82_FR_4278 82 FR 4269 - 1998 Biennial Regulatory Review-Review of Accounts Settlement in the Maritime Mobile and Maritime Mobile-Satellite Radio Services

82 FR 4269 - 1998 Biennial Regulatory Review-Review of Accounts Settlement in the Maritime Mobile and Maritime Mobile-Satellite Radio Services

FEDERAL COMMUNICATIONS COMMISSION

Federal Register Volume 82, Issue 9 (January 13, 2017)

Page Range4269-4275
FR Document2017-00597

In this document, the Federal Communications Commission (Commission) proposes to withdraw as an accounting authority and transition its functions and duties to private accounting authorities. The Commission seeks comment on a transition plan and a timetable to implement an orderly transition to the privatization of the accounts- settlement function.

Federal Register, Volume 82 Issue 9 (Friday, January 13, 2017)
[Federal Register Volume 82, Number 9 (Friday, January 13, 2017)]
[Proposed Rules]
[Pages 4269-4275]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2017-00597]


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FEDERAL COMMUNICATIONS COMMISSION

47 CFR Part 1

[IB Docket No. 98-96; FCC 16-179]


1998 Biennial Regulatory Review--Review of Accounts Settlement in 
the Maritime Mobile and Maritime Mobile-Satellite Radio Services

AGENCY: Federal Communications Commission.

ACTION: Notice of proposed rulemaking.

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SUMMARY: In this document, the Federal Communications Commission 
(Commission) proposes to withdraw as an accounting authority and 
transition its functions and duties to private accounting authorities. 
The Commission seeks comment on a transition plan and a timetable to 
implement an orderly transition to the privatization of the accounts-
settlement function.

DATES: Comments due on or before March 14, 2017, and reply comments due 
on or before April 13, 2017.

ADDRESSES: You may submit comments, identified by IB Docket 98-96, by 
any of the following methods:
     Federal eRulemaking Portal: http://www.regulations.gov. 
Follow the instructions for submitting comments.
     Federal Communications Commission's Web site: http://www.fcc.gov/cgb/ecfs. Follow the instructions for submitting comments.
     People with Disabilities: Contact the FCC to request 
reasonable accommodations (accessible format documents, sign language 
interpreters, CART, etc.) by email: [email protected] or phone: 202-418-
0530 or TTY: 202-418-0432.
     Email: [email protected]. Include IB Docket No. 98-96 in the 
subject line of the message.
     Mail: Commercial overnight mail (other than U.S. Postal 
Service Express Mail, and Priority Mail, must be sent to 9300 East 
Hampton Drive, Capitol Heights, MD 20743. U.S. Postal Service first-
class, Express, and Priority mail should be addressed to 445 12th 
Street SW., Washington, DC 20554.
    For detailed instructions for submitting comments and additional 
information on the rulemaking process, see the SUPPLEMENTARY 
INFORMATION section of this document.

FOR FURTHER INFORMATION CONTACT: Dana Shaffer, Office of Managing 
Director at (202) 418-0832.

SUPPLEMENTARY INFORMATION: This is a summary of the Commission's Second 
Further Notice of Proposed Rulemaking (Second FNPRM), FCC 16-179, IB 
Docket No. 98-96, adopted on December 22, 2016, and released on 
December 30, 2016. The full text of this document is available for 
inspection and copying during normal business hours in the FCC 
Reference Center, 445 12th Street SW., Room CY-A257, Portals II, 
Washington, DC 20554, and may also be purchased from the Commission's 
copy contractor, BCPI, Inc., Portals II, 445 12th Street SW., Room CY-
B402, Washington, DC 20554. Customers may contact BCPI, Inc. via their 
Web site, http://www.bcpi.com, or call 1-800-378-3160. This document is 
available in alternative formats (computer diskette, large print, audio 
record, and braille).

[[Page 4270]]

Persons with disabilities who need documents in these formats may 
contact the FCC by email: [email protected] or phone: 202-418-0530 or TTY: 
202-418-0432.

I. Procedural Matters

A. Ex Parte Rules--Permit-But-Disclose

    1. The proceeding this Second FNPRM initiates shall be treated as a 
``permit-but-disclose'' proceeding in accordance with the Commission's 
ex parte rules.\1\ Persons making ex parte presentations must file a 
copy of any written presentation or a memorandum summarizing any oral 
presentation within two business days after the presentation (unless a 
different deadline applicable to the Sunshine period applies). Persons 
making oral ex parte presentations are reminded that memoranda 
summarizing the presentation must (1) list all persons attending or 
otherwise participating in the meeting at which the ex parte 
presentation was made, and (2) summarize all data presented and 
arguments made during the presentation. If the presentation consisted 
in whole or in part of the presentation of data or arguments already 
reflected in the presenter's written comments, memoranda or other 
filings in the proceeding, the presenter may provide citations to such 
data or arguments in his or her prior comments, memoranda, or other 
filings (specifying the relevant page and/or paragraph numbers where 
such data or arguments can be found) in lieu of summarizing them in the 
memorandum. Documents shown or given to Commission staff during ex 
parte meetings are deemed to be written ex parte presentations and must 
be filed consistent with rule 1.1206(b). In proceedings governed by 
rule 1.49(f) or for which the Commission has made available a method of 
electronic filing, written ex parte presentations and memoranda 
summarizing oral ex parte presentations, and all attachments thereto, 
must be filed through the electronic comment filing system available 
for that proceeding, and must be filed in their native format (e.g., 
.doc, .xml, .ppt, searchable .pdf). Participants in this proceeding 
should familiarize themselves with the Commission's ex parte rules.
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    \1\ 47 CFR 1.1200 et seq.
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B. Comment Period and Procedures

    2. Pursuant to sections 1.415 and 1.419 of the Commission's rules, 
47 CFR 1.415, 1.419, interested parties may file comments and reply 
comments on or before the dates indicated on the first page of this 
document. Comments may be filed using the Commission's Electronic 
Comment Filing System (ECFS). See Electronic Filing of Documents in 
Rulemaking Proceedings, 63 FR 24121 (1998).
    [ssquf] Electronic Filers: Comments may be filed electronically 
using the Internet by accessing the ECFS: http://fjallfoss.fcc.gov/ecfs2/.
    [ssquf] Paper Filers: Parties who choose to file by paper must file 
an original and one copy of each filing. If more than one docket or 
rulemaking number appears in the caption of this proceeding, filers 
must submit two additional copies for each additional docket or 
rulemaking number.
    Filings can be sent by hand or messenger delivery, by commercial 
overnight courier, or by first-class or overnight U.S. Postal Service 
mail. All filings must be addressed to the Commission's Secretary, 
Office of the Secretary, Federal Communications Commission.
    [ssquf] All hand-delivered or messenger-delivered paper filings for 
the Commission's Secretary must be delivered to FCC Headquarters at 445 
12th St. SW., Room TW-A325, Washington, DC 20554. The filing hours are 
8:00 a.m. to 7:00 p.m. All hand deliveries must be held together with 
rubber bands or fasteners. Any envelopes and boxes must be disposed of 
before entering the building.
    [ssquf] Commercial overnight mail (other than U.S. Postal Service 
Express Mail and Priority Mail) must be sent to 9300 East Hampton 
Drive, Capitol Heights, MD 20743.
    [ssquf] U.S. Postal Service first-class, Express, and Priority mail 
must be addressed to 445 12th Street SW., Washington DC 20554.
    People with Disabilities: To request materials in accessible 
formats for people with disabilities (braille, large print, electronic 
files, audio format), send an email to [email protected] or call the 
Consumer & Governmental Affairs Bureau at 202-418-0530 (voice), 202-
418-0432 (tty).

C. Initial Regulatory Flexibility Analysis

    3. As required by the Regulatory Flexibility Act of 1980 (RFA),\2\ 
the Commission has prepared an Initial Regulatory Flexibility Analysis 
(IRFA) of the possible significant economic impact on small entities of 
the policies and rules proposed in this Second FNPRM. The IRFA is found 
near the end of this document. We request written public comment on the 
analysis. Comments must be filed in accordance with the same deadlines 
as comments filed in response to this Second FNPRM, and must have a 
separate and distinct heading designating them as responses to the 
IRFA. The Commission's Consumer and Governmental Affairs Bureau, 
Reference Information Center, will send a copy of this Second FNPRM, 
including the IRFA, to the Chief Counsel for Advocacy of the Small 
Business Administration.
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    \2\ See 5 U.S.C. 603.
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    4. Copies to Private Accounting Authorities and Governmental Users. 
The Commission's Consumer and Governmental Affairs Bureau, Reference 
Information Center, shall send a copy of this Second Further Notice of 
Proposed Rulemaking, including the Initial Regulatory Flexibility 
Analysis, to the current U.S.-certified private accounting authorities: 
Mackay Communications, Inc., Astrium Services Business Communications 
Inc., Seven Seas Communications Inc., Omnet, Inc., KFS World 
Communications dba GLOBE WIRELESS, GMPCS Personal Communications, Inc., 
ShipCom, L.L.C. (formerly M M R Radio, L.L.C.), Stratos Mobile Networks 
Inc., Exxon Communications Company, Vizada, Inc., Raytheon Service Co., 
Telemar USA LLC, MVS USA Inc., A-N-D Group Plc, Selex ES Ltd, Selex ES 
Ltd, NSSLGlobal, Airtime Billing Department.

D. Initial Paperwork Reduction Analysis

    5. This document does not contain a proposed information 
collection(s) subject to the Paperwork Reduction Act of 1995 (PRA, Pub. 
L. 104-13). In addition, therefore, it does not contain any new or 
modified information collection burden for small business concerns with 
fewer than 25 employees, pursuant to the Small Business Paperwork 
Relief Act of 2002, Public Law 107-198, see 44 U.S.C. 3506(c)(4).

II. Introduction

    6. In this Second Further Notice of Proposed Rulemaking (2016 
Accounting Authority Second FNPRM), we propose to transition the 
functions and duties performed by the Commission as an accounting 
authority to private accounting authorities. In doing so, we seek to 
revisit findings in the 1999 Report and Order and Further Notice of 
Proposed Rulemaking (1999 Accounting Authority Order & FNPRM),\3\ which

[[Page 4271]]

included the Commission's decision that it should withdraw as an 
accounting authority in the maritime mobile and maritime mobile-
satellite radio services.\4\ The Commission tentatively concluded that 
a three-year transition period following adoption of a Report and Order 
was appropriate to permit the preparation and implementation of a plan 
to ensure a smooth, non-disruptive transition to private accounting 
authorities, and to develop the transition plan.\5\ Although in that 
Order the Commission concluded that ``the Commission shall cease 
operating as an accounting authority for settling accounts for maritime 
mobile, maritime satellite, aircraft,\6\ and handled terminal radio 
services,'' and that ``a transition period is necessary to allow for an 
orderly transition to a full privatization of the accounts-settlement 
function,'' we stopped short of proscribing a transition plan, instead 
seeking further comment ``on a number of proposals regarding how best 
to implement this transition.'' \7\
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    \3\ 1998 Biennial Regulatory Review--Review of Accounts 
Settlement in the Maritime Mobile and Maritime Mobile-Satellite 
Radio Services and Withdrawal of the Commission as an Accounting 
Authority in the Maritime Mobile and the Maritime Mobile-Satellite 
Radio Services, Report and Order and Further Notice of Proposed 
Rulemaking, 15 FCC Rcd 20703 (1999) (1999 Accounting Authority Order 
& FNPRM).
    \4\ Id.
    \5\ Id. at 20717.
    \6\ The focus of this FNPRM is the effect on maritime 
communications, as the Commission has not, for several years, 
settled aeronautical accounts. It is important to note, however, 
that our withdrawal as accounting authority of last resort would 
include a cessation in our settling of accounts for maritime mobile, 
maritime satellite, aircraft, and handled terminal radio services, 
as we previously concluded.
    \7\ Id.
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    7. The completion of a plan based on those comments, however, was 
subsequently delayed. Thus, no definitive timeline for the transition 
to implement our decision in the Order to withdraw as accounting 
authority has been established.
    8. We continue to believe that it is in the public interest for the 
Commission to withdraw as an accounting authority. Given the passage of 
time, we now, in this 2016 Accounting Authority Second FNPRM, seek 
further comment on the appropriate transition plan and period to 
implement our decision in the 1999 Accounting Authority Order & FNPRM 
to withdraw as an accounting authority in the maritime mobile and 
maritime mobile-satellite radio services.

