Before the

**Federal Communications Commission**

**Washington, D.C. 20554**

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| In the Matter of                  | * | File Nos. SLD-328966,        |
|                                   | * | 327289, 329244, 328892,      |
| Request for Review of the         | ) | 327366                       |
| Decision of the                   | * |                              |
|                                   | * | CC Docket No. 96-45          |
| Universal Service Administrative  |   |                              |
|                                   | * | CC Docket No. 97-21          |
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| Western New York Regional         | * |                              |
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| Information Center                |   |                              |
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| West Seneca, New York             | * |                              |
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| National Exchange Carrier         | * |                              |
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**ORDER**

**Adopted: May 14, 2003 Released: May 15, 2003**

By the Wireline Competition Bureau:

1.  Before the Wireline Competition Bureau is a Request for Review filed
    by the Western New York Regional Information Center (Petitioner), on
    behalf of Erie 1 Board of Cooperative Educational Services, Erie 2
    -- Chautauqua/Cattaraugus Board of Cooperative Educational Services,
    Cattaraugus/Allegany Board of Cooperative Education Service,
    Orleans/Niagara Board of Cooperative Educational Services, and
    Steuben/Allegany Board of Cooperative Educational Services
    (collectively, "Applicants").[^1] Petitioner seeks review of
    decisions issued by the Schools and Libraries Division (SLD) of the
    Universal Service Administrative Company (Administrator).[^2] For
    the reasons set forth below, we grant Petitioner's Request for
    Review and remand Petitioner's applications to SLD for further
    processing in accordance with this Order.

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 order to receive discounts on eligible services,
    the Commission\'s rules require that an applicant submit to the
    Administrator a completed FCC Form 470, in which the applicant sets
    forth the school\'s technological needs and the services for which
    it seeks discounts.[^4] Once the school has complied with the
    Commission's competitive bidding requirements and signed a contract
    for the eligible services, it must file an FCC Form 471 application
    to notify the Administrator, among other things, of the services
    that have been ordered, the carrier with whom the school has signed
    the contract, and an estimate of funds needed to cover the discounts
    to be given for eligible services.[^5] Block 4 of the FCC Form 471
    application consists of three different discount calculation
    worksheets.[^6] Depending upon the type of application submitted,
    applicants are required to complete one or more of these discount
    calculation worksheets.[^7] Applicants must complete Worksheet A
    when filing school/school district applications, Worksheet B when
    filing library applications, and Worksheet C when filing consortium
    applications.[^8]

3.  At the start of an application review, SLD utilizes what it calls
    "minimum processing standards" to facilitate the efficient review of
    the thousands of applications requesting funding.[^9] These minimum
    processing standards require an applicant to provide at least the
    basic data necessary for SLD to initiate review of the application
    under statutory requirements and Commission rules. When an applicant
    submits an FCC Form 471, SLD performs an initial visual inspection
    of the application to determine if the application has omitted an
    item required by the minimum processing standards. In such a case,
    SLD automatically returns the application to the applicant without
    considering the application for discounts under the program.[^10]
    Both the minimum processing standards and the automatic return for
    failure to comply are explained in a document available on SLD's
    website, from SLD's fax-on-demand service, and from SLD customer
    services representatives at its toll-free number.[^11]

4.  In Block 1, Item 5 of their FCC Forms 471, Applicants indicated that
    the type of application was a "consortium."[^12] In each of their
    FCC Forms 471, Applicants submitted Block 4 Worksheet A (discount
    calculation worksheet for schools and school districts.[^13]
    Applicants did not submit a Block 4 Worksheet C (discount
    calculation worksheet for consortia).

