Sec. 69.619  Schools and Libraries Corporation functions.

    (a) The Schools and Libraries Corporation shall perform the 
following functions as they relate to the support mechanisms for 
eligible schools and libraries:
    (1) administering the application process for schools and libraries 
including the dissemination, processing, and review of applications for 
service from schools and libraries;
    (2) creating and maintaining a website on which applications for 
services will be posted on behalf of schools and libraries;
    (3) performing outreach and public education functions;
    (4) reviewing bills for services that are submitted by schools and 
libraries and on which service providers designate the amount of 
universal service support they should receive for services rendered and 
on which schools and libraries confirm that they have received such 
services;
    (5) monitoring demand for the purpose of determining when the $2 
billion trigger has been reached in the case of the schools and 
libraries program;

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    (6) submitting to the Commission all quarterly projections of demand 
and administrative expenses, as described in Sec. 54.709(a)(3) of this 
chapter;
    (7) informing the independent subsidiary, as quickly as possible, 
but no later than 20 days following the Schools and Libraries 
Corporation's receipt of the bills for services, of the amount of 
universal service support to be disbursed to service providers;
    (8) authorizing the performance of audits of schools and libraries 
beneficiaries of universal service support; and
    (9) any other function relating to the administration of the schools 
and libraries programs that is not specifically assigned to the 
independent subsidiary.
    (b) The Schools and Libraries Corporation shall implement the rules 
of priority in accordance with Sec. 54.507(f) of this chapter.
    (c) The Schools and Libraries Corporation may review and certify 
schools' and libraries' technology plans when a state agency has 
indicated that it will be unable to review such plans within a 
reasonable time.
    (d ) The Schools and Libraries Corporation shall classify schools 
and libraries as urban or rural and use the discount matrix established 
in Sec. 54.505(c) of this chapter to set the discount rate to be applied 
to services purchased by eligible schools and libraries.
    (e) The Schools and Libraries Corporation shall maintain books of 
account separate from those of the association, the independent 
subsidiary, and the Rural Health Care Corporation. The Schools and 
Libraries Corporation's books of account shall be maintained in 
accordance with generally accepted accounting principles.
    (f ) The Schools and Libraries Corporation may borrow start-up funds 
from the association or the independent subsidiary, but such funds may 
not come from the Telecommunications Relay Services (TRS) fund or TRS 
administrative expense accounts.
    (g) The Schools and Libraries Corporation shall make available to 
whomever the Commission directs, free of charge, any and all 
intellectual property, including, but not limited to, all records and 
information generated by or resulting from its role in administering the 
schools and libraries program, if its participation in administering the 
schools and libraries program ends. The Schools and Libraries 
Corporation must specify any property it proposes to exclude from the 
foregoing types of property based on the existence of such property 
prior to the incorporation of the Schools and Libraries Corporation.

[ 62 FR 41309 , Aug. 1, 1997]