WPC# 2MBERKZ3|n X-#Xj\  P6G;ynXP#"i~'^09CSS999S]+9+/SSSSSSSSSS//]]]Ixnnxg]xx9?xgxx]xn]gxxxxg9/9MS9ISISI9SS//S/SSSS9?/SSxSSIP!PZ9+ZM999+999999S9S/xIxIxIxIxIlnIgIgIgIgI9/9/9/9/xSxSxSxSxSxSxSxSxSxSxIxSxRxSxSxS]SxIxIxInInInZnIxigIgIgIgIxSxSxSxZxSxZxS9/9S999Su]ZZxSg/gCg9g9g/xSbxSxSxSxSxn9n9n9]?]?]?]ZgFg/gMxSxSxSxSxSxSxxZgIgIgIxSg9xS]?g9xSi+SS88WuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxN/>/>/>/x]SSSSx]x]x]x]xSxSx]SSxSxSf]xSxSxSxIxIxWxIx{nInInInISSSWS]a?/?]?9?]]WW]n/nKn9nCn/x]xx]x]SSxxIxIxI]?]?]?]WnUn9nax]x]x]x]x]x]xxWnInInIx]n9x]]?n9xSz+SS8-8WuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxN8HH"&H>XHH8HB8>HH^HH>"".2",2,2,"222N2222"&22H22,006"6."""""""""2"2H,H,H,H,H,XAB,>,>,>,>,""""H2H2H2H2H2H2H2H2H2H2H,H2H1H2H2H282H,H,H,B,B,B6B,H?>,>,>,>,H2H2H2H6H2H6H2""2"""2F866H2>>(>">">H2;H2H2H2H2XHB"B"B"8&8&8&86>*>>.H2H2H2H2H2H2^HH6>,>,>,H2>"H28&>"H2?22!!WFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxN$<<$.2",2222`2 LL2 LL2L"",,2d""\4  pG;\ 5hC:,%rXh*f9 xr G;XX !W!@(#,h@\  P6G;hP"H5!,),5\  P6G;,P\#{,W80,%BZW*f9 xr G;X6jC:,<̃Xj9 xOG;X"i~'^:LpddDDDdp4D48ddddddddddDDpppdLd||p|||D8DpdDddXdXDdp88d8pdddLL8pXdXLD,DpD4ppDDD4DDDDDDdDd8dddddXXXXXL8L8L8L8pddddpppp|Xdddd|Xd|ddddXXpXXXXXdddpdppL8LdLDLdpppd|8|h|D|L|8pppddLLLpLpLpLpp|l|8|ppppppp|p|L|L|Ld|DppL|D|d4ddC8CWddddddddddddddddddddddddddddddddddddddddNHxxHddLdddddd4?c {OK-ԍ See 5 U.S.C.  601(3) (incorporating by reference the definition of "small business concern" in 15 U.S.C.  632). The Commission may also develop additional definitions that are appropriate to its activities. To be a small business concern, an entity must: (1)be independently owned and operated; (2) be not dominant in its field of operation; and (3)meet  X-any additional criteria established by the SBA.G?"?c {Ow-ԍ See 15 U.S.C.  632.G  Xv-x28.` ` We believe that small ILECs are not small businesses for IRFA purposes because each is either dominant in its field of operation or is not independently owned and operated. We have found ILECs to be "dominant in their field of operation" since the early  X1-1980s, and we consistently have certified under the Regulatory Flexibility ActI@1?c {O-ԍ See 5 U.S.C.  605(b).I that ILECs  X -are not subject to regulatory flexibility analysis requirements because they are not "small  X -business concerns."A^ F?c {O-ԍ See, e.g., Expanded Interconnection with Local Telephone Companies, Supplemental Notice of Proposed  {O-Rulemaking, 6 FCC Rcd 5809 (1991); MTS and WATS Market Structure, Report and Order, 2 FCC Rcd 2953,  {O-2959 (1987), citing MTS and WATS Market Structure, Third Report and Order, 93 FCC 2d 241, 33839 (1983). Out of an abundance of caution, for regulatory flexibility analysis purposes we will consider small ILECs within this present analysis and use the term "small ILECs" to refer to any incumbent LEC that arguably might be defined by SBA as a small business concern.  X-x29.` ` The proposals under consideration in this NPRM, if adopted, would affect the fourteen (14) ILECs subject to price cap regulation by the Commission. Neither the Commission nor the SBA has developed a definition of small providers of local exchange  XK-service. The closest applicable definition under SBA rules is for telephone  X4-telecommunications companies other than radiotelephone (wireless) companies.]B4l ?c yOQ-ԍ Standard Industrial Classification (SIC) Code 4813.] The SBA  X-has defined a small business for Standard Industrial Classification (SIC) category 4813 (Telephone Communications, Except Radiotelephone) to be an entity with no more than 1,500  X-employees.]C ?c yO!-ԍ 15 U.S.C.  632 (citing 13 C.F.R.  121.201).] Of the fourteen ILECs subject to price cap regulation, we estimate that, at a maximum, six (6) of them have no more than 1,500 employees. Of these six, we estimate that at least one is not independently owned and operated. We seek comment on these estimates. " C0*&&qqo"Ԍ X-x30.