[Federal Register Volume 61, Number 187 (Wednesday, September 25, 1996)]
[Rules and Regulations]
[Pages 50244-50246]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-24473]
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FEDERAL COMMUNICATIONS COMMISSION
47 CFR Parts 32, 43 and 64
[CC Docket No. 96-193; FCC 96-370]
Implementation of the Telecommunications Act of 1996: Reform of
Filing Requirements and Carrier Classifications
AGENCY: Federal Communications Commission.
ACTION: Final rule.
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SUMMARY: This Order revises the Commission's rules to require only
annual Automated Reporting Management Information System (``ARMIS'')
reports and annual Cost Allocation Manual revisions. These changes were
required by the Telecommunications Act of 1996. Because the 1996 Act
did not specify how we should measure inflation in adjusting references
to carrier revenues, we also adopt interim rules to adjust those
references for inflation using a generally available inflation index.
The intended effect of this action is to
[[Page 50245]]
reduce the more frequent filings we previously required.
EFFECTIVE DATE: September 25, 1996.
FOR FURTHER INFORMATION CONTACT: Valerie Yates, Accounting and Audits
Division, Common Carrier Bureau at 202-418-0850.
SUPPLEMENTARY INFORMATION: This is a summary of the Commission's Order
implementing Sections 402(b)(2)(B) and 402(c) of the Telecommunications
Act of 1996 adopted September 3, 1996 and released September 11, 1996.
The full text of this Commission Order is available for inspection and
copying during normal business hours in the FCC Public Reference Room
(Room 230), 1919 M St., N.W., Washington, D.C. The complete text of
this decision may also be purchased from the Commission's copy
contractor, International Transcript Service (202) 857-3800, 1919 M
St., N.W., Suite 246, Washington, D.C. 20554.
2. The Commission has not published a notice of proposed
rulemaking, as allowed by 5 U.S.C. 553(b)(B) when the agency
determines, for good cause, that it is unnecessary to publish a
proposed rule and obtain comments from interested persons. The
Commission has determined that publication of a proposed rule is
unnecessary for the following reasons. The rule changes to require only
annual ARMIS reports and cost allocation manual revisions merely
implement the requirements of the 1996 Act and involve no discretionary
action by the Commission. The changes to revenue thresholds are
necessary to comply with the effective date of the statutory directive.
Providing prior notice and an opportunity to comment would be
impracticable and contrary to the public interest.
3. Paperwork Reduction Analysis: Public reporting burden for this
collection of information is estimated to average 220 hours per
response, including the time frame for reviewing instructions,
searching existing data sources, gathering and maintaining the data
needed, and completing and reviewing the collection of information.
Send comments regarding this burden estimate or any other aspect of
this collection of information, including suggestions for reducing the
burden, to the Federal Communications Commission, Records Management
Branch, Paperwork Reduction Project (3060-0511), Washington, D.C. 20554
and to the Office of Management and Budget, Paperwork Reduction Project
(3060-0511), Washington, D.C. 20503.
Ordering Clauses
Accordingly, it is ordered that, pursuant to Sections 402(b)(2)(B)
and 402(c) of the Telecommunications Act of 1996, Pub. L. No. 104-104,
sec. 402(b)(2)(B) and 402(c), and Sections 1, 4, 201-205, 215, 218, 220
of the Communications Act of 1934, as amended, 47 U.S.C. Secs. 151(a),
154, 201-205, 215, 218 and 220, and Section 553(b)(B) of the
Administrative Procedure Act, 5 U.S.C. Sec. 553(b)(B), Parts 32, 43,
and 64 of the Commission's rules, 47 CFR Parts 32, 43, and 64 are
amended, as set forth below.
It is further ordered that this Report and Order will be effective
September 25, 1996.
List of Subjects in 47 CFR Parts 32, 43 and 64
Communications common carriers, Reporting and recordkeeping
requirements, Telephone.
Federal Communications Commission.
Shirley S. Suggs,
Chief, Publications Branch.
Rule Changes
Parts 32, 43 and 64 of Title 47 of the CFR are amended as follows:
PART 32--UNIFORM SYSTEM OF ACCOUNTS FOR TELECOMMUNICATIONS
COMPANIES
1. The authority citation for Part 32 is revised to read as
follows:
Authority: 47 U.S.C. 154.
2. Section 32.11 is amended by revising paragraphs (a) (1) and
(a)(2) to read as follows:
Sec. 32.11 Classification of companies.
(a) * * *
(1) Class A. Companies having annual revenues from regulated
telecommunications operations that are equal to or above the indexed
revenue threshold.
(2) Class B. Companies having annual revenues from regulated
telecommunications operations that are less than the indexed revenue
threshold.
* * * * *
3. Section 32.9000 is amended by adding the definition of ``Indexed
revenue threshold for a given year'' in alphabetical order to read as
follows:
Sec. 32.9000 Glossary of terms.
* * * * *
Indexed revenue threshold for a given year means $100 million,
adjusted for inflation, as measured by the Department of Commerce Gross
Domestic Product Chain-type Price Index (GDP-CPI), for the period from
October 19, 1992 to the given year. The indexed revenue threshold for a
given year shall be determined by multiplying $100 million by the ratio
of the annual value of the GDP-CPI for the given year to the estimated
seasonally adjusted GDP-CPI on October 19, 1992. The indexed revenue
threshold shall be rounded to the nearest $1 million. The seasonally
adjusted GDP-CPI on October 19, 1992 is determined to be 100.69.
* * * * *
PART 43--REPORTS OF COMMUNICATION COMMON CARRIERS AND CERTAIN
AFFILIATES
1. The authority citation for Part 43 is revised to read as
follows:
Authority: 47 U.S.C. 154.
