[Federal Register Volume 67, Number 210 (Wednesday, October 30, 2002)]
[Rules and Regulations]
[Pages 66069-66071]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 02-27569]


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FEDERAL COMMUNICATIONS COMMISSION

47 CFR Parts 32, 42, 51, and 64

[WC Docket No. 02-269, FCC 02-240]


Federal-State Joint Conference on Accounting Issues

AGENCY: Federal Communications Commission.

ACTION: Final rule.

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SUMMARY: In this document the Commission convenes a Federal-Station 
Joint Conference on Accounting Issues to provide a forum for an ongoing 
dialogue between the commission and the states in order to ensure that 
regulatory accounting data and related information filed by carriers 
are adequate, truthful, and thorough.

DATES: Effective October 30, 2002.

FOR FURTHER INFORMATION CONTACT: Jane Jackson, Associate Bureau Chief, 
Wireline Competition Bureau, at (202) 418-1500.

SUPPLEMENTARY INFORMATION: The following is a synopsis of action taken 
by the Commission that was adopted on August 27, 2002, and released on 
September 5, 2002, by the Commission: Commissioner Copps issuing a 
statement.

I. Introduction

    In this Order, we convene a Federal-State Joint Conference on 
Accounting Issues to provide a forum for an ongoing dialogue between 
the Commission and the states in order to ensure that regulatory 
accounting data and related information filed by carriers are adequate, 
truthful, and thorough. The Federal-State Joint Conference on 
Accounting Issues will further this goal by facilitating cooperative 
federal and state review of regulatory accounting and related reporting 
requirements in order to determine their adequacy and effectiveness in 
the current market and make recommendations for improvements.

II. Background

    Section 11 of the Communications Act requires that the Commission 
review every two years those regulations that are ``no longer necessary 
in the public interest as the result of meaningful economic competition 
between providers of telecommunications service.'' To this end, in the 
Phase II Accounting Reform proceeding, the Commission undertook its 
second comprehensive, biennial review of its Part 32 accounting rules 
and Automated Reporting Management Information System (ARMIS) reporting 
requirements. As part of this review, the Commission adopted changes to 
its accounting and related reporting rules that were intended to 
``reflect a sharpened focus on ongoing regulatory needs in the areas of 
competition and universal service[,]'' and minimize the regulatory 
burdens and distortions that could undermine the development of new 
technology. In addition, in a related Further Notice of Proposed 
Rulemaking, the Commission sought comment on certain accounting and 
related reporting requirements it identified for future reform.
    The National Association of Regulatory Utility Commissioners 
(NARUC) recently adopted a resolution concerning regulatory accounting 
rules and reporting requirements. Among other things, the NARUC 
resolution requests that the Commission establish a Federal-State Joint 
Conference ``to review regulatory accounting and reporting safeguards 
to determine their adequacy and effectiveness in current markets and 
make recommendations as to future accounting and reporting changes.

III. Establishment of the Joint Conference

    Accordingly, in order to further the development of improved 
regulatory accounting and reporting requirements and ensure that data 
filed by carriers are adequate, truthful, and thorough, we now convene 
a Federal-State Joint Conference on Accounting Issues (Joint Conference 
or Conference) pursuant to section 410(b) of the Communications Act. 
Section 410(b) provides that:

    [T]he Commission may confer with any State commission having 
regulatory jurisdiction with respect to carriers regarding the 
relationship between rate structures, accounts, charges, practices, 
classifications, and regulations of carriers subject to the 
jurisdiction of such State commission and of the Commission.

    We find that the public interest will be furthered by convening an 
ongoing conference on regulatory accounting safeguards pursuant to this 
provision. The Joint Conference will provide a focused means by which 
we and interested state commissions may conduct an open dialogue, 
collect and exchange information, and consider initiatives that will 
improve the collection of adequate, truthful, and thorough accounting 
data for regulatory purposes. We expect the Conference will facilitate 
the continuing review of federal and state accounting and related 
reporting requirements.
    Section 410(b) and the Commission's policies and procedures for 
implementing 410(b) Joint Conferences are flexible and will permit the 
Conference to begin rapidly an open dialogue regarding how best to make 
recommendations for improvements to existing regulatory accounting and 
related reporting requirements. Specifically, section 410(b) and our 
policies state that this Commission may confer with any State 
commission regarding matters that relate to the regulation of public 
utilities subject to the jurisdiction of either commission.
    We further conclude that the Conference shall be chaired by the 
Chairman of this Commission or his designee. Any or all of the other 
Federal commissioners may participate in the Conference, as may 
representatives from up to five State commissions, whom we will invite 
following recommendations from NARUC. Meetings will be called by the 
Conference Chairman, who may establish a regular schedule for meetings 
after consultations with Conference members. In addition, the 
Conference at any point may decide to include any of its findings and 
recommendations in a written report to this Commission. Finally, the 
Commission shall revisit the need for and utility of the Joint 
Conference in two years time.
    The activities of the Joint Conference will include the 
reexamination of federal and state regulatory accounting and related 
reporting requirements. The Joint Conference will have a broad mandate 
to evaluate accounting requirements that state and federal regulators 
need to carry out their responsibilities. This analysis could include, 
among other things, an evaluation of current regulatory accounting 
rules, consideration of the scope of these rules, and an examination of 
any additions to or eliminations of accounting requirements. The 
Conference may utilize existing federal and state data collection 
procedures and conduct hearings to collect information necessary to 
further the development of improved regulatory accounting and related 
reporting requirements and ensure that data filed by carriers are 
adequate, truthful, and thorough. Moreover, we direct the Conference 
specifically to consider the impact of its recommendations on local 
exchange carriers with fewer than 2 percent of the Nation's subscriber 
lines installed in the aggregate nationwide. The activities of the 
Joint Conference, however, will not limit the ability of this 
Commission to take separate, independent action concerning regulatory 
accounting and related reporting requirements.
    Finally, because section 410(b) provides a flexible vehicle for 
state-federal cooperation, we anticipate that, as appropriate, the 
Joint Conference will undertake efforts and utilize tools in addition 
to those discussed herein. We also expect that the Conference will seek 
the cooperation of private sector representatives, where necessary and 
appropriate, to assist in identifying appropriate improvements. In sum, 
it is our expectation that the cooperative efforts of the Conference 
will help restore public confidence in the telecommunications industry 
by improving regulatory accounting and

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related reporting requirements and ensuring that data filed by carriers 
are adequate, truthful, and thorough.

IV. Ordering Clauses

    Pursuant to section 410(b) of the Communications Act of 1934, 47 
U.S.C. 410(b), that the Federal-State Joint Conference on Accounting 
Issues be convened.
    Pursuant to section 410(b) of the Communications Act of 1934, 47 
U.S.C. 410(b), that the Federal-State Joint Conference shall be chaired 
by the Honorable Michael K. Powell or his designee and shall be 
comprised of any or all of the other Federal commissioners and 
representatives from up to five State commissions, who shall be 
recommended by the National Association of Regulatory Utility 
Commissioners.

List of Subjects in 47 CFR Parts 32, 42, 51, and 64

    Communications common carriers, Reporting and recordkeeping 
requirements, Telephone, Uniform System of Accounts.

Federal Communications Commission.
Marlene H. Dortch,
Secretary.
[FR Doc. 02-27569 Filed 10-29-02; 8:45 am]
BILLING CODE 6712-01-P