Federal Register / Vol. 60, No. 241 / Friday, December 15, 1995 / Rules and Regulations 65011

FEDERAL COMMUNICATIONS

COMMISSION

47 CFR Part 36

[CC Docket No. 80–286, FCC 95–494]

Establishment of a Joint Board

AGENCY: Federal Communications

Commission.

ACTION: Final rule.

SUMMARY: These regulations enact a sixmonth extension of the interim indexed

cap on the total level of the Universal

Service Fund (‘‘USF’’). The cap was

intended to be effective as an interim

measure moderating the growth of the

USF during the pendency of a broader

rulemaking that revises the Part 36

jurisdictional separations rules

governing the USF. The interim cap is

scheduled to expire on January 1, 1996.

The extension will maintain the interim

cap while the rulemaking is completed.

EFFECTIVE DATE: December 15, 1995.

FOR FURTHER INFORMATION CONTACT:

Jeanine Poltronieri, (202) 418–0866,

Deborah A. Dupont, (202) 418–0873,

Common Carrier Bureau, Accounting

and Audits Division.

SUPPLEMENTARY INFORMATION: This is a

summary of the Federal Communication

Commission’s Report and Order in

Amendment of Part 36 of the

Commission’s Rules and Establishment

of a Joint Board, FCC 95–494, CC Docket

No. 80–286, adopted December 11,

1995, and released December 12, 1995.

The Commission has made the full text

of the Order available for inspection and

copying during normal business hours

in the Commission’s Reference Center,

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

Washington, D.C. 20554, and will

publish it in the FCC Record. The full

text of the Order may also be purchased

from the Commission’s duplicating

contractor, International Transcription

Service, 2100 M Street, N.W., Suite 140,

Washington, D.C., (202) 857–3800.

The Commission adopted the twoyear indexed cap for the purpose of

moderating growth in the USF during

the pendency of a rulemaking that

addresses possible permanent changes

to the Part 36 jurisdictional separations

rules. Previous changes to the rules had

involved lengthy phase-in periods to

ease the transition for affected carriers.

By moderating the growth in the USF

and consequently individual carriers’

draw from that fund, the interim cap

was intended to enable the Commission

to implement new rules in a timely

manner. The two-year period was

selected in the belief that the

rulemaking would be completed within

that time. The interim cap is scheduled

to expire on January 1, 1996.

On August 30, 1994, the Commission

released an initial Notice of Inquiry, 59

FR 46606, Sept. 9, 1994, requesting

comment on several policy questions

relating to the goals and effects of highcost assistance and on two alternative

approaches to the high-cost assistance

mechanisms of Part 36. On July 13,

1995, the Commission subsequently

released a Notice of Proposed

Rulemaking and Notice of Inquiry

(‘‘Notice’’), 60 FR 46803, Sept. 8, 1995,

inviting comment on proposals for

revising the Part 36 jurisdictional

separations rules. On August 31, 1995,

in response to requests from interested

parties, the deadlines for comments and

reply comments on the issues raised in

the Notice were extended four

additional weeks. In granting the

extension, the Commission explained

that the extension would serve the

public interest by facilitating more

detailed analysis by interested parties,

which should prove helpful to the

ultimate resolution of the complex

issues presented in the Notice.

On October 3, 1995, we issued a

notice of proposed rulemaking,

(‘‘Extension Notice’’), 60 FR 52359, Oct.

6, 1995, proposing the extension of the

interim cap for an additional six

months. We referred the issues raised in

the Extension Notice to the Joint Board

for a recommended decision. In the

Extension Notice, we noted that we had

limited the duration of the interim cap

to two years in the belief that two years

would be sufficient for the completion

of the Part 36 USF jurisdictional

separations rulemaking. We also

emphasized that because of the

complexity of the issues in the

rulemaking, the rulemaking would take

more time than the anticipated two

years to complete, despite diligent effort

by the Commission and Joint Board staff

and interested parties. The Joint Board

has recently released a recommended

decision recommending that the

Commission extend the interim cap. In

view of the scope of the proposals under

consideration in the current rulemaking,

the process may conclude with new

USF rules retargeting assistance.

