[Federal Register Volume 62, Number 143 (Friday, July 25, 1997)]
[Proposed Rules]
[Pages 40036-40039]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 97-19657]


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FEDERAL COMMUNICATIONS COMMISSION

47 CFR Part 1

[MD Docket No. 96-186; FCC 97-254]


Assessment and Collection of Regulatory Fees for Fiscal Year 1997

AGENCY: Federal Communications Commission.

ACTION: Further notice of proposed rulemaking.

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SUMMARY: On June 26, 1997, the Commission released a Report and Order 
that revised its Schedule of Regulatory Fees in order to recover the 
amount of regulatory fees that Congress, pursuant to Section 9(a) of 
the Communications Act, as amended, has required it to collect for 
Fiscal Year (FY) 1997. See 47 U.S.C. 159 (a). The intended effect of 
this action is to seek further comments concerning our proposals to 
require Commercial Mobile Radio Service (CMRS) licensees to maintain 
and make available to the Commission within 30 days, upon request by 
the Managing Director, pursuant to delegated authority, documentation 
concerning the basis for their fee payment; require that non-profit 
entities exempt from the regulatory fee requirement because of 
possessing either non-profit status under Sec. 501 of the Internal 
Revenue Code, 26 U.S.C. 501, or certification as a non-profit 
corporation or other non-profit entity by state or other governmental 
authority submit documentation of their non-profit status; and publish 
annually in the Federal Register lists of those commercial 
communications firms and

[[Page 40037]]

businesses who have paid a regulatory fee for the preceding fiscal year 
(except licensees for vanity call signs in the amateur service or any 
other licensees that pay their regulatory fee at the same time the 
application is paid).

DATES: Written comments are due: August 14, 1997. Comments regarding 
Paperwork Burden Impact: September 23, 1997.

ADDRESSES: Federal Communications Commission, Secretary's Office, Room 
222, 1919 M Street, N.W., Washington, DC 20554.

FOR FURTHER INFORMATION CONTACT: Regina W. Dorsey, Office of the 
Managing Director at (202) 418-1995.

SUPPLEMENTARY INFORMATION: Adopted: July 17, 1997. Released: July 
18, 1997.

