(a) The Universal Service Administrative Company is appointed the permanent Administrator of the federal universal service support mechanisms, subject to a review after one year by the Federal Communications Commission to determine that the Administrator is administering the universal service support mechanisms in an efficient, effective, and competitively neutral manner.
(b)(1) The Administrator shall establish a twenty (20) member Board of Directors, as set forth in § 54.703. The Administrator's Board of Directors shall establish three Committees of the Board of Directors, as set forth in § 54.705:
(i) The Schools and Libraries Committee, which shall oversee the schools and libraries support mechanism;
(ii) The Rural Health Care Committee, which shall oversee the rural health care support mechanism; and
(iii) The High Cost and Low Income Committee, which shall oversee the high cost and low income support mechanism.
(2) The Board of Directors shall not modify substantially the power or authority of the Committees of the Board without prior approval from the Federal Communications Commission.
(c)(1) The Administrator shall establish three divisions:
(i) The Schools and Libraries Division, which shall perform duties and functions in connection with the schools and libraries support mechanism under the direction of the Schools and Libraries Committee of the Board, as set forth in § 54.705(a);
(ii) The Rural Health Care Division, which shall perform duties and functions in connection with the rural health care support mechanism under the direction of the Rural Health Care Committee of the Board, as set forth in § 54.705(b); and
(iii) The High Cost and Low Income Division, which shall perform duties and functions in connection with the high cost support mechanisms described in subparts J, K, M, and O of this part, and the low income support mechanisms described in subpart E of this part, under the direction of the High Cost and Low Income Committee of the Board, as set forth in § 54.705(c).
(2) As directed by the Committees of the Board set forth in § 54.705, these divisions shall perform the duties and functions unique to their respective support mechanisms.
(d) The Administrator shall be managed by a Chief Executive Officer, as set forth in § 54.704. The Chief Executive Officer shall serve on the Committees of the Board established in § 54.705.
[63 FR 70572, Dec. 21, 1998, as amended at 65 FR 38689, June 21, 2000; 65 FR 57739, Sept. 26, 2000; 66 FR 59727, Nov. 30, 2001; 68 FR 36943, June 20, 2003; 88 FR 55410, Aug. 15, 2023; 89 FR 25162, Apr. 10, 2024]
Notes of Decisions
United States ex rel. Heath v. AT & T, Inc., 791 F.3d 112 (D.C. Cir. 2015).
· cites it 2× “The FCC appointed the Universal Service Administrative Company to administer the Fund, 47 C.F.R. § 54.701 (a), and to use the money to support the cost of providing low-cost telecommunications services to schools, libraries, health-care providers, low-income consumers, and…”
Wisconsin Bell, Inc. v. United States ex rel. Heath, 604 U.S. 140 (2025).
“70564– 70565, 70572–70573 (1998) (codified, as amended, at 47 CFR §54.701 ). The upshot is that the Administrative Company was orig- inally understood to be—and the lawfulness of the E-Rate program turned upon the Administrative Company being— 12 WISCONSIN BELL, INC.”
Nat'l Lifeline Ass'n v. FCC, 983 F.3d 498 (D.C. Cir. 2020).
“See 47 C.F.R. § 54.701 (a). In that role, the Administrator – an independent, not-for-profit corporation, see Changes to the Board of Directors of the National Exchange Carrier Association, Inc.”
United States Ex Rel. Shupe v. Cisco Sys., Inc., 759 F.3d 379 (5th Cir. 2014).
· cites it 2× “§ 254 ; 47 C.F.R. §§ 54.701 , 54.702. USAC is an independent, not-for-profit corporation designated by the FCC as the administrator of the USF.”
Martha Self v. BellSouth Mobility, Inc., 700 F.3d 453 (11th Cir. 2012).
“18400, 18407, 18415, 1997 WL 408266 (1997); see also 47 C.F.R. § 54.701 (a). That company is responsible for, among other things, “billing [carriers], collecting contributions to the universal service support mechanisms, and disbursing universal service support funds.”
Consumers' Rsch. v. Fed. Commc'ns Comm'n, 88 F.4th 917 (11th Cir. 2023).
· cites it 2× “See 47 C.F.R. §§ 54.701 , 54.709. The USAC uses the FCC’s detailed formulas to determine projections and demand for the universal service fund per quarter.”
Whitmore Lake Pub. Schs. v. CMC Telecom, Inc. (In Re CMC Telecom, Inc.), 383 B.R. 52 (Bankr. E.D. Mich. 2008).
· cites it 2× “( 47 C.F.R. § 54.701 ). USAC has been delegated the responsibility by the FCC to collect mandatory contributions from telecommunications carriers to the Universal Service Fund and distribute those funds in accordance with federal law and regulations.”
Sandwich Isles Commc'ns v. United States, 992 F.3d 1355 (Fed. Cir. 2021).
“See 47 C.F.R. § 54.701 (a). The USF consists of four separate funds, but only the high-cost support fund, which is designed to support rural providers serving high-cost areas, is at issue in this appeal.”
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