[Federal Register Volume 61, Number 187 (Wednesday, September 25, 1996)]
[Rules and Regulations]
[Pages 50244-50246]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-24473]


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FEDERAL COMMUNICATIONS COMMISSION

47 CFR Parts 32, 43 and 64

[CC Docket No. 96-193; FCC 96-370]


Implementation of the Telecommunications Act of 1996: Reform of 
Filing Requirements and Carrier Classifications

AGENCY: Federal Communications Commission.

ACTION: Final rule.

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SUMMARY: This Order revises the Commission's rules to require only 
annual Automated Reporting Management Information System (``ARMIS'') 
reports and annual Cost Allocation Manual revisions. These changes were 
required by the Telecommunications Act of 1996. Because the 1996 Act 
did not specify how we should measure inflation in adjusting references 
to carrier revenues, we also adopt interim rules to adjust those 
references for inflation using a generally available inflation index. 
The intended effect of this action is to

[[Page 50245]]

reduce the more frequent filings we previously required.

EFFECTIVE DATE: September 25, 1996.

FOR FURTHER INFORMATION CONTACT: Valerie Yates, Accounting and Audits 
Division, Common Carrier Bureau at 202-418-0850.

SUPPLEMENTARY INFORMATION: This is a summary of the Commission's Order 
implementing Sections 402(b)(2)(B) and 402(c) of the Telecommunications 
Act of 1996 adopted September 3, 1996 and released September 11, 1996. 
The full text of this Commission Order is available for inspection and 
copying during normal business hours in the FCC Public Reference Room 
(Room 230), 1919 M St., N.W., Washington, D.C. The complete text of 
this decision may also be purchased from the Commission's copy 
contractor, International Transcript Service (202) 857-3800, 1919 M 
St., N.W., Suite 246, Washington, D.C. 20554.
    2. The Commission has not published a notice of proposed 
rulemaking, as allowed by 5 U.S.C. 553(b)(B) when the agency 
determines, for good cause, that it is unnecessary to publish a 
proposed rule and obtain comments from interested persons. The 
Commission has determined that publication of a proposed rule is 
unnecessary for the following reasons. The rule changes to require only 
annual ARMIS reports and cost allocation manual revisions merely 
implement the requirements of the 1996 Act and involve no discretionary 
action by the Commission. The changes to revenue thresholds are 
necessary to comply with the effective date of the statutory directive. 
Providing prior notice and an opportunity to comment would be 
impracticable and contrary to the public interest.
    3. Paperwork Reduction Analysis: Public reporting burden for this 
collection of information is estimated to average 220 hours per 
response, including the time frame for reviewing instructions, 
searching existing data sources, gathering and maintaining the data 
needed, and completing and reviewing the collection of information. 
Send comments regarding this burden estimate or any other aspect of 
this collection of information, including suggestions for reducing the 
burden, to the Federal Communications Commission, Records Management 
Branch, Paperwork Reduction Project (3060-0511), Washington, D.C. 20554 
and to the Office of Management and Budget, Paperwork Reduction Project 
(3060-0511), Washington, D.C. 20503.

Ordering Clauses

    Accordingly, it is ordered that, pursuant to Sections 402(b)(2)(B) 
and 402(c) of the Telecommunications Act of 1996, Pub. L. No. 104-104, 
sec. 402(b)(2)(B) and 402(c), and Sections 1, 4, 201-205, 215, 218, 220 
of the Communications Act of 1934, as amended, 47 U.S.C. Secs. 151(a), 
154, 201-205, 215, 218 and 220, and Section 553(b)(B) of the 
Administrative Procedure Act, 5 U.S.C. Sec. 553(b)(B), Parts 32, 43, 
and 64 of the Commission's rules, 47 CFR Parts 32, 43, and 64 are 
amended, as set forth below.
    It is further ordered that this Report and Order will be effective 
September 25, 1996.