` ` In addition, the proposals in this NPRM may also affect providers of local exchange service that purchase wholesale services from the 14 incumbent price cap LECs and resell that service to customers. Neither the Commission nor the SBA has developed a  X-definition of small entities specifically applicable to resellers. The closest applicable SBA definition for a reseller is a telephone communications company except radiotelephone  X-(wireless) companies.oD?c yO-#]\  PCɒP#э 13 CFR 121.201, SIC 4813.o However, the most reliable source of information regarding the number of resellers nationwide is the data that the Commission collects annually in connection  X_-with the TRS Worksheet. According to our most recent data, 260 companies reported that they were engaged in the resale of telephone service. We estimate that between 50 and 150 of these companies offer local exchange service on a resale basis, but we do not have data regarding how many of these carriers purchase service from price cap ILECs. We also do not have information on the number of these carriers that are not independently owned and operated or have more than 1,500 employees, and thus we are unable at this time to estimate with greater precision the number of resellers that would qualify as small entities or small incumbent LEC concerns under the SBA's definition. Consequently, we estimate that there are fewer than 150 small entity resellers.  X-  X{-x31.` ` Reporting, record keeping, and other compliance requirements. The proposals to establish a customer certification system amy require price cap ILECs to ask customers to  XO-identify their primary lines,FEOX?c {OX-ԍ See supra paras. 710.F maintain records verifying a customer's primary line  X8-designation,GF8?c {O-ԍ See supra paras. 1011.G submit their records to Commission audits to verify accuracy of primary line  X!-counts,GG!|?c {ON-ԍ See supra paras. 1719.G and publish a consumer disclosure statement in their monthly bills.HZ!?c {O-ԍ See supra para. 22. In addition, parties may wish to consult the supporting statement, prepared in accordance with the Paperwork Reduction Act, that is available from the Commission or from the Office of Management and Budget.  X-x32.` ` Steps Taken to Minimize Significant Economic Impact on Small Entities and  X-Alternatives Considered.  Throughout this NPRM, we seek comment on alternatives that will reduce the impact on all entities affected by these proposals, including small ILECs. We tentatively adopt a definition of singleline business lines that, we believe, will result in a smaller administrative burden for ILECs as they identify primary and secondary lines in order to charge the correct SLC or PICC. In addition, we ask commenters to identify the relative costs and benefits, including administrative costs, of adopting a particular definition of primary residential line. We ask parties to identify a definition of primary residential line that"V0 H0*&&qq" will be easy for carriers and customers to apply. We tentatively adopt customer selfcertification as a means to identify primary lines because this method of identification is less administratively burdensome for ILECs than a method that does not include customer input. We seek comment on whether, and if so, the amount of time, ILECs must keep records of customer selfcertification. We particularly encourage parties to submit proposals that will reduce the administrative burden on carriers and customers. We seek comment on whether we should include a standardized customer disclosure statement, and if so, whether that disclosure should be made in writing or may be made orally.  X1-x 33.` ` At this time, we tentatively conclude to eliminate several options because they would be too administratively burdensome. The proposals we tentatively reject include: creating and maintaining a national database of primary line designations; using local property records to identify and track primary lines; and using social security numbers to track primary lines.  X -x!34.` ` Federal rules which overlap, duplicate or conflict with this rule.  None.  X{- C.xInitial Paperwork Reduction Act Analysis  XM-x"35.` ` This NPRM contains a proposed information collection. As part of its continuing effort to reduce paperwork burdens, we invite the general public and the Office of Management and Budget (OMB) to take this opportunity to comment on the information collections contained in this NPRM, as required by the Paperwork Reduction Act of 1995,  X-Pub. L. No. 10413.2IX?c yOj-ԍ A supporting statement, prepared in accordance with the Paperwork Reduction Act, that details the Commission's estimates with respect to the burdens imposed by the proposals in this NPRM is available from the Commission or from the Office of Management and Budget.2 Public and agency comments are due at the same time as other comments on this NPRM; OMB comments are due 60 days from date of publication of this NPRM in the Federal Register. Comments should address: (a) whether the proposed collection of information is necessary for the proper performance of the functions of the Commission, including whether the information shall have practical utility; (b)the accuracy of the Commission's burden estimates; (c)ways to enhance the quality, utility, and clarity of the information collected; and (d)ways to minimize the burden of the collection of information on the respondents, including the use of automated collection techniques or other form of information technology.  