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yO'ԍThis reduction applies only to small ILECs that calculate their own jurisdictional separations. The administrative burden on small ILECs that have chosen NECA's average schedule, and thus do not calculate their own jurisdictional separations, will not be affected by the adoption of these rules.Y No new skills are required to comply with these rules.  X54 e 31. ` ` Steps Taken to Minimize Impact on Small Entities Consistent with Stated  X 4 xZObjectives. The Joint Board recommended a fixedfactor plan that was consistent with our stated  xlobjectives that the permanent rules be easy to implement and administer, simple to audit, and  xcertain and predictable in their effect. As we explain in paragraph 22 above, the Joint Board  xZrecommended that we not adopt the PaPUC's suggestion that nonprice cap companies be allowed  x/to choose among several methodologies for allocating their OB&C expenses, because the Joint  xBoard thought the likelihood of ILECs being unable to recover a large amount of their OB&C  x@expenses, or of their losing their IXC OB&C customers, had been greatly exaggerated. We agree  xpthat having small ILECs choose among three different procedures would be needlessly complex  xto administer, difficult to audit, and unpredictable in result, and we consider such a complicated  xZapproach to be an excessive precaution against a speculative concern. We do, however, entertain  X<4 xhwaiver petitions for good cause shown,S?<֖ yO'ԍSee para. 19, supra. Sand if a pattern of waiver petitions develops that  xindicates, contrary to our expectation, that these rules are not satisfactory in regard to small  xILECs, the waiver requests could form a basis for the Joint Board to recommend a solution  xtailored to any problem that is revealed. We also note that the Joint Board found greater support  X4among commenters for waivers than for the alternative procedures we suggested in the Notice.`@x֖ yO 'ԍRecommended Decision at para. 55. `   X4 e W32. ` ` Significant alternatives considered and rejected. The Joint Board considered and  xrejected an allocation procedure based on relativeuse measurements. The Joint Board reasoned  xthat measuring use produced results no more indicative of cost causation than applying a fixed  xfactor, and that our other goals ease of administration, auditability, and predictable results  x<were best met by adopting a fixed allocation factor. The Joint Board considered the contention  x_of some parties that a measureduse method would be more convenient because it was self X*4 x adjusting,MA*֖ yO%'ԍId. at para. 42.M and that changing separations procedures was itself burdensome,IB*֖ yO'ԍId. at para. 43.I but was persuaded"*XB0*&&aa"  xby other commenters, including all the participating state public utility commissions, that the  x convenience of allocating OB&C expenses by a fixed factor outweighed these considerations and best met our goals.  X4 e 1 33. ` ` After determining to recommend allocation by fixed factor, the Joint Board  xconsidered all the possible factors set forth for its consideration by this Commission and by  xparties. The Joint Board took the approach that any plan that called for it to revise its 1987 view  x3that there are three essential services (local exchange service, intrastate toll service, and interstate  xtoll service) bore the burden of convincing the Joint Board of its superiority, and no plan  X14 x overcame that challenge.C1X֖ yO: 'ԍId. at paras. 4553. See also Joint Board Recommendation, 2 FCC Rcd 2078, 2083. We consider the Joint Board's approach reasonable. The Joint Board  xconsidered the argument that it should choose a factor that would result in an allocation to the  x'interstate jurisdiction similar to that arrived at by using the interim rules, but rejected that  xapproach because the results produced by the interim rules bear no special relation to cost  X 4causation that would justify their use as a benchmark.XD ֖ yOn'ԍRecommended Decision at para. 46.X  X 4 e i!34. ` ` Report to Congress. The Secretary shall send a copy of this Final Regulatory  xlFlexibility Analysis, along with this Report and Order, in a report to Congress pursuant to the  xSmall Business Regulatory Enforcement Fairness Act of 1996, 5 U.S.C.  801(a)(1)(A). A copy of this Final Regulatory Flexibility Analysis shall also be published in the Federal Register.  X64! VI. ORDERING CLAUSES ă  X4 e "35. ` ` Accordingly, pursuant to Sections 1, 4(i), 220, 221(c) and 410(c) of the  xCommunications Act of 1934, as amended, 47 U.S.C.  151, 154(i), 220, 221(c), and 410(c),  xIT IS ORDERED that the recommendations of the FederalState Joint Board in CC Docket No. 80286 ARE ADOPTED.  X4 e #36. ` ` IT IS FURTHER ORDERED that, pursuant to Sections 1, 4(i), 220, and 221(c) and 410(c) of the Communications Act of 1934, as amended, 47 U.S.C.  151, 154(i), 220, and "~xD0*&&aam"  x_221(c), Part 36 of the Commission's Rules and Regulations, 47 C.F.R. Part 36, Subpart D, is amended as shown in the Appendix to this Report and Order. ` ` FEDERAL COMMUNICATIONS COMMISSION ` ` William F. Caton ` ` Acting Secretary"1D0*&&aa"  X' Appendix A  X' Parties Filing Comments to the Notice of Proposed Rulemaking Ameritech Operating Companies ("Ameritech") AT&T Corp. ("AT&T") Bell Atlantic Telephone Companies ("Bell Atlantic") BellSouth Telecommunications, Inc. ("BellSouth") Cathey, Hutton & Associates, Inc. ("CHA") Cincinnati Bell Telephone ("CBT") GVNW Inc./Management ("GVNW") GTE Service Corporation ("GTE") ICORE Inc. ("ICORE") John Staurulakis, Inc. ("JSI") MCI Telecommunications Corp. ("MCI") National Exchange Carrier Association ("NECA") National Telephone Cooperative Association ("NTCA") NYNEX Telephone Companies ("NYNEX")  x3Organization for the Protection and Advancement of Small Telephone Companies ("OPASTCO") Pacific Bell and Nevada Bell ("Pacific") Roseville Telephone Company ("Roseville") Southwestern Bell ("SWBT") United and Central Telephone ("United") US West Communications, Inc. ("US West") Washington Utilities and Transportation Commission ("WUTC")  X' Parties Filing Reply Comments Pennsylvania Public Utility Commission ("PaPUC") National Association of Regulatory Utility Commissioners ("NARUC") New York Department of Public Service ("NYDPS") United States Telephone Association ("USTA") " D0*&&aa}"  X' Appendix B PART 36 of Title 47 of the Code of Federal Regulations is amended as follows:  xSection 36.380 is amended by deleting current subsections (b) and (c), and adding new subsections (b) and (c) to read as follows:  X_'  36.380 Other billing and collecting expense. v*****  x (b) Local exchange carriers that bill or collect from end users on behalf of interexchange carriers  xshall allocate one third of the expenses assigned this classification to the interstate jurisdiction, and two thirds of the expenses assigned this classification to the state jurisdiction.  x(c) Local exchange carriers that do not bill or collect from end users on behalf of interexchange  xcarriers shall allocate five percent of the expenses assigned this classification to the interstate  xjurisdiction, and ninetyfive percent of the expenses assigned this classification to the state jurisdiction.  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