[Federal Register Volume 67, Number 68 (Tuesday, April 9, 2002)]
[Proposed Rules]
[Pages 17036-17038]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 02-8344]


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FEDERAL COMMUNICATIONS COMMISSION

47 CFR Parts 1, 61, and 69

[CC Docket No. 96-128; FCC 02-39]


Implementation of Pay Telephone Reclassification and Compensation 
Provisions of the Telecommunications Act of 1996

AGENCY: Federal Communications Commission.

ACTION: Notice of proposed rulemaking.

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SUMMARY: The Federal Communications Commission (Commission) seeks 
comment in the Implementation of the Pay Telephone Reclassification and 
Compensation Provisions of the Telecommunications Act of 1996 
rulemaking docket to explore whether the current regulatory regime 
applicable to the provision of inmate calling services is responsive to 
the needs of correctional facilities, inmate calling service (ICS) 
providers, and inmates, and if not, whether and how the Commission 
might address those unmet needs.

DATES: Comments are due on or before May 24, 2002, and reply comments 
are due on or before June 24, 2002.

ADDRESSES: Federal Communications Commission, William F. Caton, Office 
of the Secretary, 445--12th Street SW, TW-A325, Washington, DC 20554. 
See SUPPLEMENTARY INFORMATION for information on additional 
instructions for filing paper copies.

FOR FURTHER INFORMATION CONTACT: Joi Roberson Nolen, Wireline 
Competition Bureau, 202-418-1537.

SUPPLEMENTARY INFORMATION: The Commission released the Order on 
Reconsideration in CC Docket No. 96-128. See Implementation of the Pay 
Telephone Reclassification and Compensation Provisions of the 
Telecommunications Act of 1996, CC Docket No. 96-128, Order on 
Reconsideration, 11 FCC Rcd 21233 (1996), 61 FR 65341 (Dec. 12, 1996) 
(Order on Reconsideration) aff'd in part and remanded in part, Illinois 
Pub. Tel. Ass'n v. FCC, 117 F.3d 555 (D.C. Cir. 1997), cert. denied sub 
nom., Virginia State Corp. Comm'n v. FCC, 523 U.S. 1046 (1998). 
Subsequently, the Commission issued this Notice of Proposed Rulemaking 
(NPRM) to seek comment on issues related to the provision of inmate 
payphone service. Section 276 of the Communications Act directs the 
Commission to ``establish a per call compensation plan to ensure that 
all payphone service providers are fairly compensated for each and 
every completed intrastate and interstate call using their payphone. 
See 47 U.S.C. 276(b)(1)(A). The statute specifically includes the 
provision of inmate telephone service in correctional institutions 
within the definition of payphone service. See 47 U.S.C. 276(d). The 
Commission seeks comment generally on costs associated with the 
provision of inmate calling service (ICS). Specifically, the Commission 
seeks comment on the commissions demanded by correctional institutions, 
whether and how any states have addressed the relationship between 
these commissions and inmate calling rates, and on any factors unique 
to the provision of inmate calling services that affect the 
profitability of ICS operations. The Commission seeks cost and revenue 
data related to local collect calls made from confinement facilities, 
separate from data related to other services offered by payphone 
providers. The Commission seeks comment from states on the use of rate 
ceilings. The Commission seeks comment on alternatives to collect 
calling in the

[[Page 17037]]

inmate environment that might result in lower rates for inmate calls 
while continuing to satisfy security concerns. The Commission seeks 
comment on inmate calling service practices that may serve legitimate 
security needs but have the unintended, and perhaps unnecessary, effect 
of increasing the costs incurred by inmates and their families. 
Finally, the Commission seeks comment on any additional ways to reduce 
costs for inmate service providers (and, consequently, the costs of 
inmate calling).

A. Regulatory Flexibility Analysis and Paperwork Reduction Analysis

    As required by the Regulatory Flexibility Act of 1980, as amended 
(RFA), the Commission has prepared the present Initial Regulatory 
Flexibility Analysis (IRFA) of the possible significant economic impact 
on a substantial number of small entities by the policies and rules 
proposed in this NPRM. 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.

1. Need for, and Objectives of, the Proposed Rules

    In this proceeding, the Commission seeks comment on the appropriate 
regulatory environment for Inmate Calling Service (ICS) providers. In 
choosing the appropriate regulatory environment we ask interested 
parties to address how the Commission can best achieve the goals set 
forth by Congress in section 276 of the Act.

