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SLD Announces BEAR Process Through 6/30/99

BEAR PROCESS TO PROVIDE REIMBURSEMENTS THROUGH JUNE 30, 1999

BEAR PROCESS TO PROVIDE REIMBURSEMENTS THROUGH JUNE 30, 1999

At the request of both service providers and funded applicants, the Schools and Libraries Division(SLD) will be accepting Billed Entity Applicant Reimbursement (BEAR) Forms for reimbursement of discounts on bills paid in full through the end of the first program year. Previously, the BEAR Form FCC Form 472) was intended to provide coverage only through December 31,1998.

Under the BEAR process, the approved E-rate applicant pays in full for eligible services (both the discounted portion and the amount that the billed entity is responsible for paying-the undiscounted portion) and then submits the BEAR form to the fund administrator (the SLD/USAC). The fund administrator will inform the service provider of the amount that the service provider must reimburse to the applicant. The reimbursement is paid from the fund administrator to the service provider, and from the service provider to the applicant. The extended BEAR process will use the same form – FCC Form 472 – but with the following additional guidelines:

* For telecommunications services and Internet access, the extended BEAR process is available at the option of the service provider. Some service providers may choose to issue discounted bills to their customers rather than expecting payment in full and providing reimbursements using the BEAR process, but MOST telecommunications and Internet access service providers are expected to rely on the BEAR process for services through the end of the first program year. Consult with your service providers to find out how you should proceed- whether to file a BEAR Form -to obtain discounts for services delivered from January 1999 through the end of the first program year.

* For internal connections, the extended BEAR process is available at the option of the applicant. Some applicants may choose to pay in full for services for which they have been approved for discounts and then use the BEAR process to seek reimbursement, but most internal connections providers who have been in contact with the SLD have told us that they will issue discounted bills.

* For services delivered and paid for from January 1, 1999 through June 30, 1999, applicants have the option of submitting two quarterly BEAR forms or one BEAR form covering the entire six-month period.

QUARTERLY OPTION

Services provided, billed, and paid for: BEAR Form due:

January 1-March 31, 1999 May 15, 1999

April 1-June 30, 1999 August 15, 1999

SIX-MONTH OPTION

Services provided, billed, and paid for: BEAR Form due:

January 1-June 30, 1999 August 15, 1999

* For services delivered, billed, and paid for through December 31, 1998, applicants should submit their BEAR forms as soon as possible after receiving a funding commitment decisions letter AND submitting Form 486 (with Column I of Block 2 marked "yes") for that service.

* Applicants should read carefully the BEAR Form instructions and the updated "Ten BEAR Form Tips" (via fax-on-demand, 800/959-0733, document # 513) before completing their BEAR Forms, and call the SLD help line, 888/203-8100 if they need any additional assistance.

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