82_FR_16214 82 FR 16152 - Jurisdictional Separations and Referral to the Federal-State Joint Board

82 FR 16152 - Jurisdictional Separations and Referral to the Federal-State Joint Board

FEDERAL COMMUNICATIONS COMMISSION

Federal Register Volume 82, Issue 62 (April 3, 2017)

Page Range16152-16155
FR Document2017-06532

The Commission proposes a further eighteen month extension of the current freeze of category relationships and allocation factors for price cap carriers and all allocation factors for rate-of-return carriers and seeks comment on several issues regarding the potential effects of the freeze extension.

Federal Register, Volume 82 Issue 62 (Monday, April 3, 2017)
[Federal Register Volume 82, Number 62 (Monday, April 3, 2017)]
[Proposed Rules]
[Pages 16152-16155]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2017-06532]


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FEDERAL COMMUNICATIONS COMMISSION

47 CFR Part 36

[CC Docket No. 80-286; FCC 17-22]


Jurisdictional Separations and Referral to the Federal-State 
Joint Board

AGENCY: Federal Communications Commission.

ACTION: Proposed rule.

-----------------------------------------------------------------------

SUMMARY: The Commission proposes a further eighteen month extension of 
the current freeze of category relationships and allocation factors for 
price cap carriers and all allocation factors for rate-of-return 
carriers and seeks comment on several issues regarding the potential 
effects of the freeze extension.

DATES: Comments are due on or before April 17, 2017. Reply comments are 
due on or before April 24, 2017.

ADDRESSES: Federal Communications Commission, 445 12th St. SW., 
Washington, DC 20554.

FOR FURTHER INFORMATION CONTACT: Rhonda Lien, Wireline Competition 
Bureau, Pricing Policy Division at (202) 418-1540 or at 
[email protected].

SUPPLEMENTARY INFORMATION: This a summary of the Commission Further 
Notice of Proposed Rulemaking released on March 20, 2017. The full text 
of this document may be accessed at the following internet address: 
https://apps.fcc.gov/edocs_public/attachmatch/FCC-17-22A1.docx.
    Pursuant to sections 1.415 and 1.419 of the Commission's rules, 47 
CFR 1.415, 1.419, interested parties may file comments and reply 
comments on or before the dates indicated on the first page of this 
document. Comments may be filed using the Commission's Electronic 
Comment Filing System (ECFS). See Electronic Filing of Documents in 
Rulemaking Proceedings, 63 FR 24121 (1998). Section 1.415(b) of the 
Commission's rules does not establish a minimum time period for the 
Commission to receive comments on proposed rules. Rather, the rule 
states that a ``reasonable time will be provided for submission of 
comments.'' In this proceeding, because the current separations freeze 
will otherwise expire on June 30, 2017, and because we expect our 
proposal to extend the freeze will not generate controversy, we find 
that it is reasonable to allow 14 days after Federal Register 
publication for the filing of comments and seven days after that for 
the filing of any reply comments.
    [ssquf] Electronic Filers: Comments may be filed electronically 
using the Internet by accessing the ECFS: http://fjallfoss.fcc.gov/ecfs2/.
    [ssquf] Paper Filers: Parties who choose to file by paper must file 
an original and one copy of each filing. If more than one docket or 
rulemaking number appears in the caption of this proceeding, filers 
must submit two additional copies for each additional docket or 
rulemaking number.
    [ssquf] Filings can be sent by hand or messenger delivery, by 
commercial overnight courier, or by first-class or overnight U.S. 
Postal Service mail. All filings must be addressed to the Commission's 
Secretary, Office of the Secretary, Federal Communications Commission.
    [ssquf] All hand-delivered or messenger-delivered paper filings for 
the Commission's Secretary must be delivered to FCC Headquarters at 445 
12th St. SW., Room TW-A325, Washington, DC 20554. The filing hours are 
8:00 a.m. to 7:00 p.m. All hand deliveries must be held together with 
rubber bands or fasteners. Any envelopes and boxes must be disposed of 
before entering the building.
    [ssquf] Commercial overnight mail (other than U.S. Postal Service 
Express Mail and Priority Mail) must be sent to 9300 East Hampton 
Drive, Capitol Heights, MD 20743.

[[Page 16153]]

