Misuse of Internet Protocol (IP) Captioned Telephone Service; Telecommunications Relay Services and Speech-to-Speech Services for Individuals With Hearing and Speech Disabilities, 8032-8039 [2013-02369]
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compensable in accordance with
paragraph (c)(5)(iii)(L)(4) of this section.
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[FR Doc. 2013–02367 Filed 2–1–13; 4:15 pm]
BILLING CODE 6712–01–P
FEDERAL COMMUNICATIONS
COMMISSION
47 CFR Part 64
[CG Docket Nos. 13–24 and 03–123; FCC
13–13]
Misuse of Internet Protocol (IP)
Captioned Telephone Service;
Telecommunications Relay Services
and Speech-to-Speech Services for
Individuals With Hearing and Speech
Disabilities
Federal Communications
Commission.
ACTION: Interim rule.
AGENCY:
In this document, the
Commission adopts interim rules
prohibiting all referrals for rewards
programs (as described in the synopsis
below) and any other form of direct or
indirect inducements, financial or
otherwise, to subscribe to or use, or
encourage subscription to or use of,
Internet Protocol Captioned Telephone
Service (IP CTS); requiring each IP CTS
provider, as a precondition to providing
service to new IP CTS users, to register
each new IP CTS user, to obtain from
the user, as part of the registration
process, self-certification that the user
has a hearing loss that necessitates IP
CTS to communicate in a manner that
is functionally equivalent to
communication by conventional voice
telephone users, and where the
consumer accepts IP CTS equipment at
a price below $75 from any source other
than a governmental program, to also
obtain from the user a certification from
an independent, third party professional
attesting to the same; and requiring IP
CTS providers to ensure that equipment
and software used in conjunction with
their service have a default setting of
captions off at the beginning of each
call, so that the consumer must take an
affirmative step to turn on the captions
each time the consumer wishes to use
IP CTS. The Commission’s action is
intended to address certain practices
related to the provision and marketing
of IP CTS that appear to be contributing
to a recent and dramatic spike in
reimbursement requests to the Interstate
Telecommunications Relay Service
Fund (TRS Fund or Fund), of sufficient
magnitude to constitute a serious threat
to the Fund if not promptly and
decisively addressed.
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SUMMARY:
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Effective February 5, 2013,
except the amendments to
§ 64.604(c)(10) of the Commission’s
rules which is effective March 7, 2013.
and 64.604(c)(9) of the Commission’s
rules which contain new information
collection requirements that have not
been approved by the Office of
Management and Budget (OMB). This
amendment will become effective upon
publication in the Federal Register of a
notice announcing the approval of such
requirements by the Office of
Management and Budget under the
Paperwork Reduction Act of 1995. The
Commission will publish a separate
document in the Federal Register
announcing the effective date.
DATES:
Eliot
Greenwald, Consumer and
Governmental Affairs Bureau, Disability
Rights Office, at (202) 418–2235 or
email Eliot.Greenwald@fcc.gov. For
additional information concerning the
PRA information collection
requirements contained in document
FCC 13–13, contact Cathy Williams at
(202) 418–2918, or email:
Cathy.Williams@fcc.gov and
PRA@fcc.gov.
FOR FURTHER INFORMATION CONTACT:
This is a
summary of the Commission’s Order,
document FCC 13–13, adopted on
January 24, 2013 and released on
January 25, 2013, in CG Docket Nos. 13–
24 and 03–123. In document FCC 13–13,
the Commission also adopted a Final
Rule and a Notice of Proposed
Rulemaking, each of which is
summarized in a separate Federal
Register publication. The full text of
document FCC 13–13 will be available
for public inspection and copying via
ECFS, and during regular business
hours at the FCC Reference Information
Center, Portals II, 445 12th Street SW.,
Room CY–A257, Washington, DC 20554.
It also may be purchased from the
Commission’s duplicating contractor,
Best Copy and Printing, Inc., Portals II,
445 12th Street SW., Room CY–B402,
Washington, DC 20554, telephone: (800)
378–3160, fax: (202) 488–5563, or
Internet: www.bcpiweb.com. Document
FCC 13–13 can also be downloaded in
Word or Portable Document Format
(PDF) at https://www.fcc.gov/cgb/dro/
trs.html#orders. To request materials in
accessible formats for people with
disabilities (Braille, large print,
electronic files, audio format), send an
email to fcc504@fcc.gov or call the
Consumer and Governmental Affairs
Bureau at 202–418–0530 (voice), 202–
418–0432 (TTY).
SUPPLEMENTARY INFORMATION:
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Final Paperwork Reduction Act of 1995
Analysis
Document FCC 13–13 contains new
information collection requirements.
The Commission, as part of its
continuing effort to reduce paperwork
burdens, will invite the general public
to comment on the information
collection requirements contained in
document FCC 13–13 as required by the
PRA of 1995, Public Law 104–13 in a
separate notice that will be published in
the Federal Register. In addition,
pursuant to the Small Business
Paperwork Relief Act of 2002, Public
Law 107–198, 44 U.S.C. 3506(c)(4), the
Commission seeks specific comment on
how the Commission might further
reduce the information collection
burden for small business concerns with
fewer than 25 employees. In this present
document, the Commission has assessed
the effects of imposing various
requirements on IP CTS providers and
on consumers of IP CTS. The
Commission recognizes that these
requirements are necessary to detect and
prevent abuse and waste in the IP CTS
program. The Commission takes these
actions to ensure the sustainability of
the program upon which individuals
with hearing disabilities have come to
rely for their daily communication
needs. In doing so, the Commission has
balanced preserving the sustainability of
the IP CTS program and minimizing the
information collection burden for
consumers and small business concerns,
including those small businesses with
fewer than 25 employees. For example,
in adopting requirements for IP CTS
providers, in order to be eligible for
compensation from the TRS Fund for
providing service to new IP CTS users,
to register the users and obtain from the
users certification of hearing loss
necessitating use of IP CTS, the rule
affords considerable flexibility by
allowing those consumers who have
purchased their IP CTS equipment for
$75 or more, or obtained equipment
from a governmental program, to selfcertify as to their hearing loss.
Nevertheless, such procedures are
necessary to limit use of IP CTS to those
who actually have a hearing loss that
necessitates use of the service.
Synopsis
1. In document FCC 13–13, the
Commission takes immediate, interim
steps to address certain practices related
to the provision and marketing of IP
CTS that appear to be contributing to a
recent and dramatic spike in
reimbursement requests to the TRS
Fund, of sufficient magnitude to
constitute a serious threat to the Fund
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if not promptly and decisively
addressed. IP CTS permits people who
can speak, but who have difficulty
hearing over the telephone, to speak
directly to another party on a telephone
call and to use an IP-enabled device to
simultaneously listen to the other party
and read captions of what that party is
saying. In document FCC 13–13, the
Commission finds good cause to adopt
on an emergency basis interim rules (1)
prohibiting all referrals for rewards
programs (as described below) and any
other form of direct or indirect
inducements, financial or otherwise, to
subscribe to or use, or encourage
subscription to or use of, IP CTS; (2)
requiring each IP CTS provider, in order
to be eligible for compensation from the
Fund for providing service to new IP
CTS users, (i) to register each new IP
CTS user, (ii) as part of the registration
process, to obtain from the user a selfcertification that the user has a hearing
loss that necessitates IP CTS to
communicate in a manner that is
functionally equivalent to
communication by conventional voice
telephone users, and (iii) where the
consumer accepts IP CTS equipment at
a price below $75 from any source other
than a governmental program, to also
obtain from the user a certification from
an independent, third party professional
attesting to the same; (3) requiring IP
CTS providers to ensure that equipment
and software used in conjunction with
their service have a default setting of
captions off at the beginning of each
call, so that the consumer must take an
affirmative step to turn on the captions
each time the consumer wishes to use
IP CTS. The interim rules will take
effect in three stages. First, the interim
rules prohibiting referrals for rewards
will become effective upon publication
in the Federal Register. Second, the
interim rules requiring a default setting
of captions off at the beginning of each
call will become effective thirty days
after publication in the Federal
Register. Third, the interim rules on
registration and certification will
become effective upon publication in
the Federal Register of a notice
announcing the approval of such
requirements by the Office of
Management and Budget under the
Paperwork Reduction Act of 1995.
These interim rules will sunset on a
common date, which will be either (1)
180 days after the effective date for the
interim rules on registration and
certification or (2) the effective date of
final rules on these issues, whichever
date is sooner. The Commission will
publish a separate document in the
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Federal Register announcing the sunset
date.
2. Telecommunications relay services
(TRS) enable an individual with a
hearing or speech disability to
communicate with other individuals ‘‘in
a manner that is functionally
equivalent’’ to a hearing individual’s
ability to communicate using voice
communications services. 47 U.S.C. 225.
This is currently accomplished through
TRS facilities staffed by
communications assistants (CAs) who
relay conversations between persons
using various types of assistive
communication devices and persons
using end user telephone equipment,
such as a standard telephone,
smartphone, or computer. Captioned
telephone service (CTS) works by
having the hard of hearing user dial the
number she or he wishes to call. The
user’s phone is automatically connected
to a captioned telephone CA at the same
time she or he reaches the called party.
Once connected, the CA re-voices
everything the called party says and
uses voice recognition technology to
automatically transcribe those words
into captions. The captions then are
transmitted directly to the user and are
displayed, shortly after the called party
speaks, on the display of a captioned
telephone device, a computer, or a
smartphone. The public switched
telecommunications network (PSTN)
version of CTS was approved in 2003.
Telecommunications Relay Services and
Speech-to-Speech Services for
Individuals with Hearing and Speech
Disabilities, Declaratory Ruling, CC
Docket No. 98–67, published at 68 FR
55898, September 29, 2003 (CTS
Declaratory Ruling). The Internet-based
version of CTS (IP CTS) was approved
in 2007. Telecommunications Relay
Services and Speech-to-Speech Services
for Individuals with Hearing and Speech
Disabilities, CG Docket No. 03–123,
Declaratory Ruling, published at 72 FR
6960, February 14, 2007 (IP CTS Order).
When this service was first established,
the Commission set only the minimum
standards that apply to all TRS, but did
not establish any eligibility criteria
specifically for use of this service.
3. Section 225 of the Communications
Act of 1934, as amended (Act), 47 U.S.C.
225, and its implementing regulations
provide that the costs for providing
TRS, including IP CTS, are not charged
to the consumers using these services;
rather, the costs are passed on to all
consumers of telecommunications and
voice over Internet Protocol providers.
47 U.S.C. 225(d)(3); see also
§ 64.604(c)(5) of the Commission’s rules.
Interstate relay calls and all calls made
via Internet-based forms of TRS are
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funded through mandatory
contributions made to the Fund by these
providers. 47 U.S.C. 225(d)(3); see also
§ CFR 64.604(c)(5) of the Commission’s
rules. Eligible providers of compensable
TRS are then entitled to recover their
‘‘reasonable’’ costs of providing service
from this Fund in compliance with the
Commission’s service rules. See
§ 64.604(c)(5)(iii)(E) of the
Commission’s rules. IP CTS and
interstate CTS providers are paid using
a methodology known as the Multi-state
Average Rate Structure Plan (MARS
Plan), which calculates the
compensation rate for IP CTS using a
weighted average of the state rates for
intrastate CTS. Given this funding
methodology, the Commission presently
does not require providers of these
services to file annual cost and demand
data submissions with the Fund
administrator. Telecommunications
Relay Services and Speech-to-Speech
Services for Individuals with Hearing
and Speech Disabilities, CG Docket No.
