Federal Register / Vol. 62, No. 208 / Tuesday, October 28, 1997 / Rules and Regulations 55759

accompanying argument and

discussion) be granted.

Order of the Librarian

Having duly considered the

recommendation of the Register of

Copyrights regarding the Report of the

Copyright Arbitration Royalty Panel in

the matter of the adjustment of the

royalty rates for the satellite carrier

compulsory license, 17 U.S.C. 119, the

Librarian of Congress fully endorses and

adopts here recommendation to accept

the Panel’s decision in part and reject it

in part. For the reasons stated in the

Register’s recommendation, the

Librarian is exercising his authority

under 17 U.S.C. 802(f) and is issuing

this order, and amending the rules of

the Library and the Copyright Office,

announcing the new royalty rates for the

section 119 compulsory license.

The Librarian is also dismissing the

petition to modify filed by EchoStar,

and is dismissing the affidavits

contained in attachment A of SBCA’s

petition to modify, and the

accompanying discussion and

argument.

List of Subjects in 37 CFR Part 258

Copyright, Satellites, Television.

Final Regulation

In consideration of the foregoing, the

Library of Congress amends part 258 of

37 CFR as follows:

PART 258—ADJUSTMENT OF

ROYALTY FEE FOR SECONDARY

TRANSMISSIONS BY SATELLITE

CARRIERS

1. The authority citation for part 258

continues to read as follows:

Authority: 17 U.S.C. 702, 802.

2. Section 258.3 is revised to read as

follows:

§ 258.3 Royalty fee for secondary

transmission of broadcast stations by

satellite carriers.

(a) Commencing May 1, 1992, the

royalty rate for the secondary

transmission of broadcast stations for

private home viewing by satellite

carriers shall be as follows:

(1) 17.5 cents per subscriber per

month for superstations.

(2) 14 cents per subscriber per month

for superstations whose signals are

syndex-proof, as defined in § 258.2.

(3) 6 cents per subscriber per month

for network stations and noncommercial

educational stations.

(b) Commencing January 1, 1998, the

royalty fee for secondary transmission of

broadcast stations for private home

viewing by satellite carriers shall be as

follows:

(1) 27 cents per subscriber per month

for distant superstations.

(2) 27 cents per subscriber per month

for distant network stations.

(3) No royalty rate (zero) for a

superstation secondarily transmitted

within the station’s local market, as

defined in 17 U.S.C. 119(d)(11).

(4) No royalty rate (zero) for a network

station secondarily transmitted within

the station’s local market, as defined in

17 U.S.C. 119(d)(11), to subscribers

residing in unserved households, as

defined in 17 U.S.C. 119(d)(10).

Dated: October 23, 1997.

So Ordered.

James H. Billington,

The Librarian of Congress.

[FR Doc. 97–28543 Filed 10–27–97; 8:45 am]

BILLING CODE 1410–33–M

DEPARTMENT OF DEFENSE

DEPARTMENT OF TRANSPORTATION

Coast Guard

DEPARTMENT OF VETERANS

AFFAIRS

38 CFR Part 21

RIN 2900–AI69

Miscellaneous Educational Revisions

AGENCIES: Department of Defense,

Department of Transportation (Coast

Guard), and Department of Veterans

Affairs.

ACTION: Final rule.

SUMMARY: This document amends the

educational assistance and educational

benefit regulations of the Department of

Veterans Affairs (VA). It removes a

number of provisions that no longer

apply or otherwise have no substantive

effect, and makes other changes for the

purpose of clarification.

DATES: This final rule is effective

October 28, 1997.

FOR FURTHER INFORMATION CONTACT: June

C. Schaeffer, Assistant Director for

Policy and Program Administration,

Education Service, Veterans Benefits

Administration, 202–273–7187.

