[Federal Register Volume 65, Number 165 (Thursday, August 24, 2000)]
[Proposed Rules]
[Pages 51572-51575]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 00-21578]


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FEDERAL COMMUNICATIONS COMMISSION

47 CFR Part 69

[CC Docket No. 99-316; FCC 99-307]


Shortening Notice Period for Changes in Participation in NECA's 
Access Tariffs

AGENCY: Federal Communications Commission.

ACTION: Notice of proposed rulemaking.

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SUMMARY: This document seeks comment on the National Exchange Carrier 
Association, Inc.'s (NECA's) proposal to extend the deadline by which 
carriers must notify NECA of changes in their participation in NECA's 
access tariffs. Specifically, the carrier election deadline would be 
changed from December 31 of the previous year to March 1 of the tariff 
year. NECA asserts that, because of streamlined tariff notification 
periods and electronic data collection methods, it no longer requires 
six months advance notice of tariff participation changes. Moving the 
notice deadline from December to 31 of the previous year to March 1 of 
the tariff year will provide carriers more time in which to make their 
tariff participation decisions.

DATES: Comments are due on or before September 8, 2000, and reply 
comments are due on or before September 18, 2000.

ADDRESSES: Federal Communications Commission, 445 12th Street, SW., 
Washington, DC 20554.

FOR FURTHER INFORMATION CONTACT: Jennifer McKee, (202) 418-1520.

SUPPLEMENTARY INFORMATION: Under 47 CFR 69.3, NECA is responsible for 
filing an access service tariff as agent for all telephone companies 
that participate in the association tariff. The association tariff is 
to be filed with a scheduled effective date of July 1. To provide NECA 
with sufficient notice, carriers are currently required to notify NECA 
of any change in their association tariff participation by December 31 
of the year preceding the filing of the tariff.
    In 1997 the Commission streamlined its tariff filing rules, 
allowing carriers to file their annual access tariffs on 15 days 
notice, rather than on 90 days notice. 63 FR 13132, March 18, 1998. The 
streamlined notice requirement applies to NECA's association access 
service tariff, allowing NECA to file the tariff on June 16, rather 
than on April 2, for an effective date of July 1. In addition to the 
streamlined notice period, NECA now employs electronic data collection 
and processing routines that were not in use when 47 CFR 69.3 was 
adopted. These more efficient data collection techniques significantly 
reduce the time required to assemble and analyze data for NECA's tariff 
filing. According to NECA, the tariff streamlining rules and 
improvements in data collection management eliminate the need for 
carriers to provide six months advance notice to NECA of planned tariff 
participation changes. Therefore, NECA filed a petition for rulemaking 
seeking to change the carrier notification date from December 31 of the 
previous year to March 1 of the tariff year.
    We agree with NECA that changes in tariff notification periods and

[[Page 51573]]

advancements in data collection and processing methods may warrant a 
shorter timeframe for carriers to provide notice of tariff 
participation changes. In addition, as NECA noted in its petition, 
shorter notice periods will not disadvantage NECA and may help smaller 
companies make better-informed decisions regarding tariff 
participation. For instance, because the deadline by which NECA must 
file proposed revisions to its average schedule formulas is December 
31, companies that rely on these formulas to compute interstate access 
compensation will have more time to analyze the proposed revisions 
before deciding whether to participate in NECA's access tariff.
    Therefore, we propose to amend 47 CFR part 69 to allow carriers 
until March 1 of each tariff year to notify NECA of any changes in 
tariff participation. We seek comment on this proposed change.
    In the alternative, NECA suggested that the Commission eliminate 
its requirement that companies notify NECA of changes in their tariff 
participation. According to NECA, elimination of this requirement will 
ease the Commission's administrative burden of reviewing applications 
for special permission filed by carriers that seek waiver of the tariff 
election deadline. NECA also noted that the Commission's objective of 
providing NECA ample time to develop annual access rates may be better 
served by allowing the association to develop internal procedures, 
which could be adjusted to meet special circumstances. We also seek 
comment on this proposal.

