Rule2023-16984
Schools and Libraries Universal Service Support Mechanism, Federal-State Joint Board on Universal Service, and Changes to the Board of Directors of the National Exchange Carrier Association, Inc.
Primary source
Metadata and text below are from the Federal Register, a public-domain U.S. government work. Always verify the official published version before relying on it for any legal matter.
Published
August 15, 2023
Effective
September 29, 2023
Issuing agencies
Federal Communications Commission
Abstract
In this document, the Federal Communications Commission (Commission) take steps to increase Tribal library eligibility and continue to reduce administrative burdens in the program. In doing so, the Commission expects to make the program more accessible to Tribal communities, so that they can leverage E-Rate funds to improve and meet the broadband connectivity needs of their communities. Where appropriate, the Commission also amends its rules to benefit non-Tribal applicants as well, to simplify and streamline the E-Rate program for all participants. The Commission expects that these measures will provide a meaningful difference for Tribal communities, especially Tribal libraries that seek to participate in the E-Rate program.
Full Text
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[Federal Register Volume 88, Number 156 (Tuesday, August 15, 2023)]
[Rules and Regulations]
[Pages 55401-55410]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2023-16984]
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FEDERAL COMMUNICATIONS COMMISSION
47 CFR Part 54
[CC Docket Nos. 02-6, 96-45 and 97-21; FCC 23-56; FRS ID 160335]
Schools and Libraries Universal Service Support Mechanism,
Federal-State Joint Board on Universal Service, and Changes to the
Board of Directors of the National Exchange Carrier Association, Inc.
AGENCY: Federal Communications Commission.
ACTION: Final rule.
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SUMMARY: In this document, the Federal Communications Commission
(Commission) take steps to increase Tribal library eligibility and
continue to reduce administrative burdens in the program. In doing so,
the Commission expects to make the program more accessible to Tribal
communities, so that they can leverage E-Rate funds to improve and meet
the broadband connectivity needs of their communities. Where
appropriate, the Commission also amends its rules to benefit non-Tribal
applicants as well, to simplify and streamline the E-Rate program for
all participants. The Commission expects that these measures will
provide a meaningful difference for Tribal communities, especially
Tribal libraries that seek to participate in the E-Rate program.
DATES: Effective September 29, 2023, except for Sec. Sec.
54.503(c)(2)(i)(B) and 54.504(a)(1)(ii), which are delayed
indefinitely. The Commission will publish a document in the Federal
Register announcing the effective date for those sections after
approved by the Office of Management and Budget (OMB) as required by
the Paperwork Reduction Act.
FOR FURTHER INFORMATION CONTACT: Johnny Roddy <a href="/cdn-cgi/l/email-protection#7b1114131515025509141f1f023b1d1818551c140d"><span class="__cf_email__" data-cfemail="d3b9bcbbbdbdaafda1bcb7b7aa93b5b0b0fdb4bca5">[email protected]</span></a> or
Kate Dumouchel <a href="/cdn-cgi/l/email-protection#4922283d2c672d3c24263c2a212c25092f2a2a672e263f"><span class="__cf_email__" data-cfemail="ea818b9e8fc48e9f87859f89828f86aa8c8989c48d859c">[email protected]</span></a> in the Telecommunications Access
Policy Division, Wireline Competition Bureau, 202-418-7400 or TTY: 202-
418-0484. Requests for accommodations should be made as soon as
possible in order to allow the agency to satisfy such requests whenever
possible. Send an email to <a href="/cdn-cgi/l/email-protection#dbbdb8b8eeebef9bbdb8b8f5bcb4ad"><span class="__cf_email__" data-cfemail="3c5a5f5f090c087c5a5f5f125b534a">[email protected]</span></a> or call the Consumer and
Governmental Affairs Bureau at (202) 418-0530.
SUPPLEMENTARY INFORMATION:
This is a synopsis of the Commission's Schools and Libraries
Universal Service Support Mechanism, Federal-State Joint Board on
Universal Service, and Changes to the Board of Directors of the
National Exchange Carrier Association, Inc., Report and Order (Order)
in CC Docket Nos. 02-6, 96-45 and 97-21; FCC 23-56, adopted July 20,
2023 and released July 21, 2023. The Commission also released a
companion Further Notice of Proposed Rulemaking (FNPRM) in CC Docket
Nos. 02-6, 96-45 and 97-21; FCC 23-56, adopted July 20, 2023 and
released July 21, 2023. The FNPRM published August 9, 2023 at 88 FR
53837. The full text of this document is available at the following
internet address: <a href="https://docs.fcc.gov/public/attachments/FCC-23-56A1.pdf">https://docs.fcc.gov/public/attachments/FCC-23-56A1.pdf</a>.
I. Introduction
1. The E-Rate program provides support to ensure that schools and
libraries can obtain affordable, high-speed broadband services and Wi-
Fi equipment to connect today's students and library patrons with next-
generation learning opportunities and services. In January 2022, the
Commission began an initiative to increase Tribal libraries' access to
E-Rate support, recognizing the valuable role that these entities
[[Page 55402]]
serve in providing high-speed internet access to Tribal communities.
The Commission first clarified that Tribal libraries are eligible to
participate in the program and later launched a Tribal Library Pilot
Program to ensure that Tribal library entities have equitable access to
the E-Rate program. Building on those efforts, the Commission initiated
a rulemaking proceeding in February 2023 to seek comment on additional
rule changes to improve Tribal participation in the E-Rate program. The
Commission takes steps to further enhance Tribal applicants' access to
the E-Rate program through program simplifications and other changes
that aim to encourage greater Tribal participation in the program. At
the same time, the Commission takes steps to simplify the E-Rate
processes, where appropriate, for other E-Rate applicants and seek
comment on further possible rule changes suggested by commenters in a
the FNPRM.
II. Discussion
2. Consistent with efforts to encourage more Tribes to participate
in the E-Rate program, the Commission now takes steps to increase
Tribal library eligibility and continue to reduce administrative
burdens in the program. In doing so, the Commission expects to make the
program more accessible to Tribal communities, so that they can
leverage E-Rate funds to improve and meet the broadband connectivity
needs of their communities. Where appropriate, the Commission also
amends the rules to benefit non-Tribal applicants as well, to simplify
and streamline the E-Rate program for all participants. First, the
Commission modifies the rules to allow Tribal college and university
(TCU) libraries to apply for and receive E-Rate support, provided they
are also serving as a public library in their community. Next, the
Commission adopts a number of changes to simplify and improve the E-
Rate application process for Tribal library and other applicants. The
Commission also takes steps to enhance communication with Tribal
Nations by providing additional outreach to Tribal entities and leaders
and by adopting a definition of ``Tribal'' to better identify Tribal
applicants. Finally, the Commission also adds a Tribal representative
to the Universal Service Administrative Company (USAC) Board of
Directors to ensure Tribal input into the administration and oversight
of the federal USF and the universal service support programs. Taken
together, the Commission expects that these measures will provide a
meaningful difference for Tribal communities, especially Tribal
libraries that seek to participate in the E-Rate program. The
Commission also seeks comment on additional rule changes and
clarifications suggested by commenters to further streamline and
improve the application process for all E-Rate applicants. The
Commission considers certain of those suggestions in the FNPRM.
