[Federal Register Volume 64, Number 95 (Tuesday, May 18, 1999)]
[Rules and Regulations]
[Pages 26883-26885]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 99-12451]


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FEDERAL COMMUNICATIONS COMMISSION

47 CFR Part 1

[DA 99-745]


Limitations Waived on Payments in Settlement Agreements Among 
Parties in Contested Licensing Cases

AGENCY: Federal Communications Commission.


[[Page 26884]]


ACTION: Partial waiver of rules.

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SUMMARY: This document seeks to issue a limited waiver of the 
Commission's rules. The rules place limitations on settlements that are 
reached among parties in contested cases in order to prevent 
``greenmail.'' The Bureau waives these rules for a 90-day period, 
effective upon publication of this document in the Federal Register. 
The Bureau waives these rules to permit parties to resolve certain 
contested proceedings on file at the Commission as of April 16, 1999. 
Parties can seek dismissal or withdrawal of pending applications, 
petitions, other pleadings (including finder's preference requests), 
and informal objections filed with the Commission without limitation on 
the consideration promised, paid, or received for such dismissal or 
withdrawal.

DATES: The partial waiver of Sec. 1.935 (a) and (b) is effective May 
18, 1999 through August 16, 1999.

FOR FURTHER INFORMATION CONTACT: Donald E. Johnson, Policy and Rules 
Branch, Commercial Wireless Division, Wireless Telecommunications 
Bureau, at (202) 418-7240.

SUPPLEMENTARY INFORMATION: This document, Public Notice DA 99-745, 
released April 16, 1999 is available for inspection and copying during 
normal business hours in the FCC Reference Center, 445 Twelfth Street, 
SW, Washington DC. The complete text may be purchased from the 
Commission's copy contractor, International Transcription Service, 
Inc., 1231 20th Street, NW, Washington DC 20036 (202) 857-3800. The 
document is also available via the internet at http://www.fcc.gov/
Bureaus/Wireless/Public Notices/1999/index.html.

Synopsis

Introduction

    In this document, the Wireless Telecommunications Bureau (Bureau) 
issues a limited waiver of Secs. 1.935(a) and 1.935(b) of the 
Commission's rules. These rules place limitations on settlements that 
are reached among parties in contested cases in order to prevent 
``greenmail.'' The Bureau waives these rules for contested proceedings 
on file at the Commission as of April 16, 1999, the release date of 
this document, DA 99-745, to the extent specified herein, for a 90-day 
period, effective upon publication of this document in the Federal 
Register. The Bureau waives these rules to permit parties to resolve 
certain contested proceedings by seeking dismissal or withdrawal of 
pending applications, petitions, other pleadings (including finder's 
preference requests), and informal objections filed with the Commission 
without limitation on the consideration promised, paid, or received for 
such dismissal or withdrawal.
    This document also permits third parties to contribute to the 
settlement of certain contested proceedings without limitation on the 
consideration promised or paid. This document does not, however, waive 
the Commission's policy that prohibits settlements involving the award 
of licenses to persons who were not parties to the proceeding.
    This 90-day waiver does not apply to any applications that are in 
hearing status. This document waives only the greenmail limitations on 
the settlement of pending matters; it does not waive any other 
Commission prohibitions or limitations on settlements. This document 
does not permit parties to ``settle'' mutually exclusive applications 
that were dismissed pursuant to the Paging Second Report and Order. 
Revision of Part 22 and Part 90 of the Commission's Rules to Facilitate 
Future Development of Paging Systems, Second Report and Order and 
Further Notice of Proposed Rule Making, 62 FR 11616, released February 
24, 1997. Pursuant to the Second Report and Order, the Commercial 
Wireless Division of the Wireless Telecommunications Bureau dismissed, 
without prejudice, all pending mutually exclusive paging applications 
and all pending paging applications (other than applications for 
nationwide and shared channels) filed after July 31, 1996. Revision of 
Part 22 and Part 90 of the Commission's Rules to Facilitate Future 
Development of Paging Systems, WT Docket No. 96-18, DA 98-2534, Order 
(Wireless Telecomm. Bur. December 14, 1998). Unless the Commission 
modifies these decisions on reconsideration, parties may not ``settle'' 
these applications.
    This document also does not permit parties to ``settle'' mutually 
exclusive applications that were dismissed pursuant to Amendment of the 
Commission's Rules Regarding the 37.0-38.6 GHz and 38.6-40.0 GHz Bands, 
ET Docket No. 95-183, Report and Order and Second Notice of Proposed 
Rule Making, 63 FR 03075, released November 3, 1997. In this order, the 
Commission dismissed (1) all applications for which the 60-day filing 
window was not completed as of the date of the Freeze Order, DA 95-2341 
(Chief, Wireless Telecom. Bureau, released November 13, 1995); (2) all 
major amendments filed on or after the release of the Freeze Order; and 
(3) all mutually exclusive applications that were not cured by an 
amendment-of-right filed on or before the release of the Report and 
Order and Notice of Proposed Rule Making, 61 FR 02452 released December 
15, 1995. Unless the Commission modifies these decisions on 
reconsideration, parties may not ``settle'' these applications.
    Parties are still required to seek Commission approval of the 
withdrawal or dismissal of applications, petitions, other pleadings, or 
informal objections but, during this 90-day period, they will not be 
required to certify that they have not received or will not receive 
consideration in excess of legitimate and prudent expenses in exchange 
for seeking a withdrawal or dismissal. Parties are not required to 
provide an itemized accounting or disclose the amount of consideration 
received or promised as the result of any settlement agreement.
    The Bureau underscores its continuing strong support, however, for 
the rule limiting payments in settlement cases. We are taking this 
action because of the many cases currently pending before the Bureau, 
some of which are more than five years old. Providing for a settlement 
period, and a limited waiver of the ``greenmail'' rules will facilitate 
the resolution of these cases and serve the public interest by removing 
uncertainty that surrounds unresolved, pending applications and 
licensing matters. In addition, a limited settlement window will allow 
parties to resolve disputes where the cost and delay of protracted 
litigation will further hamper the provision of wireless service to the 
public. It does not appear that a limited, one-time waiver of the rules 
imposed on settlement agreements would either reward improper 
speculation or encourage the filing of abusive pleadings in the future.
    The parties to any settlement agreement must receive Commission 
approval of the settlement before the settlement can take effect. The 
parties must file a request for approval of the settlement agreement no 
later than 90 days after publication of this document in the Federal 
Register. Each request for approval of a settlement agreement must 
contain a copy of all written agreements related to the settlement. All 
such settlement agreements must be properly executed, contain all 
supporting documentation, and demonstrate that the settlement 
constitutes a complete resolution of the case. Parties can redact the 
amount of consideration promised, paid, or received.
    In addition, the first page of each request for approval of a 
settlement agreement must contain the following

