Federal Communications Commission fcc 13-100 Before the Federal Communications Commission



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342.ordering clauses


343.Accordingly, IT IS ORDERED that, pursuant to the authority contained in sections 1 through 4, 201-205, 254, 303(r), and 403 of the Communications Act of 1934, as amended by the Telecommunications Act of 1996, 47 U.S.C. §§ 151 through 154, 201 through 205, 254, 303(r), and 403, this Notice of Proposed Rulemaking IS ADOPTED.

344.IT IS FURTHER ORDERED that the Commission’s Consumer and Governmental Affairs Bureau, Reference Information Center, SHALL SEND a copy of this Notice of Proposed Rulemaking, including the Initial Regulatory Flexibility Analysis, to the Chief Counsel for Advocacy of the Small Business Administration.


FEDERAL COMMUNICATIONS COMMISSION

Marlene H. Dortch

Secretary


APPENDIX A
Proposed Rules

For the reasons discussed in the preamble, the Federal Communications Commission proposes to amend 47 C.F.R. Part 54, Subpart F, as follows:



PART 54—UNIVERSAL SERVICE

Subpart F—Universal Service Support for Schools and Libraries

1. The authority citation for Part 54 continues to read as follows:

47 U.S.C. 151, 154(i), 201, 205, 214, 219, 220, 254, 303(r), 403, and 1302 unless otherwise noted.



2. Amend § 54.503 by adding paragraphs (b)(1) and (b)(2) and by revising paragraph (c)(2) to read as follows:

§ 54.503 Competitive bidding requirements.

* * * * *

(b) Competitive bid requirements.

(1) Except as provided in § 54.511(c), an eligible school, school districts, library, or consortium that includes an eligible school or library shall seek competitive bids, pursuant to the requirements established in this subpart, for all services eligible for support under § 54.502. These competitive bid requirements apply in addition to state and local competitive bid requirements and are not intended to preempt such state or local requirements.

(2) Service providers must certify that they are in compliance with state and local procurement laws.

(c) * * *

(1) * * *

(2) The FCC Form 470 shall be signed by the person authorized to order eligible services for the eligible school, library, or consortium including such entities, and with authority equivalent to that of a corporate officer, and shall include that person’s certification under oath that:

* * * * *

3. Amend § 54.504 by revising paragraph (a), adding new paragraphs (f) and (h), and redesignating current paragraph (f) as new paragraph (g) and revising that paragraph to read as follows:

§ 54.504 Requests for services.

(a) * * *

(1) The FCC Form 471 shall be signed by the person authorized to order eligible services for the eligible school, library, or consortium, and with authority equivalent to that of a corporate officer, and shall include that person’s certifications under oath that:

(b) * * *

(c) * * *

(d) * * *

(e) * * *

(f) Filing of FCC Form 472. All service providers must submit a Service Provider Acknowledgement as part of the Applicant’s FCC Form 472 seeking reimbursement from the Administrator for eligible services. The FCC Form 472 shall be signed by an officer of the service provider and shall include the officer’s certifications under oath that:

(1) This service provider will remit the discount amount authorized by the fund administrator to the Billed Entity Applicant who prepared and submitted the Billed Entity Applicant Reimbursement Form as soon as possible after the fund administrator’s notification to the service provider of the amount of the approved discounts on this Billed Entity Applicant Reimbursement Form, but in no event later than 20 business days after receipt of the reimbursement payment from the fund administrator, subject to the restriction set forth in subsection (2) below.

(2) This service provide will remit payment of the approved discount amount to the Billed Entity Applicant prior to tendering or making use of the payment issued by the Universal Service Administrative Company to the service provider of the approved discounts for the Billed Entity Applicant Reimbursement Form.

(3) This service provider is in compliance with the rules and orders governing the schools and libraries universal service support program and that failure to be in compliance and remain in compliance with those rules and orders may result in the denial of discount funding and/or cancellation of funding commitment.

