not designated ETCs, see 47 U.S.C. 1752(d)(2)(A), or 
the ``automatic approval process'' for providers with an ``established 
program as of April 1, 2020'' for offering broadband services to 
eligible households with verification processes sufficient to prevent 
fraud, waste, and abuse. See 47 U.S.C. 1752(d)(2)(A), (d)(2)(B). 
Providers that participated in the EBB Program and were in good 
standing as of December 31, 2021 when the EBB Program ceased can 
continue to participate in the same manner in the Affordable 
Connectivity Program without seeking Bureau approval or filing election 
notices. This includes providers with alternative verification process 
approvals. Providers that did not participate in the EBB Program and 
have not been designated as ETCs by a State or the Commission must file 
for automatic approval or expedited approval from the Commission. All 
new providers to the Affordable Connectivity Program will need to file 
USAC election notices.
1. Providers Eligible To Participate
    6. Participating Provider Eligibility Requirements. The Commission 
retains the broad, technologically neutral approach to provider 
participation that was used in the EBB Program. ETCs and non-ETCs 
seeking to participate in the Affordable Connectivity Program must 
establish that they provide broadband services to participate, and the 
Commission declines to further narrow provider eligibility among those 
providers that offer broadband services as defined by the statute. This 
interpretation continues to allow participation by ETCs and non-ETC 
broadband providers, including not only traditional internet Service 
Providers (ISPs) such as cable providers and wireless internet service 
providers, but also non-traditional broadband providers like community-
owned networks, electric cooperatives, and municipal governments.
    7. The Infrastructure Act removes the Consolidated Appropriations 
Act's requirement that the broadband services supported by the program 
must have been offered ``in the same manner, and on the same terms, as 
described in any of such provider's offerings for broadband internet 
access service to such household, as on December 1, 2020,'' 
Consolidated Appropriations Act, 2021, div. N, tit. IX, section 
904(a)(9), struck by Infrastructure Act, div. F, tit. V, section 
60502(b)(1)(A)(iv); 47 U.S.C. 1752(a)(8), and imposes a new requirement 
that providers ``allow an eligible household to apply the affordable 
connectivity benefit to any internet service offering of the 
participating provider, at the same rates and terms available to 
households that are not eligible households.'' 47 U.S.C. 
1752(b)(7)(A)(i). While the EBB Program required participating 
providers to have offered retail broadband internet access service to 
eligible households as of December 1, 2020, the Infrastructure Act 
removed the December 1, 2020, restriction, and therefore participating 
providers will only need to establish they offered broadband services 
to end-users prior to seeking to participate in the Affordable 
Connectivity Program. Participating providers can establish through 
certification that they provided broadband internet access service and 
reimbursable internet service offerings either by timely filing the FCC 
Form 477 or by filing a certification, under penalty of perjury, that 
they provided broadband service, prior to submitting the application. 
As in the EBB Program, such retail broadband internet access service 
must be offered or provisioned to end users, meaning the provider of 
retail broadband internet access service maintains a direct 
relationship with the customer, is responsible for dealing with 
customer complaints, handles customer billing, and provides quality of 
service guarantees to the end user.
    8. Existing EBB Program Participating Providers. In order to enable 
a quick and orderly transition period by reducing administrative 
burdens for participating providers, the Commission, and USAC, the 
Commission allows existing EBB Program participating providers in good 
standing to be automatically eligible to participate in the Affordable 
Connectivity Program. Automatically transitioning participating 
providers from the EBB Program to the Affordable Connectivity Program 
helps ensure that eligible households continue to receive the 
Affordable Connectivity Program discount without disruptions.
2. Elections To Participate in the Affordable Connectivity Program by 
Existing EBB Program Providers, Existing ETCs and Bureau-Approved 
Providers
    9. Providers that did not participate in the EBB program but wish 
to participate in the Affordable Connectivity Program will be required 
to file election notices with USAC to facilitate the administration of 
the program and provide USAC the necessary information to incorporate 
providers into its systems for eligibility determination, enrollment, 
and reimbursement. This also applies to providers seeking to add new 
jurisdictions (States or territories). Existing ETCs will need to file 
election notices with USAC only, while non-ETCs will need to first 
apply for and then obtain Bureau approval prior to filing their 
election notices with USAC. The Commission directs the Bureau and USAC 
to work expeditiously to review provider applications and elections, 
respectively, and directs the Bureau to issue additional guidance and 
instruction as necessary for providers seeking to participate in the 
Affordable

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Connectivity Program. Further, the Commission expects the Bureau and 
USAC to prioritize their reviews to limit excessive delay in issuing 
approvals of the applications and elections once properly submitted by 
the providers.
a. Election Notice Process and Requirements
    10. The Commission directs USAC, under the supervision of and in 
coordination with the Bureau, to establish and administer a process to 
enable all new participating Affordable Connectivity Program providers 
to file election notices containing information sufficient to 
effectively administer the program, including the information discussed 
following. Participating providers must certify under penalty of 
perjury that the information set forth in the election notice is true, 
accurate, and complete; they understand and will comply with all 
statutory and regulatory obligations described within the Order; and 
all terms and conditions and other requirements applicable to using the 
Lifeline National Eligibility Verifier (National Verifier), National 
Lifeline Accountability Database (NLAD), Representative Accountability 
Database (RAD), and other USAC systems. Providing materially false 
information in the election notice will disqualify a provider from 
participation in the Affordable Connectivity Program or result in a 
reduced reimbursement, as appropriate. 47 U.S.C. 1752(a)(11), (d).
    11. Provider elections must include the following information to 
establish that the provider has met the criteria and can provide enough 
information to allow USAC to administer the program.
    (a) List of States or territories in which the provider plans to 
participate in the Affordable Connectivity Program. A provider must 
list each State in which it will offer Affordable Connectivity Program 
services. Consistent with USAC's existing processes, providers should 
identify to USAC the postal ZIP code(s) or Census Block(s) where the 
provider will offer the Affordable Connectivity Program service to 
obtain Service Provider Identification Number(s) (SPINs), Study Area 
Codes (SACs), and provide information for use in the ``Companies Near 
Me Tool'' to the extent necessary.
    (b) A statement that, in each such State or territory, the provider 
was a ``broadband provider.'' Consistent with the Commission's 
broadband data reporting rules, participating providers will be able to 
establish that they provided broadband internet access service and 
reimbursable internet service offerings through reference to previous 
FCC Form 477 filings. The Commission will consult the subscription data 
provided on the FCC Form 477 and any successor filing to determine 
compliance with this requirement. To fulfill this requirement, a 
provider should reference the most recent FCC Form 477 data month 
submission showing service in the jurisdiction. Providers that are not 
required to file FCC Form 477 must certify that they provided retail 
broadband internet access service to end users, submit supporting 
documentation demonstrating such offerings, and identify the underlying 
carrier providing the network facilities.
    (c) A statement identifying where the provider is an existing ETC. 
A provider who is an ETC or is affiliated with an ETC seeking to begin 
offering the Affordable Connectivity Program must submit to USAC 
documentation demonstrating that it is a participating provider in 
specific states.
    (d) A statement identifying where the provider received Bureau 
approval to participate in the Affordable Connectivity Program. 
Providers seeking approvals outside of states where they are existing 
ETCs or are affiliated with existing ETCs (within the meaning of 
``affiliate'' in 47 U.S.C. 153(2)) will need to identify those states 
and submit the statement to the Bureau for approval to participate in 
the program.
    (e) A statement confirming whether the provider intends to 
distribute connected devices and supporting documentation. Providers 
seeking reimbursement for connected devices must submit a statement of 
intent to distribute connected devices as part of their election 
notice. These providers should also include documentation detailing the 
equipment, including device make, device model, device type, device 
characteristics (e.g., screen size, storage, memory) and market value 
of the laptop, desktop or tablet. Connected devices must be accessible 
to and usable by users with disabilities.
    12. Providers newly seeking to participate in the Affordable 
Connectivity Program must obtain and be able to provide the necessary 
administrative registrations to utilize the Commission and USAC 
processes, including the Commission Registration System (CORES), FCC 
Registration Number (FRN), Service Provider Identification Number(s) 
(SPINs), Study Area Codes (SACs), System for Award Management (SAM), 
Employer Identification Number (EIN), Tax Identification Number (TIN) 
and/or Dun & Bradstreet DUNS number for all entities the provider 
anticipates seeking reimbursement. The FRN, EIN/TIN, and DUNS should 
all be associated with the same entity filing the election notice, and 
the provider should identify any parent/subsidiary or affiliate 
relationships it has with other broadband service providers. See 47 
U.S.C. 153(2) (defining affiliate). An election should be filed for 
every entity expecting to receive reimbursement from the Affordable 
Connectivity Program.
    13. The Commission will not collect broadband internet service plan 
information during the election process, and participating providers do 
not have to file broadband service plan information during the USAC 
election process or update existing service plan information that they 
previously filed during the EBB Program election process. Providers are 
on notice of the statutory requirement to offer ACP discount on ``any 
internet service offering'' and the requirement adopted in the Order to 
certify compliance with the ACP rules as a condition of participation.
    14. The Commission directs USAC, in coordination with the Bureau, 
to expeditiously process election notices and to establish necessary 
systems and processes to systematically review election notices on a 
rolling basis. USAC should notify a provider promptly if its election 
notice is incomplete or otherwise contains errors that prevent USAC 
from processing the election notice. USAC will only reject election 
notices that are materially incomplete and that the provider fails to 
update.
b. Obligations of Providers Electing To Participate in Affordable 
Connectivity Fund
    15. The Commission has authority under the Infrastructure Act to 
require participating providers to make available the necessary 
information and certifications to obtain access to the existing USAC 
systems needed to administer the Affordable Connectivity Program, and 
it authorizes USAC to continue to make available the appropriate 
databases to administer the program, including the National Verifier, 
NLAD, RAD, and Lifeline Claims System (LCS), and to take the 
appropriate actions to update, modify, or create the necessary systems 
to administer the Affordable Connectivity Program in line with the 
Commission's direction in the Order. The Commission also directs the 
Bureau and the Office of Managing Director (OMD) to supervise and 
coordinate with USAC all actions necessary to continue to make USAC 
databases and systems available for the Affordable Connectivity 
Program.

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    16. Access to Affordable Connectivity Program Systems. The 
Commission further requires participating providers to use USAC 
systems, such as the LCS, NLAD, and RAD, for program administration, 
and permits them to use the National Verifier to determine household 
eligibility if they do not have approved alternative verification 
processes. See 47 U.S.C. 1752(b)(3), (i)(5). Based on the Commission's 
experience with the EBB Program, the Commission will continue to rely 
on the USAC-administered National Verifier, NLAD, RAD, LCS, and other 
established processes, including the provider reimbursement process, 
call centers for program support, provider and consumer outreach, and 
conducting program integrity reviews. The Commission directs the Bureau 
and USAC, as directed by the Bureau, to issue any further guidance or 
instruction necessary to clarify the obligations of participating 
providers when using USAC databases and the administrative process 
established for the Affordable Connectivity Program.
    17. Required Updates to Election Notice Information Resulting from 
Transactions of Participating Providers. Participating providers must 
maintain up-to-date information in their election notices filed with 
USAC and shall keep the identifying information specified in those 
notices, including points of contact, FRN, EIN/TIN, and DUNS, up to 
date. Participating providers must update this information following 
any transaction that would result in a change to the identifying 
information submitted on an election notice (although they need not 
seek approval specifically for continued participation in the 
Affordable Connectivity Program following transfers of ownership or 
control under 47 U.S.C. 214). Providers must submit updated and 
accurate contact information and similar administrative information 
within ten business days of the change in information.
c. Sales Agent Financial Incentives for Enrollments
    18. Consistent with the EBB Program rules, the Commission continues 
to require all participating providers to have their agents and other 
enrollment representatives registered with the Representative 
Accountability Database (RAD), as is currently required for the 
Lifeline and EBB Programs, as a way to minimize waste, fraud, and 
abuse. To address the potential for waste, fraud, and abuse caused by 
commission-based compensation for sales agents, the Bureau proposed 
prohibiting any commission compensation for enrollment representatives 
or direct supervisors. ACP Public Notice, 86 FR at 74040-41, para. 18. 
At this time, the Commission declines to adopt a strict prohibition on 
participating providers offering commission-based compensation to 
employees, sales agents, or similar enrollment representatives. The 
Commission instead adopts a more limited prohibition on participating 
providers and, as done for Lifeline, restricts them from offering or 
providing to their enrollment representatives or direct supervisors any 
commission compensation that is based on the number of households who 
apply for, are enrolled in, or receive the Affordable Connectivity 
Program benefit from that provider, or based on revenues the 
participating provider receives in connection with the Affordable 
Connectivity Program, including payments for connected devices. In the 
EBB Program Order, the Commission declined to apply this prohibition to 
the EBB Program ``to avoid discouraging provider participation and 
diminishing consumer choice'' in a temporary program. Emergency 
Broadband Benefit Program, 86 FR 19532, 19559, para. 142 (April 13, 
2021) (EBB Program Order).
    19. The considerations for the more permanent Affordable 
Connectivity Program are different, and our experience during the EBB 
Program with agent-driven, apparent improper enrollments necessitates 
adopting a program ban on agent commission compensation similar to the 
Lifeline Program. For example, the FCC's Office of Inspector General 
(OIG) recently issued an advisory raising concerns about potential 
waste, fraud and abuse with respect to EBB Program enrollments based on 
the USDA National School Lunch Program's Community Eligibility 
Provision (CEP). See generally Advisory Regarding Fraudulent EBB 
Enrollments Based on USDA National School Lunch Program Community 
Eligibility Provision (FCC OIG Nov. 22, 2021), https://www.fcc.gov/document/fcc-inspector-general-advisory-regarding-ebb-enrollment-fraud 
(OIG Advisory); Wireline Competition Bureau Announces Additional 
Program Integrity Measures for Emergency Benefit Program Enrollments 
Based on the Community Eligibility Provision, WC Docket No. 20-445, DA 
21-1464 (WCB Nov. 22, 2021). Specifically, the advisory observes and 
describes certain problems associated with the CEP enrollment process 
that involve misconduct by sales agents. OIG Advisory at 2-3. While the 
Bureau and USAC have engaged in remedial actions to prevent this 
specific abuse, the Commission is concerned that the financial 
incentives for provider sales agents based on enrollments and 
applications invites program waste.
    20. This decision is bolstered by a similar restriction in the 
Lifeline program. In 2019, the Commission banned this practice in the 
Lifeline program, holding that ``while the National Verifier plays an 
important role in helping to address waste, fraud, and abuse in the 
program, we do not believe that it will eliminate the financial 
incentives for individuals to attempt to defraud the Lifeline program. 
Commissions based on the number of Lifeline applications or successful 
Lifeline enrollments are one such incentive, and by limiting them 
today, we remove a financial incentive for committing fraudulent 
activity.'' Bridging the Digital Divide for Low-Income Consumers, Final 
Rule, 84 FR 71308, 71315, para. 52 (Dec. 27, 2019) (Lifeline Fifth 
Report and Order). The Commission finds this rationale persuasive. 
While the Commission initially declined adopting such a ban for the EBB 
Program to not discourage provider participation, given the robust 
provider participation and household enrollments seen in the EBB 
Program, the Commission finds the public interest is better served by 
preventing waste, fraud, and abuse caused by incentives related to 
commissions.
    21. In considering this decision, the Commission is not persuaded 
by comments in the record suggesting that such a limited commission-
based compensation prohibition is unnecessary or that representative 
registration in the RAD alone is sufficient to prevent waste, fraud, 
and abuse. In the Commission's experience, both in Lifeline and the EBB 
Program, agent registration does not remove the financial incentive to 
improperly enroll a household when the agent is compensated based on 
the enrollment. See OIG Advisory at 2-3. Further, agent registration 
allows for audits, trend analysis, and other remedial actions after the 
improper enrollment occurs, but does little to prevent the improper 
behavior or remove the incentive for abuse. Commenters additionally 
suggest that the Lifeline commission ban was a stop-gap measure that 
was put in place prior to the full launch of the National Verifier and 
thus does not need to be implemented in the Affordable Connectivity 
Program, which utilizes the National Verifier. The Commission, however, 
continues to ban commission-based compensation in the Lifeline program 
following the full deployment

[[Page 8350]]

of the National Verifier, and the Commission has recognized that the 
National Verifier itself does not remove the financial incentives for 
sales agents to improperly enroll ineligible households. Lifeline Fifth 
Report and Order, 84 FR at 71315, para. 52.
    22. The Commission considered a stricter prohibition that would bar 
any commission-based compensation to participating providers' 
enrollment representatives. ACP Public Notice, 86 FR at 74040-41, para. 
18. However, because this broad prohibition may have had unintended 
consequences given the frequency broadband providers use commission-
based compensation for their enrollment representatives across multiple 
services and business operations, the Commission limits the prohibition 
to only commissions based on ACP applications, enrollments, 
participation, or revenues, thus striking a balance in preventing 
certain abuses in the program while reducing the logistical and 
administrative burden for participating providers that a blanket 
prohibition on commissions may have caused. Finally, the Commission 
finds support in the record to ban agent compensation based on ACP 
applications and enrollments from commenters recognizing the financial 
incentive to enroll consumers can result in misleading and improper 
information being provided to consumers to induce enrollments or other 
abusive behaviors.
    23. Accordingly, the Commission prohibits participating providers 
from offering or providing commissions to enrollment representatives 
and their direct supervisors based on the number of consumers who apply 
for, are enrolled in, or receive the affordable connectivity benefit 
from that provider. This restriction applies to an employee, agent, 
contractor, or subcontractor, acting on behalf of a participating 
provider or third-party entity, who directly or indirectly provides 
information to the Administrator for the purpose of eligibility 
verification, enrollment, subscriber personal information updates, 
benefit transfers, or de-enrollment. For purposes of this rule, a 
provider's payment to a third-party entity that in turn provides 
commissions to an enrollment representative is subject to this 
prohibition. Likewise, the Commission determines that providers who 
allow agents to retain cash payments for device purchases related to 
the ACP enrollments are providing an incentive based on ACP 
enrollments, and thus this activity is also prohibited under these 
rules. This restriction strikes the balance between a blanket 
commission prohibition that may have been logistically and 
administratively difficult for participating providers given the 
frequent use of this practice for broadband providers in general 
service initiations and the goal of preventing waste, fraud, and abuse 
caused by the financial incentives to enroll any household in the 
Affordable Connectivity Program through the use of commissions. This 
restriction is not intended to prevent providers from using customer 
service representatives to assist consumers in the application and 
recertification processes, but customer service representatives should 
not be compensated based on the number of customer applications that 
are approved. Further, this restriction only applies to commissions 
related to ACP applications, participation, enrollments, or revenue, 
and while it does not prohibit commissions paid for sale of service or 
provider business incentives unrelated to the Affordable Connectivity 
Program, it does not authorize providers to shift commissions that 
would have been paid for ACP applications, enrollments, or revenues to 
other services or business operations. This approach to restricting 
commissions based on ACP applications is supported by commenters that 
recognize this compromise addresses potential improper behaviors while 
not causing overly burdensome implementation for participating 
providers.
d. Provider Annual Certification Requirements
    24. Providers are required to submit to USAC annual officer 
certifications relating to the Affordable Connectivity Program. The 
officer with responsibility for a participating provider's ACP activity 
shall certify, under penalty of perjury, that the participating 
provider has policies and procedures in place to ensure compliance with 
ACP rules. This annual certification is necessary to ensure that all 
ACP providers are vigilant against waste, fraud, and abuse, and are 
undertaking efforts to ensure compliance with the ACP rules, which will 
be particularly important as this program is anticipated to last 
multiple years. At a minimum, the annual certification will require ACP 
providers to attest that they have policies and procedures to ensure 
the eligibility of their subscribers to receive ACP support and for 
ensuring the accuracy and completeness of the information they provide 
to the National Verifier and NLAD; an acknowledgement that providers 
are liable for violations of ACP rules and that their liability extends 
to violations by their agents, contractors, and representatives; and 
other information deemed necessary by the Bureau to ensure that 
providers have a plan for complying with ACP rules. The Commission 
directs the Bureau to develop an annual officer certification and 
submission process with USAC and set a uniform deadline for all 
providers to submit this annual certification.
3. Non-ETC Provider Applications and Approval Process
a. Automatic Approval Process for Providers With Existing Support 
Programs
    25. The Commission adopts an automatic approval process to enable 
non-ETC broadband providers with ``an established program as of April 
1, 2020, that is widely available and offers internet service offerings 
to eligible households and maintains verification processes that are 
sufficient to avoid fraud, waste, and abuse'' to be automatically 
approved upon the filing of information meeting the criteria. 47 U.S.C. 
1752(d)(2)(B). Any non-ETC broadband provider seeking to qualify for 
such automatic approval must file an application describing: (1) The 
states or territories in which in which it plans to participate, (2) 
the service areas in which the provider has the authority, if needed, 
to operate in each State, but has not been designated an eligible 
telecommunications carrier, and (3) a description, supported by 
documentation, of the established program with which the provider seeks 
to qualify for automatic admission to the Affordable Connectivity 
Program.
    26. Established Program as of April 1, 2020. The Commission 
maintains the interpretation it adopted in the EBB Program of what 
constitutes an ``established program'' that is ``widely available'' 
while accounting for the Infrastructure Act's modifications to the 
statute. This requirement encompasses any eligible broadband provider 
that maintains an existing program that was made available by April 1, 
2020, offering broadband to subscribers meeting at least one of the 
criteria in the statute's definition of an eligible household. 
Specifically, providers offering broadband subscribers discounted rates 
based on criteria such as low-income, participation in Federal, State, 
or local assistance programs, or other means-tested eligibility 
criteria qualify for this automatic approval process. 47 U.S.C. 
1752(a)(6)(D). However, the Infrastructure Act removes eligibility for 
households that qualified based on a provider's COVID-19 program or 
having experienced a substantial loss of income since February 29, 
2020. In keeping with the

[[Page 8351]]

directive of Congress, the Commission modifies the requirements of what 
constitutes an ``established program'' to reflect the removal of COVID-
19-specific response programs and other short-term bill forbearance or 
forgiveness programs. A provider seeking to participate in the 
Affordable Connectivity Program can demonstrate an ``established 
program'' for automatic approval by submitting information 
demonstrating that it maintains an existing low-income program that was 
made available by April 1, 2020, to subscribers meeting at least one of 
the criteria in the revised definition of an eligible household. To 
qualify for automatic approval, providers must demonstrate that they 
are offering broadband subscribers discounted rates based on criteria 
such as low-income, participation in Federal, State, or local 
assistance programs, or other means-tested eligibility criteria, and 
must also demonstrate the pre-existing verification process used for 
this existing program. The principal consideration in determining an 
``established program'' for automatic approval is whether subscribers 
receive or were eligible to receive a financial benefit through reduced 
rates. A program is ``widely established'' when it was offered to 
subscribers in a substantial portion of the service provider's service 
area in a particular State.
    27. Required Verification Processes. The Infrastructure Act 
requires that providers seeking automatic approval to participate in 
the Affordable Connectivity Program have established programs that 
maintain verification processes that are ``sufficient to avoid fraud, 
waste, and abuse.'' 47 U.S.C. 1752(d)(2)(B). Providers that have been 
offering a broadband program for eligible households prior to 
submitting applications for automatic approval and are submitting 
applications for automatic approval must describe only the established 
program and participation requirements to meet the approval criteria.
    28. Providers that receive automatic approval to participate in the 
Affordable Connectivity Program will use the National Verifier and the 
National Lifeline Accountability Database (NLAD) to verify household 
eligibility or their own alternative household eligibility verification 
processes, or the combination of both, before seeking reimbursement. To 
ensure the eligibility of the households enrolled through an approved 
alternative verification process, the Commission directs USAC to 
conduct quarterly program integrity reviews to ensure that subscribers 
enrolled through a provider's alternative verification process are 
eligible for the Affordable Connectivity Program.
    29. Timing of Approvals. Providers that file applications 
certifying to and making necessary demonstrations for the criteria 
outlined preceding will receive approval automatically once the Bureau 
confirms all required information was submitted.
b. Expedited Review Process for Non-ETC Providers
    30. The Commission adopts an expedited review process for non-ETC 
providers that do not qualify for automatic application processing and 
are not affiliated with an ETC in the same jurisdiction consistent with 
the EBB Program. Such providers must file an application for expedited 
review to receive approval from the Bureau to participate in the 
Affordable Connectivity Program by establishing a sufficient showing 
that they have met the criteria for expedited review and approval, as 
outlined following.
    (a) A list of states or territories where the provider will offer 
Affordable Connectivity Program services. A provider seeking approval 
must list each jurisdiction in which it seeks to be approved to offer 
ACP-supported services. While the provider need only identify the State 
or territory where it plans to offer qualifying services for purposes 
of its submission to the Bureau, providers should be prepared to 
identify to USAC in their election the postal ZIP code(s) or Census 
Block(s) where Program service will be offered to obtain Service 
Provider Identification Number(s) (SPINs) or Study Area Codes (SACs), 
as necessary.
    (b) A statement identifying the jurisdiction in which the provider 
requires FCC approval and jurisdictions in which the provider is an 
existing ETC. A provider that is designated as an ETC or affiliated 
with an ETC (see 47 U.S.C. 153(2), defining ``affiliate'') in some 
states or territories must submit an application and obtain Bureau 
approval to participate in the Program in states or territories where 
the provider is not designated as an ETC. Providers without ETC 
designations or unaffiliated with ETCs must certify that they are 
authorized to provide broadband services.
    (c) Certification of the provider's plan to combat waste, fraud, 
and abuse. Participating provider applications must include a 
certification that the provider understands and complies with all 
statutory and regulatory obligations, including those described within 
the Order, as a condition of offering ACP-supported services. 
Specifically, a provider must certify that it will:
    (i) Confirm a household's eligibility for the Program through 
either the National Verifier or a Commission-approved eligibility 
verification process prior to seeking reimbursement for the respective 
subscriber;
    (ii) follow all enrollment requirements and obtain all 
certifications as required by the Program, including providing eligible 
households with information describing the Program's eligibility 
requirements, one-per-household rule, and enrollment procedures;
    (iii) interact with the necessary USAC systems, including the 
National Verifier, NLAD, and RAD, before submitting claims for 
reimbursement, including performing the necessary checks to ensure the 
household is not receiving duplicative benefits within the Program;
    (iv) de-enroll from the Program any household it has a reasonable 
basis to believe is no longer eligible to receive the benefit 
consistent with Program requirements;
    (v) comply with the Program's document retention requirements and 
agree to make such documentation available to the Commission or USAC, 
upon request or any entities (for example, auditors) operating on their 
behalf; and
    (vi) agree to the Commission's enforcement and forfeiture 
authority.
c. Alternative Verification Process Applications
    31. The Infrastructure Act allows a participating provider to 
``rely upon an alternative verification process of the participating 
provider,'' to determine household eligibility and enroll households in 
the EBB program, subject to certain conditions. 47 U.S.C. 
1752(b)(2)(B). The statute provides that the ``participating provider 
submits information as required by the Commission regarding the 
alternative verification process prior to seeking reimbursement,'' and 
the Commission has seven days after receipt of the information to 
notify the participating provider if its ``alternative verification 
process will be sufficient to avoid waste, fraud, and abuse.'' Id. This 
approval allows participating providers to verify all household 
eligibility criteria through their own eligibility verification process 
in addition to, or instead of, using the National Verifier.
    32. Participating Provider Eligibility to Use an Alternative 
Verification Process. Providers' alternative verification processes 
must be at least as stringent as methods used by the National Verifier. 
The use of alternative verification processes is limited to providers 
that maintain an existing verification process used for their own self-
subsidized low-

[[Page 8352]]

income program or other purpose unrelated to the EBB Program, 
Affordable Connectivity Program, or similar Federal assistance 
programs. Providers lacking an existing household eligibility 
verification process would not be able to demonstrate that a new 
process would be sufficient to avoid waste, fraud and abuse. These 
providers must use the NLAD, in conjunction with the National Verifier 
and the school-based eligibility as permitted by statute, 47 U.S.C. 
1752(b)(2)(C), to determine household eligibility for the Affordable 
Connectivity Program.
    33. Providers with approved EBB Program alternative verification 
processes can continue to use those processes when enrolling households 
in the Affordable Connectivity Program in a manner consistent with the 
Affordable Connectivity Program's revised eligibility criteria and 
these providers need not seek new Commission approval for their 
alternative verification processes that already are compliant with 
these requirements. However, providers with approved alternative 
verification processes must seek new Commission approval to verify any 
eligibility criteria not originally contained in prior approved 
processes or when the provider seeks to update or modify its approved 
alternative verification process.
    34. Alternative Verification Process Application Requirements. 
Participating providers seeking to use alternative verification 
processes must collect a prospective subscriber's: (1) Full name, (2) 
phone number, (3) date of birth, (4) email address, (5) home and 
mailing addresses, (6) name and date of birth of the benefit qualifying 
person if different than applicant, (7) basis for inclusion in program 
(e.g., SNAP, SSI, Medicaid, school lunch, Pell Grant, income, 
provider's existing program, etc.) and documentation supporting 
verification of eligibility, and (8) certification that the information 
included in the application is true. The provider is required to 
describe the processes it (or a third-party) uses to verify the 
required information and is required to explain why the alternative 
process would be sufficient to avoid waste, fraud, and abuse. The 
provider is also required to explain how it trains its employees and 
agents to prevent ineligible enrollments, including enrollments based 
on fabricated documents. If the alternative verification process fails 
to include any of the required information, the provider is required to 
explain why such information was not necessary to prevent waste, fraud, 
and abuse. Finally, a provider must describe why its established 
program requires approval of an alternative verification process and it 
is required to explain why it proposes to use an alternative 
verification process instead of the National Verifier eligibility 
determinations.
    35. Timing of Alternative Verification Process Approvals. As set 
out by the statute, the ``participating provider submits information as 
required by the Commission regarding the alternative verification 
process prior to seeking reimbursement,'' and the Commission has seven 
days after receipt of the information to notify the participating 
provider if the participating provider's ``alternative verification 
process will be sufficient to avoid waste, fraud, and abuse.'' 47 
U.S.C. 1752(b)(2)(B). The Bureau will issue decisions regarding the 
application or otherwise notify the provider of why the application is 
insufficient within seven business days of the receipt of the 
application. If the provider's application is incomplete, the seven-
business-day timing will not begin until the applicant provides 
additional information requested from the Bureau. Providers that make 
changes to approved procedures are required to inform the Commission in 
writing of those changes by filing a new application documenting the 
changes.

