[Federal Register Volume 64, Number 192 (Tuesday, October 5, 1999)]
[Rules and Regulations]
[Pages 53886-53887]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 99-25720]


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DEPARTMENT OF AGRICULTURE

Rural Utilities Service

7 CFR Part 1755


RUS Form 545, Central Office Equipment Contract (Not Including 
Installation)

AGENCY: Rural Utilities Service, USDA.

ACTION: Final rule.

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SUMMARY: The Rural Utilities Service (RUS) is amending its regulations 
on Telecommunications Standards and Specifications for Materials, 
Equipment, and Construction to revise RUS Form 545 Central Office 
Equipment Contract (Not Including Installation). RUS is revising this 
contract form in order to incorporate contractual and technological 
changes.

EFFECTIVE DATE: November 4, 1999.

FOR FURTHER INFORMATION CONTACT: John J. Schell, Chief, Inside Plant 
Branch, Telecommunications Standards Division, Rural Utilities Service, 
Stop 1598, U.S. Department of Agriculture, 1400 Independence Ave., SW, 
Washington DC, 20250-1598, telephone number (202) 720-0671.

SUPPLEMENTARY INFORMATION:

Executive Order 12866

    This final rule has been determined to be not significant for 
purposes of Executive Order 12866 and therefore has not been reviewed 
by the Office of Management and Budget (OMB).

Executive Order 12372

    This final rule is excluded from the scope of Executive Order 
12372, Intergovernmental Consultation, which may require a consultation 
with State and local officials. A final rule related Notice entitled, 
``Department Programs and Activities Excluded from Executive Order 
12372'' (50 FR 47034) exempts RUS and Rural Telephone Bank loans and 
loan guarantees from coverage under this Order.

Executive Order 12988

    This final rule has been reviewed under Executive Order 12988, 
Civil Justice Reform. RUS has determined that this rule meets the 
applicable standards provided in section 3 of the Executive Order. In 
addition, all state and local laws and regulations that are in conflict 
with this rule will be preempted, no retroactive effort will be given 
to this rule, and, in accordance with Sec. 212(c) of the Department of 
Agriculture Reorganization Act of 1994 (7 U.S.C. Sec. 6912(c)), appeal 
procedures must be exhausted before an action against the Department or 
its agencies may be initiated.

Regulatory Flexibility Act Certification

    RUS has determined that this proposed rule will not have a 
significant economic impact on a substantial number of small entities, 
as defined in the Regulatory Flexibility Act (5 U.S.C. 601 et seq.). 
The RUS telecommunications program provides loans to borrowers at 
interest rates and terms that are more favorable than those generally 
available from the private sector. RUS borrowers, as a result of 
obtaining federal financing, receive economic benefits that exceed any 
direct economic costs associated with complying with RUS regulations 
and requirements.

Information Collection and Recordkeeping Requirements

    This rule contains no new reporting or recordkeeping burdens under 
OMB control number 0572-0059 that would require approval under the 
Paperwork Reduction Act of 1995 (44 U.S.C. Chapter 35).

National Environmental Policy Act Certification

    The Administrator of RUS has determined that this proposed rule 
will not significantly affect the quality of the human environment as 
defined by the National Environmental Policy Act of 1969 (42 U.S.C. 
4321 et seq.). Therefore, this action does not require an environmental 
impact statement or assessment.

Catalog of Federal Domestic Assistance

    The program described by this proposed rule is listed in the 
Catalog of Federal Domestic Assistance Programs under number 10.851, 
Rural Telephone Loans and Loan Guarantees; and number 10.852, Rural 
Telephone Bank Loans. This catalog is available on a subscription basis 
from the Superintendent of Documents, the United States Government 
Printing Office, Washington, DC 20402-9325.

Unfunded Mandates

    This rule contains no Federal mandates (under the regulatory 
provisions of Title II of the Unfunded Mandates Reform Act of 1995) for 
State, local, and tribal governments for the private sector. Thus, this 
rule is not subject to the requirements of section 202 and 205 of the 
Unfunded Mandates Reform Act of 1995.

