[Federal Register Volume 79, Number 222 (Tuesday, November 18, 2014)]
[Rules and Regulations]
[Pages 68632-68635]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2014-25523]


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FEDERAL COMMUNICATIONS COMMISSION

47 CFR Part 54

[WC Docket No. 13-184; FCC 14-99]


Modernization of the Schools and Libraries ``E-Rate'' Program

AGENCY: Federal Communications Commission.

ACTION: Final rule; correction; correcting amendments.

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SUMMARY: This document corrects errors in the dates section, the 
supplementary information portion, and Final Rules section of a Federal 
Register document regarding the Commission taking major steps to 
modernize the E-rate program (more formally known as the schools and 
libraries universal service support mechanism). Building on the 
comments the Commission received in response to the E-rate 
Modernization NPRM, and the E-rate Modernization Public Notice, as well 
as recommendations from the Government Accountability Office (GAO), the 
program improvements the Commission adopts as part of this document 
begin the process of reorienting the E-rate program to focus on high-
speed broadband for our nation's schools and libraries. The document 
was published in the Federal Register on August 19, 2014.

DATES: The corrections and correcting amendments in this rule are 
effective November 18, 2014, except that correcting amendments 3 and 5 
are effective July 1, 2015.

FOR FURTHER INFORMATION CONTACT: James Bachtell or Kate Dumouchel, 
Wireline Competition Bureau, Telecommunications Access Policy Division, 
at (202) 418-7400 or TTY: (202) 418-0484.

SUPPLEMENTARY INFORMATION: This summary contains corrections to the 
DATES section, the SUPPLEMENTARY INFORMATION portion, and the Final 
Rules section of a Federal Register summary, 79 FR 49160 (August 19, 
2014). The full text of the Commission's Report and Order in WC Docket 
No. 13-184, FCC 14-99 released on July 23, 2014 is available for public 
inspection during regular business hours in the FCC Reference Center, 
Room CY-A257, 445 Twelfth Street SW., Washington, DC 20554.

Corrections to Final Rule

    In rule FR Doc. 2014-18937 published August 19, 2014 (79 FR 49160) 
make the following corrections.
    1. On page 49160, in the first column, correct the effective dates 
in the DATES section as follows:

----------------------------------------------------------------------------------------------------------------
               Section                         Correct . . .                         To read . . .
----------------------------------------------------------------------------------------------------------------
54.503(c)............................  Upon announcement of OMB       December 18, 2014.
                                        approval of information
                                        collection requirements.
54.504(f)............................  Upon announcement of OMB       54.504(f)(4)-(5) will become effective
                                        approval of information        July 1, 2016.
                                        collection requirements.
54.507(d)............................  Upon announcement of OMB       December 18, 2014.
                                        approval of information
                                        collection requirements.
54.507(f)............................  July 1, 2015.................  December 18, 2014.
54.514(a)............................  Upon announcement of OMB       December 18, 2014.
                                        approval of information
                                        collection requirements.
54.516(a)-(c), (d)...................  July 1, 2015.................  54.516 is effective on July 1, 2015, with
                                                                       the exception of paragraphs (a)-(c) which
                                                                       are effective upon announcement of OMB
                                                                       approval of information collection
                                                                       requirements.
54.720(a)............................  Upon announcement of OMB       December 18, 2014.
                                        approval of information
                                        collection requirements.
----------------------------------------------------------------------------------------------------------------

    2. On page 49161, in the second column, in paragraph 7, in the last 
sentence add the words ``, we continue the Commission's commitment to 
meeting schools' and libraries' connectivity needs'' after the word 
``connections''.
    3. On page 49168, in the second column, in paragraph 66, eleventh 
line, remove the comma after the word ``services.''
    4. On page 49168, in the third column, in paragraph 71, twenty-
seventh line, remove the word ``supports'' and add in its place the 
word ``supported.''
    5. On page 49169, in the second column, in paragraph 74, twenty-
third line, remove the words ``subsequent five funding years'' and add 
in their place the words ``subsequent four funding years.''
    6. On page 49169, in the second column, in paragraph 76, fifth 
line, add the word ``do'' after the words ``five-year budgets.''
    7. On page 49171, in the third column, in paragraph 95, third line, 
remove the word ``and'' and add it its place the words ``and/or.''
    8. On page 49172, in the first column, in paragraph 95, second 
line, correct the first full sentence to read ``In other

