Office of the General Counsel
B-272533.1
July 24, 1996
The Honorable Larry Pressler Chairman The Honorable Ernest F.
Hollings Ranking Minority Member Committee on Commerce, Science,
and Transportation United States Senate
The Honorable Thomas J. Bliley, Jr. Chairman The Honorable John
D. Dingell Ranking Minority Member Committee on Commerce House of
Representatives
Subject: Federal Communications Commission: Assessment and
Collection of Regulatory Fees for Fiscal Year 1996
Pursuant to section 801(a)(2)(A) of title 5, United States Code,
this is our report on a major rule promulgated by the Federal
Communications Commission, entitled "Assessment and Collection of
Regulatory Fees for Fiscal Year 1996" (MD Docket No. 96-84, FCC
96-295). We received the rule on July 10, 1996. It was published in
the Federal Register as a final rule on July 12, 1996. 61 Fed. Reg.
36629.
The Commission's Report and Order adopts rule changes to revise
its Schedule of Regulatory Fees in order to recover the costs
specified by Congress for its enforcement, policy and rulemaking,
international activities, and user information services. 47 U.S.C.
§ 159(a).
Section 9 of the Communications Act of 1934, as amended,
provides for the annual assessment and collection of regulatory
fees. 47 U.S.C. § 159(b)(2). For fiscal year 1996, Congress
determined that the Commission should recover $126,400,000 in
costs, an amount 8.6 percent higher than required in fiscal year
1995.
GAO/OGC-96-28
Pub. L. 104-134. Therefore, the Commission had to revise its fee
schedule in order to meet the increased revenue requirements.
In addition to adjusting the fee schedule to ensure collection
of the $126,400,000, the Report and Order also adjusts the fee
schedule and associated payment procedures for certain fees
mandated by Congress, makes changes to the estimated number of
units subject to a fee, and incorporates certain public interest
considerations. See 47 U.S.C. § 159(b).
Finally, the Report and Order amends the schedule to increase
the number of regulatees subject to a fee, to simplify the
schedule, and to clarify and revise certain payment procedures as
provided for in section 9(b)(3) of the Communications Act of 1934,
as amended. 47 U.S.C. § 159(b)(3).
Enclosed is our assessment of the Federal Communications
Commission's compliance with the procedural steps required by
sections 801(a)(1)(B)(i) through
(iv) of title 5 with respect to the rule. Our review indicates
that the Federal Communications Commission complied with the
applicable requirements.
If you have any questions about this report, please contact
Kathleen E. Wannisky, Associate General Counsel for Operations, at
(202) 512-5207. The official responsible for GAO evaluation work
relating to the Federal Communications Commission is John H.
Anderson, Director of Transportation and Telecommunications Issues.
Mr. Anderson can be reached at (202) 512-2834.
Robert P. Murphy General Counsel
Enclosure
cc: Mr. Andrew S. Fishel Managing Director Federal
Communications Commission
Page 2 GAO/OGC-96-28
ENCLOSURE
ANALYSIS UNDER 5 U.S.C. § 801(a)(1)(B)(i)-(iv) OF A MAJOR RULE
ISSUED BY THE FEDERAL COMMUNICATIONS COMMISSION ENTITLED
"ASSESSMENT AND COLLECTION OF REGULATORY FEES FOR FISCAL YEAR 1996"
(MD Docket No. 96-84, FCC 96-295)
(i)
Cost-benefit analysis
The Commission stated in its submission to us that it was not
required to prepare and did not prepare a cost-benefit
analysis.
(ii)
Agency actions relevant to the Regulatory Flexibility
Act, 5 U.S.C. §§ 603-605, 607 and 609
Section 603: Initial Regulatory Flexibility Analysis
The proposed rulemaking, 61 Fed. Reg. 16432 (April 15, 1996),
incorporated an initial regulatory flexibility analysis of the
expected impact on small businesses. The Commission sought written
public comments on the proposed rulemaking, including comments on
the initial regulatory flexibility analysis.
The analysis included in the proposed rulemaking provides the
information required by paragraphs 603(b)(1) and (2). It describes
the reasons for the proposed agency action and its objectives and
legal basis. The information required by paragraphs 603(b)(3) and
(4) concerning an estimate of the classes of small entities subject
to the Report and Order and the projected reporting, record-keeping
and other compliance requirements of the proposed rule is also
included. In accordance with section 603(b)(5), the Commission
notes that the proposed Report and Order does not duplicate,
overlap, or conflict with any other relevant federal rule.
Finally, the Commission solicited comments on the alternative
methods of assessing the regulatory fees discussed in the proposed
rule in compliance with section 603(c).
Section 604: Final Regulatory Flexibility Analysis
Appendix A to the Report and Order includes the full text of the
Commission's final regulatory flexibility analysis. 61 Fed. Reg.
36642. The Commission satisfies the requirements of section 604(a).
It describes the need for and objective of the Report and Order. It
also reports that no comments were submitted in response to
GAO/OGC-96-28
the initial regulatory flexibility analysis. The analysis
describes the small entities affected by the rulemaking and
estimates that approximately 20,000 small entities will be
affected. The analysis further describes the projected reporting,
recordkeeping and other compliance requirements and describes how
the Commission further amended its procedures to minimize the
effect on small entities, even though no comments were submitted on
this matter.
Agency officials stated that copies of both the initial and the
final analysis were submitted to the Chief Counsel for Advocacy at
the Small Business Administration as required by section
605(b).
(iii) Agency actions relevant to sections 202-205 of the
Unfunded Mandates Reform Act of 1995, 2 U.S.C. §§ 1532-1535
As an independent regulatory agency, the Commission is not
subject to Title II of the Unfunded Mandates Reform Act of
1995.
(iv) Other relevant information or requirements under Acts and
Executive orders
Administrative Procedure Act, 5 U.S.C. §§ 551 et seq.
The Commission promulgated the rule under the notice and comment
procedures of 5 U.S.C. § 553. A notice of proposed rulemaking was
published on April 15, 1996. 61 Fed. Reg. 16432. The Commission
received comments on the rule from 12 commenters, including
licensees, trade associations, and a law firm.
The Commission indicates that it gave full consideration to the
comments filed by all interested parties and, in certain instances,
decided to adjust the Schedule of Regulatory Fees because of these
comments. A detailed discussion of the comments and the
Commission's consideration appears at 61 Fed. Reg. 36632-36638.
Paperwork Reduction Act, 44 U.S.C. §§ 3501-3520
This Final Report and Order is subject to the Act since the
Commission requires licensees to complete and file a form FCC 159
with the payment of their annual fee. The Commission has received
Office of Management and Budget clearance for this information
collection requirement (OMB # 3060-0589, expires 2/28/97).
Statutory authorization for the rule
Authorization for this rulemaking is contained in sections 4(i)
and (j), 9, and 303(r) of the Communications Act of 1934, as
amended, 47 U.S.C. § § 154(i) and (j) and 159 and 303(r). In
addition, Congress specifically mandated that the Commission
collect $126,400,000 in regulatory fees for FY96 to recover the
costs of enforcement,
Page 2 GAO/OGC-96-28
policy, rulemaking, international and user information
activities. Pub. L. No. 104134, 110 Stat. 56 (1996).
The Commission did not identify any other statutes or executive
orders imposing requirements relevant to the Report and Order.
Page 3 GAO/OGC-96-28
