§  69.603   Association functions.

   (a) The Association shall not engage in any activity that is not
   related to the preparation of access charge tariffs or the collection
   and distribution of access charge revenues or the operation of a
   billing and collection pool on an untariffed basis unless such activity
   is expressly authorized by order of the Commission.

   (b) Participation in Commission or court proceedings relating to access
   charge tariffs, the billing and collection of access charges, the
   distribution of access charge revenues, or the operation of a billing
   and collection pool on an untariffed basis shall be deemed to be
   authorized association activities.

   (c)-(e) [Reserved]

   (f) The association shall also prepare and file an access charge tariff
   containing terms and conditions for access service and form for the
   filing of rate schedules by telephone companies that choose to
   reference these terms and conditions while filing their own access
   rates.

   (g) The association shall divide the expenses of its operations into
   two categories. The first category ("Category I Expenses") shall
   consist of those expenses that are associated with the preparation,
   defense, and modification of association tariffs, those expenses that
   are associated with the administration of pooled receipts and
   distributions of exchange carrier revenues resulting from association
   tariffs, those expenses that are associated with association functions
   pursuant to § 69.603 (c)-(g), and those expenses that pertain to
   Commission proceedings involving subpart G of part 69 of the
   Commission's rules. The second category ("Category II Expenses") shall
   consist of all other association expenses. Category I Expenses shall be
   sub-divided into three components in proportion to the revenues
   associated with each component. The first component ("Category I.A
   Expenses") shall be in proportion to the Universal Service Fund and
   Lifeline Assistance revenues. The second component ("Category I.B
   Expenses") shall be in proportion to the sum of the association End
   User Common Line revenues, the association Carrier Common Line
   revenues, the association Special Access Surcharge revenues, the Long
   Term Support payments and the Transitional Support payments. Beginning
   July 1, 2002, Interstate Common Line Support revenues shall be included
   in the allocation base for Category I.B expenses. The third component
   ("Category I.C Expenses") shall be in proportion to the revenues from
   all other association interstate access charges.

   (h)(1) The revenue requirement for association tariffs filed pursuant
   to § 69.4(c) shall not include any association expenses other than
   Category I.A Expenses.

   (2) The revenue requirement for association tariffs filed pursuant to
   § 69.4 (a) and (b)(2) shall not include any Association expenses other
   than Category I.B Expenses.

   (3) The revenue requirement for association tariffs filed pursuant to
   § 69.4(b) (1) and (3)-(7) shall not include any association expenses
   other than Category I.C Expenses.

   (4) No distribution to an exchange carrier of Universal Service Fund
   and Lifeline Assistance revenues shall include adjustments for
   association expenses other than Category I.A Expenses.

   (5) No distribution to an exchange carrier of revenues from association
   End User Common Line or Carrier Common Line charges, Special Access
   Surcharges or Long Term Support or Transitional Support payments shall
   include adjustments for association expenses other than Category I.B
   Expenses. Beginning July 1, 2002, Interstate Common Line Support shall
   be subject to this provision.

   (6) No distribution to an exchange carrier of revenues from association
   interstate access charges other than End User Common Line and Carrier
   Common Line charges and Special Access Surcharges shall include
   adjustments for association expenses other than Category I.C Expenses.

   (7) The association shall separately identify all Category I.A, I.B and
   I.C expenses in cost support materials filed with each annual
   association access tariff filing.

   [ 54 FR 8197 , Feb. 27, 1989, as amended at  54 FR 8199 , Feb. 27, 1989;  62 FR 41306 , Aug. 1, 1997;  63 FR 70578 , Dec. 21, 1998;  66 FR 59733 , Nov.
   30, 2001]