E-Rate Program Updates November 2011 Mary Mehsikomer TIES Technology Integration Development & Outreach Facilitator Minnesota E-rate Coordinator for Schools (651) /21/2011TIES1

Agenda Eligible Services Equipment Transfers and Disposal Beware of Geeks Bearing Gifts CIPA E-Rate Website Tools – Cindy Olson, ARCC 11/21/2011TIES2

Things to Remember – Eligible Services Telecommunications services can only be provided by an eligible telecommunications carrier Telecommunications can be provided by non- telecommunications carriers on fiber in whole or in part 11/21/2011TIES3

Leased Dark Fiber Leased dark fiber is not breakfast cereal coated in chocolate Leased dark fiber is Priority 1 Added in Fund Year 11 On Form 470 file for both Telecommunications and Internet Access On Form 471 select the Telecommunications check box if provided by a telecommunications carrier Otherwise select Internet access check box 11/21/2011TIES4

Leased Dark Fiber (continued) Dark fiber MUST be lit immediately Does NOT allow for unneeded capacity or warehoused dark fiber for future use Maintenance cost and installation costs to hook it up are eligible – within property line Modulating electronics are not eligible Installation costs between eligible buildings not crossing a pubic right of way are Internal Connections 11/21/2011TIES5

Equipment Transfers & Disposal Equipment cannot be transferred for money or anything else of value, like goats No-cost transfer may occur three years or more after purchase to other eligible entities No transfer may be made prior to three years unless an eligible facility is closing 11/21/2011TIES6

Equipment Transfer – What to do? If less than 3 years notify USAC Retain records of the transaction Keep records for five years after the date of the transfer Records for equipment under 3 years follow traditional e-rate document retention requirements 11/21/2011TIES7

Equipment Disposal Only five years after installation Resale is allowable but not sooner than five years after installation Resale or disposal is prohibited before five years Trade-ins or exchanges OK after five years Equipment not funded through E-rate – follow local regulations 11/21/2011TIES8

Gifts For more detail see the 43 slides USAC has prepared on this subject at sessions/training-2011/fall/presentations.aspx sessions/training-2011/fall/presentations.aspx Applies to anyone in a school district who touches the E-rate process Limited to $20 per time, $50 per year Does not include gifts given as a result of a personal friendship from non-company funds 11/21/2011TIES9

And more on gifts Allows for charitable contributions – if not directly or indirectly related to E-rate activities Gift rules apply all the time, not just during procurement cycles Do not solicit gifts Do look gift horses in the mouth and do not accept them if they are worth more than $20 11/21/2011TIES10

There’s more Charitable donations OK as long as they are not directly or indirectly related to E-rate procurement Are not given with purpose of circumventing E-rate rules Equipment OK in some cases – as long as it doesn’t require purchase of more E-rate services and serves educational purpose 11/21/2011TIES11

Oh no! They gave me a gift what do I do? Give it back or Pay for it 11/21/2011TIES12

And yes, still more Raffle tickets or door prizes over $20 violate gift rules unless event is free of charge and open to the public Service providers can offer an educational discount on events as long as it is available to everyone in the school or library Widely attended events 11/21/2011TIES13

CIPA Amend existing Internet Safety/Acceptable Use policies to provide for education of minors about online behavior, Internet safety, and cyberbullying by July 1, 2012 – document it Internet Safety Policy – one public hearing – document it Internet Filter – make sure it is installed and working and you have paperwork to show purchase 11/21/2011TIES14

Questions? Call USAC/SLD at And/or for general help, ContactMary Mehsikomer Minnesota E-Rate Coordinator - Schools (651) /21/2011TIES15