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accounting authorities were Mackay Communications, Inc.; RadioHolland  xJCommunications, Inc.; SAIT Communications, Inc.; Mobile Marine Radio, Inc.; Exxon Communications Company;  yO -Raytheon Service Company; and Global Communications, Inc.#x6X@`7X@#Ѯ to operate as U.S. accounting authorities, subject to the oversight of the Commission. The Commission assigned each of them a U.S. AAIC, a process it called "interim certification." Additionally, the Commission certified seven foreignowned entities, each of which had been certified by its home government as an accounting authority in that  S-country,  Є yO-  ԍ#X\  P6G;ɒP#xThe interim foreign accounting authorities were Kelvin Hughes (United Kingdom); Peninsular Electronics,  xLtd. (U.K.); STC International Marine, Ltd. (U.K.); The Marconi International Marine Co., Ltd. (U.K.); E.B.  xYCommunications (Great Britain) Ltd. (U.K.); International Radio Traffic Services, Ltd. (Ireland); and ANDgat, Ltd. (Gibraltar). to settle accounts for U.S.flag vessels. The Commission did not assign such foreign authorities U.S. AAICs.  Si-x 10.` ` The 1996 Report and Order provided an application and approval process to guarantee continued performance by the preexisting accounting authorities operating under interim certification, and it sought to encourage new entities to become certified to settle charges as certified accounting  S-authorities. Following the release of the 1996 Report and Order, the Commission received applications in compliance with the new rules from five of the seven private entities that had held  Sl -interim certifications as U.S. accounting authoritiesl Є yO-  =ԍ#X\  P6G;ɒP#xThose filing applications were Mackay Communications, Inc.; RadioHolland Communications, Inc.; Mobile  xMarine Radio, Inc.; Exxon Communications Company; and Raytheon Service Company. A sixth interim accounting  x;authority, SAIT Communications, Inc., did not seek permanent certification because it has been merged into Radio yO<- xHolland and surrendered its AAIC. The seventh interim U.S. accounting authority was Global Communications  {O-Corporation, which, as indicated in note 16, supra., did not file an application for permanent certification. and six foreignowned entities.Gl Є yO-  ԍxThose filing applications were Kelvin Hughes (UK); Peninsular Electronics Ltd. (UK); The Marconi  xInternational Marine Co., Ltd. (UK); International Radio Traffic Services, Ltd. (Ireland); ANDgat, Ltd. (Gibraltar);  xYand NERA, Ltd. (UK). NERA, Ltd., is a company formed from the merger of E.B. Communications (Great Britain)  x<Ltd. and STC International Marine, Ltd., STC surrendered its AAIC of GB07 and the merged company uses E.B. Communications' code of GB11. G In 1997 the Commission, under the new certification rules, made permanent the interim certification of those five  S -U.S. and three of the foreignowned applicants.X :Є yO%-  ԍ#X\  P6G;ɒP#xBy Public Notice (Mimeo 73256), dated April 3, 1997, the Commission announced the following eight  x<permanent certifications: Mackay Communications, Inc., RadioHolland Communications, Inc., Mobile Marine  xRadio, Inc., Exxon Communications Company, Raytheon Service Company, Kelvin Hughes, The Marconi"p',l(l('"  xInternational Marine, Ltd., and Peninsular Electronics, Ltd. The applications of ANDgat International, Ltd.,  xInternational Radio Traffic Services, Ltd., and NERA, Ltd., are still pending. Because these interim authorities'  x,applications were timely filed, they can continue to operate under their interim certifications until the Commission  xacts on their applications. The Commission's rules for certifying accounting authorities do not state a term for a  xpermanent certification. Rather, certifications continue indefinitely, unless surrendered by an accounting authority  {Ox-or terminated by the FCC. See 47 C.F.R.  3.13.76. After the release of the 1996 Report and Order the" B,l(l(,,\ " Commission also received applications from six additional entities seeking Commission certification as U.S. accounting authorities and from one additional foreignowned accounting authority seeking to  S-settle traffic for U.S. vessels. BЄ yO| -  LԍxThe applications for certification as U.S. accounting authorities were filed by AquaCom, Inc.; Cruise Phone,  x<Inc.; KFS World Communications, Inc. (d/b/a Globe Wireless); Seven Seas Communications, Inc.; Stratos Mobile  xNetworks; and 7 Cs, Ltd. The foreignowned applicant was Morsviazsputnik, an entity certified by Russia and holding the Russian AAIC SU04.  