[Federal Register Volume 66, Number 73 (Monday, April 16, 2001)]
[Rules and Regulations]
[Pages 19394-19398]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 01-9325]


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FEDERAL COMMUNICATIONS COMMISSION

47 CFR Part 54

[CC Docket No. 96-45; FCC 01-120]


Federal-State Joint Board on Universal Service: Children's 
Internet Protection Act

AGENCY: Federal Communications Commission.

ACTION: Final rule.

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SUMMARY: In this document, the Commission adopts rules proposed in the 
Further Notice of Proposed Rulemaking, to implement the Children's 
Internet Protection Act (CIPA). On December 21, 2000, the President 
signed into law the Children's Internet Protection Act, included as 
part of the Consolidated Appropriations Act, 2001.

DATES: Effective April 20, 2001.

FOR FURTHER INFORMATION CONTACT: Jonathan Secrest or Narda Jones, 
Attorney, Common Carrier Bureau, Accounting Policy Division, (202) 418-
7400.

SUPPLEMENTARY INFORMATION: This is a summary of the Commission's Report 
and Order in CC Docket No. 96-45 released on April 5, 2001. The full 
text of this document is available for public inspection during regular 
business hours in the FCC Reference Center, Room CY-A257, 445 Twelfth 
Street, SW., Washington, DC 20554.

I. Introduction

    1. In this Report and Order, we adopt rules proposed in the Further 
Notice of Proposed Rulemaking (FNPRM), 66 FR 8374, January 31, 2001, to 
implement the Children's Internet Protection Act (CIPA). Congress 
included CIPA as part of the Consolidated Appropriations Act, 2001. 
Sections 1721 et seq. of CIPA provide that schools and libraries that 
have computers with Internet access must certify that they have in 
place certain Internet safety policies and technology protection 
measures in order to be eligible under section 254(h) of the 
Communications Act of 1934, as amended (the Act), to receive discounted 
Internet access, Internet services, and internal connection services. 
CIPA also requires that our rules implementing the statute be in effect 
by April 20, 2001.
    2. We adopt these rules with the goal of faithfully implementing 
CIPA in a manner consistent with Congress's intent. We have attempted 
to craft our rules in the most practical and efficacious way possible, 
while providing schools and libraries with maximum flexibility in 
determining the best approach. Moreover, to reduce burdens in the 
application process, we have designed rules to use existing processes 
where applicable. We conclude that local authorities are best situated 
to choose which technology measures and Internet safety policies will 
be most appropriate for their relevant communities.

II. Executive Summary

    3. In this Order, we adopt rules that do the following:
     In order to receive discounts for Internet access and 
internal connections services under the universal service support 
mechanism, school and library authorities must certify that they are 
enforcing a policy of Internet safety that includes measures to block 
or filter Internet access for both minors and adults to certain visual 
depictions. These include visual depictions that are obscene, or child 
pornography, or, with respect to use of computers with Internet access 
by minors, or harmful to minors. An authorized person may disable the 
blocking or filtering measure during any use by an adult to enable 
access for bona fide research or other lawful purpose.
     A school administrative authority must certify that its 
policy of Internet safety includes monitoring the online activities of 
minors.
     In order to receive discounts, school and library 
authorities must also certify that they have adopted and implemented an 
Internet safety policy addressing access by minors to inappropriate 
matter on the Internet and World Wide Web; the safety and security of 
minors when using electronic mail, chat rooms, and other forms of 
direct electronic communications; unauthorized access, including so-
called ``hacking,'' and other unlawful activities by minors online; 
unauthorized disclosure, use, and dissemination of personal information 
regarding minors; and measures designed to restrict minors' access to 
materials harmful to minors.
     For this funding year, schools and libraries must certify 
by October 28, 2001 that they have the policies and technology measures 
in place, or that they are undertaking such actions, including any 
necessary procurement

[[Page 19395]]

procedures, to put them in place for the following funding year. 
Because no school or library may receive services at discount rates 
during any time period in which it is out of compliance with its 
certification, as of the time that a school or library begins receiving 
services in Funding Year 4, it must either have the policies and 
technology measure in place, or be undertaking necessary actions to put 
them in place for the next year.
     Schools and libraries shall make the necessary 
certifications in FCC Form 486, which is submitted after a decision is 
made on requests for discounts under the universal service support 
mechanism.

