Sec.  36.377   Category 1—Local business office expense.

   (a) The expense in this category for the area under study is first
   segregated on the basis of an analysis of job functions into the following
   subcategories: End user service order processing; end user payment and
   collection; end user billing inquiry; interexchange carrier service order
   processing; interexchange carrier payment and collection; interexchange
   carrier billing inquiry; and coin collection and administration. Effective
   July 1, 2001, through June 30, 2006, study areas subject to price cap
   regulation, pursuant to  Sec. 61.41 of this chapter, shall assign the balance of
   Account 6620–Services to the subcategories, as specified in  Sec. 36.377(a),
   based on the relative percentage assignment of the balance of Account 6620
   to these categories/subcategories during the twelve month period ending
   December 31, 2000.

   (1) End-user service order processing includes expenses related to the
   receipt and processing of end users' orders for service and inquiries
   concerning service. This subcategory does not include any service order
   processing expenses for services provided to the interexchange carriers. End
   user service order processing expenses are first segregated into the
   following subcategories based on the relative number of actual contacts
   which are weighted, if appropriate, to reflect differences in the average
   work time per contact: Local service order processing; presubscription;
   directory advertising; State private line and special access; interstate
   private line and special access; other State message toll including WATS;
   other interstate message toll including WATS; and TWX.

   (i) Local service order processing expense (primarily local telephone
   service orders) is assigned to the State jurisdiction.

   (ii) Presubscription service order processing expense is assigned to the
   interstate jurisdiction.

   (iii) Directory advertising service order processing expense is assigned to
   the State jurisdiction.

   (iv) State private line and special access service order processing expense
   is assigned to the State jurisdiction.

   (v) Interstate private line and special access service order processing
   expense is assigned to the interstate jurisdiction.

   (vi) Other State message toll including WATS service order processing
   expense is assigned to the State jurisdiction.

   (vii) Other Interstate message toll including WATS service order processing
   expense is assigned to the interstate jurisdiction.

   (viii) TWX service order processing expense is allocated between the
   jurisdictions based on relative State and interstate billed TWX revenues.

   (ix) Effective July 1, 2001, through June 30, 2006, study areas subject to
   price cap regulation, pursuant to  Sec. 61.41 of this chapter, shall assign the
   balance of Account 6620-Services to the categories/subcategories, as
   specified in  Sec.  Sec. 36.377(a)(1)(i) through 36.77(a)(1)(viii), based on the
   relative percentage assignment of the balance of Account 6620 to these
   categories/subcategories during the twelve month period ending December 31,
   2000. Effective July 1, 2001 through June 30, 2006, all study areas shall
   apportion TWX service order processing expense, as specified in
    Sec. 36.377(a)(1)(viii) among the jurisdictions using relative billed TWX
   revenues for the twelve-month period ending December 31, 2000. All other
   subcategories of End-user service order processing expense, as specified in
    Sec.  Sec. 36.377(a)(1)(i) through 36.377(a)(1)(viii), shall be directly assigned.

   (2) End User payment and collection includes expenses incurred in relation
   to the payment and collection of amounts billed to end users. It also
   includes commissions paid to payment agencies (which receive payment on
   customer accounts) and collection agencies. This category does not include
   any payment or collection expenses for services provided to interexchange
   carriers. End user payment and collection expenses are first segregated into
   the following subcategories based on relative total state and interstate
   billed revenues (excluding revenues billed to interexchange carriers and/or
   revenues deposited in coin boxes) for services for which end user payment
   and collection is provided: State private line and special access;
   interstate private line and special access; State message toll including
   WATS; interstate message toll including WATS, and interstate subscriber line
   charge; local, including directory advertising; and TWX.

   (i) State private line and special access payment and collection expense is
   assigned to the State jurisdiction.

   (ii) Interstate private line and special access payment and collection
   expense is assigned to the interstate jurisdiction.

   (iii) State message toll including WATS payment and collection expense is
   assigned to the State jurisdiction.

   (iv) Interstate message toll including WATS and interstate subscriber line
   charge payment and collection expense is assigned to the interstate
   jurisdiction.

   (v) Local, including directory advertising payment and collection expense is
   assigned to the State jurisdiction.

   (vi) TWX payment and collection expense is allocated between the
   jurisdictions based on relative State and interstate billed TWX revenues for
   service for which end user payment and collection is provided.

