82_FR_26762 82 FR 26653 - Connect America Fund

82 FR 26653 - Connect America Fund

FEDERAL COMMUNICATIONS COMMISSION

Federal Register Volume 82, Issue 109 (June 8, 2017)

Page Range26653-26656
FR Document2017-11848

In this document, the Federal Communications Commission (Commission) seeks comment on whether the Commission should change the current rate floor methodology or eliminate the rate floor and its accompanying reporting obligation.

Federal Register, Volume 82 Issue 109 (Thursday, June 8, 2017)
[Federal Register Volume 82, Number 109 (Thursday, June 8, 2017)]
[Proposed Rules]
[Pages 26653-26656]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2017-11848]


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FEDERAL COMMUNICATIONS COMMISSION

47 CFR Part 54

[WC Docket No. 10-90; FCC 17-61]


Connect America Fund

AGENCY: Federal Communications Commission.

ACTION: Proposed rule.

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SUMMARY: In this document, the Federal Communications Commission 
(Commission) seeks comment on whether the Commission should change the 
current rate floor methodology or eliminate the rate floor and its 
accompanying reporting obligation.

DATES: Comments are due on or before July 10, 2017 and reply comments 
are due on or before July 24, 2017. If you anticipate that you will be 
submitting comments, but find it difficult to do so within the period 
of time allowed by this document, you should advise the contact listed 
below as soon as possible.

ADDRESSES: You may submit comments, identified by WC Docket No. 10-90, 
by any of the following methods:
     Federal eRulemaking Portal: http://www.regulations.gov. 
Follow the instructions for submitting comments.
     Federal Communications Commission's Web site: http://fjallfoss.fcc.gov/ecfs2/. Electronic Filers: Comments may be filed 
electronically using the Internet by accessing the ECFS: http://fjallfoss.fcc.gov/ecfs2/.

[[Page 26654]]

    [ssquf] Paper Filers: Parties who choose to file by paper must file 
an original and one copy of each filing.
     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.
    [cir] 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.
    [ssquf] U.S. Postal Service first-class, Express, and Priority mail 
must be addressed to 445 12th St. SW., Washington, DC 20554.
     People with Disabilities: Contact the FCC to request 
reasonable accommodations (accessible format documents, sign language 
interpreters, CART, etc.) by email: [email protected] or phone: (202) 418-
0530 or TTY: (202) 418-0432.

FOR FURTHER INFORMATION CONTACT: Alexander Minard, Wireline Competition 
Bureau, (202) 418-7400 or TTY: (202) 418-0484.

SUPPLEMENTARY INFORMATION: This is a synopsis of the Commission's 
Notice of Proposed Rulemaking (NPRM) in WC Docket No. 10-90; FCC 17-61, 
adopted on May 18, 2017 and released on May 19, 2017. The full text of 
this document is available for public inspection during regular 
business hours in the FCC Reference Center, Room CY-A257, 445 12th St. 
SW., Washington, DC 20554 or at the following Internet address: https://www.fcc.gov/document/voice-rate-floor-nprm-and-order.

I. Introduction

    1. In 2011, the Commission adopted a rule intended to ensure that 
consumers across the country are not subsidizing the cost of voice 
service to rural customers whose rates are below a set minimum rate. 
This requirement is known as the ``rate floor.'' If a carrier chooses 
to charge its customers less than the rate floor amount for voice 
service, the difference between the amount charged and the rate floor 
is deducted from the amount of support that carrier receives through 
the Universal Service Fund (USF). Since July 1, 2016, this minimum 
amount has been $18, and the Commission previously scheduled increases 
to $20 on July 1, 2017 and $22 on July 1, 2018. After several years of 
experience with it, the Commission now revisits it to ensure the 
Commission's policies continue to further its statutory obligation to 
ensure ``[q]uality services . . . available at just, reasonable, and 
affordable rates.'' The Commission accordingly seeks comment on whether 
it should make any changes to the current methodology or eliminate the 
rate floor and its accompanying reporting obligation.