3. Based on a review of the record and consistent with the
authority pursuant to section 254(h) of the Communications Act of 1934,
as amended, the Commission adopts the proposal to make TCU libraries
eligible for E-Rate support when they also serve as a public library in
their community. Commenters that addressed this issue unanimously
supported the rule change and provided evidence about how TCU libraries
offer valuable library services to their communities.
4. The American Library Association (ALA) argues, for example, that
TCU libraries like Ilisagvik College's Tuzzy Consortium Library do not
just serve students, faculty, and staff, but also the wider community,
even providing workforce and career programs to members of the public,
and should therefore be permitted to draw on the E-Rate program support
like any other library. During the April 13, 2023 Tribal Consultation
and Listening Session, the Director of Education for the Inupiat
Community of the Arctic Slope, Mark Roseberry, explained that their TCU
library is responsible for serving their entire Alaskan community and
that the library would greatly benefit from E-Rate funding. The
American Indian Higher Education Consortium (AIHEC) noted that, of the
35 accredited TCUs, 31 open their libraries to the public as the only
public library in their rural communities, acting as a vital resource
in the communities they serve. AIHEC further commented that TCU
libraries serve the public at their own expense despite facing internet
connection costs ranging from 21 to 70 times the national average at
much slower speeds. It noted that TCU libraries, such as Oglala Lakota
College, provide a wide variety of services to the public for free,
offering computers and internet access to community members who would
not otherwise have access to the internet so that they can do homework,
complete research, and find employment. The Commission finds that
permitting TCU libraries that also serve as public libraries to receive
E-Rate support will provide a meaningful benefit to Tribal communities,
particularly where the TCU library may be the only library in its
community. The Commission therefore will consider a TCU library
eligible to apply for E-Rate support if it serves as a public library
by having dedicated library staff, regular hours, and a collection
available for public use in its community.
5. In making this change, the Commission seeks to balance the goal
of improving broadband connectivity on Tribal lands with the duty as a
responsible steward of limited universal service resources. The
Commission therefore adopts limitations to ensure that E-Rate support
is restricted to TCU library use only, and not to support the broader
connectivity requirements of the higher education institution. For
example, TCU libraries cannot request funding for services or equipment
beyond the needs of the library, and any category two equipment must be
installed within the eligible library only and cannot be installed in
another location within the TCU. Commenters suggest that TCU libraries
not be required to perform cost-allocation calculations because they
are burdensome and would potentially deter TCU libraries from seeking
support. To address this concern, accordingly, the Commission will not
require TCU libraries to perform cost-allocation calculations of the
college student and staff usage at the library versus public usage of
bandwidth, as members of the college community are also members of the
public. If, however, the TCU library is seeking E-Rate support for a
portion of the total bandwidth used at the Tribal college or
university, it will be required to calculate the bandwidth usage from
other parts of the Tribal college or university, and include only the
library portion of bandwidth use in its E-Rate funding request. Such
limitations will ensure that E-Rate funding is not improperly provided
to the other TCU buildings like classrooms and dormitories.
6. The State E-Rate Coordinators' Alliance, the Schools, Health,
and Libraries Broadband Coalition, the Consortium for School
Networking, and the State Educational Technology Directors Association
(collectively, the Joint Commenters), in their comments, also suggest
that a TCU library should only be eligible when there is no other
Tribal library accessible to the community. The Commission is not
convinced that this restriction is either necessary or meaningful.
First, there are a very limited number of TCU libraries, which limits
the impact of granting eligibility. It is also administratively
challenging to determine whether another Tribal library is
``accessible'' to the community. Finally, the Commission does not
impose similar restrictions in the E-Rate program to
[[Page 55403]]
limit funding when two or more libraries may be serving the same
community. If an otherwise eligible library is providing services to
the public and members of the public are making use of those services,
the presence of another eligible library accessible to that community
has no impact on the eligibility of either library. For these reasons,
the Commission declines to adopt this restriction at this time.
7. The Commission finds that the action is consistent with its
statutory authority under section 254(h) of the Communications Act to
enhance access to advanced telecommunications and information services
for libraries. In defining which libraries would be eligible for E-Rate
support in 1997, the Commission initially adopted rules barring all
college and university libraries from eligibility so as to guard
against ``institutions of higher learning [that] could assert that
their libraries, and thus effectively their entire institutions, were
eligible for support,'' finding it inconsistent with congressional
intent that funding would flow to an institution of learning only if it
is an elementary or secondary school. Here, the presence of other
program protections, as well as the very limited number of TCUs and the
value of the services they provide to their Tribal communities persuade
the Commission to change the rules and ensure that TCU libraries that
also serve as a public library are not barred from eligibility. Though
one commenter suggested granting eligibility to non-TCU libraries at
small colleges or in rural areas, the Commission does not have a
sufficient record to evaluate this issue and seeks further comment in
the FNPRM.
8. Allowing TCUs that serve as public libraries to participate in
E-Rate is also consistent with the federal government's special
treatment of TCUs. TCUs are unique higher education institutions that
are controlled or chartered by a federally recognized Tribe, governed
by a board of whose members are a majority Indian, and have a majority
of Indians as its student body. Congress provides support for TCUs as
part of its responsibility to provide for Indian education and
facilitate its policy of enabling Tribal control of all matters
relating to the education of Indian students. Congress has stated that
the federal government has a special responsibility, as part of its
overall trust responsibility to Indian Tribes, for the education of
Indian students, and the federal government has long recognized and
``charged itself with moral obligations of the highest responsibility
and trust'' toward Indian Tribes. Accordingly, TCUs are unique higher
education institutions that are entitled to special treatment from the
federal government based on their trust relationship between the United
States and Indian Tribes and their mission of providing education to
Indian students.
9. Building on the Commission proposals in the Tribal E-Rate NPRM,
88 FR 14529, March 9, 2023, the Commission implements several measures
to streamline and simplify the E-Rate application process for Tribal
libraries and other similarly situated applicants. First, the
Commission streamlines the application process for libraries making
small purchases. Next, the Commission increases the category two
discount rate for Tribal library applicants with the most need, helping
to offset the costs of in-building equipment and services. The
Commission also increases the minimum amount of funding that is
available for category two purchases, with the goal of encouraging
Tribal libraries that do not currently participate in the program to
apply for E-Rate support. And finally, the Commission provides guidance
on a number of cost-allocation calculation issues that applicants have
raised to reduce the administrative burden and streamline the E-Rate
program overall. Collectively, the Commission expects these changes to
contribute to the Commission's ongoing goals of both improving and
streamlining the program, and reducing barriers to accessing E-Rate
funding for Tribal applicants.
10. To streamline the application process and simplify what is
required for Tribal and other similarly-situated libraries making low-
cost equipment purchases, the Commission adopts a competitive bidding
exemption for library applicants seeking E-Rate support for category
two equipment or services that total a pre-discounted amount of $3,600
or less in a single funding year. The exemption will simplify the E-
Rate application process because it will allow libraries to purchase
low-cost category two services and equipment without filing an FCC Form
470 to solicit bids and waiting 28 days before entering into a
contract. A category two funding request will be eligible for this
exemption only if the total cost per library is $3,600 or less; and the
cost cannot be averaged across a number of libraries. By adopting this
exemption to the competitive bidding process, the Commission believes
it will be easier for smaller libraries, including Tribal libraries and
libraries serving rural communities, to apply for E-Rate support when
they are making limited purchases of equipment to install or upgrade
their Wi-Fi networks.
