
From the U.S. Code Online via GPO Access
[wais.access.gpo.gov]
[Laws in effect as of January 23, 2000]
[Document not affected by Public Laws enacted between
  January 23, 2000 and December 4, 2001]
[CITE: 47USC220]

 
          TITLE 47--TELEGRAPHS, TELEPHONES, AND RADIOTELEGRAPHS
 
                 CHAPTER 5--WIRE OR RADIO COMMUNICATION
 
                     SUBCHAPTER II--COMMON CARRIERS
 
                    Part I--Common Carrier Regulation
 
Sec. 220. Accounts, records, and memoranda


(a) Forms

    (1) The Commission may, in its discretion, prescribe the forms of 
any and all accounts, records, and memoranda to be kept by carriers 
subject to this chapter, including the accounts, records, and memoranda 
of the movement of traffic, as well as of the receipts and expenditures 
of moneys.
    (2) The Commission shall, by rule, prescribe a uniform system of 
accounts for use by telephone companies. Such uniform system shall 
require that each common carrier shall maintain a system of accounting 
methods, procedures, and techniques (including accounts and supporting 
records and memoranda) which shall ensure a proper allocation of all 
costs to and among telecommunications services, facilities, and products 
(and to and among classes of such services, facilities, and products) 
which are developed, manufactured, or offered by such common carrier.

(b) Depreciation charges

    The Commission may prescribe, for such carriers as it determines to 
be appropriate, the classes of property for which depreciation charges 
may be properly included under operating expenses, and the percentages 
of depreciation which shall be charged with respect to each of such 
classes of property, classifying the carriers as it may deem proper for 
this purpose. The Commission may, when it deems necessary, modify the 
classes and percentages so prescribed. Such carriers shall not, after 
the Commission has prescribed the classes of property for which 
depreciation charges may be included, charge to operating expenses any 
depreciation charges on classes of property other than those prescribed 
by the Commission, or after the Commission has prescribed percentages of 
depreciation, charge with respect to any class of property a percentage 
of depreciation other than that prescribed therefor by the Commission. 
No such carrier shall in any case include in any form under its 
operating or other expenses any depreciation or other charge or 
expenditure included elsewhere as a depreciation charge or otherwise 
under its operating or other expenses.

(c) Access to information; burden of proof; use of independent auditors

    The Commission shall at all times have access to and the right of 
inspection and examination of all accounts, records, and memoranda, 
including all documents, papers, and correspondence now or hereafter 
existing, and kept or required to be kept by such carriers, and the 
provisions of this section respecting the preservation and destruction 
of books, papers, and documents shall apply thereto. The burden of proof 
to justify every accounting entry questioned by the Commission shall be 
on the person making, authorizing, or requiring such entry and the 
Commission may suspend a charge or credit pending submission of proof by 
such person. Any provision of law prohibiting the disclosure of the 
contents of messages or communications shall not be deemed to prohibit 
the disclosure of any matter in accordance with the provisions of this 
section. The Commission may obtain the services of any person licensed 
to provide public accounting services under the law of any State to 
assist with, or conduct, audits under this section. While so employed or 
engaged in conducting an audit for the Commission under this section, 
any such person shall have the powers granted the Commission under this 
subsection and shall be subject to subsection (f) of this section in the 
same manner as if that person were an employee of the Commission.

(d) Penalty for failure to comply

    In case of failure or refusal on the part of any such carrier to 
keep such accounts, records, and memoranda on the books and in the 
manner prescribed by the Commission, or to submit such accounts, 
records, memoranda, documents, papers, and correspondence as are kept to 
the inspection of the Commission or any of its authorized agents, such 
carrier shall forfeit to the United States the sum of $6,000 for each 
day of the continuance of each such offense.