5.  SLD issued rejection letters for each application, notifying
    Applicants that their applications did not meet minimum processing
    standards.[^14] SLD explained that the FCC Forms 471 submitted did
    not contain at least one complete Block 4 Worksheet relevant to the
    "Type of Application" as selected in Block 1, Item 5.[^15]
    Applicants appealed to SLD.[^16] SLD denied the appeals, stating the
    original submissions were missing data.[^17] Specifically, SLD
    stated that the FCC Forms 471 submitted did not include at least one
    Block 4 Worksheet relevant to the type of application as selected in
    Block 1, Item 5.[^18]

6.  Petitioner then filed the instance Request for Review. Petitioner
    argues that its applications would have been considered complete had
    Applicants checked "school district" instead of "consortium" in
    Block 1, Item 5.[^19] Petitioner maintains that the rejected
    applications were substantially complete when filed and the missing
    information was easily discerned from the rest of the application.
    Thus, Petitioner maintains that granting its Request for Review
    would be consistent with the *Naperville Order*.[^20]

7.  Because the pending Request for Review seeks relief from an
    application procedure, we have reviewed the relevant procedure and
    the relevant applications. Based on this review, we find that the
    rejection of these applications should be reversed. We therefore
    grant Petitioner's Request for Review and remand its applications to
    SLD for further processing.

8.  Funding Year 2002 Minimum Processing Standards provided, "at least
    one completed Block 4 Worksheet *relevant* to your application type
    ... must be submitted."[^21] In accordance with Minimum Processing
    Standards, if an applicant indicated in Block 1, Item 5 that its
    application type was a school or school district, the applicant was
    required to submit Block 4 Worksheet A.[^22] Similarly, where an
    applicant indicated that its application type was a consortium, the
    applicant was required to submit a completed Worksheet C.[^23]
    Pursuant to these procedures, SLD deemed that the *relevant*
    worksheet for a consortium application was Worksheet C although this
    was not stated in the FCC Form 471 instructions. During its Minimum
    Processing Standards review, SLD rejected Petitioner's applications
    because Applicants indicated in Block 1, Item 5 that their
    application type was a consortium, but Applicants failed to attach
    Worksheet C.

9.  We conclude that the FCC Form 471 instructions did not adequately
    state what constituted a relevant worksheet for consortium.
    Specifically, we find that where an applicant filed a consortium
    application, in which the consortium consisted of schools and/or
    school districts, Worksheet A could reasonably be considered to be a
    relevant worksheet. Indeed, an applicant filing a consortium
    application could have reasonably determined that a completed
    Worksheet A satisfied the relevant worksheet requirement. We note
    that SLD has modified the instructions for Funding Year 2003, and
    the instructions now state "if the application type is consortium, a
    completed Block 4 Worksheet C must be submitted."[^24] We therefore
    reverse SLD's decision and remand Petitioner's application to SLD
    for further processing in accordance with this Order.

10. ACCORDINGLY, IT IS ORDERED, pursuant to authority delegated under
    sections 0.91, 0.291, and 54.722(a) of the Commission\'s rules, 47
    C.F.R. §§ 0.91, 0.291, and 54.722(a), that the Request for Review
    filed by the Western New York Regional Information Center, IS
    GRANTED to the extent provided herein, and the applications of Erie
    1 Board of Cooperative Educational Services, Erie 2 -
    Chautauqua/Cattaraugus Board of Cooperative Educational Services,
    Cattaraugus/Allegany Board of Cooperative Education Service,
    Orleans/Niagara Board of Cooperative Educational Services, and
    Steuben/Allegany Board of Cooperative Educational Services are
    REMANDED to SLD for further processing consistent with this Order.

    FEDERAL COMMUNICATIONS COMMISSION

    Carol E. Mattey

    Deputy Chief, Wireline Competition Bureau

[^1]: Letter from Matt Dziuba, Western New York Regional Information
    Center, to the Federal Communications Commission, behalf Erie 1
    Board of Cooperative Educational Services (Erie 1), Erie 2 --
    Chautauqua/Cattaraugus Board of Cooperative Educational Services
    (Erie 2), Cattaraugus/Allegany Board of Cooperative Educational
    Service (Cattaugus/Allegany), Orleans/Niagara Board of Cooperative
    Educational Services (Orleans/Niagara), and Steuben/Allegany Board
    of Cooperative Educational Services (Steuben/Allegany), filed August
    13, 2002 (Request for Review).

[^2]: *See* Request for Review. Section 54.719(c) of the Commission's
    rules provides that any person aggrieved by an action taken by a
    division of the Administrator may seek review from the Commission.
    47 C.F.R. § 54.719(c).

[^3]: ^ ?^ 47 C.F.R. §§ 54.402, 54.503.