[[Page 68633]]

words, for schools in districts receiving funding in years 2015 and/or 
2016, we adopt a rolling funding cycle of five years for category two 
services, which begins the first year that a school receives E-rate 
support, and remove the two-in-five rule that applied to priority two 
internal connections.''
    9. On page 49172, in the first column, in paragraph 95, correct the 
third full sentence to read ``Therefore, schools that seek category two 
support in funding year 2015 will calculate their available pre-
discount support budget as $150 per student over five years beginning 
with funding year 2015.'', and correct the fourth full sentence to read 
``Schools that seek category two support in funding year 2016 will 
calculate their available pre-discount support budget as $150 per 
student, less any of the five year pre-discount budget used in funding 
year 2015.'', and correct the fifth full sentence to read ``In later 
years, schools that received category two support in funding years 2015 
and/or 2016 will calculate their available pre-discount budget based on 
$150 per student, less any of the pre-discount budget used in the prior 
funding years that are part of that school's five year funding cycle.''
    10. On page 49174, in the second column, in paragraph 113, in the 
first sentence, first line, remove the word ``Under'' and add in its 
place the words ``For example, under.''
    11. On page 49176, in the second column, in paragraph 128, in the 
second sentence, eleventh line, remove the words ``sufficient funding 
for is available'' and add in their place the words ``sufficient 
funding is available.''
    12. On page 49176, in the third column, in paragraph 128, in the 
penultimate sentence, eleventh line, add the word ``will'' after the 
word ``We.''
    13. On page 49178, in the first column, in paragraph 139, twelfth 
line, remove the words ``on-campus use.''
    14. On page 49179, in the first column, in paragraph 148, in the 
last sentence, thirtieth line, remove the word ``APIs'' and add in its 
place the words ``application programming interfaces (APIs).''
    15. On page 49181, in the second column, in paragraph 168, correct 
the third full sentence to read ``To show that it is authorized to seek 
or order eligible services for the applicants, a consortium lead may 
provide copies of relevant state statutes or regulations authorizing 
consortium leads to seek or order services on members' behalf or other 
proof that a consortium lead is authorized to seek or order services on 
behalf of its members.''
    16. On page 49186, in the first column, in paragraph 202, in the 
first sentence, fifth line, remove the words ``discount rate'' and add 
in their place the words ``NSLP level of poverty.''
    17. On page 49186, correct paragraph 205 to read ``In light of the 
benefits to school districts and libraries of adopting a district-wide 
discount, we revise Sec.  54.505(b)(4) of our rules to require school 
districts to calculate their E-rate discounts by:

