65036 Federal Register / Vol. 62, No. 237 / Wednesday, December 10, 1997 / Rules and Regulations

1We calculate that March 20, 1998 reflects the

earliest date on which the Administrator will

distribute funds under these programs, by starting

with November 24, 1997 and adding to it a 75-day

List of Subjects in 40 CFR Part 180

Environmental protection,

Administrative practice and procedure,

Agricultural commodities, Pesticides

and pests, Reporting and recordkeeping

requirements.

Dated: November 25, 1997.

Peter Caulkins,

Acting Director, Registration Division, Office

of Pesticide Programs.

Therefore, 40 CFR chapter I is

amended as follows:

PART 180—[AMENDED]

1. The authority citation for part 180

continues to read as follows:

Authority: 21 U.S.C. 346a and 371.

2. In § 180.414, in paragraph (b) by

alphabetically adding the following

commodities to the table to read as

follows:

§ 180.414 Cyromazine; tolerances for

residues.

* * * * *

(b) * * *

Commodity Parts per million Expiration/revocation date

Beans, lima .............................................. 5.0 12/31/98

* * * * * * *

Peas, blackeyed ....................................... 5.0 12/31/98

* * * * * * *

* * * * *

[FR Doc. 97–32039 Filed 12–9–97; 8:45 am]

BILLING CODE 6560–50–F

FEDERAL COMMUNICATIONS

COMMISSION

47 CFR Part 54

[CC Docket No. 96–45, CC 97–21; FCC 97–

400]

Universal Service Support

Mechanisms

AGENCY: Federal Communications

Commission.

ACTION: Final rule.

SUMMARY: The Commission authorized

the Administrator of the universal

service support mechanisms to require

payment of quarterly contributions to

universal service in equal monthly

installments. Allowing monthly

payments will reduce the cash flow

impact on contributors because their

payments will be smaller. It also will

better enable contributors to offset their

contributions by payments from the

support mechanisms. It will not

jeopardize the sufficiency of the support

mechanisms.

EFFECTIVE DATE: January 9, 1998.

FOR FURTHER INFORMATION CONTACT:

Diane Law, (202) 418–7400.

SUPPLEMENTARY INFORMATION:

SECOND ORDER ON RECONSIDERATION in

CC Docket No. 97–21

I. Background

1. In the Universal Service Order, the

Commission created new federal

universal service support mechanisms

and concluded that all

telecommunications carriers that

provide interstate telecommunications

services, other providers of interstate

telecommunications, and payphone

service providers will contribute to

universal service. (See Federal-State

Joint Board on Universal Service, Report

and Order, CC Docket No. 96–45, FCC

97–157, 62 FR 32862 (June 17, 1997)).

In the NECA Report and Order, the

Commission instructed the National

Exchange Carrier Association (NECA) to

create an independent subsidiary, the

Universal Service Administrative

Company (USAC or Administrator), to

administer temporarily portions of the

universal service support mechanisms.

(See Changes to the Board of Directors

of the National Exchange Carriers

Association, Inc., Federal-State Joint

Board on Universal Service, Report and

Order and Second Order on

Reconsideration, CC Docket No. 97–21,

CC Docket No. 96–45, FCC 97–253, 62

FR 41294 (August 1, 1997)). The

Commission also instructed the

Administrator to bill contributors and

collect contributions to the federal

universal service support mechanisms

on a quarterly basis.

2. USAC requests that it be authorized

to collect universal service

contributions on a monthly, as opposed

to a quarterly, basis. USAC states that

collecting contributions on a quarterly

basis may create significant cash flow

problems for contributors. USAC

explains that, because of the delay

between funds collection and funds

distribution, monthly billing will not

increase the likelihood that the

Administrator will be required to

borrow money to fund early requests for

discounts by eligible schools and

libraries. In addition, USAC notes that

collecting contributions on a monthly

basis will generate some interest

income, albeit less than would be

collected on a quarterly basis, that can

be applied to meet program demands.

NECA supports USAC’s request.

