**Before the**

**Federal Communications Commission**

**Washington, D.C. 20554**

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| In the Matter of                 | * | File No. SLD-151165          |
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| Request for Review               | ) | CC Docket No. 96-45          |
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| of the Decision of               | * | CC Docket No. 97-21          |
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| the Universal Service            | * |                              |
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| Boston Public Library            | * |                              |
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**ORDER**

**Adopted: March 13, 2001** **Released: March 14, 2001**

By the Common Carrier Bureau:

1.  The Common Carrier Bureau has under consideration a Request for
    Review filed by the Boston Public Library, Boston, Massachusetts, on
    May 30, 2000, seeking review of a decision issued by the Schools and
    Libraries Division (SLD) of the Universal Service Administrative
    Company (Administrator).[^1] Boston Public Library seeks review of
    the SLD's denial of its application for discounts under the schools
    and libraries universal service support mechanism.[^2] For the
    reasons set forth below, we grant in part and deny in part the
    Request for Review.

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] The program's rules state that universal service
    funds support only eligible services.[^4] The instructions for the
    FCC Form 471 clearly state: "YOU MAY NOT SEEK SUPPORT ON THIS FORM
    FOR INELIGIBLE SERVICES."[^5] The instructions further clarify that
    "\[w\]hile you may contract with the same service provider for both
    eligible and ineligible services, your contract or purchase
    agreement must clearly break out costs for eligible services from
    those for ineligible services."[^6] Although SLD reduces a funding
    request to exclude the cost of ineligible services in circumstances
    where the ineligible services represent less than 30 percent of the
    total funding request, SLD will deny a funding request in its
    entirety if ineligible services constitute more than thirty percent
    of the total.[^7] An applicant can avoid denial by subtracting out,
    at the time of its initial application, the cost of ineligible
    services.

3.  By letter dated October 12, 1999, SLD denied the Boston Public
    Library's application for discounts relating to Funding Request
    Numbers (FRN) 269172 and 269173.[^8] On November 11, 1999, the
    Boston Public Library filed separate appeals of this decision with
    SLD.[^9] By letter dated April 27, 2000, SLD denied Boston Public
    Library's appeals.[^10] Specifically, SLD concluded that FRN 269172
    included "more than 30 percent of ineligible services which resulted
    in the denial of the entire amount of the FRN. Remote maintenance,
    remote monitoring, monitoring leased lines, voice compression
    maintenance and CD server maintenance are all ineligible according
    to program rules."[^11] In addition, SLD denied FRN 269173,
    concluding that, "\[f\]ull time technicians are considered
    ineligible according to program rules."

4.  Boston Public Library challenges SLD's decision that two of the five
    services requested in FRN 269172 are ineligible.[^12] Specifically,
    Boston Public Library contends that "remote maintenance" and "voice
    compression maintenance" should be deemed eligible services in the
    context of its application.[^13] Boston Public Library contends that
    its funding request for "remote maintenance" is actually a request
    for "on-site" maintenance of eligible equipment at library branch
    locations.[^14] Boston Public Library indicates that use of the term
    "remote" was intended only to distinguish its branch library
    locations from its main library. In addition, Boston Public Library
    contends that a "voice compression module" is an eligible product so
    long as it is installed in an eligible component, and that it was
    indeed installed in an eligible product. Boston Public Library also
    notes that maintenance is an eligible service when performed on
    eligible equipment. Boston Public Library, therefore, argues that
    its request for voice compression maintenance satisfies these
    requirements.[^15]

5.  Boston Public Library also challenges SLD's decision that the
    salaries for two full-time technicians requested in FRN 269173 are
    ineligible for support. Specifically, Boston Public Library contends
    that these technicians are not employees of Boston Public Library or
    the City of Boston. Because these technicians are responsible for
    installing telecommunications wiring for eligible services, Boston
    Public Library argues that funding for this service should be deemed
    eligible for support under program rules.

6.  In regard to FRN 269172, we find that SLD erroneously concluded that
    Boston Public Library's request for "remote" maintenance violated
    program rules prohibiting support for internal connections "that
    extend beyond a single school campus or single library branch."[^16]
    Although Boston Public Library's characterization of its branch
    libraries as "remote" may have been somewhat confusing, we believe
    that it was reasonable to conclude from the information submitted in
    its original application that the "remote" locations in question
    were the branch libraries listed therein. Because SLD incorrectly
    determined that these were ineligible services, Boston Public
    Library's request for review is granted with respect to the
    maintenance services at its branch libraries.

7.  We also find that SLD incorrectly denied Boston Public Library's
    request for voice compression maintenance. Funding of such service
    is conditional upon installation of the voice compression module in
    an otherwise eligible component. As a general matter, an applicant
    bears the responsibility of clearly explaining the purposes to which
    the funding it requests will be put. In this case, however, while
    the information submitted by Boston Public Library was vague, we
    believe nonetheless that it was possible to discern from the
    information submitted in its original application that such services
    were eligible for support. The voice compression module is installed
    on a router that is eligible for support. Charges incurred for the
    maintenance of eligible services are eligible for discount.[^17]
    Based on the evidence before us, we find that the maintenance on the
    voice compression module is eligible for funding because the voice
    compression module is installed on an eligible product.