   (vii) Effective July 1, 2001, through June 30, 2006, study areas subject to
   price cap regulation, pursuant to  Sec. 61.41 of this chapter, shall assign the
   balance of Account 6620-Services to the subcategories, as specified in
    Sec.  Sec. 36.377(a)(2)(i) through 36.377(a)(2)(vi), based on the relative percentage
   assignment of the balance of Account 6620 to these categories/subcategories
   during the twelve month period ending December 31, 2000. Effective July 1,
   2001 through June 30, 2006, all study areas shall apportion TWX payment and
   collection expense, as specified in  Sec. 36.377(2)(vi) among the jurisdictions
   using relative billed TWX revenues for the twelve-month period ending
   December 31, 2000. All other subcategories of End User payment and
   collection expense, as specified in  Sec.  Sec. 36.377(a)(2)(i) through
   36.377(a)(2)(vi), shall be directly assigned.

   (3) End user billing inquiry includes expenses related to handling end
   users' inquiries concerning their bills. This category does not include
   expenses related to the inquiries of interexchange carriers concerning their
   bills. End user billing inquiry costs are first segregated into the
   following subcategories based on the relative number of actual contracts,
   weighted if appropriate, to reflect differences in the average work time per
   contact: State private line and special access; interstate private line and
   special access; State message toll including WATS, interstate message toll
   including WATS, interstate subscriber line charge; TWX; and other.

   (i) State private line and special access billing inquiry expense is
   directly assigned to the State jurisdiction.

   (ii) Interstate private line and special access billing inquiry expense is
   directly assigned to the interstate jurisdiction.

   (iii) State message toll including WATS billing inquiry expense is directly
   assigned to the State jurisdiction.

   (iv) Interstate message toll including WATS, and interstate subscriber line
   charge billing inquiry expense is directly assigned to the interstate
   jurisdiction.

   (v) TWX billing inquiry expense is allocated between the jurisdictions based
   on relative State and interstate billed TWX revenues for service for which
   end user billing inquiry is provided.

   (vi) Other billing inquiry expense (primarily related to local bills but
   also including directory advertising) is directly assigned to the State
   jurisdiction.

   (vii) Effective July 1, 2001, through June 30, 2006, study areas subject to
   price cap regulation, pursuant to  Sec. 61.41 of this chapter, shall assign the
   balance of Account 6620-Services to the subcategories, as specified in
    Sec.  Sec. 36.377(a)(3)(i) through 36.377(a)(3)(vi), based on the relative percentage
   assignment of the balance of Account 6620 to these subcategories during the
   twelve month period ending December 31, 2000. Effective July 1, 2001 through
   June 30, 2006, all study areas shall apportion TWX billing inquiry expense,
   as specified in  Sec. 36.377(a)(3)(v) among the jurisdictions using relative
   billed TWX revenues for the twelve-month period ending December 31, 2000.
   All other subcategories of End user billing inquiry expense, as specified in
    Sec.  Sec. 36.377(a)(3)(i) through 36.377(a)(3)(vi), shall be directly assigned.

   (4) Interexchange carrier service order processing includes expenses
   associated with the receipt and processing of interexchange carrier orders
   for service and inquiries about service. Interexchange carrier service order
   processing expenses are assigned to the following subcategories based on the
   relative number of actual contacts which are weighted, if appropriate, to
   reflect differences in the average work time per contact: State special
   access and private line; interstate special access and private line; State
   switched access and message toll including WATS; interstate switched access
   and message toll including WATS; State billing and collection; and
   interstate billing and collection.

   (i) State special access and private line service order processing expense
   is directly assigned to the State jurisdiction.

   (ii) Interstate special access and private line service order processing
   expense is directly assigned to the interstate jurisdiction.

   (iii) State switched access and message toll including WATS service order
   processing expense is directly assigned to the State jurisdiction.

   (iv) Interstate switched access and message toll including WATS service
   order processing expense is directly assigned to the interstate
   jurisdiction.

   (v) State billing and collection service order processing expense is
   directly assigned to the state jurisdiction.

   (vi) Interstate billing and collection service order processing expense is
   directly assigned to the interstate jurisdiction.

   (vii) Effective July 1, 2001 through June 30, 2006, study areas subject to
   price cap regulation, pursuant to  Sec. 61.41 of this chapter, shall assign the
   balance of Account 6620–Services to the subcategories, as specified in
    Sec.  Sec. 36.377(a)(4)(i) through 36.377(a)(4)(vi), based on the relative percentage
   assignment of the balance of Account 6620 to these subcategories during the
   twelve month period ending December 31, 2000. All subcategories of
   Interexchange carrier service order processing expense, as specified in
    Sec.  Sec. 36.377(a)(4)(i) through 36.377(a)(4)(vi), shall be directly assigned.

