Implementation of the Commercial Spectrum Enhancement Act and Modernization of the Commission's Competitive Bidding Rules and Procedures, 16470-16471 [2012-6946]

Download as PDF 16470 Federal Register / Vol. 77, No. 55 / Wednesday, March 21, 2012 / Rules and Regulations if both of the following conditions are met: (1) The current MLR reporting year and each of the two previous MLR reporting years included experience of at least 1,000 life-years; and (2) Without applying any credibility adjustment, the issuer’s MLR for the current MLR reporting year and each of the two previous MLR reporting years were below the applicable MLR standard for each year as established under § 158.210 in this subpart. Dated: October 11, 2011. Donald M. Berwick, Administrator, Centers for Medicare & Medicaid Services. Approved: November 3, 2011. Kathleen Sebelius, Secretary. [FR Doc. 2012–6359 Filed 3–16–12; 4:15 pm] BILLING CODE 4120–01–P FEDERAL COMMUNICATIONS COMMISSION 47 CFR Part 1 [WT Docket No. 05–211; FCC 12–12] Implementation of the Commercial Spectrum Enhancement Act and Modernization of the Commission’s Competitive Bidding Rules and Procedures Federal Communications Commission. ACTION: Final rule. AGENCY: The Federal Communications Commission removes two modifications to its competitive bidding rules pursuant to a mandate by the U.S. Court of Appeals for the Third Circuit. DATES: Effective March 21, 2012. FOR FURTHER INFORMATION CONTACT: Wireless Telecommunications Bureau, Auctions and Spectrum Access Division: Audrey Bashkin at (202) 418– 0660. SUPPLEMENTARY INFORMATION: This is a summary of an Order released on February 1, 2012. The complete text of the Order, including an attachment and related Commission documents, is available for public inspection and copying from 8 a.m. to 4:30 p.m. Eastern Time (ET) Monday through Thursday or from 8 a.m. to 11:30 a.m. ET on Fridays in the FCC Reference Information Center, 445 12th Street SW., Room CY– A257, Washington, DC 20554. The Order and related Commission documents also may be purchased from the Commission’s duplicating contractor, Best Copy and Printing, Inc. erowe on DSK2VPTVN1PROD with RULES SUMMARY: VerDate Mar<15>2010 14:17 Mar 20, 2012 Jkt 226001 (BCPI), 445 12th Street SW., Room CY– B402, Washington, DC 20554, telephone 202–488–5300, fax 202–488–5563, Web site https://www.BCPIWEB.com. When ordering documents from BCPI, please provide the appropriate FCC document number, for example, FCC 12–12. The Order and related documents also are available on the Internet at the Commission’s Web site: https:// wireless.fcc.gov/auctions, or by using the search function for WT Docket No. 05–211 on the Commission’s Electronic Comment Filing System (ECFS) Web page at https://www.fcc.gov/cgb/ecfs/. ministerial order issued at the direction of the United States Court of Appeals for the Third Circuit. I. Background 1. In Council Tree Communications, Inc. v. FCC, 619 F.3d 235 (3d Cir. 2010), cert. denied, 131 S. Ct. 1784 (2011), the U.S. Court of Appeals for the Third Circuit vacated two modifications the Federal Communications Commission (Commission) had made in 2006 to its competitive bidding rules for designated entities on the ground that the Commission had failed to provide the public an adequate opportunity for notice and comment. The Commission removes the two modifications in accordance with the Third Circuit’s mandate. 2. The Third Circuit held that the Commission’s impermissible material relationship rule in 47 CFR 1.2110(b)(3)(iv)(A) and its extension of the unjust enrichment period from five years to ten years in 47 CFR 1.2111(d)(2) had been adopted without the notice and opportunity for comment required by the Administrative Procedure Act. The Court thus vacated the impermissible material relationship rule and ordered reinstatement of the Commission’s previous five year unjust enrichment payment schedule. The Court also denied Council Tree’s petition for review with respect to the attributable-material-relationship rule articulated in 47 CFR 1.2110(b)(1) and (b)(3)(iv)(B). Federal Communications Commission. Bulah P. Wheeler, Deputy Manager. II. Discussion 3. The Order conforms Part 1 of the Commission’s rules to the Court’s mandate by amending 47 CFR 1.2110 to remove paragraph (b)(3)(iv)(A) and 47 CFR 1.2111 by removing paragraph (d)(2)(i) as no longer applicable and reinstating the previous version of the payment schedule in 47 CFR 1.2111(d)(2). The Order also conforms other Part 1 rules, as necessary, to remove several references to impermissible material relationships. 