III. Procedural Matters

A. Effective Date

    4. We conclude that the effective date of the rules promulgated in 
this Order shall be April 20, 2001, which will be less than thirty days 
after publication in the Federal Register. Although the Administrative 
Procedures Act normally requires 30 days notice before rules become 
effective, the Commission, for good cause, may make rules effective 
with less than 30 days notice. We find such good cause based on the 
shortened time frame imposed by Congress for implementation of CIPA.

B. Paperwork Reduction Act

    5. The action contained herein has been analyzed with respect to 
the Paperwork Reduction Act of 1995 (PRA) and found to impose new or 
modified reporting and/or recordkeeping requirements or burdens on the 
public. Implementation of these new or modified reporting and/or 
recordkeeping requirements will be subject to approval by the Office of 
Management and Budget (OMB) as prescribed by the PRA. FCC will announce 
receipt of OMB approval in the Federal Register.

C. Final Regulatory Flexibility Analysis

    6. As required by the Regulatory Flexibility Act (RFA), an Initial 
Regulatory Flexibility Analysis (IRFA) was incorporated in the FNPRM. 
The Commission sought written public comments on the proposals in the 
FNPRM, including comment on the IRFA. This present Final Regulatory 
Flexibility Analysis (FRFA) conforms to the RFA, as amended.
1. Need for, and Objectives of, the Proposed Rules
    7. The Children's Internet Protection Act (CIPA), included as part 
of the Consolidated Appropriations Act, 2001, Public Law 106-554, 
requires the Commission to prescribe regulations in order to implement 
the legislation. This Order adopts rules that implement CIPA. Eligible 
school and library authorities must certify that they are enforcing a 
policy of Internet safety that includes measures to block or filter 
Internet access for both minors and adults to certain visual 
depictions, that schools' policies of Internet safety includes 
monitoring the online activities of minors, and that schools and 
libraries have adopted and implemented an Internet safety policy under 
section 254(l).
2. Summary of Significant Issues Raised by the Public Comments in 
Response to the IRFA
    8. The Commission received no comments directly addressing the 
IRFA. However some comments dispute our estimate that executing the 
certifications on FCC Form 486 would take approximately one minute. 
These comments assert that the time requirement was longer due to the 
preparation and information gathering necessary to make the CIPA 
certifications. This information gathering is not a requirement imposed 
upon schools and libraries by the Commission, rather CIPA requires the 
collection of this data. After considering these comments, we conclude 
that requiring the certifications as part of the existing FCC Form 486 
process is the least burdensome procedure for program participants.
3. Description and Estimate of the Number of Small Entities To Which 
Rules Will Apply
    9. The RFA directs agencies to provide a description of and, where 
feasible, an estimate of the number of small entities that may be 
affected by the proposed rules, if adopted. The RFA generally defines 
the term ``small entity'' as having the same meaning as the terms 
``small business,'' ``small organization,'' and ``small governmental 
jurisdiction.'' In addition, the term ``small business'' has the same 
meaning as the term ``small business concern'' under the Small Business 
Act. A small business concern is one that: is independently owned and 
operated; is not dominant in its field of operation; and satisfies any 
additional criteria established by the Small Business Administration 
(SBA). A small organization is generally ``any not-for-profit 
enterprise which is independently owned and operated and is not 
dominant in its field.'' Nationwide, as of 1992, there were 
approximately 275,801 small organizations. ``Small governmental 
jurisdiction'' generally means ``governments of cities, counties, 
towns, townships, villages, school districts, or special districts, 
with a population of less than 50,000.'' As of 1992, there were 
approximately 85,006 governmental entities in the United States. This 
number includes 38,978 counties, cities, and towns; of these, 37,566, 
or 96 percent, have populations of fewer than 50,000. The Census Bureau 
estimates that this ratio is approximately accurate for all 
governmental entities. Thus, of the 85,006 governmental entities, we 
estimate that 81,600 (96 percent) are small entities.
    10. Under the schools and libraries universal service support 
mechanism, which provides support for elementary and secondary schools 
and libraries, an elementary school is generally ``a non-profit 
institutional day or residential school that provides elementary 
education, as determined under state law.'' A secondary school is 
generally as ``a non-profit institutional day or residential school 
that provides secondary education, as determined under state law,'' and 
not offering education beyond grade 12. For-profit schools and 
libraries, and schools and libraries with endowments in excess of 
$50,000,000, are not eligible to receive discounts under the program, 
nor are libraries whose budgets are not completely separate from any 
schools. Certain other statutory definitions apply as well. The SBA has 
defined as small entities elementary and secondary schools and 
libraries having $5 million or less in annual receipts. In funding year 
2 (July 1, 1999 to June 20, 2000) approximately 83,700 schools and 
9,000 libraries received discounts under the schools and libraries 
universal service mechanism. Although we are unable to estimate with 
precision the number of these entities that would qualify as small 
entities under SBA's definition, we estimate that fewer than 83,700 
schools and 9,000 libraries would be affected annually by the rules 
promulgated in this Order, under current operation of the program.
4. Description of Projected Reporting, Recordkeeping, and Other 
Compliance Requirements
    11. This Order adopts measures that will result in minimal 
additional reporting. Specifically, the Order requires eligible schools 
and libraries receiving federal universal service support for Internet 
access or internal connections to make one certification on FCC Form 
486.
    12. A Billed Entity who filed a Form 471 as a ``consortium 
application'' and who is also a recipient of services as a