B. Household Eligibility

1. One-Per-Household Limitation
    36. The Affordable Connectivity Program provides ``eligible 
households'' a monthly discount on broadband service and a one-time 
benefit for a connected device. 47 U.S.C. 1752(a)(6), (a)(7)(A). The 
Consolidated Appropriations Act and the Infrastructure Act do not 
define ``household.'' The Commission adopts the definition of 
``household'' used in Lifeline and the EBB Program for the Affordable 
Connectivity Program. The Commission directs USAC to implement measures 
to ensure that during the 60-day transition period, legacy EBB Program 
households cannot receive the transition period benefit amount and the 
affordable connectivity benefit at the same time, even if they submit 
new applications for the Affordable Connectivity Program.
    37. To facilitate the administration of the one-per-household 
limitation, the Commission directs the Bureau, in coordination with 
USAC, to make any necessary revisions to the worksheet used by 
households seeking to enroll in the Affordable Connectivity Program 
that reside at the same address as another household that is already 
enrolled in the Program. Where a participating service provider seeks 
to enroll a subscriber whose eligibility was verified through an 
approved alternative verification process or school-based eligibility 
verification and that subscriber also resides at the same address as 
another household enrolled in the Affordable Connectivity Program, the 
service provider must collect and retain a household worksheet (in 
either online or paper format) and retain any other subscriber provided 
documentation relevant to a determination that the household is not 
receiving more than one ACP benefit under the Program rules. Where a 
service provider conducts eligibility determinations pursuant to an 
approved alternative verification process, those processes must include 
measures to confirm that a household, under the definition the 
Commission adopts here, is not receiving more than one Affordable 
Connectivity Program benefit. The Commission also directs USAC to 
conduct quarterly program integrity reviews to confirm that Affordable 
Connectivity Program subscribers who reside at the same address are in 
compliance with the one-per-household limitation.
2. Participating Service Providers Are Required To Check Their Internal 
Records for Potential Household and Individual Duplicates. This 
Requirement Is Consistent With the Requirement To Implement Policies 
and Procedures for Ensuring That A Household Is Eligible Under Program 
Rules. Qualifying Income and Eligibility Programs
    38. Pursuant to the Infrastructure Act, 47 U.S.C. 1752(a)(6)(A-E), 
a household may qualify for the Affordable Connectivity Program if at 
least one member of the household: (1) Meets the qualifications for 
participation in the Lifeline program (with the modification that the 
qualifying household income threshold is at or below 200 percent of the 
Federal Poverty Guidelines for a household of that size); (2) has been 
approved to receive school lunch benefits under the free and reduced 
price lunch program under the Richard B. Russell National School Lunch 
Act, or the school breakfast program under section 4 of the Child 
Nutrition Act of 1966; (3) has received a Federal Pell Grant under 
section 401 of the Higher Education Act of 1965 in the current award 
year; (4) meets the eligibility criteria for a participating provider's 
existing low-income program, subject to approval by the Commission and 
any other requirements deemed by the Commission to be necessary in the 
public interest; or (5) receives assistance through the WIC Program, 
established

[[Page 8353]]

by section 17 of the Child Nutrition Act of 1996 (42 U.S.C. 1786). The 
Infrastructure Act added WIC as a qualifying program for the Affordable 
Connectivity Program, raised the maximum income for qualifying based on 
household income for purposes of the Affordable Connectivity Program 
from 135 percent to 200 percent of the Federal Poverty Guidelines for a 
household of that size, and eliminated as qualifying criteria 
substantial loss of income since February 29, 2020, and participation 
in a provider's COVID-19 program. The Commission directs USAC to make 
the necessary changes to the relevant program systems, including NLAD, 
National Verifier, and LCS, and to update the acceptable documentation 
guidelines in order to implement the eligibility criteria for the ACP.
    39. Implementation of WIC as a Qualifying Program. The Commission 
directs the Bureau, in conjunction with USAC, to identify and establish 
connection(s) with database(s) that could be used to automatically 
verify eligibility based on participation in WIC. To ensure that 
households can enroll in the Affordable Connectivity Program based on 
participation in WIC in the interim, while also promoting program 
integrity, the Commission directs USAC to develop acceptable 
documentation guidelines for WIC and to make adjustments to those 
criteria as needed to administer the program and guard against 
potential waste, fraud and abuse. The WIC documentation requirements 
should be at least as robust as the documentation requirements that 
USAC uses for other qualifying programs.
    40. Community Eligibility Provision and Similar Provisions, and 
Acceptable Documentation Period for School Lunch and Breakfast 
Programs. Households may enroll based on a household member's 
enrollment in a school or school district that participates in the 
Community Eligibility Provision (CEP), through which schools or school 
districts provide free lunch or breakfast to all students without 
requiring an individual application for a meal benefit.
    41. To prevent waste, fraud, and abuse in the Affordable 
Connectivity Program, households seeking to enroll based on the CEP are 
required to identify the CEP school and provide documentation 
demonstrating that a member of the household attends the identified CEP 
school. Households seeking to qualify based on a child or dependent's 
attendance at a CEP school should also provide the benefit qualifying 
person information when submitting their application. Furthermore, the 
school documentation that households submit must include the name of 
the student enrolled, the school year for which they are enrolled, the 
name and address of the school, and contact information for that school 
to validate that the proof of enrollment is for a CEP school. The 
Commission directs USAC to conduct quarterly program integrity reviews 
of a sample of households that enroll on this basis. USAC will de-
enroll households that do not confirm their eligibility as required by 
the Commission's rules.
    42. Households cannot qualify for the Affordable Connectivity 
Program based on a household member's enrollment in a school that 
participates in USDA Provisions 2 and 3, which, similar to the CEP, 
allow schools to provide free breakfast or lunch to all students 
without requiring individual annual applications. See USDA, Provisions 
1, 2, and 3, https://www.fns.usda.gov/cn/provisions-1-2-and-3 (last 
visited Jan. 14, 2022) (describing Provisions 2 and 3). Also, 
participation in the Summer School Food Service Program, which is 
separate from the school lunch and breakfast program, does not qualify 
a household to participate in the Affordable Connectivity Program.
    43. Households who seek to enroll based on a current student's 
participation in a free and reduced price school lunch or breakfast 
program may qualify based on documentation from the current school year 
or the school year immediately preceding the application for the 
Affordable Connectivity Program. To qualify based on a household 
member's participation in a qualifying school lunch or breakfast 
program, the household member must be a current student at the time the 
ACP application is submitted. Program participants must notify their 
service providers if they are no longer eligible for the Affordable 
Connectivity Program, such as if no member of the household qualifies 
for the free and reduced price school lunch or breakfast programs or no 
member of the household attends school.
3. Enrollment of Eligible Households in the NLAD
    44. Use of the National Lifeline Accountability Database. The NLAD 
will be used as a program-wide tool for enrollment, as well as the 
basis for reimbursement calculations and duplicate checks in all 
states, territories, and the District of Columbia, regardless of a 
State's NLAD opt-out status in the Lifeline program. Participating 
service providers must enroll all consumers participating in the 
Affordable Connectivity Program in the NLAD, regardless of whether the 
subscriber resides in a State that has opt-out status for the Lifeline 
program. The Commission directs USAC to make changes to the NLAD that 
are necessary to implement the rules and requirements that the 
Commission adopts in the Report and Order and to give participating 
service providers advance notice of any NLAD system changes for the 
Affordable Connectivity Program so they can make corresponding changes 
to their systems.
    45. Eligible households can participate in both the Lifeline 
program and Affordable Connectivity Program for the same or different 
services. The Commission directs USAC to enable the NLAD to allow 
subscribers to have separate identifiers for the Lifeline program and 
the Affordable Connectivity Program, which can be associated with the 
corresponding Lifeline provider or Affordable Connectivity Program 
provider, as applicable.
    46. Providers participating in the Affordable Connectivity Program 
must submit to the NLAD, at the time of enrollment, the same types of 
information that providers were required to submit to enroll households 
in the EBB Program. The required information sufficiently identifies 
the enrolled household for purposes of administering the program, 
including duplicate checks and verifying the applicant's status as 
alive, and provides information on the service, device, method of 
verifying eligibility and household qualification for the higher Tribal 
benefit level if applicable. Prior to transmitting subscriber 
information to the NLAD, service providers must also comply with the 
disclosure and consent requirements that the Commission adopts in the 
Report and Order and must submit changes to subscriber information to 
the NLAD within 10 business days.
    47. Service providers are prohibited from enrolling or claiming ACP 
support if USAC cannot verify a subscriber's status as alive unless the 
subscriber provides documentation to demonstrate his or her status as 
alive. The Commission directs USAC to explore additional ways to 
improve the process, for example identifying and notifying service 
providers about potentially deceased subscribers, and to conduct 
program integrity reviews to ensure compliance with this requirement.
    48. Coordination With Lifeline Opt-Out States. USAC and the three 
Lifeline opt-out states of Texas, California, and Oregon have worked 
together closely since the start of the EBB Program to streamline the 
enrollment of Lifeline

[[Page 8354]]

subscribers in those states into the EBB Program by providing weekly 
subscriber eligibility listing updates to USAC. To facilitate the 
enrollment of qualifying households in these states into the Affordable 
Connectivity Program, the Commission directs USAC to continue to work 
with these three states to explore additional ways to streamline and 
improve efficiency in the enrollment of Lifeline subscribers in these 
states into the Affordable Connectivity Program. Consumers in the 
Lifeline opt-out states can separately submit Affordable Connectivity 
Program applications, but they still need to undergo the applicable 
State eligibility processes.
4. Verifying Subscriber Eligibility and Identity
    49. The Infrastructure Act maintained for the Affordable 
Connectivity Program the three methods for verifying household 
eligibility: The National Verifier, an approved service provider 
alternative verification process, and school-based eligibility 
verifications. Legacy EBB Program households who qualified under 
eligibility criteria that are still applicable to the Affordable 
Connectivity Program and households participating in Lifeline do not 
need to submit a new application or new eligibility documentation to 
participate in the Affordable Connectivity Program. However, existing 
Lifeline subscribers who do not already participate in the EBB Program 
will be required to affirmatively consent to participation in the 
Affordable Connectivity Program pursuant to the consumer consent and 
disclosure requirements outlined in the Order. Legacy EBB Program 
households are not required to provide new consent to continue the same 
service through the Affordable Connectivity Program with their current 
provider, except as may be required for the applicable transition path 
for that household.
    50. National Lifeline Eligibility Verifier. The National Verifier 
is a system of systems with connections to State and Federal 
eligibility databases that can automatically check and confirm a 
household's eligibility electronically, followed by manual review of 
eligibility documentation for any applicants whose eligibility cannot 
be verified using an automated data source. The National Verifier has 
already been modified to make eligibility determinations based on the 
eligibility criteria that were added (WIC and income at or below 200% 
of the Federal Poverty Guidelines) and removed (substantial loss of 
income since February 29, 2020) in the Infrastructure Act for purposes 
of the Affordable Connectivity Program.
    51. USAC's existing acceptable documentation guidelines must be 
used where manual reviews are conducted. The Commission directs the 
Bureau to coordinate with USAC to make changes to the documentation 
criteria as necessary to administer the Affordable Connectivity Program 
and promote program integrity.
    52. The ACP Public Notice also sought comment on allowing 
applicants for the Affordable Connectivity Program to verify their 
identity through the last four digits of their social security number 
or other approved identity documentation, as was permitted for the EBB 
Program. See ACP Public Notice, 86 FR at 74045, para. 39. Many 
commenters explained that this flexibility removed obstacles to 
enrollment and resulted in additional consumers applying for the EBB 
Program that would not have applied if they were required to provide 
the last four digits of their social security number. The Commission is 
persuaded that continuing this approach for the Affordable Connectivity 
Program is justified because it supports increased program 
participation. Therefore, the Commission allows consumers seeking to 
apply for the Affordable Connectivity Program to verify their identity 
through the last four digits of their social security number or other 
approved identity documentation, and it encourages consumers to provide 
the last four digits of their social security number because this 
significantly reduces the time required for identity and eligibility 
verifications.
    53. The Bureau, in conjunction with USAC, has already developed 
approval criteria for acceptable identity documentation, which include 
a government-issued ID (such as a State ID), passport, U.S. driver's 
license, U.S. military ID, or Individual Taxpayer Identification 
documentation. The Commission directs the Bureau to coordinate with 
USAC to make changes to the identity documentation requirements as 
necessary to administer the program and promote program integrity and 
the Commission directs the Bureau to work with USAC to explore whether 
other systems or databases could be used to verify the identity of 
consumers who provide alternative documentation instead of the last 
four digits of their social security number.
    54. The Commission does not allow any third party, whether a 
service provider or neutral third party entity, to remotely submit an 
Affordable Connectivity Program application on behalf of a consumer who 
is not physically present with the party providing assistance. Where 
the National Verifier is used to conduct eligibility verifications, 
prospective subscribers must interact directly with the National 
Verifier. Third parties can assist households with completing a paper 
or online application, provided that the applicant is physically 
present and certifies and signs the application.
    55. Eligible households may experience difficulty accessing or 
navigating the National Verifier on their own, and may require 
assistance to complete and submit applications for the Affordable 
Connectivity Program. It may be beneficial to provide access to the 
National Verifier to a limited number of neutral, trusted third party 
entities, such as schools and school districts, or other local or State 
government entities, for purposes of assisting consumers with 
completing and submitting an application for the Affordable 
Connectivity Program, provided that the consumer is physically present 
with the person providing assistance. The Commission directs the 
Bureau, in coordination with USAC, to conduct a one year test pilot for 
granting State or Tribal entity representatives access to the National 
Verifier for purposes of assisting customers with applying for the 
Affordable Connectivity Program. Consistent with current practice in 
the Lifeline program, those that are granted access to the National 
Verifier in this Pilot will be required to register in the 
Representative Accountability Database (RAD). Government entities 
participating in this Pilot (such as schools) may enter into 
partnerships with neutral non-profit organizations for purposes of 
raising awareness about the Affordable Connectivity Program and 
increasing the enrollment of eligible households, provided that the 
government entity informs the Bureau that it is partnering with a 
specific non-profit organization, access to the National Verifier 
through the Pilot is limited to actual representatives of the 
participating government entity, and enrollment activities through the 
National Verifier take place in the government entity's facility or 
other location maintained or operated by the government entity. 
Entities participating in this Pilot (and their neutral non-profit 
partners as applicable) must maintain neutrality with respect to ACP 
participating providers when assisting consumers in connection with 
this Pilot. The Bureau shall determine the scope of this Pilot, and the 
process for identifying potential participants. The Bureau may issue 
public notices or

[[Page 8355]]

engage with stakeholders as needed to obtain information necessary to 
establish this Pilot, and may make any necessary changes to the 
National Verifier to conduct the Pilot. Consistent with the current 
enrollment processes, the Bureau shall make sure that appropriate 
safeguards are in place for the Pilot to protect applicant's personally 
identifiable information. At the completion of the Pilot, the Bureau 
will send a report to the Commission summarizing the results of the 
Pilot.
    56. Eligibility Verifications Through Approved Service Provider 
Alternative Verification Processes. As with the EBB Program, Affordable 
Connectivity Program providers using an approved alternative 
verification process must keep all documentation provided to them from 
the applicant used to make eligibility determinations for the document 
retention period specified herein.
    57. School-Based Eligibility Verifications. Service providers 
relying on school-based eligibility verifications must collect and 
retain documentation of (1) the school providing the information; (2) 
the program(s) that the school participates in; (3) the household that 
qualifies (and qualifying student(s)) and (4) the program(s) the 
household participates in). Service providers must obtain parental 
consent for school-based eligibility verifications. The Commission 
directs USAC to conduct quarterly program integrity reviews to ensure 
that households enrolled based on school-based eligibility verification 
process are eligible for the ACP benefit.
5. Household Usage Requirements
    58. Non-Usage Period and Cure Period. The Commission adopts the 
Lifeline usage rules for the Affordable Connectivity Program. Under 
these rules, where a provider does not assess or collect a monthly fee 
from the subscriber for the supported service, the subscriber must use 
their service at least once every 30 days, and after 30 consecutive 
days of non-usage, the provider is required to notify the consumer that 
they will be de-enrolled if they do not cure their non-usage in 15 
days. The Commission requires de-enrollment of ACP subscribers for non-
usage. Providers are prohibited from claiming support for a subscriber 
who has not used their service in the last consecutive 30 days unless 
the subscriber cures their non-usage within 15 days.
    59. The 30-day usage and 15-day cure period for the Lifeline 
program, for non-use of services where the end-user is not assessed and 
does not pay a fee, sufficiently balance consumer interests and fiscal 
responsibility for purposes of the Affordable Connectivity Program. The 
Commission also finds that there are significant benefits to applying a 
uniform subscriber usage requirement for both the Lifeline program and 
the Affordable Connectivity Program. Having inconsistent usage rules 
for Lifeline and the longer-term Affordable Connectivity Program would 
likely result in significant consumer confusion and complicate provider 
compliance given that many households will participate in both programs 
and certain households may use both benefits on the same service. Where 
a household uses a Lifeline benefit and an affordable connectivity 
benefit for the same service from the same provider, to avoid consumer 
confusion, upon the effective date of the subscriber usage requirements 
for the Affordable Connectivity Program, the provider should track each 
subscriber's non-usage using the same rolling 30-day period that it is 
using to track the subscriber's usage for Lifeline.
    60. The Commission declines to limit the subscriber usage 
requirements to free-to-the-end-user wireless service because that 
approach would arbitrarily distinguish between free-to-the-end-user 
wireline and wireless service, while still allowing service providers 
to continue receiving an ACP benefit for free-to-the-end-user service 
where the subscriber is not actually using their service. The 
subscriber usage requirements apply to all modalities of free-to-the-
end-user ACP service.
    61. If the participating provider bills a subscriber on a monthly 
basis and collects or makes a good faith effort to collect any money 
owed within a reasonable amount of time, the subscriber will not be 
subject to the usage requirements. Participating providers that fail to 
take such steps and do not de-enroll subscribers pursuant to the non-
usage requirements the Commission adopts for the Affordable 
Connectivity Program may be subject to enforcement action or 
withholding of support.
    62. Definition of Usage. The Commission adopts the definition of 
usage under the EBB Program and Lifeline for the Affordable 
Connectivity Program. This definition lists other activities, aside 
from the subscriber's actual use of the supported free-to-the-end-user 
service, that are considered ``usage'' for purposes of the subscriber 
usage requirement. The Commission does not expand the list of 
activities that constitute usage to include activation of a modem 
because the activation of a modem without actual usage is not a strong 
indicator of a subscriber's intention to use their service and the risk 
of waste is too great to justify the expansion of the definition of 
``usage'' to include simply activating a modem without actual use of 
the supported service.
    63. Usage Tracking and Documentation Requirements. Service 
providers are responsible for tracking subscriber usage and retaining 
appropriate usage documentation for purposes of compliance with the 
non-usage requirements of the Affordable Connectivity Program. The 
Commission directs the Bureau, the Office of Managing Director (OMD), 
and USAC to continue to use audits and program integrity reviews to 
monitor participating provider compliance with the subscriber usage 
requirements.
    64. Annual Subscriber Recertification Requirement. The Commission 
adopts an annual (i.e., once per calendar year) recertification 
requirement to ensure the continued eligibility of participating 
households. ACP subscribers will be given 60 days to respond to a 
recertification effort. Subscribers who do not respond or fail ACP 
recertification shall be de-enrolled.
    65. ACP households who are also enrolled in Lifeline may rely on 
their Lifeline recertification for purposes of the annual 
recertification requirement for the Affordable Connectivity Program, 
which will reduce administrative burdens for ACP households and 
participating service providers. Where a household enrolled in both 
Lifeline and the Affordable Connectivity Program does not respond or 
fails recertification for Lifeline, the subscriber will still have an 
opportunity to demonstrate their continued eligibility for the 
Affordable Connectivity Program. The Commission also directs USAC to 
identify and implement ways to coordinate consumer recertification 
outreach for the two programs to minimize consumer response burdens and 
reduce the potential for consumer confusion.
    66. For purposes of the annual recertification requirement, 
consistent with the approach in Lifeline, USAC will conduct 
recertifications for ACP subscribers whose eligibility was verified 
through the National Verifier processes and for whom the automated 
database connections in the National Verifier will be used whenever 
possible to recertify eligibility. The Commission directs USAC to make 
available an online form, paper form, and Interactive Voice Response 
(IVR) option for recertifying the eligibility of ACP subscribers whose 
eligibility cannot be verified through the National Verifier automated 
database connections. For

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USAC-conducted recertifications, USAC will be responsible for de-
enrolling subscribers who do not respond or fail ACP recertification. 
For USAC-conducted subscriber recertifications, the Commission directs 
USAC to develop processes to inform participating providers about the 
status of USAC's recertification efforts and results for their specific 
ACP subscribers.
    67. For households who enrolled in the Affordable Connectivity 
Program based on an approved alternative verification process or 
school-based eligibility verification, service providers will be 
required to conduct the subscriber recertification. For households 
enrolled in both Lifeline and the Affordable Connectivity Program, for 
purposes of recertifying eligibility for Lifeline, subscribers can only 
be recertified through the National Verifier or State process for the 
Lifeline NLAD opt-out states as applicable. Where the National Verifier 
did not initially verify subscribers' eligibility (such as where a 
provider's approved alternative verification process includes 
eligibility criteria that are unique to the provider's low-income 
program or where the provider, but not USAC, has already established a 
process with specific schools to verify subscriber eligibility based on 
participation in a free and reduced price school lunch or breakfast 
program) but the service provider decides to stop using these non-
National Verifier methods to verify subscriber eligibility, the service 
provider shall notify USAC of that decision and USAC will recertify the 
impacted subscribers. Service providers conducting recertification 
based on these non-National Verifier subscriber eligibility 
verification methods are required to collect and retain the necessary 
subscriber eligibility documentation. In addition, where service 
providers conduct subscriber recertifications for the Affordable 
Connectivity Program, they must de-enroll subscribers who do not 
respond or are no longer eligible.
    68. For purposes of this annual recertification requirement, new 
ACP subscribers who enrolled on or after December 31, 2021, will not be 
required to recertify their ACP eligibility until 2023. Legacy EBB 
subscribers who transitioned to the Affordable Connectivity Program 
will need to recertify their eligibility for the ACP by December 31, 
2022. Legacy EBB Program subscribers who qualified for the EBB Program 
based on substantial loss of income or a provider's COVID-19 Program 
and already demonstrated their ACP eligibility before the end of the 
60-day transition period will not be required to recertify for purposes 
of the Affordable Connectivity Program requirements again until 2023.
6. De-Enrollments
    69. The Commission adopts for the Affordable Connectivity Program 
the same de-enrollment rules it adopted for the EBB Program and the 
Lifeline program, and continues to allow USAC to directly process de-
enrollment requests from subscribers. For general de-enrollments and 
de-enrollments for duplicative support, service providers must process 
the de-enrollment within five business days after the expiration of the 
subscriber's deadline to demonstrate eligibility, or within five 
business days of notification from the Administrator that the 
subscriber is receiving more than one benefit per household. For de-
enrollments initiated by the subscriber, the service provider must de-
enroll the subscriber within two business days after the de-enrollment 
request.
    70. ACP households who are subject to the usage requirement and do 
not cure their non-usage within 15 days must be de-enrolled, and 
subscribers who do not respond or fail recertification must also be de-
enrolled. For de-enrollments for no response or failure to recertify, 
service providers must de-enroll the subscriber within five business 
days of the subscriber's time to respond to the recertification 
efforts. As with Lifeline and the EBB Program, when a service provider 
de-enrolls a subscriber from the Affordable Connectivity Program, the 
service provider must transmit to the NLAD the date of the Affordable 
Connectivity Program de-enrollment within one business day of de-
enrollment.