4. The Commission finds that notice and comment are unnecessary for these rule amendments under 5 U.S.C. Section 553(b), because this is a PO 00000 Frm 00046 Fmt 4700 Sfmt 4700 III. Congressional Review Act 5. The Commission will send a copy of the Order to Congress and the Government Accountability Office pursuant to the Congressional Review Act, see 5 U.S.C. 801(a)(1)(A). List of Subjects in 47 CFR Part 1 Administrative practice and procedures, Auctions, Licensing, Telecommunications. For the reasons discussed in the preamble, the Federal Communications Commission amends 47 CFR part 1 as follows: PART 1—PRACTICE AND PROCEDURE 1. The authority citation for part 1 continues to read as follows: ■ Authority: 15 U.S.C. 79 et seq.; 47 U.S.C. 151, 154(j), 160, 201, 225, 303, and 309. 2. Section 1.2110 is amended by removing paragraph (b)(3)(iv)(A) and redesignating paragraphs (b)(3)(iv)(B) and (C) as paragraphs (b)(3)(iv)(A) and (B) and by revising newly redesignated paragraph (b)(3)(iv)(B) and revising paragraph (j) to read as follows: ■ § 1.2110 Designated entities. * * * * * (b) * * * (3) * * * (iv) * * * (B) Grandfathering (1) Licensees. An attributable material relationship shall not disqualify a licensee for previously awarded benefits before April 25, 2006, based on spectrum lease or resale (including wholesale) arrangements entered into before April 25, 2006. (2) Applicants. An attributable material relationship shall not disqualify an applicant seeking eligibility in an application for a license, authorization, assignment, or transfer of control or for partitioning or disaggregation filed before April 25, 2006, based on spectrum lease or resale (including wholesale) arrangements entered into before April 25, 2006. Any applicant seeking eligibility in an application for a license, authorization, assignment, or transfer of control or for partitioning or disaggregation filed after April 25, 2006, or in an application to participate in an auction in which bidding begins on or after June 5, 2006, need not attribute the material E:\FR\FM\21MRR1.SGM 21MRR1 Federal Register / Vol. 77, No. 55 / Wednesday, March 21, 2012 / Rules and Regulations relationship(s) of those entities that are its affiliates based solely on paragraph (c)(5)(i)(C) of this section if those affiliates entered into such material relationship(s) before April 25, 2006, and are subject to a contractual prohibition preventing them from contributing to the applicant’s total financing. * * * * * (j) Designated entities must describe on their long-form applications how they satisfy the requirements for eligibility for designated entity status, and must list and summarize on their long form applications all agreements that affect designated entity status such as partnership agreements, shareholder agreements, management agreements, spectrum leasing arrangements, spectrum resale (including wholesale) arrangements, and all other agreements including oral agreements, establishing as applicable, de facto or de jure control of the entity or the presence or absence of attributable material relationships. Designated entities also must provide the date(s) on which they entered into of the agreements listed. In addition, designated entities must file with their long-form applications a copy of each such agreement. In order to enable the Commission to audit designated entity eligibility on an ongoing basis, designated entities that are awarded eligibility must, for the term of the license, maintain at their facilities or with their designated agents the lists, summaries, dates and copies of agreements required to be identified and provided to the Commission pursuant to this paragraph and to § 1.2114. * * * * * ■ 3. Section 1.2111 is revised by removing paragraph (d)(2)(i) and redesignating paragraphs (d)(2)(ii) and (iii) as paragraphs (d)(2)(i) and (ii) and by revising them to read as follows: § 1.2111 Assignment or transfer of control: unjust enrichment. erowe on DSK2VPTVN1PROD with RULES * * * * * (d) * * * (2) Payment schedule. (i) The amount of payments made pursuant to paragraph (d)(1) of this section will be reduced over time as follows: (A) A transfer in the first two years of the license term will result in a forfeiture of 100 percent of the value of the bidding credit (or in the case of very small businesses transferring to small businesses, 