03–123, Report and Order, and
Declaratory Ruling, published at 73 FR
3197, 3200, January 17, 2008. In the
absence of such data, the Fund
administrator estimates CTS and IP CTS
demand projections based on actual
historical demand. See, e.g.,
Telecommunications Relay Services and
Speech-to-Speech Services for
Individuals with Hearing and Speech
Disabilities; Structure and Practices of
the Video Relay Service Program, CG
Docket Nos. 03–123 & 10–51, Order, 27
FCC Rcd 7150, 7155 at paragraph 13,
footnote 56 (CGB 2012) (2012 TRS Rate
Order).
4. In recent months, IP CTS has been
experiencing unprecedented and
unusually rapid growth. For example,
the total number of minutes for which
compensation was requested by
providers increased by an average of
11% per month from June to October
2012. In October 2012 alone, requested
minutes exceeded the minutes budgeted
for this service by the Fund
Administrator by 38% and as a
consequence, the total requested payout
also exceeded the budgeted amount by
38%, almost $4 million. As discussed
below, the Commission has reason to
believe that this growth is being caused
by the offering of incentives for referrals
to use this service, as well as usage of
this service by people without a hearing
loss that necessitates the use of IP CTS
to communicate in a functionally
equivalent manner, and that, if
unchecked, this growth threatens in the
very near term to overwhelm the Fund.
Because all forms of TRS are supported
through one Fund, this puts all forms of
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TRS in jeopardy and threatens to
deprive people who are deaf or hard of
hearing of the benefits of the program.
5. The growth in IP CTS witnessed in
recent months represents a sudden and
sharp departure from the trend of
declining rates of growth in usage of this
service over three prior years. It is only
within recent months that the
Commission learned about the
extraordinary escalation in this service’s
usage, as well as the existence of the
referrals for rewards programs and the
lack of specific eligibility criteria for
new users. Although there was a
temporary leveling off of usage in
September 2012, it was followed by a
steep incline in usage in October 2012,
confirming the Commission’s
expectation that the program’s sudden
acceleration of growth will continue in
the immediate months ahead—growth
that, if left unchecked, could exacerbate
the potential for harm to both the Fund
and legitimate users of TRS. In
particular, data indicate that, absent
Commission action, there could be
insufficient funds available in this Fund
year to meet the needs of the Fund,
potentially triggering a violation of the
Anti-Deficiency Act, 31 U.S.C.
1341(a)(1)(A), and otherwise threatening
the availability of the service for
consumers of this and other relay
services supported by the Fund.
6. The Commission concludes that
protecting such interests at this time
outweighs the public interest in
providing prior notice of the interim
rules the Commission now adopts.
Moreover, although the Commission did
not formally provide notice and an
opportunity to comment, the
Commission nevertheless received
extensive input from interested parties
on these issues, including input from all
of the active providers of IP CTS and a
number of consumer groups. In order to
allow for notice and comment as soon
as feasible, however, the Commission is
putting these rules in place for only a
short interim period. Because the harm
to the Fund appears to result from
certain practices addressed in document
FCC 13–13, the Commission believes
the most appropriate immediate action
is to adopt the few interim rules
discussed below, rather than simply to
allow the Fund to grow unchecked
while the Commission solicits public
comment. Such action will enable the
Commission to better control the level
of TRS disbursements and protect the
programmatic, legal, and financial
integrity of the TRS program.
Conversely, failing to take immediate
action to stem such practices could well
threaten the availability of this and
other relay services that are supported
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by the Fund for the benefit of legitimate
users. Moreover, because the
Commission believes that a substantial
portion of this growth is arising from
practices that may be inconsistent with
the policies underlying section 225 of
the Act and the Commission’s
implementing regulations, the
Commission is concerned that if interim
rules are not adopted immediately, the
use of questionable practices would
continue and even accelerate, adding
further to the strain on the Fund. In
addition, if the Commission were to
follow ordinary notice and comment
procedures, IP CTS providers would be
able to continue—indeed, to
accelerate—the use of potentially
inappropriate incentives to recruit and
sign up new IP CTS users without first
establishing their eligibility for an
extended period of time while the
rulemaking process is pending.
7. To prevent these imminent public
harms from occurring and to bring Fund
expenditures for this service under
control, the Commission finds that three
immediate measures are necessary.
First, because, as discussed below, the
Commission finds that referrals for
rewards programs are likely to unduly
and inappropriately incent consumers
to obtain equipment and use service that
they might not otherwise use, the
Commission prohibits all referrals for
rewards programs and any other form of
direct or indirect inducements, financial
or otherwise, to subscribe or use or
encourage subscription to or use of IP
CTS. Second, to prevent the
unnecessary subscription to and use of
the service by consumers who do not
need IP CTS to communicate in a
functionally equivalent manner, the
Commission adopts interim rules to
require each IP CTS provider, in order
to be eligible for compensation from the
TRS Fund for providing service to new
IP CTS users, to register each new user
for service with the IP CTS provider
and, as part of the registration process,
to obtain from each user a selfcertification that (1) the user has a
hearing loss that necessitates the use of
IP CTS to communicate in a manner that
is functionally equivalent to
communication by conventional voice
telephone users, (2) the user
understands that the captioning service
is provided by a live CA; and (3) the
user understands that the cost of the IP
CTS calls is funded by the TRS Fund.
In addition, where the consumer accepts
IP CTS equipment for less than $75 from
any source other than a governmental
program that distributes the equipment,
the provider must obtain from the user
a certification from an independent,
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third party professional attesting to the
necessity for IP CTS. Third, to prevent
improper billing of the TRS Fund for the
use of IP CTS by individuals who do not
need IP CTS to communicate in a
functionally equivalent manner and
who are either living in the household
or visiting the house or office of an
eligible user, the Commission adopts
interim rules requiring IP CTS providers
to ensure that equipment and software
used in conjunction with IP CTS have
a default setting of captions off at the
beginning of each call, so that the
consumer must take an affirmative step
to turn on the captions each time the
consumer wishes to use IP CTS. At the
same time that the Commission adopts
these rules on an interim basis to
address these immediate concerns, the
Commission seeks comment in the
accompanying Notice of Proposed
Rulemaking (NPRM) on these and other
possible actions to address the
sustainability of this service in the long
term.
8. As noted above, TRS enables an
individual with a hearing or speech
disability to communicate with other
individuals ‘‘in a manner that is
functionally equivalent’’ to a hearing
individual’s ability to communicate
using voice communications services.
Section 225(b) of the Act directs the
Commission to ensure that TRS services
are available to persons with hearing
and speech disabilities ‘‘to the extent
possible and in the most efficient
manner.’’ 47 U.S.C. 225(b)(1). Further,
section 225(d) of the Act instructs the
Commission to adopt regulations
implementing section 225 of the Act,
including regulations ‘‘establish[ing]
functional requirements, guidelines, and
operations procedures for [TRS],’’ 47
U.S.C. 225(d)(1)(A), as well as
mandatory ‘‘minimum standards’’
governing the provision of TRS. 47
U.S.C. 225(d)(1)(A). These provisions
authorize the rules adopted herein, and
as discussed below, the Commission
concludes that it has authority to adopt
these interim rules immediately,
without prior notice and opportunity for
comment.
9. Section 553 of the Administrative
Procedure Act (APA) requires that
agencies provide notice of and an
opportunity for public comment on
their proposed rules except, inter alia,
‘‘when the agency for good cause finds
(and incorporates the finding and a brief
statement of reasons therefor in the
rules issued) that notice and public
procedure thereon are impracticable,
unnecessary, or contrary to the public
interest.’’ 5 U.S.C. 553(b)(3)(B). The
decision not to follow notice and
comment procedures has been allowed
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in emergency situations or where delay
could result in serious harm. Chamber
of Commerce, 443 F.3d at 908. See also
Rural Cellular Ass’n v. FCC, 588 F.3d
1095, 1105–06 (DC Cir. 2009). In this
case, the Commission finds good cause
to adopt immediate interim rules to
address the recent, unprecedented and
unusually rapid increase in IP CTS
minutes of use in order to maintain the
integrity of the Fund, to sustain this
service and other forms of TRS for
legitimate users during the coming
months, and to help avoid increasing
mid-year the amount that
telecommunications and VoIP providers
must pay into the Fund in order to
account for the rapid growth caused by
these potentially improper practices. In
particular, the Commission finds that
because IP CTS growth is occurring so
rapidly, it would be impracticable and
contrary to the public interest to delay
remedial action by waiting until after
completion of the notice and comment
process, which can take several months,
to adopt any rules. See, e.g.,
Amendment of the Commission’s Rules
to Permit FM Channel And Class
Modifications by Application, Notice of
Proposed Rulemaking, 7 FCC Rcd 4943,
4944, paragraph 6, footnote 12 (1992).
The actions the Commission takes in
this order thus are aimed at preserving
the fiscal integrity of the TRS Fund and
ensuring compliance with applicable
Federal law.
10. Referrals for Rewards. The recent
expansion in usage of IP CTS appears to
have been precipitated largely by new
referral programs that offer monetary
rewards for the referral of customers
who sign up for installation of the
provider’s IP CTS end user equipment.
These rewards are being given to third
parties, including the providers’ existing
customers, members of the general
public, and hearing and health care
professionals such as audiologists. In a
variation of these referral programs,
providers are also making donations to
charities, again contingent on a
consumer’s receiving the providers’ IP
CTS phone and service. The
Commission is concerned about these
financial incentive programs, which
may well be resulting in the registration
for and usage of IP CTS by new IP CTS
users who do not need these services to
communicate in a manner that is
functionally equivalent to
communication by conventional voice
telephone users. By offering rewards to
individuals, professionals, and
organizations for enlisting customers for
IP CTS, the referral programs may
indirectly encourage consumers to sign
up for this relay service, whether or not
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they actually need the service to
communicate in a functionally
equivalent manner, in order to earn
money for their friends or for programs
and charitable services that they
support. As noted above, such practices
appear to be having a profound
detrimental impact on the Fund.
Specifically, payment of such rewards
to third parties may well encourage
consumers to order IP CTS service just
to gain the incentive benefit. For
example, such incentive rewards
programs appear to prompt charitable
organizations to advertise a provider’s
IP CTS to their members and to
encourage those members to produce
the promised donations by ordering the
provider’s IP CTS. When a charitable
organization promotes registration with
an IP CTS provider in order for the
organization to receive the $50
donations that result, such promotions
may encourage the organization’s
members to order the IP CTS provider’s
service in order to support the
organization, whether or not they
actually need the service to
communicate in a manner that is
functionally equivalent to
communication by conventional voice
telephone users. The more customers
that sign up to use the provider’s IP
CTS, the greater the financial rewards to
participants in the incentive programs,
and the more compensation the
provider is able to collect from the
Fund, at no cost to the consumer. In
short, offering such rewards may have
the effect of enlisting customers who
might not otherwise have a reason to
use the service. Such practices thus not
only threaten the Fund, but also may be
inconsistent with the very purpose of
the TRS program—to provide
communication services for people with
hearing or speech disabilities who are
otherwise unable to use conventional
telephone services. See 47 U.S.C.
