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 SEPARATE  STATEMENT  OF  CHAIRMAN  MICHAEL  K.  POWELL 
 Re:  Schools  and  Libraries  Universal  Service  Support  Mechanism,  Third  Report  and  Order  and  Second  Further  Notice  of  Proposed  Rulemaking,  CC  Docket  No.  02-  6 
 Today  marks  another  milestone  in  our  ongoing  and  systematic  efforts  to  improve  the  effectiveness  of  the  schools  and  libraries  fund.  Today,  we  adopt  a  variety  of 
 measures  designed  to  simplify  fund  administration,  ensure  the  equitable  distribution  of  monetary  support,  and  to  protect  against  waste,  fraud,  and  abuse.  The  rules  we  adopt 
 today  should  increase  the  accuracy  and  effectiveness  of  disbursements  by,  for  example,  precluding  eligible  entities  from  upgrading  or  replacing  internal  connections  with 
 universal  service  funds  on  a  yearly  basis,  clarifying  what  constitutes  permissible  maintenance  costs,  and  limiting  the  transfer  of  equipment  purchased  with  universal 
 service  discounts. 
 Many  of  the  actions  we  take  today  draw  from  previous  events,  including  the  May  2003  public  forum  on  universal  service  reform  and  the  activities  of  the  Universal  Service 
 Administrative  Company’s  Waste,  Fraud,  and  Abuse  Task  Force.  Taken  together,  these  measures  advance  our  mission  of  ensuring  efficient,  accurate  and  timely  fund 
 disbursements  to  promote  the  nation’s  universal  service  objectives.  Yet  our  task  is  not  yet  complete.  As  indicated  in  our  Further  Notice,  the  agency  seeks  comment  on  how  to 
 further  enhance  the  ability  of  limited  funds  to  do  the  most  good  for  the  most  Americans. 
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