§  54.609   Designation of Consortium Leader.

   (a) Identifying a Consortium Leader. Each consortium seeking support
   under the Healthcare Connect Fund Program must identify an entity or
   organization that will lead the consortium (the "Consortium Leader").

   (b) Consortium Leader eligibility. The Consortium Leader may be the
   consortium itself (if it is a distinct legal entity); an eligible
   health care provider participating in the consortium; or a state
   organization, public sector (governmental) entity (including a Tribal
   government entity), or non-profit entity that is ineligible for
   Healthcare Connect Fund Program support. Ineligible state
   organizations, public sector entities, or non-profit entities may serve
   as Consortium Leaders or provide consulting assistance to consortia
   only if they do not participate as potential service providers during
   the competitive bidding process. An ineligible entity that serves as
   the Consortium Leader must pass on the full value of any discounts,
   funding, or other program benefits secured to the consortium members
   that are eligible health care providers.

   (c) Consortium Leader responsibilities. The Consortium Leader's
   responsibilities include the following:

   (1) Legal and financial responsibility for supported activities. The
   Consortium Leader is the legally and financially responsible entity for
   the activities supported by the Healthcare Connect Fund Program. By
   default, the Consortium Leader is the responsible entity if audits or
   other investigations by Administrator or the Commission reveal
   violations of the Act or Commission rules, with individual consortium
   members being jointly and severally liable if the Consortium Leader
   dissolves, files for bankruptcy, or otherwise fails to meet its
   obligations. Except for the responsibilities specifically described in
   paragraphs (c)(2) through (6) in this section, consortia may allocate
   legal and financial responsibility as they see fit, provided that this
   allocation is memorialized in a formal written agreement between the
   affected parties (i.e., the Consortium Leader, and the consortium as a
   whole and/or its individual members), and the written agreement is
   submitted to the Administrator for approval with, or prior to, the
   request for services. Any such agreement must clearly identify the
   party(ies) responsible for repayment if the Administrator, at a later
   date, seeks to recover disbursements of support to the consortium due
   to violations of program rules.

   (2) Point of contact for the FCC and Administrator. The Consortium
   Leader is responsible for designating an individual who will be the
   "Project Coordinator" and serve as the point of contact with the
   Commission and the Administrator for all matters related to the
   consortium. The Consortium Leader is responsible for responding to
   Commission and Administrator inquiries on behalf of the consortium
   members throughout the application, funding, invoicing, and
   post-invoicing period.

   (3) Typical applicant functions, including forms and certifications.
   The Consortium Leader is responsible for submitting program forms and
   required documentation and ensuring that all information and
   certifications submitted are true and correct. The Consortium Leader
   must also collect and retain a Letter of Agency (LOA) from each member,
   pursuant to § 54.610.

   (4) Competitive bidding and cost allocation. The Consortium Leader is
   responsible for ensuring that the competitive bidding process is fair
   and open and otherwise complies with Commission requirements. If costs
   are shared by both eligible and ineligible entities, the Consortium
   Leader must ensure that costs are allocated in a manner that ensures
   that only eligible entities receive the benefit of program discounts.

   (5) Invoicing. The Consortium Leader is responsible for notifying the
   Administrator when supported services have commenced and for submitting
   invoices to the Administrator.

   (6) Recordkeeping, site visits, and audits. The Consortium Leader is
   also responsible for compliance with the Commission's recordkeeping
   requirements and for coordinating site visits and audits for all
   consortium members.