225(a)(3) (defining TRS to ‘‘* * *
provide the ability for an individual
who is deaf, hard of hearing, deaf-blind,
or who has a speech disability to engage
in communication by wire or radio.
* * *’’). For these various reasons, the
Commission finds good cause to adopt
an interim rule expressly prohibiting,
for a short term, all referrals for rewards
programs and any other form of direct
or indirect inducements, financial or
otherwise, to subscribe to or use, or
encourage subscription to or use of IP
CTS, including inducements that
provide incentives for potential users to
subscribe to IP CTS or that incent third
parties, such as audiologists and other
hearing and health professionals, to
encourage such subscriptions.
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11. The Commission disagrees with
the argument that it should treat
differently the payment of referral fees
to hearing specialists and payments to
non-experts such as friends and
charities. To the extent that such
professionals are offered rewards that
incent them to encourage consumers to
order and use IP CTS—whether or not
such consumers would actually benefit
from IP CTS—such rewards may be
promoting the use of IP CTS by
individuals who do not need this
service, or who could benefit more from
other assistive devices or hearing
technologies.
12. In the TRS context, the
Commission has had a history of
addressing fraud, abuse and misuse
through restrictions on financial
incentives such as those adopted here.
See Telecommunications Relay Services
and Speech-to-Speech Services for
Individuals with Hearing and Speech
Disabilities, CG Docket No. 03–123,
Report and Order, and Declaratory
Ruling; published at 73 FR 3197,
January 17, 2008 (prohibiting payments
made to third parties and incentives that
result in the registration of consumers
with a TRS provider, as well as
incentives that increase a subscriber’s
usage of TRS).
13. The Commission believes that
providers can effectively promote IP
CTS without offering financial rewards
for referrals through, for example, the
distribution of literature to assistive
technology specialists, audiologists, and
other professionals; the insertion of
advertisements in mainstream and
disability publications, and
participation in disability conferences
and other activities to inform
professionals and the public about the
benefits of this service. The Commission
also believes that any expectation by
professionals that they will receive
compensation for making such referrals
appears to be generally inconsistent
with established federal policy. For
example, the Commission’s interim
prohibition of referral awards to
audiologists and other professionals is
consistent with the health care antikickback statute, which prohibits the
offering or payment of any remuneration
in return for (A) referring an individual
for the furnishing or arranging for the
furnishing of any item or service for
which payment may be made under a
Federal health care program or (B) in
return for purchasing, leasing or
ordering any good, facility, service, or
item for which payment may be made
under a Federal health care program. 42
U.S.C. 1320a–7b(b)(2). Subject to
receiving further comment on this and
other issues, the Commission finds that
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the underlying public policy reasons for
the healthcare anti-kickback statute
appear to apply equally to awards for
referrals provided to audiologists and
other professionals.
14. The temporary prohibition
adopted by the Commission includes
any programs initiated, sponsored or
operated by IP CTS providers that offer
financial or other incentives or rewards
to third parties for the referral of
customers who sign up to use the
provider’s IP CTS offering, as well as
provider programs or practices offering
or providing any payment or other thing
of value, directly or indirectly to a
potential or existing IP CTS user. In
addition to the prohibition against
rewards for referrals, the temporary
prohibition against any other form of
direct or indirect inducements, financial
or otherwise, to subscribe or use or
encourage subscription to or use of IP
CTS would prohibit, for example, a
provider from reimbursing a consumer
for the cost of his or her examination by
a hearing or health professional that
would be needed to establish the
consumer’s hearing loss or for the cost
of obtaining other eligibility
documentation. The Commission is
reserving judgment at this point
pending the further development of a
record in response to the accompanying
NPRM as to whether there should be a
permanent prohibition on these
practices.
15. Registration and Certification. The
recent and unexpected escalation in IP
CTS minutes raises serious concerns
about whether IP CTS is now being
made available to and used by some
consumers who may not need the
service to communicate in a manner
that is functionally equivalent to
telephone communication by
conventional voice telephone users.
This sudden swell in IP CTS minutes
not only threatens the long term
viability of this service for those who
truly need it, but also, on a more
immediate basis, it threatens to exhaust
monies currently available in the Fund
for this and other approved TRS within
the next few months. For the reasons
discussed below, the Commission finds
it necessary to adopt interim rules
addressing registration and eligibility
certification to use this service.
16. IP CTS is distinguishable from
most other forms of TRS by its unusual
ease and convenience of use. In contrast
to other forms of TRS, which often
require special skills (e.g., knowledge of
American Sign Language by persons
who use video relay services) or are
designed for very discrete portions of
the population with specific
communication needs (e.g., people with
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speech disabilities who need to use
specially trained speech-to-speech CAs),
consumers who use IP CTS may be less
likely to ‘‘self-screen’’ in choosing
whether to subscribe to IP CTS.
Furthermore, IP CTS is ‘‘provided in a
way that is automated and invisible to
both parties to the call,’’ IP CTS Order,
72 FR 6960, February 14, 2007, likely
making it a more attractive TRS option
than other services in which the CA has
a known presence. Indeed, one of the
central benefits to IP CTS is that, unlike
most other forms of TRS, IP CTS is
capable of being used without any
interruption in the normal flow of a
voice telephone conversation. Further,
unlike the PSTN-based forms of CTS
and many other types of TRS, incoming
IP CTS calls are not encumbered by
having to first dial an 800 number to
reach a CA; rather, the call can be
directly dialed to the IP CTS user.
Finally, IP CTS offers certain features
that may attract its use by individuals
who may not necessarily need the
service to communicate in a manner
that is functionally equivalent to
communication by conventional voice
telephone users, but rather simply
desire such features. For example, a
consumer with no hearing loss might
subscribe to and use IP CTS merely
because it provides a transcription of
what the other party to a call is saying.
Other individuals may use the captions
to engage in multiple tasks at the same
time, and may not be aware that this is
a publicly funded program that supports
the costs of captions each time they are
produced. And some individuals who
do not need captions might sign up for
service in order to obtain a free or
subsidized highly-amplified phone from
the provider. The Commission therefore
finds that there is a greater risk,
compared with other forms of TRS, that
IP CTS is being used (with consequent
billing of the Fund for the minutes used)
by individuals who do not need the
service to communicate in a manner
that is functionally equivalent to
communication by conventional voice
telephone users.
17. To address the anticipated nearterm impact on the TRS Fund and to
ensure that only those individuals for
whom TRS truly was intended are using
this service—and thereby prevent waste
of Fund resources—the Commission
finds it necessary and appropriate at
this time to adopt, on an interim basis,
a registration and certification
requirement to restrict the use of IP CTS
to those who have a hearing disability
that the Commission believes the Act
and the Commission’s rules are
intended to address. The Commission
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believes that the exigent circumstances
that now exist require the Commission
to take such action to protect the Fund
during the 2012–13 Fund year, and to
fulfill Congress’s mandate for this
service to be available to eligible
persons who genuinely need it to
communicate by telephone in a manner
that is functionally equivalent to
telephone use by hearing individuals.
The Commission further believes that
the action it takes today is in accordance
with section 225 of the Act’s mandate to
provide TRS ‘‘to the extent possible and
in the most efficient manner’’ to its
intended population. 47 U.S.C.
225(b)(1).
18. In order to ease the burden of
compliance, the Commission will accept
a self-certification in those instances in
which the user has either made a
significant financial investment in IP
CTS equipment or received that
equipment through a governmental
program. While there is no way at this
time to pinpoint the precise cost that
will most effectively deter ineligible
usage of IP CTS, the Commission
believes that setting a floor of at least
$75 in order to qualify for the selfcertification-only option represents a
reasonable balancing of interests. The
amount is high enough to affect most
consumers’ purchasing decisions, but
not so high as to make the purchase of
equipment infeasible. Indeed, a floor of
$75 is well below the listed retail prices
for the captioned telephones used with
current IP CTS offerings. The
Commission also finds self-certification
alone to be sufficient if the individual
obtains free or low-cost equipment from
a governmental program because such
programs themselves screen users to
determine their need for IP CTS.
19. The Commission believes that
limiting the number of potential users
who need to seek third-party
certification in this manner for a short
period while it determines what
permanent certification requirements
will best serve the Fund is in the public
interest, and will not place an undue
burden on legitimate IP CTS users. As
to the effect of this rule on low-income
individuals who may not be able to
afford $75 for IP CTS equipment, those
individuals may be able to obtain IP
CTS equipment from state equipment
distribution programs, and in any event
may accept free or very low-priced
equipment so long as they obtain a
third-party certification. Thus, the
Commission believes that this interim
rule is unlikely to prevent those who
truly need access to IP CTS from
receiving the service.
20. The Commission therefore adopts
an interim rule that requires each IP
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CTS provider, in order to be eligible for
compensation from the TRS Fund for
providing service to new IP CTS users,
to register each new IP CTS user for
service and as part of the registration
process, to obtain from each user a selfcertification that (1) the user has a
hearing loss that necessitates the use of
IP CTS to communicate in a manner that
is functionally equivalent to
communication by conventional voice
telephone users, (2) the user
understands that the captioning service
is provided by a live CA, and (3) the
user understands that the cost of the IP
CTS calls is funded by the TRS Fund.
This self-certification must be made on
a form separate from any other user
agreement (such as on a separate page),
and requires a separate signature
specific to the self-certification. For the
purposes of this requirement, an
electronic signature has the same legal
effect as a written signature.
21. Where the consumer accepts IP
CTS equipment for less than $75 from
any source other than a governmental
program, the interim rule also requires
the provider to obtain a certification
from an independent, third-party
professional attesting that the user has
a hearing loss that necessitates the use
of IP CTS to communicate in a manner
that is functionally equivalent to
communication by conventional voice
telephone users. Such third-party
professionals must be qualified to
evaluate an individual’s hearing loss in
accordance with applicable professional
standards, and may include communitybased service providers, hearing related
professionals, vocational rehabilitation
counselors, occupational therapists,
social workers, educators, audiologists,
speech pathologists, hearing instrument
specialists, and doctors, nurses, and
other medical or health professionals.
Any such professionals must certify in
writing that the applicant needs IP CTS
to communicate in a manner that is
functionally equivalent to conventional
voice telephone service experienced by
individuals without hearing disabilities.
In cases where new users have obtained
IP CTS equipment for free or at low cost
through a governmental program, the
Commission finds it reasonable for
purposes of the interim rules to permit
the provider to rely on documentation
demonstrating that the equipment was
obtained through one of these programs,
in lieu of providing an independent,
third-party certification. These steps
will protect against registration by
individuals who do not need
captioning, but who are registering
merely to receive free or very
inexpensive phones. The Commission
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also requires each IP CTS provider to
maintain the confidentiality of all
registration and certification
information obtained by the provider,
and to not disclose such registration and
certification information, as well as the
content of such information, except as
required by law.
22. Default Captions Off. In addition
to adopting measures to ensure that IP
CTS equipment and service is provided
to subscribers who need the service to
communicate in a functionally
equivalent manner, the Commission
seeks to prevent billing of the TRS Fund
for casual or inadvertent use of IP CTS
by other individuals who do not need IP
CTS to communicate by phone, in
particular those who may be living in a
subscriber’s household or visiting a
subscriber’s house or office. It is the
Commission’s understanding that much
of the IP CTS equipment that is being
distributed at this time provides for
captions to be automatically displayed
without the need to affirmatively turn
the captions on. As a consequence, the
TRS Fund is billed unless the person
using the IP CTS equipment takes
affirmative action to turn the captions
off. Further, some equipment is
configured such that the user must go
through a two-step process to turn
captions off, rather than having a clear
on/off button visible at all times.