SUPPLEMENTARY INFORMATION: This

document affects 38 CFR part 21,

subparts C, D, G, H, K, and L. It removes

provisions that are obsolete, duplicative,

or otherwise without substantive effect,

and makes changes for the purpose of

clarification. This document makes no

substantive changes. Accordingly, there

is a basis for dispensing with prior

notice and comment and delayed

effective date provisions of 5 U.S.C. 552

and 553.

The Department of Defense (DOD) and

VA are jointly issuing this final rule

insofar as it relates to the Post-Vietnam

Era Educational Assistance Program

(VEAP) and the Educational Assistance

Test Program (EATP). These programs

are funded by DOD and administered by

VA. DOD, the Department of

Transportation (Coast Guard), and VA

are jointly issuing this final rule insofar

as it relates to the Montgomery GI Bill—

Selected Reserve program. This program

is funded by DOD and the Coast Guard,

and is administered by VA. The

remainder of this final rule is issued

solely by VA.

The Secretary of Defense, the

Commandant of the Coast Guard, and

Acting Secretary of Veterans Affairs

hereby certify that this final rule will

not have a significant economic impact

on a substantial number of small entities

as they are defined in the Regulatory

Flexibility Act, 5 U.S.C. 601–612. This

final rule makes no substantive changes.

Pursuant to 5 U.S.C. 605(b), this final

rule, therefore, is exempt from the

initial and final regulatory flexibility

analyses requirements of sections 603

and 604.

The Catalog of Federal Domestic

Assistance numbers for programs

affected by this final rule are 64.117,

64.120, and 64.124. This document also

affects the Montgomery GI Bill—

Selected Reserve program which has no

Catalog of Federal Domestic Assistance

number.

List of Subjects in 38 CFR Part 21

Administrative practice and

procedure, Armed forces, Civil rights,

Claims, Colleges and universities,

Conflict of interests, Education,

Employment, Grant programseducation, Grant programs-veterans,

Health care, Loan programs-education,

Loan programs-veterans, Manpower

training programs, Reporting and

recordkeeping requirements, Schools,

Travel and transportation expenses,

Veterans, Vocational education,

Vocational rehabilitation.
55760 Federal Register / Vol. 62, No. 208 / Tuesday, October 28, 1997 / Rules and Regulations

Approved: July 22, 1997.

Hershel W. Gober,

Acting Secretary of Veterans Affairs.

Approved: October 2, 1997.

Allan L. Brendsel,

Colonel USA, Principal Deputy, Deputy

Assistant Secretary (Military Personnel

Policy).

Approved: October 9, 1997.

G.E. Woolever,

Rear Admiral, U.S. Coast Guard, Assistant

Commandant for Human Resources.

For the reasons set forth in the

preamble, 38 CFR part 21, subparts C, D,

G, H, K, and L, is amended as set forth

below.

PART 21—VOCATIONAL

REHABILITATION AND EDUCATION

Subpart C—Survivors’ and

Dependents’ Educational Assistance

under 38 U.S.C. Chapter 35

1. The authority citation for part 21,

subpart C, continues to read as follows:

Authority: 38 U.S.C. 501(a), 512, 3500–

3566, unless otherwise noted.

§ 21.3041 [Amended]

2. In § 21.3041, paragraph (e)(3) is

amended by removing ‘‘§ 21.4135(o)’’

and adding, in its place, ‘‘§ 21.3135(h)’’;

and paragraph (e)(4) is amended by

removing ‘‘§ 21.4135(o)’’ and adding, in

its place, ‘‘§ 21.3135(i)’’.

3. In § 21.3045, paragraph (i)(3)(ii) is

amended by removing ‘‘paragraph

(h)(3)(i)’’ and adding in its place,

‘‘paragraph (i)(3)(i)’’; and paragraph (f)

is revised to read as follows:

§ 21.3045 Entitlement charges.

* * * * *

(f) Entitlement charge for pursuit

solely by independent study. For

enrollments in terms, quarters, or

semesters that begin after June 30, 1993,

VA will make charges against the

entitlement of an eligible person in the

manner prescribed by paragraph (e) of

this section, if he or she is pursuing a

program of education solely by

independent study. For all other

enrollments where the eligible person is

pursuing a program of education solely

by independent study, the computation

will be made as though the eligible

person’s training were one-quarter time.