C. Covered Services and Devices

    71. Services. The Infrastructure Act permits eligible households 
participating in the Affordable Connectivity Program to receive a 
discount off the cost of broadband service and certain connected 
devices, and participating providers to receive a reimbursement for 
providing such discounts. The Infrastructure Act defines ``internet 
service offering'' as broadband internet access service provided to a 
household by a broadband provider, and retains the definition of 
broadband internet access service provided in 47 CFR 8.1(b). The 
Infrastructure Act further provides that the ``affordable connectivity 
benefit'' means a ``monthly discount for an eligible household applied 
to the actual amount charged to such household.'' The Commission 
interprets the Infrastructure Act's reference to a ``monthly discount . 
. . applied to the actual amount charged'' to exclude broadband service 
products that are based primarily on the data allowance of the product 
(for example, a purchase of 1 GB of data for $5.00) and are sold 
separate from a monthly recurring service plan. The Infrastructure 
Act's application of the affordable connectivity benefit as a monthly 
discount off the actual amount charged to the subscriber means that 
service plans that are already offered with no fee to the end user--for 
example, as a result of Lifeline program support or other benefit 
programs--are not eligible for additional or duplicative support from 
the Affordable Connectivity Program.
    72. The Infrastructure Act adds a requirement that a participating 
provider ``shall allow an eligible household to apply the affordable 
connectivity benefit to any internet service offering of the 
participating provider, at the same terms available to households that 
are not eligible households.'' The Commission interprets ``any internet 
service offering,'' for any particular customer, to include any 
broadband internet plan in which the customer is currently enrolled 
(regardless of whether it is a legacy grandfathered plan) as well as 
any broadband internet plan that a provider currently offers to new 
customers. The requirement that legacy or grandfathered plans be 
eligible for reimbursement does not require that providers offer such 
legacy or grandfathered plans to other customers, including ACP-
eligible customers, that are not already on such plans. However, 
providers may not exclude any of their generally available or actively 
sold internet service offerings from the affordable connectivity 
benefit.
    73. Due to the volume and unique complexities of coding and 
including legacy or grandfathered plans in the Affordable Connectivity 
Program, the Commission finds that providers should have an additional 
60 days after publication of the Order in the Federal Register to 
complete necessary changes and ensure that the affordable connectivity 
benefit can be applied to all generally available and currently sold 
plans. While providers must also allow existing subscribers to apply 
the affordable connectivity benefit to legacy or grandfathered plans, 
the Commission considers this requirement satisfied if providers 
accommodate requests by existing subscribers to apply the affordable 
connectivity benefit to legacy or grandfathered plans on a case-by-case 
basis no later than 60 days after the request.

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    74. Taxes and governmental fees may be included as part of the 
reimbursable internet service offering, since they are part of the 
``amount charged'' to a consumer. By allowing the benefit to be applied 
to taxes and governmental fees, providers can extend to consumers $30 
``all-in'' broadband offers that include taxes and governmental fees 
and can avoid charging small bills for taxes and fees alone.
    75. The Commission finds that the Infrastructure Act's requirement 
that providers allow an eligible household to apply the Affordable 
Connectivity Program benefit to ``any internet service offering of the 
participating provider, at the same terms available to households that 
are not eligible households'' does not preclude providers from making 
internet service offerings that are only available to ACP subscribers, 
provided that that the terms are at least as good as plans that are 
available to non-eligible households, and that providers cannot prevent 
subscribers from applying the affordable connectivity benefit to other 
available internet service offerings or restricting such internet 
service offerings in any way. However, to ensure minimal disruption to 
existing billing systems and processes, the Commission declines to 
require that providers participating in the Affordable Connectivity 
Program make available plans not available in a given geographic area 
that they offer elsewhere.
    76. The Commission will collect data on the service plan 
characteristics--such as upload and download speeds, data allowances, 
and co-payment--associated with a subscriber's service plan, so it can 
gauge whether the Affordable Connectivity Program is providing value to 
households beyond what the Lifeline program offers and whether that 
value is in-line with market rates for broadband services, due to the 
immense value such data could provide. The Commission directs the 
Bureau and the Office of Economics and Analytics (OEA), with support 
from USAC, to determine appropriate avenues to collect service plan 
characteristics, such as possible future modifications to NLAD or 
conducting a provider survey, and the specific information that service 
providers must submit. The Commission directs the Bureau and OEA to 
balance the value of the information collected against the burden to 
service providers and must limit their efforts to those necessary to 
carry out the purposes of the Affordable Connectivity Program. 
Consumers would benefit from knowing which providers offer plans fully 
covered by the household discount and the availability of such plans in 
their area, so, the Commission directs USAC to make available, where 
possible, information about the availability of plans fully covered by 
the household discount. In doing so, USAC should consider planned 
information collections as well as other avenues for collecting this 
information while minimizing burden to providers.
    77. Minimum Service Standards. Congress intended that ``any 
internet service offering'' be eligible for support in the Affordable 
Connectivity Program, 47 U.S.C. 1752(b)(7), and imposing minimum 
service standards would contradict the Infrastructure Act. Internet 
service offerings must include a broadband connection (as defined in 47 
U.S.C. 1752(a)(8))--fixed or mobile--that permits households to rely on 
these connections for the purposes essential to telework, remote 
learning, and telehealth.
    78. Bulk purchasing arrangements and Multiple Dwelling Units 
(MDUs). Eligible households that live at a single address, such as 
senior and student living, mobile home parks, apartment buildings, and 
Federal units, and that receive service as part of a bulk billing 
arrangement where the households are not directly billed for services 
by their internet service provider, but instead pay a monthly fee for 
broadband services to their landlord, should be permitted to 
participate in the Affordable Connectivity Program. In those 
situations, the participating provider claiming reimbursement must 
retain documentation demonstrating that the amount claimed by the 
provider is fully passed through to the eligible household as a 
discount off the monthly price that the eligible household otherwise 
would have paid to the bulk purchaser. Providers are required to retain 
documentation demonstrating the identity of the entity or entities 
through which the discount was passed, the eligible households who 
received the service, and consent by the eligible household allowing 
the participating provider to seek reimbursement. Homeless shelters, 
school districts, and libraries can also be considered bulk purchasers 
and allowed in the Affordable Connectivity Program, provided that the 
arrangements are set up in compliance with this Order.
    79. Reimbursement will be permissible in MDUs--as it is with the 
typical provider/household relationship--where applying the affordable 
connectivity benefit to the household's broadband bill will result in 
the household not having a cost for broadband. In cases where the 
household does not pay a fee for the service, either to the provider or 
a bulk purchaser/aggregator, but the fee is paid by another entity, the 
service cannot be claimed for Affordable Connectivity Program support. 
However, if the household stops having the third party pay for the 
household's bill and instead seeks the discount through the Affordable 
Connectivity Program, the provider may seek reimbursement for the 
service.
    80. In many cases, an MDU such as a large apartment building may 
have Wi-Fi deployed to an entire building as the broadband internet 
available to its residents. Such service qualifies as broadband 
internet access service eligible for reimbursement in the Affordable 
Connectivity Program, but eligible households must be charged a monthly 
fee for such service to be reimbursable.
    81. A certification by the bulk purchasing entity that the discount 
from the service provider is fully passed through to the eligible 
households located in the MDU is not sufficient to demonstrate 
compliance with program rules. Documentation serves a critical role to 
protect against abuse in the program, and documentation requirements 
are particularly important where there is not a direct relationship 
between the broadband provider and the eligible household. The 
Commission therefore declines to allow a certification from the bulk 
purchaser as evidence that the discount has been passed through to the 
eligible household.
    82. Bundled Service Offerings. Bundled service offerings such as 
those offering voice, data, and texting could be eligible for the 
affordable connectivity benefit, but the full benefit will not be 
allowed to be applied to the full price of broadband-bundled video 
service. While reimbursement cannot go toward the whole value of a 
bundle that includes video, the data, voice, and/or text messaging 
portions of the bundle can be reimbursable, but the video portion of 
any bundle must be apportioned out before determining the amount that 
is reimbursable for broadband purposes of the Affordable Connectivity 
Program. Fixed and mobile bundled services can be supported by the 
Affordable Connectivity Program, with the understanding that households 
with such bundles will only be entitled to a single benefit.
    83. Associated Equipment and Other Customer Premises Equipment. The 
affordable connectivity benefit discount must be provided for internet 
service and associated equipment necessary for the transmission 
functions of the supported internet service offering,

[[Page 8358]]

including monthly rental costs for equipment such as modems, routers, 
and hotspot devices and antennas. Associated equipment should be 
eligible to be reimbursed as part of the service benefit.
    84. Connected Devices. A participating provider that provides an 
ACP-supported broadband service to a household may be reimbursed up to 
$100 for a connected device delivered to the household, provided that 
the charge to such eligible household is more than $10 but less than 
$50 for such connected device (defined in the statute as a laptop, 
desktop computer, or a tablet). Because the statute does not include 
cellular phones or smartphones in the definition of ``connected 
devices,'' a connected device cannot include devices that can 
independently make cellular calls such as large phones or ``phablets.''
    85. Minimum System Requirements for Connected Devices. A connected 
device supported by the Affordable Connectivity Program must support 
video conferencing platforms and other software essential to ensure 
full participation in online learning, be Wi-Fi enabled, have video and 
camera functions, and be accessible to and usable by those with 
disabilities. The device must be able to connect to all Wi-Fi access 
points and cannot be limited to use with any specific service provider.
    86. Application of Section 54.10. The requirements of 47 CFR 54.10 
apply to the Affordable Connectivity Program. Thus, Affordable 
Connectivity Program funds cannot be used to purchase or obtain a 
connected device (i.e., laptop, desktop computer, or tablet) that is on 
a Covered List--i.e., ``poses an unacceptable risk to the national 
security of the United States or the security and safety of United 
States persons.'' 47 CFR 1.50002(b)(1). Providers must certify that the 
connected device that they are seeking reimbursement for complies with 
47 CFR 54.10.

D. Reimbursement

1. Reimbursement for the Affordable Connectivity Benefit
    87. The Commission adopts in its rules the Infrastructure Act's 
$30.00 standard monthly discount and reimbursement rate. To be 
reimbursed, providers are required to submit a reimbursement request 
based on the number of subscribers enrolled in NLAD on the snapshot 
date. Providers must review the snapshot report, validate the 
subscribers for which they are requesting reimbursement, indicate a 
reason for any unclaimed subscribers, and review, correct, and certify 
the requested reimbursement amount. The Commission will use the 
Lifeline Claims Systems to manage the reimbursement process for the 
Affordable Connectivity Program and will apply the uniform snapshot 
date approach for capturing the subscribers enrolled in NLAD on the 
first of the month that are eligible to be claimed for that month. The 
Commission declines to permit partial month, pro-rated reimbursement at 
this time.
    88. The Commission requires that, when applying the affordable 
connectivity benefit to a Lifeline service, providers first apply the 
full Federal Lifeline subsidy and then the Federal affordable 
connectivity benefit. States may offer their own Lifeline and/or other 
broadband affordability benefits, and the Commission will defer to any 
State on how that additional benefit should be applied in conjunction 
with the Federal affordable connectivity benefit.
    89. To ensure that providers have sufficient time to submit 
certified reimbursement claims and USAC can administer the program 
efficiently, providers are allowed six months from the uniform snapshot 
date, or the following business day in the event six months falls on a 
weekend or holiday, to submit to USAC their certified reimbursement 
claims for both service and connected device support for households 
captured on the snapshot report.
    90. Providers may submit upward revisions to their certified claims 
within the same six-month time period after the snapshot date that 
certified reimbursement claims are due. Providers must disclose non-
compliant conduct and return improperly received funds from this 
Program to the Commission and can submit downward revisions beyond the 
six-month time period. Moreover, providers cannot delay contacting USAC 
about the need to repay improperly received funds or downwardly revise 
their claims if they become aware of an improper payment.
    91. The Commission delegates to the Bureau and OMD the authority to 
establish a different timeline to submit certified reimbursement claims 
and revisions to such claims as a result of projections and forecasts 
of when the Affordable Connectivity Fund is winding down or to the 
extent necessary to comply with government-wide Federal financial 
statutes and/or U.S. Treasury procedures. See, e.g., 31 U.S.C. 3528; 
see also 47 CFR 0.11(a)(3)-(4), (a)(8) (scope of OMD's delegated 
authority); 47 CFR 0.5(e) (requiring Bureau and Office coordination 
with the Office of the Managing Director on recommendations ``that may 
affect agency compliance with Federal financial management 
requirements'').
    92. Tribal Lands Benefit. The Affordable Connectivity Program 
retains the enhanced, $75.00 per month subsidy for eligible households 
located on Tribal lands. The Commission uses the same definition of 
Tribal lands as used in the Lifeline and EBB Programs, including 
certain lands near the Navajo Nation treated as Tribal lands. Existing 
USAC processes will be used to verify eligibility of households on 
Tribal lands. The definition of Tribal lands from Lifeline includes any 
land designated as such pursuant to the designation process in 47 CFR 
54.412.
    93. The Infrastructure Act provides for a separate enhanced benefit 
for households that are served by providers in high-cost areas. 47 
U.S.C. 1752(a)(7)(B). The Commission seeks comment on the 
implementation of this enhanced benefit in the Further Notice of 
Proposed Rulemaking.
    94. Certification Requirements. The Infrastructure Act requires 
providers to certify that each household for which the provider is 
seeking reimbursements will not be charged an early termination fee if 
it later terminates a contract, that each household was not subject to 
a mandatory waiting period, and that each household will be subject to 
a participating provider's generally applicable terms and conditions. 
Providers are also required to certify that each household for which 
the provider is claiming reimbursement for a connected device discount 
has been charged the required co-pay. Providers claiming a household 
whose eligibility was determined by the provider's alternative 
verification process must also certify that such households were 
verified by a process that was designed to avoid waste, fraud and 
abuse. The Commission requires that these certifications accompany each 
request for reimbursement by participating providers, that each 
certification be submitted under penalty of perjury, and that the 
provider it has not charged and will not charge the household for the 
amount the provider is seeking for reimbursement. The Commission 
directs USAC to make any adjustments necessary to the LCS to ensure 
that providers are prompted to certify the statements included in 47 
U.S.C. 1752(b)(6).
2. Reimbursement for Connected Devices
    95. A provider may not receive reimbursement for more than one

[[Page 8359]]

connected device per household, 47 U.S.C. 1752(b)(5), and a household 
that received a connected device through the EBB Program may not 
receive another through the Affordable Connectivity Program.
    96. A market value-based approach will be used for reimbursement of 
connected devices, with the enhanced accountability requirements 
discussed following. Under the market-based approach, providers may be 
reimbursed up to the statutory $100 limit, provided that the amount of 
reimbursement together with the co-pay does not exceed the market value 
of the connected device. 47 U.S.C. 1752(b)(5). Providers that seek 
device reimbursement through the Affordability Connectivity Program 
will be required to submit device characteristics as well as 
characteristics and retail price information about analogous devices. 
The price information from at least one of these analogous devices must 
be available from a major retailer, such as Amazon, Apple, B&H, BJ's, 
Barnes and Noble, Best Buy, Lenovo, Micro Center (Micro Electronics), 
Microsoft, Newegg, Office Depot, Office Max, Sam's Club, Samsung, 
Staples, Target, TigerDirect, and Walmart (not including third-party 
sellers on any of these retailers' websites). If a provider is unable 
to submit such information about comparable products, it will be 
required to substantiate its claim for the market value.
    97. Providers seeking to claim reimbursement for connected device 
discounts must submit information regarding the device supplied to the 
household prior to claiming reimbursement for a connected device. The 
provider must submit information to USAC about device type, device 
make, device model, device characteristics (e.g., screen size, storage, 
memory), subscriber ID of the household that received the device, date 
the device was delivered to the household, method used to provide the 
device (shipped, in store, or installed by provider), market value of 
the device, amount paid by the household to the provider for the 
device, and supporting documentation. The Commission also directs USAC 
to adjust the reimbursement amount for any connected device claim if 
the market value asserted by the provider does not reflect market value 
as compared to analogous devices offered by other participating 
providers or publicly available information.
    98. Providers seeking reimbursement for a connected device must 
certify, under penalty of perjury, that the reimbursement claim for the 
connected device plus the co-pay amount collected from the customer 
does not exceed the device's market value. In addition, providers are 
required to retain any materials that document compliance with these 
requirements and demonstrate the accuracy of the information provided 
to USAC and make them available for inspection upon request.
    99. Participating providers must actually charge the household a 
co-payment of more than $10 but less than $50 before they can receive 
reimbursement of up to $100 for a connected device. Providers are 
required to retain documentation proving that the eligible household 
made a compliant financial contribution towards the cost of the 
connected device, as well as the amount thereof, before the provider 
seeks reimbursement. Providers must update their election notices to 
include information on device type, device make, device model, and 
wholesale cost of the device. Proof of consumer payment of the 
appropriate co-pay amount must be provided upon request by USAC, the 
Bureau, the Enforcement Bureau (EB), or any other program auditor or 
investigator.
    100. A provider may seek reimbursement for a connected device 
provided to a household that had been receiving an ACP-supported 
service from that provider at the time the device was supplied to the 
household, even if the household subsequently transfers its ACP service 
benefit to a different provider. The Commission directs USAC to 
maintain the connected device dispute process implemented for the EBB 
Program.

E. Consumer Protection

1. Credit Check Prohibition
    101. The Infrastructure Act prohibits providers from ``requir[ing] 
the eligible household to submit to a credit check in order to apply 
the affordable connectivity benefit.'' 47 U.S.C. 1752(b)(7)(A)(ii). The 
Commission finds that this provision bars providers from considering 
the results of a credit check before deciding to enroll a household in 
the Affordable Connectivity Program, but it does not prohibit a 
provider from running credit checks that are routinely used as part of 
the provider's sign-up process for all consumers. Providers may not use 
credit check results to determine to which ACP-supported internet 
service plan an eligible household can apply their affordable 
connectivity benefit, to restrict the type of plans available to a 
household, or to decline to transfer a currently enrolled household's 
affordable connectivity benefit.
    102. The Infrastructure Act does not prevent providers from running 
a credit check or from using the results of the credit check in other 
circumstances unrelated to the affordable connectivity benefit. The 
credit check provision does not prohibit providers from relying on the 
results of a credit check for an ACP-eligible household to determine 
the devices and equipment not supported by the Affordable Connectivity 
Program that may be offered to the household. The statute does not 
prohibit providers from using credit checks to determine a household's 
eligibility to access bundled services so long as the credit check is 
used to determine eligibility to receive the service that is not 
eligible for the affordable connectivity benefit and the household can 
receive the broadband component of the bundle on a standalone basis 
regardless of the results of the credit check. Finally, the 
Infrastructure Act's credit check provision should not be interpreted 
as preventing providers from running a credit check consistent with the 
requirements of the Federal Trade Commission's ``Red Flag Laws.''
2. Non-Payment
    103. The Infrastructure Act specifies that ``a participating 
provider [may] terminat[e] the provision of broadband internet access 
service to a subscriber after 90 days of nonpayment.'' 47 U.S.C. 
1752(b)(7)(A)(ii). The 90 consecutive days of non-payment commences on 
the due date of the bill where payments made after that point for ACP-
supported services would be past due. A bill is not considered 
``unpaid''--and thus, there is no ``nonpayment''--until after the 
payment due date specified on the bill has passed and the subscriber 
has failed to satisfy the obligation to pay the bill in a timely 
manner. Accordingly, for purposes of 47 U.S.C. 1752(b)(7)(B), the 90-
day period of ``nonpayment'' begins on the due date specified on the 
bill when the bill may be deemed ``unpaid'' and late fees may begin to 
accrue. This provision does not apply to prepaid plans because prepaid 
customers do not receive invoices and are not expected to pay at 
monthly intervals.
    104. The Commission interprets the provision that allows providers 
to terminate service after 90 days of non-payment, in conjunction with 
the requirement that providers cannot decline to enroll an eligible 
household based on any ``past or present arrearages with a broadband 
provider,'' to mean that although a provider may terminate a 
household's broadband service after

[[Page 8360]]

90 days of non-payment, the provider cannot deny a household's re-
enrollment based on past or present arrearages. When providers re-
enroll ACP households whose service is terminated for non-payment, they 
may limit the offerings made available to the household to offerings 
that would be fully covered by the affordable connectivity benefit and 
any other applicable benefit, such as Lifeline, will protect consumers 
and providers by limiting the accrual of any additional ACP-related 
debt. Households that are downgraded from their current grandfathered 
or legacy plan must be permitted to return to that grandfathered or 
legacy plan at a later time. However, a provider may decline to return 
a household to a grandfathered or legacy plan if the provider would 
have been within its rights to remove the household from that plan 
irrespective of that household's participation in Affordable 
Connectivity Program. Limiting the plans available to a household as 
described here would not constitute inappropriate downselling.
    105. The Commission clarifies that the termination for non-payment 
is limited to debts associated with any out-of-pocket expenses for the 
ACP-supported service, and providers should not consider any non-
payment associated with non-ACP supported services, EBB-supported 
service, or other debt that predates the Affordable Connectivity 
Program.
    106. Providers may downgrade a household to a lower-priced service 
plan once the consumer enters a delinquent status after the bill due 
date to mitigate the non-payment amount upon advance notice to the 
household of the change in service. Such a transfer of a household in 
non-payment status to a lower-priced service plan in order to mitigate 
the non-payment does not constitute inappropriate downselling.
    107. A provider must take apply the affordable connectivity benefit 
to a household's account no later than the start of the first billing 
cycle after the household's enrollment. A provider must pass through 
the discount in order to claim reimbursement for the discount in the 
Affordable Connectivity Program. Providers may not, for example, charge 
a customer for the internet service offering, certify a claim for 
reimbursement, and then later provide the discount to the customer only 
after receiving the reimbursement. Failure to comply with these rules 
may result in administrative forfeitures or other penalties.
    108. A provider cannot de-enroll a household for non-payment if the 
provider has failed to timely apply the benefit to the household's bill 
consistent with this Order. To track households that could be de-
enrolled for non-payment associated with the ACP-supported service, as 
well as to support tracking households which would be subject to the 
non-usage rules, the Commission directs USAC to collect from providers 
information regarding whether a household is assessed and charged a fee 
for the ACP-supported service. Providers must certify, under penalty of 
perjury, that the affordable connectivity benefit was in fact applied 
to the households for which the provider is submitting a claim for 
reimbursement. Providers must document and retain proof that the 
program benefit was in fact applied to the household's account prior to 
the provider submitting a claim for reimbursement for that household.
    109. Participating providers must give adequate notice to a 
household of their delinquent status before terminating the household's 
service for non-payment. The provider must provide the household 
written notice of the possible termination 60 and 30 days prior to the 
termination date, which must be set from the due date of the bill. The 
written notice must include the balance due to the provider, the due 
date for the outstanding balance, the last date of service if the 
outstanding balance is not paid, instructions for payment, and the 
provider's customer service phone number. Notice must also be provided 
in formats accessible to individuals with disabilities, and may be 
delivered via email, mail, billing insert or statement, or text 
message. Providers must retain documentation of notice sent to the 
household before the household is disconnected for non-payment. 
Households that dispute an allegation of non-payment with the provider 
may file a complaint with the FCC's Consumer Complaint Center.
3. Consumer Complaint Process
    110. Dedicated ACP Complaint Process. The Infrastructure Act 
requires the Commission to establish a dedicated complaint process for 
Affordable Connectivity Program participants to file complaints about 
the compliance of participating providers with program rules and 
requirements, including complaints ``with respect to the quality of 
service received under the Program.'' 47 U.S.C. 1752(b)(9)(A). The 
Commission is adding a dedicated pathway within its existing consumer 
complaint process in the Consumer Complaint Center to file ACP-related 
complaints, including notification to providers that the complaint 
involves the Affordable Connectivity Program, clear direction to 
consumers on how to correctly file an ACP complaint, and dedicated FCC 
staff from Consumer and Governmental Affairs Bureau (CGB) to review and 
process the complaints.
    111. Provision of Information on the Dedicated ACP Complaint 
Process. The Infrastructure Act also requires participating providers 
to provide Affordable Connectivity Program participants with 
information on the Commission's dedicated complaint process. 47 U.S.C. 
1752(b)(9)(B). The Commission requires participating providers to 
prominently display the Commission's contact center phone number and 
the website address for the Consumer Complaint Center on the 
subscriber's bill and on the provider's ACP web page. The Commission 
also requires participating providers to inform consumers of their 
right to file a complaint with the Commission regarding an ACP-
supported service or any difficulty enrolling with the provider. 
Participating providers must provide this information to ACP consumers 
in the formats proposed in the ACP Public Notice. ACP Public Notice, 86 
FR at 74043, para. 87 Reports Regarding Consumer Complaints. The 
Infrastructure Act also requires the Commission to regularly issue 
public reports regarding consumer complaints alleging provider non-
compliance with the Affordable Connectivity Program rules. 47 U.S.C. 
1752(b)(9)(D). The Commission directs CGB, in coordination with the 
Bureau, to regularly issue public reports regarding consumer complaints 
alleging provider non-compliance with ACP rules, to make these reports 
available to the public via the FCC website, and, in coordination with 
the Bureau and the Senior Agency Official for Privacy, to ensure that 
any personally identifiable information (PII) be excluded from 
complaint reports and data made publicly available to ensure compliance 
with the Privacy Act, 5 U.S.C. 552a.
    112. Investigations and Enforcement. The Infrastructure Act also 
requires the Commission to act expeditiously to investigate potential 
violations of program rules and requirements and enforce compliance, 
and it permits the Commission to impose forfeiture penalties to enforce 
compliance. 47 U.S.C. 1752(b)(9)(C)(i)-(ii). The Commission will use 
its existing, statutorily permitted enforcement powers to initiate 
investigations of program rule violations and directs EB, in 
coordination with the Bureau and law enforcement as applicable, to 
expeditiously investigate potential violations of and enforce the ACP 
rules.