23. To avoid misuse of IP CTS, and to
ensure that the Fund is used for
functionally equivalent telephone
service for people with disabilities, the
Commission is requiring on an interim
basis that all providers ensure that
equipment and software used in
conjunction with their IP CTS have
captions turned off as the default
setting. This is consistent with actions
already taken by a number of states to
prevent similar misuse of PSTN-based
CTS. The Commission anticipates that
consumers who are provided with a
clear on/off option and an explanation
of how to use it can reasonably be
expected to learn to turn captioning on
at the beginning of each call.
24. Further, while taking one or more
steps, such as pushing a button, to
receive captions may add a small
burden to the process of using IP CTS,
the Commission preliminarily finds that
any burden is outweighed by the
substantial public interest in preventing
the misuse of this service. As explained
earlier, IP CTS is ‘‘provided in a way
that is automated and invisible to both
parties to the call,’’ IP CTS Order, 72 FR
6960, is capable of being used without
any interruption in the normal flow of
a voice telephone conversation, and
offers certain features that may attract
its use by individuals who may not
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necessarily need the service to
communicate in a manner that is
functionally equivalent to
communication by conventional voice
telephone users. Because of these IP
CTS attributes, with a captions-on
setting, the likelihood increases that
individuals who do not need IP CTS
may be casually or inadvertently using
IP CTS, causing illegitimate minutes of
use to be billed to the Fund.
25. For these same reasons, the
Commission also requires, on an interim
basis, that IP CTS equipment not
provide consumers the option of
changing the default setting from
captions-off to captions-on. At this time,
the Commission likewise does not adopt
a proposed exception to allow a
consumer-initiated ‘‘default on’’ setting
for users that provide an elevated
certification to the effect that: (a) They
understand that the captioning service
they enjoy free of charge is provided by
a live CA dedicated to each of their
captioned calls, and reimbursed by the
TRS Fund, (b) their device is not
accessed by or easily accessible to
ineligible users, and (c) they will not
permit the use of captions on their
device by any ineligible persons. Even
well-intentioned users may find it
difficult to ensure that there is no
unnecessary use of captioning once it is
turned on; by contrast, the burden on
the consumer to simply press a
‘‘captions on’’ button or similar method
appears to be minimal. The
accompanying NPRM seeks comment on
this proposed exception, as well as a
suggestion that the Commission set
standards for connection time after the
consumer activates the captions.
26. In order to afford IP CTS providers
an opportunity to make any software
and other changes necessary to
implement a captions-off default setting,
the requirements adopted herein will
become effective 30 days after their
publication in the Federal Register. To
the extent that it is technically
infeasible for a particular IP CTS
provider to comply within this 30-day
time period for equipment that is
already deployed, the provider may
request additional time by seeking a
limited waiver of the effective date,
supported by an appropriate good cause
showing.
Effective Date
27. The APA provides that a
substantive rule cannot become effective
earlier than 30 days after the required
publication or service of the rule, except
‘‘as otherwise provided by the agency
for good cause found and published
with the rule.’’ 5 U.S.C. 553(d). See also
§ 1.427(a) of the Commission’s rules. As
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discussed above, the Commission finds
good cause to adopt immediately
interim rules without the opportunity
for public comment because the
Commission believes that the imminent
harms to the Fund and legitimate TRS
users outweigh the public interest in
obtaining comment before such rules go
into effect. The same good cause reasons
for adopting immediately interim rules
without the opportunity for public
comment apply to making the rules
effective as soon as possible. As noted
above, any delay in making the rules
effective would encourage IP CTS
providers, during the period prior to the
effective date, to continue and possibly
even accelerate the use of inappropriate
incentives to recruit and sign up new
users without first establishing their
eligibility, adding additional
uncontrolled growth that could result in
TRS payment obligations exceeding the
amount available in the Fund. Further,
the Commission has no reason to
believe that IP CTS providers cannot
comply with the rules adopted herein
within the prescribed time periods.
There are only four providers currently
offering IP CTS, and the payment of
incentives and registration of new users
are matters well within each provider’s
immediate ability to control.
28. The interim rules adopted in
document FCC 13–13 shall cease to be
effective on a common date that is either
(1) 180 days after the effective date for
the interim rules on registration and
certification, § 64.604(c)(9) of the
Commission’s rules, or (2) the effective
date of final rules on these issues,
whichever date is sooner. The
Commission will publish a separate
document in the Federal Register
announcing the sunset date.
Final Regulatory Flexibility Analysis
29. The Regulatory Flexibility Act
(RFA), 5 U.S.C. 603, requires that an
agency prepare a regulatory flexibility
analysis for notice-and-comment
rulemaking proceedings, unless the
agency certifies that ‘‘the rule will not,
if promulgated, have a significant
economic impact on a substantial
number of small entities.’’ 5 U.S.C.
605(b). The RFA generally defines
‘‘small entity’’ as having the same
meaning as the terms ‘‘small business,’’
‘‘small organization,’’ and ‘‘small
governmental jurisdiction.’’ 5 U.S.C.
601(6). In addition, the term ‘‘small
business’’ has the same meaning as the
term ‘‘small business concern’’ under
the Small Business Act. 5 U.S.C 601(3).
A ‘‘small business concern’’ is one
which: (1) Is independently owned and
operated; (2) is not dominant in its field
of operation; and (3) satisfies any
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additional criteria established by the
Small Business Administration (SBA).
15 U.S.C. 632.
30. In document FCC 13–13, in
response to an urgent public interest
need to curtail misuse of IP CTS, the
Commission adopts interim rules
prohibiting all referrals for rewards
programs and any other form of direct
and indirect inducements, financial or
otherwise to subscribe or use or
encourage subscription to or use of IP
CTS. The Commission also adopts
interim rules requiring each IP CTS
provider, in order to be eligible for
compensation from the TRS Fund for
providing service to new IP CTS users,
(1) to register each new IP CTS user for
service, (2) as part of the registration
process, to obtain from each user a selfcertification that the user has a hearing
loss that necessitates IP CTS to
communicate in a manner that is
functionally equivalent to
communication by conventional voice
telephone users, and (3) where the
consumer accepts IP CTS equipment at
a price below $75 from any source other
than a governmental program, to obtain
from the user a certification from an
independent, third party professional
attesting to the same. The Commission
also requires IP CTS equipment to have
a default setting of captions off at the
beginning of each call, so that the
consumer must affirmatively turn on the
captions each time the consumer wishes
to use IP CTS.
31. In recent months, IP CTS has been
experiencing unusually rapid growth.
The Commission is concerned that
usage of this service by people who may
not need the assistance of IP CTS, along
with improper incentives for referrals to
use this service are contributing
substantially to this sudden, rapid
increase in IP CTS minutes of use.
32. With regard to the criterion of the
economic impact of document FCC 13–
13, the Commission concludes that IP
CTS providers fit within the business
classification of Wired
Telecommunications Carriers. See
NAICS Code 517110 (2007). The closest
applicable size standard under the SBA
rules is for Wired Telecommunications
Carriers, for which the small business
size standard is all such firms having
1,500 or fewer employees. 13 CFR
121.201, NAICS Code 517110 (2007).
Collectively, there are four IP CTS
providers that are authorized by the
Commission to offer these services.
Only one of these entities is a small
business under the SBA size standard.
Therefore, the interim rules would not
have a significant economic impact on
a substantial number of small entities.
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33. The Commission therefore
certifies, pursuant to the RFA, that the
interim rules adopted in document FCC
13–13 will not have a significant
economic impact on a substantial
number of small entities. The
Commission will send a copy of
document FCC 13–13, including a copy
of the RFA certification, to the Chief
Counsel for Advocacy of the SBA.
Congressional Review Act
34. The Commission will send a copy
of document FCC 13–13 in a report to
be sent to Congress and the Government
Accountability Office pursuant to the
Congressional Review Act. 5 U.S.C.
801(a)(1)(A).
Ordering Clauses
35. Pursuant to sections 1, 2, 4(i) and
(j) and 225 of the Communications Act
of 1934, as amended, 47 U.S.C. 151, 152,
154(i) and (j) and 225, document FCC
13–13 is hereby adopted.
List of Subjects in 47 CFR Part 64
Individuals with disabilities,
Reporting and recordkeeping
requirements, Telecommunications.
Federal Communications Commission
Marlene H. Dortch,
Secretary.
Interim Rule Changes
For the reasons discussed in the
preamble, the Federal Communications
Commission amends 47 CFR part 64 as
follows:
PART 64—MISCELLANEOUS RULES
RELATING TO COMMON CARRIERS
1. The authority citation to part 64
continues to read as follows:
■
Authority: 47 U.S.C. 154, 254(k);
403(b)(2)(B), (c), Pub. L. 104–104, 110 Stat.
56. Interpret or apply 47 U.S.C. 201, 218, 222,
225, 226, 227, 228, 254(k), 616, 620, and the
Middle Class Tax Relief and Job Creation Act
of 2012, Pub. L. 112–96, unless otherwise
noted.
2. Amend § 64.604 by adding
paragraphs (c)(8), (9), and (10) to read as
follows:
■
§ 64.604
Mandatory minimum standards.
*
*
*
*
*
(c) * * *
(8) Inducements for use of IP CTS. (i)
An IP CTS provider shall not offer or
provide to any person or entity any form
of direct or indirect inducements,
financial or otherwise, to subscribe to or
use or encourage subscription to or use
of IP CTS. IP CTS providers offering or
providing such inducements shall be
ineligible for any compensation for IP
CTS from the TRS Fund.
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(ii) [Reserved].
(9) IP CTS registration and
certification requirements. (i) IP CTS
providers, in order to be eligible to
receive compensation from the TRS
Fund for providing IP CTS to a new
consumer, must first register the new
consumer applying for service by
obtaining the following registration
information: The consumer’s name,
address and telephone number.
(ii) IP CTS providers, in order to be
eligible to receive compensation from
the TRS Fund for providing IP CTS to
a new consumer, also must first obtain
a written certification attesting that the
consumer needs IP CTS to communicate
in a manner that is functionally
equivalent to the ability of a hearing
individual to communicate using voice
communications services.
(iii) The certification required by
paragraph (c)(9)(ii) of this section must
include the consumer’s certification
that:
(A) The consumer has a hearing loss
that necessitates IP CTS to communicate
in a manner that is functionally
equivalent to communication by
conventional voice telephone users;
(B) The consumer understands that
the captioning service is provided by a
live communications assistant; and
(C) The consumer understands that
the cost of the IP CTS calls is funded by
the TRS Fund.
(iv) The certification required by
paragraph (c)(9)(ii) of this section must
be made on a form separate from any
other agreement or form, and must
include a separate consumer signature
specific to the certification. For
purposes of this rule, an electronic
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signature, defined by the Electronic
Signatures in Global and National
Commerce Act, 15 U.S.C. 7001 et seq.,
as an electronic sound, symbol, or
process, attached to or logically
associated with a contract or other
record and executed or adopted by a
person with the intent to sign the
record, has the same legal effect as a
written signature.