    1. The Commission recently completed a proceeding to revise its 
Schedule of Regulatory Fees in order to recover the amount of 
regulatory fees, $152,523,000, that Congress has required it to recover 
for Fiscal Year (FY) 1997. See Report and Order in the Matter of 
Assessment and Collection of Regulatory Fees for Fiscal Year 1997, MD 
Docket No. 96-186, FCC 97-215, released June 26, 1997, 62 FR 37408 
(July 11, 1997). Since the commencement of our regulatory fee program, 
Congress has consistently increased the amount that we are to recover. 
For FY 1997, Congress has required that we collect $152,523,000 
compared with $60,000,000 that Congress required us to collect for FY 
1994, the initial year of the fee program. In order to fairly and 
efficiently collect the annual fees necessary to recover these 
increasingly large amounts, we believe that certain changes to our 
collection processes are warranted. Therefore, by this Further Notice 
of Proposed Rulemaking (FNPRM), we are proposing to modify our 
collection procedures for regulatory fees in order to help assure 
increased accuracy and timeliness of regulatory fee payments.
    2. We propose to require Commercial Mobile Radio Service (CMRS) 
licensees to maintain and make available to the Commission within 30 
days, upon request by the Managing Director, pursuant to delegated 
authority, documentation concerning the basis for their fee payments. 
Such documentation on the number of pagers, cellular telephones or PCS 
units is not available in the Commission's files and is necessary in 
order to assure that fee payments are accurately prepared and reliable.
    3. Acceptable documentation, which we propose to require that the 
filing entity retain for a period of three years, might include records 
such as reports to other government agencies, billing records, 
certified financial statements, or other records that demonstrate the 
accuracy of the fee payment. CMRS licensees probably already prepare 
such documentation for use in calculating their fee payments. Thus, 
maintaining this information should constitute little, if any, burden. 
Our intention is to minimize, to the fullest extent possible, any 
burden on fee payers related to our proposed requirement for 
documentation of the basis for fee payments. Therefore, interested 
parties are specifically requested to comment upon both the nature and 
extent of documentation of unit counts that would be most appropriate 
for our needs.
    4. In addition, we are proposing to require that non-profit 
entities exempt from the regulatory fee requirement submit 
documentation of their non-profit status. Section 1.1161(c) of the 
Commission's rules exempts from annual regulatory fees entities 
possessing either non-profit status under Sec. 501 of the Internal 
Revenue Code, 26 U.S.C. 501, or certification as a nonprofit 
corporation or other nonprofit entity by state or other governmental 
authority. For fiscal years 1994 through 1996, we required as part of 
our fee payment verification process that non-profit entities provide, 
upon request, copies of their IRS determination letters or other 
documentation of nonprofit status. This procedure has become unduly 
burdensome as we seek to implement more efficient methods to improve 
our collections systems.
    5. Therefore, we are proposing to revise our procedures to require 
that all exempt non-profit entities submit to us their current IRS 
determination letters or other current documentation of non-profit 
status. Non-profit entities need file this supporting documentation 
only once. Of course, exempt entities would also be obligated to inform 
us of any change in their exempt status. The time for filing 
documentation of exempt status would be announced, pursuant to 
authority delegated to the Managing Director, by a public notice 
published in the Federal Register following completion of this 
proceeding.
    6. We are also requesting comment on a proposal to publish annually 
in the Federal Register lists of those commercial communication firms 
and businesses that have paid a regulatory fee for the preceding fiscal 
year. (We would not, however, publish information concerning regulatory 
fee payments by licensees for vanity call signs in the amateur radio 
service or by any other licensee that pays its regulatory fee at the 
same time the application fee is paid.) The information published would 
include the amount of the fee paid and the volume or units upon which 
the fee payments were based. This will enable fee payers to verify that 
their payments have been properly recorded and to bring errors to our 
attention, thereby reducing the burden on our fee payment verification 
process. We intend to publish the first such list once fee payments for 
FY 1997 are made and prior to our establishment of fees for FY 1998. In 
connection with publication of the lists, interested parties should be 
aware that, consistent with our existing rules, certain types of 
proprietary information may be entitled to confidential treatment. Fee 
payers who believe that they qualify should request confidentiality 
when filing the relevant information. See 47 CFR 0.459; see also 
Assessment and Collection of Regulatory Fees for the 1994 Fiscal Year, 
Memorandum Opinion and Order on Reconsideration, MD Docket No. 94-19, 
FCC 95-257, released June 22, 1995, 60 FR 34902 (July 5, 1995). All 
such confidentiality requests must, of course, be fully supported and 
meet all applicable legal standards. See 47 CFR 0.459(b),(c), and 
0.457(2)(i).
    7. Finally, we note that we could have adopted some of the above 
proposals without notice and comment because they constitute procedural 
changes to our regulatory fee payment collection and verification 
processes and procedures. See 5 U.S.C. 553(b)(3)(a). Nevertheless, we 
are requesting public comment, including comment on alternative 
processes and procedures, to help assure that our actions are the most 
effective available without imposing any undue burden on those subject 
to the payment of a regulatory fee. 1
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    \1\  As a separate matter, we are revising FCC Forms 159 and 
159-C to provide a certification statement to be signed by an 
individual owner or officer of the firm subject to the fee payment 
stating that the fee payment filed is accurate and complete and 
supported by the firm's internal accounting records.
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Procedural Matters

A. Ex Parte Rules

    8. This is a non-restricted notice and comment rulemaking 
proceeding. Ex parte presentations are permitted, except during the 
Sunshine Agenda period, provided they are disclosed pursuant to the 
Commission's rules. See 47 CFR 1.1203 and 1.1206.

B. Initial Regulatory Flexibility Analysis

    9. As required by the Regulatory Flexibility Act (Pub. L. 96-354, 
94 Stat. 1165, 5 U.S.C. 601 et seq. (1981) (RFA),

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the Commission has prepared an Initial Regulatory Flexibility Analysis 
(IRFA) of the expected impact on small entities of the proposals 
suggested in this document. The IRFA is set forth in the Attachment. 
Written public comments are requested with respect to the IRFA. These 
comments must be filed in accordance with the same filing deadlines for 
comments on the rest of the FNPRM, but they must have a separate and 
distinct heading, designating the comments as responses to the IRFA. 
The Commission shall send a copy of this FNPRM, including the IRFA, to 
the Chief Counsel for Advocacy of the Small Business Administration in 
accordance with the RFA, 5 U.S.C. Sec. 603(a).

