[Federal Register Volume 62, Number 174 (Tuesday, September 9, 1997)]
[Proposed Rules]
[Pages 47404-47406]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 97-23828]


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FEDERAL COMMUNICATIONS COMMISSION

47 CFR Parts 54 and 64

[CC Docket Nos. 96-45; 97-21; FCC 97-292]


Changes to the Board of Directors of the National Exchange 
Carrier Association, Inc. and Federal-State Joint Board on Universal 
Service

AGENCY: Federal Communications Commission.

ACTION: Proposed rule.

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SUMMARY: The Further Notice of Proposed Rulemaking released August 15, 
1997 proposes to amend the Commission's rules regarding revenue 
information submitted to NECA by TRS contributors. The proposed rules 
would permit USAC, NECA, to the extent that it is acting on behalf of 
USAC, and the permanent universal service Administrator, to use revenue 
data submitted to the TRS Administrator by TRS contributors in order to 
verify revenue information provided on the Universal Service Worksheet 
by contributors to the universal service support mechanisms.

DATES: Comments are to be filed on or before September 11, 1997. Reply 
comments are to be filed on or before September 26, 1997.

ADDRESSES: Office of the Secretary, Federal Communications Commission, 
1919 M Street, NW., Room 222, Washington, DC 20554.

FOR FURTHER INFORMATION CONTACT: Valerie Yates, Legal Counsel, Common 
Carrier Bureau, (202) 418-1500 or Sheryl Todd, Common Carrier Bureau, 
(202) 418-7400.

SUPPLEMENTARY INFORMATION: This is a summary of the Commission's 
Further Notice of Proposed Rulemaking adopted and released on August 
15, 1997. The full text is available for inspection and copying during 
normal business hours in the FCC Reference Center (Room 239), 1919 M 
St., N.W., Washington, D.C. Pursuant to the Telecommunications Act of 
1996, the Commission released a Notice of Proposed Rulemaking and Order 
Establishing a Joint Board, Federal-State Joint Board on Universal 
Service, CC Docket No. 96-45, on March 8, 1996 (61 FR 10499 (March 14, 
1996)), a

[[Page 47405]]

Recommended Decision on November 8, 1996 (61 FR 63778 (December 2, 
1996)), a Public Notice seeking comment on rules to implement 
Sec. Sec. 254 and 214(e) of the Communications Act of 1934, as amended, 
relating to universal service on November 18, 1996 (61 FR 63778 
(December 2, 1996)), a Notice of Proposed Rulemaking in Changes to the 
Board of Directors of the National Exchange Carrier Association, Inc. 
in CC Docket No. 97-21, on January 10, 1997 (62 FR 2636 (January 17, 
1997)), a Report and Order in Federal-State Joint Board on Universal 
Service, CC Docket No. 96-45, on May 8, 1997 (62 FR 32862 (June 17, 
1997)), and a Report and Order and Second Order on Reconsideration in 
Changes to the Board of Directors of the National Exchange Carrier 
Association, Inc. and Federal-State Joint Board on Universal Service, 
CC Docket Nos. 97-21 and 96-45, on July 18, 1997 (62 FR 41294 (August 
1, 1997)). The Further Notice of Proposed Rulemaking certifies, 
pursuant to section 605(b) of the Regulatory Flexibility Act (RFA), 
that the proposed rule amendments would not have a significant economic 
impact on a substantial number of small entities and seeks comment on 
this tentative conclusion.