dividing the total number of students in the district eligible for the 
NSLP by the total number of students in the district and comparing that 
single figure against the discount matrix to determine the school 
district's discount rate for E-rate supported services. All public 
schools and libraries within that public school district will receive 
the same discount rate, except under the circumstances described below. 
First, for the sake of simplicity, when a library system has branches 
or outlets in more than one public school district, that library system 
and all library outlets within that system should use the address of 
the central outlet or main administrative office to determine which 
public school district the library system is in, and should use that 
public school district's NSLP level of poverty to determine its 
discount rate whether applying as a library system or as one or more 
individual library outlets within that system. Second, library systems, 
and individual libraries that are not part of a library system, must 
separately determine their urban/rural status. All outlets within a 
library system receive the same discount rate.''
    18. On page 49187, in the first column, in paragraph 210, fifth 
line, remove the word ``(Census)'' and add in its place the words 
``(Census Bureau).''
    19. On page 49187, in the first column, in paragraph 210, in the 
third sentence, nineteenth line, add the word ``Bureau'' after the word 
``Census.''
    20. On page 49187, in the first column, in paragraph 210, in the 
fifth sentence, twenty-eighth line, add the word ``Bureau'' after the 
word ``Census.''
    21. On page 49187, in the first column, in paragraph 210, in the 
sixth sentence, thirty-fourth line, add the word ``Bureau'' after the 
word ``Census.''
    22. On page 49187, in the first column, in paragraph 211, in the 
second sentence, third line, add the word ``Bureau'' after the word 
``Census.''
    23. On page 49187, in the first column, in paragraph 211, in the 
third sentence, sixth line, add the word ``Bureau'' after the word 
``Census.''
    24. On page 49187, in the first column, in paragraph 211, in the 
fourth sentence, remove the words ``2010 Census'' and add in their 
place the words ``2010 decennial census,'' add the words ``for 
urbanized areas and 2,500 to 50,000 for urban clusters'' after the word 
``more,'' and remove the words ``of at least 2,500 people that link 
to'' and add in their place the words ``containing non-residential 
urban land uses as well as territory with low population density 
included to link outlying densely settled territory with.''
    25. On page 49187, in the first column, in paragraph 211, in the 
sixth sentence, twenty-fifth line, remove the word ``Census'' and add 
in its place the word ``census.''
    26. On page 49187, in the second column, in paragraph 213, remove 
the words in the fourth sentence ``Libraries' discount percentages will 
continue to be based on that of the public school district in which 
they are physically located.'' and add in their place the words 
``Libraries' discount percentages will continue to be based on the 
level of poverty, CEP or otherwise, of the public school district in 
which they are physically located, though library systems and 
individual libraries not part of a library system will separately 
determine their urban/rural status.''
    27. On page 49188, in the second column, in paragraph 218, 
nineteenth line, add the word ``on'' before the words ``only the 
surveys returned.''
    28. On page 49197, in the first and second columns, correct 
paragraph 306 to read ``It is further ordered, that pursuant to the 
authority contained in sections 1 through 4, 201 through 205, 254, 
303(r), and 403 of the Communications Act of 1934, as amended, 47 
U.S.C. 151-154, 201-205, 254, 303(r), and 403, and section 706 of the 
Telecommunications Act of 1996, 47 U.S.C. 1302, Part 54 of the 
Commission's rules, 47 CFR part 54, is Amended as set forth below, and 
such rule amendments shall be effective September 18, 2014, except for 
Sec. Sec.  54.503(c), 54.507(d) through (f), 54.514(a), and 54.720(a), 
which shall be effective December 18, 2014; Sec. Sec.  54.502(b)(2) 
through (3) and (5), 54.504(a), and 54.516(a) through (c), which are 
subject to the PRA and will become effective upon announcement in the 
Federal Register of OMB approval of the subject information collection 
requirements; and except for amendments in Sec. Sec.  54.5, 54.500, 
54.501(a)(1), 54.502(a), 54.504(d), 54.507(a) through (c) and (e), and 
54.516(d), which shall become effective on July 1, 2015; and amendments 
in Sec. Sec.  54.504(f)(4) and (f)(5) and 54.514(c),

[[Page 68634]]

which shall become effective on July 1, 2016.''

Section 54.500 [Corrected]

    29. On page 49197, in the Final Rules section, in the third column, 
in the definition of Consortium in Sec.  54.500, correct the second 
sentence to read ``A consortium may also include health care providers 
eligible under subpart G of this part, and public sector (governmental) 
entities, including, but not limited to, state colleges and state 
universities, state educational broadcasters, counties, and 
municipalities, although such entities are not eligible for support.''
    30. On page 49198, in the Final Rules section, in the first column, 
in the definition of Managed internal broadband services in Sec.  
54.500, remove the words ``management, and/or monitoring'' and add in 
their place the words ``management, and monitoring'' and remove the 
words ``local area network (LAN) and wireless LAN'' and add in their 
place the words ``local area network (LAN) and/or wireless LAN.''

Section 54.501 [Corrected]

    31. On page 49198, in the Final Rules section, in the first column, 
in paragraph (a)(1) of Sec.  54.501, remove the words `` ``elementary 
school'' and ``secondary school'' '' and add in their place the words 
`` ``elementary school'' or ``secondary school'' ''.

Section 54.502 [Corrected]

    32. On page 49198, in the Final Rules section, in the first column, 
in paragraph (a) of Sec.  54.502, remove the words ``paragraph (b)'' 
and add in their place the words ``paragraph (d).''

Correcting Amendments

List of Subjects in 47 CFR Part 54

    Communications common carriers, Health facilities, Infants and 
children, Libraries, Reporting and recordkeeping requirements, Schools, 
Telecommunications, Telephone.

    Accordingly, 47 CFR part 54 is corrected by making the following 
correcting amendments:

PART 54--UNIVERSAL SERVICE

0
1. The authority citation for part 54 continues to read as follows:

    Authority:  Sections 1, 4(i), 5, 201, 205, 214, 219, 220, 254, 
303(r), and 403 of the Communications Act of 1934, as amended, and 
section 706 of the Communications Act of 1996, as amended; 47 U.S.C. 
151, 154(i), 155, 201, 205, 214, 219, 220, 254, 303(r), 403, and 
1302 unless otherwise noted.


0
2. Effective November 18, 2014, amend Sec.  54.5 by revising the 
definition of ``Internet access'' to read as follows:


Sec.  54.5  Terms and definitions.

