[Federal Register Volume 62, Number 157 (Thursday, August 14, 1997)]
[Rules and Regulations]
[Pages 43481-43484]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 97-20899]


-----------------------------------------------------------------------

FEDERAL COMMUNICATIONS COMMISSION

47 CFR Part 68

[CC Docket No. 87-124; FCC 97-242]


Access to Telecommunications Equipment and Services by Persons 
With Disabilities (Hearing Aid Compatibility)

AGENCY: Federal Communications Commission.

ACTION: Final rule.

-----------------------------------------------------------------------

SUMMARY: This action amends Commission rules regarding HAC, which would 
have required all telephones manufactured or imported for use in the 
United States after November 1, 1998 to contain a volume control 
feature. Under the amended rules, this compliance date is extended to 
January 1, 2000. Furthermore, the Commission has made conforming 
amendments to its hearing aid compatibility rules so that workplaces, 
hotels and motels, and confined settings (e.g, hospitals and nursing 
homes) will not be required to ensure that new or replacement 
telephones contain a volume control feature until January 1, 2000, 
parallel with the manufacturing requirements. This action was taken in 
response to a petition for reconsideration filed by the Consumer 
Electronics Manufacturers Association (CEMA).

EFFECTIVE DATE: September 15, 1997.

FOR FURTHER INFORMATION CONTACT: Andy Firth, Attorney, 202/418-1898, 
Fax 202/418-2345, TTY 202/418-2224, [email protected], Network Services 
Division, Common Carrier Bureau.

SUPPLEMENTARY INFORMATION: This summarizes the Commission's Order on

[[Page 43482]]

Reconsideration in the matter of Access to Telecommunications Equipment 
and Services by Persons With Disabilities, (CC Docket 87-124, adopted 
July 3, 1997, and released July 11, 1997.) The file is available for 
inspection and copying during the weekday hours of 9 a.m. to 4:30 p.m. 
in the Commission's Reference Center, Room 239, 1919 M Street, N.W., or 
copies may be purchased from the Commission's duplicating contractor, 
ITS, Inc., 2100 M Street, N.W., Suite 240, Washington D.C. 20037, phone 
202/857-3800.

Paperwork Reduction Act

    No impact.

Analysis of Proceeding

    On June 27, 1996, the Commission adopted a Report and Order (R&O) 
(FCC 96-285), 61 FR 42181 (August 14, 1996), which was released on July 
3, 1996. The R&O, among other things, required that as of November 1, 
1998, all telephones manufactured or imported for use in the United 
States have a volume control feature. See 47 CFR 68.6. The R&O also 
required that, as of November 1, 1998, all replacement telephones and 
all newly purchased telephones in workplaces, confined settings, and 
hotels and motels must be equipped with volume control, in addition to 
having electro-magnetic coil hearing aid-compatibility. See 47 CFR 
68.112 (b)(3), (b)(5), and (b)(6). The R&O included a technical 
specification for volume control. See 47 CFR 68.317.
    On September 13, 1996, the Consumer Electronics Manufacturers 
Association (CEMA) filed a Petition for Reconsideration of the R&O, 
specifically for reconsideration of the rule adopted under 47 CFR 68.6, 
which would have required all telephones manufactured or imported for 
use in the United States after November 1, 1998, to contain volume 
control. CEMA asserted that the rule as adopted would cause undue 
financial burdens upon telephone equipment manufacturers, and also 
asserted that the rule exceeded the Commission's authority under the 
Hearing Aid Compatibility Act of 1988, 47 U.S.C. 610 (HAC Act). In the 
alternative, CEMA urged the Commission to find that 47 CFR 68.6 should 
only apply to new telephone models registered under part 68 after 
November 1, 1998, as opposed to all telephone products manufactured 
after that date. CEMA asserted that this ``grandfathering'' of existing 
telephone models would, among other things, lessen burdens upon the 
manufacturing industry by avoiding the need to re-tool existing 
production lines.
    In its Order on Reconsideration, the Commission denied CEMA the 
specific relief requested in its Petition. The Commission concluded 
that CEMA's proposal would fall short of the HAC Act's requirement that 
persons with hearing disabilities have reasonable access to the 
telephone network, because there would be no assurance that 
manufacturers will phase out the production of existing models without 
volume control. By requiring volume control as a standard feature in 
the manufacture of all telephones, the intent of the HAC Act is 
furthered by minimizing the risk that persons with hearing disabilities 
would be unable to access the telephone network in the event of an 
emergency. The Commission also concluded that CEMA's argument that it 
failed to consider the costs and benefits of the volume control rule to 
be without merit, because in the R&O the Commission specifically 
considered the costs and benefits of the rule, and concluded that the 
costs of the volume control rule were not such a major obstacle as to 
negate the benefits of the rule. The Commission concluded that CEMA 
presented no further facts that would compel it to depart from this 
finding made in the R&O.
    In the interest of minimizing potential burdens on the 
manufacturing industry, however, the Commission concluded that the 
volume control compliance date at 47 CFR 68.6 should be extended by 
fourteen (14) months, to January 1, 2000. The Commission noted that 
upon this date, manufacturers would have had three and one-half (3\1/
2\) years to adjust their production cycles to comply with new volume 
control manufacturing requirements, a generous compliance timetable. 
Finally, the Commission adjusted existing rules at 47 CFR 68.112 that 
would have required workplaces, hotels and motels, and confined 
settings to provide telephones with volume control as of November 1, 
1998, so that such establishments would not be required to comply until 
January 1, 2000, parallel with the manufacturing requirements.

