********************************************************    
                         NOTICE
********************************************************

This document was converted from
WordPerfect or Word to ASCII Text format.

Content from the original version of the document such as
headers, footers, footnotes, endnotes, graphics, and page numbers
will not show up in this text version.

All text attributes such as bold, italic, underlining, etc. from the
original document will not show up in this text version.

Features of the original document layout such as
columns, tables, line and letter spacing, pagination, and margins
will not be preserved in the text version.

If you need the complete document, download the
WordPerfect version or Adobe Acrobat version, if available.

*****************************************************************
Before the
               Federal Communications Commission
                     Washington, D.C. 20554



In the Matter of

Federal-State Joint Board On 
Universal Service

Changes to the Board of Directors of the
National Exchange Carrier Association

Petition for Waiver of Section 54.709(a)(3)
of the Commission's Rules and Regulations

)
)
)
)
)
)
)
)
)
)




CC Docket No. 96-45


CC Docket No. 97-21



                  MEMORANDUM OPINION AND ORDER

   Adopted:  January 9, 2001            Released: January 10, 2001

By the Accounting Policy Division:

     I.   introduction
1.     In this Order, we grant the petition of the Universal Service Administrative Company
(USAC) for a limited waiver of the quarterly filing requirements of section 54.709(a)(3) of the
Commission's rules, to permit USAC to file its financial projections for second quarter 2001 one
week late.  We find that good cause exists to permit USAC to file its second quarter 2001 financial
projections on or before February 6, 2001.
     II.  background
3.     Contributions to the federal universal service support mechanisms are determined using
a contribution factor calculated by the Commission.  Each quarter, the Commission revises the
contribution factor based on USAC's quarterly filing, which contains projections of demand for
universal service programs and administrative expenses for the following quarter.  USAC is
required to submit these projections at least 60 days prior to the start of that quarter.  During the
60-day period, the Commission reviews the information and calculates a revised contribution factor,
which is then announced in a public notice.
4.     USAC seeks a limited waiver of the quarterly filing deadline to enable it to file its
projections for the second quarter of 2001 one week late.  It explains that, prior to submitting its
quarterly filings, USAC's Committees and Board of Directors must meet in Washington, D.C. to
review and approve the projected program requirements, funding base, and administrative expenses
to be included in the filing.  Typically, these meetings are scheduled the week of, or the week
immediately prior to, the filing date.  USAC states that the filing for the second quarter 2001 is due
on January 30, 2001 and that scheduling a meeting in Washington, D.C. during the week prior to
this date will be difficult due to the Presidential inauguration events taking place around the same
time.  USAC also states that it does not believe that any party will be prejudiced by a one-week
delay in this filing because there will still be ample time available for the Commission and
interested parties to review the projected funding requirements prior to the contribution factor
becoming effective on April 1, 2001.
     V.   Discussion
6.     We find that USAC has demonstrated good cause to waive the filing deadline. 
Accordingly, we grant a limited waiver to permit USAC to file its financial projections for second
quarter 2001 one week late, on or before February 6, 2001.
7.     Generally, the Commission's rules may be waived for good cause shown.  As noted by
the Court of Appeals for the D.C. Circuit, however, agency rules are presumed valid.  The
Commission may exercise its discretion to waive a rule where the particular facts make strict
compliance inconsistent with the public interest.  In addition, the Commission may take into
account considerations of hardship, equity, or more effective implementation of overall policy on
an individual basis.  Waiver of the Commission's rules is therefore appropriate only if special
circumstances warrant a deviation from the general rule, and such a deviation will serve the public
interest.
8.     We find that USAC has shown good cause to grant a one-week extension under the
circumstances indicated.  We also find that no harm will result from permitting USAC to file its
projections one week late for this quarter.  The 60-day period ensures that the Commission has
sufficient opportunity to review the information filed by USAC and to calculate the contribution
factor.  We find that truncating the review period to 53 days in this instance will not result in any
harm to the administration of the fund.  We also note that, in the three years since USAC has
administered the universal service support mechanism, this is the first time USAC has asked the
Commission for an extension of the filing deadline.  Finally, we conclude that it is in the public
interest to grant USAC's waiver.  USAC expects that shifting their meeting dates will decrease
administrative costs.
     IX.  Ordering Clauses
10.    Accordingly, IT IS ORDERED that, pursuant to sections 1, 4, and 254 of the
Communications Act of 1934, as amended, 47 U.S.C.  151, 154, 254, and the authority delegated
under sections 0.91, 0.291, and 1.3 of the Commission's rules, 47 C.F.R.  0.91, 0.291, 1.3, the
waiver request filed by the Universal Service Administrative Company on December 14, 2000 is
GRANTED.
11.    IT IS FURTHER ORDERED that this Order is effective upon release.

                              FEDERAL COMMUNICATIONS COMMISSION
                              
                              
                              Katherine L. Schroder
                              Chief, Accounting Policy Division
                              Common Carrier Bureau