3830 Federal Register / Vol. 63, No. 17 /Tuesday, January 27, 1998 /Rules and Regulations

reduced by five percent for selfpropelled vessels and ten percent for

tugs/barges to account for weather

conditions.

(f) Determination of cargo carried.

The amount of cargo tonnage used to

calculate the rate shall be based on the

tender offer or charter party terms. In

instances when separate parcels of

preference cargo are booked or

considered for booking on the same

vessel, whether under a single program

or different programs, a guideline rate

shall be provided based on the

combined voyage.

(g) Total rate. The guideline rate shall

be the total of the operating cost

component, the capital cost component,

the port and cargo handling cost

component, and the broker’s

commission and overhead component.

The fair and reasonable rate can be

expressed as total voyage revenue or be

divided by the amount of cargo to be

carried, as prescribed in paragraph (f) of

this section, and expressed as cost per

ton, whichever MARAD deems most

appropriate.

§ 382.4 Waivers.

In special circumstances and for good

cause shown, the procedures prescribed

in this part may be waived in keeping

with the circumstances of the present,

so long as the procedures adopted are

consistent with the Act and with the

intent of this part.

By order of the Maritime Administrator.

Dated: January 21, 1998.

Joel C. Richard,

Secretary.

[FR Doc. 98–1786 Filed 1–26–98; 8:45 am]

BILLING CODE 4910–81–P

FEDERAL COMMUNICATIONS

COMMISSION

47 CFR Part 54

[CC Docket No. 96–45; FCC 97–411]

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. This action was intended

to ease contributor’s cash flow

problems.

EFFECTIVE DATE: February 26, 1998.

FOR FURTHER INFORMATION CONTACT:

Diane Law, (202) 418–7400.

SUPPLEMENTARY INFORMATION:

I. Introduction

In this Third Order on

Reconsideration (Order), we reconsider,

on our own motion, the Commission’s

decisions governing the amount of

money that may be collected during the

first six months of 1998 for the federal

universal service support mechanisms

for schools and libraries and rural

health care providers. We direct the

administrator to collect only as much as

required by demand, but in no event

more than $25 million per quarter for

the first and second quarters of 1998 to

support the rural health care universal

service support mechanism. We direct

the administrator to collect only as

much as required by demand, but in no

event more than $625 million for the

first six months of 1998, to support the

schools and libraries universal service

support mechanism. These actions will

reduce the financial burdens on

universal service contributors without

jeopardizing the sufficiency of the

support mechanisms. The Commission

may revise the collection caps if we

receive evidence of additional demand

for services. The rules adopted in this

Order will become effective February

26, 1998.

II. Background

1. In the NECA Report and Order (62

FR 41294 (Aug. 1, 1997)), the

Commission established the

administrative structure of the federal

universal service support mechanisms.

The Commission directed the National

Exchange Carrier Association (NECA) to

create an independent subsidiary, the

Universal Service Administrative

Company (USAC), to administer

temporarily portions of the support

mechanisms. The Commission also

directed NECA to create two

independent corporations, Schools and

Libraries Corporation and Rural Health

Care Corporation, to administer portions

of the schools and libraries and rural

health support mechanisms. USAC,

Schools and Libraries Corporation, and

Rural Health Care Corporation are

required to submit to the Commission

quarterly projections of demand and

administrative expenses for their

respective support mechanisms.

2. The schools and libraries and rural

health care support mechanisms are

newly created and have no historical

data upon which to estimate accurately

the demand for services in the initial

months of the support mechanisms. The

Commission specified that the

administrator should collect $100

million per month for the first three

months of 1998 for the schools and

libraries support mechanism and

‘‘adjust future contribution assessments

quarterly based on its evaluation of

schools and library demand for funds,

within the limits of the spending caps.

. . .’’ The Commission further held that,

between January 1, 1998 and June 30,

1998, the administrator ‘‘will only

collect as much as required by demand,

but in no case more than $1 billion.’’