Ex Parte Presentations

    This proceeding shall be treated as a ``permit-but-disclose'' 
proceeding in accordance with 47 CFR 1.1206(b). Ex parte presentations 
are permissible if disclosed in accordance with Commission rules, 
except during the Sunshine Agenda period when presentations, ex parte 
or otherwise, are generally prohibited. Persons making oral ex parte 
presentations are reminded that memoranda summarizing the presentations 
must contain summaries of the substance of the presentations and not 
merely a listing of the subjects discussed. More than a one or two 
sentence description of the views and arguments presented generally is 
required. See 47 CFR 1.1206(b)(2). Additional rules pertaining to oral 
and written presentations are set forth in Sec. 1.1206(b).

Initial Paperwork Reduction Act Analysis

    This Notice of Proposed Rulemaking (``NPRM'') contains a proposed 
information collection. As part of its continuing effort to reduce 
paperwork burdens, we invite the general public and the Office of 
Management and Budget (``OMB'') to take this opportunity to comment on 
the information collections contained in this NPRM, as required by the 
Paperwork Reduction Act of 1995, 44 U.S.C. 3501 et seq. Public and 
agency comments must be filed by the same filing deadlines as comments 
on this NPRM; OMB comments are due 60 days from the date of publication 
of this NPRM in the Federal Register. Comments should address: (a) 
whether the proposed collection of information is necessary for the 
proper performance of the Commission, including whether the information 
shall have practical utility; (b) the accuracy of the Commission's 
burden estimates; (c) ways to enhance the quality, utility, and clarity 
of the information collected; and (d) ways to minimize the burden of 
the collection of information on the respondents, including the use of 
automated collection techniques or other forms of information 
technology.

Initial Regulatory Flexibility Act Analysis

    As required by the Regulatory Flexibility Act (``RFA''), 5 U.S.C. 
603, the Commission has prepared this Initial Regulatory Flexibility 
Analysis (``IRFA'') of the possible significant economic impact on 
small entities by the policies and rules proposed in this NPRM. The 
RFA, 5 U.S.C. 601 et seq., has been amended by the Contract With 
America Advancement Act of 1996, Public Law 104-121, 110 Stat. 847 
(1996) (``CWAAA''). Title II of the CWAAA is the Small Business 
Regulatory Enforcement Fairness Act of 1996 (``SBREFA''). Written 
public comments are requested on this IRFA. Comments must be identified 
as responses to the IRFA and must be filed by the deadlines for 
comments on the NPRM. The Commission will send a copy of the NPRM, 
including this IRFA, to the Chief Counsel for Advocacy of the Small 
Business Administration in accordance with the RFA. In addition, the 
NPRM and IRFA (or summaries thereof) will be published in the Federal 
Register. 5 U.S.C. 603(a).

Need for and Objectives of the Proposed Rules

    NECA has asserted that changes in tariff notification periods and 
advancements in data collection and processing methods have facilitated 
NECA's ability to prepare association tariffs. Therefore, NECA can 
receive notifications from carriers changing the status of their 
association tariff participation closer to the tariff filing deadline. 
At NECA's request, the Commission is proposing to amend its rules to 
extend the deadline by which carriers must notify NECA of changes in 
association tariff participation. Specifically, the notification 
deadline would be changed from December 31 of the preceding year to 
March 1 of the tariff year. This extension of the notification deadline 
will provide carriers additional time to determine their tariff 
participation status, thus allowing them to make more informed tariff 
participation decisions.

Legal Basis

    The proposed action is authorized under sections 1, 4(i), 4(j), 
201-205, and 303 of the Communications Act of 1934, as amended. 47 
U.S.C. 151, 154(i), 154(j), 201-205, and 303.

Description and Estimate of the Number of Small Entities to Which the 
Proposed Rules Will Apply

    The RFA requires that an initial regulatory flexibility analysis be 
prepared for notice and comment rulemaking proceedings, unless the 
agency certifies that ``the rule will not, if promulgated, have a 
significant economic impact on a substantial number of small 
entities.'' 5 U.S.C. 605(b). The RFA generally defines ``small entity'' 
as having the same meaning as the terms ``small business,'' ``small 
organization,'' and ``small governmental jurisdiction.'' 5 U.S.C. 
601(6). In addition, the term ``small business'' has the same meaning 
as the term ``small business concern'' under the Small Business Act. 5 
U.S.C. 601(3) (incorporating by reference the definition of ``small 
business concern'' in 15 U.S.C. 632). Pursuant to the RFA, the 
statutory definition of a small business applies ``unless an agency, 
after consultation with the Office of Advocacy of the Small Business 
Administration and after opportunity for public comment, establishes 
one or more definitions of such term which are appropriate to the 
activities of the agency and publishes such definition(s) in the 
Federal Register.'' 5 U.S.C. 601(3). A small business concern is one 
which: (1) is independently owned and operated; (2) is not dominant in 
its field of operation; and (3) satisfies any additional criteria 
established by the Small Business Administration (``SBA''). 15 U.S.C. 
632.

