56118 Federal Register / Vol. 62, No. 209 / Wednesday, October 29, 1997 / Rules and Regulations

52. It is further ordered That GCI’s

Petition for Clarification of the Tariff

Forbearance Order is granted.

53. It is further ordered That TTS’s

Motion for Acceptance of Petition for

Reconsideration is hereby denied, and

TTS’s Petition for Reconsideration is

hereby dismissed.

54. It is further ordered That TTS’s

Motion to Accept Supplement to

Petition for Reconsideration is hereby

denied, and TTS’s Supplement to

Petition for Reconsideration is hereby

dismissed.

55. It is further ordered That the

United Homeowners Association and

United Seniors Health Cooperative’s

Petition for Rulemaking is hereby

denied.

Federal Communications Commission.

William F. Caton,

Acting Secretary.

[FR Doc. 97–28613 Filed 10–28–97; 8:45 am]

BILLING CODE 6712–01–P

FEDERAL COMMUNICATIONS

COMMISSION

47 CFR Part 54

[CC Docket No. 96–45; FCC 97–380]

Universal Service

AGENCY: Federal Communications

Commission.

ACTION: Final rule.

SUMMARY: In this Order, we adopt a

filing window period that begins on the

date that the Schools and Libraries

Corporation and the Health Care

Corporation begin to receive

applications for support. We also

conclude that the administrative

corporations will determine the length

of the window and resolve other

administrative issues necessary to

implement our decision to adopt a

window filing period consistent with

our guidance set forth below. Therefore,

we amend our rules to implement this

change. In addition, we delegate

authority to the Chief, Common Carrier

Bureau to resolve unanticipated

technical and operational issues relating

to the new universal service

mechanisms that may arise in the

future.

EFFECTIVE DATE: All policies and rules

adopted herein shall be effective

November 28, 1997.

FOR FURTHER INFORMATION CONTACT:

Valerie Yates, Legal Counsel, Common

Carrier Bureau, (202) 418–1500, or

Sheryl Todd, Common Carrier Bureau,

(202) 418–7400.

SUPPLEMENTARY INFORMATION: This is a

summary of the Commission’s Third

Report and Order adopted on October

10, 1997 and released on October 14,

1997, including changes made in an

erratum released October 15, 1997. The

full text of the Third Report and Order

is available for inspection and copying

during normal business hours in the

FCC Reference Center (Room 239), 1919

M St., NW., Washington, DC. Pursuant

to the Telecommunications Act of 1996,

the Commission released a Notice of

Proposed Rulemaking and Order

Establishing Joint Board, Federal-State

Joint Board on Universal Service, CC

Docket No. 96–45 on March 8, 1996 (61

FR 10499 (March 14, 1996)), a

Recommended Decision on November 8,

1996 (61 FR 63778 (December 2, 1996)),

a Public Notice on November 18, 1996

(61 FR 63778 (December 2, 1996)), and

a Report and Order that was adopted on

May 7, 1997 and released on May 8,

1997 (62 FR 32862 (June 17, 1997))

implementing rules for §§ 254 and

214(e) of the Act relating to universal

service. Also pursuant to the

Telecommunications Act of 1996, the

Commission released a Report and

Order in CC Docket 97–21 on July 18,

1997 (62 FR 41294 (August 1, 1997)).

The Common Carrier Bureau released a

Public Notice seeking comment on

additional issues addressed in the Third

Report and Order on September 10,

1997 (62 FR 48280 (September 15,

1997)).

Summary of the Third Report and

Order

1. On March 8, 1996, as required by

the Telecommunications Act of 1996

(1996 Act), the Commission released a

Notice of Proposed Rulemaking and

Order Establishing a Joint Board on

Universal Service. As required by the

RFA, the NPRM included an Initial

Regulatory Flexibility Analysis (IRFA).

At that time, the Commission sought

written public comment on the

proposals in the NPRM, including

comment on the IRFA. On May 8, 1997

the Commission released a Report and

Order that included a Final Regulatory

Flexibility Analysis (FRFA). On

September 10, 1997, the Common

Carrier Bureau issued a Public Notice

seeking comment on several issues with

respect to the application process and

the distribution of federal universal

service support funds for schools,

libraries, and rural health care

providers. This FRFA supplements the

FRFA that was included in the First

Report and Order and incorporates the

comments with respect to the proposal

to adopt a filing window that were

received in response to the Bureau’s

September 10 Public Notice. This

present FRFA conforms to the RFA.

2. In the Universal Service Order, we

concluded that the Administrator would

commit funds to applicants on a firstcome first-served basis. We now

conclude, based on the nearly

unanimous comments received in

response to the September 10 Public

Notice, that all applications filed during

the window will be treated as if

simultaneously received. For the

reasons discussed below, we find that

adopting such a window period will

best serve the needs of applicants for

universal service discounts, and will

assist the administrative corporations in

processing these requests in a timely

manner.