III. Background

    9. International maritime mobile communications are HF or VHF radio 
communications between a ship and a coast station operated by the 
telecommunications operator in the country in which the station is 
located, and international maritime mobile-satellite communications 
services are conducted by satellite. Payment for the services provided 
by the telecommunications operators involves interaction with an entity 
known as an ``accounting authority,'' which settles an account between 
the telecommunications operator and the customer. In practice, the 
telecommunications operator, the earth or coast station, sends its bill 
either to the accounting authority that the customer has designated to 
act for it or to an ``accounting authority of last resort,'' which, as 
the name implies, settles accounts for customers that have not 
designated a particular accounting authority. The function of the 
accounting authority, also referred to as a ``clearinghouse'' or 
``settlement authority,'' involves presenting the bill to the customer, 
accepting payment from the customer, and remitting the collected funds 
to the telecommunications operator.
    10. Historically, most nations required individual ships to settle 
their accounts with their telecommunications provider; however, since 
1934, the Commission has acted as an accounting authority in the United 
States, to settle accounts for maritime, aircraft, and hand-held 
terminal radio services to both private users and other U.S. federal 
government agencies. Over time, the Commission has reduced its 
accounting authority or clearinghouse function related to the maritime 
mobile radio services and the satellite-based services, including 
aeronautical and hand-held terminals. The primary reason for this 
reduction is that private accounting authorities provide similar 
account settlement services for U.S. users. Certification and operation 
of private accounting authorities are governed under part 3 of our 
rules, which ensure that qualified applicants are authorized as 
accounting authorities and that such authorities, once approved, have 
adequate guidance of the standard of conduct required of them by the 
Commission. We believe that this process has been working 
effectively.\8\ Currently, there are twenty-two entities certified as 
U.S. private accounting authorities.\9\
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    \8\ See Letter from Bruce Henoch, Inmarsat, to Accounting 
Authority Certification Office, Federal Communications Commission 
(dated April 20, 2015); Letter from Robert Swanson, Airbus Defense 
and Space, to Marlene Dortch, Federal Communications Commission 
(dated January 30, 2015); Letter from Steven Chernoff, Lukas, Nace, 
Gutierrez, and Sachs, LLP, to Accounting Authority Certification 
Officer, Federal Communications Commission (April 15, 2015) 
(providing inventories of accounting authority settlements).
    \9\ Some of these private accounting authorities may not 
currently settle accounts for maritime services; however, our 
certification does not limit any certified U.S. accounting authority 
to the settlement of accounts for only one class of service.
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    11. When the Commission last considered this matter more than 
fifteen years ago, it found no public policy reason for the 
Commission's continued function as an accounting authority,\10\ and 
concluded in the Report and Order section of the decision, therefore, 
that the Commission should withdraw as a clearinghouse for the 
settlement of accounts in the maritime mobile radio, maritime mobile-
satellite, and other satellite-based communications services.\11\ The 
Commission tentatively concluded that it should not designate a new 
accounting authority of last resort,\12\ and that a three year 
transition plan was sufficient to ensure a smooth transition.\13\ The 
Commission sought further comment on these tentative conclusions.\14\
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    \10\ 1999 Accounting Authority Order & FNPRM at 20709.
    \11\ Id. at 20723.
    \12\ Id. at 20715.
    \13\ Id. at 20718.
    \14\ Id. at 20715, 20723.
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IV. Discussion

    12. In the Order portion of the 1999 R&O and FNPRM, the Commission 
announced its decision to withdraw from the accounting authority 
function. Additionally, it revised section 3.10(e) to make explicit the 
authorities' obligations not to discriminate,\15\ grandfathered the 
accounting authority of EXXON to permit it to continue to settle 
accounts only for its ships, and provided guidance to allow applicants 
to amend their pending applications in light of the change to section 
3.10(e). In the Second FNPRM, the Commission requested comments on two 
issues. First, the Commission sought comment on whether to appoint or 
allow an entity to take over the Commission's function as the 
accounting authority of last resort, require customers to pre-subscribe 
to an accounting authority or to designate an accounting authority on 
every message, or to develop a formula to spread undesignated messages 
among several private accounting authorities. Second, the Commission 
tentatively concluded that the appropriate phase-out period was three 
years following Federal Register publication of a final order, and 
invited comment.
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    \15\ 47 CFR 3.10(e).
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A. Withdrawal by the Commission From the Accounting Authority Function

    13. In the 1999 R&O and FNPRM, the Commission decided to withdraw 
from performing the functions of an accounting authority, and to leave 
the settlement of accounts to the private

[[Page 4272]]

accounting authorities subject to part 3 of our rules. Although the 
Commission never implemented a transition plan, many users of the 
Commission's services subsequently have transitioned to one of these 
accounting authorities. We continue to believe that it is in the public 
interest for the Commission to withdraw as an accounting authority and 
seek comment on our proposals to do so below. The function of an 
accounting authority is not necessarily a governmental function, but 
can be performed equally well by privately owned entities, subject to 
Commission oversight under our part 3 rules.\16\ Since the Commission 
last visited this issue, U.S. private accounting authorities have 
continued to succeed in providing these functions.\17\ We anticipate 
that our action to step away from the functions of an accounting 
authority will create further competition for the settlement of 
maritime and satellite accounts, and may thereby encourage the industry 
to provide the public with more choices in obtaining settlement of 
their accounts.
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    \16\ The FCC's withdrawal as an accounting authority will in no 
way change the rules by which we certify and monitor private 
entities serving as accounting authorities for maritime mobile and 
maritime satellite services. See 47 CFR 3.1 et seq.
    \17\ See 1999 R&O and FNPRM, 15 FCC Rcd at 20706-09, paragraphs 
7-12; See Letter from Bruce Henoch, Inmarsat, to Accounting 
Authority Certification Office, Federal Communications Commission 
(dated April 20, 2015); Letter from Robert Swanson, Airbus Defense 
and Space, to Marlene Dortch, Federal Communications Commission 
(dated January 30, 2015); Letter from Steven Chernoff, Lukas, Nace, 
Gutierrez, and Sachs, LLP, to Accounting Authority Certification 
Officer, Federal Communications Commission (dated April 15, 2015) 
(providing inventories of accounting authority settlements).
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    14. Since 1999, the number of users relying on the Commission to 
provide accounting authority services has decreased,\18\ even as the 
activity handled by other accounting authorities, in general, appears 
to have increased in scope. We recognize that an immediate departure of 
the Commission as an accounting authority will require those U.S. 
international ship and satellite operators currently handled by the 
Commission to select an alternative accounting authority. We also 
believe, unlike in 1999 when we suggested a three-year transition 
period, that maritime operators are far better prepared to adjust to 
the departure of the Commission as the accounting authority. First, the 
Commission possesses the ability to contact current users and thereby 
their expedite transition. Second, through outreach and coordination 
with the maritime industry, Commission staff have learned that many of 
those entities using the Commission's accounting authority services 
have anticipated the change, and they have initiated a transition 
process in contracting with other accounting authorities. Consequently, 
we believe that most maritime mobile satellite users will be able to 
accommodate this change, and that they will act promptly to select an 
alternative accounting authority. We therefore, recommend a one year 
transition period and seek comment on this recommendation.
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    \18\ See supra n.5.
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    15. We continue to believe that we should not designate a new 
accounting authority of last resort, but, rather, customers should 
designate an accounting authority for each call or should presubscribe 
for the services of an accounting authority.\19\ We seek further 
comment on this tentative conclusion.
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    \19\ See id. at 20715 (tentatively concluding not to designate a 
new accounting authority of last resort).
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B. Government Agencies

    16. In the 1999 R&O and FNPRM we acknowledged that the Commission 
at that time acted as the accounting authority for the maritime and 
satellite communications of a majority of U.S. governmental 
agencies.\20\ At the time, because we anticipated that Government 
agency users might have special needs that differ from other users, we 
requested the agencies to address this issue in their comments.\21\
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    \20\ See 1999 R&O and FNPRM, 15 FCC Rcd at 20709, para. 13.
    \21\ See 1999 R&O and FNPRM, 15 FCC Rcd at 20709, para. 13.
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    17. In their 1998 comments, the United States Coast Guard urged the 
Commission to maintain a default accounting authority, provide ample 
notice to affected users and small vessel organizations, provide a 
smooth transition process to a new default accounting authority, and 
ensure the economic impact on small entities is non-significant.\22\ 
The National Telecommunications and Information Administration (NTIA), 
in coordination with the Interdepartment Radio Advisory Committee 
(which includes the Coast Guard), expressed concern that the 
Commission's withdrawal might lead to disruption or curtailment of 
communication services to federal users, as well as increased cost to 
the taxpayer.\23\ They requested that the FCC retain its accounting 
authority, or, in the alternative, noted that most government agencies 
operate on a three year budget cycle, and asked that the FCC defer 
termination of its accounting authority responsibility ``until an [sic] 
alternative billing and payment arrangements ensuring uninterrupted 
service can be established.\24\ NTIA further urged that the FCC either 
retain its accounting authority, or designate an authority of last 
resort that would ``not charge more than the Commission currently 
charges its accounts until users are notified and given a chance to 
select their own accounting authority or accept the terms offered.'' 
\25\
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    \22\ Letter from J.D. Hersey, Jr., Chief, Spectrum Management 
Division, to Magalie Roman Salas, FCC Secretary, August 21, 1998.
    \23\ See Comments of the National Telecommunications and 
Information Administration, filed August 24, 1998, at page 2.
    \24\ Id.
    \25\ Letter from William T. Hatch, Acting Associate 
Administrator, National Telecommunications and Information 
Administration, to Magalie Roman Salas, FCC Secretary, October 29, 
1998.
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    18. We agree that, as part of an effective plan for the Commission 
to withdraw as an accounting authority, U.S. Government agencies must 
have in place alternate arrangements upon the Commission's withdrawal 
to ensure that critical communications are not disrupted. In the more 
than fifteen years, since our 1999 decision, Commission staff have 
contacted the various government agencies informing them of the 
Commission's intent to terminate its accounting authority; as a result, 
many of these various agencies, have moved to alternative accounting 
authorities for some or all of their services.\26\ In light of this 
trend, and the more than fifteen years impacted entities have had to 
transition to a new accounting authority, we seek comment on the 
appropriate time period to complete the Commission's transition from 
serving as accounting authority for government agencies. Movement of 
government agencies anticipating our change in function suggests that a 
transition period shorter than the three-year period previously 
proposed is appropriate to accommodate these particular changes, 
including anticipated government budget planning changes. We propose 
that the transition period for government and non-government entities 
be the same. We seek comment on whether one year suffices for 
government agencies to transition to an alternative accounting 
authority. Alternatively, we invite comment on whether this period 
should be longer or shorter.
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    \26\ Commission staff have confirmed the removal of many of the 
terminals once billed to these agencies from the FCC as the 
accounting authority.
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C. Accounting Authority of Last Resort

    19. The Commission historically has served as the ``accounting 
authority of last resort'' for the United States, which resulted in the 
Commission receiving from foreign telecommunications

