**Before the**

**Federal Communications Commission**

**Washington, D.C. 20554**

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| In the Matter of                 | *  | File No. SLD-267054          |
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| Request for Review of the        | ** | CC Docket No. 96-45          |
| Decision of the                  |    |                              |
|                                  | *  | CC Docket No. 97-21          |
| Universal Service Administrator  | *) |                              |
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| By                               |    |                              |
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| Southern Adirondack Library      | *) |                              |
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| Saratoga Springs, New York       | *  |                              |
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| Federal-State Joint Board on     | ** |                              |
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| Universal Service                | *  |                              |
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| Changes to the Board of          | ** |                              |
| Directors of the                 |    |                              |
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| National Exchange Carrier        | *) |                              |
| Association, Inc.                | ** |                              |
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**ORDER**

**Adopted: March 29, 2002 Released: April 4, 2002**

By the Telecommunications Access Policy Division, Wireline Competition
Bureau:

1.  The Accounting Policy Division has under consideration a Request for
    Review filed by Southern Adirondack Library System (Adirondack),
    Saratoga Springs, New York.[^1] Adirondack review of a decision by
    the Schools and Libraries Division (SLD) of the Universal Service
    Administrative Company (Administrator) to deny its application for
    Funding Year 4 of the schools and libraries universal service
    support mechanism.[^2] For the reasons discussed below, we deny
    Adirondack's Request for Review. To the extent that Adirondack
    request's a waiver of the Commission's rules, we deny that request
    as well.

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 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 agreements for
    eligible services, the applicant must submit a completed FCC Form
    471 application to the Administrator.[^5]

3.  Under the Commission's regulations, SLD is authorized to establish
    program standards for FCC Form 471 applications by schools and
    libraries seeking to receive discounts for eligible services.[^6]
    Pursuant to this authority, every funding year, SLD establishes and
    notifies applicants of a "minimum processing standard" to facilitate
    the efficient review of the thousands of applications requesting
    funding.[^7] In Funding Year 4, SLD instructions stated that minimum
    processing standards required applicants to use the correct
    form.[^8] When an applicant submits an application that does not
    comply with an item subject to the minimum processing standard, SLD
    automatically rejects the application and returns it to the
    applicant. The Common Carrier Bureau (Bureau) has upheld SLD\'s
    minimum processing standard of requiring the applicants to use the
    correct form. [^9]

4.  The Commission's rules also allow the Administrator to implement an
    initial filing period ("filing window") for the FCC Form 471
    applications that treats all schools and libraries filing within
    that period as if their applications were simultaneously subject to
    separate funding priorities under the Commission's rules.[^10]
    Applications that are received outside of this filing window are
    subject to separate funding priorities under the Commission's
    rules.[^11] It is to all applicants' advantage, therefore, to ensure
    that the Administrator receives their applications prior to the
    close of the filing window.

5.  Adirondack filed a FCC Form 471 with SLD for Funding Year 4 on
    January 22, 2001.[^12] Instead of using the appropriate Funding Year
    4 Form 471 application, Adirondack applied for support using a
    Funding Year 3 Form 471 application.[^13] On July 26, 2001,
    Adirondack received a letter from SLD notifying the school that
    Adirondack's application could not be processed because it did not
    meet minimum processing standards for Funding Year 4.[^14]
    Adirondack did not meet Funding Year 4 minimum processing standards
    because it had used the incorrect OMB-approved FCC Form 471, rather
    than the Funding Year 4 Form 471 that was dated October 2000 in the
    lower-right hand corner of the form.

6.  On August 8, 2001, Adirondack filed an appeal with SLD, stating
    that, although it submitted a Funding Year 3 Form 471 in error, its
    Funding Year 3 Form 471 was filed before the Funding Year 4 filing
    window closed on January 18, 2001.[^15] Along with the appeal
    letter, Adirondack submitted an application completed on the correct
    OMB-approved FCC Form 471, dated October 2000 in the lower right
    hand corner.[^16] On October 1, 2001, SLD denied Adirondack's appeal
    because the application failed to meet minimum processing
    standards.[^17] SLD also determined that it could not consider the
    corrected FCC Form 471 Adirondack submitted with its appeal because
    it was filed outside of the funding window.[^18]

7.  On appeal, Adirondack asserts that, despite using the wrong form,
    its application should be accepted as completed within the filing
    window because its Funding Year 3 Form 471 was filed well within the
    filing window and SLD did not notify it of the problem until after
    the filing window deadline.[^19] Adirondack also contends that the
    information it submitted on the Funding Year 3 Form 471 was the same
    as the information it provided on the Funding Year 4 Form 471, and
    that the two forms were identical in all material respects.[^20]