11. Commenters broadly supported expanding the existing competitive
bidding exemption to include category two equipment and services, with
suggestions ranging from support for the proposed $3,600 exemption to
eliminating the competitive bidding requirement entirely for Tribal
entities. Because competitive bidding is essential to ensuring cost-
effective purchasing in the E-Rate program, the Commission disagrees
with commenters that suggest eliminating competitive bidding for Tribal
entities entirely or where there is only one commercial service
offering. At the same time, the Commission acknowledges that there are
administrative costs associated with the E-Rate application process
that can be burdensome, particularly for smaller entities. WTA
explained that the low-cost category two services and equipment
requests that small libraries often make also do not attract many bids
in Tribal and rural areas. As commenters highlighted, the competitive
bidding process can be challenging, especially for smaller libraries
that have a limited staff. The Commission believes that adopting a
$3,600 exemption for libraries requesting category two equipment and
services, matching the existing $3,600 competitive bidding exemption
for commercially available high-speed internet access services, strikes
the right balance in simplifying the E-Rate application process, while
retaining competitive bidding requirements where appropriate to ensure
that limited E-Rate resources are spent efficiently and effectively.
The Commission expects that the exemption will provide a meaningful
benefit to Tribal, small, and rural library applicants by making it
easier to receive funding for the Wi-Fi network equipment and services
they need.
12. The Commission emphasizes that Tribal, and other small or rural
library applicants may only request E-Rate support based on the actual
cost of the equipment or service requested. The Commission cautions
library applicants and service providers that cost-effective purchases
are still required under this exemption in order to avoid waste in the
program, and directs USAC to review the costs for equipment and
services and to deny funding for purchases that are determined to not
be cost-effective. In this regard, the Commission notes that it is
generally straightforward to review and compare the costs of category
two equipment, given that it tends to be widely commercially available,
in order to ensure that
[[Page 55404]]
applicants are not seeking reimbursement for wasteful spending. The
Commission also agrees with ALA that libraries may be subject to state
and local requirements that help ensure that these low-cost purchases
are still cost-effective. At present, a competitive bidding exemption
for category two equipment and services costing less than $3,600 allows
the Commission to determine whether this small exemption can help
libraries, but are not precluded from amending this level in the
future. Based on limited record evidence, the Commission declines to
extend the exemption to school entities at this time, but seeks further
comment on this question in the FNPRM.
13. To increase Tribal library access to category two funding, the
Commission increases the maximum discount rate for category two
services for Tribal libraries to 90%, and increases the category two
funding floor to $55,000 for Tribal libraries. The Commission expects
that these changes will help Tribal libraries to better meet their
needs by reducing the share that they must pay for Wi-Fi networks and
increasing the amount of support they can receive. At the same time,
the Commission expects that the budgetary impact to the E-Rate program
will be minimal. Taken together, the Commission expects that these
measures will encourage greater participation in the E-Rate program by
Tribal libraries that will offer a substantial benefit to the
communities they serve, at minimal cost to the overall E-Rate program.
14. Tribal libraries tend to be under-resourced, operating on a
limited budget to meet the diverse needs of their patrons. Many lack
full-time, permanent library staff, much less a dedicated information
technology (IT) staff member, often relying on the same IT staff that
serves the larger Tribal government. While the Commission appreciates
the request by applicants for more support for staffing costs, section
254 of the Communications Act constrains what services are eligible for
E-Rate program support. Given these statutory constraints that limit
the Commission's ability to fund certain costs, the Commission
therefore has tried to identify other options to make internet
connectivity more affordable for Tribal libraries. The Commission
believes that a five percentage point increase to the maximum discount
rate, from 85% to 90%, will make category two services more affordable,
allowing Tribal libraries to stretch their limited budgets to better
meet their community's Wi-Fi network connectivity needs. Commenters
agreed and broadly supported an increase, arguing that a higher
discount rate would make a ``big difference'' to applicants and would
result in important additional savings to Tribal applicants. In an
April 13, 2023 Tribal Consultation and Listening Session, Tribal
participants from Alaska noted that costs are very high in their remote
communities, and that an increase in the discount rate would be
especially helpful. By making category two services more affordable,
the Commission expects that this increase will provide a meaningful
benefit to Tribal libraries, that in turn, will encourage greater
participation in the E-Rate program.
15. Increasing the category two funding floor to $55,000 from the
current floor of $25,000 will also significantly aid Tribal libraries,
where the remoteness of Tribal libraries on Tribal lands makes
purchasing, installing, and maintaining equipment more difficult and,
therefore, more costly. This means that Tribal libraries will be
eligible to receive up to a pre-discount amount of $55,000 in category
two funding over a five-year period, based on the actual costs of the
equipment or services. This increase is consistent with the Washington
State Library suggestion that because category two costs of serving
small remote libraries is approximately $11,000 per year, setting the
funding floor at $55,000 for the five-year budget cycle may be more
appropriate. These amounts were estimated based on a recent state pilot
project to connect a number of single and very small library systems
(fewer than five branches) with a basic Wi-Fi package. The National
Tribal Telecommunications Association claimed that, in many of these
remote and expensive-to-serve communities, the internet connection
available through the Tribal library may be the only broadband
available to community members and recommended increasing the funding
floor to $35,000. Based on this record evidence, the Commission agrees
that an increase in minimum funding levels would help ensure that
sufficient E-Rate funding is available to meet the Wi-Fi network
requirements of Tribal libraries, and sets the category two services
five-year funding floor at $55,000. While the Commission limits the
$55,000 funding floor to Tribal library entities at this time,
evaluating the impact of this change and considering whether to expand
it to all libraries if there is a significant impact on the ability of
libraries to meet the needs of their communities and is likely to
increase participation in the E-Rate program.
16. As part of the efforts to simplify the E-Rate program, the
Tribal E-Rate NPRM sought comment on common cost-allocation issues that
Tribal libraries and other non-Tribal applicants experienced, noting
that cost allocation can be confusing for all E-Rate applicants and may
pose particular challenges for Tribal libraries, especially those
located in multipurpose buildings. Commenters provided a number of
examples where cost allocation can complicate the application process.
The Alaska Department of Education and Early Development and the Alaska
State Library provided an example where a Tribal library is in a
building with a room that is infrequently used as an office by an
ineligible entity. They noted that relaxing the cost allocation
requirements for minimal or occasional use of a single room from an
eligible location could make a real difference for these applicants in
small villages where the library may act as the hub of that community.
