BASIS, PURPOSE AND STATUTORY AUTHORITY.

The basis and purpose of these rules is to establish the discount for eligible intrastate services available to Colorado schools and libraries as authorized under 47 u.S.C. § 254(h). The discount is intended to further the goal of ensuring that basic and advanced telecommunications services shall be available and affordable to all persons in the State of Colorado. The discount allows providers to be fully reimbursed for the difference between the reasonable price for providing service and the discounted price for such service to schools and libraries.

These Rules are clear and simple and can be understood by persons expected to comply with them. They do not conflict with any other provision of law. There, are no duplicating or overlapping rules. The Commission is authorized to promulgate rules under § 40-2-108, C.R.S., and to determine the appropriate discount for intrastate telecommunications services as directed in 47 U.S.C. § 254(h)(1)(B). RULE (4 CCR) 723-48-1. APPLICABILITY.

The discounts contained in these Rules shall apply to the rates of all eligible intrastate services. RULE (4 CCR) 723-48-2. DEFINITIONS.

The meaning of terms used within these Rules shall be consistent with the definitions in Colorado statute, the Federal Communications Commission's ("FCC"'s) Universal Service Support for Schools and Libraries Rules found at Title 47 Code of Federal Regulations ("CFR") Part 54, Subpart F and general usage in the telecommunications industry. In the event the general usage of terms in the telecommunications industry or the definitions in these Rules conflict with statutory definitions, the statutory definitions control. As used in these Rules, unless the context indicates otherwise, the following definitions shall apply:

1. 723-48-2.1 Commission. The Colorado Public Utilities Commission. 723-48-2.2 Eligible Intrastate Services. For the purposes of these Rules, services eligible for discounts include ail commercially available . intrastate telecommunications services. In addition to intrastate telecommunications services, special services eligible for discounts include Internet access and installation and maintenance of internal connections. 723-48-2.3 Urban schools or libraries. Pursuant to 47 CFR § 54.505(b) (3) (i) schools and libraries located in metropolitan counties, as measured by the Office of Management and Budget's Metropolitan Statistical Area method, shall be designated as urban, except for those schools and libraries located within rural areas of metropolitan counties identified by census block or tract in the Goldsmith Modification.
   1. 723-48-2.4 Rural schools or libraries. Pursuant to 47 CFR § 54.505(b) (3) (ii) schools and libraries located in non- metropolitan counties, as measured by the Office of Management and Budget's Metropolitan Statistical Area method, shall be designated as rural. Schools and libraries located in rural areas within metropolitan counties identified by census .. block or tract in the Goldsmith Modification shall also be designated as rural. RULE (4 CCR) 723-48-3. DISCOUNT FOR ELIGIBLE INTRASTATE SERVICES FOR ELIGIBLE SCHOOLS AND LIBRARIES.

The following matrix shall be used to set a discount rate to be applied to eligible intrastate services purchased by eligible schools, school districts, libraries, or library consortia based upon the institution's level of poverty and location in an “urban” or “rural” area. SCHOOLS & DISCOUNT LEVEL LIBRARIES DISCOUNT MATRIX HOW Urban Discount(%) Rural Discount(%)

1. DISADVANTAGED? % of students eligible for national school lunch program <1 20 25 1-19 40 50 20-34 50 60 35-49 60 70 50-74 80 80 75-100 90 90 RULE (4 CCR) 723-48-4. RATE DISPUTES.

Pursuant to 47 CFR § 54.504(c), schools, libraries, and consortia including those entities, and service providers may seek a determination from the Commission regarding intrastate rates if they believe that the lowest corresponding price is unfairly high or low. RULE (4 CCR) 723-48-5. DISCOUNT ADMINISTRATION.

Disputes dealing with the authority, practices, discount and fund accounting, and administration of the Schools and Libraries Discount Fund shall be determined by the FCC or its designee pursuant to 47 CFR § 54.707 RULE (4 CCR) 723-48-6. RESPONSE TO REQUEST FOR SERVICES. A certificated telecommunications services provider shall respond in writing to a written request for eligible intrastate services within four weeks of the receipt of the request. RULE (4 CCR) 723-48-7. INCORPORATION BY REFERENCE.

References in these rules to Part 54 are rules issued by the FCC and have been incorporated by reference in these rules. These rules may be found at 47 CFR Part 54, revised as of June 22, 1997. References to Part 54 do not include later amendments to or editions of those parts. A certified copy of this part which has been incorporated by reference is maintained at the offices of the Colorado Public Utilities Commission, 1580 Logan Street, OL-2, Denver, Colorado 80203 and is available for inspection during normal business hours. Certified copies of the incorporated rules shall be provided at cost upon request. The Director, 1580 Logan, Office Level Two, Denver, Colorado 80203, will provide information regarding how Part 54 of Title 47 Federal Code of Regulations may be obtained or examined. These incorporated rules may be examined at any state publications depository library.