Effective October 1, 2004, NECA, the TRS Fund Administrator, implemented new collections and disbursement procedures as a result of further implementation of the Federal Debt Collection and Improvement Act of 1996 (DCIA) by the Federal Communications Commission (FCC).* The new rules, codified at 47 C.F.R. Parts 0 and 1, contain specific provisions at §§ 1.1112, 1.1116, 1.1161, 1.1167, and 1.1910, and include a rule commonly referred to as the “Red Light Rule.”  Under the Red Light Rule, NECA TRS will not disburse any federal benefits to an entity that shares the same taxpayer identification number (TIN) as an entity that has delinquent debt owed to the Commission or its reporting components until such debt is paid, formally appealed, or until other arrangements satisfactory to the FCC are made for payment.  For Red Light Rule purposes, “entity” includes TRS Fund contributors and TRS service providers who are delinquent to the TRS Fund.

NECA will coordinate closely with the FCC and with the administrator of the Universal Service Fund (USF), the North American Numbering Plan (NANP) Fund Billing and Collection Agent, and the NANP Pooling Administrator (PA). The FCC has determined that entities with any unpaid delinquent obligations to the FCC or to any of these funds are subject to the Red Light Rule.

NECA TRS, the FCC, and the other fund administrators, are committed to collecting, on a timely basis, all outstanding debts. A debt or claim by the government is delinquent if the full amount has not been paid by the date specified in the initial written demand for payment.  A written demand for payment includes an advance billing notice, or monthly invoice, with a specified payment due date.  With respect to the TRS Fund, any entity who owes money to TRS will be considered delinquent if payment is not made by the due date specified on the annual or monthly invoice. When an entity’s account becomes delinquent, that entity, as well as any other entity with a FCC Registration Number (FRN) associated through a shared TIN, will be considered in “red light” status.  NECA TRS will not make any disbursements until the delinquency has been satisfied by the entity or until arrangements for payment satisfactory to the FCC, have been made.  NECA TRS will notify the FCC and the other supporting funds on a daily basis of all TINs that are in red light status.  Any pending benefits to entities associated to this TIN will be withheld.  Delinquent entities shall receive a notice that details the operation of the Red Light Rule and that requires payment or satisfactory proof that payment has already been made.  Entities shall have 30 days from the date of that notice to pay the delinquency or make other arrangements satisfactory to the FCC for payment.  Failure to do so will result in the dismissal of any pending request before the FCC, and the initiation of further debt collection efforts. 

NECA TRS will receive red light status information from the FCC and the other funds on a daily basis and will withhold any pending disbursements to entities associated with a delinquent TIN.  Until NECA TRS is notified by the FCC or the other funds that the debt has been satisfied, no pending disbursements will be issued.

NECA TRS may also offset delinquent debt against pending disbursements.  If an entity is delinquent and a payment is pending to an entity sharing the TIN of the delinquent entity, NECA TRS may apply the amount of any pending disbursements towards the delinquent balance.

At the time that a disbursement is held because an entity is in red light status, NECA TRS plans to send the entity and/or Service Provider an e-mail notification.  If NECA TRS uses a pending disbursement to offset a TRS Fund delinquency, NECA TRS plans to notify the delinquent entity and/or Service Provider.

In order to avoid losing benefits from the TRS Fund and the FCC, NECA encourages all entities to pay their TRS Fund invoices no later than the due date.   For companies invoiced annually, payments are due July 26th.  Monthly payments are due the 26th of each month.

*On September 27, 2004, the FCC delayed enforcement of the Red Light Rule until November 1, 2004.