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 Federal  Communications  Commission  DA  06-  1462 
 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  Countys  Funding  Year  2005  funding  requests  after  Jennings  County 
 failed  to  respond  to  USACs  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 


 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  Commissions  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). 
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 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  Commissions  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. 


 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  Countys  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. 
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 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  Commissions  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 
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