The FCC “overstepped its authority” and “implemented...
The FCC “overstepped its authority” and “implemented a rule inconsistent with existing law” when it doubled the record-retention requirement in a July E-rate order (WID July 14 p3), USTelecom said in a petition for reconsideration filed Thursday and made available…
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to us. The rule will “adversely” affect the program, the filing said. The agency had no comment. Despite an agency assertion otherwise, the rule is not necessary to comply with the False Claims Act, USTelecom said. That law “is designed to ferret out fraudulent claims by government contractors, not to increase the recordkeeping expense of government contractors,” said USTelecom. The act has a 10-year statute of limitations, the association said, but “a statute of limitations period by which a claim must be brought and a recordkeeping period during which records must be maintained serve fundamentally different purposes -- purposes that the Order conflates.” The 10-year requirement exceeds the requirement in other federal programs, many of which require record retention of five years or less, USTelecom said. The costs of maintaining and storing records for 10 years “is significant and would “greatly outweigh any purported benefit from having available records during the entire time that a person could theoretically assert a False Claims Act claim,” said the association.