Other commenters also provided a number of other scenarios wherein
schools and libraries are required to cost allocate for the minimal
internet usage of a variety of in-building offerings, such as offices,
health kiosks and other healthcare services, childcare, pre-
kindergarten, adult education, and vocational and technical classes
available to the public. These and similar services, though ineligible
themselves for E-Rate support, may provide significant benefit, while
having a minimal impact on the school's or library's total internet
usage and no real impact on schools and libraries' decision-making
process in determining the level of internet service they need. Yet,
schools and libraries that decide to offer these valuable services to
their students, staff, and library patrons are required to conduct
cost-allocation calculations to remove those portions of minimal
ineligible internet usage by these services. In addition, if a school
or library selects a product or service containing an ineligible
component and that product or service is the most cost-effective means
of receiving the eligible component functionality, those ineligible
components are ancillary, and costs do not need to be allocated between
the eligible and ineligible components.
17. The Commission agrees with commenters that conducting cost
allocations to exclude costs associated with minimal ineligible use or
service components can be challenging, especially with regards to
services. As a means of providing a safe harbor, the Commission adopts
a presumption that
[[Page 55405]]
if at least 90% of an applicant's requested internet service is being
used for eligible purposes, the remaining ineligible use of the
internet service will be presumed to be ancillary and, therefore, cost
allocation is not required. This does not mean that the Commission
currently finds healthcare, childcare services, or services for
students under the age of three to be eligible for E-Rate support, nor
does it mean that if less than 90% of an applicant's requested internet
service is being used for eligible purposes that the ineligible portion
cannot be demonstrated to be ancillary. However, the Commission agrees
with commenters that if an applicant selected the most cost-effective
internet service offering to meet its needs, then the minimal
ineligible use of that internet service should be treated as ancillary
and cost allocation is not required. In this regard, the Commission
emphasizes that applicants may request only the amount of bandwidth
needed for eligible use. The Commission therefore determines that
permitting minimal ancillary use, without requiring cost allocation,
will not result in waste or additional costs to the E-Rate program,
because applicants may only request what they need to support eligible
uses. The Commission expects this finding will provide clarity to
applicants about when an ineligible use of internet service can be
presumed to be ancillary, consistent with the existing rules and
without creating an undue risk of waste, fraud, and abuse of limited E-
Rate funds. In turn, the Commission expects it will also simplify the
application process for some applicants.
18. In specific regard to Tribal libraries, if the Tribal library
is selecting the most cost-effective means of receiving the eligible
service without regard to the value of the ineligible components, the
burden to allocate a portion of the cost for any ineligible use may
decrease participation by these small entities. So, with this
presumption, the Commission expects the occasional office use, such as
described by the Alaska Department of Education and Early Education and
Alaska State Library, could be considered ancillary and cost allocation
would not be required, as long as 90% of the requested internet service
is used for the library's eligible purposes. The Commission declines to
fully remove cost allocation requirements for all Tribal libraries
housed in a multipurpose building because of concerns that the
exception could lead to the E-Rate program funding largely ineligible
services--for instance, if a large administrative building has a small
Tribal library located within one room in the building--but the
Commission seeks additional comment on this issue in the companion
FNPRM.
19. Next, the Commission addresses concerns raised by the Joint
Commenters and clarifies that expenses associated with cabling that is
primarily being used to provide broadband connectivity within schools
and libraries need not be cost allocated, provided it is the most cost-
effective means of receiving the eligible service. The Joint Commenters
note that applicants have periodically experienced difficulties
receiving E-Rate support for cabling, or have been required to return
funding based on what equipment the cabling was connected to after
installation. They further explain that these issues typically arise in
the context of installing internal cabling throughout a building that
``provide data transmission to specific points located in the ceilings
or in walls of a school or library building, thus creating a `drop' or
`jack' for various types of equipment to connect to, and then gain
access to the communications network.'' Cabling is conditionally
eligible for E-Rate support, which means that it is ineligible for E-
Rate funding when it is for an ineligible use, such as for a security
camera network or voice network, and the costs must be allocated or
removed from the funding requests. However, the Commission agrees that
it is unworkable to determine conditional eligibility of the cabling on
a drop-by-drop basis, particularly after the fact, depending on what
broadband-enabled device is plugged into the local area network
cabling. Many devices may be connected to a school or library's local
area network, both wired and wirelessly, and the devices connected to a
network may change over time. The Commission therefore finds that the
eligibility determination should be based on the purposes of the
network as a whole, rather than for each cabling ``drop'' or ``jack''.
As such, cabling ``drops'' or ``jacks'' that are part of a local area
network primarily serving an eligible purpose (i.e., distributing
broadband throughout a school or library building) are eligible for E-
Rate and do not require cost allocation. The Commission anticipates
that this will help applicants by providing them certainty to request
category two funding for the cabling needed for their Wi-Fi networks
without concern that in the future an auditor will seek recovery of a
small portion of that E-Rate funding due to a broadband-enabled device,
such as a security camera, being attached at a later date. At the same
time, the Commission expects applicants' category two budgets will
constrain them from requesting more cabling drops than necessary for
their local area networks. Regardless of this clarification, the
Commission reminds applicants that cabling is ineligible to the extent
it is installed specifically for a security camera network or for a
dedicated voice network.
20. Finally, the Commission addresses an issue with the cost
allocation required for shared equipment that is located at a non-
instructional facility, including library administrative buildings.
While NIFs are eligible for category one support, category two support
is generally not available for NIFs unless the equipment is ``essential
for the effective transport of information to or within one or more
instructional buildings of a school or non-administrative library
buildings, or the Commission has found that the use of those services
meets the definition of educational purpose.'' This is generally a
district switch located in an administrative building or data center.
Under the current rules, a school district or library system generally
cannot use any of its budget for category two equipment for a NIF. The
exception for essential, shared equipment still applies, and therefore,
applicants can purchase this type of equipment to be located in a NIF,
but the rules now explicitly state that the applicant must remove the
costs associated with the NIF's use of the shared equipment. As a
result, the Commission has since learned that applicants have been
required to undergo complicated cost-allocation calculations that have
proven to be administratively burdensome, resulting in the removal of a
small fraction of the funding request for the needed equipment,
undercutting the Commission's efforts to streamline the category two
application process. As long as the applicant is choosing the most
cost-effective offering for the shared equipment (e.g., a district
switch) without regard for the NIF's use, the Commission agrees that
the applicant should not be required to cost allocate the NIF's use of
the shared equipment. In recognition of this, the Commission now amends
the rules to no longer require cost allocation to remove the costs
associated with the NIFs' use of the shared equipment in NIFs and
related-library administrative buildings. Removing these requirements
will permit applicants to forego these complex cost-allocation
procedures as they seek to equip their schools and
[[Page 55406]]
libraries with the category two equipment they need to serve their
students and library patrons.
21. The Commission recognizes that there still exist potential
cost-allocation challenges for those Tribal libraries that share space
with other governmental and/or community organizations or services,
often in unique configurations. The Commission therefore directs USAC
to publicly post plain language guidance, approved by the Wireline
Competition Bureau (Bureau), providing examples of Tribal library cost
allocations as they may arise. This could help other Tribal library
applicants understand whether they need to cost allocate in their
particular situation and provide examples on how they should cost
allocate, if required. The Commission also seeks comment in the FNPRM
if there are additional cost-allocation examples that would benefit
from further Commission guidance.
