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Pursuant to Section 1.419(d) of the Commission's Rules, 47 C.F.R.  1.419(d), Parties need file only one copy of an electronic submission. In completing the transmittal screen, a party filing a comment, reply or supporting document should include his or her full name, U.S. Postal Service mailing address and the lead Docket number for this proceeding, which is IB Docket No. 9896. The Commission will consider electronically filed comments that conform to the guidelines of this section part of the record in this proceeding and accord them the same treatment as comments filed on paper.  X 4Ԋ45.` ` Parties filing comments, replies and supporting documents on paper must also file their submissions on diskette. Such a submission should be on a 3.5 inch diskette formatted in an IBMcompatible format, using MS DOS and Word Perfect 5.1 for Windows or compatible software. The diskette should be submitted in "read only" mode. The diskette"  20*%%33;" should be clearly marked with the party's name, the proceeding to which it is addressed (in this case, IB Docket No. 9896), the type of pleading (comment or reply) and the date of submission. The diskette should be accompanied by a cover letter setting forth the same information. Each diskette should contain only one party's pleading, preferably in a single electronic file. The party should submit one copy of the diskette to John Copes, International Bureau, Telecommunications Division, 445 12th St., S.W., Room 6C847, Washington, D.C. 20554. The party should file an exact copy of the diskette, identically marked, with the Commission's copy contractor, International Transcription Service, Inc., at the address shown above in paragraph 43.  X 4XX1c46.` ` Persons wishing to comment on the proposed and/or modified information  X 4collections should file written comments on or before August 23, 1999. The Office of Management and Budget (OMB) must submit its written comments on the proposed and/or modified information collections, if any, on or before 60 days after the date of publication of  X 4the summary of this Further Notice of Proposed Rulemaking in the Federal Register. In addition to filing comments with the Secretary, they should also submit a copy of any comments on the information collections contained herein Judy Boley, Federal Communications Commission, Room 1C804, 445 12th Street, S.W., Washington, DC 20554, or via the Internet to jboley@fcc.gov and to Timothy Fain, OMB Desk Officer, 10236 NEOB, 725 17th Street, N.W., Washington, D.C. 20503.  X64  X'  #Xj\  P6G;_XP#\[ VI. CONCLUSION  X'c  X4 47.` ` Based on the above analysis, we conclude that the Commission shall cease operating as an accounting authority for settling accounts for maritime mobile, maritime satellite, aircraft, and handheld terminal radio services. We further conclude that a transition period is necessary to allow for an orderly transition to a full privatization of the accountssettlement function and seek comment on a number of proposals regarding how best to implement this transition. Finally, we amend Section 3.10(e) of our rules to make explicit that certified accounting authorities must deal with the public in a nondiscriminatory manner.  X9' >VII. ORDERING CLAUSES ă  X 448.` ` Accordingly, IT IS ORDERED, pursuant to Sections 4(i), 4(j), 11, 201205 and 303(r) of the Communications Act of 1934, as amended, 47 U.S.C.  154(i), 154(j),161,  X4201205 and 303(r), that this Report and Order IS HEREBY ADOPTED.  X!449.` ` IT IS FURTHER ORDERED pursuant to Sections 4(i), 4(j), 11, 201205 and 303(r) of the Communications Act of 1934, as amended, 47 U.S.C.  154(i), 154(j),161,""20*%%33 "  X4201205 and 303(r), that this Further Notice of Proposed Rulemaking IS HEREBY ADOPTED and comments ARE REQUESTED as described above.  X450.` ` IT IS FURTHER ORDERED that Section 3.10(e) of the Commission's rules is amended to read as shown in Appendix A.  Xx451.