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                                Before the
                      Federal Communications Commission
                          Washington, D.C. 20554
                                                  
In the Matter of                        )
                                   )
Request for Review                      )
of the Decision of                      )
the Universal Service Administrator by       )                        
                                        )
Greenfield School District                   )    File No. SLD-7767   
Greenfield, Wisconsin                        )                   
                                   )
Federal-State Joint Board on Universal Service    )    CC Docket No. 96-45
                                   )
Changes to the Board of Directors            )    CC Docket No. 97-21
of the National Exchange Carrier             )    
Association, Inc.                       )
                                   
                             ORDER

     Adopted:  November 22, 1999             Released:  November 22, 1999
                    
By the Common Carrier Bureau:

     1.   The Bureau has under consideration a Letter of Appeal filed by the Greenfield
School District (Greenfield) on July 2, 1999, seeking review of a decision issued by the Schools
and Libraries Division (SLD) of the Universal Service Administrative Company (Administrator). 
Greenfield seeks review of the SLD's denial of its application for discounts under the schools and
libraries universal service support mechanism.  For the reasons set forth below, we grant the
Letter of Appeal to the extent provided herein.

     2.   Under the schools and libraries universal service support mechanism, eligible
schools, libraries, and consortia that include eligible schools and libraries, may apply for discounts
for eligible telecommunications services, Internet access, and internal connections.  

     3.   By letter dated January 26, 1999, the SLD denied Greenfield's request for
discounts.  Greenfield appealed the SLD's decision by letter dated February 12, 1999.  On June 7,
1999, the SLD affirmed its initial funding decision. The Administrator's Decision on Appeal
indicated that services listed by Greenfield as Internet access included some internal connection
services.  It further indicated that, where a particular funding request included some internal
connections, the entire funding request was recategorized by SLD as internal connection services
so as to "avoid the possibility of treating priority two services (internal connections) as priority
one services (telecommunications, dedicated and Internet access services)."  Because internal
connections are funded only when a discount level of 70 percent or above has been shown, these
services could not be supported for this funding period. 
 
     4.   In its request for review of the SLD's decision that is now before us, Greenfield
requests reimbursement for the monthly Internet access fees included in the funding request
number (FRN) that SLD recategorized as priority two services. 

     5.   In Williamsburg-James City, the Commission determined that, in cases where, as
here, an FCC Form 471 was submitted before the establishment of the Commission's rules of
priority in the Fifth Reconsideration Order, applicants could not have been aware of the need to
segregate carefully their service requests.  Consequently, the Commission held that, in appeals
involving such circumstances, applications should be remanded to SLD for reprocessing, with
priority one and priority two services being considered separately on their own merits.  We,
therefore, remand Greenfield's application and direct SLD to issue a new funding commitment
decision letter based on the originally submitted FCC Form 471 and any further consultations with
the applicant that may be necessary.       

     6.   ACCORDINGLY, IT IS ORDERED, pursuant to authority delegated under
sections 0.91, 0.291, and 54.722(a) of the Commission's rules, 47 C.F.R.  0.91, 0.291, and
54.722(a), that the Letter of Appeal filed by the Greenfield School District on July 2, 1999 IS
GRANTED to the extent provided herein. 

     7.    IT IS FURTHER ORDERED that the Administrator IS DIRECTED to
implement the decision herein.                    
                              
               
                              FEDERAL COMMUNICATIONS COMMISSION


                              Yog R. Varma
                              Deputy Chief, Common Carrier Bureau