[[Page 19396]]

member of that consortium must select a certification from FCC Form 
486.
    13. Furthermore, every Billed Entity who filed a Form 471 as a 
``consortium application'' on behalf of consortium members shall make 
one certifications.
    14. The Form 486 certification section shall also include a 
disclaimer stating that the certification language is not intended to 
fully set forth or explain all the requirements of the statute.
    15. The Commission adopts rules, which modify FCC Form 486 to 
include the certification language listed. This form is already 
completed on a regular basis, and the modification would merely require 
the checking of one additional box prior to signing the form. We 
continue to estimate that it would take no more than one minute to 
review and check the appropriate certification box. The Commission 
concludes that this approach would be the most effective procedure for 
implementation of CIPA's requirements, and the least burdensome to 
recipients.
5. Steps Taken to Minimize Significant Economic Impact on Small 
Entities, and Significant Alternatives Considered
    16. The RFA requires an agency to describe any significant 
alternatives that it has considered in reaching its proposed approach, 
which may include the following four alternatives (among others): the 
establishment of differing compliance and reporting requirements or 
timetables that take into account the resources available to small 
entities; the clarification, consolidation, or simplification of 
compliance or reporting requirements under the rule for small entities; 
the use of performance, rather than design, standards; and an exemption 
from coverage of the rule, or part thereof, for small entities.
    17. This certification requirement is legislatively mandated by 
CIPA. The Commission is attempting to implement this requirement in the 
most effective and least burdensome manner possible for all entities, 
including small schools and libraries. Given that a certification is 
required by the legislation, we considered the alternative of having 
each school and library submit separate documentation, including the 
appropriate certification, to the Commission; however, such an approach 
seemed unnecessarily burdensome, particularly on small entities. In 
addition, even in light of comments that we underestimated the time 
required to complete the certification, we still believe that it is 
less burdensome to certify as part of an ongoing process. The parties' 
concerns about the time taken to comply with CIPA in order to be able 
to certify are not at issue here. The Commission's responsibility is to 
assure the certification of compliance. As discussed, the Commission 
concludes that adding the certification requirement to the existing FCC 
Form 486 process is the least burdensome alternative for implementing 
the requirements of the CIPA.
    18. In reaching this conclusion the Commission also considered, as 
an alternative, adding the certification language to the existing FCC 
Form 471. However, the Form 471 is submitted by applicants for 
universal service discounts, whereas CIPA requires certifications by 
recipients. Furthermore, entities completing Form 471 are not assured 
of receiving discounted funds, and consequently might not become 
subject to CIPA requirements. Therefore we have concluded that Form 
486, which is completed only by recipients of services, is more 
appropriate for CIPA certifications by recipients. Recipients will know 
by the time they submit the modified Form 486 that they will receive 
discounts, which is not the case at the time of Form 471 submission. By 
certifying on Form 486, recipients will only have to certify as to CIPA 
compliance once they are certain of receiving discounted services.
    19. Report to Congress: The Commission will send a copy of this 
Report and Order, including this FRFA, in a report to be sent to 
Congress pursuant to the Small Business Regulatory Enforcement Fairness 
Act of 1996. In addition, the Commission will send a copy of the Report 
and Order, including this FRFA, to the Chief Counsel for Advocacy of 
the Small Business Administration. A copy of the Report and Order and 
FRFA (or summaries thereof) will also be published in the Federal 
Register.