` ` IT IS FURTHER ORDERED that the Office of Public Affairs, Reference  Xa4Operations Division, SHALL SEND a Copy of this Report and Order and Further Notice of  XL4Proposed Rulemaking, including the regulatory flexibility certification, to the Chief Counsel for Advocacy of the Small Business Administration. ` `  ,hh]FEDERAL COMMUNICATIONS COMMISSION ` `  ,hh]Magalie Roman Salas ` `  ,hh]Secretary"20*%%33 "  X4u APPENDIX A   X'v Changes to 47 C.F.R. Part 3 of the Commission's Rules ă Part 3 of the Commission's Rules and Regulations (Chapter 1 of Title 47 of the Code of Federal Regulations) is amended as follows:  XH41. The authority citation for Part 3 continues to read as follows: Authority: 47 U.S.C. 154(i), 154(j) and 303(r). PART 3AUTHORIZATION AND ADMINISTRATION OF ACCOUNTING AUTHORITIES IN MARITIME AND MARITIME MOBILESATELLITE RADIO SERVICES  X 42.The Table of Contents for Part 3 is unchanged  Xy43.Section 3.10 is amended by revising the first sentence of paragraph (e) to read as follows: (e) Applicants must offer their services to any member of the public making a reasonable request therefor, without undue discrimination against any customer or class of customer, and fees charged for providing such services shall be reasonable and nondiscriminatory. * * * * *  X'  X74 "720*%%33"  X4u APPENDIX B  X' Final Regulatory Flexibility Analysis ă  X41.` ` As required by the Regulatory Flexibility Act (RFA),3Z? {O'#]\  PCo^P#эSee 5 U.S.C.  603. The RFA, see 5 U.S.C.  603 et seq., has been amended by the Contract With America Advancement Act of 1996, Pub. L. No. 104121, 110 Stat. 847 (1996) (CWAAA). Title II of the  yO'CWAAA is the Small Business Regulatory Enforcement Fairness Act of 1996 (SBREFA).#x6X@KX@# the Commission  X4included an Initial Regulatory Flexibility Analysis (IRFA) in the Notice of Proposed  Xx4Rulemaking (NPRM) in this proceeding.4&x? {O 'ԍSee 1998 Biennial ReviewReview of Accounts Settlement in the Maritime Mobile and Maritime MobileSatellite Radio Services and Withdrawal of the Commission as an Accounting Authority in the Maritime Mobile  {O 'and Maritime MobileSatellite Radio Services Except for Distress and Safety Communications, 13 FCC Rcd  {Oo '13651, 136656 (1998) (Notice). The Commission sought written public comment  Xc4on the proposals in the Notice, including comment on the IRFA. This Final Regulatory  XN4Flexibility Analysis (FRFA) conforms to the RFA.M5N? {O'ԍSee 5 U.S.C.  604.M  X ' A. Need for, and Objectives of, the Rule Adopted Here  X 42.` ` This Report and Order portion of this Report and Order and Further Notice of  X 4Proposed Rulemaking adopts an amendment to Section 3.10 of the Commission's Rules and Regulations to clarify that the section obligates private accounting authorities certified by the Federal Communications Commission to deal with the public on a nondiscriminatory basis. We do not believe that this amendment changes the substance of the rule that the Commission adopted in 1996, which implicitly required such nondiscriminatory treatment, but believe that it is desirable to make private accounting authorities' obligations as clear as possible.  X>43.` ` The Report and Order also adopts the proposal in the NPRM to continue the exemption for one entity that had previously been certified as a private accounting authority on an interim basis that allows it to provide accountsettlement services only for its own vessels. This entity had obtained interim certification before the Commission imposed an obligation for private accounting authorities to provide service to all customers requesting it, and the Commission believes that it would work an undue hardship to require it to change the scope of its operations. We believe that the public has adequate opportunity to obtain service from other private accounting authorities the Commission has certified and that there is no reason at this time to require this entity to serve all comers. "qj 50*%%33"Ԍ X44.` ` Finally, this Report an Order adopts the proposal in the NPRM that the Commission will cease to act as an accounting authority, leaving the settlement of maritime and satellite accounts to the private accounting authorities the Commission has certified. We believe that withdrawal of the Commission as an accounting authority will strengthen the system of private accounting authorities the Commission has created over the years and allow such private authorities to become more competitive. We do not see a need for a governmental body to perform accountsettlement functions, because these functions have been performed without difficulty by a variety of private authorities, operating under FCC rules for many years. The Commission has concluded that there is no reason for the FCC to continue to settle the accounts for other U.S. government agencies. We find that the agencies have not argued that they have any special needs with respect to the settlement of their radio accounts that cannot be met by private accounting authorities. The Commission did, however, note that the agencies have relied upon the Commission to settle their accounts and conclude that the immediate withdrawal of the Commission as an accounting authority could cause some temporary disruption or curtailment of service to government users. The Commission, therefore, concluded to delay its departure and to institute a transition period. The Commission believes that such transition period will give that agencies time to make all preparations, including any budgetary adjustments, for shift to a private accounting authority.  