1998 Biennial Regulatory Review of Accounts Settlements in the Maritime and Maritime Mobile-Satellite Radio Services and Withdrawal of the Commission as an Accounting Authority

FEDERAL COMMUNICATIONS COMMISSION

47 CFR Part 3

[IB Docket No. 98-96, FCC 98-123]

1998 Biennial Regulatory Review of Accounts Settlements in the

Maritime and Maritime Mobile-Satellite Radio Services and Withdrawal of

the Commission as an Accounting Authority

AGENCY: Federal Communications Commission.

ACTION: Proposed rule.

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SUMMARY: The Federal Communication Commission adopted a Notice of

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Proposed Rulemaking (NPRM) to streamline further the rules governing

the regulation and authorization of private accounting authorities for

maritime mobile, maritime satellite, aircraft, and hand-held terminal

radio services. The Commission proposes to withdraw from its accounting

authority function and instead to rely upon private accounting

authorities, require private authorities to deal with the public in a

non-discriminatory manner, and designate a new accounting authority of

last resort. The Commission believes that its function as an accounting

clearinghouse is no longer necessary and that its withdrawal from

performing this function will serve the public interest. The proposals

will benefit the public because they will promote competition in the

settlement of maritime radio accounts.

DATES: Comments are due on or before August 24, 1998; and reply

comments are due on or before September 9, 1998. Written comments by

the public on the proposed information collections are due August 24,

1998.

ADDRESSES: Office of the Secretary, Federal Communications Commission,

1919 M Street, N.W., Room 222, Washington, D.C. 20554. A copy of any

comments on the information collections contained herein should be

submitted to Judy Boley, Federal Communications Commission, Room 234,

1919 M St., N.W., Washington, D.C. 20554.

FOR FURTHER INFORMATION CONTACT: John Copes, Attorney-Advisor,

Multilateral and Development Branch, Telecommunications Division,

International Bureau, (202) 418-1478. For additional information

concerning the information collections contained in this NPRM contact

John Copes at (202) 418-1478, or via the Internet at [email protected].

SUPPLEMENTARY INFORMATION: This is a summary of the Commission's NPRM,

FCC 98-123, adopted on June 18, 1998, and released on July 17, 1998.

The full text of this NPRM is available for inspection and copying

during normal business hours in the FCC Reference Center (Room 239) of

the Federal Communications Commission, 1919 M Street, N.W., Washington,

D.C. 20554. The complete text of this NPRM may also be purchased from

the Commission's copy contractor, International Transcription Service,

Inc., 1231 20th Street, N.W., Washington, D.C. 20036, (202) 857-3800.

Summary of NPRM

1. The Commission adopted an NPRM (FCC 98-123) proposing to

withdraw from performing the functions of an accounting authority and

to streamline the rules governing the regulation of private accounting

authorities for maritime mobile, maritime satellite, aircraft, and

hand-held terminal radio services. The Commission initiated this

proceeding in response to section 11 of the Communications Act of 1934,

which requires the Commission to review all regulations that apply to

operations or activities of providers of telecommunications services

and to repeal or modify any regulation that it determines to be no

longer necessary in the public interest. Accordingly, the Commission

has begun a comprehensive 1998 biennial review of telecommunications

and other regulations that are overly burdensome or no longer serve the

public interest. The Commission seeks comment on the proposals

contained in this NPRM.

2. In this proceeding, the Commission proposes to withdraw from

performing the functions of an accounting authority including all

services for which the FCC now provides clearinghouse service. The

Commission will continue to operate as the administrator of all U.S.-

certified accounting authorities and the basic rules and procedures for

applications, services, and procedures will continue to govern. Because

other federal agencies have relied upon the FCC for settlements on

their accounts, the Commission specifically requests the governmental

agencies to comment on this proposal as to whether they have any

special needs that would require it to continue to serve as a

clearinghouse for governmental agencies.

3. The Commission seeks comment on the proposal to amend section

3.10(e) to require private accounting authorities to provide service to

anyone making a reasonable request for service, without undue or unjust

discrimination, and impose charges that are reasonable and non-

discriminatory. The rules already require that applicants for

accounting authority certification serve the public on a reasonable and

non-discriminatory basis. To make these obligations more explicit, the

Commission proposes to amend the first sentence of Sec. 3.10(e) to read

as follows:

Section 3.10(e). Applicants must offer their services to any

member of the public making a reasonable request therefor, without

undue discrimination against any customer or class of customer, and

charge reasonable and non-discriminatory fees for services.

This change does not alter the substance of the obligation already

created by Section 3.10(e) but is intended only as a clarification that

private entities have a duty to deal with the public in a non-

discriminatory manner.

4. Historically, the FCC has acted as the accounting authority of

last resort; that is foreign telecommunications operators have sent to

the Commission all accounts where the customer has not designated a

specific accounting authority. If the Commission withdraws from acting

as an accounting authority, it will be necessary to provide an

alternative mechanism. The Commission seeks comment on designating a

new accounting authority of last resort. Some of the options include:

designating a private accounting authority, requiring customers to pre-

subscribe to an accounting authority or to designate an authority on

every message, or developing a formula for distributing messages

without a designated authority among several private accounting

authorities. While a formula would make it easier for the customer, and

would yield a fair distribution of messages among authorities, it would

require an administrator and could increase the cost of the accounts-

settlement function. The Commission seeks comment on this issue as

well.