100 percent of the difference between the bidding credit received by the former and the bidding credit for which the latter is eligible); (B) A transfer in year 3 of the license term will result in a forfeiture of 75 VerDate Mar<15>2010 14:17 Mar 20, 2012 Jkt 226001 percent of the value of the bidding credit; (C) A transfer in year 4 of the license term will result in a forfeiture of 50 percent of the value of the bidding credit; (D) A transfer in year 5 of the license term will result in a forfeiture of 25 percent of the value of the bidding credit; and (E) For a transfer in year 6 or thereafter, there will be no payment. (ii) These payments will have to be paid to the United States Treasury as a condition of approval of the assignment, transfer, ownership change or reportable eligibility event (see § 1.2114). * * * * * ■ 4. Section 1.2112 is amended by revising paragraphs (b)(1)(iii) and (b)(2)(iii) to read as follows: * * * * (b) * * * (1) * * * (iii) List and summarize all agreements or instruments (with appropriate references to specific provisions in the text of such agreements and instruments) that support the applicant’s eligibility as a small business under the applicable designated entity provisions, including the establishment of de facto or de jure control or the presence or absence of attributable material relationships. Such agreements and instruments include articles of incorporation and by-laws, partnership agreements, shareholder agreements, voting or other trust agreements, management agreements, franchise agreements, spectrum leasing arrangements, spectrum resale (including wholesale) arrangements, and any other relevant agreements (including letters of intent), oral or written; * * * * * (2) * * * (iii) List and summarize all agreements or instruments (with appropriate references to specific provisions in the text of such agreements and instruments) that support the applicant’s eligibility as a small business under the applicable designated entity provisions, including the establishment of de facto or de jure control or the presence or absence of attributable material relationships. Such agreements and instruments include articles of incorporation and by-laws, partnership agreements, shareholder agreements, voting or other trust agreements, management agreements, franchise agreements, spectrum leasing PO 00000 Frm 00047 Fmt 4700 Sfmt 4700 arrangements, spectrum resale (including wholesale) arrangements, and any other relevant agreements (including letters of intent), oral or written; * * * * * [FR Doc. 2012–6946 Filed 3–20–12; 8:45 am] BILLING CODE 6712–01–P DEPARTMENT OF TRANSPORTATION Pipeline and Hazardous Materials Safety Administration 49 CFR Parts 191, 192, 193 and 195 [Docket No. PHMSA–2012–0001] Pipeline Safety: Implementation of the National Registry of Pipeline and Liquefied Natural Gas Operators Pipeline and Hazardous Materials Safety Administration (PHMSA), DOT. ACTION: Issuance of Advisory Bulletin. AGENCY: § 1.2112 Ownership disclosure requirements for applications. * 16471 This notice advises owners and operators of pipeline facilities of PHMSA’s plan for implementing the national registry of pipeline and liquefied natural gas operators. This notice provides updates to the information contained in a PHMSA Advisory Bulletin published on January 13, 2012 (77 FR 2126). FOR FURTHER INFORMATION CONTACT: Jamerson Pender, Information Resources Manager, 202–366–0218 or by email at Jamerson.Pender@dot.gov. SUPPLEMENTARY INFORMATION: SUMMARY: I. Background On November 26, 2010, PHMSA published a final rule in the Federal Register (75 FR 72878) titled: ‘‘Pipeline Safety: Updates to Pipeline and Liquefied Natural Gas Reporting Requirements.’’ That final rule added two new sections, 49 CFR 191.22 and 195.64, to the pipeline safety regulations that concerned the establishment of a national registry of pipeline and liquefied natural gas (LNG) operators. New operators use the national registry to obtain an Operator Identification (OPID) Number and existing operators use it to notify PHMSA of certain actions, including company name changes, certain construction activities, and project planning. The national pipeline operator registry became effective on January 1, 2012. In compliance with the Paperwork Reduction Act requirements, PHMSA issued a 60-day Federal Register notice on December 13, 2010 (75 FR 77694), and a 30-day Federal Register notice on E:\FR\FM\21MRR1.SGM 21MRR1