II. Discussion

    2. The Commission seeks comment on whether it should change the 
current methodology or eliminate the rate floor and its accompanying 
reporting obligation.
    3. In adopting the rate floor, the Commission determined that it is 
``inappropriate to provide federal high-cost support to subsidize local 
rates beyond what is necessary to ensure reasonable comparability.'' 
The Commission further stated that ``[d]oing so places an undue burden 
on the Fund and consumers that pay into it'' and expressed the view 
that it would not be equitable ``for consumers across the country to 
subsidize the cost of service for some consumers that pay local service 
rates that are significantly lower than the national urban average.''
    4. On the other hand, stakeholders ranging from the AARP to the 
National Tribal Telecommunications Association, from the National 
Consumer Law Center to small, medium, and large rural telephone 
companies, have raised concerns that the rate floor is inconsistent 
with the direction of section 254(b) of the Communications Act to 
advance universal service in rural, insular, and high cost areas of the 
country while ensuring that rates are just, reasonable, and affordable. 
These parties have argued that the rule makes basic voice service in 
rural areas less affordable, does not make voice service available at 
reasonably comparable rates to urban areas, and does not further the 
Commission's objective to ``minimize the universal service contribution 
burden on consumers and businesses.'' In that same vein, no one 
disputes that the rate floor has increased rates for voice service in 
rural areas, despite the Commission's goal to ``preserve and advance 
universal availability of voice service.'' Some parties have also 
asserted that price increases negatively affect rural consumers and 
``could lead to some customers losing affordable access to basic 
service entirely.'' Others have noted that the increases caused by the 
rate floor rule could have a particularly deleterious effect on older 
Americans on fixed incomes and customers in Tribal areas.
    5. In addition, some parties have raised concerns about the use of 
a single, national rate floor. Some have argued that incomes are often 
lower in rural areas and the rate floor incorrectly ``assumes that 
what's affordable in our country's largest cities must be affordable in 
our small towns.'' Others have suggested that the Commission should 
consider ``whether more localized survey data would better serve the 
goal of ensuring reasonably comparable service at reasonably comparable 
rates, and what flexibility the states need to serve users under the 
particular circumstances of each state.'' The Commission observes that 
nothing in the statute requires adoption of a single, national rate 
floor.
    6. Accordingly, the Commission seeks comment on whether changes to 
the current methodology are needed to address these concerns. If so, 
what changes should be made? Should the Commission allow carriers to 
charge a rate that is one standard deviation below the average urban 
rate? Should the Commission replace the single, national rate floor 
with state or regional rate floors? Are there other ideas the 
Commission should consider? Alternatively, should the Commission 
eliminate the rate floor altogether?
    7. As part of the Commission's consideration of possible changes to 
the methodology or elimination of the rate floor, it seeks comment on 
the intersection of the rate floor with state ratemaking and state 
universal service funds. The Commission also notes that states have 
historically regulated rates for local telephone service. Indeed, the 
Communications Act makes clear that ``nothing in this [Act] shall be 
construed to apply, or to give the Commission jurisdiction,'' over 
rates for ``telephone exchange service,'' i.e., local service. States 
have historically relied on a variety of regulating methods (including 
the use of state universal service funds) to ensure just and reasonable 
rates for that service--and those methods already by law must not 
``rely on or burden Federal universal service support mechanisms.'' The 
Commission seeks comment on these arguments. The Commission also seeks 
comment on the Tenth Circuit's suggestion that ``the FCC `remains 
obligated to create some inducement . . . for the states to assist in 
implementing the goals of universal

[[Page 26655]]

service,' i.e., in this case to ensure that rural rates are not 
artificially low.''
    8. More generally, the Commission seeks comment on whether the rate 
floor is meeting the intended purposes. One party has argued that ``an 
increase in the local rate floor does not impact payment into the 
Universal Service Fund or the budget of the fund, but it does affect 
consumer choice, penalizes incumbent wireline providers and ultimately 
broadband deployment.'' On the other hand, the Commission notes that 
the Commission last year adopted a budget control mechanism for 
carriers within the legacy rate-of-return system, including those 
receiving high-cost loop support. As such, any funding reductions from 
the rate floor are generally redistributed to other carriers to 
mitigate the impact of the budget control mechanism, not returned to 
ratepayers as contributions relief. The Commission notes that the rate 
floor both reduces total high-cost loop support (HCLS) support and 
reduces the budget impact on all rate-of-return carriers for HCLS and 
Connect America Fund--Broadband Loop Support (CAF-BLS). Specifically, 
based on the data used to calculate the recently published rate-of-
return budget control mechanism, the Commission estimates that the rate 
floor effectively reduced total HCLS by 1.3 percent and effectively 
increased CAF-BLS by 0.9 percent. The Commission seeks comment on the 
impact of this redistribution on broadband deployment, both with 
respect to carriers receiving higher total USF support and those 
impacted directly by the rate floor and thus receiving lower total USF 
support. The Commission also seeks comment on these arguments 
generally.
    9. Finally, the Commission seeks comment on ways to reduce ongoing 
administrative and compliance costs on rural telephone companies, state 
commissions, the Commission, the National Exchange Carrier Association, 
and the Universal Service Administrative Company. Each year, federal 
staff must calculate a new rate floor, which rural telephone companies 
must then seek permission from their state commissions to implement, 
with oversight by several entities to ensure that rural rates are 
sufficiently high and universal service payments are appropriately 
withheld. Incumbent local exchange carriers (ILECs) subject to the rate 
floor must complete yet another form specifying each of the carrier's 
rates that fall below the rate floor and the number of lines for each 
rate specified. Stakeholders have previously detailed impediments to 
implementation in a number of states and have explained that carriers 
require time after a rate floor increase to pursue and implement rate 
increases. The Commission seeks comment on these arguments and whether 
modifying or eliminating the rate floor and the accompanying reporting 
obligations would reduce the complexity of the high-cost program and 
minimize the associated administrative and compliance costs that have 
stemmed from implementation of the rate floor. Alternatively, the 
Commission seeks comment on whether updating the rate floor on a 
biennial or triennial basis would accomplish similar goals while 
decreasing administrative burdens. More generally, the Commission seeks 
comment on the costs and benefits of the rate floor, and specifically 
on a cost-benefit analysis of the rule.