(Authority: 38 U.S.C. 3482(b), 3532(a))

* * * * *

Subpart D—Administration of

Educational Assistance Programs

4. The authority citation for part 21,

subpart D, is revised to read as follows:

Authority: 10 U.S.C. ch. 1606; 38 U.S.C.

501(a), chs. 30, 32, 34, 35, 36, unless

otherwise noted.

§ 21.4009 [Amended]

5. In § 21.4009, paragraph (b)(1)

introductory text, is amended by

removing ‘‘in potentially’’ and adding,

in its place, ‘‘is potentially’’. 6. In § 21.4200, paragraph (g) is

revised to read as follows:

§ 21.4200 Definitions.

* * * * *

(g) Standard class session. The term

standard class session means the time

an educational institution schedules for

class each week in a regular quarter or

semester for one quarter or one semester

hour of credit. It is not less than 1 hour

(or one 50-minute period) of academic

instruction, 2 hours (or two 50-minute

periods) of laboratory instruction, or 3

hours (or three 50-minute periods) of

workshop training.

(Authority: 38 U.S.C. 3688(c))

* * * * *

§ 21.4201 [Amended]

7. In § 21.4201, paragraph (h)

introductory text is amended by

removing ‘‘Vocational Rehabilitation

and’’ both times it appears; and

paragraph (h)(2) is amended by

removing ‘‘Vocational Rehabilitation

and’’.

§ 21.4233 [Amended]

8. In § 21.4233, paragraph (b)(3)

introductory text is amended by

removing ‘‘(b)(1)’’ and adding, in its

place, ‘‘(b)(2)’’; paragraph (b)(3)(ii) is

amended by removing ‘‘(b)(2)(i)’’ and

adding, in its place, ‘‘(b)(3)(i)’’;

paragraph (b)(4) introductory text is

amended by removing ‘‘(b)(1)’’ and

adding, in its place, ‘‘(b)(2)’’; and

paragraph (b)(4)(ii) is amended by

removing ‘‘(b)(3)(i)’’ and adding, in its

place, ‘‘(b)(4)(i)’’.

§ 21.4250 [Amended]

9. In § 21.4250, paragraph (a)(1) is

amended by removing ‘‘Chapter’’ and

adding, in its place, ‘‘38 U.S.C.

chapter’’, and by removing ‘‘Chapters 34

and’’ and adding, in its place, ‘‘38

U.S.C. chapter’’; paragraph (a)(2) is

amended by removing ‘‘Chapter’’ each

place it appears, and adding, in its

place, ‘‘38 U.S.C. chapter’’; paragraph

(c)(1) is amended by removing

‘‘Director’’ and adding, in its place,

‘‘Director,’’, by removing ‘‘Education’’

and adding, in its place, ‘‘Counseling’’,

and by removing ‘‘Chapter’’ and adding,

in its place, ‘‘38 U.S.C. chapter’’;

paragraph (c)(2) is amended by

removing ‘‘Vocational Rehabilitation

and’’; paragraph (c)(2)(ii) is amended by

removing ‘‘34, 35’’ and adding, in its

place ‘‘35,’’; paragraph (c)(2)(iii) is

amended by removing ‘‘38 U.S.C.

Chapter 32, 34 or 35’’ and adding, in its

place, ‘‘10 U.S.C. chapter 1606 or 38

U.S.C. chapter 30, 32, or 35’’; and

paragraph (c)(2)(iv) is amended by

removing ‘‘Chapter’’ and adding, in its

place, ‘‘chapter’’.

10. In § 21.4270, the heading for

paragraph (c) and paragraph (c),

footnote 2 are revised to read as follows:

§ 21.4270 Measurement of courses.

