Goto Section: 54.504 | 54.506 | Table of Contents
FCC 54.505
Revised as of October 1, 2014
Goto Year:2013 |
2015
§ 54.505 Discounts.
(a) Discount mechanism. Discounts for eligible schools and libraries
shall be set as a percentage discount from the pre-discount price.
(b) Discount percentages. The discounts available to eligible schools
and libraries shall range from 20 percent to 90 percent of the
pre-discount price for all eligible services provided by eligible
providers, as defined in this subpart. The discounts available to a
particular school, library, or consortium of only such entities shall
be determined by indicators of poverty and high cost.
(1) For schools and school districts, 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 alternative mechanism. School districts shall
divide the total number of students eligible for the National School
Lunch Program within the school district by the total number of
students within the school district to arrive at a percentage of
students eligible. This percentage rate shall then be applied to the
discount matrix to set a discount rate for the supported services
purchased by all schools within the school district. Independent
charter schools, private schools, and other eligible educational
facilities should calculate a single discount percentage rate based on
the total number of students under the control of the central
administrative agency.
(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 alternative mechanism in the public school
district in which they are located and should use that school
district's discount rate when applying as a library system or on behalf
of individual libraries within that system. Library systems that have
branches or outlets in more than one public school district 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 discount rate when applying as a library
system or on behalf of individual libraries within that system. 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.
(3) The Administrator shall classify schools and libraries as "urban"
or "rural" based on location in an urban or rural area, according to
the following desigantions.
(i) The Administrator shall designate a school or library as "urban" if
the school or library is located in an urbanized area as determined by
the most recent rural-urban classification by the Bureau of the Census.
The Administrator shall designate all other schools and libraries as
"rural."
(ii) Any school district or library system that has a majority of
schools or libraries in a rural area qualifies for the additional rural
discount.
(4) School districts, library systems, or other billed entities shall
calculate discounts on supported services described in § 54.502(a) that
are shared by two or more of their schools, libraries, or consortia
members by calculating an average discount based on the applicable
district-wide discounts of all member schools and libraries. School
districts, library systems, or other billed entities shall ensure that,
for each year in which an eligible school or library is included for
purposes of calculating the aggregate discount rate, that eligible
school or library shall receive a proportionate share of the shared
services for which support is sought. For schools, the discount shall
be a simple average of the applicable district-wide percentage for all
schools sharing a portion of the shared services. For libraries, the
average discount shall be a simple average of the applicable discounts
to which the libraries sharing a portion of the shared services are
entitled.
(c) Matrices. Except as provided in paragraph (d) of this section, the
Administrator shall use the following matrices to set discount rates to
be applied to eligible category one and category two services purchased
by eligible schools, school districts, libraries, or consortia based on
the institution's level of poverty and location in an "urban" or
"rural" area.
% of students eligible for National School Lunch Program Category
one schools and
libraries discount matrix Category two schools and
libraries discount matrix
Discount level Discount level
Urban
discount Rural
discount Urban
discount Rural
discount
< 1 20 25 20 25
1-19 40 50 40 50
20-34 50 60 50 60
35-49 60 70 60 70
50-74 80 80 80 80
75-100 90 90 85 85
(d) Voice Services. Discounts for category one voice services shall be
reduced by 20 percentage points off applicant discount percentage rates
for each funding year starting in funding year 2015, and reduced by an
additional 20 percentage points off applicant discount percentage rates
each subsequent funding year.
(e) Interstate and intrastate services. Federal universal service
support for schools and libraries shall be provided for both interstate
and intrastate services.
(1) Federal universal service support under this subpart for eligible
schools and libraries in a state is contingent upon the establishment
of intrastate discounts no less than the discounts applicable for
interstate services.
(2) A state may, however, secure a temporary waiver of this latter
requirement based on unusually compelling conditions.
(f) State support. Federal universal service discounts shall be based
on the price of a service prior to the application of any state
provided support for schools or libraries.
[ 62 FR 32948 , June 17, 1997, as amended at 62 FR 41304 , Aug. 1, 1997;
63 FR 2130 , Jan. 13, 1998; 63 FR 70572 , Dec. 21, 1998; 75 FR 75414 ,
Dec. 3, 2010; 79 FR 49201 , Aug. 19, 2014]
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Goto Section: 54.504 | 54.506
Goto Year: 2013 |
2015
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