[[Page 51574]]

    In this IRFA, we consider the potential impact of the NPRM on all 
local exchange carriers (``LECs'') that could consider participating in 
NECA's association tariffs. Neither the Commission nor the SBA has 
developed a definition for small LECs. The closest applicable 
definition under the SBA rules is for Standard Industrial 
Classification (``SIC'') category 4813, telephone communications 
companies other than radiotelephone (wireless) companies. 13 CFR 
121.201. For this category, the SBA has defined a small business to be 
a small entity having no more than 1,500 employees. 13 CFR 121.201.
    We have included small incumbent LECs in this RFA analysis. As 
noted above, a ``small business'' under the RFA is one that, inter 
alia, meets the pertinent small business size standard (e.g., a 
telephone communications business having 1,500 or fewer employees), and 
``is not dominant in its field of operation.'' 5 U.S.C. 601(3). The 
SBA's Office of Advocacy contends that, for RFA purposes, small 
incumbent LECs are not dominant in their field of operation because any 
such dominance is not ``national'' in scope. Letter from Jere W. 
Glover, Chief Counsel for Advocacy, SBA, to William E. Kennard, 
Chairman, FCC (May 27, 1999). SBA regulations interpret ``small 
business concern'' to include the concept of dominance on a national 
basis. 13 CFR 121.102(b). Since 1996, out of an abundance of caution, 
the Commission has included small incumbent LECs in its regulatory 
flexibility analyses. See, e.g., Implementation of the Local 
Competition Provisions of the Telecommunications Act of 1996, 61 FR 
45476, August 29, 1996. Although we have included small incumbent LECs 
in this RFA analysis, we emphasize that this RFA action has no effect 
on the Commission's analyses and determinations in other, non-RFA 
contexts.
    The most reliable source of information regarding the total numbers 
of certain common carrier and related providers nationwide, as well as 
the numbers of commercial wireless entities, appears to be data the 
Commission publishes annually in its Carrier Locator: Interstate 
Service Providers Report (``Locator''). This report was compiled using 
information from Telecommunications Relay Service (``TRS'') fund 
worksheets filed by carriers, including, inter alia, LECs, competitive 
local exchange carriers, interexchange carriers, competitive access 
providers, satellite service providers, wireless telephony providers, 
operator service providers, pay telephone operators, providers of 
telephone toll service, providers of telephone exchange service, and 
resellers.
    There are two principal providers of local telephone service; 
incumbent LECs and competing local service providers. However, under 47 
CFR part 69, participation in NECA's access service tariffs is limited 
to incumbent LECs, therefore the proposed rule changes will not affect 
competing local service providers. 47 CFR 69.2(hh). According to the 
most recent Locator data, 1,410 filers identified themselves as 
incumbent LECs. Data set forth in the FCC Preliminary Statistics of 
Communications Common Carriers (``SOCC'') lists 32 incumbent LECs that 
have more than 1,500 employees. We do not have data specifying the 
number of these carriers that are either dominant in their field of 
operations or are not independently owned and operated, and thus are 
unable at this time to estimate with greater precision the number of 
incumbent LECs that would qualify as small business concerns under the 
SBA's definition. Consequently, we estimate that fewer than 1,378 
incumbent LECs are small entities that may be affected by the proposed 
rules, if adopted.

Description of Projected Reporting, Recordkeeping and Other Compliance 
Requirements

    An Initial Paperwork Reduction Act analysis is contained in the 
NPRM. This NPRM seeks comment on a proposed extension of the date by 
which carriers must notify NECA of changes in participation in 
association tariffs. Under the current rules this notification must be 
provided six months prior to the effective date of the tariff, by 
December 31 of the preceding year. The Commission proposes to allow 
carriers until March 1 of the tariff year to provide the required 
notification to NECA. The NPRM also seeks comment on an alternative 
proposal to eliminate the Commission notification rule and allow NECA 
to adopt internal procedures governing tariff participation 
notification.

