- DOCKET FILE COPY ORIGINA,
Federal CommunicationsCom~.~ssiof,'- \L. (',00 11 . FCC 01-586
Before the
Federal Communications Commission
Washington, D.C.205~0lNAR I5 A II: 5q
In the Matter of
Request for Review ofthe
Decision ofthe
Universal Service Administrator by
Rockwood School District R 6
Eureka, Missouri
Federal-State Joint Board on
Universal Service
Changes to the Board ofDirectors ofthe
National Exchange Carrier Association, Inc.
Adopted: March 5, 2001
By the Common Carrier Bureau:
)
)
)
)
)
)
)
)
)
)
)
)
)
)
)
ORDER
-f 0
File No. SLD-136284
CC Docket No. 96-45'/
CC Docket No. 97-21
Released: March 6,2001
1-
1. The Common Carrier Bureau has under consideration a Request for Review filed
by Rockwood School District R 6 (Rockwood), Eureka, Missouri.
l
Rockwood seeks review ofa
funding commitment decision issued by the Schools and Libraries Division (SLD) ofthe
Universal Service Company (Administrator) pursuant to a funding request for discounts under
the schools and libraries universal service support mechanism.
2
For the reasons set forth below,
we deny Rockwood's appeal.
2. Under the schools and libraries universal service support mechanism, eligible
schools, libraries, and consortia that include eligible schools and libraries, may apply for
discounts for eligible telecommunications services, Internet access, and internal connections.
3
In
I Letter from Steve Wester, Rockwood School District R 6, to Federal Communications Commission, filed April
12,2000 (Request for Review).
2 See Letter from Schools and Libraries Division, Universal Service Administrative Company to Steven Wester,
Rockwood School District R 6, issued August 10, 1999 (Funding Commitment Decision Letter); Letter from
Schools and Libraries Division, Universal Service Administrative Company, to Steven Wester, Rockwood School
District R 6, issued March 22, 2000 (Administrator's Decision on Appeal).
] 47 CF.R. §§ 54.502, 54.503.
Federal Communications Commission DA 01-586
-
order to receive discounts on eligible services, the Commission's rules require that the applicant
submit to the Administrator a completed FCC Form 470, in which the applicant sets forth its
technological needs and the services for which it seeks discounts.
4
Once the applicant has
complied with the Commission's competitive bidding requirements and entered into an
agreement for eligible services, it must file an FCC Form 471 application to notify the
Administrator ofthe services that have been ordered, the carriers with whom the applicant has
entered into an agreement, and an estimate of funds needed to cover the discounts to be given for
eligibIe services. S Approval of an application is contingent upon the filing ofFCC Form 471,
and funding commitment decisions are based on infonnation provided by the school or library in
this form.
3. The instant appeal arises from SLD's denial of Rockwood's Funding Request
Number (FRN) 136284, on the grounds that more than 30 percent ofthe funding request is for
products ineligible for discounts.
6
SLD denied Rockwood's subsequent appeal of its funding
decision on grounds that more than 30 percent ofthe request is for cellular services to be used by
grounds maintenance workers, resources officers, computer center staff, and food service
workers, which are ineligible uses ofcellular service.
7
4. Cellular telephone service is a service conditionally eligible for discount funding
under program rules if I) provided for use at a place ofinstruction, and 2) used for an educational
purpose.
s
Rockwood sought funding for monthly cellular telephone services on various school
4 47 C.F.R. § 54.504 (b)(l), (b)(3).
5 47 C.F.R. § 54.504(c).
