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(1) (a) (i) 1) a)6*=(78 l:*78f "i~'^:DTddDDDd4D48ddddddddddDDd||||DXp||dp||ppL8LTdDddXdX8dd88X8ddddLL8dXXXLP8PlD4lTDDD4DDDDDDdDd8|d|d|d|d|dX|X|X|X|XD8D8D8D8dddddddddpX|ddddpXd|d|d|d|dXXlXx|X|X|X|XdddldldD8DdDDDddllXp8pHpDp@p8dtdddd|L|L|LdLdLdLllpHp8pTddddddplpLpLpLdpDddLpDpdx4ddC,CWddddddddddddddddddddddddddddddddddddddddNHxxHhdLdddddd8@d<@d<DDppdDDxddxHxxHkddDpd<"dxtldxxd29 Kn0 K2K5KO7"i~'^09]SS999S]+9+/SSSSSSSSSS99]]]Sxnxxng?Snxgx]nxxxxn9/9aS9S]I]I9S]/9]/]S]]I?9]SxSSIC%CW9+Wa999+999999S9]/xSxSxSxSxSxxInInInInI>/>/>/>/x]SSSSx]x]x]x]xSxSx]SSxSxSf]xSxSxSxIxIxWxIx{nInInInISSSWS]a?/?]?9?]]WW]n/nKn9nCn/x]xx]x]SSxxIxIxI]?]?]?]WnUn9nax]x]x]x]x]x]xxWnInInIx]n9x]]?n9xSz+SS8-8WuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxN<.<<<<><q*"xxxxWWxxxWWkkxxx;PT!$H+>+>+>+!!!!T8T6T6T6T6Q6Q6Q6Q6H6L+P2T6T6H6P6;6H,L0H,D,D,J0J0J<>,>0>0>,H2P0P0P0P0T8T8!0800!8F600H8>>$<0$>E0Q6J2Q6Q6J2Q6bLH6@,C.@,P4<0T800E0H6<22WddddddddddddddddddddddddddddddddddddddddddddddddxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxNHHH200$++00]000QQ0!8220Q!++0Qdd00<&C,T2H,!H,C8Z8T,C2T,H<;2<22E,H,CT!0THH<,<<<\4  pG;<?xxx,<x6X@`7X@?xxxXD[x6X@B X@z8wC;,\|Xw PE37XP{6jC:,ẽXj9 xOG;X\|X >(#,%Kh>*f9 xr G;hXR&HHHXD!,H6X@B h@}V"G($,\}hG PE37hP~DSI,6\  P6G;PDSI,d4  pG;RdW,d\  P6G;PRdW,ׄ4  pG;\OdW,%*f9 xr G;XQdW,e<9 xOG;lu2d8+,Cdjp P7PlF<!,Z,<jp P7,P&u2`8(,G`4@ x7XIYM,F \  P6G; PIYM,\ 4  pG; \I4!,%^,4*f9 xr G;,X#g84,>gL@ PI37PO>!,,>L@ PI37,P"i~'K2^2>>^V))>^,>>>>>>>>>>d^d.^P9EF84NL)E6]QV4V>4>PN^EA<+,+22.6.80060R6886$#!60F02',2,d>>>>>>>>>>>>2>;P.P.P.P.P.bJE.80808080Q6V8V8V8V8P6P6P6P6A2P.L:V8V8A2L848J6P>J6F6F6E>E>HB:6>>>>:6J:N>N>N>N>L>L>>>>>;E0>>E>66">>6$<#H:JH:Q>L:V>dT@$@$>>@24#@2>>>(>$>>P6H:P>P>H:P6^FA><0<&<0F>>>Q>>>>>A2B22WddddddddddddddddddddddddddddddddddddddddddddddddxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxNHHH2>>...>>T>''^^>'.22>^'66>^dd>><^dHdJ26H2>9HNAddHHHHHHHHHHddddd6dHHHHdddddddddddddddddddHHddddddRC+V9H946;;,>.A6QFE0PEJLP8L>VAAJ68LEEI>>>>PL>>>AAAJ92,!ddhrZz.lZrrvvnFFZ8!Z~ yO,(ԍ We note that the Schools and Libraries Division has established a reserve fund to ensure that sufficient funds will be available for any appeals that may be granted by the Administrator or the Commission. We reiterate that, while the Commission and the SLD are confident that sufficient funds will be available to fund all appeals, we believe that it is necessary to adopt additional funding priority rules setting forth how funds will be allocated in the unlikely event that sufficient funds are not available at the appeal phase.> Consistent with the Commission's funding priority rules, as clarified above, we propose that, when a filing window is in effect, the Administrator shall first fund all priority one service appeals that have been granted and, if sufficient funds remain, shall allocate funds to internal connection appeals at each descending single discount percentage, e.g., ninety percent, eighty Xr2nine percent, and so on.+r ~ {O-(ԍ We note that, in the Third Report and Order, the Commission adopted a "window" period whereby all  {O(applications filed during the window would be treated as if simultaneously received. FederalState Joint Board  {O (on Universal Service, Third Report and Order, CC Docket No. 9645, 12 FCC Rcd 22485 at 22486, para. 2  {O!((1997). Previously, the application process was to be conducted on a "firstcome firstserved" basis only. Id. Under the Commission's rules, the Administrator has the authority to establish additional filing periods as it deems necessary. 47 C.F.R.  54.507(c). The Administrator, however, may determine in a particular funding year that a filing window is not necessary.+ In no case, however, would an applicant be able to receive support for internal connections below the discount level for which an applicant received support in the original application process. That is, if the Administrator were only able to provide support during the original application process to applicants at a discount level of seventy percent or above, an applicant would not be able to receive support on appeal for an internal"R ,l(l(,,J" connection request at a sixtynine percent discount level. To the extent funds do not exist to fund all appeals granted within a single discount percentage, we propose that the Administrator allocate the remaining support on a pro rata basis within that single discount percentage. We seek comment on this proposal.  