I think this Bulletin Play resolves the issue.
2009 Bulletin #3, Play 8:
Team A executes an on-side kick at its 30-yard line. At Team A’s 36-yard line A65 blocks B23 in the front at the waist, and then A25 touches the ball at the A-38.
(a) The ball rolls to the A-42 where it is recovered by A88.
(b) B42 recovers the ball while grounded at the 50-yard line.
RULING: Illegal touching by A25 and a foul by A65 for blocking before being eligible to touch the ball. (a) Team A is in legal possession of the ball at the A-42, so Team B has two options: they may take the ball at the spot of the illegal touching (the A-38), or they may have Team A re-kick at the A-25 following the five-yard penalty for the illegal block by A65. (b) Team B has three options: take the ball at the spot of the illegal touching (the A-38); have Team A re-kick at the A-25 following the five-yard penalty for the illegal block by A65; or have the five-yard penalty enforced at the dead-ball spot, the 50-yard line (they will not choose this last option). NOTE: The illegal-touching spot is not an enforcement spot since the illegal-touching privilege is canceled if the penalty is accepted. (6-1-2-g, 6-1-3, 6-1-8).