2. Legal Basis

    The legal basis for any action that may be taken pursuant to the 
NPRM is contained in sections 4, 10, 201-202, 214, 276, 303, and 403 of 
the Communications Act of 1934, as amended, 47 U.S.C. 154, 160, 201-
204, 214, 276, 303, and 403, section 706 of the Telecommunications Act 
of 1996, and sections 1.1, 1.48, 1.411, 1.412, 1.415, 1.419, and 
1.1200-1.1216, of the Commission's rules, 47 CFR 1.1, 1.48, 1.411, 
1.412, 1.415, 1.419, and 1.1200-1.1216.

3. Description and Estimate of the Number of Small Entities to Which 
the Proposed Rules will Apply

    The RFA directs agencies to provide a description of and, where 
feasible, an estimate of the number of small entities that will be 
affected by the proposed rules. The RFA generally defines the term 
``small entity'' as having the same meaning as the terms ``small 
business,'' ``small organization,'' and ``small governmental 
jurisdiction.'' In addition, the term ``small business'' has the same 
meaning as the term ``small business concern'' under the Small Business 
Act. 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). We have included small incumbent LECs in this 
present 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.'' 
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. We have therefore included 
small incumbent LECs in this RFA analysis, although we emphasize that 
this RFA action has no effect on FCC analyses and determinations in 
other, non-RFA contexts.

4. Local Exchange Carriers

    Neither the Commission nor the SBA has developed a definition 
specifically for small local exchange carriers. The closest applicable 
definitions for this type of carrier under SBA rules is for wired 
telecommunications carriers. The most reliable source of information 
regarding the number of LECs nationwide appears to be the data that we 
collect annually in connection with the Telecommunications Relay 
Service (TRS). According to our most recent data, there are 1,335 
incumbent LECs. We estimate that 1,037 of those carriers are small, 
pursuant to the SBA's size standard.

5. Description of Projected Reporting, Recordkeeping and Other 
Compliance Requirements

    Any proposal we may adopt pursuant this NPRM may decrease existing 
reporting, recordkeeping or other compliance requirements. As noted 
above, carriers are currently subject to a broad range of regulatory 
requirements that are generally intended to protect consumers from 
unjust and unreasonable rates, terms, and conditions and unreasonable 
discrimination in the provision of communications services. The 
Commission's dominant carrier regulation includes rate regulation and 
tariff filing requirements, and also requires supporting information, 
which in some cases includes detailed cost data, to be filed by 
dominant carriers with their tariff filings. Incumbent LECs are subject 
to rate level regulation in the provision of their interstate access 
services. The BOCs and GTE are subject to mandatory price cap 
regulation, and several other incumbent LECs have entered price caps on 
an elective basis, while smaller incumbent LECs are regulated under 
rate-of-return regulation. In addition, in markets where carriers may 
have the incentive and ability to leverage control over bottleneck 
facilities to disadvantage competitors in related markets, the 
Commission has developed various safeguards to neutralize that ability.

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

    The RFA requires an agency to describe any significant, 
specifically small business, alternatives that it has considered in 
reaching its proposed approach, which may include the following four 
alternatives (among others): (1) The establishment of differing 
compliance or reporting requirements or timetables that take into 
account the resources available to small entities; (2) the 
clarification, consolidation, or simplification of compliance or 
reporting requirements under the rule for small entities; (3) the use 
of performance, rather than design, standards; and (4) an exemption 
from coverage of the rule, or any part thereof, for small entities.

7. Overall Objective

    The overall objective of this proceeding is to establish an 
appropriate regulatory framework for ICS providers pursuant to section 
276 of the Act. The NPRM seeks comment on specific issues related to 
the provision of inmate payphone services, in particular, the costs 
associated with providing inmate calling services. The Commission 
intends through this NPRM and subsequent action, to reduce costs if 
possible.

8. Federal Rules that May Duplicate, Overlap, or Conflict with the 
Proposed Rules

    None.

B. Filing Comments

    Pursuant to sections 1.415 and 1.419 of the Commission's rules, 
interested parties may file comments within 45 days after publication 
of this NPRM in the Federal Register and may file reply comments within 
75 days after