* * * * *

(c) Undergraduate, graduate,

professional, and on-the-job training

courses.* * *

2When the institution certifies that all

undergraduate students enrolled for a

minimum of 12 or 13 semester hours or the

equivalent are charged full-time tuition, or

considered full time for other administrative

purposes, such minimum hours will

establish the criteria for full-time

measurement. When 12 hours is properly

certified as full time, VA will measure 9

through 11 hours as 3⁄4 time, 6 through 8

hours as 1⁄2 time, 4 through 5 hours as less

than 1⁄2 time and more than 1⁄4 time, and 1

through 3 hours as 1⁄4 time or less. VA will

measure all other undergraduate courses as

indicated in the table for undergraduate or

professional courses, as appropriate, but

when 13 credit hours or the equivalent is

certified as full time, 3⁄4 time will be 10

through 12 hours. When, in accordance with

§ 21.4273(a), a responsible official of a school

certifies that a lesser number of hours

constitute full time, 3⁄4 time, 1⁄2 time, less

than 1⁄2 time and more than 1⁄4 time, or 1⁄4

time or less, VA will accept the certification

for measurement purposes.

To meet criteria for full-time measurement

in standard collegiate courses which include

required noncredit deficiency courses, in the

absence of a certification under § 21.4272(k),

VA will convert the noncredit deficiency

courses on the basis of the applicable

measurement criteria, as follows: 18 or 22

clock hours, 4 ‘‘Carnegie Units,’’ or 12, 13, or

14 (as appropriate) semester hours equal full

time. The credit-hour equivalent of such

noncredit courses may constitute any portion

of the required hours for full-time

measurement.

* * * * *

Subpart G—Post Vietnam Era

Veterans’ Educational Assistance

Under 38 U.S.C. Chapter 32

11. The authority citation for part 21,

subpart G, is revised to read as follows:

Authority: 38 U.S.C. 501(a), ch. 32, unless

otherwise noted.

§ 21.5270 [Amended]

12. In § 21.5270, paragraph (a) is

amended by removing ‘‘of this part’’ and

by removing ‘‘chapter’’ and adding, in

its place, ‘‘38 U.S.C. chapter’’; paragraph

(g) is amended by removing ‘‘progress

and conduct’’ and adding, in its place,
Federal Register / Vol. 62, No. 208 / Tuesday, October 28, 1997 / Rules and Regulations 55761

‘‘progress, conduct, and attendance’’;

and paragraph (i) is amended by

removing ‘‘correspondence; residence’’

and adding, in its place

‘‘correspondence-residence’’.

Subpart H—Educational Assistance

Test Program

13. The authority citation for subpart

H is revised to read as follows:

Authority: 10 U.S.C. ch. 107; 38 U.S.C.

501(a), 3695, 5101, 5113, 5303A; 42 U.S.C.

2000; sec. 901, Pub. L. 96–342, 94 Stat. 1111–

1114, unless otherwise noted.

§ 21.5901 [Amended]

14. In § 21.5901, paragraph (a) is

amended by removing ‘‘Chief Benefits

Director of VA’’ and adding, in its place,

‘‘Under Secretary for Benefits’’, by

removing ‘‘Vocational Rehabilitation

and’’, and by removing ‘‘Chapter’’ and

adding, in its place, ‘‘chapter’; and

paragraph (b) is amended by removing

‘‘Chief Benefits Director’’ and adding, in

its place, ‘‘Under Secretary for

Benefits’’.

Subpart K—All Volunteer Force

Educational Assistance Program

(Montgomery GI Bill—Active Duty)

15. The authority citation for subpart

K is revised to read as follows:

Authority: 38 U.S.C. 501(a), chs. 30, 36,

unless otherwise noted.

16. In § 21.7020, the introductory text

is amended by removing ‘‘of this part’’;

paragraph (a)(1)(i) is amended by

removing ‘‘of this part’’; paragraph

(a)(2)(i) is amended by removing

‘‘§ 21.7042 or § 21.7044 of this part’’ and

adding, in its place, ‘‘§ 21.7042,

§ 21.7044, or § 21.7045’’; and paragraph

(b)(25)(i)(G) is revised to read as follows:

§ 21.7020 Definitions.

