Sec.  54.701   Administrator of universal service support mechanisms.

   (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) The Administrator shall establish a nineteen (19) member Board of
   Directors, as set forth in  Sec. 54.703. The Administrator's Board of Directors
   shall establish three Committees of the Board of Directors, as set forth in
    Sec. 54.705: (1) the Schools and Libraries Committee, which shall oversee the
   schools and libraries support mechanism; (2) the Rural Health Care
   Committee, which shall oversee the rural health care support mechanism; and
   (3) the High Cost and Low Income Committee, which shall oversee the high
   cost and low income support mechanism. 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  Sec. 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  Sec. 54.705(b); and

   (iii) The High Cost and Low Income Division, which shall perform duties and
   functions in connection with the high cost and low income support mechanism,
   the interstate access universal service support mechanism for price cap
   carriers described in subpart J of this part, and the interstate common line
   support mechanism for rate-of-return carriers described in subpart K of this
   part, under the direction of the High Cost and Low Income Committee of the
   Board, as set forth in  Sec. 54.705(c).

   (2) As directed by the Committees of the Board set forth in  Sec. 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  Sec. 54.704. The Chief Executive Officer shall serve on the Committees
   of the Board established in  Sec. 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]