[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),
[[Page 40038]]
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 jboley@fcc.gov and
to Timothy Fain, OMB Desk Officer, 10236 NEOB, 725--17th Street, N.W.,
Washington, DC 20503 or via the Internet to fain____t@al.eop.gov.
12. For additional information concerning the information
collections contained in this FNPRM contact Judy Boley at 202-418-0214,
or via the Internet at jboley@fcc.gov.
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]
BILLING CODE 6712-01-P
