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If you need the complete document, download the WordPerfect version or Adobe Acrobat version, if available. ***************************************************************** Before the Federal Communications Commission Washington, DC 20554 In the Matter of ) ) ) Federal-State Joint Board on ) CC Docket No. 96-45 Universal Service ) ) Changes to the Board of Directors of the ) CC Docket No. 97-21 National Exchange Carrier Association, Inc. ) ) Service Provider Identification Number ) (SPIN) Change Appeals Submitted by ) Eligible Schools and Libraries ) ) order Adopted: November 21, 2000 Released: November 22, 2000 By the Deputy Chief, Common Carrier Bureau: 1. This Order remands to the Schools and Libraries Division (SLD) of the Universal Service Administrative Company (USAC or Administrator) Letters of Appeal filed by certain parties in regards to service provider changes under the federal universal service programs for eligible schools and libraries. This process of changing service providers is referred to as a Service Provider Identification Number (SPIN) change request. For the reasons discussed below, further review and reconsideration of these Letters of Appeal by SLD is warranted in light of the Commission's decision to modify the current categories of permissible SPIN changes. 1BACKGROUND 1. Under the schools and libraries universal service support mechanism, eligible schools, libraries, and consortia that include eligible schools and libraries, may apply for discounts on eligible telecommunications services, Internet access, and internal connections. In the Universal Service Order, the Commission determined that competitive bidding is the most efficient means for ensuring that eligible schools and libraries are informed of the choices available to them and receive the lowest prices. Thus, the Commission's rules require eligible schools and libraries to seek competitive bids for all services eligible for discounts. In adopting rules governing the application and competitive bidding processes, the Commission did not address the situation in which a school or library could change service providers after the school or library has submitted an FCC Form 471 application designating a particular service provider. Indeed, section 54.504(c), which makes commitments of support contingent upon the applicant's filing of an FCC Form 471 identifying the service provider with which the applicant has signed a contract, makes no provision for a change of providers once a commitment of support has been made. 2. To avoid penalizing an applicant that discovers only after filing its FCC Form 471 that its service provider is unwilling or unable to provide service to the applicant, SLD originally announced, after consultation with Commission staff, that SPIN changes would be allowed when a service provider: (1) refuses to participate in the schools and libraries support mechanism; (2) has gone out of business; or (3) has breached its contract with the applicant. The original guidelines also required that the substitute service provider selected must have participated in the applicant's competitive bidding process. 3. In the Copan Order, released on March 16, 2000, the Commission modified the current categories of permissible SPIN changes and provided further guidance on when SPIN changes may be allowable. Specifically, the Commission stated that SPIN changes shall be permitted whenever an applicant certifies that (1) the SPIN change is allowed under its state and local procurement rules and under the terms of the contract between the applicant and its original service provider, and (2) the applicant has notified its original service provider of its intent to change service providers. The Commission stated that it would no longer restrict SPIN changes to those categories currently enumerated in the SLD guidelines (i.e., service provider refuses to participate, has gone out of business, or has breached its contract), in order to avoid penalizing an applicant that either would be entitled to a SPIN change under the current guidelines but for a lack of particular documentation, or whose justification for a SPIN change, however reasonable, did not fit squarely within the three pre-Copan exceptions. II. DISCUSSION 1. The parties listed in Appendix A of this Order have all filed Letters of Appeal with the Commission, protesting SLD's denial of their SPIN change requests. All of these SPIN change requests were acted upon by SLD prior to the Commission's decision in the Copan Order. In each of these Letters of Appeal, SLD denied the applicant's request for the SPIN change because the request did not fall squarely within one of the original three pre-Copan categories. In light of the Commission's revisions to the standards for permissible SPIN changes in the Copan Order, we remand these Letters of Appeal to the Administrator for reconsideration pursuant to the Commission's revised SPIN change policy. III. ORDERING CLAUSE 1. Accordingly, IT IS ORDERED, pursuant to sections 1-4, and 254 of the Communications Act of 1934, as amended, 47 U.S.C.  151-154 and 254, and sections 54.719 and 54.722 of the Commission's rules, 47 C.F.R.  54.719 and 54.722, that the Letters of Appeal filed by the named parties to this Order ARE REMANDED to the Schools and Libraries Division for further consideration as provided herein. FEDERAL COMMUNICATIONS COMMISSION Carol E. Mattey Deputy Chief, Common Carrier Bureau APPENDIX A LIST OF APPEALS REMANDED Application Number Applicant 127441 Baldwin County School System 134465 Beck Area Career Center 140404 Bethlehem Lutheran School 82409 Big Springs Union Elementary School District 115328 Borger Independent School District 42242 Bowlegs Independent School District 3 150889 Campbell County Public Schools 151145 Chehalis School District 108063 Chinle Unified School District #24 423324 Cloudcroft Municipal Schools 47392 East Boston Central Catholic School 33518 Four County Library System 10860 Grants/Cibola County Schools 64568 Henryetta Public Schools 114343 Hillsboro School District 1J 152241 Kelso School District 154065 Kyle Community Library 122114 Minneapolis Public Library 66154 North Country Union High School 16647 Paris Independent School District 81607 Santa Cruz Valley Union High School District 840 102180 Sasakwa Independent School District 10 79678 School District of Baraboo 55717 Sisseton School District 54-9 127948 South Boston Harbor Academy Charter School 108260 Southeast Area Cooperative 37391 St. Mary's School - Rosebank 82430 St. Peter's Elementary School 144087 Stephenson Area Public Schools 115936 Westwind Academy Charter High School 35321 Whiteville City School System