5. The Commission also seeks comment on its proposal to allow

``grandfathered'' entities, those which already held interim

certification as accounting authorities, to continue their prior

pattern of activities and exempt them from the requirement to deal with

the public at large. In its 1996 Report and Order, 61 FR 20155

(published May 6, 1996), adopting rules for certifying accounting

authorities, the Commission created an exemption for one entity that

had served as accounting authorities only because it owns and operates

the vessels for which it settles charges. The Commission tentatively

concludes that maintaining the status of this grandfathered entity and

continuing to exempt it from the requirement to deal with the public at

large will avoid working an unnecessary hardship on it since it does

not seek or derive profit from performing the functions of an

accounting authority. However, should all 25 Accounting Authority

identification Codes (AAIC), be assigned and new codes become

necessary, the Commission reserves the right to require this

grandfathered entity to serve the public generally or to surrender its

code for reassignment to an entity who will serve the public

indiscriminately. The Commission proposes to retain this reservation in

the regulation of private

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accounting authorities established in this proceeding.

6. The Commission proposes to allow applicants with applications

for accounting authority certification pending before it to amend their

applications to conform to the new rules. The Commission tentatively

concludes that the public interest would be served by giving applicants

an opportunity to amend their applications by showing how they propose

to fulfill the non-discrimination obligation and allowing the public

top address these entities= ability to perform that function.

7. The Commission proposes to amend the ``Application For

Certification As An Accounting Authority,'' FCC Form 44 in the Maritime

and Maritime Satellite Radio Service Regulations, so as to include a

certification term of intent to conduct settlements on a non-

discriminatory basis. The FCC also proposes that all applicants with

accounting-authority applications pending before the Commission amend

their Form 44 submissions within 60 days after the release of a Report

and Order in this proceeding specifically to affirm that they will

serve all customers requesting their services on a non-discriminatory

basis.

Ex Parte

8. This is a non-restricted (i.e., permit-but-disclose) notice-and-

comment rulemaking proceeding. Ex parte presentations are permitted,

except during the Sunshine Agenda period, provided that they are

disclosed as provided in the Commission's rules. See generally 47 CFR

1.1202, 1.1203, 1.1206. Persons making oral ex parte presentations are

reminded that memorandums summarizing the presentations must contain

summaries of the substance of the presentations and not merely a

listing of the subjects discussed. More than a one or two sentence

description of the views and arguments presented is generally required.

See 47 CFR 1.1206(b)(2), as revised. Other rules pertaining to oral and

written presentations are set forth in 1.1206(b) as well.

Regulatory Flexibility Act

9. As required by section 603 of the Regulatory Flexibility Act,

the Commission has prepared an Initial Regulatory Flexibility Analysis

(IRFA) of the expected impact on small entities of the proposals

contained in the NPRM. The IRFA is set forth in the attached Rule

Changes. 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 NPRM, but they must have a separate and

distinct heading designating them as responses to the Initial

Regulatory Flexibility Analysis. The Commission's Office of Public

Affairs, Reference Operations Division, shall send a copy of this NPRM,

including the Initial Regulatory Flexibility Analysis, to the Chief

Counsel for Advocacy of the Small Business Administrations in

accordance with paragraph 603(a) of the Regulatory Flexibility Act.

Public Law 96-354, 94 Stat. 1164, 5 U.S.C. 601 et seq. (1981).

Initial Paperwork Reduction Act of 1995 Analysis

10. This NPRM contains a proposed information collection. As part

of the Commission's continuing effort to reduce paperwork burdens, it

invites the general public and the Office of Management and Budget

(OMB) to comment on the information collections contained in this NPRM,

as required by the Paperwork Reduction Act of 1995, Public Law 104-13.

Public and agency comments are due August 24, 1998. Comments should

address: (a) whether the proposed collection of information is

necessary for the proper performance of the functions of the

Commission; (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.

Notice and Comment Provision

11. Pursuant to Section 1.415 of the Commission's Rules, 47 CFR

1.415 (1997), interested persons may become parties to this proceeding

by filing comments on these proposals on or before August 24, 1998, and

reply comments on or before September 9, 1998. All relevant and timely

comments will be considered by the Commission before final action is

taken in this proceeding. In reaching its decision, the Commission may

take into consideration information and ideas not contained in the

comments, provided that such information or a writing indicating the

nature and source of such information is placed in the public file, and

provided that the Commission's reliance on such information is noted in

the Report and Order.

12. Parties in this proceeding may file comments and replies on

paper or electronically. Under Section 1.419 of the Commission's Rules,

47 CFR 1.419 those filing comments on paper must file an original and

four copies of all comments, reply comments, and supporting documents.

