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Administration in accordance with Section 605(b) of the Regulatory Flexibility Act.'

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76. This NPRM contains either a proposed or modified 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 1995.114 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 forms of information technology.

77. In addition to filing comments with the Secretary, as detailed below, a copy of any comments on the information collections contained herein should be submitted to Dorothy Conway, Federal Communications Commission, Room 234, 1919 M Street, N.W., Washington, D.C. 20554, or via the Internet to dconway@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.

D. Comment Filing Procedures

78. Pursuant to applicable rules 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 February 24, 1997, and reply comments on or before March 17, 1997. To file formally in this proceeding, commenters and reply commenters must file an original and six copies of all comments, reply comments, and supporting comments. Commenters and reply commenters wishing each Commissioner to receive a personal copy of their comments must file an original and eleven copies. Comments and reply comments must comply with Section. 1.49 and all other applicable sections of the Commission's rules. However, we require here that a summary be included with all comments, regardless of length. All comments must be

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113 5 U.S.C. § 605(b) (as amended by the Contract With America Advancement Act, Pub. L. No. 104-121, 110 Stat 847, 866 (1996)).

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sent to Office of the Secretary, Federal Communications Commission, 1919 M Street, N.W.,
Room 222, Washington, D.C. 20554, with a copy to the Secretary, Network Services
Division, Common Carrier Bureau, 2000 M Street, N.W., Suite 235, Washington, D.C.
20554. Parties must also file one copy of any documents filed in this docket with the
Commission's duplicating contractor, International Transcription Services, Inc. ("ITS"), 2100
M Street, N.W., Suite 140, Washington, D.C. 20037 (tel. 202-857-3800). 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. Copies
of comments and reply comments will also be available through ITS.

79. Parties are also asked to submit 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 Secretary, Network
Services Division, Common Carrier Bureau, 2000 M Street, N.W., Suite 235, Washington,
D.C. 20554. Diskette submissions should be on a 3.5 inch diskette formatted in an IBM-
compatible form using MS-DOS 5.0 and WordPerfect 5.1 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 (comments or reply comments) and date of submission. The
diskette should be accompanied by a cover letter.

IV. ORDERING CLAUSES

80. Accordingly, IT IS HEREBY ORDERED that, pursuant to Sections 1, 4(i), 4(j),
10, 214, 218, 254 and 571 of the Communications Act of 1934, as amended, 47 U.S.C.
§§ 151, 154(i), 154(j), 214, 218, 254 and 571, a NOTICE OF PROPOSED RULEMAKING
is hereby ADOPTED.

81. IT IS FURTHER ORDERED that the Secretary shall send a copy of this NOTICE
OF PROPOSED RULEMAKING, including the regulatory flexibility certification to the Chief
Counsel for Advocacy of the Small Business Administration, in accordance with Section
605(b) of the Regulatory Flexibility Act, 5 U.S.C. § 605(b).

FEDERAL COMMUNICATIONS COMMISSION

William F. Caton
Acting Secretary

PROPOSED RULES

Part 63 of Title 47 of the Code of Federal Regulations is revised as follows:

PART 63 - NEW LINES, EXTENSION OF LINES AND DISCONTINUANCE, REDUCTION, OUTAGE AND IMPAIRMENT OF SERVICE BY COMMON CARRIERS; AND GRANTS OF RECOGNIZED PRIVATE OPERATING AGENCY STATUS

1. The authority citation for Part 63 is amended by revising the citation as follows:

AUTHORITY: Sections 1, 4(i), 4(j), 10, 11, 201-205, 214, 218, 403 and 571 of the Communications Act of 1934, as amended, 47 U.S.C. secs. 151, 154(i), 154(j), 160, 201-205, 214, 218, 403, and 571 unless otherwise noted.

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§ 63.01 Exemption for extensions of lines and for systems for the delivery of video programming.

(a) Any common carrier proposing to undertake the extension of any line is exempt from the requirements of Section 214 of the Communications Act of 1934, as amended. For the purpose of this section, an extension of any line shall mean "a line that allows the carrier to expand its service into geographic territory that it is eligible to serve, but that its network does not currently reach." This section does not relieve any common carrier from the obligation to obtain all necessary authorizations from the Commission for use of radio frequencies.

(b) A common carrier shall not be required to obtain a certificate under Section 214 of the Communications Act of 1934 with respect to the establishment or operation of a system for the delivery of video programming.