[[Page 17038]]

publication of this NPRM in the Federal Register. All filings should 
refer to CC Docket No. 96-128. Comments may be filed using the 
Commission's Electronic Comment Filing System (ECFS) or by filing paper 
copies. Comments filed through ECFS can be sent as an electronic file 
via the Internet to http://www.fcc.gov/e-file/ecfs.html>. Generally, 
only one copy of an electronic submission must be filed. In completing 
the transmittal screen, commenters should include their full name, 
postal service mailing address, and the applicable docket number, which 
in this instance is CC Docket No. 96-128. 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 
formyour e-mail address.'' A sample form and directions will be sent in 
reply.
    1. Parties that choose to file comments or reply comments by paper 
must file an original and four copies of each, and are hereby notified 
that effective December 18, 2001, the Commission's contractor, 
Vistronix, Inc., receives hand-delivered or messenger-delivered paper 
filings for the Commission's Secretary at a new location in downtown 
Washington, DC. The address is 236 Massachusetts Avenue, NE, Suite 110, 
Washington, DC 20002. The filing hours at this location are 8:00 a.m. 
to 7:00 p.m. All hand deliveries must be held together with rubber 
bands or fasteners. Any envelopes must be disposed of before entering 
the building. This facility is the only location where hand-delivered 
or messenger-delivered paper filings for the Commission's Secretary 
will be accepted. Accordingly, the Commission will no longer accept 
these filings at 9300 East Hampton Drive, Capitol Heights, MD 20743. In 
addition, this is a reminder that, effective October 18, 2001, the 
Commission discontinued receiving hand-delivered or messenger-delivered 
filings for the Secretary at its headquarters location at 445 12th 
Street, SW, Washington, DC 20554.
    2. Other messenger-delivered documents, including documents sent by 
overnight mail (other than United States Postal Service (USPS) Express 
Mail and Priority Mail), must be addressed to 9300 East Hampton Drive, 
Capitol Heights, MD 20743. This location will be open 8:00 a.m. to 5:30 
p.m. The USPS first-class mail, Express Mail, and Priority Mail should 
continue to be addressed to the Commission's headquarters at 445 12th 
Street, SW, Washington, DC 20554. The USPS mail addressed to the 
Commission's headquarters is delivered to our Capitol Heights facility 
for screening prior to delivery at the Commission.
    3. Parties who choose to file by paper should also submit their 
comments on diskette. These diskettes should be submitted to the Chief, 
Pricing Policy Division, Wireline Competition Bureau, Federal 
Communications Commission, at the filing window at 236 Massachusetts 
Avenue, NE, Suite 110, Washington, DC 20002. Such a submission should 
be on a 3.5 inch diskette formatted in an IBM compatible format using 
Microsoft Word or compatible software. The diskette should be 
accompanied by a 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, CC Docket No. 
96-128), type of pleading (comment or reply comment), 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 pleading, 
preferably in a single electronic file. In addition, commenters must 
send diskette copies to the Commission's copy contractor, Qualex 
International, Portals II, 445 12th Street SW, CY-B402, Washington, DC 
20554.
    4. Regardless of whether parties choose to file electronically or 
by paper, parties should also file one copy of any documents filed in 
this docket with the Commission's copy contractor, Qualex 
International, Portals II, 445 12th Street SW, CY-B402, Washington, DC 
20554 (telephone 202-863-2893; facsimile 202-863-2898) or via e-mail at 
[email protected].
    5. Comments and reply comments must include a short and concise 
summary of the substantive arguments raised in the pleading. Comments 
and reply comments must also comply with section 1.48 and all other 
applicable sections of the Commission's rules. We direct all interested 
parties to include the name of the filing party and the date of the 
filing on each page of their comments and reply comments. All parties 
are encouraged to utilize a table of contents, regardless of the length 
of their submission.

C. Ex Parte Presentations

    This matter shall be treated as a ``permit but disclose'' 
proceeding in accordance with the Commission's ex parte rules. See 47 
CFR 1.1200, 1.1206. 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 is generally required. 
See 47 CFR 1.1206(b). Other rules pertaining to oral and written ex 
parte presentations in permit-but-disclose proceedings are set forth in 
section 1.1206(b) of the Commission's rules, 47 CFR 1.1206(b). 
Alternate formats (computer diskette, large print, audio recording, and 
Braille) are available to persons with disabilities by contacting Brian 
Millin at (202) 418-7426 voice, (202) 418-7365 TTY, or [email protected]. 
This NPRM can also be downloaded in Microsoft Word and ASCII formats at 
http://www.fcc.gov/ccb/cpd.

D. Ordering Clause

    It is ordered that, pursuant to the authority contained in sections 
1, 4(i)-4(j), 201, 226 and 276 of the Communications Act of 1934, as 
amended, 47 U.S.C. 151, 154(i)-(j), 201, 226, 276, this Notice of 
Proposed Rulemaking is Adopted.

List of Subjects

47 CFR Part 61

    Access Charges, Communications common carriers, Telephone.

47 CFR Part 69

    Communications common carriers, Telephone.

Federal Communications Commission.
William F. Caton,
Acting Secretary.
[FR Doc. 02-8344 Filed 4-8-02; 8:45 am]
BILLING CODE 6712-01-P