[Federal Register Volume 62, Number 174 (Tuesday, September 9, 1997)]
[Rules and Regulations]
[Pages 47369-47371]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 97-23829]


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FEDERAL COMMUNICATIONS COMMISSION

47 CFR Parts 54, 64, and 69

[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: Final rule.

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SUMMARY: The Order released August 15, 1997 directs NECA to assume the 
duties of USAC pertaining to the distribution, receipt, and processing 
of the Universal Service Worksheet until such time as USAC is prepared 
to begin its operations and assume these duties. The Order also 
authorizes NECA to perform certain ministerial functions on behalf of 
the Schools and Libraries and Rural Health Care Corporation to the 
extent that the performance of those functions is necessary to meet the 
January 1, 1998 starting date established by the Commission for 
implementing the universal service support mechanisms set forth in 47 
U.S.C. Sec. 254. Additionally, the Order authorizes NECA, in its 
capacity as the Administrator of the TRS Fund, to make available to 
USAC, to NECA, to the extent that it is acting on behalf of USAC, and 
to the entity selected to be the permanent universal service 
Administrator, certain TRS Fund information consisting of the names, 
addresses, contact persons, type of business, and other non-financial, 
identifying information relating to TRS Fund contributors. Finally, the 
Order instructs entities that currently are unable, without substantial 
difficulty, to distinguish their intrastate, interstate, or 
international revenues or are unable to provide specific, line-by-line 
revenue totals for certain categories of revenues, to provide good 
faith estimates of such revenues in the Universal Service Worksheet 
that must be completed by September 1, 1997.

DATES EFFECTIVE: August 15, 1997.

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 Order 
on Reconsideration and Second Report and Order 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 Recommended Decision on November 8, 1996 (61 FR 
63778 (December 2, 1996)), a Public Notice seeking comment on rules to 
implement Secs. 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)).

Summary of Report and Order

I. Universal Service Implementation Issues

A. Authorization for NECA to Perform Functions Relating to Distribution 
and Processing of the Universal Service Worksheet on Behalf of USAC
    We direct NECA to assume the duties assigned to USAC, as set forth 
in the NECA Order, relating to the distribution, receipt, and 
processing of the Universal Service Worksheet until USAC is prepared to 
assume these duties. In making this determination, we reconsider on our 
own motion our decision in the NECA Order immediately to assign these 
duties to USAC. In order to ensure timely distribution of the Universal 
Service Worksheet, we conclude that it is critical that we authorize 
NECA to begin distributing the Worksheet immediately to potential 
contributors so that entities

[[Page 47370]]

have sufficient time to complete and submit the Worksheet by the 
September 1, 1997 deadline.
    We also agree with NECA that USAC's ability to meet the January 1, 
1998 target implementation deadline may be jeopardized unless NECA 
begins work immediately on establishing the systems that are necessary 
to process the revenue information provided on the Universal Service 
Worksheet and on processing the Worksheet information that is received, 
until the USAC Board of Directors is in place and is prepared to assume 
these responsibilities. It is our expectation, however, that, as soon 
as possible following its establishment, the USAC Board of Directors 
will provide direction to NECA with respect to any developmental work 
already begun by NECA and, when it is prepared to do so, will assume 
responsibility for these functions.
B. Authorization for NECA to Perform Certain Functions on Behalf of 
Schools and Libraries Corporation and Rural Health Care Corporation
    We authorize NECA to perform certain ministerial functions on 
behalf of the Schools and Libraries and Rural Health Care Corporations 
to the extent that the performance of those functions is necessary to 
meet the January 1, 1998 deadline. For example, we anticipate that NECA 
will begin developmental work relating to the creation of websites for 
the posting of applications submitted on behalf of schools, libraries, 
and rural health care providers. We also anticipate that NECA will 
begin assigning identification numbers to eligible schools, libraries, 
and rural health care providers and taking steps to create a database 
containing this information. In making these determinations, we 
reconsider on our own motion our decision in the NECA Order immediately 
to assign these duties to the Schools and Libraries and Rural Health 
Care Corporations. It is our expectation, however, that, as soon as 
possible following their establishment, the Schools and Libraries and 
Rural Health Care Corporation Boards of Directors will provide 
direction to NECA with respect to any developmental work already begun 
by NECA and, when they are prepared to do so, will assume 
responsibility for these functions.
C. Mechanism for Recovery of Administrative Expenses Incurred by NECA
    We also establish a mechanism by which NECA will receive 
reimbursement for administrative expenses associated with its 
performance of the incorporation and other start-up functions that have 
been assigned to it. We conclude that NECA should be entitled to 
recover from the new universal service support mechanisms in 1998 all 
reasonable administrative costs, including interest on funds advanced 
for start-up activities, that NECA incurs in 1997 in performing the 
duties assigned to it pursuant to this Order and the NECA Order. We 
direct NECA to keep a separate accounting of all implementation 
expenses that it incurs in performing the incorporation and other 
start-up functions that we have directed it to perform on behalf of 
USAC and the Schools and Libraries and Rural Health Care Corporations.
D. Use of TRS Fund Carrier Identification Information Data by the 
Universal Service Administrator
    We also authorize NECA, in its capacity as the Administrator of the 
TRS Fund, to make available to USAC, to NECA to the extent that it is 
acting on behalf of USAC, and to the entity selected to be the 
permanent universal service Administrator, certain TRS Fund information 
consisting of the names, addresses, contact persons, type of business, 
and other non-financial, identifying information relating to TRS Fund 
contributors. Such information shall be used by these entities solely 
for the purpose of identifying contributors to the universal service 
support mechanisms and for the related purpose of identifying entities 
engaged in certain types of business.
    As a separate matter, we propose to amend Sec. 64.604(c)(4)(iii)(I) 
of the Commission's rules specifically to permit the use of TRS Fund 
revenue data by USAC or NECA, to the extent that it is acting on behalf 
of USAC, and the permanent universal service Administrator, for 
purposes of verifying revenue information reported on the Universal 
Service Worksheet. We seek comment on this proposal in a Further Notice 
of Proposed Rulemaking, as described below.
E. Other Implementation Issues
    In the Universal Service and NECA Orders, the Commission adopted 
detailed rules governing the implementation and operation of the new 
universal service support mechanisms. As in the case of any new 
program, implementation of the support mechanisms will require the 
administering corporations to exercise judgment and discretion in 
interpreting the governing rules. USAC, the Schools and Libraries 
Corporation, or the Rural Health Care Corporation may encounter complex 
issues that require expeditious resolution in order to avoid undue 
prejudice to individual applicants for support or in order to prevent 
delayed implementation of the universal service program generally, but 
with respect to which our rules do not provide specific guidance. We 
anticipate that USAC and the Corporations will exercise sound judgment 
and discretion in such circumstances, in a manner that is consistent 
with the Commission's overall policies and rules governing the 
universal service programs. Of course, acknowledging the need for such 
discretion in no way diminishes our commitment to the impartial 
allocation of funds to individual applicants by entities administering 
the universal service support mechanisms.