C. Paperwork Reduction Act Compliance

Initial Paperwork Reduction Act of 1995 Analysis
    10. This FNPRM contains either a proposed or modified information 
collection. As part of its continuing effort to reduce paperwork 
burdens, we invite the general public to take this opportunity to 
comment on the information collections contained in this FNPRM, as 
required by the Paperwork Reduction Act of 1995, Pub. L. 104-13. Public 
and agency comments are due at the same time as other comments on this 
FNPRM. Comments should address: (a) Whether the proposed collection of 
information is necessary for the proper performance of the functions of 
the Commission, including whether the information shall have practical 
utility; (b) the accuracy of the Commission's burden estimates; (c) 
ways to enhance the quality, utility, and clarity of the information 
collected; and (d) ways to minimize the burden of the collection of 
information on the respondents, including the use of automated 
collection techniques or other forms of information technology.
    11. Written comments by the public on the proposed and/or modified 
information collections are due September 23, 1997. Written comments 
must be submitted to the Office of Management and Budget (OMB) on the 
proposed and/or modified information collections on or before 60 days 
after date of publication in the Federal Register. In addition to 
filing comments with the Secretary, a copy of any comments on the 
information collections contained herein should be submitted to Judy 
Boley, Federal Communications Commission, Room 234, 1919 M Street, 
N.W., Washington, DC 20554, or via the Internet to [email protected] and 
to Timothy Fain, OMB Desk Officer, 10236 NEOB, 725--17th Street, N.W., 
Washington, DC 20503 or via the Internet to [email protected].
    12. For additional information concerning the information 
collections contained in this FNPRM contact Judy Boley at 202-418-0214, 
or via the Internet at [email protected].

SUPPLEMENTARY INFORMATION:

    OMB Approval Number: None.
    Title: Assessment and Collection of Regulatory Fees for Fiscal Year 
1997.
    Form No.: None.
    Type of Review: New Collection.
    Respondents: Business or other for profit; individuals or 
households; not for profit institutions.
    Number of Respondents: To be determined.
    Estimated Time Per Response: To be determined.
    Total Annual Burden: To be determined.
    Needs and Uses: The Commission will require CMRS licensees to 
maintain, and make available upon request, documentation concerning the 
basis for their fee payments. Non-profit entities, exempt from 
regulatory fee requirements, will be required to submit, on a one-time 
basis, copies of their IRS determination letters or other documentation 
of non-profit status. This information is needed to ensure that the 
Commission is collecting the appropriate regulatory fees, as directed 
by Congress.

D. Authority and Further Information

    13. Accordingly, it is ordered that, pursuant to authority in 
Secs. 4(i) and (j), 9, and 303(r) of the Communications Act of 1934, as 
amended, 47 U.S.C. Sec. 154(i) and (j), 159, and 303(r) and procedures 
set forth in Secs. 1.415(b) and 1.419 of the Commission's Rules, 47 CFR 
1.415(6), 1.419, interested parties may file comments on or before 
August 14, 1997. All relevant comments will be considered by the 
Commission before final action is taken in this proceeding. To file 
formally in this proceeding, participants must file an original and 
four copies of all comments and supporting materials. If participants 
want each Commissioner to receive a personal copy of their comments, an 
original and nine copies must be filed. Comments should be sent to the 
Office of Secretary, Federal Communications Commission, Washington, 
D.C. 20554. Interested parties who do not wish to formally participate 
in this proceeding, may file informal comments at the same address. 
Comments will be available for public inspection during regular 
business hours, in the FCC Reference Room, Room 239, 1919 M St., N.W. 
20554.
    14. It is further Ordered that a copy of this further notice of 
proposed rulemaking, including the IRFA herein, will be sent to the 
Chief Counsel for Advocacy of the Small Business Administration, in 
accordance with the Regulatory Flexibility Act, 5 U.S.C. 603(a).
    15. Further information about this proceeding may be obtained by 
contacting Martha Contee at (202) 418-0260.