The Commission granted three of the applications from U.S.based  Sg-entities,Xg* Є yO1-  kԍ#X\  P6G;ɒP#xBy Public Notice (Mimeo 76274), dated August 29, 1997, the Commission granted certification to Seven  xYSeas Communications, Inc., and KFS World Communications, Inc. (d/b/a Globe Wireless). By Public Notice (Mimeo DA2107), dated September 30, 1997, the Commission granted certification to 7 Cs Ltd.  denied certification to two U.S. applicants, gJ Є yOQ-  ԍxBy letter dated July 10, 1997, the Commission denied the application of AquaCom, Inc. and by letter dated  xJuly 18, 1997, the application of CruisePhone, Inc. These applications were denied because they failed to provide  xthe evidence of financial ability to act as an accounting authority required by Section 3.24 of the Commissions Rules, 47 C.F.R.  3.24.  and one U.S. application is still pending.[g2Є yO9-ԍxThat applicant is Stratos Mobile Networks.[ Finally, on September 22, 1997, the Commission granted the application from the Russian entity,  S-Morsviazsputnik.pЄ {Oc-ԍxSee Public Notice (DA 972107), dated September 30, 1997.p  S-x 11.` ` The rules the Commission adopted in the 1996 Report and Order clarified the standards of conduct required for U.S. settlement activity. The rules also provided a formal structure for certifying accounting authorities on a permanent basis and specified that only qualified applicants  S-would be certified to perform the accounting authority function. In addition, the 1996 Report and  S-Order sought to promote the improvement of operational procedures and reporting standards to assist the FCC in monitoring overall settlement functions to protect the U.S. public interest.  S9 -x 12.` ` The 1996 Report and Order included in the eligibility requirements for accounting authorities a requirement that all registered accounting authorities treat all U.S. licensed vessels in a  S -nondiscriminatory manner. TЄ yO"-  >ԍxT#X\  P6G;ɒP#his rule is embodied in Section 3.10(e) of our Rules, which requires that "[a]ll applicants must be willing  yO#-to offer their services to the public at a reasonable charge." #X\  P6G;ɒP# 47 C.F.R. 3.10(e).#x6X@`7X@#ъ We stated that the public interest is not served when an accounting  S -authority settles accounts for itself only. Є {O%-ԍ#X\  P6G;ɒP#xSee 11 FCC Rcd at 46945, para. 16. We did, however, waive the requirement to serve all comers for accounting authorities, whom we labeled "grandfathered," that wished to continue to settle accounts only for their own radioservice customers. In doing so, we stated that, in the event all 25";>,l(l(,," U.S. AAICs were issued, we reserved the right to require all accounting authorities to serve the public indiscriminately or to relinquish their certifications. We further provided, however, that any new  S-entities that may be certified would be required to serve the public generally.pЄ {O-ԍx#X\  P6G;ɒP#Id. at 4695.p At present the only entity that has taken advantage of our grandfathering option is EXXON Communications Company, which settles traffic only for vessels owned by EXXON. This leaves seven other U.S and four foreign entities to which the Commission has granted permanent accountingauthority certifications that are required to serve all comers. If the FCC eventually withdraws as a U.S. accounting authority, it will have certified 11 (seven U.S. and four foreign) private accounting authorities. Because ITUT Recommendation D.90 provides for the Commission to certify up to 25 accounting authorities, we  S5-would be able to certify 14 additional authorities.5ZЄ yO/ -  ԍxITUT Recommendation D.90,  1.4 (L7) provides that the number of accounting authorities "shall be  x-limited as far as possible and should not exceed 25." Because Recommendations are not legally binding, it would  xbe possible for the United States to name more than 25 accounting authorities if that became necessary. The binding  x-Radio Regulation under which Recommendation D.90 was promulgated provides only that number of authorities  xi"shall be limited as far as possible . . . ," without specifying a particular number. ITU Radio Regulations, Art. 66,  4 (5091).  S-T  S-III. DISCUSSION ĐTPx` `  Si -x 13.