List of Subjects in 47 CFR Parts 32, 43 and 64

    Communications common carriers, Reporting and recordkeeping 
requirements, Telephone.

Federal Communications Commission.
Shirley S. Suggs,
Chief, Publications Branch.

Rule Changes

    Parts 32, 43 and 64 of Title 47 of the CFR are amended as follows:

PART 32--UNIFORM SYSTEM OF ACCOUNTS FOR TELECOMMUNICATIONS 
COMPANIES

    1. The authority citation for Part 32 is revised to read as 
follows:

    Authority: 47 U.S.C. 154.

    2. Section 32.11 is amended by revising paragraphs (a) (1) and 
(a)(2) to read as follows:


Sec. 32.11   Classification of companies.

    (a) * * *
    (1) Class A. Companies having annual revenues from regulated 
telecommunications operations that are equal to or above the indexed 
revenue threshold.
    (2) Class B. Companies having annual revenues from regulated 
telecommunications operations that are less than the indexed revenue 
threshold.
 * * * * *
    3. Section 32.9000 is amended by adding the definition of ``Indexed 
revenue threshold for a given year'' in alphabetical order to read as 
follows:


Sec. 32.9000   Glossary of terms.

* * * * *
    Indexed revenue threshold for a given year means $100 million, 
adjusted for inflation, as measured by the Department of Commerce Gross 
Domestic Product Chain-type Price Index (GDP-CPI), for the period from 
October 19, 1992 to the given year. The indexed revenue threshold for a 
given year shall be determined by multiplying $100 million by the ratio 
of the annual value of the GDP-CPI for the given year to the estimated 
seasonally adjusted GDP-CPI on October 19, 1992. The indexed revenue 
threshold shall be rounded to the nearest $1 million. The seasonally 
adjusted GDP-CPI on October 19, 1992 is determined to be 100.69.
 * * * * *

PART 43--REPORTS OF COMMUNICATION COMMON CARRIERS AND CERTAIN 
AFFILIATES

    1. The authority citation for Part 43 is revised to read as 
follows:

    Authority: 47 U.S.C. 154.

    2. Section 43.21 is amended by revising the first two sentences of 
paragraph (a), revising paragraph (c), revising the first two sentences 
of paragraph (d), revising the introductory text of paragraph (f), and 
adding new paragraph (g) to read as follows:


Sec. 43.21   Annual reports of carriers and certain affiliates.

    (a) Communication common carriers having annual operating revenues 
in excess of the indexed revenue threshold, as defined in Sec. 32.9000, 
and certain companies (as indicated in paragraph (c) of this section) 
directly or indirectly controlling such carriers shall file with the 
Commission annual reports or an annual letter as provided in this 
section. Except as provided in paragraphs (c), (e), (f), and (g) of 
this section, each annual report required by this section shall be 
filed not later than March 31 of each year, covering the preceding 
calendar year. * * *
* * * * *
    (c) Each company, not itself a communication common carrier, that 
directly or indirectly controls any communication common carrier that 
has annual operating revenues equal to or above the indexed revenue 
threshold shall file annually with the Commission, not later than the 
date prescribed by the Securities and Exchange Commission for its 
purposes, two complete copies of any annual report Forms 10-K (or any 
superseding form) filed with that Commission.
    (d) Each miscellaneous common carrier (as defined by Sec. 21.2 of 
this chapter) with operating revenues for a calendar year in excess of 
the indexed revenue threshold shall file with the Common Carrier Bureau 
Chief a letter showing its operating revenues for that year and the 
value of its total