[[Page 8361]]

4. Additional Consumer Protections
a. Administrative Procedure
    113. The Infrastructure Act directs the Commission to promulgate 
certain specific consumer protection rules ``after providing notice and 
opportunity for comment in accordance with [5 U.S.C.] 553,'' which sets 
forth the rulemaking requirements of the Administrative Procedure Act 
(APA). 47 U.S.C. 1752(b)(11)(A). At the same time, 47 U.S.C. 1752(h) 
provides an exemption from APA requirements for ``regulation[s] 
promulgated under subsection (c),''and 47 U.S.C. 1752(c) requires that 
the Commission ``promulgate regulations to implement'' these 
requirements by a date ``not later than 60 days after enactment of this 
Act'' and specifies initial comment and reply comment periods of 20 
days each.
    114. The Commission believes that there is no irreconcilable 
conflict between these provisions and that, read together, they support 
the adoption of the 47 U.S.C. 1752(b)(11) consumer protection rules 
here. By referring to the APA specifically in 47 U.S.C. 1752(b)(11), 
Congress intended to emphasize that the Commission should carefully 
consider the input of commenters in crafting the consumer protection 
rules. Given the tight, statutorily mandated timeframe for standing up 
the Affordable Connectivity Program and the essentiality of consumer 
protection rules to the proper functioning of the program, the 
Commission finds that the notice and comment process the Commission has 
provided, in accordance with 47 U.S.C. 1752(c), is sufficient to 
satisfy the APA requirements in 5 U.S.C. 553(b). The ACP Public Notice 
was published in the Federal Register on December 29, 2021 (see 86 FR 
74036) and it contains the information specified in section 553(b)(1)-
(3), including detailed questions about the particular inappropriate 
practices referenced in 47 U.S.C. 1752(b)(11). Given the requirements 
in the Act to commence the rulemaking implementing the Affordable 
Connectivity Program within five days of the enactment of the Act and 
to adopt program rules within 60 days, and the inextricable 
relationship between the consumer protection rules and the other 
components of the program, the Commission finds that it has satisfied 
the notice requirement in 5 U.S.C. 553(b), as well as the requirements 
in 5 U.S.C. 553(c) to ``give interested persons an opportunity to 
participate in the rule making through submission of written data, 
views, or arguments'' and to ``consider[ ] the relevant matter 
presented'' in those submissions when formulating the consumer 
protection rules.
    115. Moreover, in the alternative, to the extent the procedures 
required by 47 U.S.C. 1752(c) cannot be squared with the process 
required by 47 U.S.C. 1752(b)(11), the Commission finds ``good cause'' 
to depart from the standard APA notice and comment procedures because 
placing the consumer protection rules on a delayed track would be 
``impracticable, unnecessary, or contrary to the public interest.'' 5 
U.S.C. 553(b)(3)(B). It would be impracticable and contrary to the 
public interest to adopt consumer protection rules using procedures 
that would operate more slowly than those the Commission use to adopt 
the rules implementing other aspects of the Affordable Connectivity 
Program. The consumer protection rules are among the core components of 
the program, and allowing the rest of the program to take effect 
without having the statutorily-mandated consumer protections in place 
at the outset of the program would undermine the overall scheme. The 
Affordable Connectivity Program will enable eligible consumers to apply 
the Affordable Connectivity Benefit to ``any'' internet service 
offering of a participating provider, 47 U.S.C. 1752(b)(7), and 
consumers could effectively be denied that entitlement if participating 
providers were allowed to engage in harmful business practices that 
could trap consumers in poor service and deny households of the full 
benefit and freedom to choose an appropriate service. See 47 U.S.C. 
1752(b)(11)(A). Consistent with this determination, the Commission also 
finds under the Congressional Review Act that there is good cause to 
expedite the effective date of these rules and not to delay their 
effective date for 60 days pending Congressional review. See 5 U.S.C. 
808(2).
b. Consumer Protection Requirements Pursuant to 47 U.S.C. 1752(b)(11)
    116. Upselling and Downselling. The Infrastructure Act requires the 
Commission to promulgate rules prohibiting any inappropriate upselling 
or downselling by a participating provider. 47 U.S.C. 
1752(b)(11)(A)(i). Inappropriate upselling in the context of the 
Affordable Connectivity Program is any business practice that pressures 
a prospective or existing subscriber to purchase a service plan or 
bundled plan in addition to or that is more expensive than what the 
subscriber initially sought. For example, requiring a household to 
select or switch to a higher-cost service plan with their existing 
provider before the provider will enroll the household or before the 
provider will apply the affordable connectivity benefit to the 
household's account constitutes inappropriate upselling and is 
prohibited. Similarly, if a provider offers a particular broadband 
service offering either as part of a bundled plan with other services 
or on a stand-alone basis, the provider may not require an eligible 
household to purchase the bundled plan or any other services included 
in the bundle as a mandatory condition in order to select that 
broadband internet access service plan for purchase or application of 
the affordable connectivity benefit. Nor may the provider exert 
pressure on the household to purchase the bundled plan or the other 
services included in such a plan, rather than the individual broadband 
internet access service on a stand-alone basis. And even if a 
particular type of modem, router, or other associated equipment is 
technically necessary in order to use a specific type of broadband 
internet access service, a participating provider may not compel or 
pressure an eligible household to purchase or rent such equipment from 
the provider in conjunction with selecting (or applying the benefit to) 
that type of service if the needed equipment is also available from 
other vendors and the household could opt to obtain it from someone 
other than the provider.
    117. However, communicating information regarding higher-speed or 
higher-priced service tiers is not in itself prohibited upselling in 
the absence of further evidence. In fact, given the monthly subsidy 
available in the program, a fully informed consumer may choose to 
subscribe to a more expensive plan that better meets the needs of the 
household. To ensure that consumers are sufficiently informed of the 
available options, the Commission requires providers to inform 
prospective and current subscribers seeking to enroll in the Affordable 
Connectivity Program or seeking to change service plans of all ACP-
supported plans available in the household's service area that are 
fully covered by the affordable connectivity benefit. Such plan 
information is required to be presented along with the required 
disclosures a provider must present to households prior to enrollment, 
described further following. The creation or promotion of new service 
plans specially priced for eligible households in the Affordable 
Connectivity Program does not constitute inappropriate upselling.
    118. Inappropriate downselling in the context of the Affordable 
Connectivity Program is any business practice that pressures a 
subscriber to lower the

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quality of broadband service (such as reducing bandwidth or speed, or 
adding or lowering data caps that would not meet the participating 
household's needs) to the benefit of the provider rather than the 
consumer. Not all downselling should be prohibited: Merely suggesting 
or mentioning the availability of a lower-price service plan(s) that 
would satisfy consumers' broadband needs is permitted. However, certain 
practices may constitute inappropriate downselling and should be 
prohibited to avoid potential consumer harm. Specifically, the 
Commission prohibits a provider from requiring a prospective or current 
household to change to a lower-cost service plan or to choose from a 
set of specific low-cost service plans before permitting the household 
to enroll in the program or before applying the affordable connectivity 
benefit to the household's account. Inappropriate downselling also 
includes business practices that aim to benefit the provider (such as 
minimizing the provider's out-of-pocket expenses) with no actual 
benefit to the consumer. For example, suggesting only low-quality 
service plans with a low data cap or low speed simply to benefit the 
provider and without regard to consumer need would be prohibited 
inappropriate downselling.
    119. Extended Service Contracts. The Infrastructure Act requires 
that the Commission promulgate rules that would protect ACP consumers 
from any inappropriate requirements that a consumer opt-in to an 
extended service contract as a condition of participating in the 
Affordable Connectivity Program. 47 U.S.C. 1752(b)(11)(A)(i). While not 
all extended service contracts are prohibited in the Affordable 
Connectivity Program, providers are prohibited from requiring agreement 
to an extended service plan as a condition of receiving the affordable 
connectivity benefit. An extended service contract is typically an 
offer of service at a discount price in exchange for a commitment from 
the subscriber to remain on that service plan for a set period of time, 
usually at least a year. Typically, a breach of an extended service 
contract would result in early termination fees. Congress recognized 
that consumers should be able to apply the ACP benefit to any available 
service plan and some participating providers offer plans with extended 
service contracts. However, conditioning a household's enrollment in 
the Affordable Connectivity Program or application of the program 
benefit to the household's account on agreement to an extended contract 
or continuing service with the provider is prohibited. Where an ACP 
household elects an extended service contract, the Commission requires 
the provider to notify the household that it may change its service at 
any time without incurring an early termination fee, as such fees are 
prohibited by the Infrastructure Act. 47 U.S.C. 1752(b)(6)(A)(i). In 
addition, providers must disclose all material terms to ACP households 
prior to enrollment, including but not limited to the price of service 
and the conditions for breach.
    120. Restrictions on Switching Service Offerings. The 
Infrastructure Act requires the Commission to promulgate rules to 
protect consumers from inappropriate restrictions imposed by a 
participating provider on the consumer's ability to switch internet 
service offerings. 47 U.S.C. 1752(b)(11)(A)(iv). The Commission 
prohibits providers from imposing restrictions on switching internet 
service offerings. However, it is not inappropriate for a provider to 
limit a household that is in non-payment status to service plans 
covered by the full benefit amount, as discussed preceding.
    121. Restrictions on Switching Providers. The Infrastructure Act 
also requires the Commission to promulgate rules to protect consumers 
from any inappropriate restrictions by a participating provider on the 
ability of the household to switch participating providers other than a 
requirement that the household return customer premises equipment 
provided by the participating provider. 47 U.S.C. 1752(b)(6)(A)(i)-
(iii). The Commission prohibits any provider practice that is 
reasonably likely to cause a household to believe that they are 
prohibited or restricted from transferring their benefit to a different 
provider. Examples include, but are not limited to: Misrepresenting or 
failing to accurately disclose to a household the rules and 
requirements regarding transfers in the Affordable Connectivity Program 
as set out further following; charging a fee to the household for 
transferring their benefit to another provider; or suggesting that the 
provider may change the consumer's service plan if they transfer their 
benefit to another provider.
    122. The Commission declines at this time to prohibit providers 
from recouping any forgone reimbursements as a result of the consumer 
transferring to another provider before the snapshot date for that 
service month, but cautions that providers must not impose or threaten 
to impose any fees or penalties to discourage or disincentivize a 
consumer from transferring their ACP benefit. The Commission finds that 
limiting subscribers to one transfer a month, coupled with the 
strengthening of the consent and disclosure requirements related to 
transfers, should reduce the number of unwanted transfers and will 
empower consumers to make an informed decision about whether to 
transfer their benefit. Therefore, the Commission finds that at this 
time, preventing providers from recovering discounts that are unable to 
be claimed solely as a result of the transfer is unnecessary to protect 
consumers from the consequences of the transfer.
    123. Unjust and Unreasonable Practices. The Infrastructure Act 
requires the Commission to promulgate rules related to unjust and 
unreasonable acts or practices that would undermine the purpose, 
intent, or integrity of the Affordable Connectivity Program. 47 U.S.C. 
1752(b)(11)(A)(v). To protect ACP households against service provider 
activities that would undermine the purposes, intent or integrity of 
the Affordable Connectivity Program, the Commission requires providers 
to enroll an eligible household as soon as practicable once the 
provider receives the household's affirmative consent to enroll with 
that provider for the Affordable Connectivity Program. Providers are 
further required to apply the affordable connectivity benefit to the 
household's account promptly.
    124. A provider is prohibited from advertising or holding itself 
out as a participating provider if it is not in fact permitted to 
participate in the Program. The Commission also prohibits providers 
from engaging in false or misleading advertising of the Affordable 
Connectivity Program. Failure to timely provide the service, equipment, 
or devices that are advertised, promoted, or marketed is an unjust and 
unreasonable practice and is a violation of the Affordable Connectivity 
Program rules. Providers must deliver any connected devices under the 
program within 30 days of affirmative consent to receive the device 
from the household.
5. Disclosures and Consumer Consent
    125. General Disclosure Requirements. The Commission finds that 
requiring certain disclosures prior to enrolling consumers in the 
Affordable Connectivity Program is necessary to ensure that eligible 
consumers are fully informed of their rights and the terms and 
conditions for their service before enrollment in the Affordable 
Connectivity Program. The disclosure requirements the Commission adopts 
for the Affordable Connectivity Program must be satisfied before 
participating providers enroll an eligible consumer in

[[Page 8363]]

the NLAD, and they apply regardless of whether the eligible consumer 
currently receives service from the provider (such as an existing 
Lifeline service) or will begin receiving service after enrollment, or 
after service provider transfer, in the Affordable Connectivity 
Program.
    126. The required disclosures can be provided orally or in writing, 
and must convey the following information in clear, easily understood 
terms that: (1) The Affordable Connectivity Program is a government 
program that reduces the customer's broadband internet access service 
bill; (2) the household may obtain ACP-supported broadband service from 
any participating provider of its choosing; (3) the household may apply 
the ACP benefit to any broadband service offering of the participating 
provider at the same terms available to households that are not 
eligible for ACP-supported service; (4) the provider may disconnect the 
household's ACP-supported service after 90 consecutive days of non-
payment; (5) the household will be subject to the provider's 
undiscounted rates and general terms and conditions if the program 
ends, if the consumer transfers their benefit to another provider but 
continues to receive service from the current provider, or upon de-
enrollment from the Affordable Connectivity Program; and (6) the 
household may file a complaint against its provider via the 
Commission's Consumer Complaint Center. If the provider offers a 
connected device through the Affordable Connectivity Program, the 
disclosures must also include language stating that the household does 
not need to accept the device in order to enroll in the program. 
Providers must also inform consumers about the provider's ACP-supported 
service plans that are fully covered by the applicable affordable 
connectivity benefit amount to guard against inappropriate upselling. 
Providers must retain all documentation or recordings of written or 
oral disclosures made to consumers in connection with ACP enrollment, 
as well as any other oral or written notifications and consumer 
disclosures required by the ACP rules consistent with the ACP 
recordkeeping requirements, and make them available for inspection upon 
request. Standardized language for the required consumer disclosures 
would ensure that all providers share the same language with eligible 
consumers prior to enrollment. Accordingly, the Commission directs the 
Bureau, in coordination with EB and CGB, to adopt a standard disclosure 
statement that all providers will be required to use.
    127. Consumer Consent to Enroll in the Affordable Connectivity 
Program. Before enrolling a consumer in the Affordable Connectivity 
Program, participating providers must obtain affirmative consumer 
consent either orally or in writing that acknowledges that after having 
reviewed the required disclosures about the Affordable Connectivity 
Program, the household consents to enroll with the provider. As with 
the required disclosures, the Commission finds that having uniform text 
for these consents would ensure that consumers actually affirmatively 
consented to enroll in the Program. The Commission directs the Bureau, 
in coordination with EB and CGB, to adopt a standard consent statement 
that providers will also be required to use in conjunction with the 
disclosures before enrolling eligible consumers in the Affordable 
Connectivity Program. Providers must retain all documentation or 
recordings of written or oral notifications and consumer consents and 
make them available for inspection upon request.
    128. The practices of linking program enrollment to implementation 
of technical changes necessary to retain the subscriber's existing 
service or automatically enrolling subscribers that provided 
information needed for another purpose may be deceptive and would have 
a deleterious effect on the integrity of the Affordable Connectivity 
Program. Accordingly, the Commission prohibits participating providers 
from linking enrollment in the Affordable Connectivity Program to some 
other action or information supplied to the provider for purposes other 
than the Affordable Connectivity Program. As examples, providers are 
prohibited from: (1) Not clearly distinguishing the process of signing 
up for ACP-supported services and devices from the process of signing 
up for, renewing, upgrading, or modifying other services, including 
Lifeline-supported services; (2) suggesting or implying that signing up 
for ACP-supported services and devices is required for obtaining or 
continuing other services, including Lifeline-supported services; and 
(3) tying the submission of customer information provided for another 
purpose (e.g., address verification or equipment upgrade or 
replacement) to enrollment in the Affordable Connectivity Program.
    129. The Commission also finds that requiring a consumer to accept 
a connected device in order to enroll with the provider is deceptive 
and harmful to consumers. Accordingly, the Commission prohibits 
participating providers from requiring consumers to obtain an ACP-
supported device in order to enroll in the Affordable Connectivity 
Program.
    130. Timing Limitation on Consumer Disclosure and Consents for 
Providers with Pending Election Notices or Removal. Providers are 
required to have a fully processed election notice before beginning to 
provide disclosures and collecting consumer consent for enrollment in 
the Affordable Connectivity Program. If a provider is removed from the 
program, it must cease providing the required enrollment-based consumer 
disclosures and consents for the Affordable Connectivity Program 
immediately upon removal. EBB Program providers that transitioned to 
the Affordable Connectivity Program do not need to submit an ACP 
election notice in order to make the required consumer disclosures and 
collect consumer consent for enrollment in the Affordable Connectivity 
Program.
    131. Transfer-Specific Disclosure and Consent Requirements. The 
Commission adopts consent and disclosure requirements for households 
that seek to transfer their ACP benefit to another service provider. 
Before initiating a transfer in NLAD, the transfer-in provider must 
disclose orally or in writing, in clear, easily understood language to 
the ACP household: (1) That the household will be transferring its ACP 
benefit to the transfer-in provider; (2) that the effect of the 
transfer is that the ACP benefit will be applied to the transfer-in 
provider's service and will no longer be applied to service retained 
from the transfer-out provider; (3) that the household may be subject 
to the transfer-out provider's undiscounted rates as a result of the 
transfer if the household elects to maintain service from the transfer-
out provider, and that (4) the household is limited to one ACP-transfer 
transaction per service month with limited exceptions to reverse an 
improper transfer or address situations impacting the household's 
receipt of ACP-supported service from a particular provider.
    132. The Commission finds that having a clear record of a 
consumer's consent to transfer their ACP benefit after having reviewed 
the ACP transfer disclosures is an important tool for preventing 
uninformed or unwanted ACP benefit transfers. The transfer-in provider 
must obtain the required consumer consent orally or in writing before 
each ACP transfer transaction, and the consent must indicate that after 
having reviewed the required transfer disclosures, the household 
consents to transfer its benefit to the transfer-in provider. 
Documentation of the consumer's affirmative consent must

[[Page 8364]]

clearly identify the ACP subscriber name, acknowledge the subscriber 
was provided the required disclosure language, and that upon receiving 
the disclosure, the subscriber gave its informed consent to transfer 
its benefit, and the date consent was given. Participating providers 
must retain documentation or recordings related to the required 
disclosures and necessary consents for affordable connectivity benefit 
transfers.
    133. Participating providers must obtain consent from an ACP 
household for each transfer and may not rely on older consent given for 
a previous transfer. Each time a provider initiates a transfer-in 
transaction for an ACP household, it must first provide the household 
with the required disclosures and obtain consent from the household 
acknowledging receipt of the disclosures and stating that the household 
consents to the transfer, even if the household previously received EBB 
or ACP-supported service from the provider. Consistent with the 
consents and disclosures required at initial ACP-enrollment, the 
Commission finds that using standardized language for ACP transfer 
disclosures and consent will better ensure that households are properly 
informed about and consented to transfer their ACP benefit. Therefore, 
the Commission directs the Bureau, in coordination with EB and CGB, to 
provide standardized disclosure and consent language that the providers 
will be required to present to ACP households prior to initiating the 
transfer.
    134. Providers are required to provide written notice of transfer-
in transactions to the transferred ACP household within five business 
days of completing the transfer in the NLAD. The notice of transfer to 
the ACP household should indicate the name of the transfer-in provider 
to which the household's ACP benefit was transferred, the date the 
transfer was initiated, and an explanation of the dispute process if 
the household believes the transfer was improper. Providers must retain 
documentation demonstrating compliance with this notice requirement 
consistent with the document retention requirements adopted in the 
Order and make such documentation available to the Commission and USAC 
upon request. The transfer-in service provider is required to certify 
under penalty of perjury that it has complied with the transfer 
requirements the Commission adopts in the Order.
    135. Limiting the Number of ACP Consumer Transfers in a Service 
Month. To provide an additional safeguard against unwanted and 
uninformed benefit transfers, the Commission limits ACP household 
benefit transfers to one per service month, with limited exceptions. 
The Commission directs USAC, in coordination with the Bureau, to 
develop a process for seeking an exception from the one-per-service 
month transfer restriction in the following circumstances: (1) An 
improper transfer; (2) the household's service provider ceases 
operations or fails to provide service (3) the household's current 
service provider is found to be in violation of ACP rules, and the 
violation impacts the customer for which exception is sought; or (4) 
the household changes its residential address to a location outside of 
the provider's service area for the Affordable Connectivity Program. An 
improper transfer occurs if the transfer-in provider does not make the 
required disclosures or obtain the required consent from the household 
to proceed with the transfer transaction. These exceptions ensure that 
unwanted transfers can be reversed, and also recognize that 
circumstances beyond the household's control may impact the provision 
or receipt of ACP service from a specific provider warranting more than 
one transfer in a month. The Commission further directs USAC to monitor 
exceptions and conduct program integrity reviews for a sampling of 
benefit transfers.

F. Outreach, Cross-Agency Collaboration, Advertising, and Public 
Awareness

    136. For the Affordable Connectivity Program to achieve its full 
potential and reach as many eligible households as possible, households 
must be clearly informed of the program's existence, benefits, 
eligibility qualifications, and how to apply. The Infrastructure Act 
recognizes that the Commission, participating providers, other Federal 
agencies, State, local, and Tribal governments, and other program 
partners and stakeholders play an important role in disseminating 
information about the Affordable Connectivity Program to the intended 
population. The Infrastructure Act outlines specific requirements and 
permissible activities for consumer outreach that may be funded using 
Affordable Connectivity Program funding. 47 U.S.C. 1752(b)(10). The 
Commission recognizes the Program will benefit from broad outreach in a 
variety of languages and methods to reach as many eligible consumers as 
possible, including 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 through collaborative outreach on the 
part of the Federal Government, participating providers, State, local, 
and Tribal governments, and other program partners and stakeholders.
1. Commission Outreach Efforts and Cross-Agency Collaboration
    137. Commission Outreach Efforts. The Infrastructure Act provides 
that the Commission may conduct outreach efforts to encourage 
households to enroll in the Affordable Connectivity Program. In 
particular, the Act permits the Commission to facilitate consumer 
research, conduct focus groups, engage in paid media campaigns, provide 
grants to outreach partners, and provide an orderly transition for 
participating providers and consumers from the EBB Program to the 
Affordable Connectivity Program. 47 U.S.C. 1752(b)(10)(C)(i)-(ii).
    138. The Commission believes a wide range of outreach is needed to 
best promote awareness of and increase participation in the Affordable 
Connectivity Program. The Commission is committed to using a variety of 
outreach tools in the immediate term and for the duration of the 
program to encourage eligible households to enroll in the Affordable 
Connectivity Program as permitted under the statute. 47 U.S.C. 
1752(b)(10)(C)(i). In addition, in the Further Notice of Proposed 
Rulemaking, the Commission is exploring the possibility of establishing 
an outreach grant program, but that would take time to establish in 
compliance with the applicable Federal rules and regulations governing 
Federal grants. Based on the costs associated with the Commission's 
Digital Television Transition outreach efforts (which included broad 
paid media campaigns) and current estimates for the anticipated types 
of outreach activities the Commission may undertake pursuant to the 
Infrastructure Act, the Commission anticipates the need to spend no 
more than $100,000,000 over the next five years for outreach, 
including, but not limited to, immediate outreach activities and a 
potential outreach grant program. As such, the Commission permits the 
Bureau to spend up to, but not more than, $100,000,000 over the next 
five years for such activities.
    139. The Commission directs the Bureau, CGB, the Office of 
Communications Business Opportunities (OCBO), OMD, and the Office of 
Media Relations (OMR) to collaborate on identifying and conducting the 
Commission's paid

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outreach efforts to promote program awareness and encourage households 
to enroll in the Affordable Connectivity Program, using the broad range 
of outreach tools permitted under the statute. These efforts will 
complement and build on the extensive outreach undertaken in support of 
the EBB Program and may include both national and more targeted 
activities, with particular emphasis on reaching people of color, 
persons with disabilities, persons who live in rural or Tribal areas, 
and others who are or have been historically unserved, marginalized, or 
adversely affected by persistent poverty or inequality. This outreach 
should also focus on helping households that are unconnected due to 
affordability issues and are not currently enrolled in a low-income 
connectivity program with awareness and enrollment in the program.
    140. Staff may work with USAC and third-party entities to conduct 
consumer research and focus groups. Consumer research and focus groups 
may provide meaningful insights into program messaging, including 
translations, application and enrollment process improvements, program 
awareness, perceived program value, and other topics that may improve 
awareness of the program and barriers to participation that could be 
addressed through outreach, and help drive enrollment. The Bureau, in 
consultation with CGB and OMR, with support from OMD as needed, may 
also pursue a paid media strategy for the Affordable Connectivity 
Program. In addition to traditional media and online ads, a paid media 
strategy may also include paid media in diverse outlets that serve 
culturally and linguistically isolated communities for which a 
significant population may qualify for the Affordable Connectivity 
Program. Such a media strategy may include a mix of national, regional, 
and hyper-local campaigns designed to reach the intended populations. 
The Bureau and CGB, with support from OMD as needed, may rely on a 
third-party media strategy firm to develop a media plan and facilitate 
paid advertising campaigns.
    141. Commission Collaboration with Other Federal Agencies. Pursuant 
to the Infrastructure Act, the Commission must collaborate with 
relevant Federal agencies to ensure that households that participate in 
qualifying programs for the Affordable Connectivity Program are 
provided with information about the Affordable Connectivity Program, 
including enrollment information. 47 U.S.C. 1752(b)(10)(B). The 
Commission directs the Bureau in conjunction with CGB to collaborate 
with other relevant Federal agencies on efforts designed to ensure that 
households participating in the relevant qualifying programs are 
provided with information on the Affordable Connectivity Program, 
including enrollment information. The Commission directs the Bureau and 
CGB to identify and engage in specific activities that would best 
satisfy this collaboration requirement, such as developing co-branded 
awareness campaign materials and email communications about the 
Affordable Connectivity Program to households participating in 
qualifying benefit programs.
    142. System of Records Notices Updates. The Infrastructure Act also 
requires the Commission to ``collaborate with relevant Federal 
agencies, including to ensure relevant Federal agencies update their 
System of Records Notices, to ensure that a household that participates 
in any program that qualifies the household for the Affordable 
Connectivity Program is provided information about the program, 
including how to enroll in the program.'' 47 U.S.C. 1752(b)(10)(B). The 
Commission does not have the authority to compel other Federal agencies 
to update their Systems of Records Notices, but the statute permits it 
to collaborate with other agencies. Accordingly, the Commission directs 
the Bureau, the Office of General Counsel, and OMD to collaborate with 
relevant Federal agencies to ensure that households participating in 
relevant qualifying programs are provided information about the 
Affordable Connectivity Program, which will include encouraging other 
Federal agencies to update their System of Records Notices to permit 
information sharing related to the Affordable Connectivity Program.
2. Publication and Outreach Requirements for Participating Providers
    143. Notification to All internet Service Consumers Upon 
Subscription or Renewal. The Infrastructure Act requires participating 
providers to notify all consumers who either subscribe to or renew a 
subscription to an internet service offering about the Affordable 
Connectivity Program and how to enroll. 47 U.S.C. 1752(b)(10)(A). The 
Commission concludes that the term ``renew'' in the relevant section of 
the Infrastructure Act means extending a fixed-term service contract 
longer than one month. The requirement to notify consumers who 
``renew'' a subscription should be limited to consumers extending a 
plan that is offered for a fixed term longer than one month and should 
not apply to consumers on month-to-month contracts. Service providers 
are also required to provide notice about the Affordable Connectivity 
Program to consumers who subscribe to month-to-month internet service 
at the time the consumer first subscribes to the service and annually 
thereafter.
    144. Participating providers must notify in writing or orally, in a 
manner that is accessible to individuals with disabilities, all 
consumers who either subscribe to or renew a subscription to an 
internet service offering about the Affordable Connectivity Program and 
how to enroll: (1) During enrollment for new subscribers; (2) at least 
30 days before the date of renewal for subscribers not enrolled in the 
Affordable Connectivity Program who have fixed term plans longer than 
one month; and (3) annually for subscribers not already enrolled in the 
Affordable Connectivity Program who have month-to-month or similar non-
fixed term plans. The requirement to notify new subscribers during 
enrollment also applies to existing subscribers contacting their 
provider to change service plans.
    145. The Commission declines to apply the notice requirement only 
at the time of initial service enrollment for prepaid customers who 
typically pay for service on a month-to-month basis. Providers must 
inform prepaid customers about the Affordable Connectivity Program 
annually to ensure that these consumers remain aware of the Affordable 
Connectivity Program. Publicly available information (e.g., websites or 
signage) alone is not sufficient to meet this notification requirement 
without some form of written or oral communication targeted to the 
individual subscriber, including but not limited to billing 
notifications or other emailed or mailed notifications. Providers 
should also offer these consumer notices in customers' preferred 
language.
    146. The required consumer notice must use clear, easily understood 
language. At a minimum, the notice must indicate: (1) The eligibility 
requirements for consumer participation; (2) that the Affordable 
Connectivity Program is non-transferrable and limited to one monthly 
internet discount and a one-time connected device discount (only if the 
provider offers ACP discounted devices) per household; (3) how to 
enroll, such as a customer service phone number or relevant website 
information; and (4) that the Affordable Connectivity Program is a 
Federal Government

[[Page 8366]]

benefit program operated by the Federal Communications Commission and, 
if it ends, or when a household is no longer eligible, customers will 
be subject to the provider's regular rates, terms, and conditions.
    147. Advertising Requirement. Due to the importance of 
disseminating information about the Affordable Connectivity Program, 
the Commission requires participating providers to publicize the 
availability of the Affordable Connectivity Program in a manner 
reasonably designed to reach those consumers likely to qualify and in a 
manner that is accessible to individuals with disabilities. Service 
providers should utilize outreach materials and methods designed to 
reach eligible households that do not currently receive service. Cf. 47 
CFR 54.405(b) (similar requirements in context of Lifeline program).
    148. Public Awareness Campaigns. Finally, the Infrastructure Act 
requires participating providers, in collaboration with State agencies, 
public interest groups, and non-profit organizations, to carry out 
public awareness campaigns in their areas of service that highlight the 
value and benefits of broadband internet access service, and the 
existence of the Affordable Connectivity Program. 47 U.S.C. 1752(b)(8). 
Local social services agencies, schools, and other organizations that 
administer qualifying government assistance programs are also important 
program partners and stakeholders for the Affordable Connectivity 
Program; accordingly, service provider public awareness activities in 
collaboration with these entities would also satisfy the service 
provider public awareness obligation. The Commission gives 
participating providers flexibility as to how they fulfill this 
requirement and does not prescribe specific forms of outreach that 
service providers must use to satisfy the public awareness obligation, 
a fixed number of activities that service providers must complete, or a 
requirement that service providers collaborate with specific 
organizations. However, participating service providers must frequently 
engage in public awareness activities focused on participation in the 
Affordable Connectivity Program and in collaboration with the specified 
types of organizations, and must retain documentation sufficient to 
demonstrate their compliance with the public awareness obligations.
3. Commission Guidance
    149. The Infrastructure Act provides that the Commission may issue 
guidance, forms, instructions, publications, or technical assistance as 
necessary or appropriate to carry out the Affordable Connectivity 
Program, including actions intended to ensure that ``programs, 
projects, or activities'' are completed in a timely and effective 
manner. The Commission directs the Commission staff and USAC to develop 
comprehensive provider education and training programs, as well as 
consumer outreach plans. The Commission also directs USAC to develop 
and implement, under the oversight of the Bureau, CGB, and OCBO, 
training and provide information necessary to successfully participate 
in the Affordable Connectivity Program. The Commission directs USAC 
both to educate service providers on the ACP and to engage in consumer 
outreach to complement the efforts Commission staff will undertake in 
response to this Order. The Commission also directs CGB, including the 
Office of Native Affairs and Policy, and OCBO to coordinate with USAC 
to develop educational and informational communications and materials 
to advertise the Affordable Connectivity Program, such as a web page 
and digital toolkit in a printable format and translated into other 
languages that can easily be accessed by service providers, 
organizations, and the public.