` ` Withdrawal by the Commission from Accounting Authority Function . In this  S6 -Notice the Commission proposes to withdraw from performing the functions of an accounting authority. Our proposal to withdraw from the clearinghouse functions includes all services for which the FCC now provides clearinghouse service. The certification of private accounting authorities and the prescription of rules to guide the conduct of such authorities, particularly the requirement to deal with the public nondiscriminatorily, will ensure that the settling of maritime radio accounts will occur in an orderly fashion and will remove any need for the Commission to continue to provide that  S-function. Because the mix of traffic for which the Commission provides clearinghouse service has shifted to include many services other than traditional maritime services, the Commission has extended its previously adopted rules to include settlements for satellitebased aeronautical and handheld terminals. Our rules on designating private accounting authorities now cover all mobile services. We anticipate that new services that may be introduced in the future will also rely upon the private accounting authorities that we have and will authorize, without requiring the Commission to reenter the field of providing clearinghouse functions. Privatization will promote competition in all communications markets, including the settlement of maritime radio accounts.  S:-x 14.` ` Our rules on accounting authorities will help ensure that the public interest is  S-protected. To further this goal, the Commission will continue to operate as the administrator of all U.S.certified accounting authorities. The basic rules and procedures for applications, services, and  S-procedures will continue to govern, as described in Part 3 of the Commission's RulesVЄ yO#-ԍx47 C.F.R., Part 3,  3.13.76.V and as  Sn-discussed in the 1996 Report and Order.m nb Є {Op%-ԍxSee 1996 Report and Order, 11 FCC Rcd at 46924.m We note, however, that other federal agencies have depended upon the FCC for settlements of their maritime radio and maritime satellite accounts. Such agencies may have special needs that cannot be met by relying upon a private accounting"  ,l(l(,," clearinghouse. Therefore, while we propose to withdraw from all clearinghouse activities, we specifically request governmental agencies to comment on this proposal and whether they have any special needs that would require us to continue to serve as a clearinghouse for government agencies. We propose to insure that the interests of all users who will rely upon private accounting authorities are protected by mandating compliance with the procedures detailed below.  S-x15.` ` In considering our proposal to withdraw as an accounting authority, we have reviewed our accounting authority rules and have concluded that they generally provide an adequate basis for certifying private accounting authorities and ensuring that such authorities serve the public in a fair and reasonable manner. The rules provide clear standards for whom may be certified as an accounting authority and the duties it must fulfill. As is clear from our 1996 Report and Order, Section 3.10(e) of our Rules, which requires that applicants for accounting authority certification must "be willing to  S -offer their services to the public at a reasonable charge,"! Є yO -ԍ#X\  P6G;ɒP#x47 C.F.R. 3.10(e).#x6X@`7X@#ѕ accounting authorities must serve the public on a reasonable and nondiscriminatory basis. We believe that our Report and Order shows a clear intent that private accounting authorities should conduct their accountssettlement business in a manner similar to that of a common carrier. That is, such authorities should provide service to anyone making a reasonable request for service, without undue or unjust discrimination, and should impose charges for their services that are reasonable and nondiscriminatory. However, to make these obligations more explicit, we propose to amend the first sentence of Section 3.10 to read as follows: x xPXxSection 3.10(e). Applicants must offer their services to any member of the public making a reasonable request therefor, without undue discrimination against any customer or class of customer, and charge reasonable and nondiscriminatory fees for service.  x The remainder of section 3 will remain the same. We believe that this change does not alter the substance of the obligation already created by Section 3.10(e) but only clarifies the intent of the existing rule. We seek comment on this proposal.  S9-x16.` ` Accounting Authority of Last Resort. Historically, the FCC has acted as the accounting authority of last resort; that is, foreign telecommunications operators have sent to the Commission all accounts where the customer has not designated a specific accounting authority. If the Commission withdraws from acting as an accounting authority, it will be necessary to provide an alternative mechanism. One alternative might be to designate one private accounting authority as the new authority of last resort. The Commission could do this by requesting accounting authorities wishing to serve this function to file applications for designation as the authority of last resort. The Commission could then select one of the applicants and notify the ITU of its selection. Implementation of this option might require the Commission to develop formal criteria