Changes to the Board of Directors of the National Exchange Carrier Association, Inc. and Federal-State Joint Board on Universal Service

FEDERAL COMMUNICATIONS COMMISSION

47 CFR Parts 54 and 64

[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: Proposed rule.

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SUMMARY: The Further Notice of Proposed Rulemaking released August 15,

1997 proposes to amend the Commission's rules regarding revenue

information submitted to NECA by TRS contributors. The proposed rules

would permit USAC, NECA, to the extent that it is acting on behalf of

USAC, and the permanent universal service Administrator, to use revenue

data submitted to the TRS Administrator by TRS contributors in order to

verify revenue information provided on the Universal Service Worksheet

by contributors to the universal service support mechanisms.

DATES: Comments are to be filed on or before September 11, 1997. Reply

comments are to be filed on or before September 26, 1997.

ADDRESSES: Office of the Secretary, Federal Communications Commission,

1919 M Street, NW., Room 222, Washington, DC 20554.

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

Further Notice of Proposed Rulemaking 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

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Recommended Decision on November 8, 1996 (61 FR 63778 (December 2,

1996)), a Public Notice seeking comment on rules to implement

Sec. Sec. 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)). The Further Notice of Proposed Rulemaking certifies,

pursuant to section 605(b) of the Regulatory Flexibility Act (RFA),

that the proposed rule amendments would not have a significant economic

impact on a substantial number of small entities and seeks comment on

this tentative conclusion.

Summary of Further Notice of Proposed Rulemaking

I. Further Notice of Proposed Rulemaking

In this Further Notice of Proposed Rulemaking (FNPRM) we propose to

amend Sec. 64.604(c)(4)(iii)(I) of the Commission's rules to permit the

use of TRS Fund revenue data by USAC, NECA, to the extent that it is

acting on behalf of USAC, and the permanent universal service

Administrator to enable those entities to verify revenue information

provided by contributors pursuant to the Universal Service Worksheet.

Although Sec. 64.604(c)(4)(iii)(I) specifically provides that the

Commission may order the disclosure of the underlying revenue data

contained in the TRS Fund database, we note that the rule also imposes

limitations regarding permissible use of the data. Therefore, in light

of the limitations imposed on NECA by Sec. 64.604(c)(4)(iii)(I)

regarding permissible use of the data, and consistent with our prior

practice, we propose to amend the rule rather than directing NECA, in

its capacity as TRS Administrator, to disclose the data to the

universal service Administrator. Accordingly, we propose to amend the

rule to state that the TRS Fund data also may be used by USAC, NECA, to

the extent that it is acting on behalf of USAC, and the permanent

universal service Administrator, for the purpose of verifying revenue

information provided by contributors to the universal service support

mechanisms. We further propose to amend Sec. 54.711(b) to clarify that,

except as specified here, the duty of NECA, USAC, and the permanent

Administrator to keep confidential all data obtained from universal

service contributors, not to use such data except as provided in the

proposed rule amendment, and not to disclose the information in

company-specific form unless directed to do so by the Commission

extends to data obtained from the TRS Fund as well.

We tentatively conclude that these proposed amendments are

sufficient to maintain the confidentiality of the TRS Fund revenue data

disclosed to the universal service Administrator in light of the

restrictions we propose to impose upon their use. We seek comment on

this tentative conclusion and the proposed rule amendments set forth

below.

II. Procedural Matters

A. Ex Parte

The FNPRM is a permit-but-disclose notice and comment rulemaking

proceeding. Ex parte presentations are permitted, except during the

Sunshine Agenda period, provided they are disclosed as provided in the

Commission's rules.

B. Regulatory Flexibility

Section 603 of the Regulatory Flexibility Act (RFA), as amended,

requires an Initial Regulatory Flexibility Analysis in notice and

comment rulemaking proceedings, unless the head of the agency certifies

that ``the rule will not, if promulgated, have a significant economic

impact on a substantial number of small entities.'' The FNPRM portion

of this proceeding applies only to NECA's obligation to disclose

certain TRS Fund data to the universal service Administrator.

For the purposes of this FNPRM, the RFA defines a ``small

business'' to be the same as a ``small business concern'' under the

Small Business Act, unless the Commission has developed one or more

definitions that are appropriate to its activities. Under the Small

Business Act, a ``small business concern'' includes a small

organization, which is defined as a non-profit enterprise that is

independently owned and operated and is not dominant in its field. NECA

is a non-profit, quasi-governmental association that was created to

administer the Commission's interstate access tariff and revenue

distribution processes. Therefore, NECA is not a small organization

within the meaning of the RFA. Furthermore, this FNPRM does not apply

to other ``small business concerns'' because it proposes to modify a

rule that applies only to NECA. For this reason, we tentatively

conclude that these proposals would not have a significant economic

impact on a substantial number of small entities.

We therefore certify, pursuant to section 605(b) of the RFA, that

the proposed rule amendments would not have a significant economic

impact on a substantial number of small entities. We seek comment on

this tentative conclusion. The Commission shall publish this

certification in the Federal Register, and shall provide a copy of this

FNPRM, including this certification, to the Chief Counsel for Advocacy

of the Small Business Administration.