Supplemental Final Regulatory Flexibility Analysis

    Pursuant to the Regulatory Flexibility Act of 1980, 5 U.S.C. 603, 
the Commission's Supplemental Final Regulatory Flexibility Analysis in 
this proceeding is as follows:
    1. Supplemental Final Regulatory Flexibility Analysis: As required 
by the Regulatory Flexibility Act (RFA), 5 U.S.C. 603, an Initial 
Regulatory Flexibility Analysis (IRFA) was incorporated in the Notice 
of Proposed Rulemaking (NPRM). The Commission sought written public 
comments in the NPRM, including on the IRFA. In addition, pursuant to 
the RFA, 5 U.S.C. 603, a Final Regulatory Flexibility Analysis (FRFA) 
was incorporated in the Report and Order. Those analyses conformed to 
the RFA. This Supplemental Final Regulatory Flexibility Analysis 
(SFRFA) in this Order on Reconsideration also conforms to the SBREFA. 
The Commission's SFRFA in this Order on Reconsideration is as follows:
    a. Need for, and Objectives of this Order on Reconsideration: The 
need for and objectives of the rules adopted in this Order on 
Reconsideration are the same as those discussed in the FRFA in the 
Report and Order. In general, the rules adopted herein amend the 
Commission's rules at 47 CFR 68.6 to require that as of January 1, 
2000, all wireline telephones manufactured or imported for use in the 
United States must have volume control. This represents an amendment of 
the original final rule in the Report and Order requiring all 
telephones manufactured or imported for use in the U.S. after November 
1, 1998, to have volume control. For reasons explained in this Order 
and Reconsideration, the Commission has decided to extend its original 
November 1, 1998 compliance timeline for this rule by fourteen (14) 
months, to January 1, 2000. The Commission has also made conforming 
amendments to portions of 47 CFR 68.112, which require establishments 
such as workplaces, hospitals and hotels to provide volume control 
telephones in their facilities. These establishments will not be 
required to ensure that newly replaced or installed telephones must 
have volume control until after January 1, 2000. This likewise reflects 
a 14-month extension of the original November 1, 1998 timelines for 
such establishments adopted in the Report and Order.
    b. Summary of Significant Issues Raised by the Public Comments In 
Response to the FRFA: No comments were submitted specifically in 
response to the FRFA. In its petition for reconsideration, which was 
the initiating document for this Order on Reconsideration, the Consumer 
Electronics Manufacturers Association (CEMA) asserted, inter alia, that 
if 47 CFR 68.6 was to be applicable to all telephone models on the 
compliance date, and not only to new models which are registered under 
part 68 of the Commission's rules after that date, manufacturers would 
incur significant expenses caused by the ``retooling'' of existing 
production cycles prior to November 1, 1998. Several telephone

[[Page 43483]]