[^4]: 47 C.F.R. § 54.504(b)(1), (b)(3).

[^5]: 47 C.F.R. § 54.504(c).

[^6]: Schools and Libraries Universal Service, Services Ordered and
    Certification Form OMB 3060-0806 (November 2001) (FCC Form 471).

[^7]: *Id.*

[^8]: *Id.*

[^9]: 47 C.F.R. § 54.504(c); s*ee* SLD website, Form 471 Minimum
    Processing Standards and Filing Requirements,
    \<<http://www.sl.universalservice.org/reference/471mps.asp>\>
    (Minimum Processing Standards).

[^10]: Minimum Processing Standards.

[^11]: Minimum Processing Standards.

[^12]: FCC Form 471, Erie 1, filed January 17, 2002; FCC Form 471, Erie
    2, filed January 17, 2002; FCC Form 471, Cattaraugus/Allegany, filed
    January 17, 2002; FCC Form 471, Steuben/Allegany, filed January 14,
    2002; FCC Form 471, Orleans/Niagara, filed January 17, 2002
    (Collectively, FCC Forms 471).

[^13]: *Id.*

[^14]: Letter from Schools and Libraries Division, Universal Service
    Administrative Company, to Mat Dziuba, Erie 1, dated March 4, 2002;
    Letter from Schools and Libraries Division, Universal Service
    Administrative Company, to Mat Dziuba, Erie 2, dated February 26,
    2002; Letter from Schools and Libraries, Universal Service
    Administrative Company, to Mat Dziuba, Cattaraugus/Allegany, dated
    March 4, 2002; Letter from Schools and Libraries, Universal Service
    Administrative Company, to Mat Dziuba, Steuben/Allegany, dated
    February 28, 2002; Letter from Schools and Libraries, Universal
    Service Administrative Company, to Mat Dziuba, Orleans/Niagara,
    dated March 4, 2002.

[^15]: *Id.*

[^16]: *See* Letters from Mat Dziuba, Western New York Regional
    Information Center, to Schools and Libraries Division, Universal
    Service Administrative Company, filed April 16, 2002 (SLD Appeal).
    Petition also attached a FCC Form 471 Block 4 Worksheet C to its
    appeal for each application.

[^17]: Letter from Schools and Libraries Division, Universal Service
    Administrative Company, to Mat Dziuba, Erie 2, dated June 24, 2002;
    Letter from Schools and Libraries Division, Universal Service
    Administrative Company, to Mat Dziuba, Erie 1, dated June 24, 2002;
    Letter from Schools and Libraries Division, Universal Service
    Administrative Company, to Mat Dziuba, Steuben/Allegany, dated June
    24, 2002, Letter from Schools and Libraries Division, Universal
    Service Administrative Company to Mat Dziuba, Cattaraugus/Allegany,
    dated July 1, 2002; Letter from Schools and Libraries Division,
    Universal Service Administrative Company, to Mat Dziuba, Orleans/
    Niagara, dated July 1, 2002 (Collectively, Administrator's Decisions
    on Appeal).

[^18]: *Id.*

[^19]: Request for Review.

[^20]: Request for Review. *See also* *Request for Review by Naperville
    Community Unit School District 203, Federal-State Joint Board on
    Universal Service, Changes to the Board of Directors of the National
    Exchange Carrier Association, Inc*., File No. SLD-203343, CC Docket
    Nos. 96-45 and 97-21, Order, 16 FCC Rcd 5032 (2001) (*Naperville
    Order*).

[^21]: Instructions for Completing the Schools and Libraries Universal
    Service Services Ordered and Certification Form (FCC Form 471), OMB
    3060-0806 (November 2001), at 6 (Funding Year 2002 FCC Form 471
    Instructions) (emphasis added).

[^22]: *See generally*, Funding Year 2002 FCC Form 471 Instructions at
    13.

[^23]: *See generally,* Funding Year 2002 FCC Form 471 Instructions at
    17, 18.

[^24]: Instructions for Completing the Schools and Libraries Universal
    Service Services Ordered and Certification Form (FCC Form 471), OMB
    3060-0806 (December 2002), at 7, 13 (Funding Year 2003 FCC Form 471
    Instructions).