Summary of Further Notice of Proposed Rulemaking

I. Further Notice of Proposed Rulemaking

    In this Further Notice of Proposed Rulemaking (FNPRM) we propose to 
amend Sec. 64.604(c)(4)(iii)(I) of the Commission's rules to permit the 
use of TRS Fund revenue data by USAC, NECA, to the extent that it is 
acting on behalf of USAC, and the permanent universal service 
Administrator to enable those entities to verify revenue information 
provided by contributors pursuant to the Universal Service Worksheet. 
Although Sec. 64.604(c)(4)(iii)(I) specifically provides that the 
Commission may order the disclosure of the underlying revenue data 
contained in the TRS Fund database, we note that the rule also imposes 
limitations regarding permissible use of the data. Therefore, in light 
of the limitations imposed on NECA by Sec. 64.604(c)(4)(iii)(I) 
regarding permissible use of the data, and consistent with our prior 
practice, we propose to amend the rule rather than directing NECA, in 
its capacity as TRS Administrator, to disclose the data to the 
universal service Administrator. Accordingly, we propose to amend the 
rule to state that the TRS Fund data also may be used by USAC, NECA, to 
the extent that it is acting on behalf of USAC, and the permanent 
universal service Administrator, for the purpose of verifying revenue 
information provided by contributors to the universal service support 
mechanisms. We further propose to amend Sec. 54.711(b) to clarify that, 
except as specified here, the duty of NECA, USAC, and the permanent 
Administrator to keep confidential all data obtained from universal 
service contributors, not to use such data except as provided in the 
proposed rule amendment, and not to disclose the information in 
company-specific form unless directed to do so by the Commission 
extends to data obtained from the TRS Fund as well.
    We tentatively conclude that these proposed amendments are 
sufficient to maintain the confidentiality of the TRS Fund revenue data 
disclosed to the universal service Administrator in light of the 
restrictions we propose to impose upon their use. We seek comment on 
this tentative conclusion and the proposed rule amendments set forth 
below.

II. Procedural Matters

A. Ex Parte
    The FNPRM is a permit-but-disclose notice and comment rulemaking 
proceeding. Ex parte presentations are permitted, except during the 
Sunshine Agenda period, provided they are disclosed as provided in the 
Commission's rules.
B. Regulatory Flexibility
    Section 603 of the Regulatory Flexibility Act (RFA), as amended, 
requires an Initial Regulatory Flexibility Analysis in notice and 
comment rulemaking proceedings, unless the head of the agency certifies 
that ``the rule will not, if promulgated, have a significant economic 
impact on a substantial number of small entities.'' The FNPRM portion 
of this proceeding applies only to NECA's obligation to disclose 
certain TRS Fund data to the universal service Administrator.
    For the purposes of this FNPRM, the RFA defines a ``small 
business'' to be the same as a ``small business concern'' under the 
Small Business Act, unless the Commission has developed one or more 
definitions that are appropriate to its activities. Under the Small 
Business Act, a ``small business concern'' includes a small 
organization, which is defined as a non-profit enterprise that is 
independently owned and operated and is not dominant in its field. NECA 
is a non-profit, quasi-governmental association that was created to 
administer the Commission's interstate access tariff and revenue 
distribution processes. Therefore, NECA is not a small organization 
within the meaning of the RFA. Furthermore, this FNPRM does not apply 
to other ``small business concerns'' because it proposes to modify a 
rule that applies only to NECA. For this reason, we tentatively 
conclude that these proposals would not have a significant economic 
impact on a substantial number of small entities.
    We therefore certify, pursuant to section 605(b) of the RFA, that 
the proposed rule amendments would not have a significant economic 
impact on a substantial number of small entities. We seek comment on 
this tentative conclusion. The Commission shall publish this 
certification in the Federal Register, and shall provide a copy of this 
FNPRM, including this certification, to the Chief Counsel for Advocacy 
of the Small Business Administration.
C. Effective Date
    We find that the conclusions adopted herein should become effective 
immediately upon release of the Order.
D. Procedures for Filing Comments
    We invite comment on the proposed rule amendments, issues, and 
tentative conclusion set forth in the Further Notice of Proposed 
Rulemaking. Pursuant to applicable procedures set forth in 
Sec. Sec. 1.415 and 1.419 of the Commission's rules, interested parties 
may file FNPRM comments on or before September 11, 1997 and reply 
comments on or before September 26, 1997. To file formally in this 
proceeding, parties must file an original and six copies of all 
comments, reply comments, and supporting comments. Parties that want 
each Commissioner to receive a personal copy, must file an original 
plus eleven copies. Parties should send comments and reply comments to 
Office of the Secretary, Federal Communications Commission, 1919 M 
Street, N.W., Room 222, Washington, D.C. 20554. Five courtesy copies 
should also be sent to Sheryl Todd at 2100 M Street, N.W., Room 8611, 
Washington, D.C. 20554. Parties should also file one copy of any 
document filed in this docket with the Commission's copy contractor, 
International Transcription Services, Inc. (ITS), 2100 M Street, N.W., 
Suite 140, Washington, D.C. 20037. ITS's telephone number is 202-857-
3800. Comments and reply comments will be available for public 
inspection during regular business hours in the FCC Reference Center, 
Room 239, 1919 M Street, N.W., Washington, D.C. 20554. Comments and 
reply comments must