XQ2 10. ` ` If the Administrator determines that sufficient funds are not available to fund all priority one service appeals, we propose that the Administrator allocate the available funds to all appeals for priority one services, i.e., telecommunications services and Internet access on a pro rata basis, irrespective of the discount level associated with the request. We believe  X2that this is the best approach in light of both the funding priority rules, which grant first priority to requests for telecommunications services and Internet access, and the Commission's  X 2goal of ensuring that every eligible school and library receive some assistance. ~ {O (ԍ See Fifth Reconsideration Order, 13 FCC Rcd at 1493738, para. 35, 14939, para. 38; see also 47 C.F.R.  54.507(g)(1)(i). We seek comment on this proposal. In particular, we seek comment on how this proposed allocation method should be implemented in light of our appeal procedures, which permit applicants to seek review of decisions issued by the Administrator from either the Administrator or the Commission. We tentatively conclude that, to ensure an equitable distribution of funds to all priority one service appeals, the Administrator should wait until a final decision has been issued on all priority one service appeals before it allocates funds on a pro rata basis. We seek comment on this tentative conclusion. We also seek comment on whether it would be more appropriate for the Commission to permit the Administrator to use funds collected in the next funding year to fund priority one service appeals for the prior year. While we recognize that using funds collected for the next funding year may deplete the available funds for that year, we nevertheless seek comment on whether there are any advantages to such an approach. We also invite parties to submit alternative proposals that would enable the Administrator to distribute fairly funds for appeals in the event that sufficient funds are not available to fund all priority one service appeals.  XO2 11. ` ` We recognize that applicants must complete the installation of internal connections by a date certain for each funding year. We tentatively conclude that an applicant would be required to complete the installation of internal connections that received support pursuant to an appeal within six months from the date that the final decision on appeal is issued. We seek comment on this tentative conclusion.  X}2 12. ` ` Finally, pending the outcome of this Further Notice, we find that, if the Administrator is able to determine that sufficient funds are available to provide support for all priority one service appeals that may be granted for the first funding year, the Administrator may allocate support immediately to such appeals. To the extent funds remain, and the Administrator is able to determine that sufficient funds are available to allocate funds to all internal connection appeals down to the seventy percent discount level, i.e., the lowest discount level for which applicants received support during the original funding period, the Administrator may allocate support immediately to such internal connection appeals that may be granted. "B$",l(l(,,@$"Ԍ X2 VI.FILING PROCEDURES  X2 13. ` ` Pursuant to sections 1.415 and 1.419 of the Commission's rules, 47 C.F.R.   X21.415, 1.419, interested parties may file comments by June 30, 1999 . Pursuant to section 1.3 of the Commission's rules, 47 C.F.R.  1.3, we find good cause to waive section 1.415(c) of the Commission's rules, which provides for the submission of replies to original comments. Dispensing with reply comments is crucial in light of the urgent need to provide definitive guidance to the Administrator regarding the priorities for allocating funds to applications whose initial denials are reversed by the Administrator or the Commission.  