* * * * *

(b) * * *

(25) * * *

(i) * * *

(G) A flight training course beginning

on or after September 30, 1990.

* * * * *

§ 21.7044 [Amended]

17. In § 21.7044, paragraph (c) is

removed; and paragraphs (d) and (e) are

redesignated as paragraphs (c) and (d),

respectively.

18. In § 21.7140, paragraph (c)(1)(iii)

is removed; paragraph (c)(1)(i) is

amended by removing ‘‘§ 21.7152;’’ and

adding, in its place, ‘‘§ 21.7152; and’’;

paragraph (c)(1)(ii) is amended by

removing ‘‘enrollment; and’’ and

adding, in its place, ‘‘enrollment.’’;

paragraph (d)(1) is amended by

removing ‘‘Ch.’’ and adding, in its place,

‘‘chapter’’, and by removing ‘‘in the

same manner as they are applied in the

administration of chapter 34’’;

paragraph (e)(2) is amended by

removing, ‘‘in the same manner as they

are applied in the administration of

chapters 34 and 36’’; and the authority

citations for paragraphs (c)(1), (d), (e),

and (g) are revised to read as follows:

§ 21.7140 Certifications and release of

payments.

* * * * *

(c) * * *

(1) * * *

(Authority: 38 U.S.C. 3680(g))

* * * * *

(d) * * *

(Authority: 38 U.S.C. 3034, 3680)

(e) * * *

(Authority: 38 U.S.C. 3034, 3680)

(g) * * *

(Authority: 38 U.S.C. 5121)

19. Section 21.7144 is revised to read

as follows:

§ 21.7144 Overpayments.

(a) Prevention of overpayments. In

administering benefits payable under 38

U.S.C. chapter 30, VA will apply the

provisions of § 21.4008. See § 21.7133.

(Authority: 38 U.S.C. 3034, 3690(b))

(b) Liability for overpayments. (1) The

amount of the overpayment of

educational assistance paid to a veteran

or servicemember constitutes a liability

of that veteran or servicemember.

(2) The amount of the overpayment of

educational assistance paid to a veteran

or servicemember constitutes a liability

of the educational institution if VA

determines that the overpayment was

made as the result of willful or

negligent:

(i) False certification by the

educational institution; or

(ii) Endorsement of a veteran’s or

servicemember’s false certification of

his or her actual attendance.

(Authority: 38 U.S.C. 3034, 3685)

(c) Recovery of overpayments. In

determining whether an overpayment

should be recovered from an

educational institution, VA will apply

the provisions of § 21.4009 (except

paragraph (a)(1)) to overpayments of

educational assistance under 38 U.S.C.

chapter 30.

(Authority: 38 U.S.C. 3034, 3685)

Cross reference: Entitlement charges. See

§ 21.7076(c).

21. Section 21.7170 is revised to read

as follows:

§ 21.7170 Course measurement.

In administering benefits payable

under 38 U.S.C. chapter 30, VA will

apply the following sections:

(a) § 21.4270 (except paragraphs (a)(2)

and (a)(3) and those portions of

paragraph (c) and footnotes dealing with

farm cooperative training)—

Measurement of courses;

(b) § 21.4272—Collegiate course

measurement;

(c) § 21.4273—Collegiate graduate;

(d) § 21.4274—Law courses; and

(e) § 21.4275—Practical training

courses; measurement.

(Authority: 38 U.S.C. 3034, 3688)

21. In § 21.7172, paragraph (a)(3)(ii) is

revised to read as follows:

§ 21.7172 Measurement of concurrent

enrollments.

* * * * *

(a) * * *

(3) * * *

(ii) VA measures the courses pursued

at the second school on a credit-hour

basis, VA will convert the credit hours

to clock hours to determine the

veteran’s training time.

