[Federal Register Volume 63, Number 167 (Friday, August 28, 1998)]
[Rules and Regulations]
[Page 45958]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-22810]


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FEDERAL COMMUNICATIONS COMMISSION

47 CFR Parts 54

[CC Docket No. 96-45; FCC 98-120]


Federal-State Joint Board on Universal Service

AGENCY: Federal Communications Commission.

ACTION: Final rule; correction.

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SUMMARY: This document corrects portions of the Commission's rules that 
were published in the Federal Register of August 12, 1998 (63 FR 
43088).

EFFECTIVE DATE: August 28, 1998.

FOR FURTHER INFORMATION CONTACT: Irene Flannery, Common Carrier Bureau, 
(202) 418-7400 or Adrian Wright, Common Carrier Bureau, (202) 418-7400.

SUPPLEMENTARY INFORMATION: The Federal Communications Commission 
published a document amending part 54 of the Commission's rules in the 
Federal Register of August 12, 1998 (63 FR 43088). In rule FR Doc. 98-
21588, published on August 12, 1998, (63 FR 43088) make the following 
correction:
    1. On page 43097, in the first column, instruction number 2 and 
related regulatory text in Sec. 54.507 are corrected to read as 
follows:
    2. Section 54.507 is amended by revising paragraphs (a) and (b), by 
redesignating introductory paragraph (g) as (g)(2), redesignating 
paragraphs (g)(1) through (g)(4) as (g)(2)(i) through (g)(2)(i)(iv), 
adding new introductory paragraph (g) and adding new paragraph (g)(1) 
to read as follows:


Sec. 54.507  Cap.

    (a) Amount of the annual cap. The annual cap on federal universal 
service support for schools and libraries shall be $2.25 billion per 
funding year, and all funding authority for a given funding year that 
is unused in that funding year shall be carried forward into subsequent 
funding years for use in accordance with demand, with the following 
exceptions:
    (1) No more than $625 million shall be collected or spent for the 
funding period from January 1, 1998 through June 30, 1998. No more than 
$325 million shall be collected for the funding period from July 1, 
1998 through September 30, 1998. No more than $325 million shall be 
collected for the funding period from October 1, 1998 through December 
31, 1998. No more than $325 million shall be collected for the funding 
period from January 1, 1999 through March 31, 1999. No more than $325 
million shall be collected for the funding period from April 1, 1999 
through June 30, 1999. No more than $1.925 billion shall be collected 
or disbursed during the eighteen month period from January 1, 1998 
through June 30, 1999.
    (2) The carryover of unused funding authority will not apply for 
the funding period January 1, 1998 through June 30, 1999. To the extent 
that the amounts collected in the funding period January 1, 1998 
through June 30, 1999 are less than $2.25 billion, the difference will 
not be carried over to subsequent funding years. Carryover of funds 
will occur only to the extent that funds are collected but not 
disbursed in the funding period January 1, 1998 through June 30, 1999.
    (b) Funding year. A funding year for purposes of the schools and 
libraries cap shall be the period July 1 through June 30. For the 
initiation of the mechanism only, the eighteen month period from 
January 1, 1998 to June 30, 1999 shall be considered a funding year. 
Schools and libraries filing applications within the initial 75-day 
filing window shall receive funding for requested services through June 
30, 1999.
* * * * *
    (g) Rules of priority. Schools and Libraries Corporation shall act 
in accordance with paragraph (g)(1) of this section with respect to 
applicants that file a Form 471, as described in Sec. 54.504(c) of this 
part, when a filing period described in paragraph (c) of this section 
is in effect. Schools and Libraries Corporation shall act in accordance 
with paragraph (g)(2) of this section with respect to applicants that 
file a Form 471, as described in Sec. 54.504(c) of this part, at all 
times other than within a filing period described in paragraph (c) of 
this section.
    (1) When the filing period described in paragraph (c) of this 
section closes, Schools and Libraries Corporation shall calculate the 
total demand for support submitted by applicants during the filing 
period. If total demand exceeds the total support available for that 
funding year, Schools and Libraries Corporation shall take the 
following steps:
    (i) Schools and Libraries Corporation shall first calculate the 
demand for telecommunications services and Internet access for all 
discount categories, as determined by the schools and libraries 
discount matrix in Sec. 54.505(c) of this part. These services shall 
receive first priority for the available funding.
    (ii) Schools and Libraries Corporation shall then calculate the 
amount of available funding remaining after providing support for all 
telecommunications services and Internet access for all discount 
categories. Schools and Libraries Corporation shall allocate the 
remaining funds to the requests for support for internal connections, 
beginning with the most economically disadvantaged schools and 
libraries, as determined by the schools and libraries discount matrix 
in Sec. 54.505(c) of this part. Schools and libraries eligible for a 90 
percent discount shall receive first priority for the remaining funds, 
and those funds will be applied to their requests for internal 
connections.
    (iii) To the extent that funds remain after the allocation 
described in Secs. 54.507(g)(1) (i) and (ii), Schools and Libraries 
Corporation shall next allocate funds toward the requests for internal 
connections submitted by schools and libraries eligible for an 80 
percent discount, then for a 70 percent discount, and shall continue 
committing funds for internal connections in the same manner to the 
applicants at each descending discount level until there are no funds 
remaining.
    (iv) If the remaining funds are not sufficient to support all of 
the funding requests within a particular discount level, Schools and 
Libraries Corporation shall divide the total amount of remaining 
support available by the amount of support requested within the 
particular discount level to produce a pro-rata factor. Schools and 
Libraries Corporation shall reduce the support level for each applicant 
within the particular discount level, by multiplying each applicant's 
requested amount of support by the pro-rata factor.
    (v) Schools and Libraries Corporation shall commit funds to all 
applicants consistent with the calculations described herein.
* * * * *
Federal Communications Commission.
Magalie Roman Salas,
Secretary.
[FR Doc. 98-22810 Filed 8-27-98; 8:45 am]
BILLING CODE 6712-01-P