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FCC-20-120A1.Pdf Federal Communications Commission FCC 20-120 Before the Federal Communications Commission Washington, D.C. 20554 In the Matter of ) ) Assessment and Collection of Regulatory Fees for ) MD Docket No. 20-105 Fiscal Year 2020 ) ) REPORT AND ORDER AND FURTHER NOTICE OF PROPOSED RULEMAKING Adopted: August 31, 2020 Released: August 31, 2020 Comment Date: [[30]] days after date of publication in the Federal Register Reply Comment Date: [[45]] days after date of publication in the Federal Register By the Commission: TABLE OF CONTENTS I. INTRODUCTION .................................................................................................................................. 1 II. BACKGROUND .................................................................................................................................... 2 III. REPORT AND ORDER ........................................................................................................................ 5 A. Allocating FTEs ............................................................................................................................... 6 B. Direct Broadcast Satellite Regulatory Fees ................................................................................... 12 C. Television Broadcaster Regulatory Fees........................................................................................ 18 D. Radio Broadcaster Regulatory Fees ............................................................................................... 24 E. Toll Free Numbering Regulatory Fees........................................................................................... 28 F. Market Access Space Station Regulatory Fees .............................................................................. 30 G. Non-Geostationary Orbit Space Station Regulatory Fees .............................................................. 48 H. International Bearer Circuit Regulatory Fees ................................................................................ 53 1. Using Capacity to Assess IBC Regulatory Fees ...................................................................... 56 2. Division of IBC Regulatory Fees ............................................................................................ 61 3. IBC Regulatory Fee Tiers ........................................................................................................ 64 4. Submarine Cable IBC Regulatory Fees ................................................................................... 68 I. Flexibility for Regulatory Payors Given the COVID-19 Pandemic .............................................. 76 IV. FURTHER NOTICE OF PROPOSED RULEMAKING ..................................................................... 88 V. PROCEDURAL MATTERS ................................................................................................................ 94 VI. ORDERING CLAUSES ..................................................................................................................... 113 APPENDIX A—LIST OF COMMENTERS APPENDIX B—CALCULATION OF FY 2020 REVENUE REQUIREMENTS AND PRO-RATA FEES APPENDIX C—FY 2020 REGULATORY FEES APPENDIX D—SOURCES OF PAYMENT UNIT ESTIMATES FOR FY 2020 APPENDIX E—FACTORS, MEASUREMENTS, AND CALCULATIONS THAT DETERMINE SIGNAL CONTOURS AND ASSOCIATED POPULATION COVERAGES APPENDIX F—SATELLITE CHARTS APPENDIX G—FY 2020 FULL-SERVICE BROADCAST TELEVISION STATIONS, BY CALL SIGN APPENDIX H—FY 2019 REGULATORY FEES APPENDIX I—FINAL REGULATORY FLEXIBILITY ANALYSIS APPENDIX J—INITIAL REGULATORY FLEXIBILITY ANALYSIS APPENDIX K—RULE CHANGES Federal Communications Commission FCC 20-120 I. INTRODUCTION 1. Each year, the Commission must adopt a new schedule of regulatory fees for regulatory payors, i.e., those entities required to fund the Commission’s activities. In this Report and Order, we adopt a schedule to collect the $339,000,000 in congressionally required regulatory fees for fiscal year (FY) 2020.1 The regulatory fees for all payors are due in September 2020. In the attached Further Notice of Proposed Rulemaking, we seek comment on regulatory fee subcategories for FY 2021, for nongeostationary orbit (NGSO) satellites, as proposed by several commenters. II. BACKGROUND 2. The Commission is required by Congress to assess regulatory fees each year in an amount that can reasonably be expected to equal the amount of its appropriation.2 Regulatory fees recover direct costs, such as salary and expenses; indirect costs, such as overhead functions; and support costs, such as rent, utilities, and equipment.3 Regulatory fees also cover the costs incurred in regulating entities that are statutorily exempt from paying regulatory fees (i.e., governmental and nonprofit