IV. Ordering Clauses

    20. Pursuant to the authority contained in sections 1-4, 201-205, 
218-220, 254, 303(r), and 403 of the Communications Act of 1934, as 
amended, section 553 of the Administrative Procedure Act, and the 
Children's Internet Protection Act, Public Law 106-554 1701 et seq. as 
codified at 47 U.S.C. 254(h) and (l), In the Matter of Federal-State 
Joint Board on Universal Service, Children's Internet Protection Act, 
Report and Order in CC Docket No. 96-45 is adopted. The collection of 
information contained within this Report and Order is contingent upon 
approval by the Office of Management and Budget.
    21. Pursuant to the authority contained in sections 1-4, 201-205, 
218-220, 254, 303(r), and 403 of the Communications Act of 1934, as 
amended, section 553 of the Administrative Procedure Act, and the 
Children's Internet Protection Act, Public Law 106-554 1701 et seq. as 
codified at 47 U.S.C. 254(h) and (l), Sec. 54.520 of the Commission's 
rules, is adopted, as set forth.
    22. Because the Commission has found good cause, this Report and 
Order and 47 CFR 54.520, as adopted and set forth, are effective April 
20, 2001, which is less than thirty days following publication in the 
Federal Register.
    23. The authority is delegated to the Chief of the Common Carrier 
Bureau pursuant to Sec. 0.291 of the Commission's rules, to modify, or 
require the filing of, any forms that are necessary to implement the 
decisions and rules adopted in this Report and Order.
    24. The Commission's Consumer Information Bureau, Reference 
Information Center, shall send a copy of this Report and Order, 
including the Final Regulatory Flexibility Analysis, to the Chief 
Counsel for Advocacy of the Small Business Administration.
    25. FCC Forms 486 and 479 contains information collections that 
have not been approved by the Office of Management and Budget. The 
Commission will publish a document in the Federal Register announcing 
the approval of these forms.

List of Subjects 47 CFR Part 54

    Reporting and recordkeeping requirements, Telecommunications, 
Telephone.

Federal Communications Commission.
Magalie Roman Salas,
Secretary.

Final Rules

    For the reasons discussed in the preamble, the Federal 
Communications Commission amends 47 CFR part 54 as follows:

PART 54--UNIVERSAL SERVICE

Subpart H--Administration

    1. The authority citation for part 54 continues to read as follows:

    Authority: 47 U.S.C. 1, 4(i), 201, 205, 214 and 254 unless 
otherwise noted.