8.  We are not persuaded by Adirondack's assertion that the information
    it submitted on the Funding Year 3 Form 471 contained all the
    information necessary for SLD to process the application and that
    Funding Year 3 Form 471 and Funding Year 4 Form 471 were identical
    in all material respects.[^21] In fact, there were several changes
    to the Funding Year 4 FCC Form 471, including changes to the
    certification page.[^22] Because SLD must review and process
    thousands of applications each funding year, it would be
    administratively burdensome if SLD were to accept the Funding Year 3
    Form 471 only to return to the applicant to collect missing
    information or acquire additional certifications that are required
    in the Funding Year 4 Form 471. In this program, using the correct
    form and providing the correct information is particularly relevant
    in processing an applicant's application.

9.  Adirondack also seeks a waiver of the requirement that the proper
    form be used so that the FCC Form 471 may be considered as
    originally submitted, or in the alternative, waiver of the filing
    window so that the corrected application may be considered.[^23]
    Although the Commission may waive any provision of its rules, a
    showing of good cause must support a waiver request.[^24] A waiver
    from the Commission is appropriate if special circumstances warrant
    a deviation from the general rule, and such deviation would better
    serve the public interest than strict adherence to the general
    rule.[^25] A rule, therefore, may be waived where the particular
    facts make strict compliance inconsistent with the public
    interest.[^26]

10. We conclude that Adirondack has provided an insufficient basis for a
    waiver from the general rule and a departure from Bureau precedent
    on this issue. SLD must review and process thousands of applications
    each funding year. It is administratively appropriate for SLD to
    require applicants to adhere to applicable program rules and
    application requirements.[^27] It is therefore incumbent upon
    applicants to determine whether their applications are in compliance
    with program requirements prior to filing. Because applications may
    change from year to year, applicants bear the responsibility of
    determining whether or not the correct form is being used.
    Adirondack should have determined that it was using the wrong
    application form.

11. The FCC Form 471 application and instructions are funding year
    specific, and each set of instructions provides item-by-item
    instructions to the corresponding form. [^28] Further, the
    instructions encourage applicants to reference the SLD website, to
    obtain guidance material from SLD's fax-on-demand service, or to
    contact SLD's Client Service Bureau for assistance with the
    application process.[^29] Specifically, in Funding Year 4, the
    minimum processing standards for a FCC Form 471 provide that each
    form must be a "correct OMB-approved FCC Form 471, with a date of
    October 2000 in the lower right-hand corner."[^30] Moreover, the FCC
    Form 471 instructions state that if a school or library does not
    provide the information requested on this form, "the processing of
    your application may be delayed or your application may be returned
    to you without action."[^31] Applicants that fail to properly
    complete the required application or otherwise fail to follow
    program rules, run the risk that their applications may not be
    considered within the filing window.

12. SLD received a number of applications that used the wrong form for
    Funding Year 4. If we were to grant a waiver for using the wrong FCC
    Form 471, we would then have to grant similar relief to other
    entities that made similar mistakes, which would in turn increase
    administrative burdens for SLD. For Funding Year 4, SLD received
    over 37,000 applications.[^32] It is impractical, if not impossible,
    for SLD to review each application and notify applicants of errors
    prior to the close of the filing window. Instead, the burden of
    ensuring that complete and accurate information is provided on the
    correct forms properly rests with applicants themselves.

13. Moreover, we do not believe that it is appropriate to waive the
    filing window deadline to consider the FCC Form 471 Adirondack filed
    on August 8, 2001 as timely filed.[^33] The FCC Form 471
    instructions state that if a school or library does not provide the
    information requested on this form, "the processing of your
    application may be delayed or your application may be returned to
    you without action."[^34] Applicants that fail to properly complete
    the required application or otherwise fail to follow program rules,
    run the risk that their applications may not be considered within
    the filing window. We therefore conclude that Adirondack has failed
    to make a showing warranting relief and, therefore, its Request for
    Review must be denied.

14. ACCORDINGLY, IT IS ORDERED, pursuant to authority delegated under
    sections 0.91, 0.291, 1.3, and 54.722(a) of the Commission\'s rules,
    47 C.F.R. §§ 0.91, 0.291, 1.3, and 54.722(a), that the Request for
    Review filed November 5, 2001 by Southern Adirondack Library System,
    Saratoga Springs, New York IS DENIED.

    FEDERAL COMMUNICATIONS COMMISSION

    Mark G. Seifert Deputy Chief, Telecommunications Access Policy
    Division Wireline Competition Bureau

[^1]: Request for Review of the Decision of the Universal Service
    Administrator by Southern Adirondack Library System, CC Docket Nos.
    96-45 and 97-21, Request for Review, filed November 5, 2001 (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. §§ 54.502, 54.503.