III. Procedural Matters

    10. This document proposes modified information collection 
requirements subject to the PRA. It will be submitted to the Office of 
Management and Budget (OMB) for review under section 3507(d) of the 
PRA. As part of the Commission's continuing effort to reduce paperwork 
burdens, the Commission invites the general public and OMB to comment 
on the proposed information collection requirements contained in this 
document, as required by the PRA. In addition, pursuant to the Small 
Business Paperwork Relief Act, the Commission seeks specific comment on 
how it might further reduce the information collection burden for small 
business concerns with fewer than 25 employees. The Commission 
describes impacts that might affect small businesses, which includes 
most businesses with fewer than 25 employees, in the Initial Regulatory 
Flexibility Analysis (IRFA) below.
    11. In the NPRM, the Commission seeks comment on whether to modify 
or eliminate two rules: sections 54.313(h) and 54.318 of the 
Commission's rules. The Commission is seeking comment on whether it 
should modify or eliminate section 54.318, the rate floor rule, to 
better advance section 254 of the Commission's Act and the goals of the 
Commission's universal service reforms. Section 54.313(h) requires 
carriers to report on the number lines it serves with rates that fall 
below the rate floor. If the Commission modifies or eliminates the rate 
floor rule, there may be no need to for carriers report on rates that 
fall below the rate floor.
    12. The legal basis for any action that may be taken pursuant to 
this NPRM is contained in sections 201, 219, 220 and 254 of the 
Communications Act of 1934, as amended, 47 U.S.C. 201, 219, 220 and 
254.
    13. 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 (SBA). 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 
SBA.
    14. This NPRM seeks comment on changes to the Commission's rules, 
which, if adopted, will result in reduced information collection and 
reporting requirements for ILECs.
    15. In this NPRM, the Commission seeks public comment on modifying 
or eliminating sections 54.313(h) and 54.318 of the Commission's rules. 
Because the Commission actions here will likely result in reduced 
regulatory burdens, the Commission concludes that the changes on which 
it seeks comment will not result in any additional recordkeeping 
requirements for small entities.
    16. Permit-But-Disclose. The proceeding this NPRM 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

[[Page 26656]]

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.
    17. People with Disabilities. 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).

IV. Ordering Clauses

    18. Accordingly, it is ordered, pursuant to the authority contained 
in sections 201, 219, 220 and 254 of the Communications Act of 1934, as 
amended, 47 U.S.C. 201, 219, 220, 254, this Notice of Proposed 
Rulemaking and Order is adopted.

Federal Communications Commission.
Katura Jackson,
Federal Register Liaison Officer, Office of the Secretary.
[FR Doc. 2017-11848 Filed 6-7-17; 8:45 am]
 BILLING CODE 6712-01-P



                                                                               Federal Register / Vol. 82, No. 109 / Thursday, June 8, 2017 / Proposed Rules                                                26653