on wehich to judge the ability of an applicant to serve as an accounting authority of last resort. Another alternative might be to require customers to presubscribe to an accounting authority or to designate an authority on every message. The Commission could do this by issuing a Public Notice to shipowners and users of other satellite terminals that they must enter into an agreement with a private accounting authority for settling their traffic and that they will not be able to use a foreign shore station or other radio service provider unless they have done so. Still another alternative might be to develop a formula for distributing messages without a designated authority among several private accounting authorities. Such a formula would presumably provide for a rotation among each U.S. accounting authority that elects to participate in such a formula. While a formula would make it easier for the customer, and"$X!,l(l(,,}(" would yield a fair distribution of messages among authorities, it would require an administrator and could increase the cost of the accountssettlement function. There may be other options that commenting parties might wish to suggest. We seek comment on this issue as well.  S4-x17.` ` Eligibility . The Commission does not propose in this rulemaking to alter the basic eligibility requirements issued with regard to new entries to the accounting authority function now contained in 47 C.F.R.  3.10(e), which requires that all applicants serve the public indiscriminately.  S-All pending and future applicants are subject to this requirement, and this  Notice of Proposed  Si-Rulemaking proposes no more than that the applicants declare these intentions formally within their  S7-applications as described in the application procedures. "7Є {O -ԍx#X\  P6G;ɒP#47 C.F.R. 3.20. See para. 19, infra. ē  S-x18.` ` "Grandfathered" Accounting Authorities. In our 1996 Report and Order, we made an exception to the requirement in Section 3.10(e) of our rules that private accounting authorities certified under our rules must deal with the public on a nondiscriminatory basis for those entities that already held interim certification as accounting authorities and argued that they are only able to provide settlement services for their own ships. We allowed these entities to seek "grandfathered" status under our rules to continue their prior pattern of activities. Only one entity, EXXON, availed itself of this option. We created this category because EXXON had served as an accounting authority only because it owns and operates the vessels for which it settles charges. EXXON argued that it does not seek or derive a profit from performing the functions of an accounting authority, and thus does not want to enter the business of providing accountsettlement services to nonaffiliated entities. Although we believe that the public interest is best served when service is widely available, we recognize that it could pose a hardship on some entities were we to impose such a requirement on them after they have already begun to act as an accounting authority on a limited basis. Furthermore, we believe that the other 16 private accounting authorities that we have currently certified under our rules, who are required to deal with all comers, will ensure the public of adequate accountssettlement services at reasonable charges. We, therefore, propose to maintain the status of this grandfathered entity and continue to exempt it from the requirement to deal with the public at large. As we also noted in our  So-1996 Report and Order, however, should all 25 of the AAICs available to the United States be assigned, we reserve the right to require a grandfathered entity to serve the public indiscriminately or  S -to surrender its AAIC for reassignment to one who will do so.# ZЄ yO-ԍ#X\  P6G;ɒP#x11 FCC Rcd at 4695, para. 16.#x6X@`7X@#ќ We propose to retain this reservation in the regulation of private accounting authorities established in this proceeding. We seek comment on this proposal.  S>-x19.` ` Pending applications. We seek to ensure that all vessels continue to be guaranteed nondiscriminatory access to accountsettlement services. Because our rules for certifying additional private entities require them to perform the function of accounting authority for any and all customers  S-seeking service, we believe that our rules, supplemented by the proposals of this Notice of Proposed  Ss-Rulemaking, will ensure that the privatization of the functions now performed by the Commission's ITS Section will continue to serve the public interest. However, because the applicants that have applications for accounting authority certification pending before us did not have knowledge of the changes we here propose, we believe the public interest would be served by giving them an opportunity to amend their applications to show how they propose to fulfill the nondiscrimination obligation and to allow members of the public to address these entities' ability to perform that function. We seek comment on this proposal."B# #,l(l(,,&"Ԍ S-ԙx20.