    2. Add Sec. 54.520 to subpart H to read as follows:


Sec. 54.520  Children's Internet Protection Act certifications required 
from recipients of discounts under the federal universal service 
support mechanism for schools and libraries.

    (a) Definitions.

[[Page 19397]]

    (1) School. For the purposes of the certification requirements of 
this rule, school means school, school district, local education agency 
or other authority responsible for administration of a school.
    (2) Library. For the purposes of the certification requirements of 
this rule, library means library, library board or authority 
responsible for administration of a library.
    (3) Billed entity. Billed entity is defined in Sec. 54.500. In the 
case of a consortium, the billed entity is the lead member of the 
consortium.
    (4) Statutory definitions. The terms ``minor,'' ``obscene,'' 
``child pornography,'' ``harmful to minors'' and ``technology 
protection measure'' as used in this section, are defined in the 
Children's Internet Protection Act section 1721(c).
    (b) Who is required to make certifications? (1) A school or library 
that receives discounts for Internet access and internal connections 
services under the federal universal service support mechanism for 
schools and libraries, must make such certifications as described in 
paragraph (c) of this section. The certifications required and 
described in paragraph (c) of this section must be made in each funding 
year.
    (2) Schools and libraries that only receive discounts for 
telecommunications services under the federal universal service support 
mechanism for schools and libraries are not subject to the requirements 
47 U.S.C. 254(h) and (l), but must indicate, pursuant to the 
certification requirements in paragraph (c) of this section, that they 
only receive discounts for telecommunications services.
    (c) Certifications required under 47 U.S.C. 254(h) and (l). (1) 
Schools. The billed entity for a school that receives discounts for 
Internet access or internal connections must certify on FCC Form 486 
that an Internet safety policy is being enforced. If the school is an 
eligible member of a consortium but is not the billed entity for the 
consortium, the school must certify instead on FCC Form 479 
(``Certification to Consortium Leader of Compliance with the Children's 
Internet Protection Act'') that an Internet safety policy is being 
enforced.
    (i) The Internet safety policy adopted and enforced pursuant to 47 
U.S.C. 254(h) must include a technology protection measure that 
protects against Internet access by both adults and minors to visual 
depictions that are obscene, child pornography, or, with respect to use 
of the computers by minors, harmful to minors. This Internet safety 
policy must also include monitoring the online activities of minors.
    (ii) The Internet safety policy adopted and enforced pursuant to 47 
U.S.C. 254(l) must address all of the following issues:
    (A) Access by minors to inappropriate matter on the Internet and 
World Wide Web,
    (B) The safety and security of minors when using electronic mail, 
chat rooms, and other forms of direct electronic communications,
    (C) Unauthorized access, including so-called ``hacking,'' and other 
unlawful activities by minors online;
    (D) Unauthorized disclosure, use, and dissemination of personal 
information regarding minors; and
    (E) Measures designed to restrict minors' access to materials 
harmful to minors.
    (iii) A school must satisfy its obligations to make certifications 
by making one of the following certifications required by paragraph 
(c)(1) of this section on FCC Form 486:
    (A) The recipient(s) of service represented in the Funding Request 
Number(s) on this Form 486 has (have) complied with the requirements of 