X - D.XxDeadlines and Instructions for Filing Comments(#  X-  X-x#36. ` ` Pursuant to applicable procedures set forth in sections 1.415 and 1.419 of the Commission's rules, 47 C.F.R.  1.415 and 1.419, interested parties may file comments on or before September 25, 1997, and reply comments on or before October 9, 1997."!I0*&&qq "Ԍ X-ԙx$37. ` ` We direct all interested parties to include the name of the filing party and the date of the filing on each page of their comments and reply comments. Comments and reply comments also must clearly identify the specific portion of this NPRM to which a particular comment or set of comments is responsive. If a portion of a party's comments does not fall under a particular topic listed in the outline of this NPRM, such comments must be included in a clearly labelled section at the beginning or end of the filing. Irrespective of the length of their comments or reply comments, parties shall include a table of contents in their  X_-documents.KJ_?c {O-ԍ Cf. 47 C.F.R.  1.49(b).K  X1-x%38. ` ` Parties should send their comments or reply comments to Office of the Secretary, Federal Communications Commission, 1919 M Street, N.W., Room 222, Washington, D.C. 20554. Parties filing on paper should also send three (3) copies of their comments to Sheryl Todd, Federal Communications Commission, Accounting and Audits Division, Universal Service Branch, 2100 M Street, N.W., Room 8611, Washington, DC 20554. Parties filing in paper form should also file one copy of any documents filed in this docket with the Commission's copy contractor, International Transcription Services, Inc., 1231 20th Street, NW, Washington, D.C. 20036. Comments and reply comments will be available for public inspection during regular business hours in the FCC Reference Center, 1919 M Street, N.W., Room 239, Washington, D.C. 20554.  X4-x&39. ` ` Commenters may also file informal comments or an exact copy of formal comments electronically via the Internet at: . Only one copy of electronically filed comments must be submitted. A commenter must note whether an electronic submission is an exact copy of formal comments on the subject line. A commenter also must include its full name and Postal Service mailing address its submission.  X-x'40. ` ` Parties not submitting an exact copy of their comments via the Internet are also asked to submit their comments and reply comments on diskette. Such diskette submissions are in addition to and not a substitute for the formal filing requirements addressed above. Parties submitting diskettes should submit them to Sheryl Todd of the Common Carrier Bureau, 2100 M Street, N.W., Room 8611, Washington, D.C. 20554. Such a submission should be on a 3.5 inch diskette formatted in an IBM compatible form using WordPerfect 5.1 for Windows or compatible software. The diskette should be submitted in "read only" mode. The diskette should be clearly labelled with the party's name, proceeding, type of pleading (comment or reply comments) and date of submission. Each diskette should contain only one party's comments in a single electronic file. The diskette should be accompanied by a cover letter.  X#-x(41.` ` Written comments by the public on the proposed information collections are"#ZJ0*&&qqe"" due September 25, 1997. Written comments must be submitted by OMB on the proposed information collection on or before 60 days after the date of publication in the Federal Register. In addition to filing comments with the Secretary, a copy of any comments on the information collections contained herein should be submitted to Judy Boley, Federal Communications Commission, Room 234, 1919 M Street, N.W., Washington, D.C. 20554, or via the Internet to jboley@fcc.gov and to Timothy Fain, OMB Desk Officer, 10236 NEOB, 725 17th Street, N.W., Washington, D.C. 20503 or via the Internet to fain_t@al.eop.gov.  