[[Page 4273]]

operators all accounts for which the customer did not designate a 
specific accounting authority.\27\ In 1999, we tentatively concluded 
that we should not designate a new accounting authority of last 
resort.\28\ Instead, we found that customers should designate an 
accounting authority for each call or should presubscribe for the 
services of an accounting authority.\29\ We noted, however, that in 
order to prevent a deleterious effect on safety communications, the 
Commission must take care to ensure a seamless transition to new 
accounting authorities.\30\
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    \27\ See 1999 R&O and FNPRM, 15 FCC Rcd at 20715, paragraph 25.
    \28\ Id. at para. 26.
    \29\ Id.
    \30\ Id. at para. 27 (citing Coast Guard Comments at 1).
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    20. We continue to believe that, although the functions of an 
accounting authority of last resort may still be necessary to address 
infrequent situations where an authority is or cannot be designated due 
to circumstances beyond the control of the user, it remains the basic 
responsibility of the user, whether a private or governmental entity, 
to provide for an accounting authority to handle its calls. However, as 
we withdraw as an accounting authority, we tentatively conclude, based 
on the commenters' urging us, in 1998, to either retain our accounting 
authority or ensure an alternative is in place before withdrawing,\31\ 
that it will be necessary to have an alternative arrangement in place 
that will eliminate the possibility of messages being sent without 
having an accounting authority necessary to settle accounts. We seek 
comment on possible approaches to ensure an alternative is in place: 
(1) Requiring all customers to pre-subscribe to an accounting authority 
or to designate an accounting authority on every message; (2) 
developing a formula to spread undesignated messages among several 
private accounting authorities; and/or (3) appointing through 
comparative selection one of the private accounting authorities as the 
new authority of last resort.
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    \31\ Letter from J.D. Hersey, Jr., Chief, Spectrum Management 
Division, to Magalie Roman Salas, FCC Secretary, August 21, 1998. 
See, also Comments of the National Telecommunications and 
Information Administration, filed August 24, 1998, at page 2 and 
Letter from William T. Hatch, Acting Associate Administrator, 
National Telecommunications and Information Administration, to 
Magalie Roman Salas, FCC Secretary, October 29, 1998.
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Table 1--Government Agencies Who Use the Commission as an Accounting 
Authority

Defense Information Systems Agency
Department of Agriculture
Department of Air Force
Department of the Army
Department of Commerce
Department of Defense--Office of Secretary of Defense
Department of Energy
Department of Health and Human Services
Department of Homeland Security--United States Coast Guard
Department of Justice
Department of Justice--Federal Bureau of Investigation
Department of Justice--U.S. Drug Enforcement Administration
Department of the Interior
Department of the Navy
Department of State
Department of Transportation
Department of Treasury
Department of Veteran Affairs
Federal Aviation Administration
Federal Emergency Management Agency
National Aeronautics and Space Administration
National Science Foundation
On-Site Inspection Agency
U.S. Environmental Protection Agency
U.S. General Services Administration
United States Information Agency
U.S. Postal Service

    21. Given the reduction of reliance on the FCC as an accounting 
authority and the resulting lower volume of customers \32\ who will be 
affected when we withdraw as accounting authority (see Table 1 above), 
we tentatively conclude that the best alternative is the first option 
noted above, to require all customers to pre-subscribe to an accounting 
authority or to designate an accounting authority on every message. We 
seek comment on this tentative conclusion as well as the merits of each 
of the three proposals. For example, is it technically feasible, for 
U.S. maritime and satellite radio traffic for which no accounting 
authority is designated and for which the customer is not able or 
willing to designate an accounting authority on every message, to allow 
the provider to bill for such traffic through a certified accounting 
authority of its choice? Is this feasible for a ship-to-shore 
radiotelephone call made through a foreign coast station? In the 
alternative, is it feasible to allow public coast stations to designate 
their own ``default'' accounting authority in order to send bills to 
mariners who have not chosen/designated a private accounting authority? 
\33\ Is there a need for the Commission to adopt additional qualifying 
criteria for an existing accounting authority to serve as a designated 
accounting authority of last resort? If so, what should the additional 
criteria be? We also seek comment on any potential enforcement or 
authority issues that may arise from each of the proposed alternatives 
for providing an accounting authority of last resort. We also request 
that commenting parties propose any other viable alternatives that help 
ensure a smooth transition while relieving the Commission from 
performing this function.
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    \32\ We note that, for 2016, traffic billed by the FCC as 
accounting authority to private and/or third parties is exclusively 
satellite traffic, and ask commenters to address whether that fact, 
coupled with the potential to allow providers to choose a U.S. 
accounting authority to bill traffic for which no accounting 
authority has been designated by the customer, mitigates any 
concerns regarding a potential gap in service once the FCC withdraws 
as accounting authority of last resort.
    \33\ There are few users of maritime public coast stations now 
due to the closure worldwide of public coast stations; however, 
ensuring the safety of such users is important. We, therefore, seek 
comment on what different approaches may be necessary for radio 
communications via a foreign public coast station versus satellite 
communications via a mobile satellite communications provider.
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    22. We note that withdrawal of the Commission as an accounting 
authority without an effective transition plan could leave a gap for 
some U.S. maritime and satellite radio traffic for which no accounting 
authority is designated. Thus, during any transition period and 
subsequently, we intend to conduct outreach to make users aware of our 
decision and their options for ensuring that they continue to receive 
the services of an accounting authority.
    23. In any event, we believe that an accounting authority, whether 
selected by the ship, the provider, or a competent default accounting 
authority, must be in place for distress and safety telecommunications 
on board ships, particularly when a maritime mobile satellite system is 
being used. We therefore seek comment on whether, if we decline to 
designate an accounting authority, we should designate an accounting 
authority of last resort specifically for Global Maritime Distress and 
Safety System (GMDSS) mobile satellite communications.\34\ Although 
maritime distress and certain safety communications are provided at no 
charge, other types of safety communications do incur a charge. If 
neither the designated nor a competent default accounting authority 
exists, then foreign earth stations may have no way to bill the U.S. 
satellite user. As a result, the user may, through no fault of its

[[Page 4274]]

own, find that its ship earth station has been barred for non-payment 
of bills. We understand that, although a ship mobile device has been 
``barred'' from the network provider (e.g., foreign earth station), a 
ship can still initiate a ship-to-shore distress alert. In such a 
situation, however, it could not communicate further with the Coast 
Guard, even if those further communications are safety related. A ship 
on the high seas that has been barred from such communications may be a 
danger to itself and others, as well as a potential problem for the 
Coast Guard. We agree with commenters that any change in accounting 
authorities must ensure that critical communications are not disrupted. 
First, during any transition period that we adopt, we will notify users 
of GMDSS mobile satellite communications of our decision to withdraw as 
an accounting authority and of their need to select a new accounting 
authority. Moreover, we seek comment, not only on designation of an 
accounting authority of last resort for all users, including GMDSS 
mobile satellite and GMDSS maritime mobile communications, but also on 
whether there are other options to ensure that the Commission's 
withdrawal as accounting authority would not cause ship stations to 
become barred because they were unaware that they need to choose a new 
accounting authority.
---------------------------------------------------------------------------

    \34\ INMARSAT continues to be the only worldwide maritime mobile 
satellite system providing these safety communications. INMARSAT 
will commission a new ship terminal intended to carry distress and 
safety communications only if the application designates an 
accounting authority.
---------------------------------------------------------------------------

    24. We also invite comment whether advancements in technology and 
the business community could reduce the burdens associated with our 
proposal to withdraw as accounting authority of last resort. 
Technological changes may mitigate concerns that stem from the fact 
that the Commission's service as the accounting authority of last 
resort has made it unnecessary for users to be aware that they may 
select a private accounting authority. We can promptly notify users 
which relied on the Commission as accounting authority of last resort 
for the need to select an alternative accounting authority. In doing 
so, we seek comment on notifying users from the past seven years. 
Alternatively, should we make the period of users which relied on the 
Commission as carrier of last resort shorter or longer? In addition, 
the Commission could review on a periodic basis the plan it adopts to 
ensure that the need for accounting authority services is being met, 
including distress and safety communications on board ships, and 
determine whether further modifications are appropriate.

Initial Regulatory Flexibility Analysis

    1. As required by the Regulatory Flexibility Act (RFA),\35\ the 
Commission prepared this Initial Regulatory Flexibility Analysis (IRFA) 
of the possible significant economic impact on small entities by the 
policies and rules proposed in this Second Further Notice of Proposed 
Rulemaking (Second FNPRM). Written comments are requested on this IRFA. 
Comments must be identified as responses to the IRFA and must be filed 
by the deadline for comments on this Second FNPRM. The Commission will 
send a copy of this Second FNPRM, including the IRFA, to the Chief 
Counsel for Advocacy of the Small Business Administration (SBA).\36\ In 
addition, this Second FNPRM and IRFA (or summaries thereof) will be 
published in the Federal Register.\37\
---------------------------------------------------------------------------

    \35\ 5 U.S.C. 603. The RFA, 5 U.S.C. 601-612 has been amended by 
the Small Business Regulatory Enforcement Fairness Act of 1996 
(SBREFA), Public Law 104-121, Title II, 110 Stat. 847 (1996).
    \36\ 5 U.S.C. 603(a).
    \37\ Id.
---------------------------------------------------------------------------

A. Need for and Objectives of, the Notice

    2. In this Second Further Notice of Proposed Rulemaking (Second 
FNPRM), we propose to transition the functions and duties performed by 
the Commission as an accounting authority to private accounting 
authorities. In doing so, we seek to revisit findings in the 1999 
Report and Order and Further Notice of Proposed Rulemaking (1999 
Accounting Authority Order & FNPRM),\38\ which included the 
Commission's decision that it should withdraw as an accounting 
authority in the maritime mobile and maritime mobile-satellite radio 
services. The Commission tentatively concluded that a three-year 
transition period following adoption of a Report and Order was 
appropriate to permit the preparation and implementation of a plan to 
ensure a smooth, non-disruptive transition to private accounting 
authorities, and to develop the transition plan.\39\ The completion of 
the plan was subsequently delayed and until now, the proceeding has 
been inactive.
---------------------------------------------------------------------------

    \38\ 1998 Biennial Regulatory Review--Review of Accounts 
Settlement in the Maritime Mobile and Maritime Mobile-Satellite 
Radio Services and Withdrawal of the Commission as an Accounting 
Authority in the Maritime Mobile and the Maritime Mobile-Satellite 
Radio Services, Report and Order and Further Notice of Proposed 
Rulemaking, 15 FCC Rcd 20703 (1999) (1999 R&O and FNPRM). The 
Commission as part of its Further Notice of Proposed Rulemaking 
sought comments to be filed by comments August 23, 1999, and replies 
by September 8, 1999.
    \39\ 1998 Biennial Regulatory Review--Review of Accounts 
Settlement in the Maritime Mobile and Maritime Mobile-Satellite 
Radio Services and Withdrawal of the Commission as an Accounting 
Authority in the Maritime Mobile and the Maritime Mobile-Satellite 
Radio Services, Order, 14 FCC Rcd 13504 (1999). The order extended 
the deadline for filing comments to October 25, 1999 and reply 
comments to November 29, 1999. The extension of time was made to 
allow for a fuller record.
---------------------------------------------------------------------------

    3. In this 2016 Accounting Authority Second FNPRM, we now seek 
comment on whether the findings in the 1999 Accounting Authority Order 
& FNPRM remain in the public interest. As such, we seek input on 
whether the Commission should withdraw as an accounting authority in 
the maritime mobile and maritime mobile-satellite radio services. In 
doing so, we seek information on whether interested parties continue to 
support the Commission's 1999 decision and if not, why that decision 
should be revisited or amended.

B. Legal Basis

    4. This Second Further Notice of Proposed Rulemaking is adopted 
pursuant to Sections 1, 4(i), 4(j), 11, 201-205, 303(r) of the 
Communications Act of 1934, as amended, 47 U.S.C. 151, 154(i), 161, 
201-205, and 303(r).

