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SLD RELEASES RULES OF PRIORITY FOR YEAR 2 OUT OF WINDOW APPEALS
Message Posted March 1, 2000

The Federal Communications Commission has issued a decision to the SLD which

establishes rules of priority for Year 2 E-rate applications received

outside the equal application window. The decision comes as a surprise, as

we were always told that applications filed late would be considered on a

first-come, first-served basis. If you DIDN'T file a Year 2 E-rate

application after April 6, 1999, disregard this message -- it doesn't apply

to you.

Quick summary:

- They'll begin processing these applications after all Year 3 funding

commitment letters are mailed (which means June - July).

- They don't yet know if the FCC will extend the funding year for internal

connections for these applicants.

- 1st priority: 80-90% discount applicants who received NO discounts in

Years 1 and 2, except for basic phone service.

- 2nd priority: 80-90% discount applicants who DID receive discounts in

Years 1 or 2.

- Final priority: all other funding requests received between March 2,

2000 and March 31, 2000.

Actual Text of SLD Newsflash Message (read thoroughly)

The Schools and Libraries Division (SLD) of the Universal Service

Administrative Company (USAC), in its role as Fund Administrator, announces

that it will consider applications for Year 2 (July 1, 1999 - June 30, 2000)

that were received by SLD after April 6, 1999 and before March 2, 2000.

These applications will be considered after SLD issues the last wave of

funding commitments on Year 3 applications that were received within the

Year 3 window (between November 10, 1999 and January 19, 2000).

We expect that we will complete our review of in-the-window Year 3

applications by late May 2000. Depending on the volume of additional

applications for Year 2 we receive, we hope to be able to make commitments

on post-window Year 2 applications before the end of July. With respect to

recurring charges, they will have to have been for services delivered during

the period July 1, 1999 and June 30, 2000. The Federal Communications

Commission (FCC) will determine whether to extend the funding year for

non-recurring charges, such as the installation of internal connections.

Further, SLD announces that there will be less than $250 million available

for additional funding requests for Year 2, and that SLD will continue to

accept Forms 471 for Year 2 funding requests for another 30 days, until

11:59 PM ET on March 31, 2000. These Forms 471 must be filed pursuant to a

Form 470 filed for Year 2 (i.e., after December 1, 1998) and the requisite

28-day waiting period. Consistent with FCC rules, applications received

between March 2, 2000 and March 31, 2000 will be considered in the order set

forth below. If remaining funds are insufficient to fully fund all approved

requests within any of the priority tiers below, Funding Requests (or

applications in the last tier) will be considered in the order in which they

were received.

- The highest priority will be given to Funding Requests (that is,

individual Funding Request Numbers (FRNs) even if they are on applications

with other FRNs at lower discount percentages) at the 80-90% discount level

(defined by the rules as representing the most disadvantaged schools and

libraries), where the applicant did not receive discounts for Year 1 or Year

2 and/or where the applicant received discounts only for basic telephone

service in prior applications for Year 1 or Year 2;

- The next highest priority will be given to Funding Requests at the 80-90%

discount level, where the applicant received discounts for any eligible

service in prior applications for Year 1 or Year 2;

- Final priority will be given to all other Funding Requests and

applications received between March 2, 2000 and March 31, 2000.

SLD will not accept Year 2 applications received after March 31, 2000.

If you wish to file a FCC Form 471 (Services Ordered and Certification Form)

during this 30-day period, you must use a Year 2 form (i.e., dated December

1998). This form is available by downloading it from the SLD web site. It

is also available from the Client Service Bureau by calling 1-888-203-8100.

This form must be filed manually. When properly completed, it should be

mailed to:

SLD-Form 471 Year 2

P.O. Box 7026

Lawrence, Kansas 66044-7026

or sent by express delivery service or U.S. Postal Service, Return Receipt

Requested, to:

SLD-Form 471 Year 2

C/O Ms. Smith

3833 Greenway Drive

Lawrence, Kansas 66046

888-203-8100.

The new 30-day period will make it difficult to file a Form 470 to order new

services, wait the required 28 days before signing contracts, and then

submit a Form 471 by the 30th day. However, if you wish to try to file a

Form 470 and a Form 471 during the 30 days, check the SLD web site at

www.sl.universalservice.org for additional instructions.

Julie L. Tritt

Executive Policy Specialist

Pennsylvania Department of Education

333 Market Street, 10th Floor

Harrisburg, PA 17126

(717) 705-4486

(717) 787-7222 - fax

jtritt@state.pa.us

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