Initial Regulatory Flexibility Analysis

    16. Pursuant to the Regulatory Flexibility Act (RFA), the 
Commission has prepared the following Initial Regulatory Flexibility 
Analysis (IRFA) of the expected significant economic impact on small 
entities of the policies and rules in this Further Notice of Proposed 
Rulemaking (FNPRM). Written public comments are requested on the IRFA. 
These comments must be filed in accordance with the same filing 
deadlines as comments on the rest of the FNPRM, and should have a 
separate and distinct heading designating them as responses to the 
IRFA. The Commission shall send a copy of this FNPRM, including the 
IRFA, to the Chief Counsel for Advocacy of the Small Business 
Administration in accordance with the RFA, 5 U.S.C. 603(a).
    17. Need for and Objectives of the Proposed Rules. We are proposing 
to modify our collection procedures for regulatory fees in order to 
help assure increased accuracy and timeliness of regulatory fee 
payments. We seek comment on these proposals.
    18. Legal Basis. The proposed action is authorized under Sec. 4(i) 
and(j), 9, and 303(r) of the Communications Act of 1934, as amended, 47 
U.S.C. 154(i) and (j), 159, and 303(r).
    19. Description and Estimate of the Number of Small Entities To 
Which the Proposed Rules Will Apply. Under the RFA, small entities may 
include small organizations, small businesses, and small governmental 
jurisdictions. 5 U.S.C. 601(6). The RFA, 5 U.S.C. 601(3), generally 
defines the term ``small business'' as having the same meaning as the 
term ``small business concern'' under the Small Business Act, 15 U.S.C. 
632. A small business concern is one that: (1) Is independently owned 
and operated; (2) is not dominant in its field of operation; and (3) 
meets any additional criteria established by the Small Business 
Administration (SBA).
    20. The proposals in this FNPRM would potentially affect a very 
broad array of small entities, including small entities described as 
cable services or

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systems, common carrier services and related entities, international 
services, mass media services, and wireless and commercial mobile 
services. In the companion rulemaking document to this FNPRM--the 
Report and Order in this present docket, very recently released--we 
have extensively described the small entities that might be affected by 
this action, and have also described the numbers of such entities. (See 
``Final Regulatory Flexibility Analysis,'' Attachment A of Report and 
Order, MD Docket No. 96-186, FCC 97-215, released June 26, 1997, 62 FR 
37408 (July 11, 1997).) We hereby incorporate into this IRFA, by 
reference, those descriptive sections from the Report and Order.
    21. Description of Projected Reporting, Recordkeeping, and Other 
Compliance Requirements. With certain exceptions, the Commission's 
Schedule of Regulatory Fees applies to all Commission licensees and 
regulatees. In the companion Report and Order to this FNPRM and in the 
Commission's Rules, we have described the methodology used by affected 
entities to determine required fee amounts, the procedures for 
calculating and filing fee payments, the skills necessary to file, and 
the results of not filing in accordance with the rules. (See Report and 
Order, Attachment H and Secs. 1.1157 through 1.1167 of the Commission's 
Rules, 47 CFR 1.1157 through 1.1167.) We hereby incorporate into this 
IRFA, by reference, those descriptions. In addition, we note that the 
present proposals, if adopted, would require Commercial Mobile Radio 
Service (CMRS) licensees to maintain and make available to the FCC 
within 30 days of request, documentation concerning the basis for their 
fee payments and that these documents be retained by the payer for 
three years; would require that non-profit entities exempt from the 
regulatory fee requirement submit documentation of their non-profit 
status; and would direct the Commission to publish annually, in the 
Federal Register, a list of those firms and individuals who paid a fee 
for the preceding fiscal year and who engaged in the provision of 
communications for commercial purposes, along with the amount of the 
fee paid, and the volume or units upon which the fee payments were 
based. We seek comment on these proposals.
    22. Steps taken to minimize any significant economic impact on 
small entities, and significant alternatives considered and rejected. 
As described in the paragraph immediately above, the Commission is 
proposing certain modifications to the collection procedures for 
regulatory fees in order to help assure increased accuracy and 
timeliness of regulatory fee payments. Each of the above-described 
proposals that require compliance would entail some level of economic 
impact, and this impact would fall on some small entities. We believe, 
however, that these proposals, if adopted, would help ensure the 
integrity of the regulatory fees program. We seek comment on any 
possible alternatives that might lessen the economic impact on small 
entities while still furthering the goals of this proceeding.
    23. Federal rules that may duplicate, overlap, or conflict with the 
proposed rules. We are aware of no rules that may duplicate, overlap, 
or conflict with the proposed rules. We seek comment on this 
conclusion.

Federal Communications Commission.
William F. Caton,
Acting Secretary.
[FR Doc. 97-19657 Filed 7-24-97; 8:45 am]
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