                                                      F. Benefits of the Rule                                 protect residents and alleviate many of                employees, and representatives of the
                                                         The proposed revisions in this rule                  the residents and advocates concerns                   Office of the State Long-Term Care
                                                      will maintain the requirements in the                   about the arbitration process.                         Ombudsman, in accordance with
                                                      2016 final rule that provide for                          In accordance with the provisions of                 § 483.10(k).
                                                      transparency in the arbitration process                 Executive Order 12866, this regulation                    (3) When the facility and a resident
                                                      for LTC residents. Specifically, we are                 was reviewed by the Office of                          resolve a dispute through arbitration, a
                                                      proposing to maintain that the                          Management and Budget. This proposed                   copy of the signed agreement for
                                                      agreement must be explained to the                      rule is not expected to lead to an action              binding arbitration and the arbitrator’s
                                                      resident or his or her representative in                subject to Executive Order 13771 (82 FR                final decision must be retained by the
                                                      a form and manner they understand and                   9339, February 3, 2017) because our                    facility for 5 years and be available for
                                                      that the resident acknowledges that he                  estimates indicate that its finalization               inspection upon request by CMS or its
                                                      or she understands the agreement. We                    would impose no more than de minimis                   designee.
                                                                                                              costs.                                                    (4) A notice regarding the use of
                                                      are also proposing to retain the
                                                                                                                                                                     agreements for binding arbitration must
                                                      requirement that the agreement must                     List of Subject in 42 CFR Part 483                     be posted in an area that is visible to
                                                      not contain any language that prohibits                   Grant programs-health, Health                        residents and visitors.
                                                      or discourages the resident or anyone                   facilities, Health professions, Health
                                                      else from communicating with federal,                                                                          *      *     *    *     *
                                                                                                              records, Medicaid, Medicare, Nursing
                                                      state, or local officials. This proposed                homes, Nutrition, Reporting and
                                                                                                                                                                       Dated: May 2, 2017.
                                                      rule will also increase transparency by                 recordkeeping requirements, Safety.                    Seema Verma,
                                                      adding a requirement that a facility                                                                           Administrator, Centers for Medicare &
                                                                                                                For the reasons set forth in the
                                                      must post a notice regarding its use of                                                                        Medicaid Services.
                                                                                                              preamble, the Centers for Medicare &
                                                      agreements for binding arbitration in an                                                                         Dated: May 4, 2017.
                                                                                                              Medicaid Services proposes to amend
                                                      area that is visible to residents and                                                                          Thomas E. Price,
                                                                                                              42 CFR chapter IV as set forth below:
                                                      visitors. With this increased                                                                                  Secretary, Department of Health and Human
                                                      transparency, we believe that many                      PART 483—REQUIREMENTS FOR                              Services.
                                                      stakeholder concerns regarding the                      STATES AND LONG TERM CARE                              [FR Doc. 2017–11883 Filed 6–5–17; 4:15 pm]
                                                      fairness of arbitration in LTC facilities               FACILITIES                                             BILLING CODE 4120–01–P
                                                      will be addressed. We believe this
                                                      proposal is consistent with our                         ■ 1. The authority citation for part 483
                                                      approach to eliminating unnecessary                     continues to read as follows:                          FEDERAL COMMUNICATIONS
                                                      burden on providers, and supports the                     Authority: Secs. 1102, 1128I, 1819, 1871             COMMISSION
                                                      resident’s right to make informed                       and 1919 of the Social Security Act (42
                                                      choices about important aspects of his                  U.S.C. 1302, 1320a–7, 1395i, 1395hh and                47 CFR Part 54
                                                      or her healthcare.                                      1396r).
                                                                                                                                                                     [WC Docket No. 10–90; FCC 17–61]
                                                      G. Alternatives Considered                              ■ 2. Section 483.70 is amended by
                                                         As discussed above, the district court               revising paragraph (n) to read as                      Connect America Fund
                                                      granted a preliminary injunction against                follows:
                                                                                                                                                                     AGENCY:  Federal Communications
                                                      enforcement of the prohibition against                  § 483.70    Administration.                            Commission.
                                                      pre-dispute agreement for arbitration.                  *       *    *     *     *                             ACTION: Proposed rule.
                                                      The district court’s opinion clearly                       (n) Binding arbitration agreements. If
                                                      indicated that the court questioned                     a facility chooses to ask a resident or his            SUMMARY:    In this document, the Federal
                                                      CMS’ authority to regulate arbitration.                 or her representative to enter into an                 Communications Commission
                                                      We considered proposing to remove all                   agreement for binding arbitration, the                 (Commission) seeks comment on
                                                      of the arbitration requirements and                     facility must comply with all of the                   whether the Commission should change
                                                      return to the position in the previous                  requirements in this section.                          the current rate floor methodology or
                                                      requirements, that is, the requirements                    (1) The facility must ensure that:                  eliminate the rate floor and its
                                                      would be silent on arbitration. However,                   (i) The agreement for binding                       accompanying reporting obligation.
                                                      we believe that transparency between                    arbitration is in plain language. If an                DATES: Comments are due on or before
                                                      LTC facilities and their residents in the               agreement for binding arbitration is a                 July 10, 2017 and reply comments are
                                                      arbitration process is essential, and that              condition of admission, it must be                     due on or before July 24, 2017. If you
                                                      CMS may properly exercise its statutory                 included in plain language in the                      anticipate that you will be submitting
                                                      authority to promote the health and                     admission contract;                                    comments, but find it difficult to do so
                                                      safety of LTC residents by requiring                       (ii) The agreement is explained to the              within the period of time allowed by
                                                      appropriate measures to ensure that LTC                 resident and his or her representative in              this document, you should advise the
                                                      residents receive adequate disclosures                  a form and manner that he or she                       contact listed below as soon as possible.
                                                      of their facility’s arbitration policies.               understands, including in a language                   ADDRESSES: You may submit comments,
                                                      Removing all of the provisions related to               the resident and his or her                            identified by WC Docket No. 10–90, by
                                                      arbitration would reduce transparency.
asabaliauskas on DSKBBXCHB2PROD with PROPOSALS