C. Description and Estimate of the Number of Small Entities To Which 
the Rules Will Apply

    5. The RFA directs agencies to provide a description of, and where 
feasible, an estimate of the number of small entities that may be 
affected by the proposed rules and policies, if adopted.\40\ The RFA 
generally defines the term ``small entity'' as having the same meaning 
as the terms ``small business,'' ``small organization,'' and ``small 
governmental jurisdiction.'' \41\ In addition, the term ``small 
business'' has the same meaning as the term ``small business concern'' 
under the Small Business Act.\42\ 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 SBA.\43\
---------------------------------------------------------------------------

    \40\ 5 U.S.C. 603(b)(3).
    \41\ 5 U.S.C. 601(6).
    \42\ 5 U.S.C. 601(3) (incorporating by reference the definition 
of ``small-business concern'' in the Small Business Act, 15 U.S.C. 
632). Pursuant to 5 U.S.C. 601(3), the statutory definition of a 
small business applies ``unless an agency, after consultation with 
the Office of Advocacy of the Small Business Administration and 
after opportunity for public comment, establishes one or more 
definitions of such term which are appropriate to the activities of 
the agency and publishes such definition(s) in the Federal 
Register.''
    \43\ 15 U.S.C. 632.
---------------------------------------------------------------------------

    6. The rules proposed in this Second Notice of Proposed Rulemaking 
apply to entities providing account-settlement services for maritime 
mobile and maritime mobile-satellite radio services.

[[Page 4275]]

Small businesses may be able to become accounting clearinghouses, as 
the establishment of such a function does not appear to involve high 
implementation costs. The rules also apply to existing maritime mobile 
and maritime satellite customers who have not presubscribed to a U.S. 
accounting authority and are, therefore, billed through the FCC as the 
accounting authority of last resort. An estimated thirty small entities 
have been billed for traffic by the FCC as an accounting authority in 
2016. The proposed action in this Second Notice of Proposed Rulemaking 
does not appear to involve high implementation costs for such entities.

D. Reporting, Recordkeeping, and Other Compliance Requirements

    7. The proposed action in this Second Further Notice of Proposed 
Rulemaking would affect those entities already certified and those 
applying for certification as a private accounting authority in the 
maritime mobile, maritime mobile-satellite, aeronautical and other 
satellite-based radio services. The amended rule, however, merely 
clarifies an existing requirement imposed on accounting authorities. 
It, therefore, does not alter the reporting, recordkeeping or other 
compliance requirements of certified accounting authorities.

E. Steps Taken To Minimize Significant Economic Impact on Small 
Entities and Significant Alternatives Considered

    8. As stated above, we propose to transition the functions and 
duties performed by the Commission as an accounting authority to 
private accounting authorities. In doing so, we seek to revisit 
findings in 1999 Accounting Authority Order & FNPRM),\44\ which 
included the Commission's decision that it should withdraw as an 
accounting authority in the maritime mobile and maritime mobile-
satellite radio services. We seek comment on the impact of our 
proposals on small entities and on any possible alternatives that could 
minimize the impact of our rules on small entities.
---------------------------------------------------------------------------

    \44\ 1998 Biennial Regulatory Review--Review of Accounts 
Settlement in the Maritime Mobile and Maritime Mobile-Satellite 
Radio Services and Withdrawal of the Commission as an Accounting 
Authority in the Maritime Mobile and the Maritime Mobile-Satellite 
Radio Services, Report and Order and Further Notice of Proposed 
Rulemaking, 15 FCC Rcd 20703 (1999) (1999 R&O and FNPRM). The 
Commission as part of its Further Notice of Proposed Rulemaking 
sought comments to be filed by comments August 23, 1999, and replies 
by September 8, 1999.
---------------------------------------------------------------------------

F. Federal Rules That Overlap, Duplicate or Conflict With These 
Proposed Requirements

    9. None.

V. Ordering Clauses

    10. It is ordered that 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. 
154(i), 154(j), 161, 201-205 and 303(r), this Second Further Notice of 
Proposed Rulemaking is adopted.
    11. It is further ordered that the Commission's Consumer and 
Governmental Affairs Bureau, Reference Information Center, shall send a 
copy of this Second Further Notice of Proposed Rulemaking, including 
the Initial Regulatory Flexibility Analysis, to the Chief Counsel for 
Advocacy of the Small Business Administration.

Federal Communications Commission.
Marlene H. Dortch,
Secretary.
[FR Doc. 2017-00597 Filed 1-12-17; 8:45 am]
 BILLING CODE 6712-01-P



                                                                                Federal Register / Vol. 82, No. 9 / Friday, January 13, 2017 / Proposed Rules                                           4269

                                                         (v) Is there any means by which a                    disclosed or otherwise made available to               (Commission) proposes to withdraw as
                                                      member of the public could obtain                       the public under any other Federal law.                an accounting authority and transition
                                                      access to the information? Is the                         (iii) I have a reasonable basis to                   its functions and duties to private
                                                      information of a kind that you would                    conclude that disclosure of the                        accounting authorities. The Commission
                                                      customarily not release to the public?                  information is likely to cause substantial             seeks comment on a transition plan and
                                                         (vi) Has any governmental body made                  harm to the competitive position of the                a timetable to implement an orderly
                                                      a determination as to the confidentiality               person.                                                transition to the privatization of the
                                                      of the information? If so, please attach                  (iv) I have a reasonable basis to                    accounts-settlement function.
                                                      a copy of the determination.                            believe that the information is not                    DATES: Comments due on or before
                                                         (vii) For each item or category of                   readily discoverable through reverse                   March 14, 2017, and reply comments
                                                      information claimed as confidential,                    engineering.                                           due on or before April 13, 2017.
                                                      explain with specificity why release of                 § 710.39    Electronic filing.                         ADDRESSES: You may submit comments,
                                                      the information is likely to cause                         (a) EPA will accept information                     identified by IB Docket 98–96, by any of
                                                      substantial harm to your competitive                    submitted under this subpart only if                   the following methods:
                                                      position. Explain the specific nature of                submitted in accordance with this                         • Federal eRulemaking Portal: http://
                                                      those harmful effects, why they should                  section. All information must be                       www.regulations.gov. Follow the
                                                      be viewed as substantial, and the causal                submitted electronically to EPA via                    instructions for submitting comments.
                                                      relationship between disclosure and                     CDX. Prior to submission to EPA via                       • Federal Communications
                                                      such harmful effects. How could your                    CDX, Notices of Activity and any                       Commission’s Web site: http://
                                                      competitors make use of this                            associated information must be                         www.fcc.gov/cgb/ecfs. Follow the
                                                      information to your detriment?                          generated and completed using the e-                   instructions for submitting comments.
                                                         (viii) Do you assert that the                        NOA software module.                                      • People with Disabilities: Contact the
                                                      information is submitted on a voluntary                    (b) Obtain instructions for registering             FCC to request reasonable
                                                      or a mandatory basis? Please explain the                in CDX as follows:                                     accommodations (accessible format
                                                      reason for your assertion. If you assert                   (1) Web site. The CDX Registration                  documents, sign language interpreters,
                                                      that the information is voluntarily                     User Guide is available at https://                    CART, etc.) by email: FCC504@fcc.gov
                                                      submitted information, please explain                   www.epa.gov/sites/production/files/                    or phone: 202–418–0530 or TTY: 202–
                                                      whether the information is the kind that                documents/cdx_registration_guide_v0_                   418–0432.
                                                      would customarily not be released to                    02.pdf. To register in CDX, go to https://                • Email: ecfs@fcc.gov. Include IB
                                                      the public.                                             cdx.epa.gov and follow the appropriate                 Docket No. 98–96 in the subject line of
                                                         (ix) Whether you assert the                          links.                                                 the message.
                                                      information as voluntary or involuntary,                   (2) Telephone. Contact the EPA CDX                     • Mail: Commercial overnight mail
                                                      please address why disclosure of the                    Help Desk at 1–888–890–1995.                           (other than U.S. Postal Service Express
                                                      information would tend to lessen the                       (3) Email. Email the EPA CDX Help                   Mail, and Priority Mail, must be sent to
                                                      availability to the EPA of similar                      Desk at HelpDesk@epacdx.net.                           9300 East Hampton Drive, Capitol
                                                      information in the future.                                 (c) Obtain instructions for using the e-            Heights, MD 20743. U.S. Postal Service
                                                         (x) If you believe any information to                NOA software module as follows:                        first-class, Express, and Priority mail
                                                      be (a) trade secret(s), please so state and                (1) Web site. Go to the EPA New                     should be addressed to 445 12th Street
                                                      explain the reason for your belief. Please              Chemicals under the Toxic Substances                   SW., Washington, DC 20554.
                                                      attach copies of those pages containing                 Control Act Web site at https://                          For detailed instructions for
                                                      such information with brackets around                   www.epa.gov/reviewing-new-chemicals-                   submitting comments and additional
                                                      the text that you claim to be (a) trade                 under-toxic-substances-control-act-tsca/               information on the rulemaking process,
                                                      secret(s).                                              how-submit-e-pmn and follow the                        see the SUPPLEMENTARY INFORMATION
                                                         (xi) Explain any other issue you deem                appropriate links.                                     section of this document.
                                                                                                                 (2) Telephone. Contact the EPA TSCA                 FOR FURTHER INFORMATION CONTACT:
                                                      relevant.
                                                                                                              Hotline at 1–202–554–1404.                             Dana Shaffer, Office of Managing
                                                         (2) Identification of claims. If any of                 (3) Email. Email the EPA TSCA
                                                      the information contained in the                                                                               Director at (202) 418–0832.
                                                                                                              Hotline at TSCA-Hotline@epa.gov.
                                                      answers to the questions listed in                                                                             SUPPLEMENTARY INFORMATION: This is a
                                                                                                              [FR Doc. 2016–31923 Filed 1–12–17; 8:45 am]
                                                      paragraph (b)(1) of this section is                                                                            summary of the Commission’s Second
                                                      asserted to be confidential, the                        BILLING CODE 6560–50–P
                                                                                                                                                                     Further Notice of Proposed Rulemaking
                                                      submitter must clearly identify the                                                                            (Second FNPRM), FCC 16–179, IB
                                                      information that is claimed as                                                                                 Docket No. 98–96, adopted on December
                                                      confidential by marking the specific                    FEDERAL COMMUNICATIONS                                 22, 2016, and released on December 30,
                                                      information on each page with a label                   COMMISSION                                             2016. The full text of this document is
                                                      such as ‘‘confidential business                                                                                available for inspection and copying
                                                      information,’’ ‘‘proprietary,’’ or ‘‘trade              47 CFR Part 1
                                                                                                                                                                     during normal business hours in the
                                                      secret.’’                                               [IB Docket No. 98–96; FCC 16–179]                      FCC Reference Center, 445 12th Street
                                                         (3) Certification statement for claims.                                                                     SW., Room CY–A257, Portals II,
                                                      In submitting a claim of confidentiality,               1998 Biennial Regulatory Review—                       Washington, DC 20554, and may also be
asabaliauskas on DSK3SPTVN1PROD with PROPOSALS




                                                      a person must certify the truth of the                  Review of Accounts Settlement in the                   purchased from the Commission’s copy
                                                      following four statements concerning all                Maritime Mobile and Maritime Mobile-                   contractor, BCPI, Inc., Portals II, 445
                                                      information which is claimed as                         Satellite Radio Services                               12th Street SW., Room CY–B402,
                                                      confidential:                                           AGENCY: Federal Communications                         Washington, DC 20554. Customers may
                                                         (i) My company has taken reasonable                  Commission.                                            contact BCPI, Inc. via their Web site,
                                                      measures to protect the confidentiality                 ACTION: Notice of proposed rulemaking.                 http://www.bcpi.com, or call 1–800–
                                                      of the information.                                                                                            378–3160. This document is available in
                                                         (ii) I have determined that the                             In this document, the Federal
                                                                                                              SUMMARY:                                               alternative formats (computer diskette,
                                                      information is not required to be                       Communications Commission                              large print, audio record, and braille).


