[Federal Register Volume 61, Number 128 (Tuesday, July 2, 1996)]
[Rules and Regulations]
[Pages 34376-34377]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-16761]


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FEDERAL COMMUNICATIONS COMMISSION
47 CFR Part 36

[CC Docket 96-45; FCC-96-281]


Federal-State Joint Board on Universal Service

AGENCY: Federal Communications Commission.

ACTION: Final rule.

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SUMMARY: This Report and Order extends the duration of the indexed 
interim cap (``interim cap'') on the rate of growth of the Universal 
Service Fund (``USF''), amending the Commission's rules regarding 
jurisdictional separations. This action will moderate the growth of the 
USF while the Federal-State Joint Board on Universal Service and the 
Commission consider changes to the universal service rules. The interim 
cap is extended in order to facilitate the transition to any new 
universal service rules that are adopted consistent with the mandates 
of the Telecommunications Act of 1996.

EFFECTIVE DATE: July 1, 1996.

FOR FURTHER INFORMATION CONTACT: Pam Szymczak, Accounting and Audits 
Division, Common Carrier Bureau at (202) 418-0389.

SUPPLEMENTARY INFORMATION: This Report and Order adopts the Recommended 
Decision of the Federal-State Joint Board on Universal Service, FCC 
96J-1 (released June 19, 1996) and extends the interim cap on the 
growth of the Universal Service Fund. The Report and Order extends the 
interim cap until the Commission's final rules on universal service, to 
be adopted on or before May 8, 1997, become effective. The Federal-
State Joint Board recommended, and the Commission concurs in the Report 
and Order, that extending the duration of the cap will facilitate a 
transition to any new universal service rules that may be implemented 
pursuant to the Telecommunications Act of 1996, Pub. L. No. 104-104, 
110 Stat. 56 (1996). For all the reasons stated in the Report and 
Order, the Commission finds good cause for making the rule amendments 
effective on less than 30 days notice. The Notice of Proposed 
Rulemaking initiating this proceeding was released March 8, 1996 (FCC 
96-93).

List of Subjects in 47 CFR Part 36

    Communications common carriers, Telephone and Uniform System of 
Accounts.

Federal Communications Commission.
William F. Caton,
Acting Secretary.

Rule Changes

    Part 36 of Title 47 of the Code of Federal Regulations is amended 
as follows:

 PART 36--JURISDICTIONAL SEPARATIONS PROCEDURES; STANDARD 
PROCEDURES FOR SEPARATING TELECOMMUNICATIONS PROPERTY COSTS, 
REVENUES, EXPENSES, TAXES AND RESERVES FOR TELECOMMUNICATIONS 
COMPANIES

    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, 1994, and 
terminating on the effective date of the Commission's universal service 
rules, to be adopted in CC Docket 96-45 on or before May 8, 1997, the 
annual amount of the total Universal Service 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 nationwide 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

[[Page 34377]]

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 paragraph (c) to read as 
follows:


Sec. 36.622  National and study area average unseparated loop costs.

* * * * *
    (c) During an interim period commencing on January 1, 1994, and 
terminating on the effective date of the Commission's universal service 
rules, to be adopted in CC Docket No. 96-45 on or before May 8, 1997, 
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. 96-16761 Filed 6-28-96; 10:18 am]
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