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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

Flour Bluff Independent School District
Corpus Christi, Texas

Federal-State Joint Board on Universal Service

Changes to the Board of Directors
Of the National Exchange Carrier
Association, Inc. 
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File No. SLD-122142


CC Docket No. 96-45

CC Docket No. 97-21



                             ORDER

   Adopted: February 28, 2001           Released: March 1, 2001

By the Common Carrier Bureau:

1.     The Common Carrier Bureau has under consideration a Request for Review filed by
the Flour Bluff Independent School District (Flour Bluff), Corpus Christi, Texas, on April 13,
2000, seeking review of a decision issued by the Schools and Libraries Division (SLD) of the
Universal Service Administrative Company (Administrator).  Flour Bluff 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 deny the Request for Review.  
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.  In order to
receive discounts on eligible services, the Commission's rules require that the applicant submit
to the Administrator a completed FCC Form 470, in which the applicant sets forth its
technological needs and the services for which it seeks discounts.  Once the applicant has
complied with the Commission's competitive bidding requirements and entered into agreements
for eligible services, it must file an FCC Form 471 application to notify the Administrator of the
services that have been ordered, the carriers with whom the applicant has entered into an
agreement, and an estimate of funds needed to cover the discounts to be given for eligible
services.  Approval of an application is contingent upon the filing of FCC Form 471, and
funding commitment decisions are based on information provided by the school or library in this
form.
3.     By letter dated October 12, 1999, SLD denied Flour Bluff's application for discounts
relating to Funding Request Number 176716.  Specifically, SLD concluded that "30% or more
of this FRN includes a request for E-MAIL ACCOUNT FEES which is an ineligible
product(s)/service(s) based on program rules."  By letter dated March 31, 2000, SLD denied an
appeal of this decision filed by Flour Bluff.  Flour Bluff challenges this decision, indicating that
it does not pay its service provider, Education Service Center, for e-mail service. 
4.     We have reviewed Flour Bluff's appeal and conclude that SLD properly denied
funding in accordance with program rules.  On appeal, Flour Bluff argues that it does not receive
or pay for e-mail service accounts from its service provider.  Under program rules, e-mail service
is eligible for support only when it is bundled within Internet access and does not have its own
associated cost.  Therefore, account fees for individual user access to e-mail service provided
by the Internet provider are ineligible for support.  
5.     In documentation supporting its original application, however, Flour Bluff indicates
that its funding request seeks support for "IP Address/Email Accounts."  Based on this
documentation, we find that SLD reasonably concluded that Flour Bluff's request should be
denied under program rules.  Nothing in the original documentation submitted with the
application supports Flour Bluff's contention that it does not pay for e-mail service.  We decline
to overturn SLD's decision when the applicant effectively revises its application on appeal.  In
light of the thousands of applications that SLD must review and process each year, we find that it
is administratively necessary to require an applicant to be responsible for providing complete and
accurate information in its FCC Form 471 upon which its ultimate funding is dependent.
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 Request for Review filed by the Flour Bluff Independent School District, Corpus Christi,
Texas, April 13, 2000 IS DENIED.

                              FEDERAL COMMUNICATIONS COMMISSION
                              
                              Carol E. Mattey                                                         
                              Deputy Chief, Common Carrier Bureau