3. In response to commenters’

requests, we clarify that an applicant’s

‘‘place in line,’’ or seniority, with

respect to funds will be determined by

the date on which an applicant submits

a contract to the applicable

administrative corporation. An

applicant’s submission of its initial

request for services, which one of the

administrative corporations will post on

its website, does not determine the

applicant’s seniority for the purposes of

allocating funding. We clarify that the

Schools and Libraries Corporation, as

administrator, will allocate funds

reasonably and in accordance with the

rules of priority set forth in § 54.507(g)

of our rules.

4. In light of our decision to adopt a

window filing period, we also conclude

that the administrative corporations

should determine the length of the

window and resolve other

administrative matters necessary to

implement a window filing period. We

conclude that this responsibility entails

‘‘administering the support mechanisms

for eligible schools and libraries and

rural health care providers,’’ a function

already within the scope of the

corporations’ general duties. We find

that the goals of the universal service

mechanisms will best be served if the

administrative corporations are

responsible for implementing the

window filing periods because they will

be performing the day-to-day functions

of the schools, libraries, and rural health

care universal service mechanisms and

thus are better able to determine an

appropriate window periods in light of

their needs and resources. We remain

committed to the general principle that

funds will be allocated to applicants on

a first-come first-served basis.

Consistent with this principle, we direct

the corporations to adopt a reasonable

window period that is of sufficient

duration to effectuate the administrative

purposes of the window, as set forth
Federal Register / Vol. 62, No. 209 / Wednesday, October 29, 1997 / Rules and Regulations 56119

above, but is short enough to ensure that

funds are allocated without unnecessary

delay and to encourage applicants to file

requests for support without undue

delay. In addition, to ensure that all

applicants will be informed of the

window periods with sufficient time to

adjust their plans accordingly, we direct

the administrative corporations to make

a determination with respect to the

initial window filing periods by October

31, 1997 and to publicize that decision

promptly using appropriate media and

other avenues that will notify the

educational, library, and rural health

care communities. In order to facilitate

notification to the public, we direct the

Bureau to issue a public notice

announcing the administrative

corporations’ decisions.

5. We further find that unanticipated

technical and operational issues may

arise that will require prompt attention,

but will not warrant Commission

review. To the extent clarification of our

rules are necessary, however, we

delegate to the Chief, Common Carrier

Bureau the authority to issue orders

interpreting our rules as necessary to

ensure that support for services

provided to schools and libraries and

rural health care providers operate to

further our universal service goals. We

find that this action is ‘‘necessary to the

proper functioning of the Commission

and the prompt and orderly conduct of

its business.’’ 47 U.S.C. 155(c)(1). Any

action taken pursuant to this delegation

of authority ‘‘shall have the same force

and effect and shall be made, evidenced,

and enforced in the same manner as

actions of the Commission.’’ 47 CFR

0.203; see also 47 U.S.C. 155(c)(3).

Final Federal Regulatory Flexibility

Analysis

6. On March 8, 1996, as required by

the Telecommunications Act of 1996

(1996 Act), the Commission released a

Notice of Proposed Rulemaking and

Order Establishing a Joint Board on

Universal Service. As required by the

RFA, the NPRM included an Initial

Regulatory Flexibility Analysis (IRFA).

At that time, the Commission sought

written public comment on the

proposals in the NPRM, including

comment on the IRFA. On May 8, 1997

the Commission released a Report and

Order that included a Final Regulatory

Flexibility Analysis (FRFA). On

September 10, 1997, the Common

Carrier Bureau issued a Public Notice

seeking comment on several issues with

respect to the application process and

the distribution of federal universal

service support funds for schools,

libraries, and rural health care

providers. This FRFA supplements the

FRFA that was included in the First

Report and Order and incorporates the

comments with respect to the proposal

to adopt a filing window that were

received in response to the Bureau’s

September 10 Public Notice. This

present FRFA conforms to the RFA.

7. Need for, and Objectives of, this

Third Report and Order. The

Commission is required by sections

254(a)(2) and 410(c) of the Act, as

amended by the 1996 Act, to promulgate

these rules to implement promptly the

universal service provisions of section

254. The goal of this Third Report and

Order (Order) is to ease the burden on

schools, libraries, and rural health care

providers that will submit requests for

funding to the universal service

administrator by adopting a filing

window. All applications filed during

the window will be treated as if

simultaneously received.

8. Summary of Significant Issues

Raised by Public Comments.

Commenters overwhelmingly

recommended adoption of a filing

window in order to ease the

administrative burdens on schools,

libraries, and rural health care

providers, particularly smaller entities

with fewer administrative resources.