6 See Funding Commitment Decision Letter at 4. The "30 percent policy" is not a Commission rule, but rather is an
SLD operating procedure established pursuant to FCC policy. See Changes to the Board ofDirectors ofthe
National Exchange Carrier Association, Inc.. Federal-State Joint Board on Universal Service, CC Docket Nos. 97
21 and 96-45, Third Report and Order in CC Docket No. 97-21 and Fourth Order on Reconsideration in CC Docket
No. 97-21 and Eighth Order on Reconsideration in CC Docket No. 96-45, 13 FCC Rcd 25058 (1998). This
operating procedure, used during SLD's application review process, enables SLD to efficiently process requests for
funding for services that are eligible for discounts but that also include some ineligible components. If30 percent or
less ofthe request is for funding of ineligible services, SLD normally will consider the application and issue a
funding commitment for the eligible services. If more than 30 percent ofthe request is for funding of ineligible
services, SLD will deny the funding request in its entirety. The 30 percent policy allows SLD to efficiently process
requests for funding that contain only a small amount ofineligible services without expending significant fund
resources working with applicants that are requesting funding ofineligible services.
7 See Administrator's Decision on Appeal at 3.
R See 47 U.s.c. § 254(h)( I )(B) (requiring that services provided to eligible schools and libraries be used for
educational purposes); see also SLD web site, Eligible Services List (January 30. 200 I)
<http;/iw\V:::\~lE.!!.~versalservice.org/reference/eligible,asp>
2
Federal Communications Commission DA 01-586
1-
and technology resource center premises within the school district.
9
Rockwood contends on
appeal that the cellular telephones are used by school resource officers to teach safety training
and assistance, as well as to provide the school with a safety presence. 10 In its Fonn 470,
however, Rockwood stated that it was seeking cellular, two-way radio services that will improve
the customer service between its computer/technology center and its schools, improve
communication within the school district among its facilities, and enable Rockwood to establish
a Crisis Team that would be contacted in the event of a school district emergency.II In its F0TI11
471, Rockwood specified a breakdown ofthe school district employees who would be using the
cellular ,services. \2 This breakdown indicated that 33 ofthe phones would be used by resource
officers, the Crisis Team, computer center employees, grounds/maintenance workers, and food
service/warehouse workers ($20,844 per year). 13
5. We find that Rockwood's funding request is for an ineligible service. Although
Rockwood argues on appeal that the cellular services at issue would be used for educational
purposes, such as safety instruction, Rockwood's own application belies its claims. According to
Rockwood's FCC Fonn 471, well over 30 percent ofthe funding request is to provide monthly
cellular services for resource officers, the Crisis Team, computer center employees,
grounds/maintenance workers, and food service/warehouse workers, which are clearly ineligible
for funding under the program rules because they fail to serve an educational purpose. 14 We
decline to overturn SLD's decision when the applicant effectively revises its application on
'appeal. We, therefore, deny Rockwood's Request for Review.
9 Rockwood requested discount funding for 29 schools at $40 per month per school and six resource centers at
$45 per month per resource center. The funding amount at issue is $8,864.00, discounted from a total service cost
of$34,764.
10 See Request for Review,
II FCC Form 470, Rockwood School District R 6, Eureka, Missouri, filed December 22, 1998.
12 FCC Form 471, Rockwood School District R 6, Eureka, Missouri, filed March 10, 1999.
13 See id.
14 See FCC Fom1470, Rockwood School District R 6, Eureka, Missouri, filed December 22, 1998; 47 U.S.C §
254(h)(1)(B) (requiring that services provided to eligible schools and libraries be used for educational purposes);
SLD web site, Eligible Services List (January 30, 2001)<http://www.sl.universalservice.org/ref~
~ible.asp>
3
Federal Communications Commission DA 01-586
I
6. ACCORDINGLY, IT IS ORDERED, pursuant to authority delegated under
sections 0.91,0.291, and 54.722(a) ofthe Commission's rules, 47 C.F.R. §§ 0.91, 0.291, and
54.722(a), that the Request for Review filed April 12,2000, by Rockwood School District R 6,
Eureka, Missouri, IS DENIED.
FEDERAL COMMUNICATIONS COMMISSION
{~/JCC,(ri,~
Carol E. Mattey
Deputy Chief, Common Carrier Bureau
4