Steps Taken to Minimize Significant Economic Impact on Small Entities, 
and Significant Alternatives Considered

    The rule amendments we propose in the NPRM are designed to assist 
all carriers in making their association tariff participation 
elections. The proposed extension of the notification date from 
December 31 to March 1 may particularly benefit smaller carriers that 
rely on average schedule formulas to compute interstate access 
compensation, because NECA is required to file proposed revisions to 
these schedules by December 31. The extension of the tariff election 
deadline will provide carriers more time to analyze NECA's proposed 
revisions before making tariff participation decisions. We seek comment 
on our tentative conclusions and proposals, and on additional actions 
we might take in this regard.

Federal Rules that May Duplicate, Overlap, or Conflict With the 
Proposed Rules

    There are no federal rules that may duplicate, overlap, or conflict 
with the proposed rules.

Filing of Comments and Reply Comments

    Pursuant to 47 CFR 1.415, 1.419, interested parties may file 
comments on or before September 8, 2000, and reply comments on or 
before September 18, 2000. Comments may be filed using the Commission's 
Electronic Comment Filing System (``ECFS'') or by filing paper copies.
    Comments filed through the ECFS can be sent as an electronic file 
via the Internet to http://www.fcc.gov/e-file/ecfs.html>. In completing 
the transmittal screen, commenters should include their full name, 
Postal Service mailing address, and the applicable docket or rulemaking 
number. Parties may also submit an electronic comment by Internet e-
mail. To get filing instructions for e-mail comments, commenters should 
send an e-mail to [email protected], and should include the following words 
in the body of the message, ``get form your e-mail address>.'' A sample 
form and directions will be sent in reply. Only one copy of 
electronically-filed comments must be submitted.
    Parties who choose to file by paper must file an original and four 
copies of each filing. All filings must be sent to the Commission's 
Secretary, Magalie Roman Salas, Office of the Secretary, Federal 
Communications Commission, 445 12th Street, S.W., Room TW-B204, 
Washington, D.C. 20554.
    Parties who choose to file by paper should also submit their 
comments on diskette. The diskette should be submitted to: Wanda 
Harris, Federal Communications Commission, Common Carrier Bureau, 
Competitive Pricing Division, 445 12th Street, S.W., Fifth Floor, 
Washington, D.C. 20554. The submission should be on a 3.5 inch diskette 
formatted in an IBM compatible format using WordPerfect 5.1 for Windows 
or compatible software. The diskette should be accompanied by a

[[Page 51575]]

cover letter and should be submitted in ``read only'' mode. The 
diskette should be clearly labeled with the commenter's name, 
proceeding (including the docket number in this case), type of pleading 
(comments or reply comments), date of submission, and the name of the 
electronic file on the diskette. The label should also include the 
following phrase: ``Disk Copy--Not an Original.'' Each diskette should 
contain only one party's pleadings, preferably in a single electronic 
file. In addition, commenters must send diskette copies to the 
Commission's copy contractor, International Transcription Service, 
Inc., 1231 20th Street, N.W., Washington, D.C. 20036. Comments and 
reply comments will be available for public inspection during regular 
business hours in the FCC Reference Center, 445 12th Street, S.W., Room 
CY-A257, Washington, D.C. 20554.

Ordering Clauses

    Pursuant to the authority contained in sections 1, 4(i), 4(j), 201-
205, and 303 of the Communications Act of 1934, as amended, 47 U.S.C. 
151, 154(i), 154(j), 201-205, and 303, Notice Is Hereby Given of the 
rulemaking described and that Comment Is Sought on those issues.
    The Commission's Office of Public Affairs, Reference Operations 
Division, Shall Send a copy of this Notice of Proposed Rulemaking, 
including the Initial Regulatory Flexibility Analysis, to the Chief 
Counsel for Advocacy of the Small Business Administration, in 
accordance with the Regulatory Flexibility Act, 5 U.S.C. 605(b).

List of Subjects in 47 CFR Part 69

    Communications common carriers, Tariffs.

    Federal Communications Commission.
William F. Caton,
Deputy Secretary.
[FR Doc. 00-21578 Filed 8-23-00; 8:45 am]
BILLING CODE 6712-01-P