22. To further strengthen the Commission's government-to-government
relationship with Tribal Nations and to improve communication with
Tribal communities to better support Tribal entities applying for and
receiving E-Rate funding, the Commission also makes a number of changes
to the rules and processes. First, the Commission establishes a formal
definition of Tribal within the E-Rate program to better identify those
Tribal applicants seeking E-Rate funding. Second, the Commission amends
the rules to add a Tribal representative to the USAC Board of Directors
who will represent the Tribal community and provide valuable insights
for the administration of the USF and the universal service programs.
Lastly, the Commission directs USAC to provide greater outreach to
Tribal applicants, and all applicants, so as to create a smoother
application process. Taken together, the Commission expects these
actions will strengthen the government-to-government relationship
between the Commission and Tribal Nations, to better support Tribal
libraries and schools, and the communities that they serve.
23. Tribal Definition. To ensure that Tribal entities can be
identified as Tribal when applying for E-Rate support and that Tribal
libraries can receive the increase in category two funding, the
Commission adopts and add the definition for ``Tribal'' in Sec. 54.500
of the Commission's E-Rate rules.
24. This definition of Tribal is modified slightly as compared to
the definition proposed in the Tribal E-Rate NPRM as a result of the
record the Commission received. The Commission chose not to include
those entities for whom ``the majority of students or library patrons
served are Tribal members'' as being Tribal because, as one commenter
noted, this approach would be difficult to demonstrate and administer.
Additionally, after discussion with Tribal representatives during the
May 19, 2023 Tribal Consultation and Listening Session the Commission
determined that both that portion of the definition and the Tribal
lands portion of the definition proposed in the Tribal E-Rate NPRM were
adequately covered by the remaining portion of the proposed definition.
The Commission also included the ``Alaska native village, regional
corporation, or village corporation'' language based upon suggestions
from the May 19 Tribal Consultation and Listening Session,
incorporating language from the definition of Tribal used by the
Institute of Museum and Library Services (IMLS). The Alaska Department
of Education and Early Development and the Alaska State Library in
their joint comments supported this approach. While one commenter
suggested maintaining the present system whereby applicants self-
identify as Tribal, the category two rule changes require
implementation of a definition for Tribal applicants to evaluate their
eligibility for the enhanced benefits. In addition, to better track and
more easily identify Tribal entities and their Tribal affiliation, the
Commission will also collect the applicant's Tribal affiliation as part
of the application process.
25. USAC Board of Directors. Next, the Commission adopts the
proposal to add a new director to the USAC Board of Directors to
represent the interests of Tribal communities. Consistent with the
existing rules governing the USAC Board, the Commission establishes a
new seat on the Board and require Tribal entities to nominate a person
to this seat to represent the interests of Tribal communities. This
idea was first suggested by ALA and the Association of Tribal Archives,
Libraries, and Museums (ATALM) in their joint comments to the 2021
Tribal Libraries NPRM, 86 FR 57097, October 14, 2021, wherein they
explained how such a position could simultaneously provide USAC with
information from the Tribal community and provide the Tribal community
with information directly from USAC. Commenters that addressed the
addition of a Tribal director unanimously supported the proposal.
Participants at the April 13, 2023 Tribal Consultation and Listening
Session were also supportive of this proposal, noting that USAC's Board
would benefit from having a Tribal perspective that could speak to the
unique political and geographical identity of Tribal communities, a
sentiment reiterated by Chief Executive Melanie Benjamin in reply
comments filed by the Mille Lacs Band of Ojibwe. Adding a Tribal
director to the Board allows USAC, the USF, and all the universal
service programs USAC administers to benefit from the perspective that
a Tribal representative will provide.
26. The Commission's existing rules with regards to directors will
also apply to the Tribal director. The Tribal community shall nominate
by consensus a new director. If consensus on a nominee is not reached
or a nominee is not provided, the Chair of the Commission shall select
an individual to be the Tribal director. The Tribal director will also
serve a three-year term but will be eligible to serve for subsequent
terms. In addition, the Commission adds the Tribal director to the
Schools and Libraries Committee so that the Tribal board member can
participate in and assist the Committee in carrying out its
responsibilities and duties regarding the E-Rate program. As with other
Board member positions, the Tribal director may also serve on other
USAC Board committees as well. Since there will now be an even number
of directors on the USAC Board, the Commission directs USAC to make any
necessary changes to its bylaws to ensure procedures are in place to
determine an outcome in the case of a tie.
27. Outreach and Training. The Commission seeks to aid Tribal
library applicants by directing USAC to provide additional training and
outreach throughout the application, invoicing and post-commitment
processes. The Tribal Libraries E-Rate Pilot Program the Commission
tested last year demonstrated the value of one-to-one and cohort
assistance, tailored to the needs of new Tribal library applicants. The
Commission received positive feedback from participants and commenters
alike, who have requested ongoing support to navigate the technical and
administrative processes. The Pilot Program also provided helpful
lessons learned for both USAC and the Commission to enhance future E-
Rate Tribal related trainings. The Commission therefore directs USAC to
establish an enhanced training program that includes both cohort and
on-demand learning opportunities that are targeted to Tribal E-Rate
applicants. Where possible, the Commission encourages USAC to conduct
hands-on, in-person training opportunities, as suggested by ALA.
Enhancing Tribal governments' and libraries' awareness of
[[Page 55407]]
the E-Rate program, as well as program requirements, is integral to the
other changes adopted herein. The Commission also directs USAC to
provide specific support for TCU libraries, which will be eligible for
the E-Rate program for the first time. The Commission encourages USAC
to identify any TCU library applicants and provide them with additional
resources to assist them in the setting up their entity profiles in the
E-Rate Productivity Center (EPC) and through the application and
reimbursement processes.
28. In addition to enhanced training, commenters identified other
outreach opportunities to better support Tribal library applicants.
Specifically, as suggested by ALA in their initial comments, the
Commission directs USAC to identify and conduct outreach to first-time
Tribal applicants (may also be known as billed entities or BENs) to
provide additional information concerning the review process and to
inquire as to any questions the first-time filer or applicants may
have. Commenters also expressed confusion related to how a library,
including a Tribal library, should set up their billed entity when the
respective local government is the entity that pays the bill to
vendors. Consistent with the comments from the Alaska Department of
Education and Early Development and the Alaska State Library, the
Commission directs USAC to post guidance on its website for first-time
Tribal library applicants on how to properly set up a library in EPC
when the Tribal government, rather than the library, is the entity
responsible for paying bills and invoices. The Commission also directs
USAC to publish library-specific guidance, upon approval from the
Bureau, on issues libraries commonly experience while navigating the E-
Rate program.
29. The Commission declines to adopt an extended or separate
application filing window for Tribal libraries, as that could cause
confusion, but directs the Bureau to continue considering requests for
waiver of the FCC Form 471 application filing deadline, recognizing the
special circumstances that Tribal library applicants face when applying
for the E-Rate program. From speaking with Tribal governments and
libraries, the Commission recognizes that the procurement processes for
Tribal libraries can be on different timelines from the procurement
processes for Tribal schools, that there are fewer staff to handle such
filings, and that it can be time-consuming to get approvals for
procurements from Tribal officials. However, commenters suggested that
extending the filing window or creating a wholly separate filing window
would not be helpful at this time and that waiver requests are a better
way to assist Tribal libraries in applying for E-Rate support.
