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FCC Issues Final Rule on Schools and Libraries E-Rate Program Modernization(Targeted News Service Via Acquire Media NewsEdge) Targeted News Service WASHINGTON, Aug. 20 -- The Federal Communications Commission published the following rule in the Federal Register: Modernization of the Schools and Libraries "E-Rate" Program A Rule by the Federal Communications Commission on 08/19/2014 Publication Date: Tuesday, August 19, 2014 Agency: Federal Communications Commission Dates: Effective September 18, 2014, except for amendments in Sec. Sec. 54.502(b)(2), (3), and (5), 54.503(c), 54.504(a) and (f), 54.507(d), 54.514(a), 54.516(a) through (c), and 54.720(a), which are subject to the Paperwork Reduction Act and will become effective upon announcement by the FCC in the Federal Register of OMB approval of the subject information collection requirements; and except for amendments in Sec. Sec. 54.500, 54.501(a)(1), 54.502(a), 54.507(a) through (c) and (e) through (f), 54.516, and 54.570(b) and (c), which shall become effective on July 1, 2015; and amendments in Sec. Sec. 54.504(f)(4) and (5) and 54.514(c), which shall become effective on July 1, 2016. Effective Date: 09/18/2014 Entry Type: Rule Action: Final rule. Document Citation: 79 FR 49159 Page: 49159 -49204 (46 pages) CFR: 47 CFR 54 Agency/Docket Numbers: WC Docket No. 13-184 FCC 14-99 Document Number: 2014-18937 Shorter URL: https://federalregister.gov/a/2014-18937 Action Final Rule. Summary In this document, the Federal Communications Commission (Commission) takes major steps to modernize the E-rate program (more formally known as the schools and libraries universal service support mechanism). Building on the comments the Commission received in response to the E-rate Modernization NPRM, and the E-rate Modernization Public Notice, as well as recommendations from the Government Accountability Office (GAO), the program improvements the Commission adopts as part of this document begin the process of reorienting the E-rate program to focus on high-speed broadband for our nation's schools and libraries. DATES: Effective September 18, 2014, except for amendments in sections 54.502(b)(2), (3), and (5), 54.503(c), 54.504(a) and (f), 54.507(d), 54.514(a), 54.516(a) through (c), and 54.720(a), which are subject to the Paperwork Reduction Act and will become effective upon announcement by the FCC in the Federal Register of OMB approval of the subject information collection requirements; and except for amendments in sections 54.500, 54.501(a)(1), 54.502(a), 54.507(a) through (c) and (e) through (f), 54.516, and 54.570(b) and (c), which shall become effective on July 1, 2015; and amendments in sections 54.504(f)(4) and (5) and 54.514(c), which shall become effective on July 1, 2016. FOR FURTHER INFORMATION CONTACT: James Bachtell or Kate Dumouchel, Wireline Competition Bureau, Telecommunications Access Policy Division, at (202) 418-7400 or TTY: (202) 418-0484. SUPPLEMENTARY INFORMATION: This is a summary of the Commission's Report and Order, in WC Docket No. 13-184; FCC 14-99, adopted on July 11, 2014 and released on July 23, 2014. The full text of this document is available for public inspection during regular business hours in the FCC Reference Center, Room CY-A257, 445 12th Street SW., Washington, DC 20554. Or at the following Internet address: http://www.fcc.gov/document/fcc-releases-e-rate-modernization-order. The Further Notice of Proposed Rulemaking (FNPRM) that was adopted concurrently with the Report and Order is published elsewhere in this issue of the Federal Register. I. Introduction 1. In this Report and Order we take major steps to modernize the E-rate program. In so doing, we recognize E-rate's extraordinary success as the federal government's largest education technology program. Over the last 17 years, the E-rate program has helped to ensure that our nation's schools and libraries are connected to the digital world. At the same time, we acknowledge and embrace our responsibility to make sure the program evolves as the needs of schools and libraries evolve. In particular, the E-rate program must evolve to focus on providing support for the high-speed broadband that schools need to take advantage of bandwidth-intensive digital learning technologies and that libraries need to provide their patrons with high-speed access to the Internet on mobile devices as well as desktops. Access to high-speed broadband is crucial to improving educational experiences and expanding opportunities for all of our nation's students, teachers, parents and communities. Building on the comments we received in response to the E-rate Modernization NPRM, 78 FR 51597, August 20, 2013, and the E-rate Modernization Public Notice, 79 FR 13300, March 10, 2014, as well as recommendations from the GAO, the program improvements we adopt as part of this Report and Order begin the process of reorienting the E-rate program to focus on high-speed broadband for our nation's schools and libraries. 2. The record clearly demonstrates the power of high-speed broadband connectivity to transform learning. High-speed broadband, to and within schools, connects students to cutting-edge learning tools in the areas of science, technology, engineering and math (STEM) education, necessary for preparing them to compete in the global economy. High-speed broadband also creates opportunities for customized learning, by giving our students and their teachers access to interactive content, and to assessments and analytics that provide students, their teachers, and their parents real-time information about student performance while allowing for seamless engagement between home and school. Finally, high-speed broadband expands the reach of our schools and creates opportunities for collaborative distance learning, providing all students access to expert instruction, no matter how small the school they attend or how far they live from experts in their field of study. 