                                                                                                              representative understands; and                        any of the following methods:
                                                      Therefore, we have proposed retaining                      (iii) The resident acknowledges that                   • Federal eRulemaking Portal: http://
                                                      those requirements that provide for                     he or she understands the agreement.                   www.regulations.gov. Follow the
                                                      transparency and adding that the facility                  (2) The agreement must not contain                  instructions for submitting comments.
                                                      must post a notice regarding its use of                 any language that prohibits or                            • Federal Communications
                                                      arbitration in an area that is visible to               discourages the resident or anyone else                Commission’s Web site: http://
                                                      residents and visitors. We believe the                  from communicating with federal, state,                fjallfoss.fcc.gov/ecfs2/. Electronic Filers:
                                                      requirements we are proposing to retain,                or local officials, including but not                  Comments may be filed electronically
                                                      as well as the proposed revisions, will                 limited to, federal and state surveyors,               using the Internet by accessing the
                                                      provide sufficient transparency to                      other federal or state health department               ECFS: http://fjallfoss.fcc.gov/ecfs2/.


                                                 VerDate Sep<11>2014   16:21 Jun 07, 2017   Jkt 241001   PO 00000   Frm 00049   Fmt 4702   Sfmt 4702   E:\FR\FM\08JNP1.SGM   08JNP1


