Before the

**Federal Communications Commission**

**Washington, D.C. 20554**

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| In the Matter of                 | * | CC Docket No. 96-45          |
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| Federal-State Board on Universal | ) | CC Docket No. 97-21          |
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**ORDER**

**Adopted:** May 16, 2000 **Released:** May 22, 2000

By the Commission:

1.  In this Order, we amend a procedural rule which sets out the time
    period by which the Common Carrier Bureau (Bureau) or the Commission
    must take action on a request for review of a decision issued by the
    Schools and Libraries Division of the Universal Service
    Administrative Company (USAC or Administrator).[^1] We amend section
    54.724 of the Commission's rules to make clear that a decision of
    the Administrator will not be deemed approved upon the running of
    the 90-day deadline for taking action on requests for review that
    are pending before the Bureau.

2.  Section 54.724(a) of the Commission's rules establishes procedures
    for a request for review of an Administrator decision that is
    properly before the Bureau.[^2] Matters that are properly before the
    Bureau are appeals of Administrator decisions that do not involve
    novel issues of fact, law or policy.[^3] If the Bureau does not take
    action within 90 days regarding a request for review not involving
    novel issues, the decision issued by the Administrator is deemed
    approved.[^4] The rule also specifies that either the Commission or
    the Bureau may extend the time period for taking action on a matter
    before the Bureau.[^5]

3.  In contrast, section 54.724(b) of the Commission's rules directs the
    Commission to issue, within 90 days, a written decision resolving a
    request for review of an Administrator decision that involves novel
    questions of fact, law or policy.[^6] The rules provide that the
    Commission or Bureau may extend the time period for taking
    action.[^7] Unlike appeals pending before the Bureau, if the
    Commission does not issue a decision within 90 days or does not
    extend the time period for taking action on the request for review,
    the Commision's rules do not provide that the Administrator's
    decision will be automatically approved.[^8]

4.  The procedural distinction between matters pending before the
    Commission and those pending before the Bureau may pose problems for
    schools and libraries that request reviews of Administrator
    decisions. The appellants will not be certain whether or not their
    requests for review raise novel questions of fact, law or policy. As
    a consequence, appellants are not in a position to determine whether
    their appeals are pending before the Bureau or the Commission.
    Without knowledge of whether an appeal is being considered by the
    Bureau or Commission, a school or library cannot determine whether
    its appeal remains pending before the Commission or was subject to
    automatic denial where the 90-day time period for taking action ran
    without a decision or extension of time having been issued by the
    Bureau. Because of this lack of certainty, appellants cannot know
    when a denial is final and when the time period for pursuing further
    review has begun.

5.  We believe that this uncertainty puts appellants in an untenable
    position. A party adversely affected by a Bureau decision has the
    right to seek reconsideration or Commission review of the
    decision.[^9] In order to exercise their right to seek review of an
    adverse decision, however, appellants must file either a petition
    for reconsideration or an application for review within thirty days
    from the date of public notice of the final action or release of the
    decision.[^10] The rules fail, however, to set forth a mechanism for
    public notice of Administrator decisions that are deemed approved
    upon the passage of 90 days in the absence of action by the Bureau.

6.  The requirement in section 54.724(a) that Administrator decisions
    will be deemed approved in the absence of Bureau action on matters
    not involving new or novel issues was adopted to promote the prompt
    and efficient resolution of pending requests for review.[^11] We did
    not anticipate, however, that this means of streamlining our review
    process would add uncertainty to the appeals process or interfere
    with the ability of appellants to seek further review. Because we
    conclude that the different procedural processes found in sections
    54.724(a) and (b) generate uncertainty as to the status of certain
    requests for review, we find that it is in the public interest to
    eliminate the provision in section 54.724(a) specifying that a
    decision by the Administrator will be deemed approved where the
    Bureau has not acted within the 90-day review period. Accordingly,
    we find that it is appropriate to amend section 54.724(a) in this
    respect to conform to the rule that applies to Commission-level
    appeals. At the same time, we recognize the need of applicants under
    the schools and libraries program to have certainty over the status
    of their funding requests, and we remain committed to timely
    resolution of all appeals before us.