(Authority: 38 U.S.C. 3034, 3688)

* * * * *

22. Section 21.7305 is revised to read

as follows:

§ 21.7305 Conflicting interests.

In administering benefits payable

under 38 U.S.C. chapter 30, VA will

apply the provisions of § 21.4005.

(Authority: 38 U.S.C. 3034, 3036)

23. Section 21.7307 is revised to read

as follows:

§ 21.7307 Examination of records.

In administering benefits payable

under 38 U.S.C. chapter 30, VA will

apply the provisions of § 21.4209.

(Authority: 38 U.S.C. 3034, 3690)

24. Section 21.7310 is revised to read

as follows:

§ 21.7310 Civil rights.

(a) Delegation of authority concerning

Federal equal opportunity laws. The

Under Secretary for Benefits is

delegated the responsibility to obtain

evidence of voluntary compliance with

Federal equal opportunity laws from

educational institutions and from

recognized national organizations

whose representatives are afforded

space and office facilities under his or

her jurisdiction. See part 18 of this

chapter. These equal opportunity laws

are:

(1) Title VI, Civil Rights Act of 1964;

(2) Title IX, Education Amendments

of 1972, as amended;
55762 Federal Register / Vol. 62, No. 208 / Tuesday, October 28, 1997 / Rules and Regulations

(3) Section 504, Rehabilitation Act of

1973; and

(4) The Age Discrimination Act of

1975.

(b) Role of State approving agencies.

In obtaining evidence from educational

institutions of compliance with Federal

equal opportunity laws, the Under

Secretary for Benefits may use the State

approving agencies as provided in

§ 21.4258(d).

(Authority: 42 U.S.C. 2000)

Subpart L—Educational Assistance for

Members of the Selected Reserve

25. The authority citation for part 21,

subpart L, continues to read as follows:

Authority: 10 U.S.C. ch. 1606; 38 U.S.C.

501(a), ch. 36, unless otherwise noted.

26. In § 21.7622, paragraph (c) is

revised to read as follows:

§ 21.7622 Courses precluded.

* * * * *

(c) Erroneous, deceptive, misleading

practices. VA will not pay educational

assistance for an enrollment in any

courses offered at an educational

institution that uses advertising, sales,

or enrollment practices that are

erroneous, deceptive, or misleading by

actual statement, omission, or

intimation. VA will apply the

provisions of § 21.4252(h) in making

these decisions with regard to

enrollments under 10 U.S.C. chapter

1606.

(Authority: 10 U.S.C. 16136(b); 38 U.S.C.

3696)

* * * * *

§ 21.7639 [Amended]

27. In § 21.7639, paragraph (b)

introductory text is amended by

removing ‘‘As is the case with reservists

who are not incarcerated,’’.

28. Section 21.7659 is revised to read

as follows:

§ 21.7659 Reporting fee.

In determining the amount of the

reporting fee payable to educational

institutions for furnishing required

reports, VA will apply the provisions of

§ 21.4206.

(Authority: 10 U.S.C. 16136(b); 38 U.S.C.

3684)

§ 21.7670 [Amended]

29. In § 21.7670, paragraph (d) is

amended by removing ‘‘§ 21.4272(a), (b),

(d), (e) (except paragraph (e)(4)), (f), (g),

and (k)’’ and adding, in its place,

‘‘§ 21.4272’’.

30. In § 21.7720, paragraphs (b)(9),

(b)(10), and (b)(11) are redesignated as

paragraphs (b)(11), (b)(12), and (b)(13),

respectively; paragraph (b)(5) is

amended by removing ‘‘policy—

nonaccredited’’ and adding, in its place

‘‘policy; nonaccredited’’; newly

redesignated paragraph (b)(11) is

amended by removing ‘‘(except

paragraphs (a), (e), and (g))’’; and

paragraphs (b)(9) and (b)(10) are added

to read as follows:

§ 21.7720 Course approval.