(4) Failure to comply with the rules and orders governing the schools and libraries universal service support program could result in civil or criminal prosecution by law enforcement authorities.

(g) Filing of Form 473. All service providers eligible to provide telecommunications services and other supported services under this subpart shall submit annually a completed FCC Form 473 to the Administrator. The FCC Form 473 shall be signed by an officer of the service provider and shall include that officer’s certification under oath that:

(1) * * *

(2) * * *

(3) * * *

(h) Filing of FCC Form 474. All service providers seeking reimbursement from the Administrator for eligible services shall submit a completed FCC Form 474 to the Administrator. The FCC Form 474 shall be signed by an officer of the service provider and shall include the officer’s certifications under oath that:

(1) This service provider is in compliance with the rules and orders governing the schools and libraries universal service support program and that failure to be in compliance and remain in compliance with those rules and orders may result in the denial of discount funding and/or cancellation of funding commitment.

(2) Failure to comply with the rules and orders governing the schools and libraries universal service support program could result in civil or criminal prosecution by law enforcement authorities.

(3) The service provider is in compliance with state and local procurement laws.



4. Amend § 54.505 by revising paragraphs (b)(1), (b)(3)(i), and (b)(3)(ii) to read as follows:

§ 54.505 Discounts.

* * * * *

(b)  * * *

(1) School districts shall calculate discounts on supported services described in § 54.502(b) by calculating a single discount percentage rate for the entire school district by dividing the total number of students eligible for the National School Lunch Program within the school district by the total number of students within the school district. This single discount percentage rate shall then be applied to the discount matrix to set a discount rate for the supported services purchased by all schools within the school district.

(2)  * * *

(3) The Administrator shall classify schools and libraries as “urban” or “rural” based on location in an urban or rural area, according to the following designations.

(i) Schools and libraries whose local code is city, suburb, town-fringe, or rural-fringe, as measured by the U.S. Department of Education’s National Center for Education Statistics, shall be designated as urban.

(ii) Schools and libraries whose local code is town-distant, town-remote, rural-distant, or rural-remote, as measured by the U.S. Department of Education’s National Center for Education Statistics, shall be designated as rural.

* * * * *

5. Amend § 54.507 by adding new paragraph (e), revising paragraph (g), and redesignating current paragraphs (e) and (f) and revised paragrah (g) as paragraphs (f), (g), and (h), respectively, to read as follows:

§ 54.507 Cap.

* * * * *



(e) Multi-year contracts. An eligible school, library or consortium that includes an eligible school or library seeking to receive discounts under this subpart may submit to USAC a single FCC Form 471 covering all the years of a multi-year contract, provided that the term of the contract including extensions, does not exceed three years. An FCC Form 471 covering a multi-year contract must be submitted to USAC before the start of the first funding year covered by the multi-year contract.

* * * * *



6. Amend § 54.511 by adding new paragraph (c) and redesignating current paragraphs (c) and (d) as paragraphs (d) and (e) to read as follows:

§ 54.511 Ordering services.

* * * * *

(c) The service provider must certify on FCC Form 473 and FCC Form 474 that it is charging schools, school districts, libraries, library consortia or consortia including any of these entities, the lowest corresponding price for supported services, unless the Commission, with respect to intrastate prices, had found that the lowest corresponding price is not compensatory.

* * * * *

7. Amend § 54.516 by revising paragraphs (a)(1) and (a)(2) to read as follows:

§ 54.516 Auditing.

(a) Record keeping requirements – (1) Schools, libraries and consortia. Schools, libraries, and any consortium that includes schools and libraries shall retain all documents related to the application for, receipt, and delivery of discounted telecommunications and other supported services for at least 10 years after the last day of the delivery of services or from the end of the applicable funding year, whichever is later. Schools, libraries, and any consortium that include schools or libraries shall also retain any other document necessary to demonstrate compliance with the statutory or regulatory requirements for the schools and libraries mechanism. Schools and libraries shall maintain asset and inventory records of equipment purchased as components of supported internal connections services sufficient to verify the actual location of such equipment for a period of five years after purchase.

