[Federal Register Volume 62, Number 178 (Monday, September 15, 1997)]
[Notices]
[Pages 48280-48281]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 97-24554]


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FEDERAL COMMUNICATIONS COMMISSION

[CC Docket 96-45; DA 97-1957]


Common Carrier Bureau Seeks Comment on Universal Service Support 
Distribution Options for Schools, Libraries, and Rural Health Care 
Providers

Released: September 10, 1997.

Potential for Exhaustion of Funds

    On May 8, 1997, the Federal Communications Commission (Commission) 
released a Report and Order on Universal Service CC Docket No. 96-45, 
FCC 97-157 62 FR 32862 (June 17, 1997) (Order). <SUP>1</SUP> In the 
Order, the Commission determined that funds for eligible schools, 
libraries, and rural health care providers will be distributed on a 
first-come first-served basis beginning January 1, 1998. The Commission 
also established a $2.25 billion annual cap on universal service 
support for schools and libraries and a $400 million annual cap for 
rural health care providers. Eligible schools and libraries will be 
required to participate in a competitive bidding process to select 
their service providers and will be permitted to submit funding 
requests once they have made agreements for specific eligible services. 
The Administrator will commit funds based on those agreements on a 
first-come first-served basis until only $250 million in funds remains 
available. Thereafter, a system of priorities will govern the 
distribution of the remaining $250 million to provide an opportunity 
for only the most economically disadvantaged schools and libraries to 
receive support. In light of the need to implement the necessary 
administrative processes, funding for the period beginning January 1, 
1998 and ending June 30, 1998 will be limited to $1 billion for schools 
and libraries. Similarly, disbursement to rural health care providers 
will be limited to $100 million in the first quarter of 1998.
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    \1\ Federal-State Joint Board on Universal Service, Report and 
Order, CC Docket No. 96-45, FCC 97-157 (released May 8, 1997) 62 FR 
32862 (June 17, 1997).
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    In response to concerns expressed about distributing support to 
schools, libraries, and rural health care providers on a first-come, 
first-serve basis, we seek comment on the following issues:
    (1) Whether a ``window'' period should be established in which all 
beneficiaries filing within that period would be given equal priority. 
We seek comment on the length of the period in which any such window 
should remain open and as to whether there should be a ``rolling'' or 
ongoing series of windows, e.g., a series of two-week windows during 
which all beneficiaries filing within that two-week period would be 
given equal priority.
    (2) Whether to clarify that the rules of priority for distributing 
funds to schools and libraries set forth in Sec. 54.507 of the 
Commission's rules, 47 CFR 54.507, apply to the $1 billion available 
between January 1, 1998 through June 30, 1998. That is, if expenditures 
between January 1, 1998 and June 30, 1998 reach the level where only 
$250 million remains before the $1 billion cap is reached, the 
remaining funds will be distributed in accordance with the rules of 
priority. <SUP>2</SUP>
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    \2\  Although the text of the Order discusses the trigger 
mechanism only with respect to the full $2.25 billion cap per 
funding year, we note that Sec. 54.507(g) of the Commission's rules 
states that the trigger mechanism applies when only $250 million 
remains in any funding year, which includes the period from January 
1, 1998 through June 30, 1998.
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    (3) We also seek comment on whether a mechanism to prioritize 
requests from rural health care providers should be adopted in the 
event that requests exceed available funds. For example, should a 
mechanism be established to ensure that funds are distributed to rural 
health care providers located in all regions of the country? We seek 
comment on whether such a mechanism should be permanent or should apply 
only in the first quarter of 1998, when collection for rural health 
care is limited to $100 million.
    (4) We also seek comment on whether other methods might ensure a 
broad and fair distribution of funds, particularly at the earliest 
stages of these support programs.

Allocation of Aggregated Requests for Funds

    In the Order, the Commission held that schools and libraries may 
apply for funds on an individual basis, by school district, by state, 
or by consortium. In the event that a school district or a state 
applies for support on behalf of its schools, the school district or 
state may compute the discounts on an individual school basis or may 
compute an average discount. The state or school district shall strive 
to ensure that each school receives the full benefit of the discount to 
which it is entitled. On July 31, 1997, the ``E-Rate Implementation 
Working Group,'' comprised of the U.S. Department of Education, 
Institute of Museum and Library Services, National Telecommunications 
and Information Administration, Rural Utilities Service, and Education 
and Library Network Coalition, filed a report with the Commission in CC 
Docket 96-45 in response to the Commission's request for 
recommendations on certain issues regarding universal service support 
for schools and libraries. <SUP>3</SUP> The Working Group Report 
proposes a method for allocating support to individual institutions 
that apply for funds on an aggregated (e.g., statewide or districtwide) 
basis. We seek comment on that proposal. Copies of the report

[[Page 48281]]

are available for review and copying at the FCC Reference Center, Room 
239, 1919 M Street, N.W., Washington, D.C. 20554 or on the Internet at 
www.ed.gov/Technology.
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    \3\  U.S. Department of Education, Institute of Museum and 
Library Services, National Telecommunications and Information 
Administration, Rural Utilities Service, Education and Library 
Networks, Report by the E-Rate Implementation Working Group (July 
31, 1997) (Working Group Report).
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Procedure for Filing

    Comments should be filed in CC Docket No. 96-45 on or before 
September 25, 1997, and should include the DA number shown on this 
Public Notice. Pursuant to Sec. 1.3 of the Commission's rules, 47 CFR 
1.3, we find good cause to waive Sec. 1.415 (c) of the Commission's 
rules, 47 CFR 1.415, providing for replies to original comments. 
Dispensing with reply comments is crucial due to the urgent need to 
provide definitive guidance to the schools, libraries, and rural health 
care providers that are applying for services supported by the 
universal service support mechanisms currently scheduled to begin by 
January 1, 1998. Interested parties must file an original and four 
copies of their comments with the Office of Secretary, Federal 
Communications Commission, Room 222, 1919 M Street, N.W., Washington, 
D.C. 20554. Parties should send eight copies of their comments to 
Sheryl Todd, Universal Service Branch, Accounts and Audits Division, 
Federal Communications Commission, 2100 M St, N.W., 8th Floor, 
Washington, D.C. 20554. Parties should send one copy of their comments 
to the Commission's copy contractor, International Transcription 
Service, 1231 20th Street, N.W., Washington, D.C. 20036.
    Pursuant to Sec. 1.1206 of the Commission's Rules, 47 CFR 1.1206, 
this proceeding will be conducted as a permit-but-disclose proceeding 
in which ex parte communications are permitted subject to disclosure.
    For further information, please contact: Richard D. Smith or Lori 
Wright, Common Carrier Bureau, (202) 418-7400.

Federal Communications Commission.
William F. Caton,
Acting Secretary.
[FR Doc. 97-24554 Filed 9-12-97; 8:45 am]
BILLING CODE 6712-01-U