Some commenters urged the

Commission to ensure that applicants in

all states would receive some

opportunity to receive funding.

9. Description and Estimates of the

Number of Small Entities to Which the

Rules Adopted in This Report and Order

will Apply. The RFA generally defines

‘‘small entity’’ as having the same

meaning as the terms ‘‘small business,’’

‘‘small organization,’’ and ‘‘small

governmental jurisdiction.’’ In addition,

the term ‘‘small business’’ has the same

meaning as the term ‘‘small business

concern’’ under the Small Business Act,

15 U.S.C. 632, unless the Commission

has developed one or more definitions

that are appropriate to its activities.

Under the Small Business Act, a ‘‘small

business concern’’ is one that: (1) Is

independently owned and operated; (2)

is not dominant in its field of operation;

and (3) meets any additional criteria

established by the Small Business

Administration (SBA). As noted, the

RFA also applies to nonprofit

organizations and to governmental

organizations such as governments of

cities, counties, towns, townships,

villages, school districts, or special

districts with populations of less than

50,000. As of 1992, the most recent

figures available, there were 85,006

governmental entities in the United

States.

10. For ‘‘small business’’

determinations in this context, the SBA

has established a definition of small

elementary and secondary schools and

small libraries as those with under $5

million in annual revenues. Other

entities of this sort may be considered

small under the other two prongs of the

RFA. The most reliable source of

information regarding the total number

of kindergarten through 12th grade (K–

12) schools and libraries nationwide of

which we are aware appears to be data

collected by the United States

Department of Education and the

National Center for Educational

Statistics. Based on that information, it

appears that there are approximately

86,221 public and 26,093 private K–12

schools in the United States (SIC 8211).

It further appears that there are

approximately 15,904 libraries,

including branches, in the United States

(SIC 8231). Although it seems certain

that not all of these schools and libraries

would qualify as small entities under

the SBA’s determination, we are unable

at this time to estimate with greater

precision the number of small schools

and libraries that would qualify as small

entities under the definition.

Consequently, we estimate that there are

fewer than 86,221 public and 26,093

private schools and fewer than 15,904

libraries that may be affected by the

decisions and rules adopted in this

Order.

11. Neither the Commission nor the

SBA has developed a definition of

small, rural health care providers.

Section 254(h)(5)(B) defines the term

‘‘health care provider’’ and sets forth the

seven categories of health care providers

eligible to receive universal service

support. We estimate that there are: (1)

625 ‘‘post-secondary educational

institutions offering health care

instruction, teaching hospitals, and

medical schools,’’ including 403 rural

community colleges, 124 medical

schools with rural programs, and 98

rural teaching hospitals; (2) 1,200

‘‘community health centers or health

centers providing health care to

migrants;’’ (3) 3,093 ‘‘local health

departments or agencies’’ including

1,271 local health departments and

1,822 local boards of health; (4) 2,000

‘‘community mental health centers;’’ (5)

2,049 ‘‘not-for-profit hospitals;’’ and (6)

3,329 ‘‘rural health clinics.’’ We do not

have sufficient information to make an

estimate of the number of consortia of

health care providers at this time. The

total of these categorical numbers is

12,296. Consequently, we estimate that

there are fewer than 12,296 health care

providers potentially affected by the

rules in this Order. For the purposes of

‘‘small business’’ analysis, we note that
56120 Federal Register / Vol. 62, No. 209 / Wednesday, October 29, 1997 / Rules and Regulations

according to the SBA definition,

hospitals must have annual gross

receipts of $5 million or less to qualify

as a small business concern. There are

approximately 3,856 hospital firms, of

which 294 have gross annual receipts of

$5 million or less. Although some of

these small hospital firms may not

qualify as rural health care providers,

we are unable at this time to estimate

with greater precision the number of

small hospital firms which may be

affected by this Order. Consequently, we

estimate that there are fewer than 294

hospital firms affected by this Order.

12. Description of Projected

Reporting, Recordkeeping, and Other

Compliance Requirements. This order

will impose no additional reporting,

recordkeeping or other compliance

requirements on small entities.