the Children's Internet Protection Act, as codified at 47 U.S.C. 254(h) 
and (l).
    (B) Pursuant to the Children's Internet Protection Act, as codified 
at 47 U.S.C. 254(h) and (l), the recipient(s) of service represented in 
the Funding Request Number(s) on this Form 486 is (are) undertaking 
such actions, including any necessary procurement procedures, to comply 
with the requirements of CIPA for the next funding year, but has (have) 
not completed all requirements of CIPA for this funding year.
    (C) The Children's Internet Protection Act, as codified at 47 
U.S.C. 254(h) and (l), does not apply because the recipient(s) of 
service represented in the Funding Request Number(s) on this Form 486 
is (are) receiving discount services only for telecommunications 
services.
    (2) Libraries. The billed entity for a library that receives 
discounts for Internet access and internal connections must certify, on 
FCC Form 486, that an Internet safety policy is being enforced. If the 
library is an eligible member of a consortium but is not the billed 
entity for the consortium, the library must instead certify on FCC Form 
479 (``Certification to Consortium Leader of Compliance with the 
Children's Internet Protection Act'') that an Internet safety policy is 
being enforced.
    (i) The Internet safety policy adopted and enforced pursuant to 47 
U.S.C. 254 (h) must include a technology protection measure that 
protects against Internet access by both adults and minors to visual 
depictions that are obscene, child pornography, or, with respect to use 
of the computers by minors, harmful to minors.
    (ii) The Internet safety policy adopted and enforced pursuant to 47 
U.S.C. 254(l) must address all of the following issues:
    (A) Access by minors to inappropriate matter on the Internet and 
World Wide Web;
    (B) The safety and security of minors when using electronic mail, 
chat rooms, and other forms of direct electronic communications;
    (C) Unauthorized access, including so-called ``hacking,'' and other 
unlawful activities by minors online;
    (D) Unauthorized disclosure, use, and dissemination of personal 
information regarding minors; and
    (E) Measures designed to restrict minors' access to materials 
harmful to minors.
    (iii) A library must satisfy its obligations to make certifications 
by making one of the following certifications required by paragraph 
(c)(2) of this section on FCC Form 486:
    (A) The recipient(s) of service represented in the Funding Request 
Number(s) for which you have requested or received Funding Commitments 
has (have) complied with the requirements of the Children's Internet 
Protection Act, as codified at 47 U.S.C. 254(h) and (l).
    (B) Pursuant to the Children's Internet Protection Act (CIPA), as 
codified at 47 U.S.C. 254(h) and (l), the recipient(s) of service 
represented in the Funding Request Number(s) for which you have 
requested or received Funding Commitments is (are) undertaking such 
actions, including any necessary procurement procedures, to comply with 
the requirements of CIPA for the next funding year, but has (have) not 
completed all requirements of CIPA for this funding year.
    (C) The Children's Internet Protection Act, as codified at 47 
U.S.C. 254(h) and (l), does not apply because the recipient(s) of 
service represented in the Funding Request Number(s) for which you have 
requested or received Funding Commitments is (are) receiving discount 
services only for telecommunications services.
    (3) Certifications required from consortia members and billed 
entities for consortia. (i) The billed entity of a consortium, as 
defined in paragraph (a)(3) of this section, must collect from the 
authority for each of its school and library members, one of the 
following signed certifications on FCC Form 479