For the rural health care support

mechanism, the Commission directed

the administrator to collect $100 million

for the first three months of 1998. In

addition, the Commission instituted

annual caps on both support

mechanisms, $2.25 billion for the

schools and libraries support

mechanism and $400 million for the

rural health care support mechanism. In

setting forth a collection schedule, the

Commission sought to ensure that

‘‘funds will be available as needed

while avoiding the potential problems

arising from the accumulation of large

amounts of funds in a federal universal

service fund.’’

III. Discussion

3. We conclude that we should adjust

downward the rate of collections for the

schools and libraries and rural health

care support mechanisms during the

first six months of 1998. We anticipate

that this action will not jeopardize the

sufficiency of the support mechanisms.

The annual caps were designed to

estimate the maximum, rather than the

actual, amount of demand for the

schools and libraries and rural health

care universal service support

mechanisms. Based on what we have

learned about the status of preparatory

arrangements being made by schools,

libraries, and rural health care providers

to obtain the benefit of the universal

service support mechanisms, we have

no reason to believe that demand will

reach the maximum projection levels in

the initial implementation stages of

these new support mechanisms. We do

not want to impose unnecessary

financial burdens on service provider

contributors to universal service by

requiring the administrator to collect

funds that exceed demand. We also

wish to ensure the successful

implementation of the schools and

libraries and rural health care support

mechanisms. Accordingly, we find that

it better serves the public interest to

reduce the collection amounts specified

in the Order (62 FR 32862 (June 17,

1997)) for the first six months of 1998,

as described below.

4. Rural Health Care. The rural health

care support mechanism supports the
Federal Register / Vol. 63, No. 17 /Tuesday, January 27, 1998 /Rules and Regulations 3831

difference, if any, between the urban

and the rural rates for a

telecommunications service of a

bandwidth up to and including 1.544

Mbps. The rural health care support

mechanism also provides limited

support to health care providers that do

not have toll-free access to the Internet.

In the initial stages of implementing the

rural health care support mechanism,

we anticipate that demand will not

exceed $25 million per quarter during

the first six months of 1998. We

therefore amend our previous decision,

and direct the administrator to collect

only as much as required by demand,

but in no event more than $25 million

per quarter for the first and second

quarters of 1998 for the rural health care

universal service support mechanism.

5. Schools and Libraries. The schools

and libraries support mechanism

provides discounts to eligible schools

and libraries for commercially available

telecommunications services, internal

connections, and access to the Internet.

Because many schools and libraries will

not begin the installation of internal

connections until the summer when

students are not present in instructional

buildings, we anticipate that initial

demand for the schools and libraries

support mechanism will not reach

projected maximums. We therefore

conclude that demand from schools and

libraries in the second quarter of 1998

is unlikely to exceed substantially

demand in the first quarter.

Accordingly, we direct the

administrator to collect only as much as

required by demand, but in no event

more than $625 million for the first six

months of 1998.

IV. Procedural Matters

6. According to the Administrative

Procedure Act, substantive rules shall

not become effective until 30 days after

their publication in the Federal Register

unless there is good cause to waive that

requirement. We find that good cause

exists to waive the 30-day requirement

because the rules adopted herein are

critical to the expeditious and efficient

implementation of the new federal

universal service support mechanisms.

The Commission’s regulations

implementing section 254 will take

effect January 1, 1998. The rules

adopted herein are necessary to

calculate the first quarter 1998 universal

service contribution factors and

primarily affect the administrator of the

support mechanisms. In order to collect

contributions in February 1998, the

administrator must know what the

contribution factors will be before

beginning the billing process in January

1998. The rules, therefore, do not place

additional burdens on the administrator.

They enable the administrator to carry

out its existing responsibilities. In

addition, certain carriers must file tariffs

in December 1997 that reflect the

contribution factors. Moreover, the rules

adopted herein reduce the financial

burdens imposed on universal service

contributors by minimizing the amounts

collected in the first six months of 1998.

Thus, we find that good cause exists to

make the rules adopted herein effective

upon their publication in the Federal

Register.