                                                 VerDate Sep<11>2014   16:35 Jan 12, 2017   Jkt 241001   PO 00000   Frm 00072   Fmt 4702   Sfmt 4702   E:\FR\FM\13JAP1.SGM   13JAP1


                                                      4270                          Federal Register / Vol. 82, No. 9 / Friday, January 13, 2017 / Proposed Rules

                                                      Persons with disabilities who need                        before the dates indicated on the first                 Comments must be filed in accordance
                                                      documents in these formats may contact                    page of this document. Comments may                     with the same deadlines as comments
                                                      the FCC by email: FCC504@fcc.gov or                       be filed using the Commission’s                         filed in response to this Second FNPRM,
                                                      phone: 202–418–0530 or TTY: 202–418–                      Electronic Comment Filing System                        and must have a separate and distinct
                                                      0432.                                                     (ECFS). See Electronic Filing of                        heading designating them as responses
                                                                                                                Documents in Rulemaking Proceedings,                    to the IRFA. The Commission’s
                                                      I. Procedural Matters
                                                                                                                63 FR 24121 (1998).                                     Consumer and Governmental Affairs
                                                      A. Ex Parte Rules—Permit-But-Disclose                        D Electronic Filers: Comments may be                 Bureau, Reference Information Center,
                                                                                                                filed electronically using the Internet by              will send a copy of this Second FNPRM,
                                                         1. The proceeding this Second
                                                                                                                accessing the ECFS: http://                             including the IRFA, to the Chief
                                                      FNPRM initiates shall be treated as a
                                                                                                                fjallfoss.fcc.gov/ecfs2/.                               Counsel for Advocacy of the Small
                                                      ‘‘permit-but-disclose’’ proceeding in                        D Paper Filers: Parties who choose to
                                                      accordance with the Commission’s ex                                                                               Business Administration.
                                                                                                                file by paper must file an original and                    4. Copies to Private Accounting
                                                      parte rules.1 Persons making ex parte                     one copy of each filing. If more than one               Authorities and Governmental Users.
                                                      presentations must file a copy of any                     docket or rulemaking number appears in                  The Commission’s Consumer and
                                                      written presentation or a memorandum                      the caption of this proceeding, filers                  Governmental Affairs Bureau, Reference
                                                      summarizing any oral presentation                         must submit two additional copies for                   Information Center, shall send a copy of
                                                      within two business days after the                        each additional docket or rulemaking                    this Second Further Notice of Proposed
                                                      presentation (unless a different deadline                 number.                                                 Rulemaking, including the Initial
                                                      applicable to the Sunshine period                            Filings can be sent by hand or                       Regulatory Flexibility Analysis, to the
                                                      applies). Persons making oral ex parte                    messenger delivery, by commercial                       current U.S.-certified private accounting
                                                      presentations are reminded that                           overnight courier, or by first-class or                 authorities: Mackay Communications,
                                                      memoranda summarizing the                                 overnight U.S. Postal Service mail. All                 Inc., Astrium Services Business
                                                      presentation must (1) list all persons                    filings must be addressed to the                        Communications Inc., Seven Seas
                                                      attending or otherwise participating in                   Commission’s Secretary, Office of the                   Communications Inc., Omnet, Inc., KFS
                                                      the meeting at which the ex parte                         Secretary, Federal Communications                       World Communications dba GLOBE
                                                      presentation was made, and (2)                            Commission.                                             WIRELESS, GMPCS Personal
                                                      summarize all data presented and                             D All hand-delivered or messenger-                   Communications, Inc., ShipCom, L.L.C.
                                                      arguments made during the                                 delivered paper filings for the                         (formerly M M R Radio, L.L.C.), Stratos
                                                      presentation. If the presentation                         Commission’s Secretary must be                          Mobile Networks Inc., Exxon
                                                      consisted in whole or in part of the                      delivered to FCC Headquarters at 445                    Communications Company, Vizada,
                                                      presentation of data or arguments                         12th St. SW., Room TW–A325,                             Inc., Raytheon Service Co., Telemar
                                                      already reflected in the presenter’s                      Washington, DC 20554. The filing hours                  USA LLC, MVS USA Inc., A–N–D
                                                      written comments, memoranda or other                      are 8:00 a.m. to 7:00 p.m. All hand                     Group Plc, Selex ES Ltd, Selex ES Ltd,
                                                      filings in the proceeding, the presenter                  deliveries must be held together with                   NSSLGlobal, Airtime Billing
                                                      may provide citations to such data or                     rubber bands or fasteners. Any                          Department.
                                                      arguments in his or her prior comments,                   envelopes and boxes must be disposed
                                                      memoranda, or other filings (specifying                   of before entering the building.                        D. Initial Paperwork Reduction Analysis
                                                      the relevant page and/or paragraph                           D Commercial overnight mail (other                     5. This document does not contain a
                                                      numbers where such data or arguments                      than U.S. Postal Service Express Mail                   proposed information collection(s)
                                                      can be found) in lieu of summarizing                      and Priority Mail) must be sent to 9300                 subject to the Paperwork Reduction Act
                                                      them in the memorandum. Documents                         East Hampton Drive, Capitol Heights,                    of 1995 (PRA, Pub. L. 104–13). In
                                                      shown or given to Commission staff                        MD 20743.                                               addition, therefore, it does not contain
                                                      during ex parte meetings are deemed to                       D U.S. Postal Service first-class,                   any new or modified information
                                                      be written ex parte presentations and                     Express, and Priority mail must be                      collection burden for small business
                                                      must be filed consistent with rule                        addressed to 445 12th Street SW.,                       concerns with fewer than 25 employees,
                                                      1.1206(b). In proceedings governed by                     Washington DC 20554.                                    pursuant to the Small Business
                                                      rule 1.49(f) or for which the                                People with Disabilities: To request                 Paperwork Relief Act of 2002, Public
                                                      Commission has made available a                           materials in accessible formats for                     Law 107–198, see 44 U.S.C. 3506(c)(4).
                                                      method of electronic filing, written ex                   people with disabilities (braille, large
                                                      parte presentations and memoranda                         print, electronic files, audio format),                 II. Introduction
                                                      summarizing oral ex parte                                 send an email to fcc504@fcc.gov or call                    6. In this Second Further Notice of
                                                      presentations, and all attachments                        the Consumer & Governmental Affairs                     Proposed Rulemaking (2016 Accounting
                                                      thereto, must be filed through the                        Bureau at 202–418–0530 (voice), 202–                    Authority Second FNPRM), we propose
                                                      electronic comment filing system                          418–0432 (tty).                                         to transition the functions and duties
                                                      available for that proceeding, and must                                                                           performed by the Commission as an
                                                                                                                C. Initial Regulatory Flexibility Analysis
                                                      be filed in their native format (e.g., .doc,                                                                      accounting authority to private
                                                      .xml, .ppt, searchable .pdf). Participants                  3. As required by the Regulatory                      accounting authorities. In doing so, we
                                                      in this proceeding should familiarize                     Flexibility Act of 1980 (RFA),2 the                     seek to revisit findings in the 1999
                                                      themselves with the Commission’s ex                       Commission has prepared an Initial
asabaliauskas on DSK3SPTVN1PROD with PROPOSALS




                                                                                                                                                                        Report and Order and Further Notice of
                                                      parte rules.                                              Regulatory Flexibility Analysis (IRFA)                  Proposed Rulemaking (1999 Accounting
                                                                                                                of the possible significant economic                    Authority Order & FNPRM),3 which
                                                      B. Comment Period and Procedures                          impact on small entities of the policies
                                                        2. Pursuant to sections 1.415 and                       and rules proposed in this Second                         3 1998 Biennial Regulatory Review—Review of

                                                      1.419 of the Commission’s rules, 47 CFR                   FNPRM. The IRFA is found near the end                   Accounts Settlement in the Maritime Mobile and
                                                      1.415, 1.419, interested parties may file                 of this document. We request written                    Maritime Mobile-Satellite Radio Services and
                                                                                                                                                                        Withdrawal of the Commission as an Accounting
                                                      comments and reply comments on or                         public comment on the analysis.                         Authority in the Maritime Mobile and the Maritime
                                                                                                                                                                        Mobile-Satellite Radio Services, Report and Order
                                                        1 47   CFR 1.1200 et seq.                                 2 See   5 U.S.C. 603.                                 and Further Notice of Proposed Rulemaking, 15



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                                                                                 Federal Register / Vol. 82, No. 9 / Friday, January 13, 2017 / Proposed Rules                                                      4271

                                                      included the Commission’s decision                       satellite communications services are                     11. When the Commission last
                                                      that it should withdraw as an                            conducted by satellite. Payment for the                considered this matter more than fifteen
                                                      accounting authority in the maritime                     services provided by the                               years ago, it found no public policy
                                                      mobile and maritime mobile-satellite                     telecommunications operators involves                  reason for the Commission’s continued
                                                      radio services.4 The Commission                          interaction with an entity known as an                 function as an accounting authority,10
                                                      tentatively concluded that a three-year                  ‘‘accounting authority,’’ which settles an             and concluded in the Report and Order
                                                      transition period following adoption of                  account between the                                    section of the decision, therefore, that
                                                      a Report and Order was appropriate to                    telecommunications operator and the                    the Commission should withdraw as a
                                                      permit the preparation and                               customer. In practice, the                             clearinghouse for the settlement of
                                                      implementation of a plan to ensure a                     telecommunications operator, the earth                 accounts in the maritime mobile radio,
                                                      smooth, non-disruptive transition to                     or coast station, sends its bill either to             maritime mobile-satellite, and other
                                                      private accounting authorities, and to                   the accounting authority that the                      satellite-based communications
                                                      develop the transition plan.5 Although                   customer has designated to act for it or               services.11 The Commission tentatively
                                                      in that Order the Commission                             to an ‘‘accounting authority of last                   concluded that it should not designate
                                                      concluded that ‘‘the Commission shall                    resort,’’ which, as the name implies,                  a new accounting authority of last
                                                      cease operating as an accounting                         settles accounts for customers that have               resort,12 and that a three year transition
                                                      authority for settling accounts for                      not designated a particular accounting                 plan was sufficient to ensure a smooth
                                                      maritime mobile, maritime satellite,                     authority. The function of the                         transition.13 The Commission sought
                                                      aircraft,6 and handled terminal radio                    accounting authority, also referred to as              further comment on these tentative
                                                      services,’’ and that ‘‘a transition period               a ‘‘clearinghouse’’ or ‘‘settlement                    conclusions.14
                                                      is necessary to allow for an orderly                     authority,’’ involves presenting the bill              IV. Discussion
                                                      transition to a full privatization of the                to the customer, accepting payment
                                                      accounts-settlement function,’’ we                       from the customer, and remitting the                      12. In the Order portion of the 1999
                                                      stopped short of proscribing a transition                collected funds to the                                 R&O and FNPRM, the Commission
                                                      plan, instead seeking further comment                    telecommunications operator.                           announced its decision to withdraw
                                                      ‘‘on a number of proposals regarding                        10. Historically, most nations required             from the accounting authority function.
                                                      how best to implement this                               individual ships to settle their accounts              Additionally, it revised section 3.10(e)
                                                      transition.’’ 7                                          with their telecommunications provider;                to make explicit the authorities’
                                                         7. The completion of a plan based on                  however, since 1934, the Commission                    obligations not to discriminate,15
                                                      those comments, however, was                             has acted as an accounting authority in                grandfathered the accounting authority
                                                      subsequently delayed. Thus, no                           the United States, to settle accounts for              of EXXON to permit it to continue to
                                                      definitive timeline for the transition to                maritime, aircraft, and hand-held                      settle accounts only for its ships, and
                                                      implement our decision in the Order to                   terminal radio services to both private                provided guidance to allow applicants
                                                      withdraw as accounting authority has                     users and other U.S. federal government                to amend their pending applications in
                                                      been established.                                        agencies. Over time, the Commission                    light of the change to section 3.10(e). In
                                                         8. We continue to believe that it is in               has reduced its accounting authority or                the Second FNPRM, the Commission
                                                      the public interest for the Commission                   clearinghouse function related to the                  requested comments on two issues.
                                                      to withdraw as an accounting authority.                  maritime mobile radio services and the                 First, the Commission sought comment
                                                      Given the passage of time, we now, in                    satellite-based services, including                    on whether to appoint or allow an entity
                                                      this 2016 Accounting Authority Second                    aeronautical and hand-held terminals.                  to take over the Commission’s function
                                                      FNPRM, seek further comment on the                       The primary reason for this reduction is               as the accounting authority of last
                                                      appropriate transition plan and period                   that private accounting authorities                    resort, require customers to pre-
                                                      to implement our decision in the 1999                    provide similar account settlement                     subscribe to an accounting authority or
                                                      Accounting Authority Order & FNPRM                       services for U.S. users. Certification and             to designate an accounting authority on
                                                      to withdraw as an accounting authority                   operation of private accounting                        every message, or to develop a formula
                                                      in the maritime mobile and maritime                      authorities are governed under part 3 of               to spread undesignated messages among
                                                      mobile-satellite radio services.                         our rules, which ensure that qualified                 several private accounting authorities.
                                                                                                               applicants are authorized as accounting                Second, the Commission tentatively
                                                      III. Background                                                                                                 concluded that the appropriate phase-
                                                                                                               authorities and that such authorities,
                                                         9. International maritime mobile                      once approved, have adequate guidance                  out period was three years following
                                                      communications are HF or VHF radio                       of the standard of conduct required of                 Federal Register publication of a final
                                                      communications between a ship and a                      them by the Commission. We believe                     order, and invited comment.
                                                      coast station operated by the                            that this process has been working                     A. Withdrawal by the Commission From
                                                      telecommunications operator in the                       effectively.8 Currently, there are twenty-             the Accounting Authority Function
                                                      country in which the station is located,                 two entities certified as U.S. private
                                                      and international maritime mobile-                                                                                13. In the 1999 R&O and FNPRM, the
                                                                                                               accounting authorities.9                               Commission decided to withdraw from
                                                      FCC Rcd 20703 (1999) (1999 Accounting Authority            8 See Letter from Bruce Henoch, Inmarsat, to
                                                                                                                                                                      performing the functions of an
                                                      Order & FNPRM).                                          Accounting Authority Certification Office, Federal     accounting authority, and to leave the
                                                         4 Id.
                                                                                                                                                                      settlement of accounts to the private
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                                                                                                               Communications Commission (dated April 20,
                                                         5 Id. at 20717.
                                                                                                               2015); Letter from Robert Swanson, Airbus Defense
                                                         6 The focus of this FNPRM is the effect on            and Space, to Marlene Dortch, Federal                  any certified U.S. accounting authority to the
                                                      maritime communications, as the Commission has           Communications Commission (dated January 30,           settlement of accounts for only one class of service.
                                                      not, for several years, settled aeronautical accounts.   2015); Letter from Steven Chernoff, Lukas, Nace,         10 1999 Accounting Authority Order & FNPRM at
                                                      It is important to note, however, that our               Gutierrez, and Sachs, LLP, to Accounting Authority
                                                                                                                                                                      20709.
                                                      withdrawal as accounting authority of last resort        Certification Officer, Federal Communications            11 Id. at 20723.
                                                      would include a cessation in our settling of             Commission (April 15, 2015) (providing inventories
                                                                                                                                                                        12 Id. at 20715.
                                                      accounts for maritime mobile, maritime satellite,        of accounting authority settlements).
                                                                                                                                                                        13 Id. at 20718.
                                                      aircraft, and handled terminal radio services, as we       9 Some of these private accounting authorities
                                                      previously concluded.                                    may not currently settle accounts for maritime           14 Id. at 20715, 20723.
                                                         7 Id.                                                 services; however, our certification does not limit      15 47 CFR 3.10(e).




