§ 54.679   Election to offset support against annual universal service fund
contribution.

   (a) A service provider that contributes to the universal service support
   mechanisms under subpart H of this part and also provides services eligible
   for support under this subpart to eligible health care providers may, at the
   election of the contributor:

   (1) Treat the amount eligible for support under this subpart as an offset
   against the contributor's universal service support obligation for the year
   in which the costs for providing eligible services were incurred; or

   (2) Receive direct reimbursement from the Administrator for that amount.

   (b) Service providers that are contributors shall elect in January of each
   year the method by which they will be reimbursed and shall remain subject to
   that method for the duration of the calendar year. Any support amount that
   is owed a service provider that fails to remit its monthly universal service
   contribution obligation, however, shall first be applied as an offset to
   that contributor's contribution obligation. Such a service provider shall
   remain subject to the offsetting method for the remainder of the calendar
   year in which it failed to remit its monthly universal service obligation. A
   service provider that continues to be in arrears on its universal service
   contribution obligations at the end of a calendar year shall remain subject
   to the offsetting method for the next calendar year.

   (c) If a service provider providing services eligible for support under this
   subpart  elects  to treat that support amount as an offset against its
   universal service contribution obligation and the total amount of support
   owed exceeds its universal service obligation, calculated on an annual
   basis, the service provider shall receive a direct reimbursement in the
   amount of the difference. Any such reimbursement due a service provider
   shall be provided by the Administrator no later than the end of the first
   quarter of the calendar year following the year in which the costs were
   incurred  and  the  offset against the contributor's universal service
   obligation was applied.

   [ 78 FR 13992 , Mar. 1, 2013]

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