3. High-speed broadband is also a critical component of 21st Century libraries. In many communities, libraries are the only source of free, publicly available Internet access. As a result, high-speed broadband at libraries provides library patrons, many of whom have no other Internet access, the ability to participate in the digital world. Broadband services at libraries are crucial for enabling and fostering life-long learning, and they enable students at all stages of their education to perform research and complete their homework. Broadband at libraries is also crucial for students studying for and taking their General Educational Development (GED) tests and allows students to take and study for college and graduate-level courses. Broadband at libraries enables patrons to seek and apply for jobs; learn new skills; interact with federal, state, local, and Tribal government agencies; search for health-care and other crucial information; make well-informed purchasing decisions; and stay in touch with friends and family. 4. In adopting this Report and Order, we recognize the critical role the E-rate program plays in the lives of our students and communities and the importance of ensuring that the program supports sufficient, equitable, and predictable support for high-speed connectivity to and within schools and libraries. It is a crucial part of the Commission's broader mandate to further broadband deployment and adoption across our nation. We therefore adopt a number of the proposals made in the E-rate Modernization NPRM and begin the process of re-focusing the E-rate program on providing the necessary support to ensure our nation's schools and libraries have affordable access to high-speed broadband. 5. To maximize the benefits of the E-rate program to our nation's schools and libraries, we adopt the proposal made in the E-rate Modernization NPRM to establish clear goals and measures for the program. The three goals we adopt for the E-rate program are: (1) Ensuring affordable access to high-speed broadband sufficient to support digital learning in schools and robust connectivity for all libraries; (2) maximizing the cost-effectiveness of spending for E-rate supported purchases; and (3) making the E-rate application process and other E-rate processes fast, simple and efficient. We also adopt approaches for measuring our success towards meeting those goals. 6. In addition, we adopt the following updates to the E-rate program aimed at furthering each of those goals: To ensure affordable access to high-speed broadband sufficient to support digital learning in schools and robust connectivity for all libraries, we: a-- Set an annual funding target of $1 billion for funding for internal connections needed to support high-speed broadband within schools and libraries; a-- test a more equitable approach to funding internal connections for applicants who seek support in funding years 2015 and 2016; and a-- reorient the E-rate program to focus on supporting high-speed broadband by phasing down support for voice services and eliminating support for other legacy services. To maximize the cost-effectiveness of spending for E-rate supported purchases, we: a-- Adopt transparency measures to encourage sharing of cost and connectivity data; a-- encourage consortia purchasing; and a-- emphasize that providers must offer the lowest corresponding price. To make the E-rate application process and other E-rate processes fast, simple and efficient, we: a-- Streamline the application process by: Simplifying the application process for multi-year contracts; exempting low-cost, high-speed business-class broadband Internet access services from the competitive bidding requirements; easing the signed contract requirement; removing the technology plan requirement; requiring electronic filings; and enabling direct connections between schools and libraries. a-- Simplify discount rate calculations by: Requiring a district-wide discount rate; modifying the definition of urban and rural; addressing changes to the national school lunch program (NSLP); and modifying the requirements for applicants using surveys. a-- Simplify the invoicing and disbursement process by: Allowing direct invoicing by schools and libraries; and adopting an invoicing deadline. a-- Create a Tribal consultation, training and outreach program. a-- require the filing of all universal service appeals initially with USAC. a-- direct USAC to adopt additional measures to improve the administration of the program by: Speeding review of applications, commitment decisions and disbursements; modernizing USAC's information technology systems; adopting open data policies; improving communications with E-rate applicants and providers. a-- Protect against waste, fraud, and abuse by: Extending the document retention deadline; and ensuring auditors and investigators access to an applicant's premises upon request. 7. The most fundamental step we take today is to overhaul the support system for internal connections, including the deployment of high-speed Wi-Fi in classrooms and libraries nationwide. When the E-rate program was created, the idea of wired connections to classrooms was revolutionary. Today, students and teachers can and do take their devices with them wherever they go, which means they need to have Internet connectivity throughout their schools. Likewise, in 1997, desktop computers offered state of the art connectivity in libraries. Now, library patrons bring their own devices and use those that belong to their libraries. By modernizing the E-rate program to expand schools and libraries access to more predictable E-rate funding that is sufficient to meet their needs for Wi-Fi connectivity, and other internal broadband connections. 8. Of course, Wi-Fi in classrooms and libraries requires broadband connectivity to schools and libraries. We therefore also take steps in this Report and Order to ensure that all eligible schools and libraries will continue to be able to receive E-rate support to purchase broadband services to their buildings. 9. At the same time, we are mindful of the importance of continuing to improve the E-rate program in order to achieve the goals we adopt herein. In order to ensure the E-rate program evolves to meet the connectivity needs of our nation's schools and libraries, we leave the record open in this proceeding to allow us to address in the future those issues raised in the E-rate Modernization NPRM that we do not address today. We also issue an accompanying Further Notice of Proposed Rulemaking (FNPRM) to seek comment on some additional issues. [*Federal RegisterVJ 2014-08-19] For more information about Targeted News Service products and services, please contact: Myron Struck, editor, Targeted News Service LLC, Springfield, Va., 703/304-1897; [email protected]; http://targetednews.com. TNS 22VistaJ-140819 gv-1172751 (c) 2014 Targeted News Service |