Last month, the FCC issued its latest annual Notice of Proposed Rulemaking (NPRM) as well as a Further Notice of Proposed Rulemaking (FNPRM) containing regulatory fee proposals for Fiscal Year (FY) 2013. Those who wish to file comments on the FCC’s proposed fees must do so by June 19, 2013, with reply comments due by June 26, 2013. The NPRM proposes to collect just under $340 million in regulatory fees for FY 2013.
The FCC indicates that this year’s Congressional budget sequester reduced FCC salaries and expenditures by $17 million but that the sequester does not impact the collection of regulatory fees. According to the NPRM, this is because the sequester does not change the amount Congress required the FCC to collect in the FY 2012 appropriation (and continued in effect in FY 2013 by virtue of the Further Continuing Appropriations Act in 2013).
The NPRM seeks comments on adoption and implementation of proposals to reallocate the Agency’s regulatory fees based on the matters actually worked on by current FCC full time employees (FTEs) for FY 2013 to more accurately assess the costs of providing regulatory services to various industry sectors and to account for changes in the wireless and wireline industries in recent years. Understanding that a modification of its current fee allocation method based on FTE workload will result in significantly higher fees for some fee categories, the NPRM proposes to potentially cap rate increases at 7.5% for FY 2013.
The FCC’s NPRM also asks for comment on the following:
- Combining Interstate Telecommunications Service Providers (ITSPs) and wireless telecommunications services into one regulatory fee category and using revenues as the basis for calculating the resulting regulatory fees;
- Using revenues to calculate regulatory fees for other industries that now use subscribers as the basis for regulatory fee calculations, such as the cable industry;
- Consolidating UHF and VHF television stations into one regulatory fee category;
- Proposing a regulatory fee for Internet Protocol TV (IPTV) equivalent to cable regulatory fees;
- Alleviating large fluctuations in the fee rate for Multiyear Wireless Services; and
- Determining whether the Commission should modify its methodology for collecting regulatory fees from those in declining industries (e.g., CMRS Messaging).
In the FNPRM, the FCC seeks comment on the how to treat, for regulatory fee purposes, services such as non-U.S.-Licensed Space Stations, Direct Broadcast Satellites and broadband.
The FCC also notes that it is seeking to modernize its electronic filing and payment systems. As a result, beginning on October 1, 2013, the FCC will no longer accept paper and check filings for payment of Annual Regulatory Fees. What that means is that this year’s regulatory fee filing is likely the last time that regulatory fees can be paid without using electronic funds.
We will be publishing a full Advisory on the FY 2013 Regulatory Fees once they are adopted (likely this summer). You may also immediately access the FCC’s FY 2013 proposed fee tables attached to the NPRM, in order to estimate, at least approximately, the size payment the FCC will be expecting from you this fall.