    [ssquf] U.S. Postal Service first-class, Express, and Priority mail 
must be addressed to 445 12th Street SW., Washington, DC 20554.
    Accessible Formats. To request materials in accessible formats for 
people with disabilities (Braille, large print, electronic files, audio 
format), send an email to [email protected] or call the Consumer & 
Governmental Affairs Bureau at (202) 418-0530 (voice), (202) 418-0432 
(tty).
    Ex Parte Presentations. The proceeding this Further Notice 
initiates shall be treated as a ``permit-but-disclose'' proceeding in 
accordance with the Commission's ex parte rules. Persons making ex 
parte presentations must file a copy of any written presentation or a 
memorandum summarizing any oral presentation within two business days 
after the presentation (unless a different deadline applicable to the 
Sunshine period applies). Persons making oral ex parte presentations 
are reminded that memoranda summarizing the presentation must (1) list 
all persons attending or otherwise participating in the meeting at 
which the ex parte presentation was made, and (2) summarize all data 
presented and arguments made during the presentation. If the 
presentation consisted in whole or in part of the presentation of data 
or arguments already reflected in the presenter's written comments, 
memoranda or other filings in the proceeding, the presenter may provide 
citations to such data or arguments in his or her prior comments, 
memoranda, or other filings (specifying the relevant page and/or 
paragraph numbers where such data or arguments can be found) in lieu of 
summarizing them in the memorandum. Documents shown or given to 
Commission staff during ex parte meetings are deemed to be written ex 
parte presentations and must be filed consistent with rule 1.1206(b). 
In proceedings governed by rule 1.49(f) or for which the Commission has 
made available a method of electronic filing, written ex parte 
presentations and memoranda summarizing oral ex parte presentations, 
and all attachments thereto, must be filed through the electronic 
comment filing system available for that proceeding, and must be filed 
in their native format (e.g., .doc, .xml, .ppt, searchable .pdf). 
Participants in this proceeding should familiarize themselves with the 
Commission's ex parte rules.
    We propose to extend the existing separations freeze for an 
additional eighteen months while we work to reform the separations 
rules. As with our prior freezes, we propose that the freeze extension 
be implemented as described in the 2001 Separations Freeze Order. 
Specifically, we propose to direct rate-of-return ILECs to continue to 
use the same frozen jurisdictional allocation factors, and the same 
frozen category relationships if they had opted previously to freeze 
those relationships. We seek comment on this proposal. Are there 
adjustments we should make on a going-forward basis to the current 
freeze?
    The policy changes adopted by the Commission in recent years, 
particularly those arising from the Commission's fundamental reform of 
the high cost universal service support program and intercarrier 
compensation systems in the USF/ICC Transformation Order and from our 
recent changes to the Part 32 accounting rules, will significantly 
affect the Commission's and the Joint Board's analysis of interim and 
comprehensive separations reform. We believe that extending the freeze 
for eighteen months will allow the Joint Board sufficient time to 
consider the impact of our recent reforms on the separations rules and 
will allow us the opportunity to fashion a Notice of Proposed 
Rulemaking that benefits from the Joint Board's consideration of how 
best to approach separations reform. We seek comment on this proposed 
path forward, and invite commenters to identify alternative approaches.
    One significant benefit of extending the freeze while we undertake 
reform will be to provide stability and regulatory certainty for ILECs 
during the reform process. As the Commission has observed, if the 
frozen category relationships and allocation factors were unfrozen, 
ILECs would be required to reinstitute their separations processes that 
have not been used since the inception of the freeze almost sixteen 
years ago. Reinstating these requirements would require substantial 
training and investment. Moreover, given the significant changes in 
technologies and investment decisions, as well as changes in regulatory 
approaches at both the state and federal levels, the existing 
separations rules are likely outdated. We anticipate that extending the 
jurisdictional separations freeze would provide rate-of-return ILECs 
with certainty in the near future as they continue apportioning costs 
as they have since the 2001 Separations Freeze Order, and would be 
preferable to re-imposing the burden of the separations rules. We seek 
comment on these on other benefits or drawbacks to a continued freeze.
    We also seek comment on the effect that our proposal to extend the 
freeze would have on small entities, and whether any rules that we 
adopt should apply differently to small entities. We seek comment on 
the costs and burdens of an extension on small ILECs and whether the 
extension would disproportionately affect specific types of carriers or 
ratepayers.
    The Joint Board has a pending referral to consider broadly any 
appropriate changes to the separations rules. We will evaluate whether 
other discrete issues should be referred to the Joint Board. We 
anticipate that the Joint Board will meet in July 2017 to consider 
reform of the separations process. We expect to receive the Joint 
Board's recommendations for comprehensive separations reform within 
nine months thereafter, that is, in April 2018.

Procedureal Matters

    Paperwork Reduction Act. This document does not contain proposed 
information collection(s) subject to the Paperwork Reduction Act of 
1995 (PRA), Public Law 104-13. In addition, therefore, it does not 
contain any new or modified information collection burden for small 
business concerns with fewer than 25 employees, pursuant to the Small 
Business Paperwork Relief Act of 2002, Public Law 107-198, see 44 
U.S.C. 3506(c)(4).
    Initial Regulatory Flexibility Act Analysis. As required by the 
Regulatory Flexibility Act of 1980 (RFA), the Commission has prepared 
an Initial Regulatory Flexibility Analysis (IRFA) for this Further 
Notice of Proposed Rulemaking, of the possible significant economic 
impact on small entities of the policies and rules addressed in this 
document.