2. Section 43.21 is amended by revising the first two sentences of
paragraph (a), revising paragraph (c), revising the first two sentences
of paragraph (d), revising the introductory text of paragraph (f), and
adding new paragraph (g) to read as follows:
Sec. 43.21 Annual reports of carriers and certain affiliates.
(a) Communication common carriers having annual operating revenues
in excess of the indexed revenue threshold, as defined in Sec. 32.9000,
and certain companies (as indicated in paragraph (c) of this section)
directly or indirectly controlling such carriers shall file with the
Commission annual reports or an annual letter as provided in this
section. Except as provided in paragraphs (c), (e), (f), and (g) of
this section, each annual report required by this section shall be
filed not later than March 31 of each year, covering the preceding
calendar year. * * *
* * * * *
(c) Each company, not itself a communication common carrier, that
directly or indirectly controls any communication common carrier that
has annual operating revenues equal to or above the indexed revenue
threshold shall file annually with the Commission, not later than the
date prescribed by the Securities and Exchange Commission for its
purposes, two complete copies of any annual report Forms 10-K (or any
superseding form) filed with that Commission.
(d) Each miscellaneous common carrier (as defined by Sec. 21.2 of
this chapter) with operating revenues for a calendar year in excess of
the indexed revenue threshold shall file with the Common Carrier Bureau
Chief a letter showing its operating revenues for that year and the
value of its total
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communications plant at the end of that year. Each record carrier with
operating revenues for a calendar year in excess of three-fourths of
the indexed revenue threshold shall file a letter showing selected
income statement and balance sheet items for that year with the Common
Carrier Bureau Chief. * * *
* * * * *
(f) Each local exchange carrier with annual operating revenues
equal to or above the indexed revenue threshold shall file, no later
than April 1 of each year, reports showing:
* * * * *
(g) Each local exchange carrier with operating revenues for the
preceding year that are equal to or above the indexed revenue threshold
shall file, no later than April 1 of each year, a report showing for
the previous calendar year its revenues, expenses, taxes, plant in
service, other investment and depreciation reserves, and such other
data as are required by the Commission, on computer media prescribed by
the Commission. The total operating results shall be allocated between
regulated and nonregulated operations, and the regulated data shall be
further divided into the following categories: State and interstate,
and the interstate will be further divided into common line, traffic
sensitive access, special access and nonaccess.
3. Section 43.22 is revised to read as follows:
Sec. 43.22 Quarterly reports of communication common carriers.
Each designated interstate carrier with operating revenues for the
preceding year that are equal to or above the indexed revenue threshold
shall file, by March 31, June 30, September 30, and December 31 of each
year, a report showing for the previous calendar quarter its revenues,
expenses, taxes, plant in service, other investment and depreciation
reserves, and such other data as are required by the Commission, on
computer media prescribed by the Commission. The total operating
results shall be allocated between regulated and nonregulated
operations, and the regulated data shall be further divided into the
following categories: State and interstate, and the interstate will be
further divided into the major services.
4. Section 43.41 is amended by revising the first sentence to read
as follows:
Sec. 43.41 Reports on Inside Wiring Services.
Each local exchange carrier with annual operating revenues equal to
or above the indexed revenue threshold shall file, within thirty (30)
days of its publication or release, a copy of any state or local
statute, rule, order, or other document that regulates, or proposes to
regulate, the price or prices the local exchange carrier charges for
inside wiring services. * * *
5. Paragraph (a) of section 43.43 is revised to read as follows:
Sec. 43.43 Reports of proposed changes in depreciation rates.
(a) Each communication common carrier with annual operating
revenues equal to or above the indexed revenue threshold and which has
been found by this Commission to be a dominant carrier with respect to
any communications service shall, before making any change in the
depreciation rates applicable to its operated plant, file with the
Commission a report furnishing the data described in the subsequent
paragraphs of this section, and also comply with the other requirements
thereof.
* * * * *
PART 64--MISCELLANEOUS RULES RELATING TO COMMON CARRIERS
1. The authority citation for Part 64 is revised to read as
follows:
Authority: 47 U.S.C. 154.
2. Section 64.903 is amended by revising the introductory text of
paragraph (a) and paragraph (b) to read as follows:
Sec. 64.903 Cost Allocation Manuals.
(a) Each local exchange carrier with annual operating revenues
equal to or above the indexed revenue threshold, as defined in
Sec. 32.9000 of this chapter, shall file with the Commission a manual
containing the following information regarding its allocation of costs
between regulated and nonregulated activities:
* * * * *
(b) Each carrier shall ensure that the information contained in its
cost allocation manual is accurate. Carriers must update their cost
allocation manuals at least annually, except that changes to the cost
apportionment table and to the description of time reporting procedures
must be filed at least 60 days before the carrier plans to implement
the changes. Annual cost allocation manual updates shall be filed on or
before the last working day of each calendar year. Proposed changes in
the description of time reporting procedures, the statement concerning
affiliate transactions, and the cost apportionment table must be
accompanied by a statement quantifying the impact of each change on
regulated operations. Changes in the description of time reporting
procedures and the statement concerning affiliate transactions must be
quantified in $100,000 increments at the account level. Changes in cost
apportionment tables must be quantified in $100,000 increments at the
cost pool level. The Chief, Common Carrier Bureau may suspend any such
changes for a period not to exceed 180 days, and may thereafter allow
the change to become effective or prescribe a different procedure.
* * * * *
[FR Doc. 96-24473 Filed 9-24-96; 8:45 am]
BILLING CODE 6712-01-P