8.  In regard to FRN 269173, we agree with SLD that funding can not be
    approved for the salaries of two full-time technicians based upon
    the information submitted by Boston Public Library in its FCC Form
    471.[^18] As noted, schools and libraries may obtain funding for the
    installation and maintenance of eligible services.[^19] Boston
    Public Library, however, provided no information in its FCC Form 471
    to clearly associate any installation and maintenance cost to be
    performed by these full-time technicians with eligible
    equipment.[^20] In fact, its FCC Form 471 contains no description of
    the services that these technicians will perform or the equipment
    upon which the services will be performed. In addition, there is no
    indication as to whether these technicians will perform duties that
    extend beyond the services eligible for support under program rules.
    In light of the thousands of applications that SLD must review and
    process each year, we find that it is administratively necessary to
    require an applicant to be responsible for providing sufficient
    information in its FCC Form 471 to enable SLD to determine whether
    the requested services are eligible. In the absence of such
    information, we believe that SLD was justified in concluding that
    this request should be denied.

9.  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 Boston Public Library on May 30, 2000 IS GRANTED IN PART
    AND DENIED IN PART, as discussed herein. We direct the Schools and
    Libraries Division to review Boston Public Library's funding
    application and to issue a revised Funding Commitment Decision
    Letter in accordance with the above-stated decision.

    FEDERAL COMMUNICATIONS COMMISSION

    Carol E. Mattey Deputy Chief, Common Carrier Bureau

[^1]: *Request for Review by Boston Public Library of Decision of the
    Universal Service Administrator*, CC Docket Nos. 96-45 and 97-21,
    filed May 30, 2000 (Request for Review).

[^2]: 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 *et seq.*

[^5]: Instructions for Completing the Schools and Libraries Universal
    Service Services Ordered and Certification Form (FCC Form 471)
    (December 1998) at 15 (Form 471 Instructions).

[^6]: Form 471 Instructions at 16.

[^7]: *See Request for Review of the Decision of the Universal Service
    Administrative Company by Ubly Community Schools*, *Federal-State
    Joint Board on Universal Service, Changes to the Board of Directors
    of the National Exchange Carrier Association, Inc*., CC Docket Nos.
    96-45 and 97-21, Order, DA 00-1517 (Com. Car. Bur. rel. July 10,
    2000); *Request for Review of the Decision of the Universal Service
    Administrator by Anderson School*, *Federal-State Joint Board on
    Universal Service, Changes to the Board of Directors of the National
    Exchange Carrier Association, Inc*., File No. SLD-133664, CC Docket
    Nos. 96-45 and 97-21, Order, DA 00-2630, para. 8 (Com. Car. Bur.
    rel. November 24, 2000). 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 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). 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. If 30 percent or less of the
    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 of the 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 of
    ineligible services without expending significant fund resources
    working with applicants that are requesting funding of ineligible
    services.

[^8]: Letter from Schools and Libraries Division, Universal Service
    Administrative Company to Boston Public Library, dated October 12,
    1999.

[^9]: *See* Letter from Patrick Cafferty, Boston Public Library, to
    Schools and Libraries Division, filed November 11, 1999 (FRN
    269172). *See also* Letter from Patrick Cafferty, Boston Public
    Library, to Schools and Libraries Division, filed November 9, 1999
    (FRN 269173).

[^10]: Letter from Schools and Libraries Division, Universal Service
    Administrative Company to Boston Public Library, dated April 27,
    2000.

[^11]: *Id*.

[^12]: Request for Review at 3-6. Boston Public Library requested total
    funding in the amount of \$188,320 in FRN 269172. On appeal, Boston
    Public Library does not contest SLD's conclusion that its request
    for remote monitoring (\$42,000), monitoring of leased lines
    (\$3,300), and CD server maintenance (\$7,200) totaling \$52,500 are
    ineligible under program rules. Boston Public Library contends that
    if the two services subject to its appeal are deemed eligible, and
    removed from consideration, the remaining ineligible services total
    only 28 percent of the total funding request.

[^13]: *See* Request for Review at 6.

[^14]: Boston Public Library seeks \$47,600 for "remote" maintenance.
    Request for Review at 4.

[^15]: Boston Public Library seeks \$18,600 for voice compression
    maintenance. Request for Review at 5.

[^16]: *See* 47 C.F.R. § 54.506.

[^17]: 47 C.F.R. §§ 54.503, 54.517.

[^18]: The Commission's rules require that the applicant make a bona
    fide request for service by filing with the Administrator an FCC
    Form 470, which is posted to the Administrator's website for all
    potential competing service providers to review. After the FCC Form
    470 is posted, the applicant must wait at least 28 days before
    entering an agreement for services and submitting an FCC Form 471,
    which requests support for eligible services. SLD reviews the FCC
    Form 471 and issues funding commitment decisions in accordance with
    the Commission's rules.

[^19]: *See* 47 C.F.R. §§ 54.503, 54.517.

[^20]: In Block B of its FCC Form 471, the service description for this
    request is identified as "Telecommunication Specialist."