7.  We believe this procedural amendment will clarify our administrative
    processes and prevent confusion regarding the procedural status of
    requests for review of Administrator decisions that are pending
    before the Bureau. Accordingly, as set forth in Appendix A, we amend
    section 54.724(a) of the Commission\'s rules to clarify that a
    decision of the Administrator will not be deemed approved upon the
    running of the 90-day time period for taking action on requests for
    review that are pending before the Bureau.

**ORDERING CLAUSES**

8.  Accordingly, IT IS ORDERED that, pursuant to the authority contained
    in sections 1-4, 201-205, 218-220, 254, 303(r), 403, and 405 of the
    Communications Act of 1934, as amended, 47 U.S.C. §§ 151-154,
    201-205, 218-220, 254, 303(r), 403, and 405, section 1.108 of the
    Commission\'s rules, 47 C.F.R. § 1.108, this ORDER IS ADOPTED.

9.  IT IS FURTHER ORDERED that, pursuant to the authority contained in
    sections 1-4, 201-205, 218-220, 254, 303(r), 403, and 405 of the
    Communications Act of 1934, as amended, 47 U.S.C. §§ 151-154,
    201-205, 218-220, 254, 303(r), 403, and 405, section 1.108 of the
    Commission\'s rules, 47 C.F.R. § 1.108, Part 54 of the Commission\'s
    rules, 47 C.F.R. Part 54, is revised as set forth in Appendix A
    hereto.

10. IT IS FURTHER ORDERED that this action is exempt from the notice and
    comment requirements of the Administrative Procedure Act, 5 U.S.C. §
    553, because it affects only rules of agency procedure or practice.

11. Because this action involves an internal procedural matter, IT IS
    FURTHER ORDERED that the rule change set forth in Appendix A IS
    EFFECTIVE immediately upon publication in the Federal Register.

FEDERAL COMMUNICATIONS COMMISSION

Magalie Roman Salas

Secretary

**Appendix A** -- Rule Change

Part 54 of Title 47 of the Code of Federal Regulations is amended as
follows:

Part 54 \-- Universal Service

1\. The authority citation for part 54 continues to read as follows:

Authority: 47 USC Secs. 1, 4(i), 201, 205, 214, and 254 unless otherwise
noted.

**§ 54.724 Time periods for Commission approval of Administrator
decisions.**

2\. Amend section 54.724(a) by revising paragraph 54.724(a) to read as
follows:

\(a\) The Common Carrier Bureau shall, within ninety (90) days, take
action in response to a request for review of an Administrator decision
that is properly before it. The Common Carrier Bureau may extend the
time period for taking action on a request for review of an
Administrator decision for a period of up to ninety days. The Commission
may also, at any time, extend the time period for taking action on a
request for review of an Administrator decision pending before the
Common Carrier Bureau.

\* \* \* \* \*

[^1]: The Commission\'s rules provide that any person aggrieved by an
    action taken by a division of USAC may seek review from the
    Commission. 47 C.F.R. § 54.719(c).

[^2]: 47 C.F.R. § 54.724(a).

[^3]: *Id. See also Changes to the Board of Directors of the National
    Exchange Carrier Association, Inc., Federal‑State Joint Board on
    Universal Service*, Third Report and Order and Fourth Order on
    Reconsideration in CC Docket No. 97‑21, Eighth Order on
    Reconsideration in CC Docket No. 96‑45, 13 FCC Rcd 25058,
    25092-25093, para. 68 (1998) (*Eighth Order on Reconsideration*).

[^4]: 47 C.F.R. § 54.724(a); *Eighth Order on Reconsideration,* 13 FCC
    Rcd at 25093-25094, para. 70.

[^5]: 47 C.F.R. § 54.724(a).

[^6]: 47 C.F.R. § 54.724(b).

[^7]: 47 C.F.R. §§ 54.724(a), (b).

[^8]: 47 C.F.R. § 54.724(b).

[^9]: *See* The Communications Act of 1934, as amended, 45 U.S.C. §§
    155(c)(4), 405; 47 C.F.R. §§ 1.106(f), 1.115(d).

[^10]: 47 C.F.R. §§ 1.106(f), 1.115(d); *see also* 45 U.S.C. § 405.

[^11]: *Eighth Order on Reconsideration*, 13 FCC Rcd at 25093-25094,
    para. 70.