§ 36.601   General.

   (a) The term Universal Service Fund in this subpart refers only to the
   support for loop-related costs included in § 36.621. The term Universal
   Service in part 54 of this chapter refers to the comprehensive
   discussion of the Commission's rules implementing section 254 of the
   Communications Act of 1934, as amended, 47 U.S.C. 254, which addresses
   universal service support for rural, insular, and high cost areas,
   low-income consumers, schools and libraries, and heath care providers.
   The expense adjustment calculated pursuant to this subpart F shall be
   added to interstate expenses and deducted from state expenses after
   expenses and taxes have been apportioned pursuant to subpart D of this
   part. Beginning January 1, 1998, the expense adjustment calculated
   pursuant to this subpart will be administered and funded through the
   new universal service system discussed in part 54 of this chapter.
   Effective January 1, 2012, this subpart will only apply to incumbent
   local exchange carriers that are rate-of-return carriers not
   affiliated, as "affiliated companies" are defined in § 32.9000 of this
   chapter, with price cap local exchange carriers. Rate-of-return
   carriers and price cap local exchange carriers are defined pursuant to
   § 54.5 and § 61.3(aa) of this chapter, respectively.

   (b) The expense adjustment will be computed on the basis of data for a
   preceding calendar year which may be updated at the option of the
   carrier pursuant to § 36.612(a).

   [ 52 FR 17229 , May 6, 1987, as amended at  56 FR 27422 , June 14, 1991;  58 FR 69242 , Dec. 30, 1993;  61 FR 34376 , July 2, 1996;  62 FR 32947 , June
   17, 1997;  62 FR 40748 , July 30, 1997;  63 FR 2124 , Jan. 13, 1998;  64 FR 30924 , June 9, 1999;  64 FR 67430 , Dec. 1, 1999;  65 FR 78992 , Dec. 18,
   2000;  66 FR 30085 , June 5, 2001;  76 FR 73853 , Nov. 29, 2011]

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