(e) False entry; destruction; penalty

    Any person who shall willfully make any false entry in the accounts 
of any book of accounts or in any record or memoranda kept by any such 
carrier, or who shall willfully destroy, mutilate, alter, or by any 
other means or device falsify any such account, record, or memoranda, or 
who shall willfully neglect or fail to make full, true, and correct 
entries in such accounts, records, or memoranda of all facts and 
transactions appertaining to the business of the carrier, shall be 
deemed guilty of a misdemeanor, and shall be subject, upon conviction, 
to a fine of not less than $1,000 nor more than $5,000 or imprisonment 
for a term of not less than one year nor more than three years, or both 
such fine and imprisonment: Provided, That the Commission may in its 
discretion issue orders specifying such operating, accounting, or 
financial papers, records, books, blanks, or documents which may, after 
a reasonable time, be destroyed, and prescribing the length of time such 
books, papers, or documents shall be preserved.

(f) Confidentiality of information

    No member, officer, or employee of the Commission shall divulge any 
fact or information which may come to his knowledge during the course of 
examination of books or other accounts, as hereinbefore provided, except 
insofar as he may be directed by the Commission or by a court.

(g) Use of other forms; alterations in prescribed forms

    After the Commission has prescribed the forms and manner of keeping 
of accounts, records, and memoranda to be kept by any person as herein 
provided, it shall be unlawful for such person to keep any other 
accounts, records, or memoranda than those so prescribed or such as may 
be approved by the Commission or to keep the accounts in any other 
manner than that prescribed or approved by the Commission. Notice of 
alterations by the Commission in the required manner or form of keeping 
accounts shall be given to such persons by the Commission at least six 
months before the same are to take effect.

(h) Exemption; regulation by State commission

    The Commission may classify carriers subject to this chapter and 
prescribe different requirements under this section for different 
classes of carriers, and may, if it deems such action consistent with 
the public interest, except the carriers of any particular class or 
classes in any State from any of the requirements under this section in 
cases where such carriers are subject to State commission regulation 
with respect to matters to which this section relates.

(i) Consultation with State commissions

    The Commission, before prescribing any requirements as to accounts, 
records, or memoranda, shall notify each State commission having 
jurisdiction with respect to any carrier involved, and shall give 
reasonable opportunity to each such commission to present its views, and 
shall receive and consider such views and recommendations.

(j) Report to Congress on need for further legislation

    The Commission shall investigate and report to Congress as to the 
need for legislation to define further or harmonize the powers of the 
Commission and of State commissions with respect to matters to which 
this section relates.

(June 19, 1934, ch. 652, title II, Sec. 220, 48 Stat. 1078; Pub. L. 101-
239, title III, Sec. 3002(f), Dec. 19, 1989, 103 Stat. 2131; Pub. L. 
103-414, title III, Secs. 303(a)(7), (8), 304(a)(5), Oct. 25, 1994, 108 
Stat. 4294, 4296; Pub. L. 104-104, title IV, Sec. 403(d), (e), Feb. 8, 
1996, 110 Stat. 130.)


                               Amendments

    1996--Subsec. (b). Pub. L. 104-104, Sec. 403(d), substituted ``may 
prescribe, for such carriers as it determines to be appropriate,'' for 
``shall prescribe for such carriers''.
    Subsec. (c). Pub. L. 104-104, Sec. 403(e), inserted at end ``The 
Commission may obtain the services of any person licensed to provide 
public accounting services under the law of any State to assist with, or 
conduct, audits under this section. While so employed or engaged in 
conducting an audit for the Commission under this section, any such 
person shall have the powers granted the Commission under this 
subsection and shall be subject to subsection (f) of this section in the 
same manner as if that person were an employee of the Commission.''
    1994--Subsec. (a). Pub. L. 103-414, Sec. 303(a)(7), designated 
existing provisions as par. (1) and added par. (2).
    Subsec. (b). Pub. L. 103-414, Sec. 304(a)(5), struck out ``, as soon 
as practicable,'' after ``The Commission shall''.
    Pub. L. 103-414, Sec. 303(a)(8), substituted ``classes'' for 
``clasess'' after ``prescribed the'' in third sentence.
    1989--Subsec. (d). Pub. L. 101-239 substituted ``$6,000'' for 
``$500''.