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                                                      4272                      Federal Register / Vol. 82, No. 9 / Friday, January 13, 2017 / Proposed Rules

                                                      accounting authorities subject to part 3                Commission’s accounting authority                       cycle, and asked that the FCC defer
                                                      of our rules. Although the Commission                   services have anticipated the change,                   termination of its accounting authority
                                                      never implemented a transition plan,                    and they have initiated a transition                    responsibility ‘‘until an [sic] alternative
                                                      many users of the Commission’s                          process in contracting with other                       billing and payment arrangements
                                                      services subsequently have transitioned                 accounting authorities. Consequently,                   ensuring uninterrupted service can be
                                                      to one of these accounting authorities.                 we believe that most maritime mobile                    established.24 NTIA further urged that
                                                      We continue to believe that it is in the                satellite users will be able to                         the FCC either retain its accounting
                                                      public interest for the Commission to                   accommodate this change, and that they                  authority, or designate an authority of
                                                      withdraw as an accounting authority                     will act promptly to select an alternative              last resort that would ‘‘not charge more
                                                      and seek comment on our proposals to                    accounting authority. We therefore,                     than the Commission currently charges
                                                      do so below. The function of an                         recommend a one year transition period                  its accounts until users are notified and
                                                      accounting authority is not necessarily a               and seek comment on this                                given a chance to select their own
                                                      governmental function, but can be                       recommendation.                                         accounting authority or accept the terms
                                                      performed equally well by privately                       15. We continue to believe that we                    offered.’’ 25
                                                      owned entities, subject to Commission                   should not designate a new accounting                      18. We agree that, as part of an
                                                      oversight under our part 3 rules.16 Since               authority of last resort, but, rather,                  effective plan for the Commission to
                                                      the Commission last visited this issue,                 customers should designate an                           withdraw as an accounting authority,
                                                      U.S. private accounting authorities have                accounting authority for each call or                   U.S. Government agencies must have in
                                                      continued to succeed in providing these                 should presubscribe for the services of                 place alternate arrangements upon the
                                                      functions.17 We anticipate that our                     an accounting authority.19 We seek                      Commission’s withdrawal to ensure that
                                                      action to step away from the functions                  further comment on this tentative                       critical communications are not
                                                      of an accounting authority will create                  conclusion.                                             disrupted. In the more than fifteen
                                                      further competition for the settlement of                                                                       years, since our 1999 decision,
                                                                                                              B. Government Agencies
                                                      maritime and satellite accounts, and                                                                            Commission staff have contacted the
                                                      may thereby encourage the industry to                      16. In the 1999 R&O and FNPRM we                     various government agencies informing
                                                      provide the public with more choices in                 acknowledged that the Commission at                     them of the Commission’s intent to
                                                      obtaining settlement of their accounts.                 that time acted as the accounting                       terminate its accounting authority; as a
                                                         14. Since 1999, the number of users                  authority for the maritime and satellite                result, many of these various agencies,
                                                      relying on the Commission to provide                    communications of a majority of U.S.                    have moved to alternative accounting
                                                      accounting authority services has                       governmental agencies.20 At the time,                   authorities for some or all of their
                                                      decreased,18 even as the activity                       because we anticipated that Government                  services.26 In light of this trend, and the
                                                      handled by other accounting authorities,                agency users might have special needs                   more than fifteen years impacted
                                                      in general, appears to have increased in                that differ from other users, we                        entities have had to transition to a new
                                                      scope. We recognize that an immediate                   requested the agencies to address this                  accounting authority, we seek comment
                                                      departure of the Commission as an                       issue in their comments.21                              on the appropriate time period to
                                                      accounting authority will require those                    17. In their 1998 comments, the                      complete the Commission’s transition
                                                      U.S. international ship and satellite                   United States Coast Guard urged the                     from serving as accounting authority for
                                                      operators currently handled by the                      Commission to maintain a default                        government agencies. Movement of
                                                      Commission to select an alternative                     accounting authority, provide ample                     government agencies anticipating our
                                                      accounting authority. We also believe,                  notice to affected users and small vessel               change in function suggests that a
                                                      unlike in 1999 when we suggested a                      organizations, provide a smooth                         transition period shorter than the three-
                                                      three-year transition period, that                      transition process to a new default                     year period previously proposed is
                                                      maritime operators are far better                       accounting authority, and ensure the                    appropriate to accommodate these
                                                      prepared to adjust to the departure of                  economic impact on small entities is                    particular changes, including
                                                      the Commission as the accounting                        non-significant.22 The National                         anticipated government budget planning
                                                      authority. First, the Commission                        Telecommunications and Information                      changes. We propose that the transition
                                                      possesses the ability to contact current                Administration (NTIA), in coordination                  period for government and non-
                                                      users and thereby their expedite                        with the Interdepartment Radio                          government entities be the same. We
                                                      transition. Second, through outreach                    Advisory Committee (which includes                      seek comment on whether one year
                                                      and coordination with the maritime                      the Coast Guard), expressed concern                     suffices for government agencies to
                                                                                                              that the Commission’s withdrawal
                                                      industry, Commission staff have learned                                                                         transition to an alternative accounting
                                                                                                              might lead to disruption or curtailment
                                                      that many of those entities using the                                                                           authority. Alternatively, we invite
                                                                                                              of communication services to federal
                                                                                                                                                                      comment on whether this period should
                                                                                                              users, as well as increased cost to the
                                                        16 The FCC’s withdrawal as an accounting
                                                                                                                                                                      be longer or shorter.
                                                      authority will in no way change the rules by which      taxpayer.23 They requested that the FCC
                                                      we certify and monitor private entities serving as      retain its accounting authority, or, in the             C. Accounting Authority of Last Resort
                                                      accounting authorities for maritime mobile and          alternative, noted that most government                    19. The Commission historically has
                                                      maritime satellite services. See 47 CFR 3.1 et seq.     agencies operate on a three year budget
                                                        17 See 1999 R&O and FNPRM, 15 FCC Rcd at                                                                      served as the ‘‘accounting authority of
                                                      20706–09, paragraphs 7–12; See Letter from Bruce
                                                                                                                19 See id. at 20715 (tentatively concluding not to
                                                                                                                                                                      last resort’’ for the United States, which
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                                                      Henoch, Inmarsat, to Accounting Authority                                                                       resulted in the Commission receiving
                                                      Certification Office, Federal Communications            designate a new accounting authority of last resort).
                                                      Commission (dated April 20, 2015); Letter from            20 See 1999 R&O and FNPRM, 15 FCC Rcd at              from foreign telecommunications
                                                      Robert Swanson, Airbus Defense and Space, to            20709, para. 13.
                                                                                                                21 See 1999 R&O and FNPRM, 15 FCC Rcd at                24 Id.
                                                      Marlene Dortch, Federal Communications
                                                      Commission (dated January 30, 2015); Letter from        20709, para. 13.                                          25 Letter from William T. Hatch, Acting Associate

                                                      Steven Chernoff, Lukas, Nace, Gutierrez, and Sachs,       22 Letter from J.D. Hersey, Jr., Chief, Spectrum      Administrator, National Telecommunications and
                                                      LLP, to Accounting Authority Certification Officer,     Management Division, to Magalie Roman Salas,            Information Administration, to Magalie Roman
                                                      Federal Communications Commission (dated April          FCC Secretary, August 21, 1998.                         Salas, FCC Secretary, October 29, 1998.
                                                      15, 2015) (providing inventories of accounting            23 See Comments of the National                         26 Commission staff have confirmed the removal
                                                      authority settlements).                                 Telecommunications and Information                      of many of the terminals once billed to these
                                                        18 See supra n.5.                                     Administration, filed August 24, 1998, at page 2.       agencies from the FCC as the accounting authority.



