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 PUBLIC  NOTICE  Federal  Communications  Commission  445  12  th  St.,  S.  W.  Washington,  D.  C.  20554  News  Media  Information  202  /  418-  0500  Fax-  On-  Demand  202  /  418-  2830  TTY  202  /  418-  2555  Internet:  http://  www.  fcc.  gov  ftp  fcc  gov 
 DA  06-  2371  Released:  November  27,  2006 
 THE  WIRELINE  COMPETITION  BUREAU  SEEKS  COMMENT  ON  THE  E-  RATE  CENTRAL  PETITION  FOR  CLARIFICATION  OR  WAIVER  OF  THE 
 COMMISSION’S  RULES  CONCERNING  THE  DISPOSAL  OF  EQUIPMENT  PURCHASED  UNDER  THE  SCHOOLS  AND  LIBRARIES  UNIVERSAL  SUPPORT  MECHANISM 


 PLEADING  CYCLE  ESTABLISHED 
 CC  Docket  02-  6 
 Comment  Date:  December  18,  2006  Reply  Comment  Date:  January  8,  2007 


 On  September  13,  2006,  E-  Rate  Central  filed  a  petition  for  clarification  or  waiver  of  the  Commission’s  rules  concerning  the  disposal  of  equipment  purchased  under  the  schools  and  libraries 
 universal  support  mechanism,  also  known  as  the  E-  rate  program.  1  Specifically,  E-  Rate  Central  seeks  guidance  from  the  Commission  on  the  proper  method  for  disposing  of  equipment  when  its  value  or 
 usefulness  precludes  the  possibility  of  transferring  the  equipment  to  another  eligible  facility.  2  E-  Rate  Central  notes  that  the  Commission’s  rules  for  the  disposal  of  equipment  funded  under  the  E-  rate  program, 
 which  prohibit  eligible  services  and  equipment  components  from  being  sold  or  transferred  in  consideration  of  anything  of  value,  may  conflict  with  New  York’s  state  regulations  mandating  that 
 obsolete  equipment  shall  be  sold  through  bid  procedures,  if  possible,  for  the  highest  possible  price.  3 
 The  Wireline  Competition  Bureau  (Bureau)  seeks  comment  on  E-  Rate  Central’s  petition.  In  addition,  the  Bureau  seeks  comment  on  how  the  disposal  of  equipment  is  currently  being  handled  in  other 


 1  See  Schools  and  Libraries  Universal  Support  Mechanism,  CC  Docket  No.  02-  6,  E-  Rate  Central  Petition  for  the 
 Clarification  or  Waiver  of  E-  Rate  Rules  Concerning  the  Disposal  of  Equipment  Purchased  Under  the  Schools  and  Libraries  Universal  Support  Mechanism  (filed  Sept.  13,  2006)  (“  E-  Rate  Central  Petition”).  E-  Rate  Central  is  an 


 independent  firm  that  specializes  in  providing  consulting,  compliance,  and  forms  processing  services  to  E-  rate  applicants  and  service  providers.  See  also  47  C.  F.  R.  §  54.  513(  a)  (“  Eligible  services  purchased  at  a  discount  under 
 this  subpart  shall  not  be  sold,  resold,  or  transferred  in  consideration  of  money  or  any  other  thing  of  value.”);  47  C.  F.  R.  §  54.  513(  c)  (“  Eligible  services  and  equipment  components  of  eligible  services  purchased  at  a  discount  under 
 this  subpart  shall  not  be  transferred,  with  or  without  consideration  of  money  or  any  other  thing  of  value,  for  a  period  of  three  years  after  purchase,  except  that  eligible  services  and  equipment  components  of  services  may  be  transferred 
 to  another  eligible  school  or  library  in  the  event  that  the  particular  location  where  the  service  originally  was  received  is  permanently  or  temporarily  closed.”). 


 2  See  E-  Rate  Central  Petition  at  2. 
 3  See  id.,  Attach.  A  (citing  to  New  York  State  Boards  of  Cooperative  Educational  Services’  (BOCES)  Regulation  on 
 Sale  and  Disposal  of  BOCES  Property). 
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