V. Supplemental Final Regulatory

Flexibility Analysis

7. 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. (See 61 FR

63778, 63796). A Final Regulatory

Flexibility Analysis (FRFA) was

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

8. 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.

In order to reduce financial burdens on

all contributors to universal service, we

reconsider, on our own motion, the

amounts that will be collected during

the first six months of 1998 for the

schools, libraries, and rural health care

support mechanisms.

B. Summary and Analysis of the

Significant Issues Raised by Public

Comments in Response to the IRFA

9. Other than those described in the

Order, no additional comments were

filed in response to the IRFAs described

above.

C. Description and Estimates of the

Number of Small Entities to Which the

Rules Adopted in This Report and Order

will Apply

10. Because the rules adopted herein

apply to the administrator of the

support mechanisms, the rules will not

directly affect small entities. It is

possible, however, that small entities

will indirectly be affected by these

rules. 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 rules

adopted herein may apply to the same

telecommunications carriers and

entities affected by the universal service

rules. We therefore incorporate by

reference 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

11. 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 rules

adopted herein may only marginally

affect those requirements, we

incorporate by reference paragraphs

980–981 of the Order, which describe

those requirements and provide the

following analysis of the new

requirements adopted herein. Under the

rules adopted herein, the administrator

is instructed to collect during the first

six months of 1998 no more than $625

million for the schools and libraries

support mechanism and $50 million for

the rural health care support

mechanism.

VI. Ordering Clauses

12. Accordingly, It is ordered that,

pursuant to the authority contained in

sections 1–4, 201–205, 218–220, 254,

303(r), 403, and 405 of the

Communications Act of 1934, as

amended, 47 U.S.C. 151–154, 201–205,

218–220, 254, 303(r), 403, and 405,

section 1.108 of the Commission’s rules,

47 CFR 1.108, and section 553 of the

Administrative Procedure Act, 5 U.S.C.

553, part 54 of the Commission’s rules,

47 CFR part 54, is amended as set forth
3832 Federal Register / Vol. 63, No. 17 /Tuesday, January 27, 1998 /Rules and Regulations

in the rule changes, effective February

26, 1998.

Federal Communications Commission.

Magalie Roman Salas,

Secretary.

Rule Changes

For the reasons set forth in the

preamble, 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 USC Secs. 1, 4(i), 201, 205,

214, and 254 unless otherwise noted.

§ 54.507 Cap.

2. Section 54.507 is amended by

revising the second sentence of

paragraph (a) to read as follows:

(a) * * * First, no more than $625

million shall be collected or spent for

the funding period from January 1, 1998

through June 30, 1998. * * *

* * * * *

§ 54.623 Cap.

3. Section 54.623 is amended by

adding a new sentence at the end of

paragraph (a) to read as follows:

(a) * * * No more than $50 million

shall be collected or spent for the

funding period from January 1, 1998

through June 30, 1998.

* * * * *

[FR Doc. 98–1833 Filed 1–26–98; 8:45 am]

BILLING CODE 6712–01–P

FEDERAL COMMUNICATIONS

COMMISSION

47 CFR Part 73

[MM Docket No. 93–17; RM–8170]

Radio Broadcasting Services;

Rosendale, NY

AGENCY: Federal Communications

Commission.

ACTION: Final rule; petition for

reconsideration.

SUMMARY: This document dismisses a

Petition for Reconsideration filed by the

State University of New York directed to

the Memorandum Opinion and Order in

this proceeding. 61 FR 14981 (April 4,

1996). With this action, the proceeding

is terminated.

EFFECTIVE DATE: January 27, 1998.

FOR FURTHER INFORMATION CONTACT:

Robert Hayne, Mass Media Bureau,

(202) 418–2177.

SUPPLEMENTARY INFORMATION: This is a

synopsis of the Memorandum Opinion

and Order in MM Docket No. 93–17,

adopted January 5, 1998, and released

January 9, 1998. The full text of this

decision is available for inspection and

copying during normal business hours

in the FCC Dockets Branch (Room 230),

1919 M Street, NW., Washington, DC.

The complete text of this decision may

also be purchased from the

Commission’s copy contractor,

International Transcription Service,

(202) 857–3805, 1231 M Street, NW.,

Washington, DC 20037.