XH- E.XxOrdering Clause (#  X -x)42. ` ` IT IS ORDERED, pursuant to Sections 1, 4(i) and (j), 201209, 218222, 251, 254, and 403 of the Communications Act as amended, 47 U.S.C.  151, 154(i), 154(j), 201209, 218222, 251, 254, and 403 that this Notice of Proposed Rulemaking IS HEREBY ADOPTED and comments ARE REQUESTED as described above.  X -x*43.` ` IT IS FURTHER ORDERED that the Commission SHALL SEND a copy of this Notice of Proposed Rulemaking, including the Initial Regulatory Flexibility Analysis, to the Chief Counsel for Advocacy of the Small Business Administration. x x` `  hh@FEDERAL COMMUNICATIONS COMMISSION x` `  hh@William F. Caton x` `  hh@Acting Secretary9$#N/  X-    Appendix Service List ă (#҇The Honorable Reed E. Hundt, Chairman Federal Communications Commission 1919 M Street, N.W., Room 814 Washington, DC 20554 The Honorable Rachelle B. Chong, Commissioner Federal Communications Commission 1919 M Street, N.W., Room 844 Washington, DC 20554 The Honorable Susan Ness, Commissioner Federal Communications Commission 1919 M Street, N.W., Room 832 Washington, DC 20554 The Honorable James H. Quello, Commissioner Federal Communications Commission 1919 M Street, N.W., Room 802 Washington, DC 20554 The Honorable Julia Johnson, State Chair, Chairman Florida Public Service Commission 2540 Shumard Oak Blvd. Gerald Gunter Building Tallahassee, FL 323990850 The Honorable David Baker, Commissioner Georgia Public Service Commission 244 Washington Street, S.W. Atlanta, GA 303345701 The Honorable H. Russell Frisby, Commissioner Maryland Public Service Commission 16th Floor, 6 Paul Street Baltimore, MD 212026806"Q%J0*&&qq $" The Honorable Laska Schoenfelder, Commissioner South Dakota Public Utilities Commission State Capitol, 500 East Capitol Street Pierre, SD 575015070 Martha S. Hogerty Missouri Office of Public Council 301 West High Street, Suite 250 P.O. Box 7800 Jefferson City, MO 65102  X - Tom Boasberg Federal Communications Commission Office of the Chairman 1919 M Street, N.W., Room 814 Washington, DC 20554  X4- Charles Bolle South Dakota Public Utilities Commission State Capitol, 500 East Capitol Street Pierre, SD 575015070 Deonne Bruning Nebraska Public Service Commission 300 The Atrium, 1200 N Street, P.O. Box 94927 Lincoln, NE 685094927 James Casserly Federal Communications Commission Commissioner Ness's Office 1919 M Street, N.W., Room 832 Washington, DC 20554 Rowland Curry Texas Public Utility Commission 1701 North Congress Avenue P.O. Box 13326 Austin, TX 78701HQ%J0*&&qq $$:&G"G"&&qqH Ann Dean Maryland Public Service Commission 16th Floor, 6 Paul Street Baltimore, MD 212026806 Bridget Duff, State Staff Chair Florida Public Service Commission 2540 Shumard Oak Blvd. Tallahassee, FL 323990866 Kathleen Franco Federal Communications Commission Commissioner Chong's Office 1919 M Street, N.W., Room 844 Paul Gallant Federal Communications Commission Commissioner Quello's Office 1919 M Street, N.W., Room 802 Washington, DC 20554 Emily Hoffnar, Federal Staff Chair Federal Communications Commission Accounting and Audits Division Universal Service Branch 2100 M Street, N.W., Room 8617 Washington, DC 20554 Lori Kenyon Alaska Public Utilities Commission 1016 West Sixth Avenue, Suite 400 Anchorage, AK 99501 Debra M. Kriete Pennsylvania Public Utilities Commission North Office Building, Room 110 Commonwealth and North Avenues P.O. Box 3265 Harrisburg, PA 171053265""J0*&&qqf!" Sandra Makeeff Iowa Utilities Board Lucas State Office Building Des Moines, IA 50319 Philip F. McClelland Pennsylvania Office of Consumer Advocate 1425 Strawberry Square Harrisburg, PA 17120 Thor Nelson Colorado Office of Consumer Counsel 1580 Logan Street, Suite 610 Denver, CO 80203 Barry Payne Indiana Office of the Consumer Counsel 100 North Senate Avenue, Room N501 Indianapolis, IN 462042208 Timothy Peterson, Deputy Division Chief Federal Communications Commission Accounting and Audits Division 2100 M Street, N.W., Room 8613 Washington, DC 20554 James B. Ramsay National Association of Regulatory Utility Commissioners 1100 Pennsylvania Ave., N.W. P.O. Box 684 Washington, D.C. 200440684 Brian Roberts California Public Utilities Commission 505 Van Ness Avenue San Francisco, CA 94102H!J0*&&qq $#BEaD#&&qqH Kevin Schwenzfeier NYS Dept of Public Service 3 Empire State Plaza Albany, NY 12223 Tiane Sommer Georgia Public Service Commission 244 Washington Street, S.W. Atlanta, GA 303345701 Sheryl Todd (plus 3 copies) Federal Communications Commission Accounting and Audits Division Universal Service Branch 2100 M Street, N.W., Room 8611 Washington, DC 20554" J0*&&qq/ " HJ0*&&qq$TFF&&qqHԯ X- 9