[[Page 19398]]

(``Certification to Consortium Leader of Compliance with the Children's 
Internet Protection Act''), which must be submitted to the billed 
entity consistent with paragraph (c)(1) or paragraph (c)(2) of this 
section:
    (A) The recipient(s) of service under my administrative authority 
and represented in the Funding Request Number(s) for which you have 
requested or received Funding Commitments has (have) complied with the 
requirements of the Children's Internet Protection Act, as codified at 
47 U.S.C. 254(h) and (l).
    (B) Pursuant to the Children's Internet Protection Act, as codified 
at 47 U.S.C. 254(h) and (l), the recipient(s) of service under my 
administrative authority and represented in the Funding Request 
Number(s) for which you have requested or received Funding Commitments 
is (are) undertaking such actions, including any necessary procurement 
procedures, to comply with the requirements of CIPA for the next 
funding year, but has (have) not completed all requirements of CIPA for 
this funding year.
    (C) The Children's Internet Protection Act, as codified at 47 
U.S.C. 254(h) and (l), does not apply because the recipient(s) of 
service under my administrative authority and represented in the 
Funding Request Number(s) for which you have requested or received 
Funding Commitments is (are) receiving discount services only for 
telecommunications services; and
    (ii) The billed entity for a consortium, as defined in paragraph 
(a)(3) of this section, must make one of the following two 
certifications on FCC Form 486: ``I certify as the Billed Entity for 
the consortium that I have collected duly completed and signed 
certifications from all eligible members of the consortium.''; or I 
certify as the Billed Entity for the consortium that the only services 
received under the universal service support mechanism by eligible 
members of the consortium are telecommunications services, and 
therefore the requirements of the Children's Internet Protection Act, 
as codified at 47 U.S.C. 254(h) and (l), do not apply.''; and
    (iii) The billed entity for a consortium, as defined in paragraph 
(a)(3) of this section, who filed an FCC Form 471 as a ``consortium 
application'' and who is also a recipient of services as a member of 
that consortium must select one of the certifications under paragraph 
(c)(3)(i) of this section on FCC Form 486.
    (d) Failure to provide certifications. (1) Schools and libraries. A 
school or library that knowingly fails to submit certifications as 
required by this section, shall not be eligible for discount services 
under the federal universal service support mechanism for schools and 
libraries until such certifications are submitted.
    (2) Consortia. A billed entity's knowing failure to collect the 
required certifications from its eligible school and library members or 
knowing failure to certify that it collected the required 
certifications shall render the entire consortium ineligible for 
discounts under the federal universal service support mechanism for 
school and libraries.
    (3) Reestablishing eligibility. At any time, a school or library 
deemed ineligible for discount services under the federal universal 
service support mechanism for schools and libraries because of failure 
to submit certifications required by this section, may reestablish 
eligibility for discounts by providing the required certifications to 
the Administrator and the Commission.
    (e) Failure to comply with the certifications. (1) Schools and 
libraries. A school or library that knowingly fails to ensure the use 
of computers in accordance with the certifications required by this 
section, must reimburse any funds and discounts received under the 
federal universal service support mechanism for schools and libraries 
for the period in which there was noncompliance.
    (2) Consortia. In the case of consortium applications, the 
eligibility for discounts of consortium members who ensure the use of 
computers in accordance with the certification requirements of this 
section shall not be affected by the failure of other school or library 
consortium members to ensure the use of computers in accordance with 
such requirements.
    (3) Reestablishing compliance. At any time, a school or library 
deemed ineligible for discounts under the federal universal service 
support mechanism for schools and libraries for failure to ensure the 
use of computers in accordance with the certification requirements of 
this section and that has been directed to reimburse the program for 
discounts received during the period of noncompliance, may reestablish 
compliance by ensuring the use of its computers in accordance with the 
certification requirements under this section. Upon submittal to the 
Commission of a certification or other appropriate evidence of such 
remedy, the school or library shall be eligible for discounts under the 
universal service mechanism.
    (f) Waivers based on state or local procurement rules and 
regulations and competitive bidding requirements. Waivers shall be 
granted to schools and libraries when the authority responsible for 
making the certifications required by this section, cannot make the 
required certifications because its state or local procurement rules or 
regulations or competitive bidding requirements, prevent the making of 
the certification otherwise required. The waiver shall be granted upon 
the provision, by the authority responsible for making the 
certifications on behalf of schools or libraries, that the schools or 
libraries will be brought into compliance with the requirements of this 
section, before the start of the third program year after December 21, 
2000 in which the school is applying for funds under this title.
    (g) Funding year certification deadlines. (1) Funding Year 4. For 
Funding Year 4, billed entities shall provide one of the certifications 
required under paragraph (c)(1), (c)(2) or (c)(3) of this section to 
the Administrator on an FCC Form 486 postmarked no later than October 
28, 2001.
    (2) Funding Year 5 and subsequent funding years. For Funding Year 5 
and for subsequent funding years, billed entities shall provide one of 
the certifications required under paragraph (c)(1), (c)(2) or (c)(3) of 
this section in accordance with the existing program guidelines 
established by the Administrator.

[FR Doc. 01-9325 Filed 4-13-01; 8:45 am]
BILLING CODE 6712-01-P