[Federal Register Volume 61, Number 210 (Tuesday, October 29, 1996)]
[Proposed Rules]
[Page 55779]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-27684]
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Proposed Rules
Federal Register
________________________________________________________________________
This section of the FEDERAL REGISTER contains notices to the public of
the proposed issuance of rules and regulations. The purpose of these
notices is to give interested persons an opportunity to participate in
the rule making prior to the adoption of the final rules.
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Federal Register / Vol. 61, No. 210 / Tuesday, October 29, 1996 /
Proposed Rules
[[Page 55779]]
FEDERAL COMMUNICATIONS COMMISSION
47 CFR Part 36
[CC Docket No. 80-286; FCC 96J-2]
Establishment of a Joint Board
AGENCY: Federal Communications Commission.
ACTION: Proposed rule; recommended decision.
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SUMMARY: On September 27, 1996, the Federal-State Joint Board in CC
Docket No. 80-286 adopted a Recommended Decision regarding permanent
rules for the separation of the expenses assigned to the other billing
and collecting category of the Commission's rules (OB&C) between the
state and interstate jurisdictions.1 In a Notice of Proposed
Rulemaking released May 15, 1995,2 the Commission had requested
that the Joint Board recommend permanent rules that would reflect
reasonable principles of cost causation and would not be unnecessarily
burdensome to implement and administer. Through its Recommended
Decision, the Joint Board intended to assist the Commission in
formulating permanent rules for the jurisdictional separation of OB&C
expenses that satisfy the Commission's stated goals that the permanent
rules reflect principles of cost causation, not be unnecessarily
burdensome to implement and administer, be simple to audit, and be
certain and predictable in their effect.3
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\1\ Amendment of Part 36 of the Commission's Rules and
Establishment of a Joint Board, Recommended Decision, FCC 96J-2, CC
Docket No. 80-286 (rel. Sept. 27, 1996).
\2\ Amendment of Part 36 of the Commission's Rules and
Establishment of a Joint Board, Notice of Proposed Rulemaking, 10
FCC Rcd 7013 (1995) (Notice).
\3\ Notice, 10 FCC Rcd at 7015.
FOR FURTHER INFORMATION CONTACT: Jon Reel, (202) 418-0872, Common
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Carrier Bureau, Accounting and Audits Division.
SUPPLEMENTARY INFORMATION: This is a summary of the Federal-State Joint
Board recommendation to the Federal Communication Commission, Amendment
of Part 36 of the Commission's Rules and Establishment of a Joint
Board, Recommended Decision, FCC 96J-2, CC Docket No. 80-286, adopted
and released September 27, 1996. This action was initiated by a Notice
of Proposed Rulemaking released May 15, 1995 (60 FR 30059). The
Commission has made the full text of the Recommended Decision available
for inspection and copying during normal business hours in the
Commission's Reference Center, Room 239, 1919 M Street, NW.,
Washington, DC 20554, and will publish it in the FCC Record. The full
text of the Recommended Decision may also be purchased from the
Commission's duplicating contractor, International Transcription
Service, 2100 M Street, NW., Suite 140, Washington, DC 20037, telephone
number (202) 857-3800.
Summary of Recommended Action: The Recommended Decision of the
Federal-State Joint Board in CC Docket No. 80-286 concerns the
allocation of OB&C expenses between the federal and state
jurisdictions. OB&C expenses are the expenses incurred by incumbent
local exchange carriers (ILECs) in preparing and rendering customer
bills and in accounting for revenues generated by those bills. Under
the recommended permanent rules, OB&C expenses would be allocated
equally among local exchange, intrastate toll, and interstate toll
service. This allocation would result in allocating two-thirds of OB&C
expenses to the state jurisdiction, and one third of OB&C expenses to
the interstate jurisdiction. ILECs that do not bill for interexchange
carriers will allocate five percent of OB&C expenses to the interstate
jurisdiction to cover the cost of billing the federal Subscriber Line
Charge. The Joint Board found that, because OB&C expenses are largely
joint and common expenses, an allocation procedure based on usage of
individual services would not allocate expenses more accurately than a
fixed allocation factor. The Joint Board therefore gave great weight to
additional considerations such as convenience and predictability, and
found that a fixed-factor method of allocation best satisfied those
considerations.
2. Recommendation Clauses: For all the reasons discussed in this
Recommended Decision, this Federal State Joint Board recommends,
pursuant to Section 410(c) of the Communications Act of 1934, as
amended, 47 U.S.C. 410(c), that the Federal Communications Commission
amend Part 36, Subpart D of the Commission's Rules, 47 CFR Part 36,
Subpart D.
List of Subjects in 47 CFR Part 36
Communications common carriers, Jurisdictional separations
procedures, Reporting and recordkeeping requirements, Telephone,
Universal System of Accounts.
Federal Communications Commission.
William F. Caton,
Acting Secretary.
[FR Doc. 96-27684 Filed 10-28-96; 8:45 am]
BILLING CODE 6712-01-P