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.
Federal Register / Vol. 62, No. 209 / Wednesday, October 29, 1997 / Rules and Regulations 56121

Synopsis of Memorandum Opinion and

Order

1. The National Exchange Carrier

Association, Inc. (NECA) asserts in its

reconsideration petition that the

Commission should revise on

reconsideration the rule provisions

governing calculation of NECA carrier

common line (CCL) rates, without

waiting for the conclusion of a separate

proceeding on access charge reform for

rate-of-return LECs. In the alternative,

NECA requests that the Commission

issue an order waiving § 69.105(b)(2)–(3)

for NECA’s pool, so as to allow NECA

to reflect revised long term support

(LTS) formula amounts in its CCL tariff

rates effective January 1, 1998. No party

opposed or supported NECA’s petition

for reconsideration or waiver of the rule.

We have decided to waive the specified

rule provisions at this time, and make

appropriate rule revisions in the

separate proceeding.

2. Section 69.105(b) currently sets the

NECA CCL tariff at the average of pricecap LECs’ CCL charges. Prior to January

1, 1998, LTS is a variable amount, based

on the difference between the revenues

earned from charging a nationwide

average CCL rate and the NECA pool

CCL revenue requirement. In the

Universal Service Order, we substituted

federal universal service support

payments for previously-received

recovery from the interstate access

charge system through LTS. FederalState Joint Board on Universal Service,

Report and Order, CC Docket No. 96–45,

62 FR 32862 (June 17, 1997) (Universal

Service Order). The rule revisions in the

First Report and Order removed LTS

amounts from price cap LEC CCL

calculations, but postponed making

conforming revisions in § 69.105(b) to

the CCL rate calculation for NECA tariff

participants. Access Charge Reform, CC

Docket No. 96–262, First Report and

Order, 62 FR 31040 (June 6, 1997).

3. Section 1.3 of our rules empowers

the Commission to grant waivers of its

rules if good cause is shown. In this

situation, NECA must demonstrate that

special circumstances justify a

departure from the general rule and that

such a deviation will serve the public

interest. Northeast Cellular Telephone

Co. v. FCC, 897 F.2d 1164 (D.C. Cir.

1990); WAIT Radio v. FCC, 418 F.2d

1153 (D.C. Cir. 1969). We conclude that

NECA has demonstrated that continued

application of § 69.105(b)(2)–(3) would

be contrary to the public interest in

these circumstances. As we stated in the

Universal Service Order, the

‘‘elimination of price-cap (incumbent

LECs’) LTS obligations will allow their

CCL charges to fall, but there is no

corresponding reason for a reduction in

the NECA CCL tariff. Yet under our

current rules, the NECA CCL charge

would fall simply because of our

regulatory changes to price-cap

(incumbent LECs’) LTS payment

obligations. We must therefore establish

a new method to set the NECA CCL

tariff.’’

4. Because changes in the recovery of

LTS amounts and price-cap carrier CCL

rate computations as adopted in the

First Report and Order and Universal

Service Order are scheduled to become

effective on January 1, 1998, grant of the

waiver will allow NECA to conform its

rates to decisions reached in the

Universal Service Order by reflecting

revised LTS formula amounts in its CCL

tariff rates effective January 1, 1998. We

therefore waive § 69.105(b)(2)–(3) for the

calculation of NECA’s CCL pool rate

that will become effective January 1,

1998, on the condition that NECA must

compute the Carrier Common Line

charge as follows:

(a) From the NECA pool aggregate

Carrier Common Line revenue

requirement amount, subtract: (1)

Aggregate End User Common Line

charges; (2) aggregate Special Access

Surcharges; and (3) the portion of perline support that NECA CCL pool

participants receive, in the aggregate,

pursuant to 47 CFR 54.303.

(b) The premium originating Carrier

Common Line charge must be one cent

per minute, except as described herein

at paragraph (d), and

(c) The premium terminating Carrier

Common Line charge must be computed

by subtracting the projected revenues

generated by the originating Carrier

Common Line charges (both premium

and non-premium) from the number

calculated in paragraph (a), and

dividing the remainder by the sum of

the projected premium terminating

minutes and a number equal to 0.45

multiplied by the projected nonpremium terminating minutes, except as

described herein at paragraph (d).

(d) If the calculations described in

paragraph (c) result in a per minute

charge on premium terminating minutes

that is less than one cent, both the

originating and terminating premium

charges for the NECA CCL pool

participants must be computed by

dividing the number calculated

pursuant to paragraph (a) by the sum of

the premium minutes and a number

equal to 0.45 multiplied by the nonpremium minutes for the NECA CCL

pool participants.

This NECA CCL charge calculation

will reflect that now the CCL charge,

rather than LTS, is a residual amount.

Accordingly, it is ordered, pursuant to

47 U.S.C. 154(i) and 47 CFR 1.3, that

NECA’s request for waiver of

§ 69.105(b)(2)–(3) of the Commissions

rules, 47 CFR part 69.105(b)(2)–(3) is

granted subject to the limitations and

conditions described in this document.

Federal Communications Commission.

William F. Caton,

Acting Secretary.

[FR Doc. 97–28544 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

97–368]

Access Charge Reform; Price Cap

Performance Review for Local

Exchange Carriers; Transport Rate

Structure

AGENCY: Federal Communications

Commission.

ACTION: Final rule; petition for

reconsideration.

SUMMARY: On December 23, 1996, the

Commission adopted a Notice of

Proposed Rulemaking in this docket, 62

FR 4670 (Jan. 31, 1997), seeking

comment on how the interstate access

charge regime should be revised in light

of the local competition and Bell

Operating Company entry provisions of

the Telecommunications Act of 1996

and state actions to open local markets

to competition, the effects of potential

and actual competition on incumbent

LEC pricing for interstate access, and

the impact of the Act’s mandate to

preserve and enhance universal service.

On May 7, 1997, the Commission

adopted a First Report and Order, 62 FR

31040 (June 6, 1997), in which it

adopted many of the rules it proposed.

In this Second Order on

Reconsideration, the Commission

modifies some of the rules adopted in

the First Report and Order. These rule

revisions are intended to foster

competition, move access charges over

time to more economically efficient

levels and rate structures, preserve

universal service, and lower rates.

EFFECTIVE DATES: The following rules or

amendments thereto, shall become

effective January 1, 1998: 47 CFR

69.153(g), 69.4, 69.111(c)(1),

69.153(c)(1), 69.153(d)(1)(i),

69.153(d)(2)(i), and 69.155(c). The

Commission has requested emergency

approval of the information collection

requirements to ensure that it may be