Agencies

[Federal Register Volume 77, Number 55 (Wednesday, March 21, 2012)]
[Rules and Regulations]
[Pages 16470-16471]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2012-6946]


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FEDERAL COMMUNICATIONS COMMISSION

47 CFR Part 1

[WT Docket No. 05-211; FCC 12-12]


Implementation of the Commercial Spectrum Enhancement Act and 
Modernization of the Commission's Competitive Bidding Rules and 
Procedures

AGENCY: Federal Communications Commission.

ACTION: Final rule.

-----------------------------------------------------------------------

SUMMARY: The Federal Communications Commission removes two 
modifications to its competitive bidding rules pursuant to a mandate by 
the U.S. Court of Appeals for the Third Circuit.

DATES: Effective March 21, 2012.

FOR FURTHER INFORMATION CONTACT: Wireless Telecommunications Bureau, 
Auctions and Spectrum Access Division: Audrey Bashkin at (202) 418-
0660.

SUPPLEMENTARY INFORMATION: This is a summary of an Order released on 
February 1, 2012. The complete text of the Order, including an 
attachment and related Commission documents, is available for public 
inspection and copying from 8 a.m. to 4:30 p.m. Eastern Time (ET) 
Monday through Thursday or from 8 a.m. to 11:30 a.m. ET on Fridays in 
the FCC Reference Information Center, 445 12th Street SW., Room CY-
A257, Washington, DC 20554. The Order and related Commission documents 
also may be purchased from the Commission's duplicating contractor, 
Best Copy and Printing, Inc. (BCPI), 445 12th Street SW., Room CY-B402, 
Washington, DC 20554, telephone 202-488-5300, fax 202-488-5563, Web 
site https://www.BCPIWEB.com. When ordering documents from BCPI, please 
provide the appropriate FCC document number, for example, FCC 12-12. 
The Order and related documents also are available on the Internet at 
the Commission's Web site: https://wireless.fcc.gov/auctions, or by 
using the search function for WT Docket No. 05-211 on the Commission's 
Electronic Comment Filing System (ECFS) Web page at https://www.fcc.gov/cgb/ecfs/.

I. Background

    1. In Council Tree Communications, Inc. v. FCC, 619 F.3d 235 (3d 
Cir. 2010), cert. denied, 131 S. Ct. 1784 (2011), the U.S. Court of 
Appeals for the Third Circuit vacated two modifications the Federal 
Communications Commission (Commission) had made in 2006 to its 
competitive bidding rules for designated entities on the ground that 
the Commission had failed to provide the public an adequate opportunity 
for notice and comment. The Commission removes the two modifications in 
accordance with the Third Circuit's mandate.
    2. The Third Circuit held that the Commission's impermissible 
material relationship rule in 47 CFR 1.2110(b)(3)(iv)(A) and its 
extension of the unjust enrichment period from five years to ten years 
in 47 CFR 1.2111(d)(2) had been adopted without the notice and 
opportunity for comment required by the Administrative Procedure Act. 
The Court thus vacated the impermissible material relationship rule and 
ordered reinstatement of the Commission's previous five year unjust 
enrichment payment schedule. The Court also denied Council Tree's 
petition for review with respect to the attributable-material-
relationship rule articulated in 47 CFR 1.2110(b)(1) and (b)(3)(iv)(B).

II. Discussion

    3. The Order conforms Part 1 of the Commission's rules to the 
Court's mandate by amending 47 CFR 1.2110 to remove paragraph 
(b)(3)(iv)(A) and 47 CFR 1.2111 by removing paragraph (d)(2)(i) as no 
longer applicable and reinstating the previous version of the payment 
schedule in 47 CFR 1.2111(d)(2). The Order also conforms other Part 1 
rules, as necessary, to remove several references to impermissible 
material relationships.
    4. The Commission finds that notice and comment are unnecessary for 
these rule amendments under 5 U.S.C. Section 553(b), because this is a 
ministerial order issued at the direction of the United States Court of 
Appeals for the Third Circuit.

III. Congressional Review Act

    5. The Commission will send a copy of the Order to Congress and the 
Government Accountability Office pursuant to the Congressional Review 
Act, see 5 U.S.C. 801(a)(1)(A).

List of Subjects in 47 CFR Part 1

    Administrative practice and procedures, Auctions, Licensing, 
Telecommunications.

Federal Communications Commission.
Bulah P. Wheeler,
Deputy Manager.

    For the reasons discussed in the preamble, the Federal 
Communications Commission amends 47 CFR part 1 as follows:

PART 1--PRACTICE AND PROCEDURE

0
1. The authority citation for part 1 continues to read as follows:

    Authority: 15 U.S.C. 79 et seq.; 47 U.S.C. 151, 154(j), 160, 
201, 225, 303, and 309.


0
2. Section 1.2110 is amended by removing paragraph (b)(3)(iv)(A) and 
redesignating paragraphs (b)(3)(iv)(B) and (C) as paragraphs 
(b)(3)(iv)(A) and (B) and by revising newly redesignated paragraph 
(b)(3)(iv)(B) and revising paragraph (j) to read as follows:


Sec.  1.2110  Designated entities.