                                                      26654                    Federal Register / Vol. 82, No. 109 / Thursday, June 8, 2017 / Proposed Rules

                                                         D Paper Filers: Parties who choose to                deducted from the amount of support                    affect rural consumers and ‘‘could lead
                                                      file by paper must file an original and                 that carrier receives through the                      to some customers losing affordable
                                                      one copy of each filing.                                Universal Service Fund (USF). Since                    access to basic service entirely.’’ Others
                                                         • Filings can be sent by hand or                     July 1, 2016, this minimum amount has                  have noted that the increases caused by
                                                      messenger delivery, by commercial                       been $18, and the Commission                           the rate floor rule could have a
                                                      overnight courier, or by first-class or                 previously scheduled increases to $20                  particularly deleterious effect on older
                                                      overnight U.S. Postal Service mail. All                 on July 1, 2017 and $22 on July 1, 2018.               Americans on fixed incomes and
                                                      filings must be addressed to the                        After several years of experience with it,             customers in Tribal areas.
                                                      Commission’s Secretary, Office of the                   the Commission now revisits it to                         5. In addition, some parties have
                                                      Secretary, Federal Communications                       ensure the Commission’s policies                       raised concerns about the use of a
                                                      Commission.                                             continue to further its statutory                      single, national rate floor. Some have
                                                         Æ All hand-delivered or messenger-                   obligation to ensure ‘‘[q]uality services              argued that incomes are often lower in
                                                      delivered paper filings for the                         . . . available at just, reasonable, and               rural areas and the rate floor incorrectly
                                                      Commission’s Secretary must be                          affordable rates.’’ The Commission                     ‘‘assumes that what’s affordable in our
                                                      delivered to FCC Headquarters at 445                    accordingly seeks comment on whether                   country’s largest cities must be
                                                      12th St. SW., Room TW–A325,                             it should make any changes to the                      affordable in our small towns.’’ Others
                                                      Washington, DC 20554. The filing hours                  current methodology or eliminate the                   have suggested that the Commission
                                                      are 8:00 a.m. to 7:00 p.m. All hand                     rate floor and its accompanying                        should consider ‘‘whether more
                                                      deliveries must be held together with                   reporting obligation.                                  localized survey data would better serve
                                                      rubber bands or fasteners. Any                                                                                 the goal of ensuring reasonably
                                                                                                              II. Discussion                                         comparable service at reasonably
                                                      envelopes and boxes must be disposed
                                                      of before entering the building.                           2. The Commission seeks comment on                  comparable rates, and what flexibility
                                                         D Commercial overnight mail (other                   whether it should change the current                   the states need to serve users under the
                                                      than U.S. Postal Service Express Mail                   methodology or eliminate the rate floor                particular circumstances of each state.’’
                                                      and Priority Mail) must be sent to 9300                 and its accompanying reporting                         The Commission observes that nothing
                                                      East Hampton Drive, Capitol Heights,                    obligation.                                            in the statute requires adoption of a
                                                      MD 20743.                                                  3. In adopting the rate floor, the                  single, national rate floor.
                                                         D U.S. Postal Service first-class,                   Commission determined that it is                          6. Accordingly, the Commission seeks
                                                      Express, and Priority mail must be                      ‘‘inappropriate to provide federal high-               comment on whether changes to the
                                                      addressed to 445 12th St. SW.,                          cost support to subsidize local rates                  current methodology are needed to
                                                      Washington, DC 20554.                                   beyond what is necessary to ensure                     address these concerns. If so, what
                                                         • People with Disabilities: Contact the              reasonable comparability.’’ The                        changes should be made? Should the
                                                      FCC to request reasonable                               Commission further stated that ‘‘[d]oing               Commission allow carriers to charge a
                                                      accommodations (accessible format                       so places an undue burden on the Fund                  rate that is one standard deviation
                                                      documents, sign language interpreters,                  and consumers that pay into it’’ and                   below the average urban rate? Should
                                                      CART, etc.) by email: FCC504@fcc.gov                    expressed the view that it would not be                the Commission replace the single,
                                                      or phone: (202) 418–0530 or TTY: (202)                  equitable ‘‘for consumers across the                   national rate floor with state or regional
                                                      418–0432.                                               country to subsidize the cost of service               rate floors? Are there other ideas the
                                                                                                              for some consumers that pay local                      Commission should consider?
                                                      FOR FURTHER INFORMATION CONTACT:
                                                                                                              service rates that are significantly lower             Alternatively, should the Commission
                                                      Alexander Minard, Wireline                              than the national urban average.’’                     eliminate the rate floor altogether?
                                                      Competition Bureau, (202) 418–7400 or                      4. On the other hand, stakeholders                     7. As part of the Commission’s
                                                      TTY: (202) 418–0484.                                    ranging from the AARP to the National                  consideration of possible changes to the
                                                      SUPPLEMENTARY INFORMATION: This is a                    Tribal Telecommunications Association,                 methodology or elimination of the rate
                                                      synopsis of the Commission’s Notice of                  from the National Consumer Law Center                  floor, it seeks comment on the
                                                      Proposed Rulemaking (NPRM) in WC                        to small, medium, and large rural                      intersection of the rate floor with state
                                                      Docket No. 10–90; FCC 17–61, adopted                    telephone companies, have raised                       ratemaking and state universal service
                                                      on May 18, 2017 and released on May                     concerns that the rate floor is                        funds. The Commission also notes that
                                                      19, 2017. The full text of this document                inconsistent with the direction of                     states have historically regulated rates
                                                      is available for public inspection during               section 254(b) of the Communications                   for local telephone service. Indeed, the
                                                      regular business hours in the FCC                       Act to advance universal service in                    Communications Act makes clear that
                                                      Reference Center, Room CY–A257, 445                     rural, insular, and high cost areas of the             ‘‘nothing in this [Act] shall be construed
                                                      12th St. SW., Washington, DC 20554 or                   country while ensuring that rates are                  to apply, or to give the Commission
                                                      at the following Internet address:                      just, reasonable, and affordable. These                jurisdiction,’’ over rates for ‘‘telephone
                                                      https://www.fcc.gov/document/voice-                     parties have argued that the rule makes                exchange service,’’ i.e., local service.
                                                      rate-floor-nprm-and-order.                              basic voice service in rural areas less                States have historically relied on a
                                                                                                              affordable, does not make voice service                variety of regulating methods (including
                                                      I. Introduction                                         available at reasonably comparable rates               the use of state universal service funds)
                                                        1. In 2011, the Commission adopted a                  to urban areas, and does not further the               to ensure just and reasonable rates for
                                                      rule intended to ensure that consumers                  Commission’s objective to ‘‘minimize                   that service—and those methods already
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                                                      across the country are not subsidizing                  the universal service contribution                     by law must not ‘‘rely on or burden
                                                      the cost of voice service to rural                      burden on consumers and businesses.’’                  Federal universal service support
                                                      customers whose rates are below a set                   In that same vein, no one disputes that                mechanisms.’’ The Commission seeks
                                                      minimum rate. This requirement is                       the rate floor has increased rates for                 comment on these arguments. The
                                                      known as the ‘‘rate floor.’’ If a carrier               voice service in rural areas, despite the              Commission also seeks comment on the
                                                      chooses to charge its customers less                    Commission’s goal to ‘‘preserve and                    Tenth Circuit’s suggestion that ‘‘the FCC
                                                      than the rate floor amount for voice                    advance universal availability of voice                ‘remains obligated to create some
                                                      service, the difference between the                     service.’’ Some parties have also                      inducement . . . for the states to assist
                                                      amount charged and the rate floor is                    asserted that price increases negatively               in implementing the goals of universal


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                                                                               Federal Register / Vol. 82, No. 109 / Thursday, June 8, 2017 / Proposed Rules                                           26655