(v) In instances where IP CTS
equipment is obtained by a new
consumer for less than $75, the IP CTS
provider must also, in order to be
eligible to receive compensation from
the TRS Fund, obtain written
certification provided and signed by an
independent third-party professional,
except as provided in paragraph
(c)(9)(v)(D) of this section .
(A) In instances where certification
from an independent third-party
professional is required, such
professionals must be qualified to
evaluate an individual’s hearing loss in
accordance with applicable professional
standards, and may include, but are not
limited to, community-based social
service providers, hearing related
professionals, vocational rehabilitation
counselors, occupational therapists,
social workers, educators, audiologists,
speech pathologists, hearing instrument
specialists, and doctors, nurses, and
other medical or health professionals.
(B) In instances where certification
from an independent third-party
professional is required, such thirdparty professionals must certify in
writing that the IP CTS consumer is an
individual with hearing loss who needs
IP CTS to communicate in a manner that
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8039
is functionally equivalent to telephone
service experienced by individuals
without hearing disabilities.
(C) In instances where certification
from an independent third-party
professional is required, such thirdparty professional must provide his or
her name, title, and contact information,
including address, telephone number,
and email address.
(D) In instances where the new
consumer has obtained equipment from
a governmental program, the new
consumer may present documentation
to the IP CTS provider demonstrating
that the equipment was obtained
through one of these programs, in lieu
of providing an independent, thirdparty certification.
(vi) Each IP CTS provider shall
maintain the confidentiality of any
registration and certification
information obtained by the provider,
and may not disclose such registration
and certification information or the
content of such registration and
certification information except as
required by law or regulation.
(vii) [Reserved].
(10) IP CTS default settings. (i) IP CTS
providers must ensure that equipment
and software used in conjunction with
their service have a default setting of
captions off, so that new and existing IP
CTS users must affirmatively turn on
captioning for each telephone call
initiated or received before captioning is
provided.
(ii) [Reserved].
[FR Doc. 2013–02369 Filed 2–1–13; 4:15 pm]
BILLING CODE 6712–01–P
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Agencies
[Federal Register Volume 78, Number 24 (Tuesday, February 5, 2013)]
[Rules and Regulations]
[Pages 8032-8039]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2013-02369]
-----------------------------------------------------------------------
FEDERAL COMMUNICATIONS COMMISSION
47 CFR Part 64
[CG Docket Nos. 13-24 and 03-123; FCC 13-13]
Misuse of Internet Protocol (IP) Captioned Telephone Service;
Telecommunications Relay Services and Speech-to-Speech Services for
Individuals With Hearing and Speech Disabilities
AGENCY: Federal Communications Commission.
ACTION: Interim rule.
-----------------------------------------------------------------------
SUMMARY: In this document, the Commission adopts interim rules
prohibiting all referrals for rewards programs (as described in the
synopsis below) and any other form of direct or indirect inducements,
financial or otherwise, to subscribe to or use, or encourage
subscription to or use of, Internet Protocol Captioned Telephone
Service (IP CTS); requiring each IP CTS provider, as a precondition to
providing service to new IP CTS users, to register each new IP CTS
user, to obtain from the user, as part of the registration process,
self-certification that the user has a hearing loss that necessitates
IP CTS to communicate in a manner that is functionally equivalent to
communication by conventional voice telephone users, and where the
consumer accepts IP CTS equipment at a price below $75 from any source
other than a governmental program, to also obtain from the user a
certification from an independent, third party professional attesting
to the same; and requiring IP CTS providers to ensure that equipment
and software used in conjunction with their service have a default
setting of captions off at the beginning of each call, so that the
consumer must take an affirmative step to turn on the captions each
time the consumer wishes to use IP CTS. The Commission's action is
intended to address certain practices related to the provision and
marketing of IP CTS that appear to be contributing to a recent and
dramatic spike in reimbursement requests to the Interstate
Telecommunications Relay Service Fund (TRS Fund or Fund), of sufficient
magnitude to constitute a serious threat to the Fund if not promptly
and decisively addressed.
DATES: Effective February 5, 2013, except the amendments to Sec.
64.604(c)(10) of the Commission's rules which is effective March 7,
2013. and 64.604(c)(9) of the Commission's rules which contain new
information collection requirements that have not been approved by the
Office of Management and Budget (OMB). This amendment will become
effective upon publication in the Federal Register of a notice
announcing the approval of such requirements by the Office of
Management and Budget under the Paperwork Reduction Act of 1995. The
Commission will publish a separate document in the Federal Register
announcing the effective date.
FOR FURTHER INFORMATION CONTACT: Eliot Greenwald, Consumer and
Governmental Affairs Bureau, Disability Rights Office, at (202) 418-
2235 or email Eliot.Greenwald@fcc.gov. For additional information
concerning the PRA information collection requirements contained in
document FCC 13-13, contact Cathy Williams at (202) 418-2918, or email:
Cathy.Williams@fcc.gov and PRA@fcc.gov.
SUPPLEMENTARY INFORMATION: This is a summary of the Commission's Order,
document FCC 13-13, adopted on January 24, 2013 and released on January
25, 2013, in CG Docket Nos. 13-24 and 03-123. In document FCC 13-13,
the Commission also adopted a Final Rule and a Notice of Proposed
Rulemaking, each of which is summarized in a separate Federal Register
publication. The full text of document FCC 13-13 will be available for
public inspection and copying via ECFS, and during regular business
hours at the FCC Reference Information Center, Portals II, 445 12th
Street SW., Room CY-A257, Washington, DC 20554. It also may be
purchased from the Commission's duplicating contractor, Best Copy and
Printing, Inc., Portals II, 445 12th Street SW., Room CY-B402,
Washington, DC 20554, telephone: (800) 378-3160, fax: (202) 488-5563,
or Internet: www.bcpiweb.com. Document FCC 13-13 can also be downloaded
in Word or Portable Document Format (PDF) at https://www.fcc.gov/cgb/dro/trs.html#orders. To request materials in accessible formats for
people with disabilities (Braille, large print, electronic files, audio
format), send an email to fcc504@fcc.gov or call the Consumer and
Governmental Affairs Bureau at 202-418-0530 (voice), 202-418-0432
(TTY).
Final Paperwork Reduction Act of 1995 Analysis
Document FCC 13-13 contains new information collection
requirements. The Commission, as part of its continuing effort to
reduce paperwork burdens, will invite the general public to comment on
the information collection requirements contained in document FCC 13-13
as required by the PRA of 1995, Public Law 104-13 in a separate notice
that will be published in the Federal Register. In addition, pursuant
to the Small Business Paperwork Relief Act of 2002, Public Law 107-198,
44 U.S.C. 3506(c)(4), the Commission seeks specific comment on how the
Commission might further reduce the information collection burden for
small business concerns with fewer than 25 employees. In this present
document, the Commission has assessed the effects of imposing various
requirements on IP CTS providers and on consumers of IP CTS. The
Commission recognizes that these requirements are necessary to detect
and prevent abuse and waste in the IP CTS program. The Commission takes
these actions to ensure the sustainability of the program upon which
individuals with hearing disabilities have come to rely for their daily
communication needs. In doing so, the Commission has balanced
preserving the sustainability of the IP CTS program and minimizing the
information collection burden for consumers and small business
concerns, including those small businesses with fewer than 25
employees. For example, in adopting requirements for IP CTS providers,
in order to be eligible for compensation from the TRS Fund for
providing service to new IP CTS users, to register the users and obtain
from the users certification of hearing loss necessitating use of IP
CTS, the rule affords considerable flexibility by allowing those
consumers who have purchased their IP CTS equipment for $75 or more, or
obtained equipment from a governmental program, to self-certify as to
their hearing loss. Nevertheless, such procedures are necessary to
limit use of IP CTS to those who actually have a hearing loss that
necessitates use of the service.
Synopsis
1. In document FCC 13-13, the Commission takes immediate, interim
steps to address certain practices related to the provision and
marketing of IP CTS that appear to be contributing to a recent and
dramatic spike in reimbursement requests to the TRS Fund, of sufficient
magnitude to constitute a serious threat to the Fund
[[Page 8033]]
if not promptly and decisively addressed. IP CTS permits people who can
speak, but who have difficulty hearing over the telephone, to speak
directly to another party on a telephone call and to use an IP-enabled
device to simultaneously listen to the other party and read captions of
what that party is saying. In document FCC 13-13, the Commission finds
good cause to adopt on an emergency basis interim rules (1) prohibiting
all referrals for rewards programs (as described below) and any other
form of direct or indirect inducements, financial or otherwise, to
subscribe to or use, or encourage subscription to or use of, IP CTS;
(2) requiring each IP CTS provider, in order to be eligible for
compensation from the Fund for providing service to new IP CTS users,
(i) to register each new IP CTS user, (ii) as part of the registration
process, to obtain from the user a self-certification that the user has
a hearing loss that necessitates IP CTS to communicate in a manner that
is functionally equivalent to communication by conventional voice
telephone users, and (iii) where the consumer accepts IP CTS equipment
at a price below $75 from any source other than a governmental program,
to also obtain from the user a certification from an independent, third
party professional attesting to the same; (3) requiring IP CTS
providers to ensure that equipment and software used in conjunction
with their service have a default setting of captions off at the
beginning of each call, so that the consumer must take an affirmative
step to turn on the captions each time the consumer wishes to use IP
CTS. The interim rules will take effect in three stages. First, the
interim rules prohibiting referrals for rewards will become effective
upon publication in the Federal Register. Second, the interim rules
requiring a default setting of captions off at the beginning of each
call will become effective thirty days after publication in the Federal
Register. Third, the interim rules on registration and certification
will become effective upon publication in the Federal Register of a
notice announcing the approval of such requirements by the Office of
Management and Budget under the Paperwork Reduction Act of 1995. These
interim rules will sunset on a common date, which will be either (1)
180 days after the effective date for the interim rules on registration
and certification or (2) the effective date of final rules on these
issues, whichever date is sooner. The Commission will publish a
separate document in the Federal Register announcing the sunset date.
2. Telecommunications relay services (TRS) enable an individual
with a hearing or speech disability to communicate with other
individuals ``in a manner that is functionally equivalent'' to a
hearing individual's ability to communicate using voice communications
services. 47 U.S.C. 225. This is currently accomplished through TRS
facilities staffed by communications assistants (CAs) who relay
conversations between persons using various types of assistive
communication devices and persons using end user telephone equipment,
such as a standard telephone, smartphone, or computer. Captioned
telephone service (CTS) works by having the hard of hearing user dial
the number she or he wishes to call. The user's phone is automatically
connected to a captioned telephone CA at the same time she or he
reaches the called party. Once connected, the CA re-voices everything
the called party says and uses voice recognition technology to
automatically transcribe those words into captions. The captions then
are transmitted directly to the user and are displayed, shortly after
the called party speaks, on the display of a captioned telephone
device, a computer, or a smartphone. The public switched
telecommunications network (PSTN) version of CTS was approved in 2003.
Telecommunications Relay Services and Speech-to-Speech Services for
Individuals with Hearing and Speech Disabilities, Declaratory Ruling,
CC Docket No. 98-67, published at 68 FR 55898, September 29, 2003 (CTS
Declaratory Ruling). The Internet-based version of CTS (IP CTS) was
approved in 2007. Telecommunications Relay Services and Speech-to-
Speech Services for Individuals with Hearing and Speech Disabilities,
CG Docket No. 03-123, Declaratory Ruling, published at 72 FR 6960,
February 14, 2007 (IP CTS Order). When this service was first
established, the Commission set only the minimum standards that apply
to all TRS, but did not establish any eligibility criteria specifically
for use of this service.