Consequently, the rationale articulated

by the Commission in support of the

original interim cap during the

pendency of the rulemaking remains

valid. Given the progress in the

rulemaking process to date, the

Commission believes that an additional

six months should be sufficient to

complete it and that the extension is

essential to allow full analysis of the

complex issues raised in this

rulemaking. We believe that extending

the interim cap for an additional six

months will allow growth in the USF to

be moderated while the rulemaking

revising the USF jurisdictional

separations rules is completed. To

continue to moderate the growth of the

USF effectively during the entire

rulemaking period, the six-month

extension must be effective by the

January 1, 1996, expiration of the

interim cap. In addition, the

Commission has reserved the discretion

to consider a longer extension of the

interim cap, without further notice, if it

becomes clear that the rulemaking will

not be completed by July 1, 1996, on the

basis of the record already developed.

These rule changes will become

effective immediately upon their

publication in the Federal Register.

Pursuant to 5 U.S.C. 553 (d)(3) the

Commission found good cause to have

the rule amendments take effect

immediately upon publication in the

Federal Register. The revised rules must

be effective in less than 30 days so that

the extended interim cap is in place by

the expiration date of the interim cap,

January 1, 1996.

Accordingly, pursuant to Sections 1,

(4)(i), 221(c), and 410(c) of the

Communications Act of 1934, as

amended, 47 U.S.C. 151, 154(i), 221(c),

and 410(c), it is ordered That Part 36 of

the Commission’s Rules and

Regulations, 47 C.F.R. Part 36, Subpart

F—Universal Service Fund, is amended

as shown in the rule changes below.

List of Subjects in 47 CFR Part 36

Communications common carriers,

Jurisdictional separations procedures,

Reporting and recordkeeping

requirements, Telephone, Universal

System of Accounts.

Federal Communications Commission.

William F. Caton,

Acting Secretary.

Rule Changes

Parts 36 of Title 47 of the Code of

Federal Regulations is amended as

follows:

PART 36—[AMENDED]

1. The authority citation for Part 36

continues to read as follows:

Authority: 47 U.S.C. Secs. 151, 154(i) and

(j), 205, 221(c), 403 and 410.

2. Section 36.601 is amended by

revising paragraph (c) to read as follows:

§ 36.601 General.

* * * * *

(c) During an interim period

commencing on January 1, 1996, and

terminating on July 1, 1996, the annual

amount of the total Universal Service
65012 Federal Register / Vol. 60, No. 241 / Friday, December 15, 1995 / Rules and Regulations

Fund shall not exceed the amount of the

total Universal Service Fund for the

immediately preceding calendar year,

increased by a rate equal to the rate of

increase in the total number of working

loops during the calendar year

preceding the June filing. The total

Universal Service Fund shall consist of

the Universal Service expense

adjustments, including amounts

calculated pursuant to §§ 36.612(a) and

36.631. The rate of increase in total

working loops shall be based upon the

difference between the number of total

working loops on December 31 of the

year preceding the June filing and the

number of total working loops on

December 31 of the second year

preceding that filing, both calculated

pursuant to § 36.611(a)(8).

3. Section 36.622 is amended by

revising the first sentence of paragraph

(a) and paragraph (c) to read as follows:

§ 36.622 National and study area average

unseparated loop costs.

(a) National Average Unseparated

Loop Cost per Working Loop. Except as

provided in paragraph (c) of this

section, this is equal to the sum of the

Loop Costs for each study area in the

country as calculated pursuant to

§ 36.621(a) divided by the sum of the

working loops reported in § 36.611(a)(8)

for each study area in the country.

* * *

* * * * *

(c) During an interim period

commencing on January 1, 1996, and

terminating on July 1, 1996, the

National Average Unseparated Loop

Cost per Working Loop shall be the

greater of:

(1) The amount calculated pursuant to

the method described in paragraph (a) of

this section; or

(2) An amount calculated to produce

the maximum total Universal Service

Fund allowable pursuant to § 36.601(c).

[FR Doc. 95–30548 Filed 12–14–95; 8:45 am]

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