X2 14. ` ` Comments may be filed using the Commission's Electronic Comment Filing  X 2System (ECFS) or by filing paper copies. See Electronic Filing of Documents in Rulemaking  X^ 2Proceedings, 63 Fed. Reg. 24,121 (1998). Comments filed through the ECFS can be sent as  X= 2an electronic file via the Internet to . Generally, only one copy of an electronic submission must be filed. If multiple docket or rulemaking numbers appear in the caption of this proceeding, however, commenters must transmit one electronic copy of the comments to each docket or rulemaking number referenced in the caption. In completing the transmittal screen, commenters should include their full name, Postal Service mailing address, and the applicable docket or rulemaking number. Parties may also submit an electronic comment by Internet email. To get filing instructions for email comments, commenters should send an email to ecfs@fcc.gov, and should include the following words in the body of the message, "get form " Commissioner Gloria Tristani  Xm2x#XP\  P6QynXP#  VJ2XxRe:Changes to the Board of Directors of the National Exchange Carrier Association, Inc.; FederalState Joint Board on Universal Service (CC Docket Nos. 9721, 9645). (#  X2  X 2T'FDBody Text 2#XP\  P6QynXP#I support the substance of the Commissions decision regarding the allocation of funding based on individual percentage discount levels. This result is compelled by the principle already adopted by this Commission that poor schools should be funded before wealthy schools. "ߙT'Body Text 2" Todays decision best comports with common sense as well. If there is a limited amount of money remaining for internal connections, it should be distributed in a manner that results in the greatest educational benefits for the most students. The instant order ensures that, when there is limited funding for internal connections, the poorest schools will be fully funded before moving on to other schools. In my view, it would be illogical to have a rule that could result in a group of schools receiving as little as five or ten percent of the money they requested for internal connections. Such an apportionment of limited funds for internal connections is a recipe for wasted funding. It makes far more sense to ensure that at least some schools get the money they need to install internal connections. Todays order does that. I wish to register my concern with the views expressed elsewhere that we should encourage Bureaulevel decisions over Commissionlevel decisions on important and novel questions. First, there is disagreement about whether a prior Commission decision expanded the Common Carrier Bureaus authority to address Schools and Libraries issues that exceeds the Bureaus traditional delegated authority. Some say the Bureau has authority to resolve novel School and Libraries questions based on an October 1997 order in which the Commission included a special delegation of authority to the Bureau to oversee the schools  X2and libraries and rural health care programs.)T'footnote reference)#'footnote reference#X01ÍÍ X01ÍÍ 3 {O(&footnote text#&'footnote reference##C\  P6QɒP#э)S'&footnote reference) See Changes to the Board of Directors of the National Exchange Carrier Association, Inc.; FederalState Joint  {O (Board on Universal Service; Fifth Order on Reconsideration, Eleventh Order on Reconsideration, and Further  {OV!(Notice of Proposed Rulemaking (rel. April 28, 1999)(Separate Statement of Commissioner Susan Ness)(citing  {O "(FederalState Joint Board on Universal Service, Third Report and Order, 12 FCC Rcd 22485, para. 6 (rel. Oct. 10, 1997)). The alternative view is that the October 1997 order fails to grant any additional authority to the Bureau because it does not unambiguously expand the Bureaus longstanding authority to resolve issues under outstanding precedents and  X0 2guidelines.)'footnote reference)#'footnote reference#$0 3 {OI&(&footnote text#&'footnote reference##l0XhC#э)S'&footnote reference)#X\  P6G;ɒP# Changes to the Board of Directors of the National Exchange Carrier Association, Inc.; FederalState Joint  {O'(Board on Universal Service; Fifth Order on Reconsideration, Eleventh Order on Reconsideration, and Further Notice of Proposed Rulemaking (rel. April 28, 1999)(Separate Statement of Commissioner Harold Furchtgott yO((Roth, Dissenting in Part).