3. Section 225 of the Communications Act of 1934, as amended (Act),
47 U.S.C. 225, and its implementing regulations provide that the costs
for providing TRS, including IP CTS, are not charged to the consumers
using these services; rather, the costs are passed on to all consumers
of telecommunications and voice over Internet Protocol providers. 47
U.S.C. 225(d)(3); see also Sec. 64.604(c)(5) of the Commission's
rules. Interstate relay calls and all calls made via Internet-based
forms of TRS are funded through mandatory contributions made to the
Fund by these providers. 47 U.S.C. 225(d)(3); see also Sec. CFR
64.604(c)(5) of the Commission's rules. Eligible providers of
compensable TRS are then entitled to recover their ``reasonable'' costs
of providing service from this Fund in compliance with the Commission's
service rules. See Sec. 64.604(c)(5)(iii)(E) of the Commission's
rules. IP CTS and interstate CTS providers are paid using a methodology
known as the Multi-state Average Rate Structure Plan (MARS Plan), which
calculates the compensation rate for IP CTS using a weighted average of
the state rates for intrastate CTS. Given this funding methodology, the
Commission presently does not require providers of these services to
file annual cost and demand data submissions with the Fund
administrator. Telecommunications Relay Services and Speech-to-Speech
Services for Individuals with Hearing and Speech Disabilities, CG
Docket No. 03-123, Report and Order, and Declaratory Ruling, published
at 73 FR 3197, 3200, January 17, 2008. In the absence of such data, the
Fund administrator estimates CTS and IP CTS demand projections based on
actual historical demand. See, e.g., Telecommunications Relay Services
and Speech-to-Speech Services for Individuals with Hearing and Speech
Disabilities; Structure and Practices of the Video Relay Service
Program, CG Docket Nos. 03-123 & 10-51, Order, 27 FCC Rcd 7150, 7155 at
paragraph 13, footnote 56 (CGB 2012) (2012 TRS Rate Order).
4. In recent months, IP CTS has been experiencing unprecedented and
unusually rapid growth. For example, the total number of minutes for
which compensation was requested by providers increased by an average
of 11% per month from June to October 2012. In October 2012 alone,
requested minutes exceeded the minutes budgeted for this service by the
Fund Administrator by 38% and as a consequence, the total requested
payout also exceeded the budgeted amount by 38%, almost $4 million. As
discussed below, the Commission has reason to believe that this growth
is being caused by the offering of incentives for referrals to use this
service, as well as usage of this service by people without a hearing
loss that necessitates the use of IP CTS to communicate in a
functionally equivalent manner, and that, if unchecked, this growth
threatens in the very near term to overwhelm the Fund. Because all
forms of TRS are supported through one Fund, this puts all forms of
[[Page 8034]]
TRS in jeopardy and threatens to deprive people who are deaf or hard of
hearing of the benefits of the program.
5. The growth in IP CTS witnessed in recent months represents a
sudden and sharp departure from the trend of declining rates of growth
in usage of this service over three prior years. It is only within
recent months that the Commission learned about the extraordinary
escalation in this service's usage, as well as the existence of the
referrals for rewards programs and the lack of specific eligibility
criteria for new users. Although there was a temporary leveling off of
usage in September 2012, it was followed by a steep incline in usage in
October 2012, confirming the Commission's expectation that the
program's sudden acceleration of growth will continue in the immediate
months ahead--growth that, if left unchecked, could exacerbate the
potential for harm to both the Fund and legitimate users of TRS. In
particular, data indicate that, absent Commission action, there could
be insufficient funds available in this Fund year to meet the needs of
the Fund, potentially triggering a violation of the Anti-Deficiency
Act, 31 U.S.C. 1341(a)(1)(A), and otherwise threatening the
availability of the service for consumers of this and other relay
services supported by the Fund.
6. The Commission concludes that protecting such interests at this
time outweighs the public interest in providing prior notice of the
interim rules the Commission now adopts. Moreover, although the
Commission did not formally provide notice and an opportunity to
comment, the Commission nevertheless received extensive input from
interested parties on these issues, including input from all of the
active providers of IP CTS and a number of consumer groups. In order to
allow for notice and comment as soon as feasible, however, the
Commission is putting these rules in place for only a short interim
period. Because the harm to the Fund appears to result from certain
practices addressed in document FCC 13-13, the Commission believes the
most appropriate immediate action is to adopt the few interim rules
discussed below, rather than simply to allow the Fund to grow unchecked
while the Commission solicits public comment. Such action will enable
the Commission to better control the level of TRS disbursements and
protect the programmatic, legal, and financial integrity of the TRS
program. Conversely, failing to take immediate action to stem such
practices could well threaten the availability of this and other relay
services that are supported by the Fund for the benefit of legitimate
users. Moreover, because the Commission believes that a substantial
portion of this growth is arising from practices that may be
inconsistent with the policies underlying section 225 of the Act and
the Commission's implementing regulations, the Commission is concerned
that if interim rules are not adopted immediately, the use of
questionable practices would continue and even accelerate, adding
further to the strain on the Fund. In addition, if the Commission were
to follow ordinary notice and comment procedures, IP CTS providers
would be able to continue--indeed, to accelerate--the use of
potentially inappropriate incentives to recruit and sign up new IP CTS
users without first establishing their eligibility for an extended
period of time while the rulemaking process is pending.
7. To prevent these imminent public harms from occurring and to
bring Fund expenditures for this service under control, the Commission
finds that three immediate measures are necessary. First, because, as
discussed below, the Commission finds that referrals for rewards
programs are likely to unduly and inappropriately incent consumers to
obtain equipment and use service that they might not otherwise use, the
Commission prohibits all referrals for rewards programs and any other
form of direct or indirect inducements, financial or otherwise, to
subscribe or use or encourage subscription to or use of IP CTS. Second,
to prevent the unnecessary subscription to and use of the service by
consumers who do not need IP CTS to communicate in a functionally
equivalent manner, the Commission adopts interim rules to require each
IP CTS provider, in order to be eligible for compensation from the TRS
Fund for providing service to new IP CTS users, to register each new
user for service with the IP CTS provider and, as part of the
registration process, to obtain from each user a self-certification
that (1) the user has a hearing loss that necessitates the use of IP
CTS to communicate in a manner that is functionally equivalent to
communication by conventional voice telephone users, (2) the user
understands that the captioning service is provided by a live CA; and
(3) the user understands that the cost of the IP CTS calls is funded by
the TRS Fund. In addition, where the consumer accepts IP CTS equipment
for less than $75 from any source other than a governmental program
that distributes the equipment, the provider must obtain from the user
a certification from an independent, third party professional attesting
to the necessity for IP CTS. Third, to prevent improper billing of the
TRS Fund for the use of IP CTS by individuals who do not need IP CTS to
communicate in a functionally equivalent manner and who are either
living in the household or visiting the house or office of an eligible
user, the Commission adopts interim rules requiring IP CTS providers to
ensure that equipment and software used in conjunction with IP CTS have
a default setting of captions off at the beginning of each call, so
that the consumer must take an affirmative step to turn on the captions
each time the consumer wishes to use IP CTS. At the same time that the
Commission adopts these rules on an interim basis to address these
immediate concerns, the Commission seeks comment in the accompanying
Notice of Proposed Rulemaking (NPRM) on these and other possible
actions to address the sustainability of this service in the long term.
8. As noted above, TRS enables an individual with a hearing or
speech disability to communicate with other individuals ``in a manner
that is functionally equivalent'' to a hearing individual's ability to
communicate using voice communications services. Section 225(b) of the
Act directs the Commission to ensure that TRS services are available to
persons with hearing and speech disabilities ``to the extent possible
and in the most efficient manner.'' 47 U.S.C. 225(b)(1). Further,
section 225(d) of the Act instructs the Commission to adopt regulations
implementing section 225 of the Act, including regulations
``establish[ing] functional requirements, guidelines, and operations
procedures for [TRS],'' 47 U.S.C. 225(d)(1)(A), as well as mandatory
``minimum standards'' governing the provision of TRS. 47 U.S.C.
225(d)(1)(A). These provisions authorize the rules adopted herein, and
as discussed below, the Commission concludes that it has authority to
adopt these interim rules immediately, without prior notice and
opportunity for comment.
9. Section 553 of the Administrative Procedure Act (APA) requires
that agencies provide notice of and an opportunity for public comment
on their proposed rules except, inter alia, ``when the agency for good
cause finds (and incorporates the finding and a brief statement of
reasons therefor in the rules issued) that notice and public procedure
thereon are impracticable, unnecessary, or contrary to the public
interest.'' 5 U.S.C. 553(b)(3)(B). The decision not to follow notice
and comment procedures has been allowed
[[Page 8035]]
in emergency situations or where delay could result in serious harm.
Chamber of Commerce, 443 F.3d at 908. See also Rural Cellular Ass'n v.
FCC, 588 F.3d 1095, 1105-06 (DC Cir. 2009). In this case, the
Commission finds good cause to adopt immediate interim rules to address
the recent, unprecedented and unusually rapid increase in IP CTS
minutes of use in order to maintain the integrity of the Fund, to
sustain this service and other forms of TRS for legitimate users during
the coming months, and to help avoid increasing mid-year the amount
that telecommunications and VoIP providers must pay into the Fund in
order to account for the rapid growth caused by these potentially
improper practices. In particular, the Commission finds that because IP
CTS growth is occurring so rapidly, it would be impracticable and
contrary to the public interest to delay remedial action by waiting
until after completion of the notice and comment process, which can
take several months, to adopt any rules. See, e.g., Amendment of the
Commission's Rules to Permit FM Channel And Class Modifications by
Application, Notice of Proposed Rulemaking, 7 FCC Rcd 4943, 4944,
paragraph 6, footnote 12 (1992). The actions the Commission takes in
this order thus are aimed at preserving the fiscal integrity of the TRS
Fund and ensuring compliance with applicable Federal law.
10. Referrals for Rewards. The recent expansion in usage of IP CTS
appears to have been precipitated largely by new referral programs that
offer monetary rewards for the referral of customers who sign up for
installation of the provider's IP CTS end user equipment. These rewards
are being given to third parties, including the providers' existing
customers, members of the general public, and hearing and health care
professionals such as audiologists. In a variation of these referral
programs, providers are also making donations to charities, again
contingent on a consumer's receiving the providers' IP CTS phone and
service. The Commission is concerned about these financial incentive
programs, which may well be resulting in the registration for and usage
of IP CTS by new IP CTS users who do not need these services to
communicate in a manner that is functionally equivalent to
communication by conventional voice telephone users. By offering
rewards to individuals, professionals, and organizations for enlisting
customers for IP CTS, the referral programs may indirectly encourage
consumers to sign up for this relay service, whether or not they
actually need the service to communicate in a functionally equivalent
manner, in order to earn money for their friends or for programs and
charitable services that they support. As noted above, such practices
appear to be having a profound detrimental impact on the Fund.