II. Discussion

3. Based on the Administrator’s

request, we reconsider, on our own

motion, our requirement that the

Administrator collect contributions on a

quarterly basis. Allowing monthly

payments would reduce the cash flow

impact on contributors because their

payments would be smaller. It also

would better enable contributors to

offset their contributions by payments

from the support mechanisms. We

conclude that permitting monthly as

opposed to quarterly contributions will

not jeopardize the sufficiency of the

support mechanisms. The Commission

reduced the estimated total contribution

base by two percent when calculating

the universal service contribution

factors to take account of the possibility

that contributions to the support

mechanisms may fall short of estimated

levels due to, for example,

uncollectibles or higher-than-foreseen

demand. In addition, since March 20,

1998 appears to be the earliest date on

which the Administrator could be

required to make distributions under the

schools, libraries, and rural health care

programs,1 we anticipate that, under our
Federal Register / Vol. 62, No. 237 / Wednesday, December 10, 1997 / Rules and Regulations 65037

period and two 20-day periods, derived from the

requirements described below. The Schools and

Libraries and Rural Health Corporations must

authorize USAC to disburse the appropriate

payment amounts as quickly as possible, but no

later than 20 days following receipt of the requisite

forms. USAC must distribute payments as quickly

as possible, but no later than 20 days following

receipt of authorization to disburse funds. In

addition, the Schools and Libraries and Rural

Health Care Corporations established 75-day

window filing periods in which all requests will be

treated with equal priority. The window period will

begin to run when the Schools and Libraries and

Rural Health Care Corporations begin to receive

applications for support. Funds will not be

committed until the closing of the 75-day window

filing period. Thus, even assuming the window

period were to begin on November 24, 1997,

support would not begin to be distributed before

March 20, 1998.

revised billing schedule, the

Administrator will have sufficient funds

to meet initial demand for support for

these and all other service programs.

USAC has not requested that we revise

the manner in which the amount of each

contributor’s obligation is determined

and we see no reason to do so. Thus, as

provided in § 54.709 of the

Commission’s current rules, the

Administrator will apply the quarterly

contribution factors to determine the

amount that contributors must remit to

the Administrator. We amend § 54.709

of our rules to authorize the

Administrator to require payment of

those quarterly contributions in equal

monthly installments. 4. We understand that USAC intended

to begin sending out bills in December,

1997, which would require contributors

to begin making payments in January,

1998. We find that both USAC and

contributors need a reasonable

opportunity to respond to the

modification from a quarterly to a

monthly billing schedule. We therefore

direct USAC not to require contributors

to make payments pursuant to the new

universal service mechanisms set forth

in section 254 prior to February 1998.

This will provide USAC additional time

to issue bills that are consistent with the

billing modification set forth herein.

The additional time will not delay

disbursement of funds pursuant to the

new universal service mechanisms,

because distribution of funds pursuant

to the schools and libraries and rural

health care universal service programs

will not begin before March 20, 1998

and distributions for the new high cost

and low income universal service

programs will not begin until February

1998.

III. Supplemental Final Regulatory

Flexibility Analysis

5. As required by Section 603 of the

Regulatory Flexibility Act (RFA), 5

U.S.C. 603, an Initial Regulatory

Flexibility Analysis (IRFA) was

incorporated in the Notice of Proposed

Rulemaking and Order Establishing

Joint Board (NPRM). In addition, the

Commission prepared an IRFA in

connection with the Recommended

Decision, seeking written public

comment on the proposals in the NPRM

and Recommended Decision. A Final

Regulatory Flexibility Analysis (FRFA)

was also included in the Order. The

Commission’s Supplemental Final

Regulatory Flexibility Analysis (SFRFA)

in this Order conforms to the RFA, as

amended.

A. Need for and Objectives of This

Report and Order and the Rules

Adopted Herein

6. The Commission is required by

section 254 of the Act, as amended by

the 1996 Act, to promulgate rules to

implement promptly the universal

service provisions of section 254. On

May 8, 1997, the Commission adopted

rules whose principle goal is to reform

our system of universal service support

mechanisms so that universal service is

preserved and advanced as markets

move toward competition. In this Order,

we reconsider one aspect of those rules.

