**Before the**

**Federal Communications Commission**

**Washington, DC 20554**

In the Matter of )

)

Request for Review of the Decision of the )

Universal Service Administrator by )

)

Jennings County Schools ) File Nos. SLD-483504, 484125, 484535

North Vernon, IN )

)

Schools and Libraries Universal Service ) CC Docket No. 02-6

Support Mechanism )

**order**

**Adopted: July 19, 2006 Released: July 19, 2006**

By the Chief, Wireline Competition Bureau:

1.  In this Order, we grant the Request for Review filed by Jennings
    County Schools (Jennings County) seeking review of a decision by the
    Universal Service Administrative Company (USAC) denying Jennings
    County discounted services under the schools and libraries universal
    service support mechanism (E-rate program).[^1] USAC denied Jennings
    County's Funding Year 2005 funding requests after Jennings County
    failed to respond to USAC's selective review data request by the
    USAC-designated deadline.[^2] For the reasons discussed below, we
    grant the request for review and remand this case to USAC for
    further consideration consistent with this Order. We also direct
    USAC to complete its review of this application and issue an award
    or denial based on a complete review and analysis no later than 60
    days from release of this Order.

2.  Under the E-rate program, 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] To ensure that applicants are able to use
    the discounted services effectively, and thereby minimize waste,
    Commission rules require applicants to certify that they will have
    the necessary resources to finance both the non-discounted portion
    of the price of eligible services and whatever their technology
    plans indicate they need, in terms of equipment, training, and other
    resources, to be able to effectively use the discounted
    services.[^4] That is, applicants must ascertain the costs of the
    products and services they need to support effective usage and then
    certify that they have identified funding sources that will enable
    them to purchase those products and services, as well as the
    non-discounted portion of the price of eligible services.[^5]
    Support for eligible services is conditional upon the applicant
    securing access to all of the resources, including computers,
    training, software, maintenance, and electrical connections
    necessary to effectively use the services purchased.[^6]

3.  On February 18, 2005, Jennings County filed three applications
    seeking 69 percent E-rate discounts on approximately \$50,000 in
    services.[^7] On July 12, 2005, USAC sent Jennings County a request
    for data as part of a "selective review," requesting a response by
    July 26, 2005.[^8] On July 16, 2005, Jennings County acknowledged
    receipt of the selective review materials.[^9] On July 27, 2005,
    USAC sent a second request for information to Jennings County.[^10]
    Jennings County requested an extension of time to provide its
    response to August 12, 2005, which USAC granted.[^11] When there was
    no response by the second deadline, USAC denied the funding
    requests, finding that Jennings County had failed to demonstrate
    that it would have sufficient resources to effectively use its
    eligible services.[^12] Jennings admits that it did not respond to
    the selective review funding requests, but states that its funding
    requests were denied before it had a chance to provide the requested
    information, which it claims it is willing and able to provide.[^13]

4.  We grant the appeal of Jennings County. Given that the purpose of
    the necessary resources rule is to ensure that applicants are
    willing and able to pay the discounted prices of eligible services
    and finance other related purchases, and that Jennings County has
    submitted a budget to the Commission purporting to show that
    Jennings County meets that standard, we now remand its Funding Year
    2005 applications to USAC. We direct USAC to give Jennings County 15
    calendar days to submit all of its relevant budgetary materials so
    that USAC can continue its selective review of Jennings County. We
    expect Jennings County to provide USAC, in a timely manner, with the
    information that USAC may request. If USAC finds that the three
    Jennings County applications at issue here were filed consistent
    with E-rate program rules, it should grant them.

5.  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 Jennings County Schools on March 23, 2006 IS GRANTED and
    REMANDED to USAC for further consideration consistent with this
    Order.

6.  IT IS FURTHER ORDERED, pursuant to the authority contained in
    sections 1-4 and 254 of the Communications Act of 1934, as amended,
    47 U.S.C. §§ 151-154 and 254, and pursuant to authority delegated in
    sections 0.91 and 0.291 of the Commission's rules, 47 C.F.R. §§ 0.91
    and 0.291, that USAC SHALL COMPLETE its review of these applications
    and ISSUE an award or a denial based on a complete review and
    analysis no later than 60 calendar days from release of this Order.

7.  IT IS FURTHER ORDERED that this Order SHALL BE EFFECTIVE upon
    release.

    FEDERAL COMMUNICATIONS COMMISSION

    Thomas J. Navin

    Chief

    Wireline Competition Bureau

[^1]: Letter from Michael Bushong, Jennings County Schools, to Federal
    Communications Commission, filed March 23, 2006 (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
    Universal Service Administrative Company may seek review from the
    Commission. 47 C.F.R. § 54.719(c).

[^2]: Letter from Schools and Libraries Division, Universal Service
    Administrative Company, to Gregg Sinders, Jennings County Schools,
    dated Jan. 20, 2006 (USAC Decision on Appeal).

[^3]: 47 C.F.R. §§ 54.501-503.

[^4]: *See* 47 C.F.R. § 54.508(a)(3), (4).

[^5]: *See* 47 C.F.R. § 54.504(b)(2)(vi), (c)(1)(iii); Schools and
    Libraries Universal Service, Services Ordered and Certification
    Form, OMB 3060-0806 (November 2004) (FCC Form 471), item 25;
    *Federal-State Joint Board on Universal Service*, CC Docket No.
    96-45, Report and Order, 12 FCC Rcd 8776, 9079, para. 577 (1997), as
    corrected by *Federal-State Joint Board on Universal Service*, CC
    Docket No. 96-45, Errata, 13 FCC Rcd 24493 (1997), *affirmed in
    part, reversed in part, remanded in part sub nom. Texas Office of
    Public Utility Counsel v. FCC*, 183 F.3d 393 (5th Cir. 1999), *cert.
    denied*, 530 U.S. 1210 (2000), *cert. dismissed*, 531 U.S. 975
    (2000).

[^6]: *Schools and Libraries Universal Service Support Mechanism*, CC
    Docket No. 02-6, Fifth Report and Order and Order, 19 FCC Rcd 15808,
    15830-31, paras. 65-66 (2004).

[^7]: *See* Jennings County's FCC Form 471 applications 483504, 484125,
    and 484535.

[^8]: *See* USAC Decision on Appeal at 2.

[^9]: *Id.*

[^10]: *Id.*

[^11]: *Id.*

[^12]: *Id.*

[^13]: Letter from Gregg Sinders, Jennings County Schools, to Schools
    and Libraries Division, Universal Service Administrative Company,
    dated Nov. 7, 2005 at 1-2.