[Federal Register Volume 60, Number 241 (Friday, December 15, 1995)]
[Proposed Rules]
[Page 65010]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-30453]




[[Page 65009]]

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Part IV





Federal Communications Commission





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47 CFR Part 36



Federal-State Joint Board Extension of Indexed Cap on Total Level of 
Universal Service Fund; Proposed Rule



Establishment of a Joint Board; Final Rule

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

[[Page 65010]]


FEDERAL COMMUNICATIONS COMMISSION

47 CFR Part 36

[CC Docket No. 80-286, FCC 95J-1]


Federal-State Joint Board; Extension of Indexed Cap on Total 
Level of Universal Service Fund

AGENCY: Federal Communications Commission.

ACTION: Recommended decision of Federal-State Joint Board.

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SUMMARY: The Federal-State Joint Board recommends the extension of the 
duration of the interim indexed cap on the total level of the Universal 
Service Fund (USF) for an additional six months. The cap was intended 
as an interim measure moderating the growth of the USF during the 
pendency of a broader rulemaking revising the Part 36 jurisdictional 
separations rules governing the USF. The Federal-State Joint Board 
recommends the extension of the interim cap, which expires January 1, 
1996, for an additional six months while that rulemaking is completed.

FOR FURTHER INFORMATION CONTACT: Clara Kuehn, 202-418-0844, Deborah A. 
Dupont, 202-418-0873, Accounting and Audits Division, Common Carrier 
Bureau.

SUPPLEMENTARY INFORMATION: This is a summary of the Federal-State Joint 
Board's Recommended Decision CC Docket No. 80-286, FCC 95J-1, adopted 
December 7, 1995, and released December 8, 1995.
    The full text of Recommended Decisions of the Joint Board are 
available for inspection and copying during normal business hours in 
the FCC Dockets Branch (room 230), 1919 M Street, NW, Washington DC. 
The full text of this Recommended Decision may also be purchased from 
the Commission's copy contractors, International Transcription Service, 
(202) 857-3800, 2100 M Street, NW, Suite 140, Washington DC 20037.

Summary of Recommended Decision

    In 1993, the Commission imposed a two-year indexed cap (cap) on the 
total level of the Universal Service Fund (USF) for the purpose of 
moderating growth in the USF during the pendency of a planned 
rulemaking that would address permanent changes in the Commission's 
rules governing the USF. 58 FR 69239, Dec. 30, 1993. On October 3, 
1995, the Commission issued a Notice of Proposed Rulemaking, proposing 
a six-month extension of the cap in order to continue to moderate 
growth in the USF while the Commission completed its USF rulemaking. 60 
FR 52359, Oct. 6, 1995. The Commission explained that the duration of 
the cap had been limited to two years in the belief that the USF 
rulemaking would be completed within that period and that an additional 
six months would be sufficient to complete the USF rulemaking in view 
of the progress made to date. Id. at 52361. The Commission referred the 
issues raised in its Notice of Proposed Rulemaking to the Federal-State 
Joint Board for a Recommended Decision and invited interested parties 
to propose extensions of the cap for longer or shorter periods than six 
months. Id. at 52360-61.
    Following review of comments and reply comments filed by interested 
parties, the Joint Board recommends that the cap be extended for an 
additional six months in order to continue to moderate growth in the 
USF while the USF rulemaking is completed. The Joint Board reiterates 
its conclusion, stated during earlier deliberations in the same 
proceeding, that the cap would minimize dislocation should the 
Commission's ongoing USF rulemaking result in revisions to the USF 
rules. In response to contentions of the parties that the proposed 
extension is unnecessary, because recent NECA submissions showed total 
USF payments in 1996 below the level of the USF as limited by an 
extension of the cap, the Joint Board explains that no one would be 
harmed if total claims for USF assistance remain below an extended cap, 
but that an extended cap would protect against unanticipated and 
unwanted growth in the fund during the pendency of the USF rulemaking 
should total claims substantially exceed NECA's current calculations. 
The Joint Board reiterates its concerns, stated earlier in the 
proceeding, regarding the pattern of growth and the overall rate of 
growth in the USF, explaining that moderating the level of the USF 
during the pendency of the USF rulemaking would serve the public 
interest.
    The Joint Board concludes that six months should be sufficient to 
complete the USF rulemaking and recommends an extension of the cap for 
six additional months. The Joint Board rejects arguments to broaden the 
scope of the USF rulemaking as beyond the scope of the Notice of 
Proposed Rulemaking.

Ordering Clause

    28. For all of the reasons discussed in this Recommended Decision, 
this Federal-State Joint Board recommends, pursuant to Section 410(c) 
of the Communications Act of 1934, as amended, 47 U.S.C. 410(c), that 
the Federal Communications Commission extend, until July 1, 1996, the 
current interim rules prescribing an indexed cap on the total level of 
the Universal Service Fund, 47 CFR 36.601, 36.622.

List of Subjects in 47 CFR Part 36

    Communications common carriers, Reporting and recordkeeping 
requirements, Telephone, Uniform System of Accounts.

Federal Communications Commission.
William F. Caton,
Acting Secretary.
[FR Doc. 95-30453 Filed 12-14-95; 8:45 am]
BILLING CODE 6712-01-P