Xd4The nature of the transition period will be addressed by the Further Notice of Proposed  XO4Rulemaking.  X#' B. Summary of Significant Issues Raised by Public Comments in Response to the  X 'IRFA  X45.` ` There were no comments submitted in response to the IRFA. Because the proposed amendment of Section 3.10 made no substantive change to the current obligation of private accounting authorities, the adoption of the proposed amendment will have no significant impact upon any small business entities. Similarly, the proposal to continue to exempt one entity from the obligation to provide service to all users on a nondiscriminatory basis does not make a change from the present situation, adoption of the proposal will not have a significant impact upon a small business. The entity that was exempted is not itself a small business. Because there are many other private accounting authorities who are obligated to serve users on a nondiscriminatory basis, allowing the one entity to provide services only to its own vessels will not adversely affect an small businesses that are customers of private accounting authorities. Finally, the decision for the FCC to withdraw as an accounting authority should not have any significant impact upon small business entities. Even without the FCC to settle accounts for users, there will be a sizeable number of private accounting authorities to take over FCC functions. ""50*%%33 "Ԍ X' C.Description and Estimate of the Number of Small Entities to Which Rules Will  X'Apply  X46.` ` The Commission has not developed a definition of small entities applicable to licensees in the international services. Therefore, the applicable definition of small entity is generally the definition under the SBA rules applicable to Communications Services, Not Elsewhere Classified (NEC). This definition provides that a small entity is expressed as one  X_4with $11.0 million or less in annual receipts.6_? yO'#]\  PCo^P#э 13 C.F.R.  120.121, SIC code 4899.   X147.` ` According to the Census Bureau, there were a total of 848 communications services providers, NEC, in operation in 1992, and a total of 775 had annual receipts of less  X 4than $9.999 million..7 X? {O '#]\  PCo^P#э1992 Economic Census Industry and Enterprise Receipts Size Report, Table 2D, SIC code 4899 (U.S. Bureau of the Census data under contract to the Office of Advocacy of the U.S. Small Business Administration). . The Census report does not provide more precise data. The rules proposed in this Notice of Proposed Rulemaking, however, apply only to entities providing accountsettlement services for maritime mobile and maritime mobilesatellite radio services. As noted, there are currently only 17 such entities. Small businesses may be able to become accounting clearinghouses, as the establishment of such a function does not appear to involve high implementation costs.  Xb' D.Description of Projected Recordkeeping and other Compliance Requirements  X448.` ` The rule amendment adopted in this Report and Order 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 in the maritime mobile, maritime mobilesatellite, aeronautical and other satellitebased radio services. The decision to continue the exemption of one currently certified accounting authority from the requirement to serve the public on a nondiscriminatory basis affects only that entity. Further, because it continues the current exemption, it will not alter that entity's recordkeeping or compliance activities. The decision of the Commission to withdraw as an accounting authority will affect both those now certified as accounting authorities and those who may apply for certification in the future. The withdrawal of the Commission will result in the transfer of the accounts that the Commission now settles to the private accounting authorities. This should give each such accounting authority the opportunity to compete for increased business. The withdrawal of the Commission , however, should not increase the recordkeeping and compliance efforts of private accounting authorities. . "70*%%33"Ԍ X' D.Steps Taken to Minimize Significant Economic Impact on Small Entities, and  X'Significant Alternatives Considered  X49.