` ` Application Procedures . The application referred to in the Maritime and Maritime Satellite Radio Services Regulations, FCC Form 44, "Application For Certification As An Accounting Authority," currently contains a general Qualifications section that does not specifically require the applicant to certify that it intends to conduct settlements on a nondiscriminatory basis. We propose to require all applicants with accountingauthority applications pending before the Commission to amend their Form 44 submissions specifically to affirm that they will serve all customers requesting their services on a nondiscriminatory basis. We propose to require that any such amendments be filed  S-within 60 days of the release of a Report and Order in this proceeding. This Notice also serves to  Si-notify persons who may in future file applications for certification as an accounting authority that they  S6-will be required to serve all customers on a nondiscriminatory basis. This Notice proposes merely to require applicants formally to affirm in their applications their willingness to abide by that requirement. The Commission proposes to process as a group all applications that meet the requirements of this rule that are received by the Commission within 60 days after the release of a  Sk -Report and Order in this proceeding. We seek comment on these proposals.  S - IV. PROCEDURAL MATTERS  S -T  P  S -x21.` ` Ex Parte . This is a nonrestricted (i.e., permitbutdisclose) noticeandcomment  Sn-rulemaking proceeding. Ex parte presentations are permitted, except during the Sunshine Agenda  S<-period, provided that they are disclosed as provided in the Commission's rules. See generally 47  S -C.F.R. 1.1202, 1.1203, 1.1206. Persons making oral ex parte presentations are reminded that memorandums summarizing the presentations must contain summaries of the substance of the presentations and not merely a listing of the subjects discussed. More than a one or two sentence  Sr-description of the views and arguments presented is generally required. See 47 C.F.R.  1.1206(b)(2),  S@-as revised. Other rules pertaining to oral and written presentations are set forth in Section 1.1206(b) as well.  S-x22.` ` Regulatory Flexibility Act. As required by the Regulatory Flexibility ActC$Є yO-ԍx5 U.S.C.  603.C, the Commission has prepared an Initial Regulatory Flexibility Analysis (IRFA) of the possible impact on  SA-small entities of the proposals contained in the Notice of Proposed Rulemaking. The IRFA is set forth in the attached Appendix B. Written public comments are requested on the IRFA. These comments must be filed in accordance with the same filing deadlines as comments on the rest of the Notice, but they must have a separate and distinct heading designating them as responses to the Initial Regulatory Flexibility Analysis. The Commission's Office of Public Affairs, Reference Operations  SC-Division, shall send a copy of this Notice of Proposed Rulemaking, including the Initial Regulatory Flexibility Analysis, to the Chief Counsel for Advocacy of the Small Business Administrations in accordance with the Regulatory Flexibility Act.  Sx-x23.` ` Initial Paperwork Reduction Act of 1995 Analysis . This Notice of Proposed  SF-Rulemaking contains a proposed information collection. As part of our continuing effort to reduce  S -paperwork burdens, we invite the general public and the Office of Management and Budget (OMB) to  S -comment on the information collections contained in this Notice of Proposed Rulemaking, as required by the Paperwork Reduction Act of 1995, Pub. L. No. 10413. Public and agency comments are due  S|"-30 days from the date of publication of this Notice of Proposed Rulemaking in the Federal Register. Comments should address: (a) whether the proposed collection of information is necessary for the proper performance of the functions of the Commission; (b) the accuracy of the Commission's burden estimates; (c) ways to enhance the quality, utility and clarity of the information collected; and (d) ways"$ X$,l(l(,,}(" to minimize the burden of the collection of information on the respondents, including the use of  S-automated collection techniques or other forms of information technology.  Sg-x24.