                                                      service,’ i.e., in this case to ensure that             implementation in a number of states                   as amended, 47 U.S.C. 201, 219, 220 and
                                                      rural rates are not artificially low.’’                 and have explained that carriers require               254.
                                                         8. More generally, the Commission                    time after a rate floor increase to pursue                13. The RFA directs agencies to
                                                      seeks comment on whether the rate floor                 and implement rate increases. The                      provide a description of, and where
                                                      is meeting the intended purposes. One                   Commission seeks comment on these                      feasible, an estimate of the number of
                                                      party has argued that ‘‘an increase in the              arguments and whether modifying or                     small entities that may be affected by
                                                      local rate floor does not impact payment                eliminating the rate floor and the                     the proposed rules, if adopted. The RFA
                                                      into the Universal Service Fund or the                  accompanying reporting obligations                     generally defines the term ‘‘small
                                                      budget of the fund, but it does affect                  would reduce the complexity of the                     entity’’ as having the same meaning as
                                                      consumer choice, penalizes incumbent                    high-cost program and minimize the                     the terms ‘‘small business,’’ ‘‘small
                                                      wireline providers and ultimately                       associated administrative and                          organization,’’ and ‘‘small governmental
                                                      broadband deployment.’’ On the other                    compliance costs that have stemmed                     jurisdiction.’’ In addition, the term
                                                      hand, the Commission notes that the                     from implementation of the rate floor.                 ‘‘small business’’ has the same meaning
                                                      Commission last year adopted a budget                   Alternatively, the Commission seeks                    as the term ‘‘small-business concern’’
                                                      control mechanism for carriers within                   comment on whether updating the rate                   under the Small Business Act (SBA). A
                                                      the legacy rate-of-return system,                       floor on a biennial or triennial basis                 small-business concern’’ is one which:
                                                      including those receiving high-cost loop                would accomplish similar goals while                   (1) Is independently owned and
                                                      support. As such, any funding                           decreasing administrative burdens.                     operated; (2) is not dominant in its field
                                                      reductions from the rate floor are                      More generally, the Commission seeks                   of operation; and (3) satisfies any
                                                      generally redistributed to other carriers               comment on the costs and benefits of                   additional criteria established by the
                                                      to mitigate the impact of the budget                    the rate floor, and specifically on a cost-            SBA.
                                                      control mechanism, not returned to                      benefit analysis of the rule.                             14. This NPRM seeks comment on
                                                      ratepayers as contributions relief. The                                                                        changes to the Commission’s rules,
                                                      Commission notes that the rate floor                    III. Procedural Matters                                which, if adopted, will result in reduced
                                                      both reduces total high-cost loop                          10. This document proposes modified                 information collection and reporting
                                                      support (HCLS) support and reduces the                  information collection requirements                    requirements for ILECs.
                                                      budget impact on all rate-of-return                     subject to the PRA. It will be submitted                  15. In this NPRM, the Commission
                                                      carriers for HCLS and Connect America                   to the Office of Management and Budget                 seeks public comment on modifying or
                                                      Fund—Broadband Loop Support (CAF–                       (OMB) for review under section 3507(d)                 eliminating sections 54.313(h) and
                                                      BLS). Specifically, based on the data                   of the PRA. As part of the Commission’s                54.318 of the Commission’s rules.
                                                      used to calculate the recently published                continuing effort to reduce paperwork                  Because the Commission actions here
                                                      rate-of-return budget control                           burdens, the Commission invites the                    will likely result in reduced regulatory
                                                      mechanism, the Commission estimates                     general public and OMB to comment on                   burdens, the Commission concludes
                                                      that the rate floor effectively reduced                 the proposed information collection                    that the changes on which it seeks
                                                      total HCLS by 1.3 percent and                           requirements contained in this                         comment will not result in any
                                                      effectively increased CAF–BLS by 0.9                    document, as required by the PRA. In                   additional recordkeeping requirements
                                                      percent. The Commission seeks                           addition, pursuant to the Small                        for small entities.
                                                      comment on the impact of this                           Business Paperwork Relief Act, the                        16. Permit-But-Disclose. The
                                                      redistribution on broadband                             Commission seeks specific comment on                   proceeding this NPRM initiates shall be
                                                      deployment, both with respect to                        how it might further reduce the                        treated as a ‘‘permit-but-disclose’’
                                                      carriers receiving higher total USF                     information collection burden for small                proceeding in accordance with the
                                                      support and those impacted directly by                  business concerns with fewer than 25                   Commission’s ex parte rules. Persons
                                                      the rate floor and thus receiving lower                 employees. The Commission describes                    making ex parte presentations must file
                                                      total USF support. The Commission also                  impacts that might affect small                        a copy of any written presentation or a
                                                      seeks comment on these arguments                        businesses, which includes most                        memorandum summarizing any oral
                                                      generally.                                              businesses with fewer than 25                          presentation within two business days
                                                         9. Finally, the Commission seeks                     employees, in the Initial Regulatory                   after the presentation (unless a different
                                                      comment on ways to reduce ongoing                       Flexibility Analysis (IRFA) below.                     deadline applicable to the Sunshine
                                                      administrative and compliance costs on                     11. In the NPRM, the Commission                     period applies). Persons making oral ex
                                                      rural telephone companies, state                        seeks comment on whether to modify or                  parte presentations are reminded that
                                                      commissions, the Commission, the                        eliminate two rules: sections 54.313(h)                memoranda summarizing the
                                                      National Exchange Carrier Association,                  and 54.318 of the Commission’s rules.                  presentation must (1) list all persons
                                                      and the Universal Service                               The Commission is seeking comment on                   attending or otherwise participating in
                                                      Administrative Company. Each year,                      whether it should modify or eliminate                  the meeting at which the ex parte
                                                      federal staff must calculate a new rate                 section 54.318, the rate floor rule, to                presentation was made, and (2)
                                                      floor, which rural telephone companies                  better advance section 254 of the                      summarize all data presented and
                                                      must then seek permission from their                    Commission’s Act and the goals of the                  arguments made during the
                                                      state commissions to implement, with                    Commission’s universal service reforms.                presentation. If the presentation
                                                      oversight by several entities to ensure                 Section 54.313(h) requires carriers to                 consisted in whole or in part of the
                                                      that rural rates are sufficiently high and              report on the number lines it serves                   presentation of data or arguments
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                                                      universal service payments are                          with rates that fall below the rate floor.             already reflected in the presenter’s
                                                      appropriately withheld. Incumbent local                 If the Commission modifies or                          written comments, memoranda or other
                                                      exchange carriers (ILECs) subject to the                eliminates the rate floor rule, there may              filings in the proceeding, the presenter
                                                      rate floor must complete yet another                    be no need to for carriers report on rates             may provide citations to such data or
                                                      form specifying each of the carrier’s                   that fall below the rate floor.                        arguments in his or her prior comments,
                                                      rates that fall below the rate floor and                   12. The legal basis for any action that             memoranda, or other filings (specifying
                                                      the number of lines for each rate                       may be taken pursuant to this NPRM is                  the relevant page and/or paragraph
                                                      specified. Stakeholders have previously                 contained in sections 201, 219, 220 and                numbers where such data or arguments
                                                      detailed impediments to                                 254 of the Communications Act of 1934,                 can be found) in lieu of summarizing


