§  54.9   Prohibition on use of funds.

   (a) USF support restriction No universal service support may be used to
   purchase, obtain, maintain, improve, modify, or otherwise support any
   equipment or services produced or provided by any company posing a
   national security threat to the integrity of communications networks or
   the communications supply chain.

   (b) Designation of Entities Subject to Prohibition. (1) When the Public
   Safety and Homeland Security Bureau (PSHSB) determines, either sua
   sponte or in response to a petition from an outside party, that a
   company poses a national security threat to the integrity of
   communications networks or the communications supply chain, PSHSB shall
   issue a public notice advising that such designation has been proposed
   as well as the basis for such designation.

   (2) Upon issuance of such notice, interested parties may file comments
   responding to the initial designation, including proffering an
   opposition to the initial designation. If the initial designation is
   unopposed, the entity shall be deemed to pose a national security
   threat 31 days after the issuance of the notice. If any party opposes
   the initial designation, the designation shall take effect only if
   PSHSB determines that the affected entity should nevertheless be
   designated as a national security threat to the integrity of
   communications networks or the communications supply chain. In either
   case, PSHSB shall issue a second public notice announcing its final
   designation and the effective date of its final designation. PSHSB
   shall make a final designation no later than 120 days after release of
   its initial determination notice. PSHSB may, however, extend such
   120-day deadline for good cause.

   (3) PSHSB will act to reverse its designation upon a finding that an
   entity is no longer a threat to the integrity of communications
   networks or the communications supply chain. A designated company, or
   any other interested party, may submit a petition asking PSHSB to
   remove a designation. PSHSB shall seek the input of Executive Branch
   agencies and the public upon receipt of such a petition. If the record
   shows that a designated company is no longer a national security
   threat, PSHSB shall promptly issue an order reversing its designation
   of that company. PSHSB may dismiss repetitive or frivolous petitions
   for reversal of a designation without notice and comment. If PSHSB
   reverses its designation, PSHSB shall issue an order announcing its
   decision along with the basis for its decision.

   (4) PSHSB shall have discretion to revise this process or follow a
   different process if appropriate to the circumstances, consistent with
   providing affected parties an opportunity to respond and with any need
   to act expeditiously in individual cases.

   [ 85 FR 249 , Jan. 3, 2020]