G. Data Reporting and Performance Goals

1. Tracking and Reporting of Available Funding
    150. In the EBB Program Order, the Commission instructed USAC to 
develop a tracker that reports on disbursements and program enrollment 
to allow providers and the public to monitor the balance of the 
Emergency Broadband Connectivity Fund. Emergency Broadband Benefit 
Program, Final Rule, 86 FR 19532, 19552-53, paras. 105-108 (Apr. 13, 
2021). Consistent with the Commission's approach in the EBB Program, 
the Commission finds that publishing enrollment data for the Affordable 
Connectivity Program will empower the Commission's outreach partners 
and promote transparency about the program. Therefore, the Commission 
directs USAC, subject to oversight of the OEA and the Bureau, to 
develop a tracker and make it available on either the Bureau's website 
or USAC's website. In the tracker, USAC should include enrollment data 
including, enrollee age category, eligibility category, including 
households enrolled on the basis of enrollment in a provider's existing 
low-income program, type of broadband service, and enrollment numbers 
by five-digit ZIP code areas. USAC shall update the posted information 
regularly. The Commission directs the Bureau and OEA, with support from 
USAC, to develop a process to mask data as necessary, consistent with 
the Privacy Act, 5 U.S.C. 552a. The Commission further directs OEA and 
the Bureau to take into consideration the types of data requested by 
commenters when determining the additional program data, if any, that 
can be made available.
    151. Performance Measures. Similar to the Lifeline and EBB 
Programs, the Affordability Connectivity Program will subsidize the 
internet bills of low-income households on a monthly basis; thus, the 
Commission plans to establish program goals consistent with those of 
the Lifeline and EBB Programs. The Commission establishes three goals 
for the Affordability Connectivity Program: (1) Reduce the digital 
divide for low-income consumers, (2) promote awareness and 
participation in the Affordable Connectivity Program and the Lifeline 
program, and (3) ensure efficient and effective administration of the 
Affordability Connectivity Program.
    152. Narrowing the digital divide has been an ongoing priority for 
the Commission and is one of the goals for the Lifeline program. A 
primary goal of the Affordability Connectivity Program should be to 
close the digital divide by reducing the broadband affordability gap. 
The Commission directs the Bureau and OEA, with support from USAC, to 
collect as necessary appropriate data and develop metrics to determine 
progress towards this goal, such as broadband adoption by first-time 
subscribers and increasing enrollments in areas with low broadband 
internet penetration rates.
    153. The Commission's second goal is to increase awareness of and 
participation in the Affordability Connectivity Program. The Commission 
should invest in direct, data-driven outreach to unconnected households 
to increase awareness of the Affordable Connectivity Program. To meet 
this goal, the Commission will work with community partners to increase 
consumer engagement with low-income individuals in underserved areas. 
The Commission directs USAC to continue to publish enrollment data by 
geographic regions. To measure progress towards this goal, the 
Commission will monitor the participation over time and by area. 
Additionally, the Commission directs the Bureau and OEA, with support 
from USAC, to collect the appropriate data.
    154. The Commission adopts as the Commission's third goal efficient 
and effective administration of the

[[Page 8367]]

Affordability Connectivity Program. The Commission will measure success 
towards this goal by evaluating the speed and ease of the application 
process and the reimbursement process, and the overall burden of the 
program on consumers. To measure the first performance metric, the 
Commission will conduct consumer and provider outreach that will aim to 
capture program satisfaction. In addition, the Commission seeks 
feedback from the Commission's State, community, and non-profit 
partners helping to educate consumers on the application process. For 
the Commission's second performance measure, the Commission will use a 
measure of consumer burden that divides the total inflation-adjusted 
expenditures of the low-income program each year by the number of 
households in the United States and express the measure as a monthly 
dollar figure. This calculation will rely on publicly available data 
and will therefore be transparent and easily verifiable.

H. Transition of Legacy EBB Program Households

    155. The Commission takes seriously the need to ensure that legacy 
EBB Program households that transition to the Affordable Connectivity 
Program do not have adverse experiences such as bill shock as a result 
of the lower $30 non-Tribal benefit under the Affordable Connectivity 
Program or a downgraded service offering. The Commission finds that a 
uniform opt-in approach for all legacy EBB households that transition 
to the Affordable Connectivity Program is unnecessary and would likely 
result in significant de-enrollments and increase administrative 
burdens on service providers and consumers. An across-the-board opt-out 
approach does not provide consumers enough agency in the decision. 
Instead, the Commission adopts a hybrid approach that takes into 
consideration the various categories of legacy EBB households, and each 
category's respective potential level of risk for an adverse 
experience.
    156. There are multiple categories of legacy EBB households that 
would have very different experiences as a result of the reduction to 
the $30 non-Tribal benefit amount given their varied circumstances. 
Many legacy EBB Program households will not experience a rate change 
because their supported internet service already costs $30 or less a 
month or because they reside on qualifying Tribal lands and the Tribal 
benefit level has not changed. Other legacy EBB Program households are 
unlikely to face unexpected financial harm as a result of an up to $20 
bill increase because they previously demonstrated to their current 
provider a willingness to pay something for their broadband service, 
such as by paying some fee for an EBB-supported internet service, being 
the provider's existing paying customer for internet service before 
enrolling in the EBB Program, or consenting to the provider's general 
terms and conditions if they continued to receive their current service 
after the end of the EBB Program. However, for households who have not 
previously demonstrated a willingness to pay for continued internet 
service, there may be a stronger risk of potential bill shock from an 
up to $20 bill increase as a result of a reduced benefit amount.
    157. Legacy EBB households that would not experience a bill change 
as a result of the reduction of the non-Tribal benefit level to $30, 
including subscribers who would not pay anything for their ACP service 
under the reduced $30 non-Tribal benefit and subscribers who reside on 
qualifying Tribal lands and will continue to receive the same up to $75 
benefit level, will not be required to opt-in to continue to 
participate in the Affordable Connectivity Program after the end of the 
transition period. The notices that have already been issued to all 
legacy EBB subscribers sufficiently advise this category of subscribers 
of the change in the program name, retention of the $75 Tribal benefit 
amount and reduction of the non-Tribal benefit to $30. For this 
category of legacy EBB households, participating providers must retain 
documentation sufficient to demonstrate that this is the applicable 
transition path, consistent with the document retention requirements 
the Commission adopts in the Order.
    158. The category of legacy EBB Program households that would 
experience a bill increase as a result of the reduction of the non-
Tribal discount to $30 but have already expressed to their current EBB 
provider a willingness and an ability to pay for broadband includes EBB 
households that (1) were existing paying internet service customers 
with the broadband provider when the household enrolled in the EBB with 
that provider; (2) previously consented to the provider's general terms 
and conditions if they continued to receive service at the end of the 
EBB Program; or (3) currently pay a fee for their supported internet 
service. This category of households has demonstrated to their current 
provider a willingness and ability to pay for internet service; 
therefore, they have little risk of unexpected financial harm even if 
their bill may potentially increase up to $20. For this category of 
subscribers, the ability to opt out of the Affordable Connectivity 
Program or change their service is sufficient.
    159. Finally, legacy EBB Program households that would experience a 
bill increase as a result of the reduction of the non-Tribal discount 
to $30 but have not indicated to their current provider a willingness 
or an ability to pay for broadband either generally or at the end of 
the EBB Program, including households that did not have a pre-existing 
paying customer relationship with their current provider and have not 
consented to the providers' general terms and conditions if they 
continued service after the end of the transition period, or do not 
currently pay a fee for their EBB Program service, face a higher 
potential for bill shock and financial harm. The Commission is also 
concerned that, for this category of subscribers, solely providing a 
reminder of the right to opt out or change service may not be 
sufficient to mitigate the potential for unexpected financial harm.
    160. To minimize the potential unexpected financial impact for this 
third category of legacy EBB households, the Commission gives providers 
multiple transition options: (1) Switch the household to an internet 
service that costs $30 or less a month after providing notice in 
advance of this change; (2) continue to provide the current level of 
service without increasing the household's bill if the provider has 
internet service options priced at $30 per month or less; or (3) obtain 
the consumer's opt-in to continue to receive its current service with 
the $30 benefit level before the first increased bill after the March 
1, 2022, end of the transition period. Where a provider elects to 
switch legacy EBB Program households to a supported internet service 
that costs $30 or less, the provider must first give the household 
advance notice as soon as practicable before changing their service and 
in that notice remind the household that it has the right at any time 
to opt out of the Affordable Connectivity Program or change its ACP 
service or ACP provider. For providers that elect to obtain household 
opt-ins for this third category of legacy EBB households, the provider 
must use clear, easily understood language that informs the household 
of the increased rate amount, that they will be de-enrolled from the 
program if they do not opt in within thirty days of the opt-in request, 
that they have the right to opt out of the Affordable Connectivity 
Program, cancel or change their service or provider at any time. 
Participating providers must retain documentation concerning the 
transition path they took for this third

[[Page 8368]]

category of legacy EBB Program households, including any household opt-
ins.
    161. Additional Notices for Legacy EBB Households About the Reduced 
Non-Tribal Benefit and Ability to Opt-Out. The Commission finds that it 
is important to continue to provide notifications about program changes 
to legacy EBB Program households for at least one month after the 
transition period ends on March 1, 2022, particularly for participating 
households whose out-of-pocket costs increase as a result of the 
reduced monthly non-Tribal benefit under the Affordable Connectivity 
Program. The Commission encourages participating providers to continue 
to disseminate information to their legacy EBB subscribers who would 
have out-of-pocket costs for their ACP service as a result of the 
reduced $30 monthly non-Tribal benefit, including: (1) A reminder that 
the non-Tribal ACP benefit is $30 per month; (2) a reminder that the 
household has the right to cancel or change its service, or switch 
providers without incurring an early termination fee; and (3) a 
reminder that the household has the right to opt out of the Affordable 
Connectivity Program at any time. If a service provider is already 
offering or intends to offer an ACP service that would eliminate or 
lessen the rate increase, it would also be useful for service providers 
to include that information. To maximize the potential consumer 
outreach on these issues, the Commission also strongly encourage 
participating providers to post this information on their website in a 
location that is highly visible for legacy EBB Program households. 
These notices, along with the additional notices that have already been 
issued concerning the change from the EBB Program to the Affordable 
Connectivity Program, will ensure that legacy EBB Program households 
whose bills increased as a result of the reduced ACP non-Tribal benefit 
amount are aware of the actions they can take to avoid paying a higher 
rate for their ACP-supported internet service.
    162. Legacy EBB Program Household Reliance on Prior Household 
Worksheet for the EBB Program. The Commission will not require legacy 
EBB Program households who transition to the Affordable Connectivity 
Program to submit a new household worksheet if they reside at the same 
address as another ACP subscriber. However, the Commission delegates 
authority to the Bureau to require legacy EBB Program households who 
reside at the same address as another ACP household to complete a new 
household worksheet if the Bureau determines that this would be 
necessary to promote program integrity, facilitate the administration 
of the Affordable Connectivity Program, or otherwise support program 
goals.
    163. Duration of Continuing the Non-Tribal EBB Benefit Level for 
Legacy EBB Subscribers. Section 60502(b)(2) of the Infrastructure Act 
provides for a 60-day transition period, during which time EBB 
subscribers who were enrolled prior to December 31, 2021, and would 
otherwise see a reduction in their benefit under the Affordable 
Connectivity Program will continue to receive a benefit at the $50 non-
Tribal EBB Program benefit level. The Commission interprets this 
language to provide for a single 60-day transition period ending on 
March 1, 2022, during which legacy EBB Program households who were 
fully enrolled in the EBB Program as of December 31, 2021, would 
continue to receive the $50 EBB benefit level.

I. Sunsetting Provisions

    164. Given the expanded funding for the Affordable Connectivity 
Program, the Commission finds that it is not necessary to establish 
sunsetting rules at this time. Instead, the Commission delegates 
authority to the staff to establish procedures for the wind-down of the 
Program. Specifically, the Commission directs the Bureau, in 
coordination with OMD, OEA, and USAC, to develop a forecast of the 
depletion of the funding appropriated by Congress to the Commission to 
fund the Affordable Connectivity Program. Moreover, the Commission 
delegates to the Bureau to identify a process for notifying the public 
of the timing of the end of the Affordable Connectivity Program as the 
funds are nearing depletion.
    165. A provider must obtain the household's affirmative opt-in, 
either orally or in writing, to continue providing the household 
broadband service after the end of the Affordable Connectivity Program 
and to charge a higher rate than the household would pay if it were 
receiving the full discount permitted under Affordable Connectivity 
Program rules. The Commission delegates to the Bureau the authority to 
establish specific timeframes for such consumer opt-ins and the 
appropriate consumer notice. The wind-down procedures delegated to the 
staff must also consider how the remaining funds will be distributed in 
the final month of the Affordable Connectivity Program, any timing 
considerations related to the reimbursement process, and other 
procedures necessary to smoothly wind-down the program.
    166. The Commission directs the Bureau to implement procedures for 
reimbursement in the final month of the Affordable Connectivity Program 
in the event reimbursement claims exceed the amount of remaining funds, 
but in no circumstances will reimbursements be less than 50% of the 
provider's claim for that final month. For example, if based on the 
forecast of the depletion of funding established preceding, the 
remaining balance in the Affordable Connectivity Fund is sufficient to 
pay out 80% of each reimbursement claim submitted in the final month, 
the Fund will pay out 80% of each claim on a pro-rata basis, thus 
depleting the Fund and ending the Affordable Connectivity Fund. If, 
however, projections from USAC indicate that less than 50% of claims 
can be paid out on a pro-rata basis for the expected final month of the 
Affordable Connectivity Program, then USAC shall immediately notify the 
Bureau, OEA, and OMD. If staff agree with USAC's projections, then USAC 
will pause the reimbursement process for the final month, and instead 
staff will determine how best to use the remaining funds consistent 
with the Infrastructure Act.

J. Audits, Enforcement, and Removal of Providers

1. Audits
    167. The Infrastructure Act requires the Commission to adopt audit 
requirements to ensure participating providers are in compliance with 
the program requirements and to prevent waste, fraud, and abuse. 47 
U.S.C. 1752(b)(12). Within one year of the date of enactment of the 
Infrastructure Act, the Commission's Office of Inspector General is 
required to conduct an audit of the disbursements to a representative 
sample of providers. 47 U.S.C. 1752(b)(13). The Commission delegates 
authority to OMD to develop and implement an audit process of 
participating providers, for which it may obtain the assistance of 
third parties, including but not limited to USAC. Such ACP audits would 
be in addition to any audits conducted by the Commission's Office of 
Inspector General. The Commission also adopts the documentation 
retention requirements used in the EBB Program for the Affordable 
Connectivity Program.
    168. The Commission has delegated authority to OMD, upon receiving 
approval from the Office of General Counsel, to issue subpoenas that 
directly relate to OMD's oversight of audits of the Affordable 
Connectivity Program. 47 CFR 0.231(l).

[[Page 8369]]

    169. USAC Program Integrity Reviews. The Commission directs USAC to 
develop a plan to conduct program integrity reviews to address the 
requirements of this Order and areas where trend analysis, complaint 
data, or other information shows a need for such reviews to determine 
provider and consumer compliance with ACP rules. This plan will be 
subject to OMD and Bureau approval.
2. Enforcement
    170. The Infrastructure Act specifies that a violation of 47 U.S.C. 
1752 or any regulation promulgated under that section ``shall be 
treated as violation of the Communications Act of 1934 or a regulation 
promulgated under such Act'' and directs the Commission to enforce it 
``in the same manner, by the same means, and with the same 
jurisdiction, powers, and duties as though all applicable terms and 
provisions of the Communications Act of 1934 were incorporated or made 
a part of this section.'' 47 U.S.C. 1752(g). Moreover, the 
Infrastructure Act expressly grants the Commission the authority to 
impose forfeiture penalties to enforce compliance. 47 U.S.C. 
1752(b)(9)(C)(ii). The Commission will use its existing, statutorily 
permitted enforcement powers to initiate investigations of program rule 
violations for the Affordable Connectivity Program.
    171. The Infrastructure Act, 47 U.S.C. 1752(j), provides that the 
Commission may not enforce a violation of the Act using its forfeiture 
authority if a participating provider demonstrates that it relied in 
good faith on information provided to such provider to make any 
verification required by 47 U.S.C. 1752(b)(2). That safe harbor will 
apply to providers who use the National Verifier for eligibility 
determinations or any alternative verification process approved by the 
Commission and act in good faith with respect to the eligibility 
verification processes. Providers that reasonably rely on documentation 
regarding eligibility determinations provided by eligible households or 
an eligibility determination from the National Verifier will be able to 
avail themselves of this statutory safe harbor with respect to their 
compliance with the Affordable Connectivity Program rules.
3. Removal of Participating Providers From the Affordable Connectivity 
Program
    172. Involuntary Removal. The Commission finds that it is essential 
that the Commission have the flexibility necessary to quickly respond 
and remove providers that are violating program rules or threatening 
the integrity of the Affordable Connectivity Program while also 
ensuring that a provider has a fair opportunity to respond prior to 
being removed from the program. A participating provider may be removed 
from the Affordable Connectivity Program for violations of program 
rules of the Affordable Connectivity Program, the EBB Program, the 
Lifeline program, the Emergency Connectivity Fund or successor 
programs, or other Universal Service Fund (USF) programs. In addition, 
a provider may be removed from the Affordable Connectivity Program for 
committing any action that indicates a lack of business integrity or 
business honesty that seriously and directly affects the provider's 
responsibilities under the Affordable Connectivity Program, that 
undermines the integrity of the Affordable Connectivity Program, or 
that harms or threatens to harm prospective or existing program 
participants, including fraudulent program enrollments. Moreover, a 
provider may be removed for conviction or civil judgment for attempt or 
commission of fraud, theft, embezzlement, forgery, bribery, 
falsification or destruction of records, false statements, receiving 
stolen property, making false claims, obstruction of justice, or 
similar offense, that arises out of activities related to the 
Affordable Connectivity Program, the EBB Program, the Emergency 
Connectivity Fund or successor programs, or any of the USF programs.
    173. If the Commission develops information from Commission-led or 
sponsored investigations or receives consumer complaints, information 
obtained through program integrity reviews and audits, whistleblower 
reports, or information shared by law enforcement or from other 
credible sources that yields credible allegations of misconduct, the 
Bureau Chief or the Chief of EB, after consultation with USAC, OMD, and 
CGB, as appropriate, will initiate a proceeding to consider removal of 
the provider. The relevant Bureau will provide notice of the proceeding 
to the participating provider via electronic mail and/or U.S. mail 
using the contact information provided in the election notice filed 
with USAC or other sources if there is reason to suspect that the 
information on file with USAC is not up-to-date. Such notice will 
include the legal and factual bases for the initiation of the removal 
proceeding (as well as notice of any interim measures taken under this 
paragraph and reasons therefor) and indicate that the provider will 
have thirty (30) days to respond to the Bureau and to provide any 
relevant evidence demonstrating that a rule violation or other conduct 
warranting removal has not in fact occurred and that the provider 
should not be removed from the Affordable Connectivity Program. 
Concurrent with the issuance of the notice or at any time before a 
final determination is rendered by the Bureau Chief or Chief of EB, as 
the case may be, such Chief may, in light of the facts and 
circumstances set forth in the notice commencing the removal 
proceeding, and with notice to the provider of this interim measure, 
direct on an interim basis that the provider be removed from the 
Commission's listing of providers, from USAC's Companies Near Me tool, 
or any other similar records, and may also direct USAC to temporarily 
suspend the participating provider's ability to enroll or transfer in 
new subscribers during the pendency of the removal proceeding. Any such 
actions may be taken only (i) if based upon adequate evidence of 
willful misconduct that would warrant removal of the provider under the 
previous paragraph, and (ii) after determining that immediate action is 
necessary to protect the public interest. The relevant Chief may also 
direct, with notice to the provider, that a funding hold (or partial 
hold) be placed on the provider if, based on the circumstances of a 
particular case, there is adequate evidence that the provider's 
misconduct is likely to cause or has already resulted in improper 
claims for ACP reimbursement and such a hold (or partial hold) is 
necessary to protect the public interest. Any funding hold should be 
tailored in a manner that is related to and proportionate to the 
alleged misconduct.
    174. Once a timely response is received from the provider, the 
relevant Chief will have thirty (30) days to make a removal 
determination and issue an order, which shall provide a detailed 
explanation for the determination. This 30-day period may be extended 
an additional 15 days if circumstances warrant. After review of any 
response submitted by the provider and all available credible evidence, 
if the relevant Chief determines based on a preponderance of the 
evidence that there has been a rule violation or other conduct 
warranting removal, the provider's authorization to participate in the 
Affordable Connectivity Program will be revoked, and the provider will 
be removed from the program. Similarly, failure by the provider to 
respond or provide the requested evidence within thirty days of the 
date of the notice also will result in a finding

[[Page 8370]]

against the provider, removal from the program, and revocation of the 
provider's authorization to participate in the Affordable Connectivity 
Program. However, if the relevant Chief determines that the 
preponderance of the evidence fails to demonstrate that there has been 
a rule violation or other conduct warranting removal from the program, 
such Chief will take appropriate steps to reinstate the provider to the 
listing of providers and USAC's ``Companies Near Me'' tool, if the 
provider had previously been delisted, advise USAC to permit the 
provider ability to enroll or transfer in new subscribers (if 
previously blocked), and lift any funding hold. A former participating 
provider removed from the Affordable Connectivity Program will be 
barred from seeking to rejoin, or participating in, the Affordable 
Connectivity Program as a participating provider for at least five 
years, or for such additional period as the relevant Chief considers to 
be warranted based on the circumstances of the case.
    175. A provider may request reconsideration of the decision or 
submit a request for review by the full Commission of the Bureau 
Chief's determination pursuant to the Commission's rules. See 47 CFR 
1.106, 1.115. If the Commission declines the provider's request for 
review or if the Commission upholds the Bureau Chief's determination, 
then the provider will be removed from the Affordable Connectivity 
Program as provided in the Bureau Chief's decision.
    176. To avoid the impact the sudden removal of a provider from the 
Affordable Connectivity Program would have on low-income consumers who, 
through no fault of their own, could lose their discounted internet 
services, and to allow consumers served by the removed provider an 
opportunity to transfer their benefit to another participating 
provider, removed providers will be required to continue providing 
service to their existing enrolled households for sixty (60) days after 
removal, unless otherwise directed by the relevant Bureau. The provider 
will be eligible to receive reimbursement for any valid claims for 
discounts passed through to ACP households during this 60-day period. 
The removed provider must send written notice to its consumers within 
30 days of the final determination in the removal proceeding notifying 
the consumers that the provider will no longer be participating in the 
Affordable Connectivity Program. Notice to the enrolled households must 
include a statement that the provider will be removed from the program; 
the effective date of removal; that the household cannot continue to 
receive the ACP benefit from its current provider and that if the 
household seeks to continue receiving ACP support it must transfer to a 
new participating provider; instructions on how to request a transfer 
to a new provider and how to find another participating provider; the 
contact information for the USAC ACP Support Center; the amount the 
household would be charged if the household continues to subscribe to 
internet service from the provider after the effective date of removal; 
and other information as determined by the Bureau to help enable 
consumers to make informed decisions about their internet service. The 
removed provider shall also send a second written notice to consumers 
at least 15 days before the date by which the provider can no longer 
offer ACP-supported service. Failure to provide service during the 60-
day period or to provide the preceding-referenced information to 
existing households may result in further enforcement action. The 
Commission also directs USAC to provide notice to consumers enrolled 
with the removed provider after the final determination in the removal 
proceeding.
    177. The Commission delegates to the Wireline Competition Bureau 
and OMD the authority to modify the provider removal process as set 
forth in this section as may be necessary and appropriate in response 
to trends in the Affordable Connectivity Program, using appropriate 
notice and comment procedures. Any modified removal process shall 
continue to strike an appropriate balance between protecting consumers 
and the integrity of the Affordable Connectivity Program and ensuring 
that providers have a meaningful opportunity to respond to the 
allegations.
    178. Voluntary Withdrawal. Participation in the Affordable 
Connectivity Program is voluntary. However, a provider's decision to 
leave the program will impact any households receiving ACP-supported 
service from that provider, and care must be taken to ensure that those 
households have an opportunity to transfer their benefit to another ACP 
provider.
    179. A participating provider may withdraw its election to 
participate in the Affordable Connectivity Program at any time. 
Providers seeking to withdraw from the program must first notify USAC 
in writing at least 90 days before the effective date of withdrawal. 
The notice to USAC must contain the final date the provider will 
provide ACP-supported service to households and a statement confirming 
that as of the date of the notice to USAC the provider will cease 
enrolling new households, that the provider will cease advertising and 
marketing its participation in the Affordable Connectivity Program, and 
that the provider will notify its existing ACP households of its intent 
to exit the program. Upon receipt of this written notice, USAC and the 
Commission will remove the provider from the provider listings on the 
FCC's website and the ``Companies Near Me'' tool. As an initial matter, 
participating providers that were automatically transitioned from the 
EBB Program to the Affordable Connectivity Program must file an opt-out 
notice to USAC within 90 days of publication of this Order in the 
Federal Register; otherwise they will be considered to be affirmatively 
participating in the Affordable Connectivity Program.
    180. The provider must also notify its existing ACP households of 
its intent to exit the program. Notice must be in writing, provided in 
formats accessible to individuals with disabilities, and sent to 
existing ACP households 90 days, 60 days, and 30 days before the 
effective date of withdrawal from the program. Notice to households 
must include the final date of service, the amount the households will 
be expected to pay if they remain with the provider after the provider 
exits the program, the effective date of such charges, and an 
explanation that once the provider exits the program, the ACP benefit 
will no longer be applied to the account, unless the subscriber 
transfers its benefit to a different participating provider. The notice 
must also include instructions detailing how to find and select a new 
participating provider, instructions on how to transfer to a different 
provider, the web address for the Commission's listing of participating 
providers and to USAC's ``Companies Near Me'' tool, the telephone 
number and email address of USAC's ACP Support Center, and the 
provider's customer service telephone number. During this period, the 
provider must continue to provide ACP-supported service to enrolled 
subscribers until the effective date of withdrawal from the program. 
Providers must retain records demonstrating compliance with the notice 
requirements.