* * * * *
    Internet access. ``Internet access'' includes the following 
elements:
    (1) The transmission of information as common carriage;
    (2) The transmission of information as part of a gateway to an 
information service, when that transmission does not involve the 
generation or alteration of the content of information, but may include 
data transmission, address translation, protocol conversion, billing 
management, introductory information content, and navigational systems 
that enable users to access information services, and that do not 
affect the presentation of such information to users; and
    (3) Electronic mail services (email).

0
3. Effective July 1, 2015, amend Sec.  54.5 by revising the definition 
of ``Internet access'' to read as follows:


Sec.  54.5  Terms and definitions.

* * * * *
    Internet access. ``Internet access'' includes the following 
elements:
    (1) The transmission of information as common carriage; and
    (2) The transmission of information as part of a gateway to an 
information service, when that transmission does not involve the 
generation or alteration of the content of information, but may include 
data transmission, address translation, protocol conversion, billing 
management, introductory information content, and navigational systems 
that enable users to access information services, and that do not 
affect the presentation of such information to users.
* * * * *

0
4. Effective November 18, 2014, amend Sec.  54.504 by revising 
paragraph (d) to read as follows:


Sec.  54.504  Requests for services.

* * * * *
    (d) Service substitution. (1) The Administrator shall grant a 
request by an applicant to substitute a service or product for one 
identified on its FCC Form 471 where:
    (i) The service or product has the same functionality;
    (ii) The substitution does not violate any contract provisions or 
state or local procurement laws;
    (iii) The substitution does not result in an increase in the 
percentage of ineligible services or functions; and
    (iv) The applicant certifies that the requested change is within 
the scope of the controlling FCC Form 470, including any associated 
Requests for Proposal, for the original services.
    (2) In the event that a service substitution results in a change in 
the pre-discount price for the supported service, support shall be 
based on the lower of either the pre-discount price of the service for 
which support was originally requested or the pre-discount price of the 
new, substituted service.
    (3) For purposes of this rule, the broad categories of eligible 
services (telecommunications service, Internet access, and internal 
connections) are not deemed to have the same functionality with one 
another.

0
5. Effective July 1, 2015, amend Sec.  54.504 by revising paragraph (d) 
to read as follows:


Sec.  54.504  Requests for services.

* * * * *
    (d) Service substitution. (1) The Administrator shall grant a 
request by an applicant to substitute a service or product for one 
identified on its FCC Form 471 where:
    (i) The service or product has the same functionality;
    (ii) The substitution does not violate any contract provisions or 
state or local procurement laws;
    (iii) The substitution does not result in an increase in the 
percentage of ineligible services or functions; and
    (iv) The applicant certifies that the requested change is within 
the scope of the controlling FCC Form 470, including any associated 
Requests for Proposal, for the original services.
    (2) In the event that a service substitution results in a change in 
the pre-discount price for the supported service, support shall be 
based on the lower of either the pre-discount price of the service for 
which support was originally requested or the pre-discount price of the 
new, substituted service.
    (3) For purposes of this rule, the two categories of eligible 
services are not deemed to have the same functionality as one another.

0
6. In Sec.  54.505:
0
a. Revise paragraph (b)(2).
0
b. In paragraph (b)(3)(i), remove the word ``urbanized'' and add in its 
place the word ``urban''.
    The revision reads as follows:


Sec.  54.505  Discounts.

* * * * *
    (b) * * *
    (2) For libraries and library consortia, the level of poverty shall 
be based on the percentage of the student enrollment that is eligible 
for a free or reduced price lunch under the national school lunch 
program or a federally-approved

[[Page 68635]]

alternative mechanism in the public school district in which they are 
located and should use that school district's level of poverty to 
determine their discount rate when applying as a library system or as 
an individual library outlet within that system. When a library system 
has branches or outlets in more than one public school district, that 
library system and all library outlets within that system should use 
the address of the central outlet or main administrative office to 
determine which school district the library system is in, and should 
use that school district's level of poverty to determine its discount 
rate when applying as a library system or as one or more library 
outlets. If the library is not in a school district, then its level of 
poverty shall be based on an average of the percentage of students 
eligible for the national school lunch program in each of the school 
districts that children living in the library's location attend.
* * * * *

Federal Communications Commission.
Marlene H. Dortch,
Secretary.
[FR Doc. 2014-25523 Filed 11-17-14; 8:45 am]
BILLING CODE 6712-01-P