Need for, and Objectives of, the Proposed Rules

    In the 1997 Separations Notice, the Commission noted that the 
network infrastructure by that time had become vastly different from 
the network and services used to define the cost categories appearing 
in the Commission's Part 36 jurisdictional separations rules, and that 
the separations process codified in Part 36 was developed during a time 
when common carrier regulation presumed that interstate and intrastate 
telecommunications service must be provided through a regulated 
monopoly. Thus, the Commission initiated a proceeding with the goal of 
reviewing comprehensively the Commission's Part 36 procedures to ensure 
that they meet the objectives of the Telecommunications Act of 1996 
(1996 Act). The Commission sought comment on the extent to which 
legislative

[[Page 16154]]

changes, technological changes, and market changes might warrant 
comprehensive reform of the separations process. More than eighteen 
years have elapsed since the closing of the comment cycle on the 1997 
Separations Notice, and more than fifteen years have elapsed since the 
imposition of the freeze. The industry has experienced myriad changes 
during that time, including reform of universal service and 
intercarrier compensation; therefore, we ask for comment on the impact 
of a further extension of the freeze. The purpose of the proposed 
extension of the freeze is to ensure that the Commission's separations 
rules meet the objectives of the 1996 Act, and to allow the Commission 
additional time to consider changes that may need to be made to the 
separations process in light of changes in the law, technology, and 
market structure of the telecommunications industry.

Legal Basis

    The legal basis for the Further Notice of Proposed Rulemaking is 
contained in sections 1, 2, 4(i), 201-205, 215, 218, 220, and 410 of 
the Communications Act of 1934, as amended.

Description and Estimate of the Number of Small Entities to Which Rules 
May Apply

    The RFA directs agencies to provide a description of, and, where 
feasible, an estimate of the number of small entities that may be 
affected by the proposed rules, if adopted. 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). Nationwide, there are a total of approximately 
27.9 million small businesses, according to the SBA.
    Incumbent Local Exchange Carriers (Incumbent LECs). Neither the 
Commission nor the SBA has developed a small business size standard 
specifically for providers of incumbent local exchange services. The 
closest applicable size standard under the SBA rules is for Wired 
Telecommunications Carriers. Under the SBA definition, a carrier is 
small if it has 1,500 or fewer employees. According to the FCC's 
Telephone Trends Report data, 1,307 incumbent LECs reported that they 
were engaged in the provision of local exchange services. Of these 
1,307 carriers, an estimated 1,006 have 1,500 or fewer employees and 
301 have more than 1,500 employees. Consequently, the Commission 
estimates that most incumbent LECs are small entities that may be 
affected by the rules and policies adopted herein.
    We have included small incumbent LECs in this 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. Because our proposals concerning the Part 36 
separations process will affect all incumbent LECs providing interstate 
services, some entities employing 1,500 or fewer employees may be 
affected by the proposals made in this Further Notice. We have 
therefore included small incumbent LECs in this RFA analysis, although 
we emphasize that this RFA action has no effect on the Commission's 
analyses and determinations in other, non-RFA contexts.

Description of Projected Reporting, Recordkeeping, and Other Compliance 
Requirements

    None.

Steps Taken To Minimize Significant Economic Impact on Small Entities, 
and Significant Alternatives Considered

    The RFA requires an agency to describe any significant 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 and 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 part thereof, for small 
entities.
    As described above, more than fifteen years have elapsed since the 
imposition of the freeze, thus, we are seeking comment on the impact of 
a further extension of the freeze. We seek comment on the effects our 
proposals would have on small entities, and whether any rules that we 
adopt should apply differently to small entities. We direct commenters 
to consider the costs and burdens of an extension on small incumbent 
LECs and whether the extension would disproportionately affect specific 
types of carriers or ratepayers.
    We believe that implementation of the proposed freeze extension 
would ease the administrative burden of regulatory compliance for LECs, 
including small incumbent LECs. The freeze has eliminated the need for 
all incumbent LECs, including incumbent LECs with 1,500 employees or 
fewer, to complete certain annual studies formerly required by the 
Commission's rules. If an extension of the freeze can be said to have 
any effect under the RFA, it is to reduce a regulatory compliance 
burden for small incumbent LECs by relieving these carriers from the 
burden of preparing separations studies and providing these carriers 
with greater regulatory certainty.

Federal Rules That May Duplicate, Overlap, or Conflict With the 
Proposed Rules

    None.
    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 Further Notice indicated on the first 
page of this document. The Commission's Consumer and Governmental 
Affairs Bureau, Reference Information Center, will send a copy of this 
Further Notice of Proposed Rulemaking, including the IRFA, to the Chief 
Counsel for Advocacy of the Small Business Administration (SBA).
    For further information regarding this proceeding, contact Rhonda 
J. Lien, Pricing Policy Division, Wireline Competition Bureau, at (202) 
418-1520, or [email protected].

Ordering Clauses

    Accordingly, it is ordered that, pursuant to the authority 
contained in sections 1, 2, 4(i), 201-205, 215, 218, 220, and 410 of 
the Communications Act of 1934, as amended, 47 U.S.C. 151, 152, 154(i), 
201-205, 215, 218, 220, 410, this Further Notice of Proposed Rulemaking 
IS ADOPTED.
    It is further ordered that the Commission's Consumer and 
Governmental Affairs Bureau, Reference Information Center, SHALL SEND a 
copy of this Further Notice of Proposed Rulemaking, including the 
Initial Regulatory Flexibility Analysis, to the

[[Page 16155]]

Chief Counsel for Advocacy of the Small Business Administration.
    It is further ordered that, pursuant to sections 1.4(b)(1) and 
1.103(a) of the Commission's rules, 47 CFR 1.4(b)(1), 1.103(a), this 
Further Notice of Proposed Rulemaking shall be effective on the date of 
publication in the Federal Register.