* * * * *
    (b) * * *
    (3) * * *
    (iv) * * *
    (B) Grandfathering (1) Licensees. An attributable material 
relationship shall not disqualify a licensee for previously awarded 
benefits before April 25, 2006, based on spectrum lease or resale 
(including wholesale) arrangements entered into before April 25, 2006.
    (2) Applicants. An attributable material relationship shall not 
disqualify an applicant seeking eligibility in an application for a 
license, authorization, assignment, or transfer of control or for 
partitioning or disaggregation filed before April 25, 2006, based on 
spectrum lease or resale (including wholesale) arrangements entered 
into before April 25, 2006. Any applicant seeking eligibility in an 
application for a license, authorization, assignment, or transfer of 
control or for partitioning or disaggregation filed after April 25, 
2006, or in an application to participate in an auction in which 
bidding begins on or after June 5, 2006, need not attribute the 
material

[[Page 16471]]

relationship(s) of those entities that are its affiliates based solely 
on paragraph (c)(5)(i)(C) of this section if those affiliates entered 
into such material relationship(s) before April 25, 2006, and are 
subject to a contractual prohibition preventing them from contributing 
to the applicant's total financing.
* * * * *
    (j) Designated entities must describe on their long-form 
applications how they satisfy the requirements for eligibility for 
designated entity status, and must list and summarize on their long 
form applications all agreements that affect designated entity status 
such as partnership agreements, shareholder agreements, management 
agreements, spectrum leasing arrangements, spectrum resale (including 
wholesale) arrangements, and all other agreements including oral 
agreements, establishing as applicable, de facto or de jure control of 
the entity or the presence or absence of attributable material 
relationships. Designated entities also must provide the date(s) on 
which they entered into of the agreements listed. In addition, 
designated entities must file with their long-form applications a copy 
of each such agreement. In order to enable the Commission to audit 
designated entity eligibility on an ongoing basis, designated entities 
that are awarded eligibility must, for the term of the license, 
maintain at their facilities or with their designated agents the lists, 
summaries, dates and copies of agreements required to be identified and 
provided to the Commission pursuant to this paragraph and to Sec.  
1.2114.
* * * * *

0
3. Section 1.2111 is revised by removing paragraph (d)(2)(i) and 
redesignating paragraphs (d)(2)(ii) and (iii) as paragraphs (d)(2)(i) 
and (ii) and by revising them to read as follows:


Sec.  1.2111  Assignment or transfer of control: unjust enrichment.

* * * * *
    (d) * * *
    (2) Payment schedule. (i) The amount of payments made pursuant to 
paragraph (d)(1) of this section will be reduced over time as follows:
    (A) A transfer in the first two years of the license term will 
result in a forfeiture of 100 percent of the value of the bidding 
credit (or in the case of very small businesses transferring to small 
businesses, 100 percent of the difference between the bidding credit 
received by the former and the bidding credit for which the latter is 
eligible);
    (B) A transfer in year 3 of the license term will result in a 
forfeiture of 75 percent of the value of the bidding credit;
    (C) A transfer in year 4 of the license term will result in a 
forfeiture of 50 percent of the value of the bidding credit;
    (D) A transfer in year 5 of the license term will result in a 
forfeiture of 25 percent of the value of the bidding credit; and
    (E) For a transfer in year 6 or thereafter, there will be no 
payment.
    (ii) These payments will have to be paid to the United States 
Treasury as a condition of approval of the assignment, transfer, 
ownership change or reportable eligibility event (see Sec.  1.2114).
* * * * *

0
4. Section 1.2112 is amended by revising paragraphs (b)(1)(iii) and 
(b)(2)(iii) to read as follows:


Sec.  1.2112  Ownership disclosure requirements for applications.

* * * * *
    (b) * * *
    (1) * * *
    (iii) List and summarize all agreements or instruments (with 
appropriate references to specific provisions in the text of such 
agreements and instruments) that support the applicant's eligibility as 
a small business under the applicable designated entity provisions, 
including the establishment of de facto or de jure control or the 
presence or absence of attributable material relationships. Such 
agreements and instruments include articles of incorporation and by-
laws, partnership agreements, shareholder agreements, voting or other 
trust agreements, management agreements, franchise agreements, spectrum 
leasing arrangements, spectrum resale (including wholesale) 
arrangements, and any other relevant agreements (including letters of 
intent), oral or written;
* * * * *
    (2) * * *
    (iii) List and summarize all agreements or instruments (with 
appropriate references to specific provisions in the text of such 
agreements and instruments) that support the applicant's eligibility as 
a small business under the applicable designated entity provisions, 
including the establishment of de facto or de jure control or the 
presence or absence of attributable material relationships. Such 
agreements and instruments include articles of incorporation and by-
laws, partnership agreements, shareholder agreements, voting or other 
trust agreements, management agreements, franchise agreements, spectrum 
leasing arrangements, spectrum resale (including wholesale) 
arrangements, and any other relevant agreements (including letters of 
intent), oral or written;
* * * * *
[FR Doc. 2012-6946 Filed 3-20-12; 8:45 am]
BILLING CODE 6712-01-P
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