K. Administration of the Affordable Connectivity Program

    181. The Commission relies on USAC as the administrator of the 
Affordable Connectivity Program, see 47 U.S.C. 1752(i)(3), and the 
Commission relies on the use of the USAC-administered systems, 
including but not limited to, the National Verifier, NLAD, RAD, and the 
Lifeline Claims System for the

[[Page 8371]]

provider reimbursement process, call centers for program support, 
provider and consumer outreach, and conducting program integrity 
reviews.
    182. Administrative Cap. The Commission directs USAC, in 
coordination with OMD, to regularly report to OMD its projected budget 
for administration of the Affordable Connectivity Program at a 
frequency to be determined by OMD. Based upon the initial estimates 
provided to OMD, which included costs associated with business process 
outsourcing, project management, IT professional fees, call center 
activities, and other costs, USAC's Affordable Connectivity Program 
administrative costs are estimated to be under the 2 percent cap.
    183. The Commission must authorize payments from the Affordable 
Connectivity Fund prior to the disbursement of those funds in the 
United States Treasury to providers who have submitted valid claims for 
reimbursement. Here, the Commission provides guidance on steps 
participants must be prepared to take to ensure timely payment of 
reimbursement claims from the Affordable Connectivity Fund.
    184. FCC Red Light Rule. Participating providers in the Affordable 
Connectivity Program will be subject to the red light rule that the 
Commission implemented to satisfy the requirements of Debt Collection 
Improvement Act of 1996. Under the red light rule, the Commission will 
not take action on applications or other requests by an entity that is 
found to owe debts to the Commission until full payment or resolution 
of that debt. 47 CFR 1.1910. If the delinquent debt remains unpaid or 
other arrangements have not been made within 30 days of being notified 
of the debt, the Commission will dismiss any pending applications. 
Consistent with practices in the Lifeline program and other programs 
such as the Telecommunications Relay Service, the red light rule is not 
waived for the Affordable Connectivity Program. If a prospective 
participant is on red light, it will need to satisfy or make 
arrangements to satisfy any debts owed to the Commission before its 
application and/or election notice will be processed. The Commission 
directs the Bureau and OMD to ensure that a process is in place to 
check an entity's red light status prior to processing an application, 
election notice, disbursement, or other request from the entity 
consistent with the red light rule.
    185. Treasury Offset. ACP participating providers will be subject 
to the Treasury Offset Program (TOP), through which the Treasury may 
collect any delinquent debts they owe to Federal agencies and states by 
offsetting those debts against all or part of their ACP payments to 
satisfy such debt. Even if some or all of a provider's ACP payment has 
been offset to satisfy an outstanding Federal or State debt, it is 
required to pass the ACP discount to the customer for the service or 
connected device claimed.
    186. Do Not Pay. Pursuant to the requirements of the Payment 
Integrity Information Act of 2019 (PIIA), the Commission must ensure 
that a thorough review of available databases with relevant information 
on eligibility occurs to determine program or award eligibility and 
prevent improper payments before the release of any Federal funds. 
Payment Integrity Information (PIIA), Public Law 116-117, 134 Stat. 113 
(2019). To meet this requirement, the Commission and USAC will make 
full use of the Do Not Pay system administered by the Treasury's Bureau 
of the Fiscal Service. If a check of the Do Not Pay system results in a 
finding that an ACP provider should not be paid, the Commission will 
withhold issuing commitments and payments.
    187. Database Connections for the Affordable Connectivity Program. 
To facilitate increased opportunity for automatic eligibility 
verification, USAC and the Commission have executed computer matching 
agreements (CMAs) with State and Federal partners for the EBB Program 
that allow USAC to continue to utilize those connections for the 
Affordable Connectivity Program, and the Commission directs USAC to 
continue to engage with State and Federal agencies with which there is 
no existing CMA for the Affordable Connectivity Program. In particular, 
the Commission expects USAC to continue to pursue establishing 
connections with eligibility databases for WIC, a new eligibility 
program under the Affordable Connectivity Program. The Infrastructure 
Act also requires the Secretaries of the Department of Health and Human 
Services (HHS), USDA, and the Department of Education to enter into a 
Memorandum of Understanding with USAC to share National Verifier data. 
Infrastructure Act, div. F, tit. V, sec. 60502(e).
1. Application of Other Part 54 Regulations
    188. The Infrastructure Act, 47 U.S.C. 1752(f), permits the 
Commission to apply rules contained in part 54 of the Commission's 
rules to the Affordable Connectivity Program.
    189. Subpart E. The Commission applies select portions of the 
regulations that control the Lifeline and EBB Program to the Affordable 
Connectivity Program. Specifically, the Commission applies the 
following definitions in section 54.400 to the Affordable Connectivity 
Program, subject to the further interpretations expounded upon in the 
Order: (f) Income; (g) duplicative support; (h) household; (i) National 
Lifeline Accountability Database or Database; (j) Qualifying assistance 
program; (k) Direct service; (l) Broadband internet access service; (o) 
National Lifeline Eligibility Verifier; and (p) Enrollment 
representatives. 47 CFR 54.400(f), (g), (h), (i), (j), (k), (l), (o), 
and (p).
    190. The Commission requires providers to submit a certification in 
their reimbursement claim that every subscriber claimed has used their 
supported service, as defined in 47 CFR 54.407(c)(2), in the last 
thirty days from the snapshot date for the relevant claims month or has 
timely cured their non-usage. Providers must retain documentation 
demonstrating the subscriber monthly usage to support this 
certification. To ensure that their ACP households are eligible to 
receive the affordable connectivity program benefit, a provider may not 
provide a consumer with an activated device that it represents enables 
use of affordable connectivity benefit supported service, nor may it 
activate service that it represents to be an ACP-supported service, 
unless and until it has: (1) Confirmed that the household is an 
eligible household, and; (2) completed the eligibility determination 
and certification and; (3) any other necessary enrollment steps 
expounded upon in the Order.
    191. To further bolster program integrity, the Commission applies 
the following sections of the Lifeline rules to the Affordable 
Connectivity Program: 47 CFR 54.407(a), (c)(2)(i)-(v), (d) and (e), 
pertaining to the number of participants as of the first of the month 
(snapshot), the definition of service usage, reimbursement 
certifications, and records; 47 CFR 54.417, pertaining to recordkeeping 
requirements; and 47 CFR 54.419, pertaining to the validity of e-
signatures.
    192. The Commission applies to the ACP the relevant subsections of 
47 CFR 54.404, outlining carrier interactions with the NLAD, and 
portions of 47 CFR 54.405 concerning carrier obligations and de-
enrollment. Specifically, the Commission applies 47 CFR 54.405(e)(1), 
(2), and (5), for de-enrollments generally, de-enrollments for 
duplicative support, and de-enrollments requested by the subscriber, 
respectively. The Commission directs

[[Page 8372]]

USAC to accept and process de-enrollment requests directly from 
Affordable Connectivity Program subscribers, and to notify the 
subscriber's provider when such a de-enrollment occurs.
    193. Subpart H. The Commission applies 47 CFR 54.702(c) prohibiting 
USAC from making policy, interpreting unclear provisions of the statute 
or rules, or interpreting the intent of Congress. Additionally, the 
Commission grants USAC the authority to conduct program audits of 
contributors and providers, as provided in 47 CFR 54.707, subject to 
the Commission's further direction in the Order.
    194. Subpart I. As a path for recourse to parties aggrieved by 
decisions issued by USAC, review of decisions issued by USAC to follow 
the requirements set forth in 47 CFR part 54, subpart I.
2. Delegations to the Bureaus and Office of Managing Director
    195. The Commission delegates authority to the Bureau and OMD to 
make necessary adjustments to the program administration and to provide 
additional detail and specificity to the requirements of the Affordable 
Connectivity Program to conform with the intent of the Order and ensure 
the efficient functioning of the program.
    196. The Commission delegates financial oversight of the program to 
OMD and directs it to work in coordination with the Bureau to ensure 
that all financial aspects of the program have adequate internal 
controls. OMD is required to consult with the Bureau on any policy 
matters affecting the program, consistent with 47 CFR 0.91(a). OMD, in 
coordination with the Bureau, may issue additional directions to USAC 
and program participants in furtherance of its responsibilities.
    197. In its administration of the Program, USAC is directed to 
comply with, on an ongoing basis, all applicable laws and Federal 
Government guidance on privacy and information security standards and 
requirements, such as the Privacy Act (5 U.S.C. 552a), relevant 
provisions in the Federal Information Security Modernization Act of 
2014 (44 U.S.C. 3551 et seq.), National Institute of Standards and 
Technology publications, and Office of Management and Budget guidance.
    198. The Commission recognizes that, once implementation of the 
Affordable Connectivity Program begins, the Commission or USAC may 
encounter unforeseen issues or problems with the administration of the 
Affordable Connectivity Program and the Commission delegates to 
Commission staff the authority to address and resolve such issues 
consistent with the requirements adopted by the Commission.

III. Severability

    199. All of the Affordable Connectivity Program rules that are 
adopted in the Order are designed to work in unison, and with existing 
Lifeline rules where noted, to implement the Affordable Connectivity 
Program, to offer discounts to eligible low-income households off of 
the cost of broadband service and certain connected devices, and to 
strengthen and protect the integrity of the program's administration. 
However, each of the separate Affordable Connectivity Program rules the 
Commission adopt here serve a particular function toward these goals. 
Therefore, it is the Commission's intent that each of the rules adopted 
herein shall be severable. If any of the rules is declared invalid or 
unenforceable for any reason, it is the Commission's intent that the 
remaining rules shall remain in full force and effect.

IV. Procedural Matters

    200. Regulatory Flexibility Act. The Regulatory Flexibility Act of 
1980, as amended (RFA), requires that an agency prepare a final 
regulatory flexibility analysis ``whenever an agency promulgates a 
final rule under [5 U.S.C. 553], after being required by that section 
or any other law to publish a general notice of proposed rulemaking.'' 
5 U.S.C. 604(a). Pursuant to the Consolidated Appropriations Act, as 
extended by the Infrastructure Act, 5 U.S.C. 553 generally does not 
apply to the rulemaking proceeding implementing the Affordable 
Connectivity Program. See 47 U.S.C. 1752(h)(1). Furthermore, as 
discussed preceding, the Commission finds ``good cause'' under 5 U.S.C. 
553(b)(B) to adopt the consumer protection provisions enumerated under 
47 U.S.C. 1752(b)(11) without strictly following the notice procedures 
specified in 5 U.S.C. 553(b), to the extent necessary, because 
following such procedures would be ''impracticable, unnecessary, [and] 
contrary to the public interest'' in light of the statutory deadline 
for action to extend the EBB Program. 5 U.S.C. 553(b)(B). Accordingly, 
no Final Regulatory Flexibility Analysis is required for the Report and 
Order.
    201. 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 the regulations 
implementing the Affordable Connectivity Program are a ``major rule'' 
under the Congressional Review Act, 5 U.S.C. 804(2). By exempting this 
rulemaking proceeding, in most respects, from the notice and comment 
provisions of the Administrative Procedure Act, 5 U.S.C. 553(b), the 
Commission concludes that Congress has determined notice and public 
procedure under the Administrative Procedure Act to be impracticable, 
unnecessary, or contrary to the public interest. In addition, the 
exemption of this proceeding from the Administrative Procedure Act 
requirement that rules cannot become effective until 30 days after 
publication in the Federal Register, 5 U.S.C. 553(d), demonstrates 
Congressional intent that the rules the Commission adopt shall become 
effective without delay. Furthermore, with respect to the consumer 
protection provisions enumerated under 47 U.S.C. 1752(b)(11), the 
Commission finds good cause, to the extent necessary, to adopt these 
rules without notice and public procedure because implementing the rest 
of the program without these statutorily mandated consumer protections 
would undermine the overall scheme. Accordingly, the Commission finds 
for good cause that notice and public procedure on the rules adopted 
herein are impracticable, unnecessary, or contrary to the public 
interest, and therefore the rules promulgated in the Report and Order 
will become effective upon the dates specified herein pursuant to 5 
U.S.C. 808(2). The Commission will send a copy of this Report and Order 
to Congress and the Government Accountability Office pursuant to 5 
U.S.C. 801(a)(1)(A).
    202. Paperwork Reduction Act. Pursuant to 47 U.S.C. 1752(h)(2), the 
collection of information sponsored or conducted under the regulations 
promulgated in the Report and Order is deemed not to constitute a 
collection of information for the purposes of the Paperwork Reduction 
Act, 44 U.S.C. 3501-3521.

Ordering Clauses

    203. Accordingly, it is ordered that, pursuant to the authority 
contained in Section 904 of Division N, Title IX of the Consolidated 
Appropriations Act, 2021, Public Law 116-260, 134 Stat. 1182, as 
amended by Infrastructure Investment and Jobs Act, Public Law 117-58, 
135 Stat. 429 (2021), this Report and Order is adopted.
    204. It is further ordered that part 54 of the Commission's rules, 
47 CFR part 54, is amended as set forth following, and such rule 
amendments shall be effective March 16, 2022, except for new

[[Page 8373]]

47 CFR 54.1802(b), 54.1804, 54.1807(b), 54.1808(c)(1)-(2), 54.1809(c), 
and 54.1810(a)-(b), which shall be effective April 15, 2022.

List of Subjects in 47 CFR Part 54

    Communications common carriers, Health facilities, Infants and 
children, internet, Libraries, Reporting and recordkeeping 
requirements, Schools, Telecommunications, Telephone.

Federal Communications Commission.
Marlene Dortch,
Secretary.

Final Rules

    For the reasons discussed in the preamble, the Federal 
Communications Commission amends 47 CFR part 54 as follows:

PART 54--UNIVERSAL SERVICE

0
1. The authority for part 54 is revised 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, 1601-1609, and 1752, unless 
otherwise noted.


0
2. Effective March 16, 2022, add subpart R, consisting of Sec. Sec.  
54.1800 through 54.1812, to read as follows:

Subpart R--Affordable Connectivity Program

Sec.
54.1800 Definitions.
54.1801 Participating providers.
54.1802 Affordable connectivity benefit.
54.1803 Affordable Connectivity Program support amounts.
54.1804 [Reserved]
54.1805 Household qualification for Affordable Connectivity Program.
54.1806 Household eligibility determinations and annual 
recertification.
54.1807 Enrollment representative registration and compensation.
54.1808 Reimbursement for providing monthly affordable connectivity 
benefit.
54.1809 De-enrollment of subscribers from the Affordable 
Connectivity Program.
54.1810 Consumer protection requirements.
54.1811 Recordkeeping requirements.
54.1812 Validity of electronic signatures.

Subpart R--Affordable Connectivity Program


Sec.  54.1800  Definitions.

    (a) Administrator. The term ``Administrator'' means the Universal 
Service Administrative Company.
    (b) Affordable connectivity benefit. The term ``affordable 
connectivity benefit'' means a monthly discount for an eligible 
household, applied to the actual amount charged to such household, in 
an amount equal to such amount charged, but not more than $30, or, if 
an internet service offering is provided to an eligible household on 
Tribal land, not more than $75.
    (c) Broadband internet access service. The term ``broadband 
internet access service'' has the meaning given such term in 47 CFR 
8.1(b) or any successor regulation.
    (d) Broadband provider. The term ``broadband provider'' means a 
provider of broadband internet access service.
    (e) Commission. The term ``Commission'' means the Federal 
Communications Commission.
    (f) Connected device. The term ``connected device'' means a laptop 
or desktop computer or a tablet.
    (g) Designated as an eligible telecommunications carrier. The term 
``designated as an eligible telecommunications carrier,'' with respect 
to a broadband provider, means the broadband provider is designated as 
an eligible telecommunications carrier under section 214(e) of the 
Communications Act of 1934 (47 U.S.C. 214(e)).
    (h) Direct service. As used in this subpart, direct service means 
the provision of service directly to the qualifying low-income 
consumer.
    (i) Duplicative support. ``Duplicative support'' exists when an 
Affordable Connectivity Program subscriber or household is receiving 
two or more Affordable Connectivity Program services concurrently or 
two or more subscribers in a household have received a connected device 
with an Affordable Connectivity Program discount.
    (j) Eligible household. The term ``eligible household'' means, 
regardless of whether the household or any member of the household 
receives support under subpart E of this Part, and regardless of 
whether any member of the household has any past or present arrearages 
with a broadband provider, a household in which--
    (1) At least one member of the household meets the qualifications 
in Sec.  54.409(a)(2) or (b) of this part (or any successor 
regulation);
    (2) The household's income as defined in Sec.  54.1800(k) is at or 
below 200% of the Federal Poverty Guidelines for a household of that 
size;
    (3) At least one member of the household has applied for and been 
approved to receive benefits under the free and reduced price lunch 
program under the Richard B. Russell National School Lunch Act (42 
U.S.C. 1751 et seq.) or the school breakfast program under section 4 of 
the Child Nutrition Act of 1966 (42 U.S.C. 1773), or at least one 
member of the household is enrolled in a school or school district that 
participates in the Community Eligibility Provision (42 U.S.C. 1759a);
    (4) At least one member of the household has received a Federal 
Pell Grant under section 401 of the Higher Education Act of 1965 (20 
U.S.C. 1070a) in the current award year, if such award is verifiable 
through the National Verifier or National Lifeline Accountability 
Database or the participating provider verifies eligibility under Sec.  
54.1806(a)(2);
    (5) At least one member of the household meets the eligibility 
criteria for a participating provider's existing low-income program, 
subject to the requirements of Sec.  54.1806(a)(2); or
    (6) At least one member of the household receives assistance 
through the special supplemental nutritional program for women, infants 
and children established by section 17 of the Child Nutrition Act of 
1996 (42 U.S.C. 1786).
    (k) Enrollment representative. ``Enrollment representative'' means 
an employee, agent, contractor, or subcontractor, acting on behalf of a 
participating provider or third-party entity, who directly or 
indirectly provides information to the Administrator for the purpose of 
eligibility verification, enrollment, subscriber personal information 
updates, benefit transfers, or de-enrollment.
    (l) Household. A ``household'' is any individual or group of 
individuals who are living together at the same address as one economic 
unit. A household may include related and unrelated persons. An 
``economic unit'' consists of all adult individuals contributing to and 
sharing in the income and expenses of a household. An adult is any 
person eighteen years or older. If an adult has no or minimal income, 
and lives with someone who provides financial support to him/her, both 
people shall be considered part of the same household. Children under 
the age of eighteen living with their parents or guardians are 
considered to be part of the same household as their parents or 
guardians.
    (m) Income. ``Income'' means gross income as defined under section 
61 of the Internal Revenue Code, 26 U.S.C. 61, for all members of the 
household. This means all income actually received by all members of 
the household from whatever source derived, unless specifically 
excluded by the Internal Revenue Code, Part III of Title 26, 26 U.S.C. 
101 et seq.
    (n) Internet service offering. The term ``internet service 
offering'' means, with respect to a broadband provider, broadband 
internet access service

[[Page 8374]]

provided by such provider to a household.
    (o) Lifeline qualifying assistance program. A ``Lifeline qualifying 
assistance program'' means any of the Federal or Tribal assistance 
programs the participation in which, pursuant to Sec.  54.409(a) or 
(b), qualifies a consumer for Lifeline service, including Medicaid; 
Supplemental Nutrition Assistance Program; Supplemental Security 
Income; Federal Public Housing Assistance; Veterans and Survivors 
Pension Benefit; Bureau of Indian Affairs general assistance; Tribally 
administered Temporary Assistance for Needy Families (Tribal TANF); 
Head Start (only those households meeting its income qualifying 
standard); or the Food Distribution Program on Indian Reservations 
(FDPIR).
    (p) National Lifeline Accountability Database. The ``National 
Lifeline Accountability Database'' is an electronic system, with 
associated functions, processes, policies and procedures, to facilitate 
the detection and elimination of duplicative support, as directed by 
the Commission.
    (q) National Lifeline Eligibility Verifier or National Verifier. 
The ``National Lifeline Eligibility Verifier'' or ``National Verifier'' 
is an electronic and manual system with associated functions, 
processes, policies and procedures, to facilitate the determination of 
consumer eligibility for the Lifeline program and Affordable 
Connectivity Program, as directed by the Commission.
    (r) Participating provider. The term ``participating provider'' 
means a broadband provider that--
    (1) Is designated as an eligible telecommunications carrier; or
    (2) Meets the requirements established by the Commission for 
participation in the Affordable Connectivity Program and is approved by 
the Commission under Sec.  54.1801(b); and
    (3) Elects to participate in the Affordable Connectivity Program; 
and
    (4) Has not been removed or voluntarily withdrawn from the 
Affordable Connectivity Program pursuant to Sec.  54.1801(e).
    (s) Tribal lands. For purposes of this subpart, ``Tribal lands'' 
include any federally recognized Indian tribe's reservation, pueblo, or 
colony, including former reservations in Oklahoma; Alaska Native 
regions established pursuant to the Alaska Native Claims Settlement Act 
(85 Stat. 688); Indian allotments; Hawaiian Home Lands--areas held in 
trust for Native Hawaiians by the State of Hawaii, pursuant to the 
Hawaiian Homes Commission Act, 1920 July 9, 1921, 42 Stat. 108, et. 
seq., as amended; and any land designated as such by the Commission for 
purposes of subpart E of this part pursuant to the designation process 
in Sec.  54.412.


Sec.  54.1801  Participating providers.