List of Subjects

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

Federal Communications Commission.
Marlene H. Dortch,
Secretary, Office of the Secretary.
[FR Doc. 2017-06532 Filed 3-31-17; 8:45 am]
BILLING CODE 6712-01-P



                                                    16152                     Federal Register / Vol. 82, No. 62 / Monday, April 3, 2017 / Proposed Rules

                                                    13771 requires an agency, unless                        effective date for the final rule                     Notice of Proposed Rulemaking released
                                                    prohibited by law, to identify at least                 published on January 13, 2017 (82 FR                  on March 20, 2017. The full text of this
                                                    two existing regulations to be repealed                 4504) and to further amend 42 CFR                     document may be accessed at the
                                                    when the agency publicly proposes for                   chapter IV as set forth below:                        following internet address: https://
                                                    notice and comment or otherwise                                                                               apps.fcc.gov/edocs_public/attachmatch/
                                                    promulgates a new regulation. In                        PART 484—HOME HEALTH SERVICES                         FCC-17-22A1.docx.
                                                    furtherance of this requirement, section                                                                         Pursuant to sections 1.415 and 1.419
                                                    2(c) of Executive Order 13771 requires                  ■ 1. The authority citation for part 484              of the Commission’s rules, 47 CFR
                                                    that the new incremental costs                          continues to read as follows:                         1.415, 1.419, interested parties may file
                                                    associated with new regulations shall, to                 Authority: Secs. 1102 and 1871 of the               comments and reply comments on or
                                                    the extent permitted by law, be offset by               Social Security Act (42 U.S.C. 1302 and               before the dates indicated on the first
                                                    the elimination of existing costs                       1395(hh)) unless otherwise indicated.                 page of this document. Comments may
                                                    associated with at least two prior                                                                            be filed using the Commission’s
                                                                                                            § 484.65    [Amend]
                                                    regulations. OMB’s interim guidance,                                                                          Electronic Comment Filing System
                                                                                                            ■ 2. In § 484.65, amend paragraph (d) by              (ECFS). See Electronic Filing of
                                                    issued on February 2, 2017, https://                    removing the date ‘‘January 13, 2018’’
                                                    www.whitehouse.gov/the-press-office/                                                                          Documents in Rulemaking Proceedings,
                                                                                                            and adding in its place ‘‘July 13, 2018’’.            63 FR 24121 (1998). Section 1.415(b) of
                                                    2017/02/02/interim-guidance-
                                                    implementing-section-2-executive-order-                 § 484.115    [Amend]                                  the Commission’s rules does not
                                                    january-30-2017, explains that for Fiscal               ■  3. In § 484.115, amend paragraphs                  establish a minimum time period for the
                                                    Year 2017 the above requirements only                   (a)(1) and (2) by removing the date ‘‘July            Commission to receive comments on
                                                    apply to each new ‘‘significant                                                                               proposed rules. Rather, the rule states
                                                                                                            13, 2017’’ and adding in its place
                                                    regulatory action that imposes costs.’’ It                                                                    that a ‘‘reasonable time will be provided
                                                                                                            ‘‘January 13, 2018’’.
                                                    has been determined that this proposed                                                                        for submission of comments.’’ In this
                                                                                                              Dated: March 28, 2017.                              proceeding, because the current
                                                    rule is not a ‘‘significant regulatory
                                                                                                            Seema Verma,                                          separations freeze will otherwise expire
                                                    action that imposes costs’’ and thus
                                                    does not trigger the above requirements                 Administrator, Centers for Medicare &                 on June 30, 2017, and because we
                                                                                                            Medicaid Services.                                    expect our proposal to extend the freeze
                                                    of Executive Order 13771.
                                                       In accordance with the provisions of                   Dated: March 28, 2017.                              will not generate controversy, we find
                                                    Executive Order 12866, this regulation                  Thomas E. Price,                                      that it is reasonable to allow 14 days
                                                    was reviewed by the Office of                           Secretary, Department of Health and Human             after Federal Register publication for
                                                    Management and Budget.                                  Services.                                             the filing of comments and seven days
                                                                                                            [FR Doc. 2017–06540 Filed 3–31–17; 8:45 am]           after that for the filing of any reply
                                                    List of Subjects                                                                                              comments.
                                                                                                            BILLING CODE 4120–01–P
                                                    42 CFR Part 409                                                                                                  D Electronic Filers: Comments may be
                                                                                                                                                                  filed electronically using the Internet by
                                                      Health facilities, Medicare.                                                                                accessing the ECFS: http://
                                                                                                            FEDERAL COMMUNICATIONS                                fjallfoss.fcc.gov/ecfs2/.
                                                    42 CFR Part 410                                         COMMISSION                                               D Paper Filers: Parties who choose to
                                                      Health facilities, Health professions,                                                                      file by paper must file an original and
                                                    Kidney diseases, Laboratories,                          47 CFR Part 36
                                                                                                                                                                  one copy of each filing. If more than one
                                                    Medicare, Reporting and recordkeeping                   [CC Docket No. 80–286; FCC 17–22]                     docket or rulemaking number appears in
                                                    requirements, Rural areas, X-rays.                                                                            the caption of this proceeding, filers
                                                                                                            Jurisdictional Separations and Referral               must submit two additional copies for
                                                    42 CFR Part 418
                                                                                                            to the Federal-State Joint Board                      each additional docket or rulemaking
                                                      Health facilities, Hospice care,
                                                                                                            AGENCY:  Federal Communications                       number.
                                                    Medicare, Reporting and recordkeeping                                                                            D Filings can be sent by hand or
                                                    requirements.                                           Commission.
                                                                                                                                                                  messenger delivery, by commercial
                                                                                                            ACTION: Proposed rule.
                                                    42 CFR Part 440                                                                                               overnight courier, or by first-class or
                                                      Grant programs—health, Medicaid.                      SUMMARY:   The Commission proposes a                  overnight U.S. Postal Service mail. All
                                                                                                            further eighteen month extension of the               filings must be addressed to the
                                                    42 CFR Part 484                                         current freeze of category relationships              Commission’s Secretary, Office of the
                                                      Health facilities, Health professions,                and allocation factors for price cap                  Secretary, Federal Communications
                                                    Medicare, Reporting and recordkeeping                   carriers and all allocation factors for               Commission.
                                                    requirements.                                           rate-of-return carriers and seeks                        D All hand-delivered or messenger-
                                                                                                            comment on several issues regarding the               delivered paper filings for the
                                                    42 CFR Part 485                                         potential effects of the freeze extension.            Commission’s Secretary must be
                                                      Grant programs—health, Health                         DATES: Comments are due on or before
                                                                                                                                                                  delivered to FCC Headquarters at 445
                                                    facilities, Medicaid, Medicare,                         April 17, 2017. Reply comments are due                12th St. SW., Room TW–A325,
                                                    Reporting and recordkeeping                             on or before April 24, 2017.                          Washington, DC 20554. The filing hours
                                                    requirements.                                                                                                 are 8:00 a.m. to 7:00 p.m. All hand
                                                                                                            ADDRESSES: Federal Communications
                                                                                                                                                                  deliveries must be held together with
mstockstill on DSK3G9T082PROD with PROPOSALS