Therefore, recognizing that the E-Rate process may be particularly
challenging for small entities like Tribal libraries, the Commission
urges such entities to file timely waiver requests of the FCC Form 471
application filing deadline and to describe in such requests relevant
special circumstances, such as delays from additional Tribal approvals.
The Commission expects the Bureau to adjudicate any such requests
quickly. In this way, the Commission maintains useful program deadlines
while also providing assistance to Tribal library applicants.
30. Finally, as suggested by commenters, the Commission directs
USAC to develop a mechanism to remind all registered users in EPC three
weeks prior to the invoice filing deadline for each funding request
(FRN) where no requests for reimbursement have been submitted yet, with
instructions on how to file for reimbursement and how to file for a
120-day invoice filing deadline extension. This reminder will offer
applicants and service providers an opportunity to avoid missing the
invoice filing deadline and to avoid imperiling their ability to
receive reimbursement for their E-Rate funding requests. While the
Commission hopes that this reminder will assist applicants and service
providers that may have overlooked the invoice filing deadline,
applicants and service providers are cautioned that it is their
responsibility to comply with the Commission's invoice filing deadline
rule, regardless of whether or not USAC has sent a reminder of the
deadline. The Commission expects this direction to USAC will benefit
all E-Rate applicants, especially Tribal library applicants who may be
new to the E-Rate reimbursement process.
III. Procedural Matters
A. Paperwork Reductions Act Analysis
31. The document contains new information collection requirements
subject to the Paperwork Reduction Act of 1995 (PRA), Public Law 104-
13. It will be submitted to the Office of Management and Budget (OMB)
for review under section 3507(d) of the PRA. OMB, the general public,
and other Federal agencies will be invited to comment on the revised
information collection requirements contained in this proceeding. In
addition, the Commission notes that pursuant to the Small Business
Paperwork Relief Act of 2002, Public Law 107-198, the Commission
previously sought specific comment on how it might further reduce the
information collection burden on small business concerns with fewer
than 25 employees.
B. Congressional Review Act
32. The Commission has determined, and the Administrator of the
Office of Information and Regulatory Affairs, Office of Management and
Budget (OMB), concurs, that this rule is ``non-major'' under the
Congressional Review Act, 5 U.S.C. 804(2). The Commission will send a
copy of the Report and Order to Congress and the Government
Accountability Office pursuant to 5 U.S.C. 801(a)(1)(A).
C. Final Regulatory Flexibility Act
33. As required by the Regulatory Flexibility Act of 1980, as
amended (RFA), an Initial Regulatory Flexibility Analysis (IRFA) was
incorporated in the Tribal E-Rate NPRM. The Commission sought written
public comment on the proposals in the Tribal E-Rate NPRM, including
comment on the IRFA. No comments were filed addressing the IRFA. This
Final Regulatory Flexibility Analysis (FRFA) conforms to the RFA.
34. The Commission is required by section 254 of the Communications
Act of 1934, as amended, to promulgate rules to implement the universal
service provisions of section 254. On May 8, 1997, the Commission
adopted rules to reform its system of universal service support
mechanisms so that universal service is preserved and advanced as
markets move toward competition. Specifically, under the schools and
libraries universal service support mechanism, also known as the E-Rate
Program, eligible schools, libraries, and consortia that include
eligible schools and libraries may receive discounts for eligible
telecommunications services, internet access, and internal connections.
35. Taking steps to close the digital divide is a top priority for
the Commission. The Commission's E-Rate program, formally known as the
schools and libraries universal service support mechanism, provides
vital support to schools and libraries allowing them to obtain
affordable, high-speed broadband services and internal connections,
which enables them to connect students and library patrons to critical
next-generation learning opportunities and services. In this document,
the Commission enhances Tribal access to E-Rate funding by making both
Tribal library specific rule changes and program wide changes that will
help all
[[Page 55408]]
applicants, including Tribal libraries. The Commission modifies its
rules to allow TCU libraries to become eligible for E-Rate funding if
they are serving a public library function in their Tribal community.
The Commission simplifies the program by eliminating competitive
bidding requirements for Tribal libraries seeking funding for $3,600
total or less of category two funding, increasing the category two
maximum discount rate from 85% to 90%, and increasing the category two
funding floor from $25,000 to $55,000 for Tribal libraries. The
Commission also provides guidance related to cost allocation by
establishing a presumption that if at least 90% of an applicant's
internet usage is for an eligible use the remaining ineligible portion
is presumed to be ancillary and, therefore, does not need to be cost
allocated. The Commission clarifies that cabling that is a part of a
local area network is eligible for funding and does not need to be cost
allocated. The Commission also modifies its rules to no longer require
applicants to cost allocate the costs associated with a non-
instructional facility's (NIF) use of shared equipment in NIFs and
related library administrative buildings. The Commission directs USAC
to increase training and outreach to Tribal libraries and to provide
additional support to applicants and registered users of the E-Rate
Productivity Center. Lastly, the Commission amends its rules to adopt a
definition for ``Tribal'' and modifies its rules to add an additional
Director to the USAC Board to represent Tribal communities.
36. There were no comments filed that specifically address the
rules and policies proposed in the IRFA.
37. Pursuant to the Small Business Jobs Act of 2010, which amended
the RFA, the Commission is required to respond to any comments filed by
the Chief Counsel of the Small Business Administration (SBA), and to
provide a detailed statement of any change made to the proposed rule(s)
as a result of those comments.
38. The Chief Counsel did not file any comments in response to the
proposed rule(s) in this proceeding.
39. The RFA directs agencies to provide a description of and, where
feasible, an estimate of the number of small entities that may be
affected by the proposed rules, if adopted. The RFA generally defines
the term ``small entity'' as having the same meaning as the terms
``small business,'' ``small organization,'' and ``small governmental
jurisdiction.'' In addition, the term ``small business'' has the same
meaning as the term ``small business concern'' under the Small Business
Act. A small business concern is one that: (1) is independently owned
and operated; (2) is not dominant in its field of operation; and (3)
satisfies any additional criteria established by the Small Business
Administration (SBA).
40. Small Businesses, Small Organizations, Small Governmental
Jurisdictions. The Commission's actions, over time, may affect small
entities that are not easily categorized at present. The Commission
therefore describes, at the outset, three broad groups of small
entities that could be directly affected herein. First, while there are
industry specific size standards for small businesses that are used in
the regulatory flexibility analysis, according to data from the SBA
Office of Advocacy, in general a small business is an independent
business having fewer than 500 employees. These types of small
businesses represent 99.9% of all businesses in the United States,
which translates to 33.2 million businesses.
41. Next, the type of small entity described as a ``small
organization'' is generally ``any not-for-profit enterprise which is
independently owned and operated and is not dominant in its field.''
The Internal Revenue Service (IRS) uses a revenue benchmark of $50,000
or less to delineate its annual electronic filing requirements for
small exempt organizations. Nationwide, for tax year 2020, there were
approximately 447,689 small exempt organizations in the U.S. reporting
revenues of $50,000 or less according to the registration and tax data
for exempt organizations available from the IRS.
