**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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| ACCEPT Education Collaborative   | *) |                              |
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| Framingham, Massachusetts        |    |                              |
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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 ACCEPT Education Collaborative (ACCEPT), Framingham,
    Massachusetts.[^1] ACCEPT seeks 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 ACCEPT's
    Request for Review. To the extent that ACCEPT requests 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.  ACCEPT filed a FCC Form 471 with SLD for Funding Year 4 on January
    17, 2001.[^12] Instead of using the appropriate Funding Year 4 Form
    471 application, ACCEPT applied for support using a Funding Year 3
    Form 471 application.[^13] On March 22, 2001, ACCEPT received a
    letter from SLD notifying the school that ACCEPT's application could
    not be processed because it did not meet minimum processing
    standards for Funding Year 4.[^14] ACCEPT 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.[^15]

6.  On April 13, 2001, ACCEPT filed an appeal with SLD, stating that it
    mistakenly used the wrong form and that denial of the application
    would have significant repercussions for the applicants.[^16] Along
    with the appeal letter, ACCEPT submitted an application completed on
    the correct OMB-approved FCC Form 471, dated October 2000 in the
    lower right hand corner.[^17] ACCEPT noted that there were no
    substantive information or funding changes from the original
    application.[^18] On July 13, 2001, SLD denied ACCEPT's appeal
    because the original application failed to meet minimum processing
    standards.[^19] SLD also determined that it could not consider the
    FCC Form 471 ACCEPT submitted with its appeal because it was filed
    outside of the funding window.[^20]

7.  On appeal, ACCEPT asserts that despite using the wrong form, its
    application should be accepted as completed within the filing
    window.[^21] ACCEPT contends that its Funding Year 3 FCC Form 471
    was filed within the filing window and that SLD did not return the
    application until well after the filing deadline.[^22] ACCEPT states
    that it was an honest mistake that will have harsh ramification on
    the applicants.[^23] In addition, ACCEPT contends that there were no
    substantive changes from application it submitted on the Funding
    Year 3 Form 471 to the application it provided on the Funding Year 4
    Form 471.[^24]

8.  We are not persuaded by ACCEPT's assertion that the Funding Year 4
    Form 471 required no substantive information or funding changes from
    its Funding Year 3 Form 471 application.[^25] In fact, there were
    several changes to the Funding Year 4 FCC Form 471, including
    changes to the certification page.[^26] 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.  ACCEPT also seeks a waiver of the requirement that the proper form
    be used, or in the alternative, waiver of the filing window.[^27]
    Although the Commission may waive any provision of its rules, a
    showing of good cause must support a waiver request.[^28] 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.[^29] A rule, therefore, may be waived where the particular
    facts make strict compliance inconsistent with the public
    interest.[^30]

10. We conclude that ACCEPT has provided an insufficient basis for a
    waiver from the general rule and a departure from Bureau precedent
    on this issue. As noted above, ACCEPT states that using the wrong
    form was an honest mistake that will have detrimental consequences
    for the applicants.[^31] The Bureau previously has denied requests
    for waiver when the applicant asserted a need for waiver based on
    its own error or misunderstanding of the schools and libraries
    program's rules.[^32] Therefore, to the extent that ACCEPT requests
    a waiver due to its own mistake or misunderstanding of the program
    rules, we find it has not shown good cause for waiver.

11. It is administratively appropriate for SLD to require applicants to
    adhere to applicable program rules and application
    requirements.[^33] It is therefore incumbent upon applicants to
    determine whether their applications are in compliance with program
    requirements prior to filing. 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. [^34]
    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.[^35] 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."[^36] Because
    applications may change from year to year, applicants bear the
    responsibility of determining whether or not the correct form is
    being used.

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.[^37] 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. Finally, we do not believe that it is appropriate to waive the
    filing window deadline to consider the FCC Form 471 ACCEPT submitted
    with its SLD appeal on April 13, 2001, as timely filed.[^38] 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."[^39] 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
    ACCEPT 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 July 31, 2001 by ACCEPT Education Collaborative IS
    DENIED.

    FEDERAL COMMUNICATIONS COMMISSION

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

[^1]: Letter from Michael Pallidino, ACCEPT Education Collaborative to
    Federal Communications Commission, filed July 31, 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, ACCEPT Education Collaborative, filed January 17,
    2001 (ACCEPT 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 Michael Pallidino, ACCEPT Education
    Collaborative, dated March 22, 2001 (Funding Year 4 Form 471
    Rejection Letter).

[^15]: *See* Funding Year 4 Minimum Processing Standards.

[^16]: Letter from Michael Palladino, ACCEPT Education Collaborative, to
    Schools and Libraries Division, Universal Service Administrative
    Company, filed April 13, 2001 (SLD Appeal Letter).

[^17]: *Id.*

[^18]: *Id.*

[^19]: Letter from Schools and Libraries Division, Universal Service
    Administrative Company, to Michael Pallidino, ACCEPT Education
    Collaborative, dated July 13, 2001.

[^20]: *Id.*

[^21]: *Id.* at 1.

[^22]: *Id.*

[^23]: *Id.* at 2.

[^24]: *Id*.

[^25]: Request for Review.

[^26]: *See, e.g.,* Funding Year 4 FCC Form 471 at Block 6; Funding Year
    3 FCC Form 471 at Block 6. For example, 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."

[^27]: Request for Review.

[^28]: 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*).

[^29]: *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).

[^30]: *Northeast Cellular*, 897 F.2d at 1166.

[^31]: Request for Review at 2.

[^32]: *See, e.g., Request for Review by Scranton School District,
    Federal-State Joint Board on Universal Service, Changes to the Board
    of Directors of the National Exchange Carrier Association, Inc*.,
    File No. SLD-112318, CC Docket Nos. 96-45 and 97-21, Order, 15 FCC
    Rcd 181 (Com. Car. Bur. 2000) at para. 8.

[^33]: *See generally* Funding Year 4 Minimum Processing Standards
    (outlining the manual and online filing requirements for Funding
    Year 4 FCC Form 471).

[^34]: *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);
    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).

[^35]: *Id.*

[^36]: Funding Year 4 Minimum Processing Standards.

[^37]: 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)\>.

[^38]: *See* Request for Review; SLD Appeal Letter.

[^39]: *Id.*