equipment manufacturers also submitted comments in support of CEMA's 
petition for reconsideration, stating that the rule as adopted in the 
Report and Order would impose undue burdens on their manufacturing 
processes and resources.
    c. Description and Estimate of Number of Small Entities to Which 
Rules Will Apply:
    (1) Under the RFA, small entities may include small organizations, 
small businesses, and small governmental organizations. The RFA 
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 which (1) is 
independently owned and operated; (2) is not dominant in its field of 
operation; and (3) satisfies any additional criteria established by the 
Small Business Administration (SBA). Id.
    (2) The description and estimate of the number of small businesses 
to which the rules will apply set forth in the FRFA in the Report and 
Order also applies to the rules adopted in this Order on 
Reconsideration. The same four industry categories identified in the 
FRFA are also subject to the rules adopted in this Order on 
Reconsideration: (a) Workplaces; (b) confined settings, such as 
hospitals and nursing homes; (c) hotels and motels; and (d) importers 
and manufacturers of telephones for use in the United States. The 
determination of whether or not an entity within these industry groups 
is small is made by the Small Business Administration (SBA). These 
standards also apply in determining whether an entity is a small 
business for purposes of the RFA. The detailed analysis and estimate of 
the number of small entities within each of these above four industry 
categories in the FRFA to the Report and Order is also applicable to 
the rules adopted in this Order on Reconsideration.
    d. Description of Projected Reporting, Recordkeeping and Other 
Compliance Requirements:
    (1) Reporting and Recordkeeping: No additional reporting 
requirements beyond those identified in the FRFA to the Report and 
Order are imposed by this Order on Reconsideration.
    (2) Other Compliance Requirements:
    (a) The rules adopted in this Report and Order require that on or 
after January 1, 2000, owners of workplaces, confined settings, and 
hotels and motels must ensure that newly installed or replacement 
telephones have volume control. These requirements will affect owners 
of workplaces, confined settings, and hotels and motels.
    (b) The rules also require that on or after January 1, 2000, all 
telephones manufactured or imported for use in the United States must 
have volume control. These rules would affect small as well as large 
domestic manufacturers and importers of telephones.
    e. Steps Taken to Minimize Significant Economic Burdens on Small 
Entities, and Significant Alternatives Considered:
    (1) The Commission's efforts to learn of and respond to small 
business concerns detailed in the FRFA to the Report and Order are 
likewise applicable to this SFRFA. In applying the rules adopted in 
this Order on Reconsideration, the Commission has sought to minimize 
any disproportionate burden on small entities. The Commission's efforts 
described in the FRFA to the Report and Order are also applicable to 
the rules adopted in this Order on Reconsideration. In particular, the 
Commission's decision in this Order on Reconsideration to extend the 
date by which all telephones manufactured or imported for use in the 
United States must have volume control is a direct result of the 
Commission's consideration of the impact of the rule on small entities 
and manufacturers. Furthermore, the Commission's decision to also 
extend compliance dates for workplaces, confined settings, and hotels 
is a result of consideration of the potential impact of the rule on 
small business establishments.
    (2) Under Section 610(e) of the Hearing Aid Compatibility Act, the 
Commission must consider the costs, as well as the benefits, of the 
proposed rules to all telephone users, including persons with and 
without hearing disabilities. In the NPRM, the Commission solicited 
comment on the costs to establishments of providing volume control and 
hearing aid compatible telephones. After reviewing the comments, the 
Commission concluded in the Report and Order that the new rules will 
not impose significant additional costs on telephone users, 
manufacturers or establishments, and that any costs are significantly 
outweighed by the benefits to be achieved. Likewise, in this Order on 
Reconsideration the Commission specifically considered the costs and 
benefits of the rules to all telephone users in its decision to extend 
the original compliance date for volume control by fourteen (14) 
months.
    (3) Small entities will be among the beneficiaries of the 
Commission's new rules. Under the new rules, telephones in workplaces, 
confined settings and hotels and motels will be more accessible to 
persons with hearing disabilities. These changes may lead to new 
business for hotels and motels and confined settings, and workplaces 
may be able to hire better employees, since the pool of potential 
employees will be widened to include persons with hearing disabilities. 
In addition, the level of public safety will increase in all three 
settings, thereby benefitting both the business setting and the public 
at large. The volume control manufacturing requirement probably will 
increase the consumer demand for volume control telephones, benefitting 
large and small manufacturers alike, due to the fact that volume 
control is a feature useful not only to people with hearing 
disabilities, but to non-disabled telephone users as well. Furthermore, 
to the extent that the rule amendments may allow smaller manufacturers 
and suppliers more time to recoup costs sunk in any remaining equipment 
inventory and allow them to expand their marketing options, they are 
consistent with section 257 of the Communications Act, as amended, 47 
U.S.C. 257. That section requires, among other things, that the 
Commission eliminate marker entry barriers for small businesses who may 
provide parts or services to providers of telecommunications services 
and information services. Id. at section 257(a).
    (4) The Commission rejected the proposal of the Consumer 
Electronics Manufacturers Association in its petition for 
reconsideration that the volume control rules apply only to new 
telephone models registered under part 68 of the Commission's rules 
after the compliance date. The Commission concluded that this approach 
would mean that upon the compliance date, some telephone models would 
be without volume control, which would not further Congressional intent 
in the HAC Act that persons with hearing disabilities have reasonable 
access to the telephone network. Rather, the Commission concluded that 
by extending the compliance timeline by an additional fourteen (14) 
months, potential burdens on small entities could be reduced, while at 
the same time furthering the goals of the HAC Act to provide access to 
the telephone network for people with hearing disabilities.
    f. Summary of Projected Reporting, Recordkeeping, and Other 
Compliance Requirements:
    On or after January 1, 2000, all telephones manufactured or 
imported for use in the United States must have

[[Page 43484]]

volume control; and newly purchased and replacement telephones in 
workplaces, confined settings and hotels and motels must have volume 
control on or after January 1, 2000. There are no other recordkeeping 
or other compliance requirements.
    g. Report to Congress: The Commission will include a copy of this 
Supplementary Final Regulatory Flexibility Analysis, along with this 
Order on Reconsideration, in a report to Congress pursuant to the Small 
Business Regulatory Enforcement Fairness Act of 1996, 5 U.S.C. Section 
801(a)(1)(A). A copy of this SFRFA (or summary thereof) is also 
published herein.