                                                    42 CFR Part 488                                         Commission, 445 12th St. SW.,                         rubber bands or fasteners. Any
                                                      Administrative practice and                           Washington, DC 20554.                                 envelopes and boxes must be disposed
                                                    procedure, Health facilities, Medicare,                 FOR FURTHER INFORMATION CONTACT:                      of before entering the building.
                                                    Reporting and recordkeeping                             Rhonda Lien, Wireline Competition                        D Commercial overnight mail (other
                                                    requirements.                                           Bureau, Pricing Policy Division at (202)              than U.S. Postal Service Express Mail
                                                      For the reasons set forth in the                      418–1540 or at rhonda.lien@fcc.gov.                   and Priority Mail) must be sent to 9300
                                                    preamble, the Centers for Medicare &                    SUPPLEMENTARY INFORMATION: This a                     East Hampton Drive, Capitol Heights,
                                                    Medicaid Services proposes to delay the                 summary of the Commission Further                     MD 20743.


                                               VerDate Sep<11>2014   16:05 Mar 31, 2017   Jkt 241001   PO 00000   Frm 00015   Fmt 4702   Sfmt 4702   E:\FR\FM\03APP1.SGM   03APP1


                                                                              Federal Register / Vol. 82, No. 62 / Monday, April 3, 2017 / Proposed Rules                                          16153