#djp P7CP# "0 , * *,, "Ԍ Even if the Commission did delegate additional authority to the Bureau in the October 1997 order, it is not clear to me where the dividing line lies between the Bureaus existing authority to resolve issues under outstanding precedents and the purportedly new authority to oversee the schools and libraries program. I expect that any undertaking to clarify our existing rules would be done with reference to established Commission principles and precedent.  X2'FDBody Text 2#XP\  P6QynXP#Second, and perhaps more important than the legal issue, is the practical question of  X2where decisions about the Schools and Libraries Program should get made. Some appear to favor a substantial role for the Bureau and a less active role for the full Commission. Those arguments are aimed at maintaining the forward progress of the Schools and Libraries Program by avoiding operational delays that could occur if the Commission micromanaged the Universal Service Administrative Company. I could not agree more that we need to maintain the operational viability of the program. I have been an unwavering supporter of the program from my first day at the Commission, and I am committed to seeing this program become the success that Congress envisioned in the 1996 Act. And I agree that a variety of questions are appropriately resolved by the Common Carrier Bureau. But there are many questions that, in my view, must be resolved by the full Commission. Todays decision, for instance, likely will determine whether or not some schools get funding for internal connections in next years funding cycle. Apart from the legal issue of  X2delegated authority, how could todays decision not be made by the full Commission? It would be difficult for me to answer a school principal or a Member of Congress who inquired of me, Why did X school get no funding for wiring? under the rule we adopt today. Having cast a vote in favor of todays decision, I take full responsibility for, and am able to defend, the way this rule impacts future applications for funding. It would be a very different matter if todays decision were one in which I did not participate. I also believe that Congress wants the Chairman and Commissioners actively involved in overseeing the Schools and Libraries Program. Congress manifested this intention when it specifically limited the functioning of USAC to the implementation of FCC rules. Congress, in my view, was expressing a desire for greater accountability for the Schools and Libraries Program. I believe that request is best accommodated by the active involvement of the Chairman and Commissioners on important questions relating to the Schools and Libraries Program. The order that gives rise to the legal question regarding delegated authority was adopted just weeks before the arrival of four new Commissioners. Given the significant developments surrounding the program since that time, and in light of todays public  XF$2discussion of these issues, I believe this Commission should have the opportunity to put its stamp on the procedures that it will follow in this area. Finally, I would add my voice to that of Chairman Kennard and Commissioner Ness in"& ,[([(,,&" applauding the work of the Common Carrier Bureau on the Schools and Libraries Program. They have done an outstanding job of advising us in this area, and they deserve a great deal of credit for getting this important and multifaceted program off the ground. I look forward to having the Bureaus continued counsel on matters before the Commission and to their handing of issues that are appropriately addressed at the Bureau level. "R'Body Text 2"