42. Finally, the small entity described as a ``small governmental
jurisdiction'' is defined generally as ``governments of cities,
counties, towns, townships, villages, school districts, or special
districts, with a population of less than fifty thousand.'' U.S. Census
Bureau data from the 2017 Census of Governments indicate there were
90,075 local governmental jurisdictions consisting of general purpose
governments and special purpose governments in the United States. Of
this number, there were 36,931 general purpose governments (county,
municipal, and town or township) with populations of less than 50,000
and 12,040 special purpose governments--independent school districts
with enrollment populations of less than 50,000. Accordingly, based on
the 2017 U.S. Census of Governments data, the Commission estimates that
at least 48,971 entities fall into the category of ``small governmental
jurisdictions.''
43. Small entities potentially affected by the rules herein are
Schools, libraries, Wired Telecommunications Carriers, All Other
Telecommunications, Wireless Telecommunications Carriers (except
Satellite), Wireless Telephony, Wired Broadband internet Access Service
Providers (Wired ISPs), Wireless Broadband internet Access Service
Providers (Wireless ISPs or WISPs), internet Service Providers (Non-
Broadband), Vendors of Infrastructure Development or Network Buildout,
Telephone Apparatus Manufacturing, Radio and Television Broadcasting,
and Wireless Communications Equipment Manufacturing.
44. The purpose of this document is to streamline and simplify
procedures, and improve the E-Rate program processes. As such, the
Commission's rule modifications will reduce the economic impact of
current compliance obligations on small entities. For example, TCU
libraries will not have to perform cost-allocation calculations of the
college student usage at the library versus public usage of bandwidth,
reducing compliance obligations. The changes the Commission makes will
also reduce current compliance obligations by exempting certain small
entity library applicants seeking E-Rate support for category two
equipment or services of $3,600 or less in a single funding year from
the competitive bidding process.
45. New procedures direct USAC to provide specific support for TCU
libraries, outreach to first-time applicants, and invoice reminders for
funding requests, which will ease operations and implementation costs
for applicants and participants that are small entities. Additionally,
the Wireline Competition Bureau will continue to provide leniency to
Tribal library applicants that file waiver requests of the FCC Form 471
application filing deadline, easing the compliance burden for these
small entities. The Commission is requesting additional information for
Tribal affiliation as part of the application process, and this
information request is simple enough that it will not increase the
burden of applying for relevant applicants that are small entities.
Small entities will not be required to hire professionals to comply
with any rule modifications. Although the Commission cannot quantify
the cost of compliance for small entities, the Commission anticipates
the approaches it has taken in this document to streamline and simplify
procedures, and improve the E-Rate program processes will have minimal
or de minimis cost implications and should significantly reduce
compliance requirements for
[[Page 55409]]
small entities that may have smaller staff and fewer resources.
46. The RFA requires an agency to provide, ``a description of the
steps the agency has taken to minimize the significant economic impact
on small entities . . . including a statement of the factual, policy,
and legal reasons for selecting the alternative adopted in the final
rule and why each one of the other significant alternatives to the rule
considered by the agency which affect the impact on small entities was
rejected.''
47. In this document, the Commission takes steps to minimize the
economic impact on small entities with the rule changes that it has
adopted. The Commission made rule changes that will lower the burden
for applicants to the E-Rate program. By granting Tribal libraries an
exemption from the competitive bidding process for category two
purchases totaling under $3,600, the Commission greatly simplifies the
process of receiving funding for these small purchases, making it
easier for Tribal libraries with a small staff to apply for E-Rate. The
Commission also made changes to category two funding for Tribal
libraries, increasing the maximum discount they can be eligible for
from 85% to 90%, and increasing the minimum funding budget, increasing
the funding floor from $25,000 to $55,000 for Tribal libraries. This
will reduce the share that they must pay for Wi-Fi networks, increase
the amount of support that is eligible for reimbursement, and allow
small libraries to have greater access to funding at a lower cost to
themselves.
48. The Commission also clarifies its cost allocation rules to
limit the burden on all applicants, including small entities, adopting
a presumption that if at least 90% of an applicant's requested internet
service is being used for eligible purposes, the remaining ineligible
portion is presumed to be ancillary and, therefore, cost allocation is
not required. The Commission considered but rejected alternatives for
removing cost allocation requirements for Tribal libraries in
multipurpose rooms because of concerns that this would lead to funding
ineligible services. Finally, the Commission has directed USAC to
provide enhanced support to all applicants, with particular attention
being paid to small entities such as small libraries who work with
their small, local governments to secure funding.
49. The Commission will send a copy of the Order, including this
FRFA, in a report to Congress pursuant to the Congressional Review Act.
In addition, the Commission will send a copy of the Order, including
the FRFA, to the Chief Counsel for Advocacy of the Small Business
Administration. A copy of the Order and FRFA (or summaries thereof)
will also be published in the Federal Register.
IV. Ordering Clauses
50. Accordingly, it is ordered, that pursuant to the authority
contained in sections 1 through 4, 201-202, 254, 303(r), and 403 of the
Communications Act of 1934, as amended, 47 U.S.C. 151-154, 201-202,
254, 303(r), and 403, this Report and Order is adopted effective
September 14, 2023.
51. It is further ordered, that pursuant to the authority contained
in sections 1 through 4, 201 through 202, 254, 303(r), and 403 of the
Communications Act of 1934, as amended, 47 U.S.C. 151-154, 201-202,
254, 303(r), and 403, Part 54 of the Commission's rules, 47 CFR part
54, is amended, and such rule amendments shall be effective September
14, 2023, except for Sec. Sec. 54.503(c)(2)(i)(B) and
54.504(a)(1)(ii), which are delayed indefinitely. The Commission will
publish a document in the Federal Register announcing the effective
date for those sections after approved by the Office of Management and
Budget (OMB) as required by the Paperwork Reduction Act.
52. It is further ordered, pursuant to the authority contained in
section 405 of the Communications Act of 1934, as amended, 47 U.S.C.
405, and Sec. 1.429 of the Commission's rules, 47 CFR 1.429, that the
Petition for Reconsideration filed by the State E-Rate Coordinators'
Alliance on January 21, 2020, is dismissed.
53. It is further ordered that the Office of the Secretary,
Reference Information Center, SHALL SEND a copy of the Report and
Order, including the Final Regulatory Flexibility Analysis, to the
Chief Counsel for Advocacy of the Small Business Administration.
54. It is further ordered that the Office of the Managing Director,
Performance Program Management, shall send a copy of this Report and
Order in a report to be sent to Congress and the Government
Accountability Office pursuant to the Congressional Review Act, 5
U.S.C. 801(a)(1)(A).
Federal Communications Commission.
Marlene Dortch,
Secretary.
Final Rules
For the reasons discussed above, the Federal Communications
Commission amends 47 CFR part 54 as follows:
PART 54--UNIVERSAL SERVICE
0
1. The authority citation for part 54 continues to read as follows:
Authority: 47 U.S.C. 151, 154(i), 155, 201, 205, 214, 219, 220,
229, 254, 303(r), 403, 1004, 1302, 1601-1609, and 1752, unless
otherwise noted.