C. Effective Date

We find that the conclusions adopted herein should become effective

immediately upon release of the Order.

D. Procedures for Filing Comments

We invite comment on the proposed rule amendments, issues, and

tentative conclusion set forth in the Further Notice of Proposed

Rulemaking. Pursuant to applicable procedures set forth in

Sec. Sec. 1.415 and 1.419 of the Commission's rules, interested parties

may file FNPRM comments on or before September 11, 1997 and reply

comments on or before September 26, 1997. To file formally in this

proceeding, parties must file an original and six copies of all

comments, reply comments, and supporting comments. Parties that want

each Commissioner to receive a personal copy, must file an original

plus eleven copies. Parties should send comments and reply comments to

Office of the Secretary, Federal Communications Commission, 1919 M

Street, N.W., Room 222, Washington, D.C. 20554. Five courtesy copies

should also be sent to Sheryl Todd at 2100 M Street, N.W., Room 8611,

Washington, D.C. 20554. Parties should also file one copy of any

document filed in this docket with the Commission's copy contractor,

International Transcription Services, Inc. (ITS), 2100 M Street, N.W.,

Suite 140, Washington, D.C. 20037. ITS's telephone number is 202-857-

3800. Comments and reply comments will be available for public

inspection during regular business hours in the FCC Reference Center,

Room 239, 1919 M Street, N.W., Washington, D.C. 20554. Comments and

reply comments must

[[Page 47406]]

include a concise summary of the substantive arguments raised in the

pleading.

Parties are also asked to submit comments on diskette. Diskette

submissions would be in addition to and not a substitute for the formal

filing requirements addressed above. Parties submitting diskettes

should submit them to Sheryl Todd at 2100 M Street, N.W., Room 8611,

Washington, D.C. 20554. Such a submission should be on a 3.5 inch

diskette in an IBM compatible format using WordPerfect 5.1 for Windows

software in a ``read only'' mode. The diskette should be accompanied by

a cover letter. For further information concerning this proceeding,

contact Sheryl Todd, Accounting and Audits Division, Common Carrier

Bureau at 202-418-7400.

III. Ordering Clauses

It is further ordered, pursuant to sections 1-4, 254 of the

Communications Act of 1934, as amended, 47 U.S.C. Sec. Sec. 151-154,

and 254 that notice is hereby given of proposed amendments to parts 64

and 54 of the Commission's Rules, 47 CFR parts 64 and 54, as described

in the further notice of proposed rulemaking in CC Docket No. 97-21 and

comments are requested as described above.

List of Subjects

47 CFR part 54

Universal service.

47 CFR part 64

Communications common carriers.

Federal Communications Commission.

William F. Caton,

Acting Secretary.

Rule Changes

Parts 54 and 64 of title 47 of the Code of Federal Regulations are

proposed to be amended as follows:

PART 54--UNIVERSAL SERVICE

1. The authority citation for part 54 continues to read as follows:

Authority: 47 U.S.C. Secs. 1, 4(i), 201, 214, and 254, unless

otherwise noted.

2. Section 54.711 is proposed to be amended by revising paragraph

(b) to read as follows:

Section 54.711 Contributor reporting requirements.

* * * * *

(b) The Commission shall have access to all data reported to the

Administrator, Schools and Libraries Corporation, and Rural Health Care

Corporation. Contributors may make requests for Commission

nondisclosure of company-specific information under Sec. 0.459 of this

chapter at the time that the subject data are submitted to the

Administrator. The Commission shall make all decisions regarding

nondisclosure of company-specific information. The Administrator,

Schools and Libraries Corporation, and Rural Health Care Corporation

shall keep confidential all data obtained from contributors, including

all data obtained from the Administrator of the Telecommunications

Relay Service Fund, shall not use such data except for purposes of

administering the universal service support programs, and shall not

disclose such data in company-specific form unless directed to do so by

the Commission.

* * * * *

PART 64--MISCELLANEOUS RULES RELATING TO COMMON CARRIERS

1. The authority citation for part 64 continues to read as follows:

Authority: 47 U.S.C. Sec. 154 unless otherwise noted.

2. Section 64.604 is amended by revising paragraph (c)(4)(iii)(I)

to read as follows:

Section 64.604 Mandatory minimum standards.

* * * * *

(c) * * *

(4) * * *

(iii) * * *

(I) Information filed with the administrator. The administrator

shall keep all data obtained from contributors and TRS providers

confidential and shall not disclose such data in company-specific form

unless directed to do so by the Commission. The administrator shall not

use such data except for purposes of administering the TRS Fund,

enabling the universal service Administrator to verify revenue

information provided by contributors to the universal service support

mechanisms, calculating the regulatory fees of interstate common

carriers, and aggregating such fee payments for submission to the

Commission. The Commission shall have access to all data reported to

the administrator, and authority to audit TRS providers.

* * * * *

[FR Doc. 97-23828 Filed 9-8-97; 8:45 am]

BILLING CODE 6712-01-P