If parties want each Commissioner to receive a personal copy of their

comments, they must file an original plus nine copies. Persons who wish

to participate informally may submit two copies of their comments,

stating thereon the docket number of this proceeding. Comments and

reply comments should be sent to the Office of the Secretary, Federal

Communications Commission, 1919 M St., N.W., Room 222, Washington, D.C.

20554. Additionally, parties must file a copy of their comments,

replies and supporting documents with the Commission's copy contractor,

International Transcription Service, Inc., 1231 20th St., N.W.,

Washington, D.C. 20037. Comments and reply comments will be available

for public inspection during regular business hours in the FCC

Reference Center (Room 239) at that address. For additional information

about this proceeding, please contact John Copes at (202) 418-1478.

13. Pursuant to Section 1.49(f) of the Commission's Rules, 47 CFR

1.49(f), Parties may file their comments, replies and supporting

documents in electronic form via the Internet. Such parties should use

the Commission's Electronic Comment Filing System, which they can

access using the following Internet address: http://www.fcc.gov/e-

file/ecfs.html>. Further information on the process of submitting

comments electronically is available at http://www.fcc.gov/e-file/>.

Pursuant to Sec. 1.419(d) of the Commission's Rules, 47 CFR 1.419(d),

Parties need file only one copy of an electronic submission. In

completing the transmittal screen, a party filing a comment, reply or

supporting document should include his or her full name, U.S. Postal

Service mailing address and the lead Docket number for this proceeding,

which is IB Docket No. 98-96. The Commission will consider

electronically filed comments that conform to the guidelines of this

section part of the record in this proceeding and accord them the same

treatment as comments filed on paper.

14. Parties filing comments, replies and supporting documents on

paper must also file their submissions on diskette. Such a submission

should be on a 3.5 inch diskette formatted in an IBM-compatible format,

using MS DOS and Word Perfect 5.1 for Windows or compatible software.

The diskette should be submitted in ``read only'' mode. The diskette

should be clearly marked with the party's name, the proceeding to which

it is addressed (in this case, IB Docket No. 98-96), the type

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of pleading (comment or reply) and the date of submission. The diskette

should be accompanied by a cover letter setting forth the same

information. Each diskette should contain only one party's pleading,

preferably in a single electronnic file. The party should submit one

copy of the diskette to John Copes, International Bureau,

Telecommunications Division, 2000 M St., N.W., Room 844, Washington,

D.C. 20054. The party should file an exact copy of the diskette,

identically marked, with the Commission's copy contractor,

International Transcription Service, Inc.

15. Persons wishing to comment on the proposed and/or modified

information collections should file written comments on or before

August 24, 1998. The Office of Management and Budget (OMB) must submit

its written comments on the proposed information collections, if any,

on or before [insert date 60 days after the date of publication of the

summary of this Notice of Proposed Rulemaking in the Federal Register].

In addition to filing comments with the Secretary, they should also

submit a copy of any comments on the information collections contained

herein Judy Boley, Federal Communications Commission, Room 234, 1919 M

Street, N.W., Washington, DC 20554, or via the Internet to

[email protected].

Conclusion

16. The Commission is proposing these rules to clarify the public

service requirements for all those pending applicants and all future

entities who may wish to serve as accounting authorities for the

settlement of international radio maritime accounts involving U.S.

registered vessels operating in foreign or international waters. By

these rules, the Commission seeks to ensure that the public interest is

adequately served as the Commission withdraws from its function as an

accounting authority for non-governmental users of maritime mobile and

maritime mobile-satellite radio services. It seeks comment on the

proposed changes to the application procedure and any alternatives

interested persons may wish to suggest.

Ordering Clauses

17. Accordingly, it is ordered, pursuant to Sections 4(i), 4(j),

11, 201-205 and 303(r) of the Communications Act of 1934, as amended,

47 U.S.C. Secs. 154(i), 154(j),161, 201-205 and 303(r), that this NPRM

is hereby adopted.

18. It is further ordered that the Office of Public Affairs,

Reference Operations Division, shall send a copy of this Notice of

Proposed Rulemaking, including the regulatory flexibility

certification, to the Chief Counsel for Advocacy of the Small Business

Administration.

Federal Communications Commission.

Magalie Roman Salas,

Secretary.

Rule Changes

Part 3 of the Commission's Rules and Regulations (Chapter 1 of

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

PART 3--AUTHORIZATION AND ADMINISTRATION OF ACCOUNTING AUTHORITIES

IN MARITIME AND MARITIME MOBILE-SATELLITE RADIO SERVICES

1. The authority citation for part 3 continues to read as follows:

Authority: 47 U.S.C. 154(i), 154(j) and 303(r).

2. Section 3.10 is proposed to be amended by revising the first

sentence of paragraph (e) to read as follows:

Sec. 3.10 Basic qualifications.

(e) Applicants must offer their services to any member of the

public making a reasonable request therefor, without undue

discrimination against any customer or class of customer, and charge

reasonable and non-discriminatory fees for service. * * *

* * * * *

[FR Doc. 98-19783 Filed 7-23-98; 8:45 am]

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