Our reconsideration was prompted by

ex parte letters filed by USAC and

NECA suggesting that contributions to

the universal service support

mechanisms be collected on a monthly,

rather than the quarterly basis currently

specified in our rules. In addition, on

our own motion, we adopt a rule in

order to give contributors and USAC a

reasonable opportunity to respond to

the billing modification.

B. Summary and Analysis of the

Significant Issues Raised by Public

Comments in Response to the IRFA

7. Other than those described in the

Order, no additional comments were

filed in response to the IRFAs described

above. Nor were any comments filed in

response to the ex parte letters from the

Administrator and NECA.

C. Description and Estimates of the

Number of Small Entities to Which the

Rules Adopted in This Report and Order

Will Apply

8. In the FRFA at paragraphs 890–922

of the Order, we described and

estimated the number of small entities

that would be affected by the new

universal service rules. The rule

adopted here will apply to the same

telecommunications carriers and

entities affected by the universal service

rules. We therefore adopt the provisions

of paragraphs 890–922 of the Order.

D. Summary Analysis of the Projected

Reporting, Recordkeeping, and Other

Compliance Requirements and

Significant Alternatives and Steps

Taken to Minimize the Significant

Economic Impact on a Substantial

Number of Small Entities Consistent

with Stated Objectives

9. In the FRFA to the Order, we

described the projected reporting,

recordkeeping, and other compliance

requirements and significant

alternatives and steps taken to minimize

significant economic impact on a

substantial number of small entities

consistent with stated objectives

associated with the Administration

section of the Order. Because the rule

adopted herein will only marginally

affect those requirements, we adopt the

provisions of paragraphs 980–981 of the

Order, which describe those

requirements and provide the following

analysis of the new requirements

adopted herein. Under the rule adopted

herein, telecommunications carriers and

providers must submit their quarterly

contributions on a monthly basis.

Although monthly contributions may

slightly increase the paperwork burdens

imposed on small entities, this payment

scheme may reduce their cash flow

burdens and thus provides an offsetting

benefit. We also adopt a rule herein to

provide contributors, including small

entities, a reasonable opportunity to

respond to the billing change.

IV. Ordering Clauses

10. Accordingly, It is ordered that,

pursuant to the authority contained in

sections 1–4, 201–205, 254, and 405 of

the Communications Act of 1934, as

amended, 47 U.S.C. 151–154, 201–205,

254, and 405, § 1.108 of the

Commission’s rules, 47 CFR 1.108, and

section 553 of the Administrative

Procedure Act, 5 U.S.C. 553, this Order

is adopted, effective 30 days from

publication of the text in the Federal

Register.

11. It is further ordered that part 54

of the Commission’s rules, 47 CFR

54.709, is amended, effective January 9,

1998.

List of Subjects in 47 CFR Part 54

Communications common carriers,

Health facilities, Libraries, Reporting

and recordkeeping requirements,

Schools, Telecommunications,

Telephone.
65038 Federal Register / Vol. 62, No. 237 / Wednesday, December 10, 1997 / Rules and Regulations

Federal Communications Commission.

Magalie Roman Salas,

Secretary.

Rule Changes

Part 54 of title 47 of the Code of

Federal Regulations is amended as

follows:

PART 54—UNIVERSAL SERVICE

1. The authority citation for part 54

continues to read as follows:

Authority: 47 U.S.C. 1, 4(i), 201, 205, 214,

and 254 unless otherwise noted.

2. Section 54.709 is amended by

revising paragraph (a)(4) and adding a

new paragraph (a)(5) to read as follows:

§ 54.709 Computations of required

contributions to universal service support

mechanisms.

(a) * * *

(4) For each quarter, the

Administrator shall bill contributors

monthly and require payment of

contributions in equal monthly

installments.

(5) The Administrator shall not

require contributors to make payments

pursuant to the universal service

mechanisms set forth in 47 U.S.C. 254

prior to February 1998.

* * * * *

[FR Doc. 97–32178 Filed 12–9–97; 8:45 am]

BILLING CODE 6712–01–P