0
2. Section 54.500 is amended by adding, in alphabetical order the
definition of ``Tribal'' to read as follows:
Sec. 54.500 Terms and definitions.
* * * * *
Tribal. An entity is ``Tribal'' for purposes of E-Rate funding if
it is a school operated by or receiving funding from the Bureau of
Indian Education (BIE), or if it is a school or library operated by any
Tribe, Band, Nation, or other organized group or community, including
any Alaska native village, regional corporation, or village corporation
(as defined in, or established pursuant to, the Alaska Native Claims
Settlement Act (43 U.S.C. 1601 et seq.)) that is recognized as eligible
for the special programs and services provided by the United States to
Indians because of their status as Indians.
* * * * *
0
3. Section 54.501 is amended by revising paragraph (b)(2) and adding
paragraph (b)(4) to read as follows:
Sec. 54.501 Eligible recipients.
* * * * *
(b) * * *
(2) Except as provided in paragraph (b)(4) of this section, a
library's eligibility for universal service funding shall depend on its
funding as an independent entity. Only libraries whose budgets are
completely separate from any schools (including, but not limited to,
elementary and secondary schools, colleges, and universities) shall be
eligible for discounts as libraries under this subpart.
* * * * *
(4) A Tribal college or university library that serves as a public
library by having dedicated library staff, regular hours, and a
collection available for public use in its community shall be eligible
for discounts under this subpart.
* * * * *
0
4. Section 54.502 is amended by revising paragraphs (d)(4) and (6) to
read as follows:
Sec. 54.502 Eligible Services.
* * * * *
(d) * * *
(4) Funding floor. Each eligible school and library shall be
eligible for support for category two services of at least a
[[Page 55410]]
pre-discount price of $25,000 over five funding years. Tribal libraries
shall be eligible for support for category two services of at least a
pre-discount price of $55,000 over five funding years.
* * * * *
(6) Non-instructional buildings. Support is not available for
category two services provided to or within non-instructional school
buildings or separate library administrative buildings unless those
category two services are essential for the effective transport of
information to or within one or more instructional buildings of a
school or non-administrative library buildings, or the Commission has
found that the use of those services meets the definition of
educational purpose, as defined in Sec. 54.500. When applying for
category two support for eligible services within a non-instructional
school building or library administrative building, the applicant shall
not be required to deduct the cost of the non-instructional building's
use of the category two services or equipment.
* * * * *
0
5. Section 54.503 is amended by revising paragraph (e) to read as
follows:
Sec. 54.503 Competitive bidding requirements.
* * * * *
(e) Exemption to competitive bidding requirements. (1) An applicant
that seeks support for commercially available high-speed internet
access services for a pre-discount price of $3,600 or less per school
or library annually is exempt from the competitive bidding requirements
in paragraphs (a) through (c) of this section.
(i) internet access, as defined in Sec. 54.5, is eligible for this
exemption only if the purchased service offers at least 100 Mbps
downstream and 10 Mbps upstream.
(ii) The Chief, Wireline Competition Bureau, is delegated authority
to lower the annual cost of high-speed internet access services or
raise the speed threshold of broadband services eligible for this
competitive bidding exemption, based on a determination of what rates
and speeds are commercially available prior to the start of the funding
year.
(2) A library applicant that seeks support for category two
services for a total pre-discount price of $3,600 or less per library
annually is exempt from the competitive bidding requirements in
paragraphs (a) through (c) of this section. Applicants must select a
cost-effective service offering, based on the price of the equipment or
services.
0
6. Delayed indefinitely, amend Sec. 54.503 by revising paragraphs
(c)(2)(i)(B).
Sec. 54.503 Competitive bidding requirements.
* * * * *
(c) * * *
(2) * * *
(i) * * *
(B) The libraries or library consortia eligible for assistance from
a State library administrative agency under the Library Services and
Technology Act of 1996 do not operate as for-profit businesses and,
except for the limited case of Tribal colleges or universities, have
budgets that are completely separate from any school (including, but
not limited to, elementary and secondary schools, colleges, and
universities).
* * * * *
0
7. Delayed indefinitely, section 54.504 is amended by revising
paragraph (a)(1)(ii) to read as follows:
Sec. 54.504 Requests for services.
(a) * * *
(1) * * *
(ii) The libraries or library consortia eligible for assistance
from a State library administrative agency under the Library Services
and Technology Act of 1996 do not operate as for-profit businesses and,
except for the limited case of Tribal college or universities, their
budgets are completely separate from any school (including, but not
limited to, elementary and secondary schools, colleges, and
universities).
* * * * *
0
8. Section 54.505 is amended by revising paragraph (c) introductory
text and adding paragraph (g) to read as follows:
Sec. 54.505 Discounts.
* * * * *
(c) Matrices. Except as provided in paragraphs (d), (f), and (g) of
this section, the Administrator shall use the following matrices to set
discount rates to be applied to eligible category one and category two
services purchased by eligible schools, school districts, libraries, or
consortia based on the institution's level of poverty and location in
an ``urban'' or ``rural'' area.
* * * * *
(g) Tribal Library Category Two Discount Level. For the costs of
category two services, Tribal libraries at the highest discount level
shall receive a 90 percent discount.
0
9. Section 54.701 is amended by revising paragraph (b) to read as
follows:
Sec. 54.701 The Administrator of universal service support
mechanisms.
* * * * *
(b)(1) The Administrator shall establish a twenty (20) member Board
of Directors, as set forth in Sec. 54.703. The Administrator's Board
of Directors shall establish three Committees of the Board of
Directors, as set forth in Sec. 54.705:
(i) The Schools and Libraries Committee, which shall oversee the
schools and libraries support mechanism;
(ii) The Rural Health Care Committee, which shall oversee the rural
health care support mechanism; and
(iii) The High Cost and Low Income Committee, which shall oversee
the high cost and low income support mechanism.
(2) The Board of Directors shall not modify substantially the power
or authority of the Committees of the Board without prior approval from
the Federal Communications Commission.
* * * * *
0
10. Section 54.703 is amended by revising paragraph (b) introductory
text and paragraph (b)(12), redesignating paragraph (b)(13) as
paragraph (b)(14), and adding a new paragraph (b)(13) to read as
follows:
Sec. 54.703 The Administrator's Board of Directors.
* * * * *
(b) Board composition. The independent subsidiary's Board of
Directors shall consist of twenty (20) directors:
* * * * *
(12) One director shall represent state consumer advocates;
(13) One director shall represent Tribal communities; and
* * * * *
0
11. Section 54.705 is amended by redesignating paragraphs (a)(2)(iv)
and (v) as paragraphs (a)(2)(v) and (vi), and adding a new paragraph
(a)(2)(iv) to read as follows:
Sec. 54.705 Committees of the Administrator's Board of Directors.
(a) * * *
(2) * * *
(iv) One Tribal community representative;
* * * * *
[FR Doc. 2023-16984 Filed 8-14-23; 8:45 am]
BILLING CODE 6712-01-P
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</html>Indexed from Federal Register on August 15, 2023.
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