(2) Service providers. Service providers shall retain documents related to the delivery of discounted telecommunications and other supported services for at least 10 years after the last day of the delivery of services or from the end of the applicable funding year, whichever is later. Service providers shall also retain any other document that demonstrates compliance with the statutory or regulatory requirements for the schools and libraries universal service support mechanism.

* * * * *





APPENDIX B
2013 Eligible Services List



The Federal Communications Commission’s rules provide that all services that are eligible for to receive discounts under the Schools and Libraries Universal Service Support Mechanism (otherwise known as the E-rate program or “E-rate”) are listed in this Eligible Services List (ESL). The E-rate program is administered by the Universal Service Administrative Company (USAC).







Schools and Libraries Universal Service Support Mechanism

Eligible Services List




CC Docket No. 02-6; GN Docket No. 09-51

Released: September 27, 2012


Background:

The E-rate program provides eligible schools and libraries discounts for eligible services and products. Consistent with prior years, in each category the ESL first lists the services and products that are eligible for funding, and then lists the services and products that are not eligible for funding. Under the E-rate program, E-rate funds are allocated according to rules of priority, with first priority given to requests for telecommunications services, telecommunications, and Internet access services; these services are listed in the “Priority One” section of the ESL. The remaining available funds are allocated to requests for support for internal connections and basic maintenance of internal connections; these services are listed in the “Priority Two” section of this ESL. There is also a Miscellaneous section, and at the end of this ESL, a Special Eligibility Conditions section and a Glossary, providing additional information and definitions for many of the terms used herein.


Note on FCC Form 471. For Block 5 of the FCC Form 471, for Priority One services, applicants must indicate the services they select as a Priority One Telecommunications Service or Priority One Internet Access. The applicant may select one or the other category depending on the provider of the service (i.e., if the service is one that could be requested as a telecommunications service or Internet access, but the applicant checks “Telecommunications Services” on Block 5, the service needs to be provided by a “telecommunications carrier” (see “Special Regulatory Requirements” in the Special Eligibility Conditions section below)). After an applicant has complied with E-rate competitive bidding requirements and selected its vendors, it may consult with each vendor about which service category in Block 5 of the FCC Form 471 the applicant should use in describing the service the vendor will be providing. See also “Administrative Convenience” below for additional information regarding combined service offerings.
Administrative Convenience. Some service offerings provide a combination of both Internet access and telecommunications services, which are both Priority One services. For example, a service provider may offer local phone service, long distance service, and Internet access for one price. For administrative convenience, such a combined offering, if provided by a telecommunications carrier, may be requested in the telecommunications services category of service on the FCC Form 471. Alternatively, funding may be requested as two separate requests, with the price of the offering appropriately allocated between the telecommunications services and Internet access categories.
CIPA Reminder. The funding of Internet access in the telecommunications services category does not relieve applicants of complying with the requirements of the Children’s Internet Protection Act (CIPA) if the service request includes Internet access.
Additional information about eligibility requirements is available at USAC’s website at http://www.usac.org/sl/, the reference area of the USAC website at http://www.usac.org/sl/tools/reference-area.aspx, and in Schools and Libraries News-briefs available at http://www.usac.org/sl/tools/news-briefs/Default.aspx. These documents are not incorporated by reference into the Eligible Services List.
This List, dated September 27, 2012 may represent a change from prior funding years and applies to funding requests for Funding Year 2013.


Priority One

This section lists the Priority One telecommunications services, telecommunications, and Internet access services for which E-rate applicants may seek discounts.
Support is also available for maintenance and technical support appropriate to maintain reliable operation when provided as a component of these services. Please see the Miscellaneous section of this document for additional entries applicable to these services, such as charges for installation and configuration.




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