` ` Because the rule amendment adopted in this  Report and Order did not alter the obligations of any present or future certified private accounting authority, there was no need to take any steps to minimize the impact of the rule. Similarly, the decision of the Commission to continue the exemption for one entity from the obligation to serve the public on a nondiscriminatory basis did not change that entity's current obligations, there was no need to take steps to minimize the impact of the exemption on small entities. The decision of the Commission to withdraw as an accounting authority will increase the potential business of currently certified accounting authorities. It also may make additional entities decide that they would like to seek certification as a private accounting authority. Commission withdrawal as an accounting authority will require those who currently rely upon the FCC to settle their maritime and satellite radio accounts will be required to select new accounting authority from among certified accounting authorities. It is conceivable that selection of such an accounting authority may be more difficult for some small entities than others. Because the Commission has delayed the effectiveness of its withdrawal as an accounting authority until the completion of a transition plan, small entities will not have to choose a new authority immediately. Small entities will be able to bring any special needs to the attention of the Commission during the preparation of the transition plan that will be undertaken  X44pursuant to the Further Notice of Proposed Rulemaking portion of this proceeding.  X4 Report to Congress : The Commission will send a copy of this Report and Order and  X4Further Notice of Proposed Rulemaking, including this FRFA, in a report to be sent to  X4Congress pursuant to the Small Business Regulatory Enforcement Fairness Act of 1996, see 5  X4U.S.C.  801(a)(1)(A). In addition, the Commission will send a copy of the Report and  X4Order and Further Notice of Proposed Rulemaking  , including this FRFA to the Chief Counsel  X4for Advocacy of the Small Business Administration. A copy of the Report and Order and  X4Further Notice of Proposed Rulemaking   and FRFA (or summaries thereof) will be Published  Xu4in the Federal Register. See 5 U.S.C.  604(b). "70*%%33"  X4| Appendix C ă  X' Government Agencies Who Use Commission as an Accounting Authority Department of Agriculture Department of Air Force Department of the Army Coast Guard Department of Commerce Defense Information Systems Agency Department of Energy Federal Aviation Administration Federal Emergency Management Agency Department of Health and Human Services Department of the Interior Department of Justice Department of the Navy Department of NavyCommand National Aeronautics and Space Administration National Science Foundation Office of Secretary of Defense OnSite Inspection Agency Department of State Department of Treasury United States Information Agency U.S. Postal Service Department of Veteran Affairs "70*%%33\"  X'e  Statement of Commissioner Harold W. FurchtgottRoth#XN\  P_XP# Đc  &E   X4X Re : 1998 Biennial Regulatory Review Review of Accounts Settlement in the Maritime Mobile and the Maritime MobileSatellite Radio Services (IB Docket No. 9896)(# I support today's decision announcing the Commission's withdrawal as an accounting authority for settling accounts for maritime mobile and maritimesatellite radio services. I write separately to note that this proceeding was initiated as part of the Commissions 1998 Biennial Review, which was conducted pursuant to Section 11(a) of the  X 4Communications Act, as amended, 47 U.S.C.  161(a). However, as thoroughly described in  X 4my Report on Implementation of Section 11 by the Federal Communications Commission (Dec. 21, 1998), which can be found on the FCC WWW site at , I believe that the 1998 Section 11(a) review was not as thorough as it should have been. I look forward to working with the chairman and other commissioners on the 2000 Biennial Review, planning for which should begin in mid1999.  X ' y* * * * * * *