Background

    The last revision to the RUS Form 545 was September 1966. Since 
that date, divestiture and competition legislation and regulation have 
brought about many changes in the conduct of telecommunications 
business. Notable advances of central office equipment technology such 
as Signaling System No. 7 (SS7), Advanced Intelligent Network (AIN), 
and Integrated Services Digital Network, have made many new services 
available. In order to address the above, significant changes have been 
made in the way business is conducted in the telecommunications 
industry.
    RUS Form 545 incorporates those changes into the Central Office 
Equipment Contract. The main changes to the contract are new 
requirements that: (1) Provide for a software license, (2) provide for 
patent, copyright, and trademark infringement protection, (3) provide a 
cap on consequential damages, and (4) provide Equal Employment 
Opportunity requirements. In addition, it revises and updates 
provisions for (1) delivery of equipment, (2) inspection and testing of 
the completed installations, (3) payments to

[[Page 53887]]

the contractor, (4) insurance, (5) liquidated damages, and (6) 
completion of the project. The above actions will make it possible for 
RUS telecommunications borrowers to continue to provide their 
subscribers with the most modern and efficient telecommunications 
service, implemented in a predictable and orderly fashion.
    A proposed rule was issued in the Federal Register, on December 11, 
1998, at 63 FR 68406, requesting comments on these changes and proposed 
to codify revised RUS Form 545 in full text. The comment period closed 
February 9, 1999, and no comments were received.
    Following the issuance of this proposed rule, a direct final rule 
was published in the Federal Register on February 10, 1999, at 64 FR 
6501, establishing new policy on the manner in which RUS publishes the 
standard forms of contracts that borrowers are required to use when 
contracting for construction, procurement, engineering services, or 
architectural services financed through loans made or guaranteed by 
RUS. This form falls under this new policy. The full text will not be 
codified in this rule. Borrowers can determine the appropriate standard 
forms based on the issuance date of the form as identified by the most 
recent published list set forth in Sec. 1755.30(c). A copy of RUS Form 
545 can be obtained from the Rural Utilities Service, U.S. Department 
of Agriculture, Program Development and Regulatory Analysis, Stop 1522, 
Washington, DC, 20250-1522.
    RUS has issued a series of 7 CFR chapter XVII parts, which serve to 
implement the policies, procedures, and requirements for administering 
its loan and loan guarantee programs and the loan documents and 
security instruments that provide for and secure RUS financing. The 
revision to 7 CFR part 1755 revises the issuance date of RUS Form 545, 
Central Office Equipment Contract (Not Including Installation). RUS 
telecommunications borrowers are required to use the RUS Form 545 
contract where major central office facilities are being procured but 
not installed under this contract. The present RUS Form 545 has become 
outdated due to technological advancements and other reasons. Advanced 
technology and equipment concepts have introduced new issues. Contract 
terms and obligations have been modified and updated to more accurately 
reflect present business practices.

List of Subjects in 7 CFR Part 1755

    Loan programs--communications, Reporting and recordkeeping 
requirements, Rural areas, Telephone.

    For the reasons set out in the preamble, Chapter XVII of Title 7 of 
the Code of Federal Regulations is amended as follows:

PART 1755--TELECOMMUNICATIONS STANDARDS AND SPECIFICATIONS FOR 
MATERIALS, EQUIPMENT, AND CONSTRUCTION

    1. The authority citation for part 1755 continues to read as 
follows:

    Authority: 7 U.S.C. 901 et seq., 1921 et seq., 7941 et seq.

    2. Section 1755.30(c)(41) is revised to read as follows:


Sec. 1755. 30  List of telecommunications standard contract forms.

* * * * *
    (c) * * *
    (41) RUS Form 545, issued November 4, 1999, Central Office 
Equipment Contract (Not Including Installation).
* * * * *

    Dated: September 27, 1999.
Jill Long Thompson,
Under Secretary, Rural Development.
[FR Doc. 99-25720 Filed 10-4-99; 8:45 am]
BILLING CODE 3410-15-P