Specifically, payment of such rewards to third parties may well
encourage consumers to order IP CTS service just to gain the incentive
benefit. For example, such incentive rewards programs appear to prompt
charitable organizations to advertise a provider's IP CTS to their
members and to encourage those members to produce the promised
donations by ordering the provider's IP CTS. When a charitable
organization promotes registration with an IP CTS provider in order for
the organization to receive the $50 donations that result, such
promotions may encourage the organization's members to order the IP CTS
provider's service in order to support the organization, whether or not
they actually need the service to communicate in a manner that is
functionally equivalent to communication by conventional voice
telephone users. The more customers that sign up to use the provider's
IP CTS, the greater the financial rewards to participants in the
incentive programs, and the more compensation the provider is able to
collect from the Fund, at no cost to the consumer. In short, offering
such rewards may have the effect of enlisting customers who might not
otherwise have a reason to use the service. Such practices thus not
only threaten the Fund, but also may be inconsistent with the very
purpose of the TRS program--to provide communication services for
people with hearing or speech disabilities who are otherwise unable to
use conventional telephone services. See 47 U.S.C. 225(a)(3) (defining
TRS to ``* * * provide the ability for an individual who is deaf, hard
of hearing, deaf-blind, or who has a speech disability to engage in
communication by wire or radio. * * *''). For these various reasons,
the Commission finds good cause to adopt an interim rule expressly
prohibiting, for a short term, all referrals for rewards programs and
any other form of direct or indirect inducements, financial or
otherwise, to subscribe to or use, or encourage subscription to or use
of IP CTS, including inducements that provide incentives for potential
users to subscribe to IP CTS or that incent third parties, such as
audiologists and other hearing and health professionals, to encourage
such subscriptions.
11. The Commission disagrees with the argument that it should treat
differently the payment of referral fees to hearing specialists and
payments to non-experts such as friends and charities. To the extent
that such professionals are offered rewards that incent them to
encourage consumers to order and use IP CTS--whether or not such
consumers would actually benefit from IP CTS--such rewards may be
promoting the use of IP CTS by individuals who do not need this
service, or who could benefit more from other assistive devices or
hearing technologies.
12. In the TRS context, the Commission has had a history of
addressing fraud, abuse and misuse through restrictions on financial
incentives such as those adopted here. See Telecommunications Relay
Services and Speech-to-Speech Services for Individuals with Hearing and
Speech Disabilities, CG Docket No. 03-123, Report and Order, and
Declaratory Ruling; published at 73 FR 3197, January 17, 2008
(prohibiting payments made to third parties and incentives that result
in the registration of consumers with a TRS provider, as well as
incentives that increase a subscriber's usage of TRS).
13. The Commission believes that providers can effectively promote
IP CTS without offering financial rewards for referrals through, for
example, the distribution of literature to assistive technology
specialists, audiologists, and other professionals; the insertion of
advertisements in mainstream and disability publications, and
participation in disability conferences and other activities to inform
professionals and the public about the benefits of this service. The
Commission also believes that any expectation by professionals that
they will receive compensation for making such referrals appears to be
generally inconsistent with established federal policy. For example,
the Commission's interim prohibition of referral awards to audiologists
and other professionals is consistent with the health care anti-
kickback statute, which prohibits the offering or payment of any
remuneration in return for (A) referring an individual for the
furnishing or arranging for the furnishing of any item or service for
which payment may be made under a Federal health care program or (B) in
return for purchasing, leasing or ordering any good, facility, service,
or item for which payment may be made under a Federal health care
program. 42 U.S.C. 1320a-7b(b)(2). Subject to receiving further comment
on this and other issues, the Commission finds that
[[Page 8036]]
the underlying public policy reasons for the healthcare anti-kickback
statute appear to apply equally to awards for referrals provided to
audiologists and other professionals.
14. The temporary prohibition adopted by the Commission includes
any programs initiated, sponsored or operated by IP CTS providers that
offer financial or other incentives or rewards to third parties for the
referral of customers who sign up to use the provider's IP CTS
offering, as well as provider programs or practices offering or
providing any payment or other thing of value, directly or indirectly
to a potential or existing IP CTS user. In addition to the prohibition
against rewards for referrals, the temporary prohibition against any
other form of direct or indirect inducements, financial or otherwise,
to subscribe or use or encourage subscription to or use of IP CTS would
prohibit, for example, a provider from reimbursing a consumer for the
cost of his or her examination by a hearing or health professional that
would be needed to establish the consumer's hearing loss or for the
cost of obtaining other eligibility documentation. The Commission is
reserving judgment at this point pending the further development of a
record in response to the accompanying NPRM as to whether there should
be a permanent prohibition on these practices.
15. Registration and Certification. The recent and unexpected
escalation in IP CTS minutes raises serious concerns about whether IP
CTS is now being made available to and used by some consumers who may
not need the service to communicate in a manner that is functionally
equivalent to telephone communication by conventional voice telephone
users. This sudden swell in IP CTS minutes not only threatens the long
term viability of this service for those who truly need it, but also,
on a more immediate basis, it threatens to exhaust monies currently
available in the Fund for this and other approved TRS within the next
few months. For the reasons discussed below, the Commission finds it
necessary to adopt interim rules addressing registration and
eligibility certification to use this service.
16. IP CTS is distinguishable from most other forms of TRS by its
unusual ease and convenience of use. In contrast to other forms of TRS,
which often require special skills (e.g., knowledge of American Sign
Language by persons who use video relay services) or are designed for
very discrete portions of the population with specific communication
needs (e.g., people with speech disabilities who need to use specially
trained speech-to-speech CAs), consumers who use IP CTS may be less
likely to ``self-screen'' in choosing whether to subscribe to IP CTS.
Furthermore, IP CTS is ``provided in a way that is automated and
invisible to both parties to the call,'' IP CTS Order, 72 FR 6960,
February 14, 2007, likely making it a more attractive TRS option than
other services in which the CA has a known presence. Indeed, one of the
central benefits to IP CTS is that, unlike most other forms of TRS, IP
CTS is capable of being used without any interruption in the normal
flow of a voice telephone conversation. Further, unlike the PSTN-based
forms of CTS and many other types of TRS, incoming IP CTS calls are not
encumbered by having to first dial an 800 number to reach a CA; rather,
the call can be directly dialed to the IP CTS user. Finally, IP CTS
offers certain features that may attract its use by individuals who may
not necessarily need the service to communicate in a manner that is
functionally equivalent to communication by conventional voice
telephone users, but rather simply desire such features. For example, a
consumer with no hearing loss might subscribe to and use IP CTS merely
because it provides a transcription of what the other party to a call
is saying. Other individuals may use the captions to engage in multiple
tasks at the same time, and may not be aware that this is a publicly
funded program that supports the costs of captions each time they are
produced. And some individuals who do not need captions might sign up
for service in order to obtain a free or subsidized highly-amplified
phone from the provider. The Commission therefore finds that there is a
greater risk, compared with other forms of TRS, that IP CTS is being
used (with consequent billing of the Fund for the minutes used) by
individuals who do not need the service to communicate in a manner that
is functionally equivalent to communication by conventional voice
telephone users.
17. To address the anticipated near-term impact on the TRS Fund and
to ensure that only those individuals for whom TRS truly was intended
are using this service--and thereby prevent waste of Fund resources--
the Commission finds it necessary and appropriate at this time to
adopt, on an interim basis, a registration and certification
requirement to restrict the use of IP CTS to those who have a hearing
disability that the Commission believes the Act and the Commission's
rules are intended to address. The Commission believes that the exigent
circumstances that now exist require the Commission to take such action
to protect the Fund during the 2012-13 Fund year, and to fulfill
Congress's mandate for this service to be available to eligible persons
who genuinely need it to communicate by telephone in a manner that is
functionally equivalent to telephone use by hearing individuals. The
Commission further believes that the action it takes today is in
accordance with section 225 of the Act's mandate to provide TRS ``to
the extent possible and in the most efficient manner'' to its intended
population. 47 U.S.C. 225(b)(1).
18. In order to ease the burden of compliance, the Commission will
accept a self-certification in those instances in which the user has
either made a significant financial investment in IP CTS equipment or
received that equipment through a governmental program. While there is
no way at this time to pinpoint the precise cost that will most
effectively deter ineligible usage of IP CTS, the Commission believes
that setting a floor of at least $75 in order to qualify for the self-
certification-only option represents a reasonable balancing of
interests. The amount is high enough to affect most consumers'
purchasing decisions, but not so high as to make the purchase of
equipment infeasible. Indeed, a floor of $75 is well below the listed
retail prices for the captioned telephones used with current IP CTS
offerings. The Commission also finds self-certification alone to be
sufficient if the individual obtains free or low-cost equipment from a
governmental program because such programs themselves screen users to
determine their need for IP CTS.
19. The Commission believes that limiting the number of potential
users who need to seek third-party certification in this manner for a
short period while it determines what permanent certification
requirements will best serve the Fund is in the public interest, and
will not place an undue burden on legitimate IP CTS users. As to the
effect of this rule on low-income individuals who may not be able to
afford $75 for IP CTS equipment, those individuals may be able to
obtain IP CTS equipment from state equipment distribution programs, and
in any event may accept free or very low-priced equipment so long as
they obtain a third-party certification. Thus, the Commission believes
that this interim rule is unlikely to prevent those who truly need
access to IP CTS from receiving the service.
20. The Commission therefore adopts an interim rule that requires
each IP
[[Page 8037]]
CTS provider, in order to be eligible for compensation from the TRS
Fund for providing service to new IP CTS users, to register each new IP
CTS user for service and as part of the registration process, to obtain
from each user a self-certification that (1) the user has a hearing
loss that necessitates the use of IP CTS to communicate in a manner
that is functionally equivalent to communication by conventional voice
telephone users, (2) the user understands that the captioning service
is provided by a live CA, and (3) the user understands that the cost of
the IP CTS calls is funded by the TRS Fund. This self-certification
must be made on a form separate from any other user agreement (such as
on a separate page), and requires a separate signature specific to the
self-certification. For the purposes of this requirement, an electronic
signature has the same legal effect as a written signature.
21. Where the consumer accepts IP CTS equipment for less than $75
from any source other than a governmental program, the interim rule
also requires the provider to obtain a certification from an
independent, third-party professional attesting that the user has a
hearing loss that necessitates the use of IP CTS to communicate in a
manner that is functionally equivalent to communication by conventional
voice telephone users. Such third-party professionals must be qualified
to evaluate an individual's hearing loss in accordance with applicable
professional standards, and may include community-based service
providers, hearing related professionals, vocational rehabilitation
counselors, occupational therapists, social workers, educators,
audiologists, speech pathologists, hearing instrument specialists, and
doctors, nurses, and other medical or health professionals. Any such
professionals must certify in writing that the applicant needs IP CTS
to communicate in a manner that is functionally equivalent to
conventional voice telephone service experienced by individuals without
hearing disabilities. In cases where new users have obtained IP CTS
equipment for free or at low cost through a governmental program, the
Commission finds it reasonable for purposes of the interim rules to
permit the provider to rely on documentation demonstrating that the
equipment was obtained through one of these programs, in lieu of
providing an independent, third-party certification. These steps will
protect against registration by individuals who do not need captioning,
but who are registering merely to receive free or very inexpensive
phones. The Commission also requires each IP CTS provider to maintain
the confidentiality of all registration and certification information
obtained by the provider, and to not disclose such registration and
certification information, as well as the content of such information,
except as required by law.