    (a) Eligible telecommunications carriers. A broadband provider that 
is designated as an eligible telecommunications carrier may participate 
in the Affordable Connectivity Program as a participating provider.
    (b) Other broadband providers. A broadband provider that is not 
designated as an eligible telecommunications carrier may seek approval 
from the Wireline Competition Bureau to participate in the Affordable 
Connectivity Program as a participating provider.
    (1) The Wireline Competition Bureau shall review and act on 
applications to be designated as a participating provider on an 
expedited basis. Such applications shall contain:
    (i) The states or territories in which the provider plans to 
participate;
    (ii) The service areas in which the provider has the authority, if 
needed, to operate in each State or territory, but has not been 
designated an eligible telecommunications carrier; and,
    (iii) Certifications of the provider's plan to combat waste, fraud, 
and abuse, which shall:
    (A) Confirm a household's eligibility for the Program through 
either the National Verifier or a Commission-approved eligibility 
verification process prior to seeking reimbursement for the respective 
subscriber;
    (B) Follow all enrollment requirements and obtain all 
certifications as required by the Program, including providing eligible 
households with information describing the Program's eligibility 
requirements, one-per-household rule, and enrollment procedures;
    (C) Interact with the necessary Administrator systems, including 
the National Verifier, National Lifeline Accountability Database, and 
Representative Accountability Database, before submitting claims for 
reimbursement, including performing the necessary checks to ensure the 
household is not receiving duplicative benefits within the Program;
    (D) De-enroll from the Program any household it has a reasonable 
basis to believe is no longer eligible to receive the benefit 
consistent with Program requirements;
    (E) Comply with the Program's document retention requirements and 
agree to make such documentation available to the Commission or USAC, 
upon request or any entities (for example, auditors) operating on their 
behalf; and
    (F) Agree to the Commission's enforcement and forfeiture authority.
    (2) Notwithstanding paragraph (b)(1) of this section, the Wireline 
Competition Bureau shall automatically approve as a participating 
provider a broadband provider that has an established program as of 
April 1, 2020, that is widely available and offers internet service 
offerings to eligible households and maintains verification processes 
that are sufficient to avoid fraud, waste, and abuse. Such applications 
seeking automatic approval shall contain:
    (i) The States or territories in which the provider plans to 
participate;
    (ii) The service areas in which the provider has the authority, if 
needed, to operate in each State or territory, but has not been 
designated an Eligible Telecommunications Carrier; and,
    (iii) A description, supported by documentation, of the established 
program with which the provider seeks to qualify for automatic 
admission to the Affordable Connectivity Program.
    (c) Election notice. All participating providers shall file an 
election notice with the Administrator. The election notice shall be 
submitted in a manner and form consistent with the direction of the 
Wireline Competition Bureau and the Administrator. All participating 
providers shall maintain up-to-date contact and other administrative 
information contained in the election notice as designated by the 
Wireline Competition Bureau and the Administrator. These updates shall 
be made within 10 business days of the change in designated information 
contained in the election notice. The election notice shall be made 
under penalty of perjury or perjury and at a minimum should contain:
    (1) The states or territories in which the provider plans to 
participate in the Affordable Connectivity Program;
    (2) A statement that, in each State or territory, the provider was 
a ``broadband provider;''
    (3) A list of states or territories where the provider is an 
existing Eligible Telecommunications Carrier, if any;
    (4) A list of states or territories where the provider received 
Wireline Competition Bureau approval, whether automatic or expedited, 
to participate, if any;
    (5) Whether the provider intends to distribute connected devices, 
and if so, documentation and information detailing the equipment, co-
pay amount

[[Page 8375]]

charged to eligible households, and market value of the connected 
devices in compliance with the rules and orders of the Affordable 
Connectivity Program; and
    (6) Any other information necessary to establish the participating 
provider in the Administrator's systems.
    (d) Alternative verification process application. In accordance 
with Sec.  54.1806(a)(2), all participating providers seeking to verify 
household eligibility with an alternative verification process shall 
submit an application in a manner and form consistent with the 
direction of Wireline Competition Bureau. All participating providers 
shall maintain up-to-date information contained in the application as 
designated by the Wireline Competition Bureau. These updates shall be 
made within 10 business days of the change in designated information. 
The alternative verification process application shall be made under 
penalty of perjury and at a minimum should contain:
    (1) A description of how the participating provider will collect a 
prospective subscriber's--
    (i) Full name,
    (ii) Phone number,
    (iii) Date of birth,
    (iv) Email address,
    (v) Home and mailing addresses,
    (vi) Name and date of birth of the benefit qualifying person if 
different than applicant,
    (vii) Household eligibility criteria and documentation supporting 
verification of eligibility, and
    (viii) Certifications from the household that the information 
included in the application is true.
    (2) A description of the process the participating provider uses to 
verify the required subscriber information contained in paragraph 
(d)(1) of this section and why this process is sufficient to prevent 
waste, fraud, and abuse,
    (3) A description of the training the participating provider uses 
for its employees and agents to prevent ineligible enrollments, 
including enrollments based on fabricated documents,
    (4) A description of why any of the criteria contained in 
paragraphs (d)(1) through (3) of this section is not necessary to 
prevent waste, fraud, and abuse if any of the criteria are not part of 
the alternative verification process, and
    (5) A description of why the participating provider's established 
program requires approval of an alternative verification process and 
why the participating provider proposes to use an alternative 
verification process instead of the National Verifier for eligibility 
determinations.
    (e) Voluntary withdrawal or involuntary removal of participating 
providers from the Affordable Connectivity Program--(1) Definitions. 
For purposes of this paragraph (e):
    (i) Removal. Removal means involuntary discontinuation of a 
provider's participation in the Affordable Connectivity Program 
pursuant to the process outlined in paragraphs (e)(2)(ii) and (iii) of 
this section.
    (ii) Suspension. Suspension means exclusion of a participating 
provider from activities related to the Affordable Connectivity Program 
for a temporary period pending completion of a removal proceeding.
    (2) Suspension and removal--(i) Suspension and removal in general. 
The Commission may suspend and/or remove a participating provider for 
any of the causes in paragraph (e)(2)(ii) of this section. Suspension 
or removal of a participating provider constitutes suspension or 
removal of all its divisions, other organizational elements, and 
individual officers and employees, unless the Commission limits the 
application of the suspension or removal to specifically identified 
divisions, other organizational elements, or individuals or to specific 
types of transactions.
    (ii) Causes for suspension or removal. Causes for suspension or 
removal are any of the following:
    (A) Violations of the rules or requirements of the Affordable 
Connectivity Program, the Emergency Broadband Benefit Program, the 
Lifeline program, the Emergency Connectivity Fund or successor 
programs, or any of the Commission's Universal Service Fund programs;
    (B) Any action that indicates a lack of business integrity or 
business honesty that seriously and directly affects the provider's 
responsibilities under the Affordable Connectivity Program, that 
undermines the integrity of the Affordable Connectivity Program, or 
that harms or threatens to harm prospective or existing program 
participants, including without limitation fraudulent enrollments.
    (C) A conviction or civil judgment for attempt or commission of 
fraud, theft, embezzlement, forgery, bribery, falsification or 
destruction of records, false statements, receiving stolen property, 
making false claims, obstruction of justice, or similar offense, that 
arises out of activities related to the Affordable Connectivity 
Program, the Emergency Broadband Benefit Program, the Lifeline program, 
the Emergency Connectivity Fund or successor programs, or any of the 
Commission's Universal Service Fund programs.
    (iii) Suspension and removal procedures. The following procedures 
apply to the suspension and removal of a participating provider:
    (A) The Chief of the Wireline Competition Bureau or Enforcement 
Bureau will commence a removal proceeding by providing to the 
participating provider a notice via electronic mail and/or U.S. mail 
setting forth the legal and factual bases for the initiation of the 
removal proceeding (as well as notice of any interim measures taken 
under paragraph (e)(2)(iii)(B) of this section and reasons therefor) 
and informing the provider of its duty to respond within 30 days of the 
date of the notice.
    (B) Concurrent with the issuance of such notice commencing the 
removal proceeding, or at any time before a final determination in the 
proceeding is rendered, the Chief of the Wireline Competition Bureau or 
Enforcement Bureau may, in light of the facts and circumstances set 
forth in the notice commencing the removal proceeding, and with notice 
to the provider of this interim measure, direct that the participating 
provider be removed from the Commission's list of providers, from the 
Administrator's Companies Near Me Tool, or from any similar records, 
and also may direct the Administrator to temporarily suspend the 
provider's ability to enroll or transfer in new subscribers during the 
pendency of the removal proceeding. Any such interim actions may be 
taken only {i{time}  if based upon adequate evidence of willful 
misconduct that would warrant removal under paragraph (e)(2)(ii) of 
this section, and {ii{time}  after determining that immediate action is 
necessary to protect the public interest. In addition, the Chief of the 
Wireline Competition Bureau or Enforcement Bureau may also direct, with 
notice to the provider, that an interim funding hold (or partial hold) 
be placed on the provider upon a determination that there is adequate 
evidence that the provider's misconduct is likely to cause or has 
already resulted in improper claims for Affordable Connectivity Program 
reimbursement and is necessary to protect the public interest. Any 
funding hold should be tailored in a manner that relates to and is 
proportionate to the alleged misconduct.
    (C) The participating provider shall respond within 30 days of the 
date of the notice commencing the removal proceeding with any relevant 
evidence demonstrating that a rule violation or

[[Page 8376]]

other conduct warranting removal has not in fact occurred and that the 
provider should not be removed from the Affordable Connectivity 
Program. Failure to respond or to provide evidence in a timely manner 
will result in a finding against the provider, removal from the 
program, and revocation of the provider's authorization to participate 
in the Affordable Connectivity Program.
    (D) Within 30 days of receiving the response, the Chief of the 
Wireline Competition Bureau or Enforcement Bureau will make a 
determination and issue an order providing a detailed explanation for 
the determination. If the Chief of the Wireline Competition Bureau or 
Enforcement Bureau determines that a preponderance of the evidence 
fails to demonstrate that there has been conduct warranting removal, 
then any measures taken under paragraph (e)(2)(iii)(B) of this section 
will be discontinued immediately. If the Chief of the Wireline 
Competition Bureau or Enforcement Bureau determines by a preponderance 
of the evidence that there has been conduct warranting removal, the 
provider's authorization to participate in the Affordable Connectivity 
Program will be revoked, and the provider shall be immediately removed 
from the program. Upon removal from the program, the former 
participating provider shall be barred from seeking to rejoin, and from 
participating in, the Affordable Connectivity Program for at least five 
years, or such longer period as provided for in the order, based upon 
review of all relevant circumstances. Any such providers will be 
similarly barred from participation in any Affordable Connectivity 
Program successor program during the removal period determined under 
the order.
    (E) A provider may request reconsideration of the Bureau Chief's 
determination under paragraph (e)(2)(iii)(D) of this section or submit 
a request for review by the full Commission pursuant to the 
Commission's rules. See Sec. Sec.  1.106, 1.115 of this chapter. A 
provider may also seek a stay of the Bureau Chief's determination under 
Sec. Sec.  1.43 and 1.102(b)(3) of this chapter.
    (3) Voluntary withdrawal. A participating provider may withdraw its 
election to participate in the Affordable Connectivity Program by 
submitting a written notice of voluntary withdrawal to the 
Administrator at least 90 days before the intended effective date of 
the withdrawal. The notice of voluntary withdrawal shall include 
statements that the provider is complying with each of the transition 
provisions set forth in paragraph (d)(4) of this section.
    (4) Transition provisions for participating providers that are 
removed or that voluntarily withdraw from the program and their 
subscribers. (i) A participating provider shall cease to enroll or 
transfer in new households or to advertise or market the discounted 
rates for its services subject to the affordable connectivity benefit--
    (A) Immediately upon the effective date of the final removal 
determination, unless the provider has already been precluded on an 
interim basis from transferring in or enrolling new households; or
    (B) At least 90 days before the effective date of the provider's 
voluntary withdrawal from the program.
    (ii) A participating provider shall provide notices regarding its 
removal from the program to its existing eligible household subscribers 
to which it provides service at discounted rates subject to the 
affordable connectivity benefit.
    (A) The provider shall issue the first notice within 30 days of the 
removal determination and the second notice at least 15 days before the 
effective date of the provider's removal from the Affordable 
Connectivity Program.
    (B) Such notices shall include--
    (1) A statement that the participating provider will be removed 
from and no longer be participating in the Affordable Connectivity 
Program;
    (2) The effective date of the provider's removal from the 
Affordable Connectivity Program;
    (3) A statement that upon the effective date of the removal, the 
service purchased by the eligible household will no longer be available 
from the provider at the discounted rate subject to the affordable 
connectivity benefit;
    (4) The amount that the eligible household will be expected to pay 
if it continues purchasing the service from the provider after the 
discounted rate is no longer available;
    (5) An explanation that in order to continue receiving internet 
service with an affordable connectivity benefit after the provider has 
been removed from the program, the eligible household must transfer its 
affordable connectivity benefit to a different participating provider;
    (6) Information on how to locate providers participating in the 
Affordable Connectivity Program, including the web address for USAC's 
Companies Near Me tool, any provider listing published by the 
Commission, and other resources as applicable;
    (7) Instructions on how to find and select a new participating 
provider and to request such a transfer;
    (8) The provider's customer service telephone number and the 
telephone number and email address of the Administrator's Affordable 
Connectivity Program support center; and
    (9) Other information as determined by the Wireline Competition 
Bureau.
    (iii) A participating provider shall provide written notices 
regarding its voluntary withdrawal from the program to its existing 
eligible household subscribers to which it provides service at 
discounted rates subject to the affordable connectivity benefit.
    (A) The provider shall issue such notices 90 days, 60 days, and 30 
days before the effective date of the provider's voluntary withdrawal 
from the program.
    (B) Such notices shall include--
    (1) The date when the service purchased by the eligible household 
will no longer be available from the provider at the discounted rate 
subject to the affordable connectivity benefit;
    (2) The amount that the eligible household will be expected to pay 
if it continues purchasing the service from the provider after the 
affordable connectivity program discount is no longer available and the 
effective date of the new rate;
    (3) An explanation that in order to continue receiving internet 
service with an affordable connectivity benefit after the provider 
withdraws from the Affordable Connectivity Program, the eligible 
household shall transfer its affordable connectivity benefit to a 
different participating provider;
    (4) Instructions on how to find and select a new participating 
provider and to request such a transfer;
    (5) Information on how to locate providers participating in the 
Affordable Connectivity Program, including the web address for the 
Administrator's Companies Near Me tool, any provider listing published 
by the Commission, and other resources as applicable; and
    (6) The provider's customer service telephone number and the 
telephone number and email address of the Administrator's Affordable 
Connectivity Program support center.
    (iv) A provider shall continue providing service to its existing 
eligible household subscribers at discounted rates subject to the 
affordable connectivity benefit--
    (A) Until the date 60 days after the effective date of the removal 
or order; or
    (B) Until the effective date of its voluntary withdrawal from the 
program.
    (v) A provider that has been removed or that has voluntarily 
withdrawn from

[[Page 8377]]

the program may continue to request and receive reimbursements from the 
Administrator for the amount of the affordable connectivity benefit 
discounts that it provided to eligible household subscribers during the 
required 60 days following removal or until voluntary withdrawal, 
subject to the deadline for filing reimbursement claims.
    (vi) The provider shall retain records demonstrating its compliance 
with these transition requirements.
    (f) Annual certification by participating providers. An officer of 
the participating provider who oversees Affordable Connectivity Program 
business activities shall annually certify, under the penalty of 
perjury, that the participating provider has policies and procedures in 
place to comply with all Affordable Connectivity Program rules and 
procedures. This annual certification shall be made in a manner 
prescribed by the Wireline Competition Bureau and the Administrator. At 
a minimum, the annual certification requires the aforementioned officer 
of the participating provider attest to:
    (1) The participating provider having policies and procedures in 
place to ensure that its enrolled households are eligible to receive 
Affordable Connectivity Program support;
    (2) The participating provider having policies and procedures in 
place to ensure it accurately and completely provides information to 
required administrative systems, including the National Verifier, 
National Lifeline Accountability Database, Representative 
Accountability Database, and other Administrator Systems; and,
    (3) The participating provider acknowledging that:
    (i) It is subject to the Commission's enforcement, fine, or 
forfeiture authority under the Communications Act;
    (ii) It is liable for violations of the Affordable Connectivity 
Program rules and that its liability extends to violations by its 
agents, contractors, and representatives;
    (iii) Failure to be in compliance and remain in compliance with the 
Affordable Connectivity Program rules and orders, or for its agents, 
contractors, or representatives to fail to be in compliance, may result 
in the denial of funding, cancellation of funding commitments, and the 
recoupment of past disbursements; and
    (iv) Failure to comply with the rules and orders governing the 
Affordable Connectivity Program could result in civil or criminal 
prosecution by law enforcement authorities.


Sec.  54.1802  Affordable connectivity benefit.

    (a) The Affordable Connectivity Program will provide reimbursement 
to a participating provider for the monthly affordable connectivity 
benefit on the price of broadband internet access service (including 
associated equipment necessary to provide such service) it provides to 
an eligible household plus any amount the participating provider is 
entitled to receive for providing a connected device to such a 
household under Sec.  54.1803(b).
    (b) [Reserved]


Sec.  54.1803  Affordable Connectivity Program support amounts.

    (a) The monthly affordable connectivity benefit support amount for 
all participating providers shall equal the actual discount provided to 
an eligible household off of the actual amount charged to such 
household but not more than $30.00 per month, if that provider 
certifies that it will pass through the full amount of support to the 
eligible household, or not more than $75.00 per month, if that provider 
certifies that it will pass through the full amount of support to the 
eligible household on Tribal lands, as defined in Sec.  54.1800(s).
    (b) A participating provider that, in addition to providing a 
broadband internet access service subject to the affordable 
connectivity benefit to an eligible household, supplies such household 
with a connected device may be reimbursed by an amount equal to the 
market value of the device less the amount charged to and paid by the 
eligible household, but no more than $100.00 for such connected device.
    (1) A participating provider that provides a connected device to an 
eligible household shall charge and collect from the eligible household 
more than $10.00 but less than $50.00 for such connected device;
    (2) An eligible household may receive, and a participating provider 
may receive reimbursement for, no more than one (1) connected device 
per eligible household;
    (3) The eligible household shall not receive such a discount for a 
connected device, and the participating provider shall not receive 
reimbursement for providing the connected device at such a discount, if 
the household or any member of the household previously received a 
discounted connected device from a participating provider in the 
Emergency Broadband Benefit Program or in the Affordable Connectivity 
Program.


Sec.  54.1804  [Reserved]


Sec.  54.1805  Household qualifications for Affordable Connectivity 
Program.

    (a) To qualify for the Affordable Connectivity Program, a household 
must constitute an eligible household under the definition in Sec.  
54.1800(j).
    (b) In addition to meeting the qualifications provided in paragraph 
(a) of this section, in order to qualify to receive an affordable 
connectivity benefit from a participating provider, neither the 
eligible household nor any member of the household may already be 
receiving another affordable connectivity benefit from that 
participating provider or any other participating provider.


Sec.  54.1806  Household eligibility determinations and annual 
recertification.

    (a) Eligibility verification processes. To verify whether a 
household is an eligible household, a participating provider shall--
    (1) Use the National Verifier; or
    (2) Rely upon an alternative verification process of the 
participating provider, if--
    (i) The participating provider submits information as required by 
the Commission regarding the alternative verification process prior to 
seeking reimbursement; and
    (ii) Not later than 7 days after receiving the information required 
under paragraph(a)(2)(i) of this section, the Wireline Competition 
Bureau--
    (A) Determines that the alternative verification process will be 
sufficient to avoid waste, fraud, and abuse; and
    (B) Notifies the participating provider of the determination under 
paragraph (a)(2)(ii)(A) of this section.
    (3) Rely on a school to verify the eligibility of a household based 
on the participation of the household in the free and reduced price 
lunch program or the school breakfast program as described in Sec.  
54.1800(j)(3). The participating provider shall retain documentation 
demonstrating the school verifying eligibility, the program(s) that the 
school participates in, the qualifying household, and the program(s) 
the household participates in.
    (4) Check its own electronic systems, whether such systems are 
maintained by the participating provider or a third party, to confirm 
that the household is not already receiving another affordable 
connectivity benefit from that participating provider.
    (5) Collect and retain documentation establishing at least one 
member of the household is enrolled in a school or school district that 
participates in the

[[Page 8378]]

National School Lunch Program's Community Eligibility Provision (CEP) 
(42 U.S.C. 1759a) if enrolling households based on CEP eligibility.
    (b) Participating providers' obligations. All participating 
providers shall implement policies and procedures for ensuring that 
their Affordable Connectivity Program households are eligible to 
receive the affordable connectivity benefit. A provider may not provide 
a consumer with service that it represents to be Affordable 
Connectivity Program-supported service or seek reimbursement for such 
service, unless and until it has:
    (1) Confirmed that the household is an eligible household pursuant 
to Sec.  54.1805(a) and (b);
    (2) Completed any other necessary enrollment steps, and;
    (3) Securely retained all information and documentation it receives 
related to the eligibility determination and enrollment, consistent 
with Sec.  54.1811.
    (c) One-per-household worksheet. If the prospective household 
shares an address with one or more existing Affordable Connectivity 
Program subscribers according to the National Lifeline Accountability 
Database or National Verifier, the prospective subscriber shall 
complete a form certifying compliance with the one-per-household rule 
set forth in Sec.  54.1805(b) prior to initial enrollment.
    (d) The National Lifeline Accountability Database. In order to 
receive Affordable Connectivity Program support, participating 
providers shall comply with the following requirements:
    (1) All participating providers shall query the National Lifeline 
Accountability Database to determine whether a prospective subscriber 
is currently receiving an Affordable Connectivity Program supported 
service from another participating provider; and whether anyone else 
living at the prospective subscriber's residential address is currently 
receiving an Affordable Connectivity Program-supported service.
    (2) If the National Lifeline Accountability Database indicates that 
a prospective subscriber who is not seeking to transfer his or her 
affordable connectivity benefit, is currently receiving an Affordable 
Connectivity Program-supported service, the participating provider 
shall not provide and shall not seek or receive Affordable Connectivity 
Program reimbursement for that subscriber.
    (3) Participating providers may query the National Lifeline 
Accountability Database only for the purposes provided in paragraphs 
(d)(1) and (2) and (e)(1) and (2) of this section, and to determine 
whether information with respect to its subscribers already in the 
National Lifeline Accountability Database is correct and complete.
    (4) Participating providers shall transmit to the National Lifeline 
Accountability Database in a format prescribed by the Administrator 
each new and existing Affordable Connectivity Program subscriber's full 
name; full residential address; date of birth; the telephone number 
associated with the Affordable Connectivity Program service; the date 
on which the Affordable Connectivity Program discount was initiated; 
the date on which the Affordable Connectivity Program discount was 
terminated, if it has been terminated; the amount of support being 
sought for that subscriber; and the means through which the subscriber 
qualified for the Affordable Connectivity Program.
    (5) All participating providers shall update an existing Affordable 
Connectivity Program subscriber's information in the National Lifeline 
Accountability Database within ten business days of receiving any 
change to that information, except as described in paragraph (d)(7) of 
this section.
    (6) All participating providers shall obtain, from each new and 
existing subscriber, consent to transmit the subscriber's information. 
Prior to obtaining consent, the participating provider shall describe 
to the subscriber, using clear, easily understood language, the 
specific information being transmitted, that the information is being 
transmitted to the Administrator to ensure the proper administration of 
the Affordable Connectivity Program, and that failure to provide 
consent will result in subscriber being denied the affordable 
connectivity benefit.
    (7) When a participating provider de-enrolls a subscriber from the 
Affordable Connectivity Program, it shall transmit to the National 
Lifeline Accountability Database the date of Affordable Connectivity 
Program de-enrollment within one business day of de-enrollment.
    (8) All participating providers shall securely retain subscriber 
documentation that the participating provider reviewed to verify 
subscriber eligibility, for the purposes of production during audits or 
investigations or to the extent required by National Lifeline 
Accountability Database or National Verifier processes, which require, 
inter alia, verification of eligibility, identity, address, and age.
    (9) A participating provider shall not enroll or claim for 
reimbursement a prospective subscriber in the Affordable Connectivity 
Program if the National Lifeline Accountability Database or National 
Verifier cannot verify the subscriber's status as alive, unless the 
subscriber produces documentation to demonstrate his or her identity 
and status as alive.
    (10) A participating provider shall apply the Affordable 
Connectivity Program benefit no later than the start of the first 
billing cycle after the household's enrollment or transfer, and pass 
through the discount to the household prior to claiming reimbursement 
for the discount in the Affordable Connectivity Program.
    (e) Connected device reimbursement and the National Lifeline 
Accountability Database. In order to receive Affordable Connectivity 
Program reimbursement for a connected device, participating providers 
shall comply with Sec.  54.1803(b) and the following requirements:
    (1) Such participating provider shall query the National Lifeline 
Accountability Database to determine whether a prospective connected 
device benefit recipient has previously received a connected device 
benefit.
    (2) If the National Lifeline Accountability Database indicates that 
a prospective subscriber has received a connected device benefit, the 
participating provider shall not seek a connected device reimbursement 
for that subscriber.
    (3) Such participating provider shall not seek a connected device 
reimbursement for a subscriber that is not receiving the affordable 
connectivity benefit for service provided by the same participating 
provider, except that a participating provider may seek reimbursement 
for a connected device provided to a household if the household had 
been receiving an Affordable Connectivity Program-supported service 
from that provider at the time the connected device was supplied to the 
household, but the household subsequently transferred its benefit to 
another provider before the provider had an opportunity to claim the 
connected device.
    (4) Where two or more participating providers file a claim for a 
connected device reimbursement for the same subscriber, only the 
participating provider whose information was received and processed by 
the National Lifeline Accountability Database or Lifeline Claims System 
first, as determined by the Administrator, will be entitled to a 
connected device reimbursement for that subscriber.

[[Page 8379]]

    (5) All participating providers shall obtain from each subscriber 
consent to transmit the information required under paragraphs (d)(1) 
and (e)(1) of this section. Prior to obtaining consent, the 
participating provider shall describe to the subscriber, using clear, 
easily understood language, the specific information being transmitted, 
that the information is being transmitted to the Administrator to 
ensure the proper administration of the Affordable Connectivity Program 
connected device benefit, and that failure to provide consent will 
result in the subscriber being denied the Affordable Connectivity 
Program connected device benefit.
    (6) In a manner and form consistent with the direction of the 
Wireline Competition Bureau and the Administrator, a participating 
provider shall provide to the Administrator information concerning the 
connected device supplied to the household, including device type, 
device make, device model, subscriber ID of the household that received 
the device, date the device was delivered to the household, method used 
to provide the device (shipped, in store, or installed by provider), 
market value of the device, and amount paid by the household to the 
provider for the device. No claim for reimbursement for a connected 
device supplied by the participating provider to the household shall be 
submitted prior to payment by the household of the amount described in 
Sec.  54.1803(b)(1).
    (f) Annual eligibility re-certification. (1) Participating 
providers shall re-certify annually all Affordable Connectivity Program 
subscribers whose initial eligibility was verified through the 
participating provider's approved alternative verification process or 
through a school, except where the Administrator using the National 
Verifier is responsible for the annual recertification of Affordable 
Connectivity Program subscribers. The Administrator using the National 
Verifier will re-certify the eligibility of all other Affordable 
Connectivity Program subscribers. Affordable Connectivity Program 
subscribers who are also enrolled in Lifeline may rely on a successful 
recertification for the Lifeline program to satisfy this requirement.
    (2) In order to recertify a subscriber's eligibility for the 
Affordable Connectivity Program, a participating provider shall confirm 
a subscriber's current eligibility to receive an affordable 
connectivity benefit by following the eligibility process and 
requirements under paragraphs (b)(1) through (5) of this section and 
shall also follow the requirements and processes for either its 
alternative verification processes approved under paragraph (a)(2) of 
this section or the eligibility verification processes and requirements 
for school-based eligibility verifications in paragraph (a)(3) of this 
section, confirming that the subscriber still meets the program or 
income-based eligibility requirements for the Affordable Connectivity 
Program, and documenting the results of that review.
    (3) Where the Administrator is responsible for re-certification of 
a subscriber's Affordable Connectivity Program eligibility, the 
Administrator shall confirm a subscriber's current eligibility to 
receive Affordable Connectivity Program service by:
    (i) Querying the appropriate eligibility databases, confirming that 
the subscriber still meets the program-based eligibility requirements 
for the Affordable Connectivity Program, and documenting the results of 
that review; or
    (ii) Querying the appropriate income databases, confirming that the 
subscriber continues to meet the income-based eligibility requirements 
for the Affordable Connectivity Program, and documenting the results of 
that review; or
    (iii) If the subscriber's program-based or income-based eligibility 
for the Affordable Connectivity Program cannot be determined by 
accessing one or more eligibility or income databases, then the 
Administrator shall obtain a signed certification from the subscriber 
confirming the subscriber's continued eligibility. If the subscriber's 
eligibility was previously confirmed through an eligibility or income 
database during enrollment or a prior recertification and the 
subscriber is no longer included in any eligibility or income database 
the Administrator shall obtain both an approved Annual Recertification 
Form and acceptable documentation demonstrating eligibility from that 
subscriber to complete the recertification process.
    (4) Where the Administrator is responsible for re-certification of 
subscribers' Affordable Connectivity Program eligibility, the 
Administrator shall provide to each provider the results of its annual 
re-certification efforts with respect to that provider's subscribers.
    (5) If a provider is unable to re-certify a subscriber or has been 
notified by the Administrator that it is unable to re-certify a 
subscriber, the provider shall comply with the de-enrollment 
requirements provided for in Sec.  54.1809(d).
    (6) One-Per-Household Worksheet--at re-certification, if the 
subscriber resides at the same address as another Affordable 
Connectivity Program subscriber and there are changes to the 
subscriber's household relevant to whether the subscriber is only 
receiving one affordable connectivity benefit per household, then the 
subscriber shall complete a new Household Worksheet. Providers must 
retain the one-per-household worksheet for subscribers subject to this 
requirement in accordance with Sec.  54.1811.