` ` Notice and Comment Provision . Pursuant to Section 1.415 of the Commission's Rules, 47 C.F.R.  1.415 (1997), interested persons may become parties to this proceeding by filing  S-comments on these proposals on or before August 24 $oG]1 , 1998, and reply comments on or before  S-September 9, 1998. All relevant and timely comments will be considered by the Commission before final action is taken in this proceeding. In reaching its decision, the Commission may take into consideration information and ideas not contained in the comments, provided that such information or a writing indicating the nature and source of such information is placed in the public file, and provided that the Commission's reliance on such information is noted in the Report and Order.  S -x25.` ` Parties in this proceeding may file comments and replies on paper or electronically. Under Section 1.419 of the Commission's Rules, 47 C.F.R.  1.419, parties filing comments on paper must file an original and four copies of all comments, reply comments, and supporting documents. If parties want each Commissioner to receive a personal copy of their comments, they must file an original plus nine copies. Persons who wish to participate informally may submit two copies of their comments, stating thereon the docket number of this proceeding. Comments and reply comments should be sent to the Office of the Secretary, Federal Communications Commission, 1919 M St., N.W., Room 222, Washington, D.C. 20554. Additionally, parties must file a copy of their comments, replies and supporting documents with the Commission's copy contractor, International Transcription Service, Inc., 1231 20th St., N.W., Washington, D.C. 20037. Comments and reply comments will be available for public inspection during regular business hours in the FCC Reference Center (Room 239) at that address. For additional information about this proceeding, please contact John Copes at (202) 4181478.  S-  S-x26.x` ` Pursuant to Section 1.49(f) of the Commission's Rules, 47 C.F.R.  1.49(f),%Є yO:-  ԍxSee Electronic Filing of Documents in Rulemaking Proceedings, Appendix B, pp. 212, FCC 9856 (Report and Order released April 6, 1998) Parties may file their comments, replies and supporting documents in electronic form via the Internet. Such parties should use the Commission's Electronic Comment Filing System, which they can access using the following Internet address:  S- Xx` `  (# Further information on the process of submitting comments electronically is available at . 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.  S -Ԋx27.` ` 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 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" $ %,l(l(,,'" pleading (comment or reply) and the date of submission. The diskette should be accompanied by a cover letter setting forth the same information. Each diskette should contain only one party's pleading, preferably in a single electronnic file. The party should submit one copy of the diskette to John Copes, International Bureau, Telecommunications Division, 2000 M St., N.W., Room 844, Washington, D.C. 20054. The party should file an exact copy of the diskette, identically marked, with the Commission's copy contractor, International Transcription Service, Inc., at the address shown above in paragraph 25.  Sh-x28. ` ` Persons wishing to comment on the proposed and/or modified information collections should file written comments on or before August 24 $oGa1 , 1998. 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 the summary of this Notice of Proposed Rulemaking in the Federal Register. In addition to filing comments with the Secretary, they should also submit a copy of any comments on the information collections contained herein Judy Boley, Federal Communications Commission, Room 234, 1919 M Street, N.W., Washington, DC 20554, or via the Internet to jboley@fcc.gov.  S -  X -  #Xj\  P6G; ynXP# V. CONCLUSION T  XW-TPx29.` ` The Commission is proposing these rules to clarify the public service requirements for all those pending applicants and all future entities who may wish to serve as accounting authorities for the settlement of international radio maritime accounts involving U.S. registered vessels operating in foreign or international waters. By these rules, the Commission seeks to ensure that the public interest is adequately served as the Commission withdraws from its function as an accounting authority for nongovernmental users of maritime mobile and maritime mobilesatellite radio services. We seek comment on the proposed changes to the application procedure and any alternatives interested persons may wish to suggest. x  X- VI. ORDERING CLAUSES ĐTP  X-x30.` ` 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,  Xm-201205 and 303(r), that this Notice of Proposed Rulemaking is hereby adopted.  X)-x31.