FCC Regulations and Significant FCC Decisions

FCC ID

Date

Significant Changes

• The FCC directed USAC in future to explain the problem to applicants and give them an opportunity to fix it.

• Audits will continue, but not increase.
• Some forms will change in order to collect information for the new performance measures.
• USAC is required to reach out to a sample of economically disadvantaged applicants that choose not to participate in the program, and help them at the start of the application process.

• The FCC directed USAC in future to explain the problem to applicants and give them 15 days to fix it.

• 30% Rule applies only to ineligible services, not to services which are not cost-effective. 
• Interestingly, the FCC called Internet service from two different providers "duplicative," but allowed both connections to be funded at the level of the less expensive one.

• 30% Rule does not apply to entities. 
• If USAC and applicant disagree on the eligibility of a location, USAC must offer to put that entity in a separate funding request.

• If USAC believes a funding request includes ineligible, they have to notify the applicant what the ineligible items are, and give them 15 days to fix it.
• If USAC and applicant disagree on the eligibility of a service, USAC must offer to put that service in a separate funding request.

• "It is not necessary...to require schools to have final, written commitments of funding so far in advance of the time that it is needed"

• If an applicant fails to prove adequate funding, USAC must specifically identify the failure and allow 15 days to fix it. 

• If the applicant really doesn't have adequate funding for the full request, USAC has to work with the applicant to figure out what they can pay for.

• If a tech plan is deficient, USAC must specifically identify the failure and allow 15 days to fix it. 

• "we require USAC in each instance to detail in writing and with specificity to the applicant any information or documentation USAC is seeking"

SLD approved funding video distribution system, then disallowed some components when the invoice came.  FCC remanded.

• Some information on the eligibility of video distribution components. 
• 2003-2004 Eligible Services List treated as authoritative.
• End-user training allowed.

FCC-06-54

5/19/06

USAC must inform applicants of missed deadlines and clerical errors on Forms 470 and 471 and allow applicants 15 days to make corrections.  And 196 denials were waived.  The erratum corrects a reference to the Form 486 in the opening paragraph.

FCC-06-55

5/19/06

USAC cannot deny applications based solely on "pattern analysis."  If similarities are discovered among applicant 470s, the SLD must investigate further and give applicants an opportunity to explain the similarities.

DA-06-785

4/3/06

Waiver only: Applicant not required to have a contract before submitting Form 471 because it would violate state law.

DA-06-487

2/28/06

Waiver only: Deadline waived because district personnel called up for military service.

DA 06-244

2/1/06

Waiver only: applicant clerical errors on forms can be fixed at a later date.

DA-05-2176

7/27/05

Limits the SLD's ability to deny requests based on insufficient documentation.  "To the extent that Fayette�s response was not sufficient to demonstrate eligibility, SLD failed to specify what additional information was required."

FCC-05-124

6/15/05

Not a new order, but a request for comment on possible rule changes.  It's worth taking a look at the changes that the FCC is considering.  It's too late to submit comments in response to the NPRM, though it's always possible to submit ex parte comments.

DA-05-54

1/11/05

Limits the application of the "30% Rule."  "The 30 percent policy, however, applies to requests for ineligible services, not for unsubstantiated amounts of eligible services."

FCC 04-190

8/13/04

Recovery of Funds:

• Guidelines for recovery of improperly disbursed funds
• Funds can be recovered for up to 5 years
• �Red light rule�: no new funding until recovery complete
• FCC Registration Number required

Document retention:

• A long, but not complete, list of documents to be retained
• Documents to be retained for 5 years

Technology Plans:

• Requirements for timing of tech plans codified
• Content requirements of tech plans clarified

Certification requirements:

• New certifications required for forms

FCC 04-181

7/30/04

Recovery of Funds:

• Funds can be recovered from applicants or service providers

FCC 04-58

3/17/04

Records not public:

• Selective Review documents are secret
• FCC Inspector General documents are secret

FCC 03-323

12/23/03

Internal Connections:

• �2 in 5� rule: internal connections funding only twice every five years (except maintenance)
• Basic maintenance defined, made it's own Category of Service
• Equipment cannot be moved for 3 years

Eligible Services:

• Cost allocation rules codified
• Eligible services list published for comment, approved by FCC
• No free services from service providers
• Codification of procedure for service substitutions
• Clarification of �On-Premise Priority One Equipment�

Funding Carryover:

• Unused funds from past years rolled into current year

FCC-03-313

12/8/03

Clarification of competitive bidding rules

• No "System Integrator" or "two-step" approach to bidding. 

• No "encyclopedic" list of services.  "Applicants must submit a list of specified services for which they anticipate they are likely to seek discounts consistent with their technology plans,"  described "with sufficient specificity to enable bidders to submit realistic bids with prices"
• If a district releases an RFP, it should be mentioned on the Form 470.
• Bids must include specific prices for specific services.
• Even if only one bid is received, it must be "cost-effective" in order to be eligible for funding.
• No Help Desks; routing and logging maintenance requests not eligible.

FCC 03-101

4/29/03

Eligible Services:

• �Bus driver� rule: �educational purpose� standard expanded
  (�Any supported service �  to be used by any school or library staff � on school or library property, shall be eligible for discounts.�)
• Duplicative services not allowed
• Voice mail eligible
• Eligible products database for internal connections required

30% Rule:

• �30% Rule� codified

Choice and Timing of Payment Method:

• Service providers required to give applicants choice of discount or reimbursement

Appeals:

• Expands appeal deadline to 60 days after decision
• Funding of appeals codified

Suspension and Debarment:

• Rules for throwing people out of the program

Unused Funds:

• Unused funds to be rolled over into subsequent years

DA-02-3365

12/6/02

Installation work done before the start of a telecommunications or Internet access service should be considered "delivered" at the start of the service, not when the actual installation is done.  Non-recurring costs for work done before the start of service can be billed at the start of service.

DA-02-2975

11/4/02

Applicants can receive E-Rate funding on an existing contract if, after reviewing all bids, the existing contract is found most cost-effective.

FCC-00-167

5/23/00

No service provider contact information on Form 470.

FCC-00-100

3/16/00

Requirements for SPIN changes (changing service provider after Form 471 is filed.)

FCC-99-216

8/11/99

• Cost need not be the only factor in selecting a bidder.

• Applicant cannot sell a WAN, then lease it back.

• On-premise equipment may be considered part of a Priority One service in certain limited circumstances.

• Program year changed from calendar year to July-June.

• Priority One / Priority Two division created.

• Purchased WANs not eligible.

• Internal connections in non-instructional buildings not eligible.

• Master contracts.