entities, amateur radio operators, and noncommercial radio and television stations),4 de minimis entities,5 and entities whose regulatory fees are waived.6 3. The Commission’s methodology for assessing regulatory fees must “reflect the full-time equivalent number of employees within the bureaus and offices of the Commission, adjusted to take into account factors that are reasonably related to the benefits provided to the payor of the fee by the Commission’s activities.”7 Since 2012, the Commission has assessed the allocation of full-time equivalents (FTEs)8 by first determining the number of FTEs in each core bureau that carries out licensing activities (i.e., the Wireless Telecommunications Bureau, Media Bureau, Wireline Competition Bureau, and International Bureau) and then attributing all other FTEs to payor categories based on these core FTE allocations.9 4. Since 2013, the Commission has adopted numerous reforms to the regulatory fee schedule.10 Earlier this year, in the 2020 Regulatory Fee Reform Order, we adopted several reforms regarding non-U.S. licensed space stations with U.S. market access grants, the apportionment of FTEs 1 Consolidated Appropriations Act, 2020, Pub. L. No. 116-93 (appropriating $339,000,000 to the Commission for salaries and expenses and directing the Commission to assess and collect the same amount in offsetting collections) (FY 2020 Appropriation). 2 47 U.S.C. § 159(a), (b); FY 2020 Appropriation. 3 Assessment and Collection of Regulatory Fees for Fiscal Year 2004, Report and Order, 19 FCC Rcd 11662, 11666, para. 11 (2004) (FY 2004 Report and Order). 4 47 U.S.C. § 159(e)(1). 5 47 U.S.C. § 159(e)(2). 6 47 CFR § 1.1166. 7 47 U.S.C. § 159(d). 8 One FTE, a “Full Time Equivalent” or “Full Time Employee,” is a unit of measure equal to the work performed annually by a full time person (working a 40-hour workweek for a full year) assigned to the particular job, and subject to agency personnel staffing limitations established by the U.S. Office of Management and Budget. 9 Procedures for Assessment and Collection of Regulatory Fees, Notice of Proposed Rulemaking, 27 FCC Rcd 8458, 8460, para. 5 & n.5 (2012) (FY 2012 NPRM). 10 For a summary of the regulatory fee reforms, see Assessment and Collection of Regulatory Fees for Fiscal Year 2019, Report and Order and Further Notice of Proposed Rulemaking, 34 FCC Rcd 8189, 8191, para. 4 (2019) (FY 2019 Report and Order). (continued….) 2 Federal Communications Commission FCC 20-120 within the International Bureau for international bearer circuits and satellite issues, the apportionment of FTEs within the Satellite Division of the International Bureau for geostationary orbit (GSO) and NGSO space station regulatory fee, and we adopted a limitation on population counts for certain VHF television broadcast stations.11 In the accompanying FY 2020 NPRM, we sought comment on a proposed fee schedule and also on certain issues for International Bureau and Media Bureau regulatees.12 Specifically, we sought comment on a schedule of proposed regulatory fees as well as certain issues: adjusting the allocation of international bearer circuit (IBC) fees between submarine cable and terrestrial and satellite IBCs from 87.6%-12.4% to 95%-5%; combining the submarine cable regulatory fee tiers with new tiers for terrestrial and satellite IBCs in a unified tier structure; basing full-power broadcast television fees on the population covered by the station’s contour; and continuing to increase the direct broadcast satellite (DBS) regulatory fees by 12 cents, to 72 cents, per subscriber, per year.13 In addition, we sought comment on economic effects due to the COVID-19 pandemic on regulatory fee payors.14 III. REPORT AND ORDER 5. Pursuant to section 9 of the Communications Act of 1934, as amended (Communications Act or Act), in this Report and Order we adopt the regulatory fee schedule proposed in the FY 2020 NPRM for FY 2020, as modified herein, to collect $339,000,000 in regulatory fees as required by Congress.15 A. Allocating FTEs 6. In the FY 2020 NPRM, the Commission proposed that non-auctions funded FTEs will be classified as direct only if in one of the four core bureaus, i.e., in the Wireline Competition Bureau, the Wireless Telecommunications Bureau, the Media Bureau, or the International Bureau.16 The indirect FTEs are from the following bureaus and offices: Enforcement Bureau, Consumer and Governmental Affairs Bureau, Public Safety and Homeland Security Bureau, Chairman and Commissioners’ offices, Office of the Managing Director, Office of General Counsel, Office of the Inspector General, Office of Communications Business Opportunities, Office of Engineering and Technology, Office of Legislative Affairs, Office of Workplace Diversity, Office of Media Relations, Office of Economics
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