` ` IT IS FURTHER ORDERED that the Office of Public Affairs, Reference  X-Operations Division, SHALL SEND a copy of this Notice of Proposed Rulemaking, including the regulatory flexibility certification, to the Chief Counsel for Advocacy of the Small  X-Business Administration.  x` `  hh@FEDERAL COMMUNICATIONS COMMISSION x` `  hh@Magalie Roman Salas"& %,l(l(,,n("Ԍ X-x` `  hh@Secretary " %,l(l(,,"  X-  @A-@# Xj\  P6G; ynXP#) APPENDIX A  S-# &a\  P6G;u&P# Proposed 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:  S-1. xThe authority citation for Part 3 continues to read as follows: xAuthority: 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  S# -2.xThe Table of Contents for Part 3 is unchanged  S -3.xSection 3.10 is proposed to be 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 charge reasonable and nondiscriminatory fees for service. * * * * * "%,l(l(,,"  S-    @A-B-@#Xj\  P6G; ynXP# # &a\  P6G;u&P#,APPENDIX B ă  S-   S- Initial Regulatory Flexibility Analysis ă x  S4-xAs required by the Regulatory Flexibility Act (RFA),&Z4Є {O-  #]\  PCɒP#эxSee 5 U.S.C.  603. The RFA, see 5 U.S.C.  603 et seq., has been amended by the Contract With America  xAdvancement Act of 1996, Pub. L. No. 104121, 110 Stat. 847 (1996) (CWAAA). Title II of the CWAAA is the  yO.-Small Business Regulatory Enforcement Fairness Act of 1996 (SBREFA).#x6X@KX@# the Commission has prepared this Initial Regulatory Flexibility Analysis (IRFA) of the possible significant economic impact on small  S-entities by the policies and rules proposed in this Notice of Proposed Rulemaking. Written public comments are requested on this IRFA. Comments must be identified as responses to the IRFA and  Si-must be filed by the deadlines for comments on the Notice of Proposed Rulemaking provided above in  S7-para. 24. The Commission will send a copy of the Notice of Proposed Rulemaking, including this  S-IRFA, to the Chief Counsel for Advocacy of the Small Business Administration. See 5 U.S.C.   S-603(a). In addition, the Notice of Proposed Rulemaking and IRFA (or summaries thereof) will be  S -published in the Federal Register. See id.  S; -x 1. Need for and Objectives of the Proposed Rule: The objective of this proceeding is to strengthen and improve the competitiveness of private accounting authorities. The proposals also seek to ensure that greater reliance upon private accounting authorities continues to serve the public interest by ensuring that, with the exception of one grandfathered entity, all private accounting authorities abide by their duty to serve the public indiscriminately and that all charges for their services are reasonable.  S-xThis Notice of Proposed Rulemaking (NPRM) proposes to amend Section 3.10 of the Commission's Rules, 47 C.F.R. 3.10 (1997), to clarify that it obligates private accounting authorities certified by the Federal Communications Commission to deal with the public on a nondiscriminatory  S>-basis. We do not believe that this changes the substance of the rule the Commission adopted in 1996, but believe that it is desirable to make private accounting authorities' obligations as clear as possible.  S-xThis Notice of Proposed Rulemaking also proposes to continue an exemption for one entity that had previously been certified as an accounting authority on an interim basis, allowing it to continue to provide accountsettlement services only for its own vessels. This entity had obtained interim certification before the Commission imposed an obligation for accounting authorities to provide service to all customers requesting it, and the Commission believes it would work an undue hardship to require it to change its method of operation. We believe that the public has adequate opportunity to obtain service from the other private accounting authorities the Commission has certified, and therefore there is no reason at this time to require this entity to serve all comers.  S-xFinally, the Notice of Proposed Rulemaking proposes that the Commission will cease to act as an accounting authority, leaving the settlement of maritime and satellite accounts solely to the private accounting authorities it has authorized. We believe that such action will strengthen the system of private accounting authorities the Commission has created over the years and allow such authorities to become more competitive. We do not see a need for a governmental body to perform the 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 noted, however, that other U.S. government agencies rely upon the Commission to settle their accounts. Even with respect to these governmental entities, we are not certain there is a need for the Commission to"D#&,l(l(,,&" provide their account settlements. We have, therefore, asked the government agencies to comment whether they have special needs that can only be met by use of a governmental accounting authority. xGiven that the only change from existing practice that is proposed here is the withdrawal of the Commission as an accounting authority. we also seek comment whether it is appropriate for us to issue a Regulatory Flexibility Certification that our proposals pose no significant possible effect on small businesses.  