* * * * *

(b) * * *

(9) § 21.4261—Apprentice courses;

(10) § 21.4262—Other training on-thejob courses;

* * * * *

[FR Doc. 97–28402 Filed 10–27–97; 8:45 am]

BILLING CODE 8320–01–P

FEDERAL COMMUNICATIONS

COMMISSION

47 CFR Parts 52 and 64

[CC Docket No. 92–237; FCC 97–386]

Administration of the North American

Numbering Plan, Carrier Identification

Codes (CICs)

AGENCY: Federal Communications

Commission.

ACTION: Final rule.

SUMMARY: On October 22, 1997, the

Commission released an Order on

Reconsideration addressing carrier

identification codes (CICs). The Order

on Reconsideration determines that by

January 1, 1998 all local exchange

carriers (LECs) that provide equal access

must have completed switch changes to

recognize four-digit CICs. The transition

during which three and four-digit CICs

co-exist will end on June 30, 1998. The

Order on Reconsideration is intended to

modify in part the decision in the CICs

Second Report and Order (62 FR 19056,

published April 18, 1997) regarding the

length of the transition. The

Commission concurrently released an

Order on Application for Review and a

second further notice of Proposed

Rulemaking in the same docket.

DATES: Effective November 28, 1997.

ADDRESSES: Federal Communications

Commission, Secretary, Room 222, 1919

M Street, NW., Washington, DC 20554.

FOR FURTHER INFORMATION CONTACT:

Elizabeth Nightingale, Attorney,

Network Services Division, Common

Carrier Bureau, (202) 418–2352.

SUPPLEMENTARY INFORMATION: This

summarizes the Commission’s Order on

Reconsideration in the matter of

Administration of the North American

Numbering Plan, Carrier Identification

Codes (CICs), CC Docket 92–237,

adopted October 20, 1997, and released

October 22, 1997. The file is available

for inspection and copying during the

weekday hours of 9 a.m. to 4:30 p.m. in

the Commission’s Reference Center,

Room 239, 1919 M St., N.W.,

Washington D.C., or copies may be

purchased from the Commission’s

duplicating contractor, ITS, Inc., 1231

20th Street, N.W., Washington, D.C.

20036, phone (202) 857–3800.

Analysis of Proceeding

The Order on Reconsideration

modifies the Commission’s decision in

the CICs Second Report and Order

regarding the length of the transition

during which three and four-digit

Feature Group D CICs co-exist, and

creates a ‘‘two-step’’ end to the

transition. By January 1, 1998, the end

of the first phase, all LECs that provide

equal access must have completed

switch changes to recognize four-digit

CICs. The second phase, which ends on

June 30, 1998, is intended to allow IXCs

time to prepare their networks for, and

educate their customers about, the

replacement of three-digit CICs by fourdigit CICs. After that date, only fourdigit CICs and seven-digit carrier access

codes (CACs) will be recognized. The

Commission also affirms its decision in

the CICs Second Report and Order not

to grandfather the use of three-digit CICs

and five-digit CACs that are in use

during the transition. The Commission

rejects arguments that the CICs Second

Report and Order: (1) Is arbitrary and

capricious in violation of the

Administrative Procedure Act; (2)

violates Fifth Amendment rights; (3)

violates First Amendment rights; and (4)

violates Section 257 of the

Communications Act and the Regulatory

Flexibility Act. The Commission’s

decisions in the Order on

Reconsideration are intended to

advance the pro-competitive objectives

of the Communications Act, as

amended.

Ordering Clauses

2. Accordingly, it is ordered, pursuant

to sections 1, 4(i), 201–205, and

251(e)(1) of the Communications Act of

1934, as amended, 47 U.S.C. §§ 151,

154(i), 201–205, and 251(e)(1), that the

Petition for Reconsideration of VarTec

Telecom, Inc., is denied.

3. It is further ordered, that the

Petitions for Reconsideration of the

Competitive Telecommunications

Association and Telecommunications

Group, Inc., are granted to the extent

stated herein, and, in all other respects,

are denied.

4. It is further ordered, that the Order

on Reconsideration and the