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$ 63.02 Forbearance from Section 214 requirements for price cap carriers, average schedule carriers, and domestic, non-dominant carriers.

(a) For the purpose of this section, the following definitions shall apply:

(1) Price cap carrier shall mean a carrier subject to regulation under 47 C.F.R. Sections 61.41 through 61.49 of this chapter.

(2) Average schedule carrier shall mean a carrier that employs average schedules in lieu of determining its costs.

(3) Domestic, non-dominant carrier shall mean a domestic carrier meeting the definition of a non-dominant carrier provided in Section 61.3(u) of this chapter.

(b) Any common carrier deemed to be a price cap, average schedule, or domestic, non-dominant carrier that is proposing to construct, acquire, or operate a new line, or engage in transmission over or by means of such line, and such line originates and terminates in the United States, is not required to file for authority pursuant to Section 214 of the Communications Act of 1934, as amended. This section does not relieve any common carrier from the obligation to obtain all necessary authorizations from the Commission for use of radio frequencies.

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§ 63.03 Special procedures for dominant, rate-of-return carriers.

(a) For the purpose of this section, the following definitions shall apply:

(1) Dominant carrier shall mean a carrier meeting the definition of a dominant carrier provided in Section 61.3(0) of this chapter.

(2) Rate of return carrier shall mean a local exchange carrier or a group of affiliated carriers that is not subject to price cap regulation under Sections 61.41 through 61.49 of this chapter, and that is not an average schedule carrier, as that term is defined in Section 63.02(a)(2) of this chapter.

(b) Any common carrier deemed to be a dominant, rate-of-return carrier is hereby granted authority under Section 214 of the Communications Act of 1934, 47 U.S.C. § 214, to construct, acquire, or operate new lines, or engage in transmission over or by means of such lines, subject to the following restrictions:

The lines must originate and terminate within the United States;

The lines must be categorically excluded from environmental processing under
Section 1.1306 of this chapter.

(1)

(2)

(3)

A carrier's authority under this subsection is limited to lines:

(a).

With a total annual construction or acquisition cost not exceeding
$12,000,000; or

(b)

With a total annual rental cost not exceeding $3,000,000; or

(c)

Which increase the aggregate book value of the carrier's lines by not more than 10%.

(c) Any common carrier deemed to be a dominant, rate-of-return carrier that is

seeking authority pursuant to Section 214 of the Communications Act of 1934, as amended, to

line, and such line originates and terminates in the United States, and such line is not subject to the blanket authorization of subsection (b) of this section, shall request such authority by formal application which shall be accompanied by a statement showing how the grant of the application will serve the public interest, convenience, and necessity. Such statement shall consist of the following information, as applicable:

The name, address, and telephone number of each applicant;

(1)

(2)

The Government, State, or Territory under the laws of which each corporate or partnership applicant is organized;

(3)

The name, title, post office address, and telephone number of the officer and any other person, such as legal counsel, to whom correspondence concerning the application is to be addressed;

(4)

(5)

The points between which the proposed facilities are to be located;
A description of the facilities for which authority is requested and of the
applicants existing facilities between the points identified above;

(6)

(7)

The following affidavit, executed by the carrier's president, chief executive officer, or other corporate officer with appropriate authority, under oath and subject to penalty for perjury:

"I, (name and title), under oath and subject to penalty for perjury,
certify that (a) there is a public need for these proposed facilities; and
(2) these proposed facilities are economically justified. I have
appropriate authority to make this certification on behalf of (applicant),
and I agree to provide any information the Commission requests to
allow it to evaluate this certification or any other aspect of this
application."

A statement whether an authorization of the facilities is categorically excluded as defined by § 1.1306 of the Commission's rules. If answered affirmatively, an environmental assessment as described in § 1.1311 need not be filed with the application.

(c) An original and three copies of the application shall be filed with the Secretary, Federal Communications Commission, Washington, D.C. 20554. Applicant shall furnish a copy to the Governor of the state in which the line is to be constructed, and also to the Secretary of Defense, Attn. Special Assistant for Telecommunications, Pentagon, Washington, D.C. 20301.

(d) An application filed under this section shall be deemed granted without further Commission action on on the thirty first (31st) day following the issuance of public notice that the application has been accepted for filing unless: (1) the Common Carrier Bureau notifies the applicant within 31 days of the issuance of such public notice that the application will not be automatically granted; or (2) within thirty days of the issuance of such public notice, a party files an opposition to the application with the Commission and serves it on the applicant. In either case, final action on the application will be taken by the Bureau within

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