[Federal Register Volume 60, Number 241 (Friday, December 15, 1995)]
[Rules and Regulations]
[Pages 65011-65012]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-30548]




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

[[Page 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.

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SUMMARY: These regulations enact a six-month 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 two-year 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 high-cost 
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:


Sec. 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 

[[Page 65012]]
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 Secs. 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 Sec. 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:


Sec. 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 Sec. 36.621(a) divided by the sum of the working loops 
reported in Sec. 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 Sec. 36.601(c).

[FR Doc. 95-30548 Filed 12-14-95; 8:45 am]
BILLING CODE 6712-01-P