§  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 paragraphs (c) through (g) of this section, and those
   expenses that pertain to Commission proceedings involving this subpart.
   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 High Cost Loop Support revenues. The second component
   ("Category I.B Expenses") shall be in proportion to the sum of the
   association End User Common Line revenues and the association Special
   Access Surcharge revenues. Interstate Common Line Support Revenues and
   Connect America Fund Broadband Loop 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 High Cost Loop Support
   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 charges shall include adjustments for association
   expenses other than Category I.B Expenses. Interstate Common Line
   Support and Connect America Fund Broadband Loop 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 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;  81 FR 24346 , Apr. 25, 2016]