Ordering Clauses

    Accordingly, It Is Orderd that pursuant to Sections 1, 4, 405, and 
710 of the Communications Act of 1934, as amended, 47 U.S.C. 151, 154, 
405 and 610, part 68 of the Commission's rules Is Amended as set forth 
below.
    2. It Is Further Ordered that, pursuant to Sections 1, 4, 405, and 
710 of the Communications Act of 1934, as amended, 47 U.S.C. 151, 154, 
405 and 610, the Petition for Reconsideration filed by the Consumer 
Electronics Manufacturers Association is granted to the extent 
indicated herein, and otherwise Denied.
    3. It Is Further Ordered that the rule amendments set forth below 
shall be effective September 15, 1997.

List of Subjects in 47 CFR Part 68

    Administrative practice and procedure, Communications common 
carriers, Communications equipment, Hearing aid compatibility, 
Labeling, Reporting and recordkeeping requirements, Telephone, Volume 
control.

Federal Communications Commission.
William F. Caton,
Acting Secretary.

Rule Changes

    Part 68 of Title 47 of the Code of Federal Regulations is amended 
as follows:

PART 68--CONNECTION OF TERMINAL EQUIPMENT TO THE TELEPHONE NETWORK

    1. The authority citation for Part 68 is revised to read as 
follows:

    Authority: 47 U.S.C. 154, 155, 303.

    2. Section 68.6 is revised to read as follows:


Sec. 68.6  Telephones with volume control.

    As of January 1, 2000, all telephones, including cordless 
telephones, as defined in Sec. 15.3(j) of this chapter, manufactured in 
the United States (other than for export) or imported for use in the 
United States, must have volume control in accordance with Sec. 68.317. 
Secure telephones, as defined by Sec. 68.3 are exempt from this 
section, as are telephones used with public mobile services or private 
radio services.
    3. Section 68.112 is amended by revising paragraphs (b)(3)(ii), 
(b)(3)(iii), (b)(3)(iv), (b)(5)(ii), and (b)(6)(i), to read as follows:


Sec. 68.112  Hearing aid-compatibility.

* * * * *
    (b) * * *
    (3) * * *
    (ii) As of January 1, 2000 or January 1, 2005, whichever date is 
applicable, there shall be a rebuttable presumption that all telephones 
located in the workplace are hearing aid compatible, as defined in 
Sec. 68.316. Any person who identifies a telephone as non-hearing aid-
compatible, as defined in Sec. 68.316, may rebut this presumption. Such 
telephone must be replaced within fifteen working days with a hearing 
aid compatible telephone, as defined in Sec. 68.316, including, on or 
after January 1, 2000, with volume control, as defined in Sec. 68.317.
    (iii) Telephones, not including headsets, except those headsets 
furnished under paragraph (b)(3)(i)(A) of this section, that are 
purchased, or replaced with newly acquired telephones, must be:
    (A) Hearing aid compatible, as defined in Sec. 68.316, after 
October 23, 1996; and
    (B) Include volume control, as defined in Sec. 68.317, on or after 
January 1, 2000.
    (iv) When a telephone under paragraph (b)(3)(iii) of this section 
is replaced with a telephone from inventory existing before October 23, 
1996, any person may make a bona fide request that such telephone be 
hearing aid compatible, as defined in Sec. 68.316. If the replacement 
occurs on or after January 1, 2000, the telephone must have volume 
control, as defined in Sec. 68.317. The telephone shall be provided 
within fifteen working days.
* * * * *
    (5) * * *
    (ii) Telephones that are purchased, or replaced with newly acquired 
telephones, must be:
    (A) Hearing aid compatible, as defined in Sec. 68.116, after 
October 23, 1996; and
    (B) Include volume control, as defined in Sec. 68.317, on or after 
January 1, 2000.
* * * * *
    (6) * * *
    (i) Anytime after October 23, 1996, if a hotel or motel room is 
renovated or newly constructed, or the telephone in a hotel or motel 
room is replaced or substantially, internally repaired, the telephone 
in that room must be:
    (A) Hearing aid compatible, as defined in Sec. 68.316, after 
October 23, 1996; and
    (B) Include volume control, as defined in Sec. 68.317, on or after 
January 1, 2000.
* * * * *
[FR Doc. 97-20899 Filed 8-13-97; 8:45 am]
BILLING CODE 6712-01-P