                                                       D U.S. Postal Service first-class,                   our prior freezes, we propose that the                would have on small entities, and
                                                    Express, and Priority mail must be                      freeze extension be implemented as                    whether any rules that we adopt should
                                                    addressed to 445 12th Street SW.,                       described in the 2001 Separations                     apply differently to small entities. We
                                                    Washington, DC 20554.                                   Freeze Order. Specifically, we propose                seek comment on the costs and burdens
                                                       Accessible Formats. To request                       to direct rate-of-return ILECs to continue            of an extension on small ILECs and
                                                    materials in accessible formats for                     to use the same frozen jurisdictional                 whether the extension would
                                                    people with disabilities (Braille, large                allocation factors, and the same frozen               disproportionately affect specific types
                                                    print, electronic files, audio format),                 category relationships if they had opted              of carriers or ratepayers.
                                                    send an email to fcc504@fcc.gov or call                 previously to freeze those relationships.                The Joint Board has a pending referral
                                                    the Consumer & Governmental Affairs                     We seek comment on this proposal. Are                 to consider broadly any appropriate
                                                    Bureau at (202) 418–0530 (voice), (202)                 there adjustments we should make on a                 changes to the separations rules. We
                                                    418–0432 (tty).                                         going-forward basis to the current                    will evaluate whether other discrete
                                                       Ex Parte Presentations. The                          freeze?                                               issues should be referred to the Joint
                                                    proceeding this Further Notice initiates                   The policy changes adopted by the                  Board. We anticipate that the Joint
                                                    shall be treated as a ‘‘permit-but-                     Commission in recent years, particularly              Board will meet in July 2017 to consider
                                                    disclose’’ proceeding in accordance                     those arising from the Commission’s                   reform of the separations process. We
                                                    with the Commission’s ex parte rules.                   fundamental reform of the high cost                   expect to receive the Joint Board’s
                                                    Persons making ex parte presentations                   universal service support program and                 recommendations for comprehensive
                                                    must file a copy of any written                         intercarrier compensation systems in                  separations reform within nine months
                                                    presentation or a memorandum                            the USF/ICC Transformation Order and                  thereafter, that is, in April 2018.
                                                    summarizing any oral presentation                       from our recent changes to the Part 32
                                                    within two business days after the                                                                            Procedureal Matters
                                                                                                            accounting rules, will significantly
                                                    presentation (unless a different deadline               affect the Commission’s and the Joint                   Paperwork Reduction Act. This
                                                    applicable to the Sunshine period                       Board’s analysis of interim and                       document does not contain proposed
                                                    applies). Persons making oral ex parte                  comprehensive separations reform. We                  information collection(s) subject to the
                                                    presentations are reminded that                         believe that extending the freeze for                 Paperwork Reduction Act of 1995
                                                    memoranda summarizing the                               eighteen months will allow the Joint                  (PRA), Public Law 104–13. In addition,
                                                    presentation must (1) list all persons                  Board sufficient time to consider the                 therefore, it does not contain any new
                                                    attending or otherwise participating in                 impact of our recent reforms on the                   or modified information collection
                                                    the meeting at which the ex parte                       separations rules and will allow us the               burden for small business concerns with
                                                    presentation was made, and (2)                          opportunity to fashion a Notice of                    fewer than 25 employees, pursuant to
                                                    summarize all data presented and                        Proposed Rulemaking that benefits from                the Small Business Paperwork Relief
                                                    arguments made during the                               the Joint Board’s consideration of how                Act of 2002, Public Law 107–198, see 44
                                                    presentation. If the presentation                       best to approach separations reform. We               U.S.C. 3506(c)(4).
                                                    consisted in whole or in part of the                    seek comment on this proposed path                      Initial Regulatory Flexibility Act
                                                    presentation of data or arguments                       forward, and invite commenters to                     Analysis. As required by the Regulatory
                                                    already reflected in the presenter’s                    identify alternative approaches.                      Flexibility Act of 1980 (RFA), the
                                                    written comments, memoranda or other                       One significant benefit of extending               Commission has prepared an Initial
                                                    filings in the proceeding, the presenter                the freeze while we undertake reform                  Regulatory Flexibility Analysis (IRFA)
                                                    may provide citations to such data or                   will be to provide stability and                      for this Further Notice of Proposed
                                                    arguments in his or her prior comments,                 regulatory certainty for ILECs during the             Rulemaking, of the possible significant
                                                    memoranda, or other filings (specifying                 reform process. As the Commission has                 economic impact on small entities of the
                                                    the relevant page and/or paragraph                      observed, if the frozen category                      policies and rules addressed in this
                                                    numbers where such data or arguments                    relationships and allocation factors were             document.
                                                    can be found) in lieu of summarizing                    unfrozen, ILECs would be required to
                                                                                                                                                                  Need for, and Objectives of, the
                                                    them in the memorandum. Documents                       reinstitute their separations processes
                                                                                                                                                                  Proposed Rules
                                                    shown or given to Commission staff                      that have not been used since the
                                                    during ex parte meetings are deemed to                  inception of the freeze almost sixteen                   In the 1997 Separations Notice, the
                                                    be written ex parte presentations and                   years ago. Reinstating these                          Commission noted that the network
                                                    must be filed consistent with rule                      requirements would require substantial                infrastructure by that time had become
                                                    1.1206(b). In proceedings governed by                   training and investment. Moreover,                    vastly different from the network and
                                                    rule 1.49(f) or for which the                           given the significant changes in                      services used to define the cost
                                                    Commission has made available a                         technologies and investment decisions,                categories appearing in the
                                                    method of electronic filing, written ex                 as well as changes in regulatory                      Commission’s Part 36 jurisdictional
                                                    parte presentations and memoranda                       approaches at both the state and federal              separations rules, and that the
                                                    summarizing oral ex parte                               levels, the existing separations rules are            separations process codified in Part 36
                                                    presentations, and all attachments                      likely outdated. We anticipate that                   was developed during a time when
                                                    thereto, must be filed through the                      extending the jurisdictional separations              common carrier regulation presumed
                                                    electronic comment filing system                        freeze would provide rate-of-return                   that interstate and intrastate
                                                    available for that proceeding, and must                 ILECs with certainty in the near future               telecommunications service must be
                                                    be filed in their native format (e.g., .doc,            as they continue apportioning costs as                provided through a regulated monopoly.
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                                                    .xml, .ppt, searchable .pdf). Participants              they have since the 2001 Separations                  Thus, the Commission initiated a
                                                    in this proceeding should familiarize                   Freeze Order, and would be preferable                 proceeding with the goal of reviewing
                                                    themselves with the Commission’s ex                     to re-imposing the burden of the                      comprehensively the Commission’s Part
                                                    parte rules.                                            separations rules. We seek comment on                 36 procedures to ensure that they meet
                                                       We propose to extend the existing                    these on other benefits or drawbacks to               the objectives of the
                                                    separations freeze for an additional                    a continued freeze.                                   Telecommunications Act of 1996 (1996
                                                    eighteen months while we work to                           We also seek comment on the effect                 Act). The Commission sought comment
                                                    reform the separations rules. As with                   that our proposal to extend the freeze                on the extent to which legislative


