82 FR 59971 - Comprehensive Review of the Uniform System of Accounts, Jurisdictional Separations and Referral to the Federal-State Joint Board

FEDERAL COMMUNICATIONS COMMISSION

Federal Register Volume 82, Issue 241 (December 18, 2017)

In this document, the Commission announces that the Office of Management and Budget (OMB) has approved, for a period of three years, information requirements associated with the Commission's Order, FCC 17-15. In this Order, the Commission minimized the compliance burdens imposed by the Uniform System of Accounts (USOA) on price cap and rate- of-return telephone companies, while ensuring that the Commission retains access to the information it needs to fulfill its regulatory duties. This document is consistent with the Order, which stated that the Commission would publish a document in the Federal Register announcing the effective date of the rules.

[Federal Register Volume 82, Number 241 (Monday, December 18, 2017)]
[Rules and Regulations]
[Pages 59971-59972]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2017-26942]


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FEDERAL COMMUNICATIONS COMMISSION

47 CFR Parts 1 and 32

[WC Docket No. 14-130, CC Docket No. 80-286; FCC 17-15]


Comprehensive Review of the Uniform System of Accounts, 
Jurisdictional Separations and Referral to the Federal-State Joint 
Board

AGENCY: Federal Communications Commission.

ACTION: Final rule; announcement of effective date.

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SUMMARY: In this document, the Commission announces that the Office of 
Management and Budget (OMB) has approved, for a period of three years, 
information requirements associated with the Commission's Order, FCC 
17-15. In this Order, the Commission minimized the compliance burdens 
imposed by the Uniform System of Accounts (USOA) on price cap and rate-
of-return telephone companies, while ensuring that the Commission 
retains access to the information it needs to fulfill its regulatory 
duties. This document is consistent with the Order, which stated that 
the Commission would publish a document in the Federal Register 
announcing the effective date of the rules.

DATES: The amendments to 47 CFR 1.1409(g) and 32.1, published on May 4, 
2017 at 82 FR 20833, are effective January 1, 2018.

FOR FURTHER INFORMATION CONTACT: Robin Cohn, Pricing Policy Division, 
Wireline Competition Bureau, at (202) 418-2747, or email: 
[email protected].

SUPPLEMENTARY INFORMATION: This document announces that, on December 3, 
2017 OMB approved, for a period of three years, the information 
collection requirements contained in the Commission's Part 32 Order, WC 
Docket No. 14-130, CC Docket No. 80-286, FCC 17-15. The OMB Number is 
3060-1247. The Commission publishes this document as an announcement of 
the effective date of the rules. If you have any comments on the burden 
estimates listed below, or how the Commission can improve the 
collections and reduce any burdens caused thereby, please contact 
Nicole Ongele, Federal Communications Commission, Room 1-A620, 445 12th 
Street SW, Washington, DC 20554. Please include the OMB Control Number, 
3060-1247, in your correspondence. The Commission will also accept your 
comments via email at [email protected].
    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 and Governmental 
Affairs Bureau at (202) 418-0530 (voice), (202) 418-0432 (TTY).

Synopsis

    As required by the Paperwork Reduction Act of 1995 (44 U.S.C. 
3507), the FCC is notifying the public that it received OMB approval on 
December 3, 2017, for the information collection requirements contained 
in the Commission's rules at 47 CFR 1.791; 1.1409(g); 32.1; 32.3; 
32.11; 32.26; 32.101(c); 32.103; 32.2000(a)(4), (b)(1), (b)(2)(iii), 
(c)(2)(x), (e)(8), (f)(2)(iii), and (j); 32.2110; 32.2210; 32.2230; 
32.2310; 32.2410; 32.2680; 32.2682(c); 32.2690(b); 32.3000; 32.3400(a);

[[Page 59972]]