13. Steps Taken to Minimize the

Significant Economic Impact on Small

Entities and Significant Alternatives

Considered. As explained in the Order,

based on the nearly unanimous

comments received in response to the

September 10 Public Notice, the

Commission concludes that all

applications filed during the window

will be treated as if simultaneously

received. We find that adopting such a

window period will best serve the needs

of applicants for universal service

discounts, and will assist the

administrative corporations in

processing these requests in a timely

manner. The Commission finds that the

window will reduce pressure on

applicants to submit their contracts at

the earliest possible moment and, thus,

will improve the accuracy and care with

which these contracts are negotiated

and the accompanying forms are

completed. By providing additional

time to complete contract negotiations

after the four-week competitive bid

waiting period, a window will allow

schools to negotiate their contracts with

greater care. Further, this window will

reduce disparities between applicants

with substantial administrative

resources and applicants with fewer

resources, such as small schools,

libraries, and health care providers. We

recognize, as noted by the commenters,

that this window will not eliminate all

disparities among applicants. The

Commission adopted annual funding

caps, $2.25 billion for schools and

libraries and $400 million for health

care providers, because it estimated that

these monies would be sufficient for all

applicants during the funding year. We

emphasize that we have no reason to

revise these estimates and have no

reason to believe that either of the caps

will be reached during the initial filing

period, nor at any other point during the

funding period. We are adopting a

window primarily to allow applicants

sufficient time to negotiate contracts

properly and submit complete filings.

14. The Commission will send a copy

of the Order, including this FRFA, in a

report to be sent to Congress pursuant

to the Small Business Regulatory

Enforcement Fairness Act of 1996. A

copy of the Order and this FRFA will

also be published in the Federal

Register and will be sent to the Chief

Counsel for Advocacy of the Small

Business Administration.

List of Subjects in 47 CFR Part 54

Libraries, Schools, Healthcare

providers, Telecommunications,

Telephone.

Federal Communications Commission.

William F. Caton,

Acting Secretary.

Rule Changes

1. Part 54 of Title 47 of the Code of

Federal Regulations (CFR) is amended

as follows:

PART 54—UNIVERSAL SERVICE

2. Section 54.507 is amended by

adding the last three sentences to

paragraph (c) to read as follows:

§ 54.507 Cap.

* * * * *

(c) Requests. * * * The Schools and

Libraries Corporation shall implement

an initial filing period that treats all

schools and libraries filing within that

period as if they were simultaneously

received. The initial filing period shall

begin on the date that the Schools and

Libraries Corporation begins to receive

applications for support, and shall

conclude on a date to be determined by

the Schools and Libraries Corporation.

The Schools and Libraries Corporation

may implement such additional filing

periods as it deems necessary.

* * * * *

3. Section 54.623 is amended by

adding the last three sentences to

paragraph (c) to read as follows:

§ 54.623 Cap.

* * * * *

(c) Requests. * * * The Rural Health

Care Corporation shall implement an

initial filing period that treats all health

care providers filing within that period

as if they were simultaneously received.

The initial filing period shall begin on

the date that the Rural Health Care

Corporation begins to receive

applications for support, and shall

conclude on a date to be determined by

the Rural Health Care Corporation. The

Rural Health Care Corporation may

implement such additional filing

periods as it deems necessary.

* * * * *

[FR Doc. 97–28612 Filed 10–28–97; 8:45 am]

BILLING CODE 6712–01–P

FEDERAL COMMUNICATIONS

COMMISSION

47 CFR Part 69

[CC Docket Nos. 96–262, 94–1, 91–213; FCC

No. 97–368]

Access Charge Reform; Price Cap

Performance Review for Local

Exchange Carriers

AGENCY: Federal Communications

Commission.

ACTION: Final rule; petition for waiver.

SUMMARY: On October 8, 1997, the

Commission adopted a Memorandum

Opinion and Order in this proceeding

granting a petition for waiver filed by

the National Exchange Carrier

Association, Inc. (NECA). In its petition,

NECA sought an order waiving

§ 69.105(b)(2)–(3) for NECA’s pool, so as

to allow NECA to reflect revised long

term support formula amounts in its

carrier common line (CCL) tariff rates

effective January 1, 1998. The

Commission granted the waiver on

condition that NECA compute the CCL

charge in the manner prescribed by the

Commission.

EFFECTIVE DATE: November 28, 1997.

FOR FURTHER INFORMATION CONTACT:

Richard Lerner, Attorney, Common

Carrier Bureau, Competitive Pricing

Division, (202) 418–1530.

SUPPLEMENTARY INFORMATION: This is a

summary of the Commission’s

Memorandum Opinion and Order

adopted October 8, 1997, and released

October 9, 1997. The full text of this

Memorandum Opinion and Order is

available for inspection and copying

during normal business hours in the

FCC Reference Center (Room 239), 1919

M St., NW., Washington, DC. The

complete text also may be obtained

through the World Wide Web, at http:/

/www.fcc.gov/Bureaus/

CommonlCarrier/Orders/fcc.97368.wp,

or may be purchased from the

Commission’s copy contractor,

International Transcription Service,

Inc., (202) 857–3800, 1231 20th Street,

NW, Washington, DC 20036.

Paperwork Reduction Act

N/A. This Memorandum Opinion and

Order does not require an information

collection.