Sec. 69.616  Independent subsidiary functions.

    (a) The independent subsidiary shall be solely responsible for 
administering the universal service support mechanisms for high-cost 
areas and low-income consumers, including billing contributors, 
collecting contributions to the universal service support mechanisms, 
and disbursing universal service support funds. The independent 
subsidiary also shall be required to perform any other duties of the 
Administrator that relate to the billing, collection, and disbursement 
of funds that are specified elsewhere in the Commission's universal 
service rules.
    (b) With respect to the universal service support mechanisms for 
schools, libraries, and rural health care providers, the independent 
subsidiary shall be responsible for billing contributors to the 
universal service support mechanisms, collecting contributions to the 
universal service support mechanisms, and disbursing universal service 
support funds within 20 days following receipt of authorization to 
disburse such funds from the Schools and Libraries Corporation and Rural 
Health Care Corporation.
    (c) The independent subsidiary may advocate positions before the 
Commission and its staff only on administrative matters relating to the 
universal service support mechanisms.
    (d) The independent subsidiary shall maintain books of account 
separate from those of the association. The independent subsidiary's 
books of account shall be maintained in accordance with generally 
accepted accounting principles. The independent subsidiary may borrow 
start-up funds from NECA. Such funds may not be drawn from the 
Telecommunications Relay Services (TRS) fund or TRS administrative 
expense accounts.

[ 62 FR 41308 , Aug. 1, 1997]