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                                                                                Federal Register / Vol. 82, No. 9 / Friday, January 13, 2017 / Proposed Rules                                                      4273

                                                      operators all accounts for which the                    Department of Agriculture                                ‘‘default’’ accounting authority in order
                                                      customer did not designate a specific                   Department of Air Force                                  to send bills to mariners who have not
                                                      accounting authority.27 In 1999, we                     Department of the Army                                   chosen/designated a private accounting
                                                      tentatively concluded that we should                    Department of Commerce                                   authority? 33 Is there a need for the
                                                      not designate a new accounting                          Department of Defense—Office of                          Commission to adopt additional
                                                      authority of last resort.28 Instead, we                    Secretary of Defense                                  qualifying criteria for an existing
                                                      found that customers should designate                   Department of Energy                                     accounting authority to serve as a
                                                      an accounting authority for each call or                Department of Health and Human                           designated accounting authority of last
                                                      should presubscribe for the services of                    Services                                              resort? If so, what should the additional
                                                      an accounting authority.29 We noted,                    Department of Homeland Security—                         criteria be? We also seek comment on
                                                      however, that in order to prevent a                        United States Coast Guard                             any potential enforcement or authority
                                                      deleterious effect on safety                            Department of Justice                                    issues that may arise from each of the
                                                      communications, the Commission must                     Department of Justice—Federal Bureau                     proposed alternatives for providing an
                                                      take care to ensure a seamless transition                  of Investigation                                      accounting authority of last resort. We
                                                      to new accounting authorities.30                        Department of Justice—U.S. Drug                          also request that commenting parties
                                                         20. We continue to believe that,                        Enforcement Administration                            propose any other viable alternatives
                                                      although the functions of an accounting                 Department of the Interior                               that help ensure a smooth transition
                                                      authority of last resort may still be                   Department of the Navy                                   while relieving the Commission from
                                                      necessary to address infrequent                         Department of State                                      performing this function.
                                                      situations where an authority is or                     Department of Transportation                                22. We note that withdrawal of the
                                                      cannot be designated due to                             Department of Treasury                                   Commission as an accounting authority
                                                      circumstances beyond the control of the                 Department of Veteran Affairs                            without an effective transition plan
                                                      user, it remains the basic responsibility               Federal Aviation Administration                          could leave a gap for some U.S.
                                                      of the user, whether a private or                       Federal Emergency Management Agency                      maritime and satellite radio traffic for
                                                      governmental entity, to provide for an                  National Aeronautics and Space                           which no accounting authority is
                                                      accounting authority to handle its calls.                  Administration                                        designated. Thus, during any transition
                                                      However, as we withdraw as an                           National Science Foundation                              period and subsequently, we intend to
                                                      accounting authority, we tentatively                    On-Site Inspection Agency                                conduct outreach to make users aware
                                                      conclude, based on the commenters’                      U.S. Environmental Protection Agency                     of our decision and their options for
                                                      urging us, in 1998, to either retain our                U.S. General Services Administration                     ensuring that they continue to receive
                                                      accounting authority or ensure an                       United States Information Agency                         the services of an accounting authority.
                                                      alternative is in place before                          U.S. Postal Service                                         23. In any event, we believe that an
                                                      withdrawing,31 that it will be necessary                   21. Given the reduction of reliance on                accounting authority, whether selected
                                                      to have an alternative arrangement in                   the FCC as an accounting authority and                   by the ship, the provider, or a
                                                      place that will eliminate the possibility                                                                        competent default accounting authority,
                                                                                                              the resulting lower volume of
                                                      of messages being sent without having                                                                            must be in place for distress and safety
                                                                                                              customers 32 who will be affected when
                                                      an accounting authority necessary to                                                                             telecommunications on board ships,
                                                                                                              we withdraw as accounting authority
                                                      settle accounts. We seek comment on                                                                              particularly when a maritime mobile
                                                                                                              (see Table 1 above), we tentatively
                                                      possible approaches to ensure an                                                                                 satellite system is being used. We
                                                                                                              conclude that the best alternative is the
                                                      alternative is in place: (1) Requiring all
                                                                                                              first option noted above, to require all                 therefore seek comment on whether, if
                                                      customers to pre-subscribe to an
                                                                                                              customers to pre-subscribe to an                         we decline to designate an accounting
                                                      accounting authority or to designate an
                                                                                                              accounting authority or to designate an                  authority, we should designate an
                                                      accounting authority on every message;
                                                                                                              accounting authority on every message.                   accounting authority of last resort
                                                      (2) developing a formula to spread
                                                                                                              We seek comment on this tentative                        specifically for Global Maritime Distress
                                                      undesignated messages among several
                                                                                                              conclusion as well as the merits of each                 and Safety System (GMDSS) mobile
                                                      private accounting authorities; and/or
                                                                                                              of the three proposals. For example, is                  satellite communications.34 Although
                                                      (3) appointing through comparative
                                                                                                              it technically feasible, for U.S. maritime               maritime distress and certain safety
                                                      selection one of the private accounting
                                                                                                              and satellite radio traffic for which no                 communications are provided at no
                                                      authorities as the new authority of last
                                                      resort.                                                 accounting authority is designated and                   charge, other types of safety
                                                                                                              for which the customer is not able or                    communications do incur a charge. If
                                                      Table 1—Government Agencies Who                         willing to designate an accounting                       neither the designated nor a competent
                                                      Use the Commission as an Accounting                     authority on every message, to allow the                 default accounting authority exists, then
                                                      Authority                                               provider to bill for such traffic through                foreign earth stations may have no way
                                                      Defense Information Systems Agency                      a certified accounting authority of its                  to bill the U.S. satellite user. As a result,
                                                                                                              choice? Is this feasible for a ship-to-                  the user may, through no fault of its
                                                         27 See 1999 R&O and FNPRM, 15 FCC Rcd at             shore radiotelephone call made through
                                                      20715, paragraph 25.                                    a foreign coast station? In the                            33 There are few users of maritime public coast
                                                         28 Id. at para. 26.                                                                                           stations now due to the closure worldwide of public
                                                         29 Id.
                                                                                                              alternative, is it feasible to allow public              coast stations; however, ensuring the safety of such
                                                                                                              coast stations to designate their own
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                                                         30 Id. at para. 27 (citing Coast Guard Comments                                                               users is important. We, therefore, seek comment on
                                                      at 1).                                                                                                           what different approaches may be necessary for
                                                         31 Letter from J.D. Hersey, Jr., Chief, Spectrum       32 We note that, for 2016, traffic billed by the FCC   radio communications via a foreign public coast
                                                      Management Division, to Magalie Roman Salas,            as accounting authority to private and/or third          station versus satellite communications via a
                                                      FCC Secretary, August 21, 1998. See, also               parties is exclusively satellite traffic, and ask        mobile satellite communications provider.
                                                      Comments of the National Telecommunications and         commenters to address whether that fact, coupled           34 INMARSAT continues to be the only

                                                      Information Administration, filed August 24, 1998,      with the potential to allow providers to choose a        worldwide maritime mobile satellite system
                                                      at page 2 and Letter from William T. Hatch, Acting      U.S. accounting authority to bill traffic for which      providing these safety communications.
                                                      Associate Administrator, National                       no accounting authority has been designated by the       INMARSAT will commission a new ship terminal
                                                      Telecommunications and Information                      customer, mitigates any concerns regarding a             intended to carry distress and safety
                                                      Administration, to Magalie Roman Salas, FCC             potential gap in service once the FCC withdraws as       communications only if the application designates
                                                      Secretary, October 29, 1998.                            accounting authority of last resort.                     an accounting authority.



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                                                      4274                      Federal Register / Vol. 82, No. 9 / Friday, January 13, 2017 / Proposed Rules

                                                      own, find that its ship earth station has               Initial Regulatory Flexibility Analysis                completion of the plan was
                                                      been barred for non-payment of bills.                     1. As required by the Regulatory                     subsequently delayed and until now,
                                                      We understand that, although a ship                     Flexibility Act (RFA),35 the Commission                the proceeding has been inactive.
                                                      mobile device has been ‘‘barred’’ from                  prepared this Initial Regulatory                         3. In this 2016 Accounting Authority
                                                      the network provider (e.g., foreign earth               Flexibility Analysis (IRFA) of the                     Second FNPRM, we now seek comment
                                                      station), a ship can still initiate a ship-             possible significant economic impact on                on whether the findings in the 1999
                                                      to-shore distress alert. In such a                      small entities by the policies and rules               Accounting Authority Order & FNPRM
                                                      situation, however, it could not                        proposed in this Second Further Notice                 remain in the public interest. As such,
                                                      communicate further with the Coast                      of Proposed Rulemaking (Second                         we seek input on whether the
                                                      Guard, even if those further                            FNPRM). Written comments are                           Commission should withdraw as an
                                                                                                              requested on this IRFA. Comments must                  accounting authority in the maritime
                                                      communications are safety related. A
                                                                                                              be identified as responses to the IRFA                 mobile and maritime mobile-satellite
                                                      ship on the high seas that has been
                                                                                                              and must be filed by the deadline for                  radio services. In doing so, we seek
                                                      barred from such communications may                                                                            information on whether interested
                                                      be a danger to itself and others, as well               comments on this Second FNPRM. The
                                                                                                              Commission will send a copy of this                    parties continue to support the
                                                      as a potential problem for the Coast                                                                           Commission’s 1999 decision and if not,
                                                      Guard. We agree with commenters that                    Second FNPRM, including the IRFA, to
                                                                                                              the Chief Counsel for Advocacy of the                  why that decision should be revisited or
                                                      any change in accounting authorities                                                                           amended.
                                                      must ensure that critical                               Small Business Administration (SBA).36
                                                      communications are not disrupted.                       In addition, this Second FNPRM and                     B. Legal Basis
                                                      First, during any transition period that                IRFA (or summaries thereof) will be                      4. This Second Further Notice of
                                                                                                              published in the Federal Register.37                   Proposed Rulemaking is adopted
                                                      we adopt, we will notify users of
                                                      GMDSS mobile satellite                                  A. Need for and Objectives of, the                     pursuant to Sections 1, 4(i), 4(j), 11,
                                                      communications of our decision to                       Notice                                                 201–205, 303(r) of the Communications
                                                      withdraw as an accounting authority                        2. In this Second Further Notice of                 Act of 1934, as amended, 47 U.S.C. 151,
                                                      and of their need to select a new                       Proposed Rulemaking (Second FNPRM),                    154(i), 161, 201–205, and 303(r).
                                                      accounting authority. Moreover, we seek                 we propose to transition the functions                 C. Description and Estimate of the
                                                      comment, not only on designation of an                  and duties performed by the                            Number of Small Entities To Which the
                                                      accounting authority of last resort for all             Commission as an accounting authority                  Rules Will Apply
                                                      users, including GMDSS mobile satellite                 to private accounting authorities. In                     5. The RFA directs agencies to
                                                      and GMDSS maritime mobile                               doing so, we seek to revisit findings in               provide a description of, and where
                                                      communications, but also on whether                     the 1999 Report and Order and Further                  feasible, an estimate of the number of
                                                      there are other options to ensure that the              Notice of Proposed Rulemaking (1999                    small entities that may be affected by
                                                      Commission’s withdrawal as accounting                   Accounting Authority Order &                           the proposed rules and policies, if
                                                      authority would not cause ship stations                 FNPRM),38 which included the                           adopted.40 The RFA generally defines
                                                      to become barred because they were                      Commission’s decision that it should                   the term ‘‘small entity’’ as having the
                                                      unaware that they need to choose a new                  withdraw as an accounting authority in                 same meaning as the terms ‘‘small
                                                      accounting authority.                                   the maritime mobile and maritime                       business,’’ ‘‘small organization,’’ and
                                                                                                              mobile-satellite radio services. The                   ‘‘small governmental jurisdiction.’’ 41 In
                                                         24. We also invite comment whether                   Commission tentatively concluded that
                                                      advancements in technology and the                                                                             addition, the term ‘‘small business’’ has
                                                                                                              a three-year transition period following               the same meaning as the term ‘‘small
                                                      business community could reduce the                     adoption of a Report and Order was
                                                      burdens associated with our proposal to                                                                        business concern’’ under the Small
                                                                                                              appropriate to permit the preparation                  Business Act.42 A ‘‘small business
                                                      withdraw as accounting authority of last                and implementation of a plan to ensure
                                                      resort. Technological changes may                                                                              concern’’ is one which: (1) Is
                                                                                                              a smooth, non-disruptive transition to                 independently owned and operated; (2)
                                                      mitigate concerns that stem from the                    private accounting authorities, and to
                                                      fact that the Commission’s service as the                                                                      is not dominant in its field of operation;
                                                                                                              develop the transition plan.39 The                     and (3) satisfies any additional criteria
                                                      accounting authority of last resort has
                                                                                                                                                                     established by the SBA.43
                                                      made it unnecessary for users to be                       35 5 U.S.C. 603. The RFA, 5 U.S.C. 601–612 has
                                                                                                                                                                        6. The rules proposed in this Second
                                                      aware that they may select a private                    been amended by the Small Business Regulatory
                                                                                                              Enforcement Fairness Act of 1996 (SBREFA), Public      Notice of Proposed Rulemaking apply to
                                                      accounting authority. We can promptly                   Law 104–121, Title II, 110 Stat. 847 (1996).           entities providing account-settlement
                                                      notify users which relied on the                          36 5 U.S.C. 603(a).
                                                                                                                                                                     services for maritime mobile and
                                                      Commission as accounting authority of                     37 Id.
                                                                                                                                                                     maritime mobile-satellite radio services.
                                                      last resort for the need to select an                     38 1998 Biennial Regulatory Review—Review of