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

[^5]: 47 C.F.R. § 54.504(c).

[^6]: *See* 47 C.F.R. § 54.507(c); *Changes to the Board of Directors of
    the 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).

[^7]: *See, e.g.*, SLD web site, Form 471 Minimum Processing Standards
    and Filing Requirements for FY4,
    \<<http://www.sl.universalservice.org/reference/471mps.asp>\>
    (Funding Year 4 Minimum Processing Standards).

[^8]: *Id.*

[^9]: *See Request for Review by Fair Lawn Board of Education, Changes
    to the Board of Directors of the National Exchange Carrier
    Association, Inc*., File No. NEC.471.12-10-99.02300008 and
    NEC.471.11-19-99.01100003, CC Dockets No. 96-45 and 97-21, Order, 16
    FCC Rcd 12901 (Com. Car. Bur. 2001) (upholding SLD\'s minimum
    processing standard that required applicants to use the correct FCC
    Forms for the funding years in which they were applying).

[^10]: 47 C.F.R. § 54.507(c).

[^11]: 47 C.F.R. § 54.507(g).

[^12]: FCC Form 471, Southern Adirondack Library System, filed January
    22, 2001 (Adirondack Funding Year 4 Form 471).

[^13]: *See* Schools and Libraries Universal Service, Services Ordered
    and Certification Form, OMB 3060-0806 (October 2000) (Funding Year 4
    Form 471); Schools and Libraries Universal Service, Services Ordered
    and Certification Form, OMB 3060-0806 (September 1999) (Funding Year
    3 Form 471).

[^14]: Letter from Schools and Libraries Division, Universal Service
    Administrative Company, to Bill Whittaker, Southern Adirondack
    Library System, dated July 26, 2001 (Funding Year 4 Form 471
    Rejection Letter).

[^15]: Letter from Miriam Meier and William Whittaker, Southern
    Adirondack Library System, to Schools and Libraries Division,
    Universal Service Administrative Company, filed August 8, 2001 (SLD
    Appeal Letter).

[^16]: *Id.*

[^17]: Letter from Schools and Libraries Division, Universal Service
    Administrative Company, to William Whittaker, Southern Adirondack
    Library System, dated October 1, 2001.

[^18]: *Id.*

[^19]: *Id.*

[^20]: *Id*.

[^21]: Request for Review.

[^22]: *Compare* Funding Year 4 FCC Form 471 at Block 6 *with* Funding
    Year 3 FCC Form 471 at Block 6 (the Funding Year 4 FCC Form 471 also
    requires applicants to certify that "if audited, \[the applicant\]
    will make available to the Administrator such records" ).

[^23]: Request for Review at 2.

[^24]: 47 C.F.R. § 1.3; *see also WAIT Radio v. FCC*, 418 F.2d 1153,
    1158 (D.C. Cir. 1969), *cert. denied*, 409 U.S. 1027 (1972) (*WAIT
    Radio*).

[^25]: *Northeast Cellular Telephone Co. v. FCC*, 897 F.2d 1164, 1166
    (D.C. Cir. 1990) (*Northeast Cellular*); *see also* *WAIT Radio*,
    897 F.2d at 1159 (stating that the Commission may take into account
    considerations of hardship, equity, or more effective implementation
    of overall policy on an individual basis).

[^26]: *Northeast Cellular*, 897 F.2d at 1166.

[^27]: *See generally* Funding Year 4 Minimum Processing Standards
    (outlining the manual and online filing requirements for Funding
    Year 4 FCC Form 471).

[^28]: *See generally* Instructions for Completing the Schools and
    Libraries Universal Service, Services Ordered and Certification Form
    (Funding Year 4 FCC Form 471), OMB 3060-0806 (October 2000)(Funding
    Year 4 FCC Form 471 Instructions); Instructions for Completing the
    Schools and Libraries Universal Service, Services Ordered and
    Certification Form (Funding Year 3 FCC Form 471), OMB 3060-0806
    (September 1999).

[^29]: *Id.*

[^30]: Funding Year 4 Minimum Processing Standards.

[^31]: Funding Year 4 FCC Form 471 Instructions at 2.

[^32]: Universal Service Administrative Company, Schools and Libraries
    Program, What's New: March 2001, SLD Provides Updated Demand
    Estimate for Year 4 to FCC,
    \<[http://www.sl.universalservice.org/whatsnew/032001.asp](http://www.sl.universalservice.org/funding/y4/national.asp)\>.

[^33]: *See* Request for Review; SLD Appeal Letter.

[^34]: *Id.*