[[Page 26885]]

information: (1) a caption at the top of the page stating the 
following: ``Settlement Request Pursuant to DA 99-745;'' (2) a list of 
the parties to the contested proceeding for which settlement is being 
proposed; (3) a statement indicating the radio service(s) to which the 
settlement relates; (4) a list of all the FCC file numbers related to 
the settlement; and (5) a list of all the station call signs related to 
the settlement. Each request for approval of a settlement agreement 
also must include either a list of all applications and pleadings that 
were filed in the contested case or copies of the applications and 
pleadings. Further, all requests for approval of a settlement agreement 
must include a brief summary of the contested case that is being 
settled. Finally, if a settlement agreement concerns a contested case 
which requires a waiver, the parties must include a request for a 
waiver at the time of filing.
    No settlement agreement will take effect until the Bureau releases 
a public notice approving the proposed settlement. The Bureau reserves 
the right to deny a request for approval of a settlement, if we find 
that a settlement in a particular case would not serve the public 
interest. Notwithstanding this 90-day waiver, the Commission will 
continue to take action on pending cases. Accordingly, parties are 
encouraged to reach settlements and file requests for approval of 
settlement agreements as expeditiously as possible.
    No later than 90 days following publication of this document in the 
Federal Register, an original and four copies of all proposed 
settlement agreements must be filed with the Commission's Secretary, 
Magalie Roman Salas, 445 Twelfth Street, SW, TW-A325, Washington, DC 
20554, in accordance with section 1.51(c) of the Commission's rules. In 
addition, one copy of each pleading should be delivered to (1) Policy 
and Rules Branch, Commercial Wireless Division, Wireless 
Telecommunications Bureau, Federal Communications Commission, 445 
Twelfth Street, SW 4-A207, Washington, DC 20554; and (2) Public 
Reference Room, Federal Communications Commission, 445 Twelfth Street, 
SW, Washington, DC 20554.

Federal Communications Commission.
Dianne J. Cornell,
Associate Chief, Wireless Telecommunications Bureau.
[FR Doc. 99-12451 Filed 5-17-99; 8:45 am]
BILLING CODE 6712-01-P