[[Page 47406]]

include a concise summary of the substantive arguments raised in the 
pleading.
    Parties are also asked to submit comments on diskette. Diskette 
submissions would be in addition to and not a substitute for the formal 
filing requirements addressed above. Parties submitting diskettes 
should submit them to Sheryl Todd at 2100 M Street, N.W., Room 8611, 
Washington, D.C. 20554. Such a submission should be on a 3.5 inch 
diskette in an IBM compatible format using WordPerfect 5.1 for Windows 
software in a ``read only'' mode. The diskette should be accompanied by 
a cover letter. For further information concerning this proceeding, 
contact Sheryl Todd, Accounting and Audits Division, Common Carrier 
Bureau at 202-418-7400.

III. Ordering Clauses

    It is further ordered, pursuant to sections 1-4, 254 of the 
Communications Act of 1934, as amended, 47 U.S.C. Sec. Sec. 151-154, 
and 254 that notice is hereby given of proposed amendments to parts 64 
and 54 of the Commission's Rules, 47 CFR parts 64 and 54, as described 
in the further notice of proposed rulemaking in CC Docket No. 97-21 and 
comments are requested as described above.

List of Subjects

47 CFR part 54

    Universal service.

47 CFR part 64

    Communications common carriers.

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

Rule Changes

    Parts 54 and 64 of title 47 of the Code of Federal Regulations are 
proposed to be amended as follows:

PART 54--UNIVERSAL SERVICE

    1. The authority citation for part 54 continues to read as follows:

    Authority: 47 U.S.C. Secs. 1, 4(i), 201, 214, and 254, unless 
otherwise noted.

    2. Section 54.711 is proposed to be amended by revising paragraph 
(b) to read as follows:
    Section 54.711 Contributor reporting requirements.
* * * * *
    (b) The Commission shall have access to all data reported to the 
Administrator, Schools and Libraries Corporation, and Rural Health Care 
Corporation. Contributors may make requests for Commission 
nondisclosure of company-specific information under Sec. 0.459 of this 
chapter at the time that the subject data are submitted to the 
Administrator. The Commission shall make all decisions regarding 
nondisclosure of company-specific information. The Administrator, 
Schools and Libraries Corporation, and Rural Health Care Corporation 
shall keep confidential all data obtained from contributors, including 
all data obtained from the Administrator of the Telecommunications 
Relay Service Fund, shall not use such data except for purposes of 
administering the universal service support programs, and shall not 
disclose such data in company-specific form unless directed to do so by 
the Commission.
* * * * *

PART 64--MISCELLANEOUS RULES RELATING TO COMMON CARRIERS

    1. The authority citation for part 64 continues to read as follows:

    Authority: 47 U.S.C. Sec. 154 unless otherwise noted.

    2. Section 64.604 is amended by revising paragraph (c)(4)(iii)(I) 
to read as follows:
    Section 64.604 Mandatory minimum standards.
* * * * *
    (c) * * *
    (4) * * *
    (iii) * * *
    (I) Information filed with the administrator. The administrator 
shall keep all data obtained from contributors and TRS providers 
confidential and shall not disclose such data in company-specific form 
unless directed to do so by the Commission. The administrator shall not 
use such data except for purposes of administering the TRS Fund, 
enabling the universal service Administrator to verify revenue 
information provided by contributors to the universal service support 
mechanisms, calculating the regulatory fees of interstate common 
carriers, and aggregating such fee payments for submission to the 
Commission. The Commission shall have access to all data reported to 
the administrator, and authority to audit TRS providers.
* * * * *
[FR Doc. 97-23828 Filed 9-8-97; 8:45 am]
BILLING CODE 6712-01-P