FCC Waives Gift Rules for RHC and E-rate
On March 18, 2020, the Federal Communications Commission released an Order waiving the gift rules in the E-rate and Rural Health Care programs. This waiver is in effect until September 30, 2020.
The waiver will allow RHC and E-rate participants to obtain free devices and broadband connections for telehealth and remote learning during the COVID-19 pandemic.
Specifically, the FCC’s Wireline Competition Bureau waived the E-rate and RHC program gift rules to permit service providers to offer, and eligible RHC and E-rate entities to solicit and accept, improved capacity, Wi-Fi hotspots, networking gear, or other things of value to assist health care providers, schools, and libraries as well as doctors and patients, teachers, students, school administrators, and librarians and patrons during the coronavirus outbreak. These gifts could include, but are not limited to, free upgrades to connections, connected devices, equipment, and other services for RHC program participants who provide care via telemedicine and free broadband connections, devices, or other services that support remote learning for students and teachers who will be taking classes at and providing instruction from home as a result of COVID-19.
Rural Health Care
The Commission waived the gift rule that bars service providers from offering, and health care providers from soliciting or accepting, such contributions. The Commission also waived section 54.611(b) of its rules requiring health care providers to pay the unsupported portion of service costs in the Healthcare Connect Fund program and section 54.603(b) requiring health care providers in the Telecom program to pay the urban rate.
The Commission noted that the waiver is limited to health care providers involved in the screening and treatment of patients for COVID-19 and for providing services to other patients in an effort to both help mitigate the spread of COVID-19 and devote limited on-site medical resources towards treatment of COVID-19. The Bureau also waived any other requirement, to the extent that is necessary, in these special circumstances to effectuate the relief granted, including restrictions on certification requirements. The September 30 deadline will also alleviate any potential administrative burdens associated with health care providers needing to competitively bid upgraded services that they will need to combat COVID-19 in the beginning of funding year 2020.
E-rate
The Bureau noted that the waiver is limited to offerings made by service providers and solicited or accepted by E-rate eligible entities on behalf of students, teachers, or patrons while schools and libraries prepare for closures or remain closed as a direct result of COVID-19, regardless of funding year. In taking this action, we find relevant that the underlying purpose of our gift rules, to ensure the integrity of the competitive bidding process, is not likely to be frustrated, particularly where competitive bidding for funding year 2019 is complete and nearly complete for funding year 2020.
Recordkeeping Requirement
The Bureau requires all eligible RHC and E-rate program participants to retain records documenting the services, equipment, or other things of value that they receive pursuant to the waivers described above and consistent with the document retention periods applicable to each program – 10 years for E-rate and five years for RHC.
The waiver will allow RHC and E-rate participants to obtain free devices and broadband connections for telehealth and remote learning during the COVID-19 pandemic.
Specifically, the FCC’s Wireline Competition Bureau waived the E-rate and RHC program gift rules to permit service providers to offer, and eligible RHC and E-rate entities to solicit and accept, improved capacity, Wi-Fi hotspots, networking gear, or other things of value to assist health care providers, schools, and libraries as well as doctors and patients, teachers, students, school administrators, and librarians and patrons during the coronavirus outbreak. These gifts could include, but are not limited to, free upgrades to connections, connected devices, equipment, and other services for RHC program participants who provide care via telemedicine and free broadband connections, devices, or other services that support remote learning for students and teachers who will be taking classes at and providing instruction from home as a result of COVID-19.
Rural Health Care
The Commission waived the gift rule that bars service providers from offering, and health care providers from soliciting or accepting, such contributions. The Commission also waived section 54.611(b) of its rules requiring health care providers to pay the unsupported portion of service costs in the Healthcare Connect Fund program and section 54.603(b) requiring health care providers in the Telecom program to pay the urban rate.
The Commission noted that the waiver is limited to health care providers involved in the screening and treatment of patients for COVID-19 and for providing services to other patients in an effort to both help mitigate the spread of COVID-19 and devote limited on-site medical resources towards treatment of COVID-19. The Bureau also waived any other requirement, to the extent that is necessary, in these special circumstances to effectuate the relief granted, including restrictions on certification requirements. The September 30 deadline will also alleviate any potential administrative burdens associated with health care providers needing to competitively bid upgraded services that they will need to combat COVID-19 in the beginning of funding year 2020.
E-rate
The Bureau noted that the waiver is limited to offerings made by service providers and solicited or accepted by E-rate eligible entities on behalf of students, teachers, or patrons while schools and libraries prepare for closures or remain closed as a direct result of COVID-19, regardless of funding year. In taking this action, we find relevant that the underlying purpose of our gift rules, to ensure the integrity of the competitive bidding process, is not likely to be frustrated, particularly where competitive bidding for funding year 2019 is complete and nearly complete for funding year 2020.
Recordkeeping Requirement
The Bureau requires all eligible RHC and E-rate program participants to retain records documenting the services, equipment, or other things of value that they receive pursuant to the waivers described above and consistent with the document retention periods applicable to each program – 10 years for E-rate and five years for RHC.