II. Reporting End-User Telecommunications Revenue Data and Other 
Revenue Data on the Universal Service Worksheet

    We recognize that some contributors to the universal service 
support mechanisms may not be able, without substantial difficulty, to 
derive from their existing books of account the revenue information 
required by the Worksheet. Furthermore, we recognize that some non-
common carrier contributors to the universal service support mechanisms 
will face similar difficulties identifying their revenues by the 
specific line-by-line categories listed on the Worksheet. In light of 
the Worksheet's September 1, 1997 due date, however, we must provide 
immediate guidance to these contributors. Therefore, on an interim 
basis, until such time as the Commission takes action on the pending 
petitions for reconsideration, contributors that cannot derive 
interstate revenues from their books of account or cannot derive the 
line-by-line revenue breakdowns from their books of account may provide 
on the Worksheet good faith estimates of these figures. Contributors 
may derive their estimates using a method that they, in good faith, 
believe will yield a reasonably accurate result. Contributors must 
document how they calculated their estimates and make such information 
available to the Commission or Administrator upon request.
    We conclude for good cause that compliance with the notice and 
public comment provisions of the APA is impracticable and is not 
required at this time with respect to our interim decision to permit 
contributors to make good faith estimates of their end-user 
telecommunications and other revenues as described above for purposes 
of

[[Page 47371]]

completing the Universal Service Worksheet. In order to facilitate the 
timely filing of Universal Service Worksheets and implementation of the 
universal service support mechanisms, and because the action we take 
represents an interim solution to a problem that will be addressed more 
comprehensively in a forthcoming order on reconsideration of the 
Universal Service Order, in CC Docket No. 96-45, we find that 
compliance with the notice and comment provisions of the APA is 
impracticable at this time.

III. Procedural Matters

Effective Date
    We find that the conclusions adopted herein should become effective 
immediately upon release of the Order.

IV. Ordering Clauses

    Accordingly, it is ordered, pursuant to sections 1-4, 254 of the 
Communications Act of 1934, as amended, 47 U.S.C. Secs. 151-154, and 
254 that the Order on Reconsideration of the Report and Order and 
Second Order on Reconsideration in CC Docket Nos. 97-21 and 96-45, FCC 
97-253, is adopted.
    It is further ordered, pursuant to sections 1-4, 254 of the 
Communications Act of 1934, as amended, 47 U.S.C. Secs. 151-154, and 
254 that the Second Report and Order in CC Docket No. 96-45 is adopted.
    It is further ordered that the conclusions adopted in this order 
shall become effective immediately upon release of this Order.

List of Subjects

47 CFR Part 54

    Universal Service.

47 CFR Part 64

    Communications common carriers.

47 CFR Part 69

    Communications common carriers.

Federal Communications Commission.
William F. Caton,
Acting Secretary.
[FR Doc. 97-23829 Filed 9-8-97; 8:45 am]
BILLING CODE 6712-01-P