Sec.  54.1807  Enrollment representative registration and compensation.

    (a) Enrollment representative registration. A participating 
provider shall require that enrollment representatives register with 
the Administrator before the enrollment representative can provide 
information directly or indirectly to the National Lifeline 
Accountability Database or the National Verifier.
    (1) As part of the registration process, participating providers 
shall require that all enrollment representatives provide the 
Administrator with identifying information, which may include first and 
last name, date of birth, the last four digits of his or her social 
security number, email address, and residential address. Enrollment 
representatives will be assigned a unique identifier, which shall be 
used for:
    (i) Accessing the National Lifeline Accountability Database;
    (ii) Accessing the National Verifier;
    (iii) Accessing any eligibility database; and
    (iv) Completing any Affordable Connectivity Program enrollment or 
verification forms.
    (2) Participating providers shall ensure that enrollment 
representatives shall not use another person's unique identifier to 
enroll Affordable Connectivity Program subscribers, recertify 
Affordable Connectivity Program subscribers, or access the National 
Lifeline Accountability Database or National Verifier.
    (3) Participating providers shall ensure that enrollment 
representatives shall regularly recertify their status with the 
Administrator to maintain their unique identifier and maintain access 
to the systems that rely on a valid unique identifier. Participating 
providers shall also ensure that enrollment representatives shall 
update their registration information within 30 days of any change in 
such information.
    (b) [Reserved]

[[Page 8380]]

Sec.  54.1808  Reimbursement for providing monthly affordable 
connectivity benefit.

    (a) Affordable Connectivity Program support for providing a 
qualifying broadband internet access service shall be provided directly 
to a participating provider based on the number of actual qualifying 
low-income households listed in the National Lifeline Accountability 
Database that the participating provider serves directly as of the 
first day of the calendar month.
    (b) For each eligible household receiving the affordable 
connectivity benefit on a broadband internet access service, the 
reimbursement amount shall equal the appropriate support amount as 
described in Sec.  54.1803. The participating provider's Affordable 
Connectivity Program reimbursement shall not exceed the actual amount 
charged by the participating provider.
    (c) A participating provider offering a service subject to the 
affordable connectivity benefit that does not require the participating 
provider to assess and collect a monthly fee from its subscribers shall 
not receive support for a subscriber to such service until the 
subscriber activates the service by whatever means specified by the 
provider; and
    (1) [Reserved]
    (2) [Reserved]
    (d) A participating provider that, in addition to providing the 
affordable connectivity benefit to an eligible household, provides such 
household with a connected device may be reimbursed in the amount and 
subject to the conditions specified in Sec. Sec.  54.1803(b) and 
54.1806(e).
    (e) In order to receive Affordable Connectivity Program 
reimbursement, an officer of the participating provider shall certify, 
under penalty of perjury, as part of each request for reimbursement, 
that:
    (1) The officer is authorized to submit the request on behalf of 
the participating provider;
    (2) The officer has read the instructions relating to 
reimbursements and the funds sought in the reimbursement request are 
for services and/or devices that were provided in accordance with the 
purposes and objectives set forth in the statute, rules, requirements, 
and orders governing the Affordable Connectivity Program;
    (3) The participating provider is in compliance with and satisfied 
all requirements in the statute, rules, and orders governing the 
Affordable Connectivity Program reimbursement, and the provider 
acknowledges that failure to be in compliance and remain in compliance 
with Affordable Connectivity Program statutes, rules, and orders may 
result in the denial of reimbursement, cancellation of funding 
commitments, and/or recoupment of past disbursements;
    (4) The participating provider has obtained valid certification and 
application forms as required by the rules in this subpart for each of 
the subscribers for whom it is seeking reimbursement;
    (5) The amount for which the participating provider is seeking 
reimbursement from the Affordable Connectivity Fund is not more than 
the amount charged to the eligible household and the discount has 
already been passed through to the household;
    (6) Each eligible household for which the participating provider is 
seeking reimbursement for providing an internet service offering 
discounted by the affordable connectivity benefit--
    (i) Has not been and will not be charged for the amount the 
provider is seeking for reimbursement;
    (ii) Will not be required to pay an early termination fee if such 
eligible household elects to enter into a contract to receive such 
internet service offering if such household later terminates such 
contract;
    (iii) Was not, after the date of the enactment of the Consolidated 
Appropriations Act, 2021, as amended by the Infrastructure Investment 
and Jobs Act, subject to a mandatory waiting period for such internet 
service offering based on having previously received broadband internet 
access service from such participating provider; and
    (iv) Will otherwise be subject to the participating provider's 
generally applicable terms and conditions as applied to other 
subscribers.
    (7) Each eligible household for which the participating provider is 
seeking reimbursement for supplying such household with a connected 
device was charged by the provider and has paid more than $10.00 but 
less than $50.00 for such connected device;
    (8) If offering a connected device, the connected device claimed 
meets the Commission's requirements, the representations regarding the 
devices made on the provider's website and promotional materials are 
true and accurate, that the reimbursement claim amount does not exceed 
the market value of the connected device less the amount charged to and 
paid by the eligible household, and that the connected device has been 
delivered to the household;
    (9) If the participating provider used an alternative verification 
process to verify that each household is eligible for the Affordable 
Connectivity Program, the verification process used was designed to 
avoid waste, fraud, and abuse;
    (10) If seeking reimbursement for a connected device, the provider 
has retained the relevant supporting documents that demonstrate the 
connected devices requested are eligible for reimbursement and 
submitted the required information;
    (11) No Federal subsidy made available through a program 
administered by the Commission that provides funds to be used for the 
capital expenditures necessary for the provision of advanced 
communications services has been or will be used to purchase, rent, 
lease, or otherwise obtain, any covered communications equipment or 
service, or maintain any covered communications equipment or service 
previously purchased, rented, leased, or otherwise obtained, as 
required by Sec.  54.10;
    (12) All documentation associated with the reimbursement form, 
including all records for services and/or connected devices provided, 
will be retained for a period of at least six years after the last date 
of delivery of the supported services and/or connected devices provided 
through the Affordable Connectivity Program, and are subject to audit, 
inspection, or investigation and will be made available at the request 
of any representative (including any auditor) appointed by the 
Commission and its Office of Inspector General, or any local, State, or 
Federal agency with jurisdiction over the provider;
    (13) The provider has not offered, promised, received, or paid 
kickbacks, as defined by 41 U.S.C. 8701, in connection with the 
Affordable Connectivity Program;
    (14) The information contained in this form is true, complete, and 
accurate to the best of the officer's knowledge, information, and 
belief, and is based on information known to the officer or provided to 
the officer by employees responsible for the information being 
submitted;
    (15) The officer is aware that any false, fictitious, or fraudulent 
information, or the omission of any material fact on this request for 
reimbursement or any other document submitted by the provider, may 
subject the provider and the officer to punishment by fine or 
forfeiture under the Communications Act (47 U.S.C. 502, 503(b), 1606), 
or fine or imprisonment under Title 18 of the United States Code (18 
U.S.C. 1001, 286-87, 1343), or can lead to liability under the False 
Claims Act (31 U.S.C. 3729-3733, 3801-3812);
    (16) No service costs or devices sought for reimbursement have been 
waived, paid, or promised to be paid by

[[Page 8381]]

another entity, including any other Federal or State program;
    (17) All enrollments and transfers completed by the provider were 
bona fide, requested and consented by the subscriber household after 
receiving the disclosures required under Sec.  54.1810(a) and (b), and 
made pursuant to program rules; and
    (18) The provider used the National Lifeline Accountability 
Database as a tool for enrollment, reimbursement calculations, and 
duplicate checks in all States, territories, and the District of 
Columbia, and checked their records in accordance with Sec.  
54.1806(a)(4).
    (f) In order to receive Affordable Connectivity Program 
reimbursement, a participating provider shall keep accurate records of 
the revenues it forgoes in providing Affordable Connectivity Program-
supported services. Such records shall be kept in the form directed by 
the Administrator and provided to the Administrator at intervals as 
directed by the Administrator or as provided in this subpart.
    (g) In order to receive reimbursement, participating providers 
shall submit certified reimbursement claims through the Lifeline Claims 
System within six months of the snapshot date in paragraph (a) of this 
section, or the following business day in the event the 1st is a 
holiday or falls on a weekend. If the participating provider fails to 
submit a certified reimbursement claim by the six-month deadline, the 
reimbursement claim will not be processed.


Sec.  54.1809  De-enrollment from the Affordable Connectivity Program.

    (a) De-enrollment generally. If a participating provider has a 
reasonable basis to believe that an Affordable Connectivity Program 
subscriber does not meet or no longer meets the criteria to be 
considered an eligible household under Sec.  54.1805, the participating 
provider shall notify the subscriber of impending termination of his or 
her affordable connectivity benefit. Notification of impending 
termination shall be sent in writing separate from the subscriber's 
monthly bill, if one is provided, and shall be written in clear, easily 
understood language. The participating provider shall allow a 
subscriber 30 days following the date of the impending termination 
letter to demonstrate continued eligibility. A subscriber making such a 
demonstration shall present proof of continued eligibility to the 
National Verifier or the participating provider consistent with the 
participating provider's approved alternative verification process. A 
participating provider shall de-enroll any subscriber who fails to 
demonstrate eligibility within five business days after the expiration 
of the subscriber's deadline to respond.
    (b) De-enrollment for duplicative support. Notwithstanding 
paragraph (a) of this section, upon notification by the Administrator 
to any participating provider that a subscriber is receiving the 
affordable connectivity benefit from another participating provider, or 
that more than one member of a subscriber's household is receiving the 
affordable connectivity benefit and that the subscriber should be de-
enrolled from participation in that provider's Affordable Connectivity 
Program, the participating provider shall de-enroll the subscriber from 
participation in that provider's Affordable Connectivity Program within 
five business days. A participating provider shall not claim any de-
enrolled subscriber for Affordable Connectivity Program reimbursement 
following the date of that subscriber's de-enrollment.
    (c) [Reserved]
    (d) De-enrollment for failure to re-certify. Notwithstanding 
paragraph (a) of this section, a participating provider shall de-enroll 
an Affordable Connectivity Program subscriber who does not respond to 
the provider's attempts to obtain re-certification of the subscriber's 
continued eligibility as required by Sec.  54.1806(f); or who fails to 
provide the annual one-per-household re-certification as required by 
Sec.  54.1806(f)(6). Prior to de-enrolling a subscriber under this 
paragraph, the provider shall notify the subscriber in writing separate 
from the subscriber's monthly bill, if one is provided, using clear, 
easily understood language, that failure to respond to the re-
certification request will trigger de-enrollment. A subscriber shall be 
given 60 days to respond to recertification efforts. If a subscriber 
does not respond to the provider's notice of impending de-enrollment, 
the provider shall de-enroll the subscriber from the Affordable 
Connectivity Program within five business days after the expiration of 
the subscriber's time to respond to the re-certification efforts.
    (e) De-enrollment requested by subscriber. If a participating 
provider receives a request from a subscriber to de-enroll from the 
Affordable Connectivity Program, it shall de-enroll the subscriber 
within two business days after the request.


Sec.  54.1810  Consumer protection requirements.

    (a)-(b) [Reserved]
    (c) Credit checks. (1) A participating provider shall not:
    (i) Consider the results of a credit check as a condition of 
enrollment in the Affordable Connectivity Program.
    (ii) Consider the results of a credit check to determine to which 
Affordable Connectivity Program-supported internet service plan a 
household may apply the affordable connectivity benefit.
    (iii) Use the results of a credit check to decline to transfer a 
household's Affordable Connectivity Program benefit.
    (d) Non-payment. (1) Bill payment due date means the due date for 
payment specified on a bill for service charges.
    (2) A participating provider shall not terminate an eligible 
household's service subject to the affordable connectivity benefit on 
the grounds that the household has failed to pay the charges set forth 
on a bill for such service unless 90 consecutive days have passed since 
the bill payment due date.
    (e) Upselling and downselling--(1) Prohibition of inappropriate 
upselling and downselling. A participating provider and its agents 
shall not exert pressure on an eligible household to induce the 
purchase of a broadband internet access service or bundled plan that is 
more costly, less costly, affords different features, provides higher 
or lower speed or bandwidth, is subject to higher or lower data caps, 
or is bundled with additional services, equipment, or features, or 
fewer services, equipment, or features, than the service or plan that 
the household is already purchasing or has inquired about purchasing 
through the Affordable Connectivity Program.
    (2) Specific prohibited activities. Prohibited activities include, 
but are not limited to:
    (i) Requiring, as a condition of enrolling the household or 
applying the affordable connectivity benefit, that the household select 
a service, bundled plan, or equipment, other than the service or 
bundled plan that the eligible household subscriber is already 
purchasing or using or has inquired about.
    (ii) Pressuring an eligible household to purchase a service or 
bundled plan to benefit the provider but not the household.
    (3) Permitted activities. Provided that they do not exert pressure 
on existing or prospective eligible household subscribers, 
participating providers--
    (i) May communicate information regarding tiers of service that 
afford higher or lower speeds or bandwidth, are available at higher or 
lower prices, or have features that differ from a

[[Page 8382]]

service or plan that an eligible household is already purchasing or has 
inquired about for the Affordable Connectivity Program; and
    (ii) May create or promote service plans that are specially priced 
or designed to meet the needs of eligible households.
    (f) Extended service contracts and early termination fees--(1) 
Definitions. (i) An extended service contract is typically an offer of 
service at a discount price in exchange for a commitment from the 
subscriber to remain on that service plan for a set period of time, 
usually at least a year.
    (ii) Early termination fees are fees that a subscriber is obligated 
to pay if it purchases a service plan subject to an extended service 
contract but terminates service before the end of the specified term of 
the contract.
    (2) Extended service contracts. An eligible household may elect to 
purchase and apply the affordable connectivity benefit to a 
participating provider's service plan subject to an extended service 
contract.
    (3) Early termination fees. Notwithstanding the provisions that 
apply to subscribers to extended service contracts who are not eligible 
households, an eligible household shall not be liable for early 
termination fees if it purchases and applies its affordable 
connectivity benefit to a service plan subject to an extended service 
contract but terminates service before the end of the specified term of 
the contract.
    (g) Restrictions on switching service offerings. A participating 
provider shall not impose any restrictions on a household's ability to 
switch internet service offerings, unless, once the consumer enters a 
delinquent status after the bill due date, the provider limits 
available service plans to offerings that are covered by the full 
benefit amount, and the household consents to switch service plans.
    (h) Restrictions on switching providers. (1) A participating 
provider shall not engage in any practice that is reasonably likely to 
cause a household to believe it is prohibited or restricted from 
transferring its benefit to a different participating provider.
    (2) A participating provider shall not:
    (i) Misrepresent or fail to accurately disclose to a household the 
rules and requirements pertaining to transfers to another participating 
provider in the Affordable Connectivity Program;
    (ii) Charge a household a fee to transfer their benefit to another 
participating provider; or
    (iii) Suggest or imply that the provider may change the household's 
service plan if it transfers the benefit to another participating 
provider.
    (i) Unjust and unreasonable acts or practices. (1) Providers are 
prohibited from engaging in unjust and unreasonable acts or practices 
that would undermine the purpose, intent, or integrity of the 
Affordable Connectivity Program.
    (2) Such unjust and unreasonable acts or practices include, but are 
not limited to:
    (i) Advertising or holding itself out as a participating provider 
if it is not authorized to participate in the Affordable Connectivity 
Program;
    (ii) Engaging in false or misleading advertising of the Affordable 
Connectivity Program;
    (iii) Failing to timely provide service, equipment, or devices that 
are advertised, promoted, or marketed as part of the Affordable 
Connectivity Program;
    (iv) Failing to enroll an eligible household as soon as practicable 
once the provider receives the household's affirmative consent to 
enroll with that provider;
    (v) Failing to apply the affordable connectivity benefit to such 
household on or before the start of the household's next billing cycle;
    (vi) Failing to deliver a supported connected device within 30 days 
of obtaining the household's affirmative consent to receive such 
device; and
    (vii) Violating any Program rule.


Sec.  54.1811  Recordkeeping requirements.

    Participating providers shall maintain records to document 
compliance with all Commission requirements governing the Affordable 
Connectivity Program for the six full preceding calendar years and 
provide that documentation to the Commission or Administrator, or their 
designee, upon request. Participating providers shall maintain the 
documentation related to the eligibility determination and 
reimbursement claims for an Affordable Connectivity Program subscriber 
for as long as the subscriber receives the Affordable Connectivity 
Program discount from that participating provider, but for no less than 
the six full preceding calendar years.


Sec.  54.1812  Validity of electronic signatures.

    (a) For the purposes of this subpart, an electronic signature, 
defined by the Electronic Signatures in Global and National Commerce 
Act, as an electronic sound, symbol, or process, attached to or 
logically associated with a contract or other record and executed or 
adopted by a person with the intent to sign the record, has the same 
legal effect as a written signature.
    (b) For the purposes of this subpart, an electronic record, defined 
by the Electronic Signatures in Global and National Commerce Act as a 
contract or other record created, generated, sent, communicated, 
received, or stored by electronic means, constitutes a record.

0
3. Effective April 15, 2022, amend Sec.  54.1802 by adding paragraph 
(b) to read as follows:


Sec.  54.1802  Affordable connectivity benefit.

* * * * *
    (b) A participating provider may allow an eligible household to 
apply the affordable connectivity benefit to any residential service 
plan selected by the eligible household that includes broadband 
internet access service or a bundle of broadband internet access 
service along with fixed or mobile voice telephony service, text 
messaging service, or both.

0
4. Effective April 15, 2022, add Sec.  54.1804 to read as follows:


Sec.  54.1804  Participating provider obligation to offer the 
Affordable Connectivity Program.

    All participating providers in the Affordable Connectivity Program 
shall:
    (a) Make available the affordable connectivity benefit to eligible 
households.
    (b) Publicize the availability of the Affordable Connectivity 
Program in a manner reasonably designed to reach those likely to 
qualify for the service and in a manner that is accessible to 
individuals with disabilities.
    (c) Notify all consumers who either subscribe to or renew a 
subscription to an internet service offering about the Affordable 
Connectivity Program and how to enroll.
    (1) Providers shall deliver a notice in writing or orally, in a 
manner that is accessible to persons with disabilities:
    (i) During enrollment for new subscribers;
    (ii) At least 30 days before the date of renewal for subscribers 
not enrolled in the Affordable Connectivity Program who have fixed-term 
plans longer than one month; and
    (iii) Annually for subscribers not already enrolled in the 
Affordable Connectivity Program who have month-to-month or similar non-
fixed term plans.
    (2) The notice shall, at a minimum, indicate;
    (i) The eligibility requirements for consumer participation;
    (ii) That the Affordable Connectivity Program is non-transferable 
and limited to one monthly internet discount and a one-time connected 
device discount per household;

[[Page 8383]]

    (iii) How to enroll, such as a customer service phone number or 
relevant website information; and
    (iv) That the Affordable Connectivity Program is a Federal 
Government benefit program operated by the Federal Communications 
Commission and, if the Program ends, or when a household is no longer 
eligible, subscribers will be subject to the provider's regular rates, 
terms, and conditions.
    (d) Frequently carry out public awareness campaigns in their 
Affordable Connectivity Program areas of service that highlight the 
value and benefits of broadband internet access service and the 
existence of the Affordable Connectivity Program in collaboration with 
State agencies, public interest groups, and non-profit organizations 
and retain documentation sufficient to demonstrate their compliance 
with the public awareness obligations.

0
5. Effective April 15, 2022, amend Sec.  54.1807 by adding paragraph 
(b) to read as follows:


Sec.  54.1807  Enrollment representative registration and compensation.

* * * * *
    (b) Prohibition of commissions for enrollment representatives. A 
participating provider shall not offer or provide to enrollment 
representatives, their direct supervisors, or entities that operate on 
behalf of the participating provider, any form of compensation that 
is--
    (1) Based on the number of consumers or households that apply for 
or are enrolled in the Affordable Connectivity Program with the 
participating provider;
    (2) Based on revenues that the participating provider has received 
or expects to receive in connection with the Affordable Connectivity 
Program, including payments for connected devices;
    (3) Based on the participating provider permitting the retention of 
cash payments received from the subscriber as part of the required 
contribution for a connected device;
    (4) Shifted, characterized or otherwise classified as compensation 
paid in connection with other services, business operations, or 
unrelated to Affordable Connectivity Program activities that is based 
on Affordable Connectivity Program applications, enrollments, or 
revenues.
* * * * *

0
6. Effective April 15, 2022, amend Sec.  54.1808 by adding paragraphs 
(c)(1) and (2) to read as follows:


Sec.  54.1808  Reimbursement for providing monthly affordable 
connectivity benefit.

* * * * *
    (c) * * *
    (1) After service activation, shall only continue to receive 
reimbursement for the affordable connectivity benefit on such service 
provided to subscribers who have used the service within the last 30 
days, or who have cured their non-usage as provided for in Sec.  
54.1809(c); and
    (2) Shall certify that every subscriber claimed has used their 
service subject to the affordable connectivity benefit, as ``usage'' is 
defined by Sec.  54.407(c)(2), at least once in the last 30 consecutive 
days or has cured their non-usage as provided in Sec.  54.1809(c), in 
order to claim that subscriber for reimbursement for a given service 
month.
* * * * *

0
7. Effective April 15, 2022, amend Sec.  54.1809 by adding paragraph 
(c) to read as follows:


Sec.  54.1809  De-enrollment from the Affordable Connectivity Program.

* * * * *
    (c) De-enrollment for non-usage. Notwithstanding paragraph (a) of 
this section, if an Affordable Connectivity Program subscriber fails to 
use, as ``usage'' is defined in Sec.  54.407(c)(2), for 30 consecutive 
days an Affordable Connectivity Program service that does not require 
the participating provider to assess and collect a monthly fee from its 
subscribers, the participating provider shall provide the subscriber 15 
days' notice, using clear, easily understood language, that the 
subscriber's failure to use the Affordable Connectivity Program service 
within the 15-day notice period will result in service termination for 
non-usage under this paragraph (c).
* * * * *

0
8. Effective April 15, 2022, amend Sec.  54.1810 by adding paragraphs 
(a) and (b) to read as follows:


Sec.  54.1810  Consumer protection requirements.

    (a) Disclosures and consents for enrollment. Prior to enrolling a 
consumer in the Affordable Connectivity Program, participating 
providers shall obtain affirmative consumer consent either orally or in 
writing that acknowledges that after having reviewed the required 
disclosures about the Affordable Connectivity Program, the household 
consents to enroll with the provider.
    (1) The disclosures that shall be presented to the consumer shall 
convey in clear, easily understood terms that:
    (i) The Affordable Connectivity Program is a government program 
that reduces the customer's broadband internet access service bill;
    (ii) The household may obtain Affordable Connectivity Program-
supported broadband service from any participating provider of its 
choosing;
    (iii) The household may apply the affordable connectivity benefit 
to any broadband service offering of the participating provider at the 
same terms available to households that are not eligible for Affordable 
Connectivity Program-supported service;
    (iv) The provider may disconnect the household's Affordable 
Connectivity Program-supported service after 90 consecutive days of 
non-payment;
    (v) The household will be subject to the provider's undiscounted 
rates and general terms and conditions if the Affordable Connectivity 
Program ends, if the consumer transfers their benefit to another 
provider but continues to receive service from the current provider, or 
upon de-enrollment from the Affordable Connectivity Program; and
    (vi) The household may file a complaint against its provider via 
the Commission's Consumer Complaint Center.
    (2) If standard disclosure and consent language has been provided 
by the Commission, providers shall present that language to consumers 
prior to enrollment.
    (3) A participating provider shall not link enrollment in the 
Affordable Connectivity Program to some other action or information 
supplied to the provider for purposes other than the Affordable 
Connectivity Program, including but not limited to:
    (i) Not clearly distinguishing the process of signing up for ACP-
supported services and devices from the process of signing up for, 
renewing, upgrading, or modifying other services, including Lifeline-
supported services;
    (ii) Suggesting or implying that signing up for ACP-supported 
services and devices is required for obtaining or continuing other 
services, including Lifeline-supported services; and
    (iii) Tying the submission of customer information provided for 
another purpose (e.g., address verification or equipment upgrade or 
replacement) to enrollment in the Affordable Connectivity Program.
    (b) Transfers in the Affordable Connectivity Program. Participating 
providers shall comply with the following requirements for transferring 
an eligible household's affordable connectivity program benefit between 
providers.

[[Page 8384]]

    (1) Disclosures and subscriber consent. (i) Prior to transferring 
an eligible household's affordable connectivity program benefit, the 
provider transferring in the household shall obtain the household's 
affirmative consent either orally or in writing that acknowledges that 
after having reviewed the required disclosures, the household consents 
to transfer its benefit to the transfer-in provider.
    (ii) The oral or written disclosures shall be provided in clear, 
easily understood language and convey the following information:
    (A) That the subscriber will be transferring its affordable 
connectivity program benefit to the transfer-in provider;
    (B) That the effect of the transfer is that the subscriber's 
affordable connectivity program benefit will be applied to the 
transfer-in provider's service and will no longer be applied to service 
retained from the transfer-out provider;
    (C) That the subscriber may be subject to the transfer-out 
provider's undiscounted rates as a result of the transfer if the 
subscriber elects to maintain service from the transfer-out provider; 
and
    (D) That the subscriber is limited to one affordable connectivity 
program benefit transfer transaction per service month, with limited 
exceptions for situations where the subscriber seeks to reverse an 
unwanted transfer or is unable to receive service from a specific 
provider.
    (iii) The household's oral or written consent shall:
    (A) Clearly identify the subscriber name;
    (B) Acknowledge the subscriber was provided the disclosure language 
required under paragraph (b)(1)(ii) of this section;
    (C) Indicate that having received the required disclosures, the 
subscriber gave its informed consent to transfer its benefit to the 
transfer-in provider; and
    (D) Indicate the date of the subscriber's consent.
    (iv) Participating providers shall use any standard consent and 
disclosure language provided by the Commission.
    (v) Participating providers shall satisfy the disclosure and 
consent requirements for each transfer transaction.
    (2) Notification to subscribers. Within five business days of 
completing a subscriber transfer in the National Lifeline 
Accountability Database, the transfer-in provider shall provide written 
notice to the transferred subscriber that indicates the following:
    (i) The name of the transfer-in provider to which the subscriber's 
affordable connectivity program benefit was transferred;
    (ii) The date the transfer was initiated; and
    (iii) An explanation of the dispute process if the subscriber 
believes the transfer was improper.
    (3) Limitation on transfers per month. Participating subscribers 
can only transfer their affordable connectivity benefit between 
providers once in a given service month, with the following limited 
exceptions:
    (i) The subscriber's benefit was improperly transferred;
    (ii) The subscriber's service provider ceases operations or fails 
to provide service;
    (iii) The subscriber's current service provider is found to be in 
violation of affordable connectivity program rules, and the violation 
impacts the subscriber for which the exception is sought;
    (iv) The subscriber changes its location to a residential address 
outside of the provider's service area for the Affordable Connectivity 
Program.
* * * * *
[FR Doc. 2022-02887 Filed 2-11-22; 8:45 am]
BILLING CODE 6712-01-P