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                                                      26656                    Federal Register / Vol. 82, No. 109 / Thursday, June 8, 2017 / Proposed Rules

                                                      them in the memorandum. Documents                       be filed in their native format (e.g., .doc,           IV. Ordering Clauses
                                                      shown or given to Commission staff                      .xml, .ppt, searchable .pdf). Participants               18. Accordingly, it is ordered,
                                                      during ex parte meetings are deemed to                  in this proceeding should familiarize                  pursuant to the authority contained in
                                                      be written ex parte presentations and                   themselves with the Commission’s ex                    sections 201, 219, 220 and 254 of the
                                                      must be filed consistent with rule                      parte rules.                                           Communications Act of 1934, as
                                                      1.1206(b). In proceedings governed by                     17. People with Disabilities. To                     amended, 47 U.S.C. 201, 219, 220, 254,
                                                      rule 1.49(f) or for which the                                                                                  this Notice of Proposed Rulemaking and
                                                                                                              request materials in accessible formats
                                                      Commission has made available a                                                                                Order is adopted.
                                                                                                              for people with disabilities (braille,
                                                      method of electronic filing, written ex
                                                                                                              large print, electronic files, audio                   Federal Communications Commission.
                                                      parte presentations and memoranda
                                                      summarizing oral ex parte                               format), send an email to fcc504@fcc.gov               Katura Jackson,
                                                      presentations, and all attachments                      or call the Consumer & Governmental                    Federal Register Liaison Officer, Office of the
                                                      thereto, must be filed through the                      Affairs Bureau at 202–418–0530 (voice),                Secretary.
                                                      electronic comment filing system                        202–418–0432 (tty).                                    [FR Doc. 2017–11848 Filed 6–7–17; 8:45 am]
                                                      available for that proceeding, and must                                                                        BILLING CODE 6712–01–P
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Document Created: 2018-11-14 10:06:27
Document Modified: 2018-11-14 10:06:27
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 July 10, 2017 and reply comments are due on or before July 24, 2017. If you anticipate that you will be submitting comments, but find it difficult to do so within the period of time allowed by this document, you should advise the contact listed below as soon as possible.
ContactAlexander Minard, Wireline Competition Bureau, (202) 418-7400 or TTY: (202) 418-0484.
FR Citation82 FR 26653 

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