Sec. 69.614  Independent subsidiary Board of Directors.

    (a) The independent subsidiary described in Sec. 69.613(a) shall 
have a Board of Directors separate from the association's Board of 
Directors. Except as expressly permitted, the association's Board of 
Directors shall be prohibited from participating in the functions of the 
independent subsidiary.
    (b) The independent subsidiary's Board of Directors shall consist of 
17 directors:
    (1) Three directors shall represent incumbent local exchange 
carriers, with one director representing the Bell Operating Companies 
and GTE, one director representing ILECs (other than the Bell Operating 
Companies) with annual operating revenues in excess of $40 million, and 
one director representing ILECs (other than the Bell Operating 
Companies) with annual operating revenues of $40 million or less;
    (2) Two directors shall represent interexchange carriers, with one 
director representing interexchange carriers with more than $3 billion 
in annual operating revenues and one director representing interexchange 
carriers with annual operating revenues of $3 billion or less;
    (3) One director shall represent commercial mobile radio service 
(CMRS) providers;
    (4) One director shall represent competitive local exchange 
carriers;

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    (5) One director shall represent cable operators;
    (6) One director shall represent information service providers;
    (7) Three directors shall represent schools that are eligible to 
receive discounts pursuant to Sec. 54.501 of this chapter;
    (8) One director shall represent libraries that are eligible to 
receive discounts pursuant to Sec. 54.501 of this chapter;
    (9) One director shall represent rural health care providers that 
are eligible to receive supported services pursuant to Sec. 54.601 of 
this chapter;
    (10) One director shall represent low-income consumers;
    (11) One director shall represent state telecommunications 
regulators; and
    (12) One director shall represent state consumer advocates.
    (c) The industry and non-industry groups that will be represented on 
the independent subsidiary's Board of Directors as specified in 
Sec. 69.614(b)(1) through (12) shall nominate by consensus the 
independent subsidiary's directors. Each of these industry and non-
industry groups shall submit the name of its nominee for a seat on the 
independent subsidiary's Board of Directors, along with relevant 
professional and biographical information about the nominee, to the 
Chairman of the Federal Communications Commission within 14 calendar 
days of the publication of these rules in the Federal Register. Only 
members of the industry or non-industry group that a Board member will 
represent may submit a nomination for that position.
    (d) The Chairman of the Federal Communications Commission shall 
review the nominations submitted by industry and non-industry groups and 
shall select the independent subsidiary's Board of Directors. If an 
industry or non-industry group does not reach consensus on a nominee or 
fails to submit a nomination for a position on the independent 
subsidiary's Board of Directors, the Chairman of the Federal 
Communications Commission shall select an individual to represent such 
group on the independent subsidiary's Board of Directors.
    (e) The directors on the independent subsidiary's Board shall be 
appointed for two-year terms and may be reappointed for subsequent terms 
pursuant to the initial nomination and appointment process described in 
paragraph (d) of this section. If a Board member vacates his or her seat 
prior to the completion of his or her term, the independent subsidiary 
will notify the Common Carrier Bureau of such vacancy, and a successor 
will be chosen pursuant to the initial nomination and appointment 
process described in paragraph (d) of this section
    (f) The independent subsidiary's Board of Directors shall convene 
its first meeting within 14 calendar days of the appointment of the 
directors to the independent subsidiary's Board.
    (g) All meetings of the independent subsidiary's Board of Directors 
shall be open to the public and held in Washington, D.C.
    (h) Each member of the independent subsidiary's Board of Directors 
shall be entitled to receive reimbursement for expenses directly 
incurred as a result of his or her participation on the independent 
subsidiary's Board of Directors.

[ 62 FR 41307 , Aug. 1, 1997]