[Federal Register Volume 61, Number 210 (Tuesday, October 29, 1996)]
[Proposed Rules]
[Page 55779]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-27684]


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 Proposed Rules
                                                 Federal Register
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 This section of the FEDERAL REGISTER contains notices to the public of 
 the proposed issuance of rules and regulations. The purpose of these 
 notices is to give interested persons an opportunity to participate in 
 the rule making prior to the adoption of the final rules.
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  Federal Register / Vol. 61, No. 210 / Tuesday, October 29, 1996 / 
Proposed Rules  

[[Page 55779]]



FEDERAL COMMUNICATIONS COMMISSION

47 CFR Part 36

[CC Docket No. 80-286; FCC 96J-2]


Establishment of a Joint Board

AGENCY: Federal Communications Commission.

ACTION: Proposed rule; recommended decision.

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SUMMARY: On September 27, 1996, the Federal-State Joint Board in CC 
Docket No. 80-286 adopted a Recommended Decision regarding permanent 
rules for the separation of the expenses assigned to the other billing 
and collecting category of the Commission's rules (OB&C) between the 
state and interstate jurisdictions.1 In a Notice of Proposed 
Rulemaking released May 15, 1995,2 the Commission had requested 
that the Joint Board recommend permanent rules that would reflect 
reasonable principles of cost causation and would not be unnecessarily 
burdensome to implement and administer. Through its Recommended 
Decision, the Joint Board intended to assist the Commission in 
formulating permanent rules for the jurisdictional separation of OB&C 
expenses that satisfy the Commission's stated goals that the permanent 
rules reflect principles of cost causation, not be unnecessarily 
burdensome to implement and administer, be simple to audit, and be 
certain and predictable in their effect.3
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    \1\ Amendment of Part 36 of the Commission's Rules and 
Establishment of a Joint Board, Recommended Decision, FCC 96J-2, CC 
Docket No. 80-286 (rel. Sept. 27, 1996).
    \2\ Amendment of Part 36 of the Commission's Rules and 
Establishment of a Joint Board, Notice of Proposed Rulemaking, 10 
FCC Rcd 7013 (1995) (Notice).
    \3\ Notice, 10 FCC Rcd at 7015.

FOR FURTHER INFORMATION CONTACT: Jon Reel, (202) 418-0872, Common 
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Carrier Bureau, Accounting and Audits Division.

SUPPLEMENTARY INFORMATION: This is a summary of the Federal-State Joint 
Board recommendation to the Federal Communication Commission, Amendment 
of Part 36 of the Commission's Rules and Establishment of a Joint 
Board, Recommended Decision, FCC 96J-2, CC Docket No. 80-286, adopted 
and released September 27, 1996. This action was initiated by a Notice 
of Proposed Rulemaking released May 15, 1995 (60 FR 30059). The 
Commission has made the full text of the Recommended Decision available 
for inspection and copying during normal business hours in the 
Commission's Reference Center, Room 239, 1919 M Street, NW., 
Washington, DC 20554, and will publish it in the FCC Record. The full 
text of the Recommended Decision may also be purchased from the 
Commission's duplicating contractor, International Transcription 
Service, 2100 M Street, NW., Suite 140, Washington, DC 20037, telephone 
number (202) 857-3800.
    Summary of Recommended Action: The Recommended Decision of the 
Federal-State Joint Board in CC Docket No. 80-286 concerns the 
allocation of OB&C expenses between the federal and state 
jurisdictions. OB&C expenses are the expenses incurred by incumbent 
local exchange carriers (ILECs) in preparing and rendering customer 
bills and in accounting for revenues generated by those bills. Under 
the recommended permanent rules, OB&C expenses would be allocated 
equally among local exchange, intrastate toll, and interstate toll 
service. This allocation would result in allocating two-thirds of OB&C 
expenses to the state jurisdiction, and one third of OB&C expenses to 
the interstate jurisdiction. ILECs that do not bill for interexchange 
carriers will allocate five percent of OB&C expenses to the interstate 
jurisdiction to cover the cost of billing the federal Subscriber Line 
Charge. The Joint Board found that, because OB&C expenses are largely 
joint and common expenses, an allocation procedure based on usage of 
individual services would not allocate expenses more accurately than a 
fixed allocation factor. The Joint Board therefore gave great weight to 
additional considerations such as convenience and predictability, and 
found that a fixed-factor method of allocation best satisfied those 
considerations.
    2. Recommendation Clauses: For all 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 
amend Part 36, Subpart D of the Commission's Rules, 47 CFR Part 36, 
Subpart D.

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.
[FR Doc. 96-27684 Filed 10-28-96; 8:45 am]
BILLING CODE 6712-01-P