32.3999; 32.4999(f) and (n); 32.5000; 32.5200; 32.5999(g); 32.6110; 
32.6120; 32.6230; 32.6310; 32.6410; 32.6510; 32.6530; 32.6560; 32.6610; 
32.6620; 32.6999; 32.7200; 32.9000; 65.810; and 65.820(d).
    Under 5 CFR part 1320, an agency may not conduct or sponsor a 
collection of information unless it displays a current, valid OMB 
Control Number.
    No person shall be subject to any penalty for failing to comply 
with a collection of information subject to the Paperwork Reduction Act 
that does not display a current, valid OMB Control Number. The OMB 
Control Number is 3060-1247.
    The foregoing notice is required by the Paperwork Reduction Act of 
1995, Public Law 104-13, October 1, 1995, and 44 U.S.C. 3507.
    The total annual reporting burdens and costs for the respondents 
are as follows:
    OMB Control Number: 3060-1247.
    OMB Approval Date: December 3, 2017.
    OMB Expiration Date: December 31, 2020.
    Title: Part 32 Uniform System of Accounts.
    Form Number: N/A. Respondents: Business or other for-profit 
entities.
    Number of Respondents and Responses: 1,176 respondents; 2,458 
responses.
    Estimated Time per Response: 20-40 hours.
    Frequency of Response: One-time, on occasion, and annual reporting 
requirements; recordkeeping requirements.
    Obligation to Respond: Required to obtain or retain benefits. 
Statutory authority for this information collection is contained in 
sections 10, 201, 219 through 220, 224, 254(k), 272(e)(3), and 403 of 
the Communications Act of 1934, as amended, 47 U.S.C. 160, 201, 219-
220, 224, 254(k), 272(e)(3), and 403.
    Total Annual Burden: 103,240 hours.
    Total Annual Cost: No cost.
    Privacy Impact Assessment: No impact(s).
    Nature and Extent of Confidentiality: Respondents are not being 
asked to submit confidential information to the Commission. If the 
Commission requests respondents to submit information which respondents 
believe is confidential, respondents may request confidential treatment 
of such information under 47 CFR 0.459 of the Commission's rules.
    Needs and Uses: On February 24, 2017, the Commission released the 
Part 32 Order, WC Docket No. 14-130, CC Docket No. 80-286, FCC 17-15, 
which minimized the compliance burdens imposed by Uniform System of 
Accounts (USOA) on price cap and rate-of-return companies, while 
ensuring that the Commission retains access to the information it needs 
to fulfill its regulatory duties.
    The Commission consolidated Class A and Class B accounts by 
eliminating the current classification of carriers, which divides 
incumbent LECs into two classes for accounting purposes based on annual 
revenues. Carriers subject to part 32's USOA will now only be required 
to keep Class B accounts.
    Pursuant to the Part 32 Order, price cap carriers may elect to use 
generally accepted accounting principles (GAAP) for all regulatory 
purposes if they: (1) Establish an ``Implementation Rate Difference'' 
(IRD), which is the difference between pole attachment rates calculated 
under part 32 and under GAAP as of the last full year preceding the 
carrier's initial opting out of part 32 accounting requirements; and 
(2) adjust their annually-computed GAAP-based pole attachment rates by 
the IRD for a period of 12 years after the election. Alternatively, 
price cap carriers may elect to use GAAP accounting for all purposes 
other than those associated with pole attachment rates and continue to 
use the part 32 accounts and procedures applicable to pole attachment 
rates for up to 12 years.
    A price cap carrier may be required to submit pole attachment 
accounting data to the Commission for three years following the 
effective date of the rule permitting a price cap carrier to elect GAAP 
accounting. If a pole attacher informs the Commission of a suspected 
problem with pole attachment rates, the Commission will require the 
price cap carrier to file its pole attachment data for the state in 
question. This requirement may be extended for an additional three 
years, if necessary.
    The Commission reduced the accounting requirements for telephone 
companies with a continuing obligation to comply with part 32 in a 
number of areas. Telephone companies may: (1) Carry an asset at its 
purchase price when it was acquired, even if its value has increased or 
declined when it goes into regulated service; (2) reprice an asset at 
market value after a merger or acquisition consistent with GAAP; (3) 
use GAAP principles to determine Allowance-for-Funds-Used-During 
Construction; and (4) employ the GAAP standard of materiality for price 
cap carriers. Rate-of-return carriers receiving cost-based support must 
determine materiality consistent with the general materiality 
guidelines promulgated by the Auditing Standards Board.
    Price cap carriers with a continuing part 32 accounting obligation 
must maintain continuing property records necessary to track 
substantial assets and investments in an accurate, auditable manner. 
The carriers must make such property information available to the 
Commission upon request. Carriers subject to part 32 must continue to 
comply with the USOA's depreciation procedures and its rules for cost 
of removal-and-salvage accounting.

Federal Communications Commission.
Marlene H. Dortch,
Secretary, Office of the Secretary.
[FR Doc. 2017-26942 Filed 12-15-17; 8:45 am]
 BILLING CODE 6712-01-P