[[Page 50246]]

communications plant at the end of that year. Each record carrier with 
operating revenues for a calendar year in excess of three-fourths of 
the indexed revenue threshold shall file a letter showing selected 
income statement and balance sheet items for that year with the Common 
Carrier Bureau Chief. * * *
* * * * *
    (f) Each local exchange carrier with annual operating revenues 
equal to or above the indexed revenue threshold shall file, no later 
than April 1 of each year, reports showing:
* * * * *
    (g) Each local exchange carrier with operating revenues for the 
preceding year that are equal to or above the indexed revenue threshold 
shall file, no later than April 1 of each year, a report showing for 
the previous calendar year its revenues, expenses, taxes, plant in 
service, other investment and depreciation reserves, and such other 
data as are required by the Commission, on computer media prescribed by 
the Commission. The total operating results shall be allocated between 
regulated and nonregulated operations, and the regulated data shall be 
further divided into the following categories: State and interstate, 
and the interstate will be further divided into common line, traffic 
sensitive access, special access and nonaccess.
    3. Section 43.22 is revised to read as follows:


Sec. 43.22  Quarterly reports of communication common carriers.

    Each designated interstate carrier with operating revenues for the 
preceding year that are equal to or above the indexed revenue threshold 
shall file, by March 31, June 30, September 30, and December 31 of each 
year, a report showing for the previous calendar quarter its revenues, 
expenses, taxes, plant in service, other investment and depreciation 
reserves, and such other data as are required by the Commission, on 
computer media prescribed by the Commission. The total operating 
results shall be allocated between regulated and nonregulated 
operations, and the regulated data shall be further divided into the 
following categories: State and interstate, and the interstate will be 
further divided into the major services.
    4. Section 43.41 is amended by revising the first sentence to read 
as follows:


Sec. 43.41  Reports on Inside Wiring Services.

    Each local exchange carrier with annual operating revenues equal to 
or above the indexed revenue threshold shall file, within thirty (30) 
days of its publication or release, a copy of any state or local 
statute, rule, order, or other document that regulates, or proposes to 
regulate, the price or prices the local exchange carrier charges for 
inside wiring services. * * *
    5. Paragraph (a) of section 43.43 is revised to read as follows:


Sec. 43.43  Reports of proposed changes in depreciation rates.

    (a) Each communication common carrier with annual operating 
revenues equal to or above the indexed revenue threshold and which has 
been found by this Commission to be a dominant carrier with respect to 
any communications service shall, before making any change in the 
depreciation rates applicable to its operated plant, file with the 
Commission a report furnishing the data described in the subsequent 
paragraphs of this section, and also comply with the other requirements 
thereof.
* * * * *

PART 64--MISCELLANEOUS RULES RELATING TO COMMON CARRIERS

    1. The authority citation for Part 64 is revised to read as 
follows:

    Authority: 47 U.S.C. 154.

    2. Section 64.903 is amended by revising the introductory text of 
paragraph (a) and paragraph (b) to read as follows:


Sec. 64.903  Cost Allocation Manuals.

    (a) Each local exchange carrier with annual operating revenues 
equal to or above the indexed revenue threshold, as defined in 
Sec. 32.9000 of this chapter, shall file with the Commission a manual 
containing the following information regarding its allocation of costs 
between regulated and nonregulated activities:
* * * * *
    (b) Each carrier shall ensure that the information contained in its 
cost allocation manual is accurate. Carriers must update their cost 
allocation manuals at least annually, except that changes to the cost 
apportionment table and to the description of time reporting procedures 
must be filed at least 60 days before the carrier plans to implement 
the changes. Annual cost allocation manual updates shall be filed on or 
before the last working day of each calendar year. Proposed changes in 
the description of time reporting procedures, the statement concerning 
affiliate transactions, and the cost apportionment table must be 
accompanied by a statement quantifying the impact of each change on 
regulated operations. Changes in the description of time reporting 
procedures and the statement concerning affiliate transactions must be 
quantified in $100,000 increments at the account level. Changes in cost 
apportionment tables must be quantified in $100,000 increments at the 
cost pool level. The Chief, Common Carrier Bureau may suspend any such 
changes for a period not to exceed 180 days, and may thereafter allow 
the change to become effective or prescribe a different procedure.
* * * * *
[FR Doc. 96-24473 Filed 9-24-96; 8:45 am]
BILLING CODE 6712-01-P