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                                                    16154                     Federal Register / Vol. 82, No. 62 / Monday, April 3, 2017 / Proposed Rules

                                                    changes, technological changes, and                     incumbent LECs reported that they were                would have on small entities, and
                                                    market changes might warrant                            engaged in the provision of local                     whether any rules that we adopt should
                                                    comprehensive reform of the                             exchange services. Of these 1,307                     apply differently to small entities. We
                                                    separations process. More than eighteen                 carriers, an estimated 1,006 have 1,500               direct commenters to consider the costs
                                                    years have elapsed since the closing of                 or fewer employees and 301 have more                  and burdens of an extension on small
                                                    the comment cycle on the 1997                           than 1,500 employees. Consequently,                   incumbent LECs and whether the
                                                    Separations Notice, and more than                       the Commission estimates that most                    extension would disproportionately
                                                    fifteen years have elapsed since the                    incumbent LECs are small entities that                affect specific types of carriers or
                                                    imposition of the freeze. The industry                  may be affected by the rules and                      ratepayers.
                                                    has experienced myriad changes during                   policies adopted herein.                                 We believe that implementation of the
                                                    that time, including reform of universal                   We have included small incumbent                   proposed freeze extension would ease
                                                    service and intercarrier compensation;                  LECs in this RFA analysis. As noted                   the administrative burden of regulatory
                                                    therefore, we ask for comment on the                    above, a ‘‘small business’’ under the                 compliance for LECs, including small
                                                    impact of a further extension of the                    RFA is one that, inter alia, meets the                incumbent LECs. The freeze has
                                                    freeze. The purpose of the proposed                     pertinent small business size standard                eliminated the need for all incumbent
                                                    extension of the freeze is to ensure that               (e.g., a telephone communications                     LECs, including incumbent LECs with
                                                    the Commission’s separations rules                      business having 1,500 or fewer                        1,500 employees or fewer, to complete
                                                    meet the objectives of the 1996 Act, and                employees), and ‘‘is not dominant in its              certain annual studies formerly required
                                                    to allow the Commission additional                      field of operation.’’ The SBA’s Office of             by the Commission’s rules. If an
                                                    time to consider changes that may need                  Advocacy contends that, for RFA                       extension of the freeze can be said to
                                                    to be made to the separations process in                purposes, small incumbent LECs are not                have any effect under the RFA, it is to
                                                    light of changes in the law, technology,                dominant in their field of operation                  reduce a regulatory compliance burden
                                                    and market structure of the                             because any such dominance is not                     for small incumbent LECs by relieving
                                                    telecommunications industry.                            ‘‘national’’ in scope. Because our                    these carriers from the burden of
                                                                                                            proposals concerning the Part 36                      preparing separations studies and
                                                    Legal Basis                                             separations process will affect all                   providing these carriers with greater
                                                      The legal basis for the Further Notice                incumbent LECs providing interstate                   regulatory certainty.
                                                    of Proposed Rulemaking is contained in                  services, some entities employing 1,500
                                                    sections 1, 2, 4(i), 201–205, 215, 218,                 or fewer employees may be affected by                 Federal Rules That May Duplicate,
                                                    220, and 410 of the Communications                      the proposals made in this Further                    Overlap, or Conflict With the Proposed
                                                    Act of 1934, as amended.                                Notice. We have therefore included                    Rules
                                                    Description and Estimate of the Number                  small incumbent LECs in this RFA                        None.
                                                    of Small Entities to Which Rules May                    analysis, although we emphasize that                    Written public comments are
                                                    Apply                                                   this RFA action has no effect on the                  requested on this IRFA. Comments must
                                                                                                            Commission’s analyses and                             be identified as responses to the IRFA
                                                       The RFA directs agencies to provide                  determinations in other, non-RFA
                                                    a description of, and, where feasible, an                                                                     and must be filed by the deadlines for
                                                                                                            contexts.                                             comments on the Further Notice
                                                    estimate of the number of small entities
                                                    that may be affected by the proposed                    Description of Projected Reporting,                   indicated on the first page of this
                                                    rules, if adopted. The RFA generally                    Recordkeeping, and Other Compliance                   document. The Commission’s Consumer
                                                    defines the term ‘‘small entity’’ as                    Requirements                                          and Governmental Affairs Bureau,
                                                    having the same meaning as the terms                      None.                                               Reference Information Center, will send
                                                    ‘‘small business,’’ ‘‘small organization,’’                                                                   a copy of this Further Notice of
                                                    and ‘‘small governmental jurisdiction.’’                Steps Taken To Minimize Significant                   Proposed Rulemaking, including the
                                                    In addition, the term ‘‘small business’’                Economic Impact on Small Entities, and                IRFA, to the Chief Counsel for Advocacy
                                                    has the same meaning as the term                        Significant Alternatives Considered                   of the Small Business Administration
                                                    ‘‘small business concern’’ under the                       The RFA requires an agency to                      (SBA).
                                                    Small Business Act. A ‘‘small business                  describe any significant alternatives that              For further information regarding this
                                                    concern’’ is one which: (1) Is                          it has considered in reaching its                     proceeding, contact Rhonda J. Lien,
                                                    independently owned and operated; (2)                   proposed approach, which may include                  Pricing Policy Division, Wireline
                                                    is not dominant in its field of operation;              the following four alternatives (among                Competition Bureau, at (202) 418–1520,
                                                    and (3) satisfies any additional criteria               others): (1) The establishment of                     or rhonda.lien@fcc.gov.
                                                    established by the Small Business                       differing compliance and reporting                    Ordering Clauses
                                                    Administration (SBA). Nationwide,                       requirements or timetables that take into
                                                    there are a total of approximately 27.9                 account the resources available to small                Accordingly, it is ordered that,
                                                    million small businesses, according to                  entities; (2) the clarification,                      pursuant to the authority contained in
                                                    the SBA.                                                consolidation, or simplification of                   sections 1, 2, 4(i), 201–205, 215, 218,
                                                       Incumbent Local Exchange Carriers                    compliance or reporting requirements                  220, and 410 of the Communications
                                                    (Incumbent LECs). Neither the                           under the rule for small entities; (3) the            Act of 1934, as amended, 47 U.S.C. 151,
                                                    Commission nor the SBA has developed                    use of performance, rather than design,               152, 154(i), 201–205, 215, 218, 220, 410,
                                                    a small business size standard                          standards; and (4) an exemption from                  this Further Notice of Proposed
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                                                    specifically for providers of incumbent                 coverage of the rule, or part thereof, for            Rulemaking IS ADOPTED.
                                                    local exchange services. The closest                    small entities.                                         It is further ordered that the
                                                    applicable size standard under the SBA                     As described above, more than fifteen              Commission’s Consumer and
                                                    rules is for Wired Telecommunications                   years have elapsed since the imposition               Governmental Affairs Bureau, Reference
                                                    Carriers. Under the SBA definition, a                   of the freeze, thus, we are seeking                   Information Center, SHALL SEND a
                                                    carrier is small if it has 1,500 or fewer               comment on the impact of a further                    copy of this Further Notice of Proposed
                                                    employees. According to the FCC’s                       extension of the freeze. We seek                      Rulemaking, including the Initial
                                                    Telephone Trends Report data, 1,307                     comment on the effects our proposals                  Regulatory Flexibility Analysis, to the