List of Subjects in 47 CFR Part 73

Radio broadcasting.

Federal Communications Commission.

Douglas W. Webbink,

Chief, Policy and Rules Division, Mass Media

Bureau.

[FR Doc. 98–1841 Filed 1–26–98; 8:45 am]

BILLING CODE 6712–01–F

FEDERAL COMMUNICATIONS

COMMISSION

47 CFR Part 73

[MM Docket No. 97–210; RM–9166]

Radio Broadcasting Services; Soldiers

Grove, WI

AGENCY: Federal Communications

Commission.

ACTION: Final rule.

SUMMARY: This document allots Channel

290A to Soldiers Grove, Wisconsin, as

that community’s first local FM

broadcast service in response to a

petition filed by Lyle Robert Evans d/b/

a Rural Radio Company. See 62 FR

54006, October 17, 1997. The

coordinates for Channel 290A at

Soldiers Grove are 43–28–16 and 90–

40–21. There is a site restriction 11.8

kilometeres (7.3 miles) northeast of the

communtiy. With this action, this

proceeding is terminated. A filing

window for Channel 290A at Soldiers

Grove, Wisconsin, will not be opened at

this time. Instead, the issue of opening

a filing window for this channel will be

addressed by the Commission in a

subsequent order.

EFFECTIVE DATE: February 23, 1998.

FOR FURTHER INFORMATION CONTACT:

Kathleen Scheuerle, Mass Media

Bureau, (202) 418–2180.

SUPPLEMENTARY INFORMATION: This is a

summary of the Commission’s Report

and Order, MM Docket No. 97–210,

adopted December 17, 1997, and

released January 9, 1998. The full text

of this Commission decision is available

for inspection and copying during

normal business hours in the

Commission’s Reference Center (Room

239), 1919 M Street, NW, Washington,

DC. The complete text of this decision

may also be purchased from the

Commission’s copy contractors,

International Transcription Services,

Inc., 1231 20th Street, NW.,

Washington, DC. 20036, (202) 857–3800,

facsimile (202) 857–3805.

List of Subjects in 47 CFR Part 73

Radio broadcasting.

Part 73 of title 47 of the Code of

Federal Regulations is amended as

follows:

PART 73—[AMENDED]

1. The authority citation for Part 73

continues to read as follows:

Authority: 47 U.S.C. 154, 303, 334, 336.

§ 73.202 [Amended]

2. Section 73.202(b), the Table of FM

Allotments under Wisconsin, is

amended by adding Soldiers Grove,

Channel 290A.

Federal Communications Commission.

John A. Karousos,

Chief, Allocations Branch, Policy and Rules

Division, Mass Media Bureau.

[FR Doc. 98–1840 Filed 1–26–98; 8:45 am]

BILLING CODE 6712–01–F

FEDERAL COMMUNICATIONS

COMMISSION

47 CFR Part 73

[MM Docket Nos. 96–232; 97–35; RM–8868;

RM–8900; RM–9055; RM–9056]

Radio Broadcasting Services; Calhan,

Canon City, Pueblo and Pueblo West,

CO

AGENCY: Federal Communications

Commission.

ACTION: Final rule.

SUMMARY: This document grants

allotment proposals in the abovereferenced, interrelated proceedings

regarding the communities of Pueblo,

Pueblo West, Canon City and Calhan,

Colorado, in response to petitions for

rule making filed on behalf of Pueblo

Broadcasters, Inc. (MM Docket No. 96–

232; RM–8868) and Calhan Radio, Inc.

(MM Docket No. 97–35; RM–8900), as

well as counter-proposals filed in each

proceeding by Pueblo Broadcasters, Inc.

(RM–9055 and RM–9056 respectively),

as set forth infra (see Supplementary

Information). See 61 FR 65008,

December 10, 1996, and 62 FR 4224,

January 29, 1997. With this action the

proceeding is terminated.