Sh-x 2. Legal Basis: This Notice of Proposed Rulemaking is adopted pursuant to Sections 1, 4(i), 4(j), 11, 201205, 303(r) of the Communications Act of 1934, as amended, 47 U.S.C. 151, 154(i), 161, 201205, and 303(r). .  S -x 3. Description and Estimate of Small Entities Subject to the Rules: The Commission has not developed a definition of small entities applicable to licensees in the international  S6 -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  S -provides that a small entity is expressed as one with $11.0 million or less in annual receipts.u' Є yO8-#]\  PCɒP#э 13 CFR  120.121, SIC code 4899. u x xAccording to the Census Bureau, there were a total of 848 communications services providers,  S7-NEC, in operation in 1992, and a total of 775 had annual receipts of less than $9.999 million.:(7XЄ {O/-  =#]\  PCɒP#эx1992 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.  S-x 4. Reporting, Recordkeeping, and Other Compliance Requirements: The proposed action  S-in this 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 mobilesatellite, aeronautical and other satellitebased radio services. The amended rule, however, merely clarifies an existing requirement imposed on accounting authorities. It, therefore, does not alter the reporting,  S-recordkeeping or other compliance requirements of certified accounting authorities.  Sn-x 5. Steps Taken to Minimize Significant Economic Impact on Small Entities and  S;-Significant Alternatives Considered: As noted above, we here attempt to strengthen and improve the competitiveness of private accounting authorities. We seek to do this by removing the government from the performance of accountssettlement functions, leaving that function to private accounting authorities. 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.  S<-x  S -x 6. Federal Rules that Overlap, Duplicate or Conflict with These Proposed Requirements:  S -None.  S!- "p"(,l(l(,,%"Ԍ Y-     #Xj\  P6G; ynXP# # Xw PE37|XP# $oG=   $oG=   X- Separate Statement of Commissioner Harold W. FurchtgottRoth ă  X- M In re: Notice of Proposed Rulemaking ă  XQ- +m1998 Biennial Regulatory Review, Review of Accounts Settlement in & Maritime Mobile and Maritime Mobile Satellite Services mIB Docket No. 9896  Y-T PT PxI support adoption of this Notice of Proposed Rulemaking  . In my view, any reduction of unnecessary regulatory burdens is beneficial. To that extent, this item is good and I am all for it. This item should not, however, be mistaken for complete compliance with Section 11 of the Communications Act. x  Y -xAs I have explained previously, the FCC is not planning to "review all regulations issued under this Act . . . that apply to the operations or activities of any provider of telecommunications service," as required under Subsection 11(a) in 1998 (emphasis added).  X-See generally 1998 Biennial Regulatory Review Review of Computer III  and ONA  Yk-Safeguards and Requirements  , 13 FCC Rcd 6040 (released Jan. 30, 1998).  Nor has the Commission issued general principles to guide our public interest analysis and decisionmaking process across the wide range of FCC regulations. xIn one important respect, however, the FCC's current efforts are more ambitious and difficult than I believe are required by the Communications Act. Subsection 11(a)  Y-captioned "Biennial Review" requires only that the Commission "determine whether any such regulation is no longer necessary in the public interest." (emphasis added). It is pursuant to Subsection 11(b) entitled "Effect of Determination" that regulations determined to be no longer in the public interest must be repealed or modified. Thus, the repeal or modification of our rules, which requires notice and comment rulemaking proceedings, need not necessarily be accomplished during the year of the biennial review. Yet the Commission plans to complete roughly thirty such proceedings this year. xI encourage parties to participate in these thirty rulemaking proceedings. I also suggest that parties submit to the Commission either informally or as a formal filing specific suggestions of rules we might determine this year to be no longer necessary in the public interest as well as ideas for a thorough review of all our rules pursuant to Subsection 11(a).  Y!-/* * * * * * *#Xj\  P6G; ynXP#