   (5) Interexchange carrier payment and collection includes expenses
   associated with the payment and collection of interexchange carrier
   billings, including commissions paid to payment and collection agents.
   Interexchange carrier payment and collection expenses are assigned to the
   following subcategories based on relative total State and interstate
   revenues billed to the interexchange carriers: State special access and
   private line; interstate special access and private line; State switched
   access and message toll including WATS; interstate switched access and
   message toll including WATS; State billing and collection; and interstate
   billing and collection.

   (i) State special access and private line payment and collection expense is
   directly assigned to the Interstate jurisdiction.

   (ii) Interstate special access and private line payment and collection
   expense is directly assigned to the interstate jurisdiction.

   (iii) State switched access and message toll including WATS payment and
   collection expense is directly assigned to the State jurisdiction.

   (iv) Interstate switched access and message toll including WATS payment and
   collection expense is directly assigned to the interstate jurisdiction.

   (v) State billing and collection payment and collection expense is directly
   assigned to the interstate jurisdiction.

   (vi) Interstate billing and collection payment and collection expense is
   directly assigned to the State jurisdiction.

   (vii) Effective July 1, 2001 through June 30, 2006, study areas subject to
   price cap regulation, pursuant to  Sec. 61.41 of this chapter, shall assign the
   balance of Account 6620–Services to the subcategories, as specified in
    Sec.  Sec. 36.377(a)(5)(i) through 36.377(a)(5)(vi), based on the relative percentage
   assignment of the balance of Account 6620 to these subcategories during the
   twelve month period ending December 31, 2000. All subcategories of
   Interexchange carrier payment expense, as specified in  Sec.  Sec. 36.377(a)(5)(i)
   through 36.377(a)(5)(vi), shall be directly assigned.

   (6) Interexchange carrier billing inquiry includes expenses related to the
   handling of interexchange carrier billing inquiries. Interexchange carrier
   billing inquiry expenses are assigned to the following subcategories based
   on the relative number of actual contacts, weighted if appropriate, to
   reflect differences in the average work time per contact: State special
   access and private line; interstate special access and private line; State
   switched access and message toll including WATS; interstate switched access
   and message toll including WATS; State billing and collection; and
   interstate billing and collection.

   (i) State special access and private line billing inquiry expenses is
   directly assigned to the State jurisdiction.

   (ii) Interstate special access and private line billing inquiry expense is
   directly assigned to the interstate jurisdiction.

   (iii) State switched access and message toll including WATS billing inquiry
   expense is directly assigned to the State jurisdiction.

   (iv) Interstate switched access and message toll including WATS billing
   inquiry expense is directly assigned to the interstate jurisdiction.

   (v) State billing and collection billing inquiry expense is directly
   assigned to the State jurisdiction.

   (vi) Interstate Billing and Collection billing inquiry expense is directly
   assigned to the interstate jurisdiction.

   (vii) Effective July 1, 2001 through June 30, 2006, study areas subject to
   price cap regulation, pursuant to  Sec. 61.41 of this chapter, shall assign the
   balance of Account 6620–Services to the subcategories, as specified in
    Sec. 36.377(a)(6)(i) through 36.377(a)(6)(vi), based on the relative percentage
   assignment of the balance of Account 6620 to these subcategories during the
   twelve month period ending December 31, 2000. All subcategories of
   Interchange carrier billing inquiry expense, as specified in
    Sec.  Sec. 36.377(a)(6)(i) through 36.377(a)(6)(vi), shall be directly assigned.

   (7) Coin collection and administration includes expenses for the collection
   and counting of money deposited in public or semi-public phones. It also
   includes expenses incurred for required travel, coin security, checking the
   serviceability of public or semi-public telephones, and related functions.
   These expenses are apportioned between the State and interstate
   jurisdictions in proportion to the relative State and interstate revenues
   deposited in the public and semi-public telephones.

   (i) Effective July 1, 2001 through June 30, 2006, study areas subject to
   price cap regulation, pursuant to  Sec. 61.41 of this chapter, shall assign the
   balance of Account 6620–Services to the subcategories, as specified in
    Sec. 36.377(a)(7), based on the relative percentage assignment of the balance of
   Account 6620 to these subcategories during the twelve month period ending
   December 31, 2000.

   (ii) Effective July 1, 2001 through June 30, 2006, all study areas shall
   apportion Coin collection and administration expense among the jurisdictions
   using the relative state and interstate revenues deposited in the public and
   semi-public telephones, as specified in  Sec.  Sec. 36.377(a)(7), for the twelve month
   period ending December 31, 2000. Direct assignment of any Coin collection
   and administration expense among the jurisdictions shall be updated
   annually.

   [ 52 FR 17229 , May 6, 1987, as amended at  66 FR 33207 , June 21, 2001]