                                                      alternative accounting authority. In                    Accounts Settlement in the Maritime Mobile and
                                                                                                              Maritime Mobile-Satellite Radio Services and           filing comments to October 25, 1999 and reply
                                                      doing so, we seek comment on notifying                  Withdrawal of the Commission as an Accounting          comments to November 29, 1999. The extension of
                                                      users from the past seven years.                        Authority in the Maritime Mobile and the Maritime      time was made to allow for a fuller record.
                                                                                                                                                                        40 5 U.S.C. 603(b)(3).
                                                      Alternatively, should we make the                       Mobile-Satellite Radio Services, Report and Order
                                                                                                                                                                        41 5 U.S.C. 601(6).
                                                      period of users which relied on the                     and Further Notice of Proposed Rulemaking, 15
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                                                                                                              FCC Rcd 20703 (1999) (1999 R&O and FNPRM).                42 5 U.S.C. 601(3) (incorporating by reference the
                                                      Commission as carrier of last resort                    The Commission as part of its Further Notice of        definition of ‘‘small-business concern’’ in the Small
                                                      shorter or longer? In addition, the                     Proposed Rulemaking sought comments to be filed        Business Act, 15 U.S.C. 632). Pursuant to 5 U.S.C.
                                                      Commission could review on a periodic                   by comments August 23, 1999, and replies by            601(3), the statutory definition of a small business
                                                                                                              September 8, 1999.                                     applies ‘‘unless an agency, after consultation with
                                                      basis the plan it adopts to ensure that                   39 1998 Biennial Regulatory Review—Review of         the Office of Advocacy of the Small Business
                                                      the need for accounting authority                       Accounts Settlement in the Maritime Mobile and         Administration and after opportunity for public
                                                      services is being met, including distress               Maritime Mobile-Satellite Radio Services and           comment, establishes one or more definitions of
                                                      and safety communications on board                      Withdrawal of the Commission as an Accounting          such term which are appropriate to the activities of
                                                                                                              Authority in the Maritime Mobile and the Maritime      the agency and publishes such definition(s) in the
                                                      ships, and determine whether further                    Mobile-Satellite Radio Services, Order, 14 FCC Rcd     Federal Register.’’
                                                      modifications are appropriate.                          13504 (1999). The order extended the deadline for         43 15 U.S.C. 632.




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                                                                                Federal Register / Vol. 82, No. 9 / Friday, January 13, 2017 / Proposed Rules                                            4275

                                                      Small businesses may be able to become                  F. Federal Rules That Overlap,                         Comments may be filed electronically
                                                      accounting clearinghouses, as the                       Duplicate or Conflict With These                       using the Internet by accessing the
                                                      establishment of such a function does                   Proposed Requirements                                  ECFS: http://fjallfoss.fcc.gov/ecfs2/.
                                                      not appear to involve high                                9. None.                                                D Paper Filers: Parties who choose to
                                                      implementation costs. The rules also                                                                           file by paper must file an original and
                                                      apply to existing maritime mobile and                   V. Ordering Clauses                                    one copy of each filing. Because more
                                                      maritime satellite customers who have                     10. It is ordered that pursuant to                   than one docket number appears in the
                                                      not presubscribed to a U.S. accounting                  sections 4(i), 4(j), 11, 201–205 and                   caption of this proceeding, filers must
                                                      authority and are, therefore, billed                    303(r) of the Communications Act of                    submit two additional copies for each
                                                      through the FCC as the accounting                       1934, as amended, 47 U.S.C. 154(i),                    additional docket number.
                                                      authority of last resort. An estimated                  154(j), 161, 201–205 and 303(r), this                     • Filings can be sent by hand or
                                                                                                              Second Further Notice of Proposed                      messenger delivery, by commercial
                                                      thirty small entities have been billed for
                                                                                                              Rulemaking is adopted.                                 overnight courier, or by first-class or
                                                      traffic by the FCC as an accounting
                                                                                                                11. It is further ordered that the                   overnight U.S. Postal Service mail. All
                                                      authority in 2016. The proposed action
                                                                                                              Commission’s Consumer and                              filings must be addressed to the
                                                      in this Second Notice of Proposed                                                                              Commission’s Secretary, Office of the
                                                      Rulemaking does not appear to involve                   Governmental Affairs Bureau, Reference
                                                                                                              Information Center, shall send a copy of               Secretary, Federal Communications
                                                      high implementation costs for such                                                                             Commission.
                                                      entities.                                               this Second Further Notice of Proposed
                                                                                                                                                                        Æ All hand-delivered or messenger-
                                                                                                              Rulemaking, including the Initial
                                                      D. Reporting, Recordkeeping, and Other                                                                         delivered paper filings for the
                                                                                                              Regulatory Flexibility Analysis, to the
                                                      Compliance Requirements                                                                                        Commission’s Secretary must be
                                                                                                              Chief Counsel for Advocacy of the Small
                                                                                                                                                                     delivered to FCC Headquarters at 445
                                                                                                              Business Administration.
                                                        7. The proposed action in this Second                                                                        12th St. SW., Room TW–A325,
                                                      Further Notice of Proposed Rulemaking                   Federal Communications Commission.                     Washington, DC 20554. The filing hours
                                                      would affect those entities already                     Marlene H. Dortch,                                     are 8:00 a.m. to 7:00 p.m. All hand
                                                      certified and those applying for                        Secretary.                                             deliveries must be held together with
                                                      certification as a private accounting                   [FR Doc. 2017–00597 Filed 1–12–17; 8:45 am]            rubber bands or fasteners. Any
                                                      authority in the maritime mobile,                       BILLING CODE 6712–01–P
                                                                                                                                                                     envelopes and boxes must be disposed
                                                      maritime mobile-satellite, aeronautical                                                                        of before entering the building.
                                                      and other satellite-based radio services.                                                                         D Commercial overnight mail (other
                                                      The amended rule, however, merely                       FEDERAL COMMUNICATIONS                                 than U.S. Postal Service Express Mail
                                                      clarifies an existing requirement                       COMMISSION                                             and Priority Mail) must be sent to 9300
                                                      imposed on accounting authorities. It,                                                                         East Hampton Drive, Capitol Heights,
                                                      therefore, does not alter the reporting,                47 CFR Part 54                                         MD 20743.
                                                                                                                                                                        D U.S. Postal Service first-class,
                                                      recordkeeping or other compliance                       [WC Docket No. 10–90; FCC 16–178]
                                                                                                                                                                     Express, and Priority mail must be
                                                      requirements of certified accounting
                                                                                                              Connect America Fund                                   addressed to 445 12th St. SW.,
                                                      authorities.
                                                                                                                                                                     Washington, DC 20554.
                                                      E. Steps Taken To Minimize Significant                  AGENCY:  Federal Communications                           • People with Disabilities: Contact the
                                                      Economic Impact on Small Entities and                   Commission.                                            FCC to request reasonable
                                                      Significant Alternatives Considered                     ACTION: Proposed rule.                                 accommodations (accessible format
                                                                                                                                                                     documents, sign language interpreters,
                                                         8. As stated above, we propose to                    SUMMARY:    In this document, the Federal              CART, etc.) by email: FCC504@fcc.gov
                                                      transition the functions and duties                     Communications Commission                              or phone: (202) 418–0530 or TTY: (202)
                                                      performed by the Commission as an                       (Commission) seeks comment on                          418–0432.
                                                      accounting authority to private                         whether to expand the Alternative                      FOR FURTHER INFORMATION CONTACT:
                                                      accounting authorities. In doing so, we                 Connect America Cost Model (A–CAM)                     Alexander Minard, Wireline
                                                      seek to revisit findings in 1999                        budget for rate-of-return carriers to                  Competition Bureau, (202) 418–7400 or
                                                      Accounting Authority Order &                            provide additional funding with an                     TTY: (202) 418–0484.
                                                      FNPRM),44 which included the                            associated increase in broadband                       SUPPLEMENTARY INFORMATION: This is a
                                                      Commission’s decision that it should                    deployment obligations.                                synopsis of the Commission’s Further
                                                      withdraw as an accounting authority in                  DATES: Comments are due on or before                   Notice of Proposed Rulemaking
                                                      the maritime mobile and maritime                        February 13, 2017 and reply comments                   (FNPRM) in WC Docket No. 10–90; FCC
                                                      mobile-satellite radio services. We seek                are due on or before February 27, 2017.                16–178, adopted on December 19, 2016
                                                      comment on the impact of our proposals                  If you anticipate that you will be                     and released on December 20, 2016. The
                                                      on small entities and on any possible                   submitting comments, but find it                       full text of this document is available for
                                                      alternatives that could minimize the                    difficult to do so within the period of                public inspection during regular
                                                      impact of our rules on small entities.                  time allowed by this document, you                     business hours in the FCC Reference
                                                                                                              should advise the contact listed below                 Center, Room CY–A257, 445 12th St.
                                                                                                              as soon as possible.                                   SW., Washington, DC 20554 or at the
asabaliauskas on DSK3SPTVN1PROD with PROPOSALS




                                                        44 1998 Biennial Regulatory Review—Review of

                                                      Accounts Settlement in the Maritime Mobile and          ADDRESSES: You may submit comments,                    following Internet address: http://
                                                      Maritime Mobile-Satellite Radio Services and            identified by WC Docket No. 10–90, by
                                                      Withdrawal of the Commission as an Accounting
                                                                                                                                                                     transition.fcc.gov/Daily_Releases/Daily_
                                                      Authority in the Maritime Mobile and the Maritime       any of the following methods:                          Business/2016/db1220/FCC-16-
                                                      Mobile-Satellite Radio Services, Report and Order          • Federal eRulemaking Portal: http://               178A1.pdf.
                                                      and Further Notice of Proposed Rulemaking, 15           www.regulations.gov. Follow the
                                                      FCC Rcd 20703 (1999) (1999 R&O and FNPRM).              instructions for submitting comments.                  I. Further Notice of Proposed
                                                      The Commission as part of its Further Notice of
                                                                                                                 • Federal Communications                            Rulemaking
                                                      Proposed Rulemaking sought comments to be filed
                                                      by comments August 23, 1999, and replies by             Commission’s Web site: http://                            1. In this Further Notice of Proposed
                                                      September 8, 1999.                                      fjallfoss.fcc.gov/ecfs2/. Electronic Filers:           Rulemaking, the Commission seeks


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Document Created: 2017-01-13 02:45:16
Document Modified: 2017-01-13 02:45:16
CategoryRegulatory Information
CollectionFederal Register
sudoc ClassAE 2.7:
GS 4.107:
AE 2.106:
PublisherOffice of the Federal Register, National Archives and Records Administration
SectionProposed Rules
ActionNotice of proposed rulemaking.
DatesComments due on or before March 14, 2017, and reply comments due on or before April 13, 2017.
ContactDana Shaffer, Office of Managing Director at (202) 418-0832.
FR Citation82 FR 4269 

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