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                                                                              Federal Register / Vol. 82, No. 62 / Monday, April 3, 2017 / Proposed Rules                                                 16155

                                                    Chief Counsel for Advocacy of the Small                 date of publication in the Federal                    requirements; Telephone; Uniform
                                                    Business Administration.                                Register.                                             System of Accounts.
                                                      It is further ordered that, pursuant to               List of Subjects                                      Federal Communications Commission.
                                                    sections 1.4(b)(1) and 1.103(a) of the                                                                        Marlene H. Dortch,
                                                    Commission’s rules, 47 CFR 1.4(b)(1),                     Communications common carriers,                     Secretary, Office of the Secretary.
                                                    1.103(a), this Further Notice of Proposed               Reporting and recordkeeping                           [FR Doc. 2017–06532 Filed 3–31–17; 8:45 am]
                                                    Rulemaking shall be effective on the                                                                          BILLING CODE 6712–01–P
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Document Created: 2017-04-01 09:36:33
Document Modified: 2017-04-01 09:36:33
CategoryRegulatory Information
CollectionFederal Register
sudoc ClassAE 2.7:
GS 4.107:
AE 2.106:
PublisherOffice of the Federal Register, National Archives and Records Administration
SectionProposed Rules
ActionProposed rule.
DatesComments are due on or before April 17, 2017. Reply comments are due on or before April 24, 2017.
ContactRhonda Lien, Wireline Competition Bureau, Pricing Policy Division at (202) 418-1540 or at [email protected]
FR Citation82 FR 16152 

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