22. Default Captions Off. In addition to adopting measures to
ensure that IP CTS equipment and service is provided to subscribers who
need the service to communicate in a functionally equivalent manner,
the Commission seeks to prevent billing of the TRS Fund for casual or
inadvertent use of IP CTS by other individuals who do not need IP CTS
to communicate by phone, in particular those who may be living in a
subscriber's household or visiting a subscriber's house or office. It
is the Commission's understanding that much of the IP CTS equipment
that is being distributed at this time provides for captions to be
automatically displayed without the need to affirmatively turn the
captions on. As a consequence, the TRS Fund is billed unless the person
using the IP CTS equipment takes affirmative action to turn the
captions off. Further, some equipment is configured such that the user
must go through a two-step process to turn captions off, rather than
having a clear on/off button visible at all times.
23. To avoid misuse of IP CTS, and to ensure that the Fund is used
for functionally equivalent telephone service for people with
disabilities, the Commission is requiring on an interim basis that all
providers ensure that equipment and software used in conjunction with
their IP CTS have captions turned off as the default setting. This is
consistent with actions already taken by a number of states to prevent
similar misuse of PSTN-based CTS. The Commission anticipates that
consumers who are provided with a clear on/off option and an
explanation of how to use it can reasonably be expected to learn to
turn captioning on at the beginning of each call.
24. Further, while taking one or more steps, such as pushing a
button, to receive captions may add a small burden to the process of
using IP CTS, the Commission preliminarily finds that any burden is
outweighed by the substantial public interest in preventing the misuse
of this service. As explained earlier, IP CTS is ``provided in a way
that is automated and invisible to both parties to the call,'' IP CTS
Order, 72 FR 6960, is capable of being used without any interruption in
the normal flow of a voice telephone conversation, and offers certain
features that may attract its use by individuals who may not
necessarily need the service to communicate in a manner that is
functionally equivalent to communication by conventional voice
telephone users. Because of these IP CTS attributes, with a captions-on
setting, the likelihood increases that individuals who do not need IP
CTS may be casually or inadvertently using IP CTS, causing illegitimate
minutes of use to be billed to the Fund.
25. For these same reasons, the Commission also requires, on an
interim basis, that IP CTS equipment not provide consumers the option
of changing the default setting from captions-off to captions-on. At
this time, the Commission likewise does not adopt a proposed exception
to allow a consumer-initiated ``default on'' setting for users that
provide an elevated certification to the effect that: (a) They
understand that the captioning service they enjoy free of charge is
provided by a live CA dedicated to each of their captioned calls, and
reimbursed by the TRS Fund, (b) their device is not accessed by or
easily accessible to ineligible users, and (c) they will not permit the
use of captions on their device by any ineligible persons. Even well-
intentioned users may find it difficult to ensure that there is no
unnecessary use of captioning once it is turned on; by contrast, the
burden on the consumer to simply press a ``captions on'' button or
similar method appears to be minimal. The accompanying NPRM seeks
comment on this proposed exception, as well as a suggestion that the
Commission set standards for connection time after the consumer
activates the captions.
26. In order to afford IP CTS providers an opportunity to make any
software and other changes necessary to implement a captions-off
default setting, the requirements adopted herein will become effective
30 days after their publication in the Federal Register. To the extent
that it is technically infeasible for a particular IP CTS provider to
comply within this 30-day time period for equipment that is already
deployed, the provider may request additional time by seeking a limited
waiver of the effective date, supported by an appropriate good cause
showing.
Effective Date
27. The APA provides that a substantive rule cannot become
effective earlier than 30 days after the required publication or
service of the rule, except ``as otherwise provided by the agency for
good cause found and published with the rule.'' 5 U.S.C. 553(d). See
also Sec. 1.427(a) of the Commission's rules. As
[[Page 8038]]
discussed above, the Commission finds good cause to adopt immediately
interim rules without the opportunity for public comment because the
Commission believes that the imminent harms to the Fund and legitimate
TRS users outweigh the public interest in obtaining comment before such
rules go into effect. The same good cause reasons for adopting
immediately interim rules without the opportunity for public comment
apply to making the rules effective as soon as possible. As noted
above, any delay in making the rules effective would encourage IP CTS
providers, during the period prior to the effective date, to continue
and possibly even accelerate the use of inappropriate incentives to
recruit and sign up new users without first establishing their
eligibility, adding additional uncontrolled growth that could result in
TRS payment obligations exceeding the amount available in the Fund.
Further, the Commission has no reason to believe that IP CTS providers
cannot comply with the rules adopted herein within the prescribed time
periods. There are only four providers currently offering IP CTS, and
the payment of incentives and registration of new users are matters
well within each provider's immediate ability to control.
28. The interim rules adopted in document FCC 13-13 shall cease to
be effective on a common date that is either (1) 180 days after the
effective date for the interim rules on registration and certification,
Sec. 64.604(c)(9) of the Commission's rules, or (2) the effective date
of final rules on these issues, whichever date is sooner. The
Commission will publish a separate document in the Federal Register
announcing the sunset date.
Final Regulatory Flexibility Analysis
29. The Regulatory Flexibility Act (RFA), 5 U.S.C. 603, requires
that an agency prepare a regulatory flexibility analysis for notice-
and-comment rulemaking proceedings, unless the agency certifies that
``the rule will not, if promulgated, have a significant economic impact
on a substantial number of small entities.'' 5 U.S.C. 605(b). The RFA
generally defines ``small entity'' as having the same meaning as the
terms ``small business,'' ``small organization,'' and ``small
governmental jurisdiction.'' 5 U.S.C. 601(6). In addition, the term
``small business'' has the same meaning as the term ``small business
concern'' under the Small Business Act. 5 U.S.C 601(3). A ``small
business concern'' is one which: (1) Is independently owned and
operated; (2) is not dominant in its field of operation; and (3)
satisfies any additional criteria established by the Small Business
Administration (SBA). 15 U.S.C. 632.
30. In document FCC 13-13, in response to an urgent public interest
need to curtail misuse of IP CTS, the Commission adopts interim rules
prohibiting all referrals for rewards programs and any other form of
direct and indirect inducements, financial or otherwise to subscribe or
use or encourage subscription to or use of IP CTS. The Commission also
adopts interim rules requiring each IP CTS provider, in order to be
eligible for compensation from the TRS Fund for providing service to
new IP CTS users, (1) to register each new IP CTS user for service, (2)
as part of the registration process, to obtain from each user a self-
certification that the user has a hearing loss that necessitates IP CTS
to communicate in a manner that is functionally equivalent to
communication by conventional voice telephone users, and (3) where the
consumer accepts IP CTS equipment at a price below $75 from any source
other than a governmental program, to obtain from the user a
certification from an independent, third party professional attesting
to the same. The Commission also requires IP CTS equipment to have a
default setting of captions off at the beginning of each call, so that
the consumer must affirmatively turn on the captions each time the
consumer wishes to use IP CTS.
31. In recent months, IP CTS has been experiencing unusually rapid
growth. The Commission is concerned that usage of this service by
people who may not need the assistance of IP CTS, along with improper
incentives for referrals to use this service are contributing
substantially to this sudden, rapid increase in IP CTS minutes of use.
32. With regard to the criterion of the economic impact of document
FCC 13-13, the Commission concludes that IP CTS providers fit within
the business classification of Wired Telecommunications Carriers. See
NAICS Code 517110 (2007). The closest applicable size standard under
the SBA rules is for Wired Telecommunications Carriers, for which the
small business size standard is all such firms having 1,500 or fewer
employees. 13 CFR 121.201, NAICS Code 517110 (2007). Collectively,
there are four IP CTS providers that are authorized by the Commission
to offer these services. Only one of these entities is a small business
under the SBA size standard. Therefore, the interim rules would not
have a significant economic impact on a substantial number of small
entities.
33. The Commission therefore certifies, pursuant to the RFA, that
the interim rules adopted in document FCC 13-13 will not have a
significant economic impact on a substantial number of small entities.
The Commission will send a copy of document FCC 13-13, including a copy
of the RFA certification, to the Chief Counsel for Advocacy of the SBA.
Congressional Review Act
34. The Commission will send a copy of document FCC 13-13 in a
report to be sent to Congress and the Government Accountability Office
pursuant to the Congressional Review Act. 5 U.S.C. 801(a)(1)(A).
Ordering Clauses
35. Pursuant to sections 1, 2, 4(i) and (j) and 225 of the
Communications Act of 1934, as amended, 47 U.S.C. 151, 152, 154(i) and
(j) and 225, document FCC 13-13 is hereby adopted.
List of Subjects in 47 CFR Part 64
Individuals with disabilities, Reporting and recordkeeping
requirements, Telecommunications.
Federal Communications Commission
Marlene H. Dortch,
Secretary.
Interim Rule Changes
For the reasons discussed in the preamble, the Federal
Communications Commission amends 47 CFR part 64 as follows:
PART 64--MISCELLANEOUS RULES RELATING TO COMMON CARRIERS
0
1. The authority citation to part 64 continues to read as follows:
Authority: 47 U.S.C. 154, 254(k); 403(b)(2)(B), (c), Pub. L.
104-104, 110 Stat. 56. Interpret or apply 47 U.S.C. 201, 218, 222,
225, 226, 227, 228, 254(k), 616, 620, and the Middle Class Tax
Relief and Job Creation Act of 2012, Pub. L. 112-96, unless
otherwise noted.
0
2. Amend Sec. 64.604 by adding paragraphs (c)(8), (9), and (10) to
read as follows:
Sec. 64.604 Mandatory minimum standards.
* * * * *
(c) * * *
(8) Inducements for use of IP CTS. (i) An IP CTS provider shall not
offer or provide to any person or entity any form of direct or indirect
inducements, financial or otherwise, to subscribe to or use or
encourage subscription to or use of IP CTS. IP CTS providers offering
or providing such inducements shall be ineligible for any compensation
for IP CTS from the TRS Fund.
[[Page 8039]]
(ii) [Reserved].
(9) IP CTS registration and certification requirements. (i) IP CTS
providers, in order to be eligible to receive compensation from the TRS
Fund for providing IP CTS to a new consumer, must first register the
new consumer applying for service by obtaining the following
registration information: The consumer's name, address and telephone
number.
(ii) IP CTS providers, in order to be eligible to receive
compensation from the TRS Fund for providing IP CTS to a new consumer,
also must first obtain a written certification attesting that the
consumer needs IP CTS to communicate in a manner that is functionally
equivalent to the ability of a hearing individual to communicate using
voice communications services.
(iii) The certification required by paragraph (c)(9)(ii) of this
section must include the consumer's certification that:
(A) The consumer has a hearing loss that necessitates IP CTS to
communicate in a manner that is functionally equivalent to
communication by conventional voice telephone users;
(B) The consumer understands that the captioning service is
provided by a live communications assistant; and
(C) The consumer understands that the cost of the IP CTS calls is
funded by the TRS Fund.
(iv) The certification required by paragraph (c)(9)(ii) of this
section must be made on a form separate from any other agreement or
form, and must include a separate consumer signature specific to the
certification. For purposes of this rule, an electronic signature,
defined by the Electronic Signatures in Global and National Commerce
Act, 15 U.S.C. 7001 et seq., as an electronic sound, symbol, or
process, attached to or logically associated with a contract or other
record and executed or adopted by a person with the intent to sign the
record, has the same legal effect as a written signature.
(v) In instances where IP CTS equipment is obtained by a new
consumer for less than $75, the IP CTS provider must also, in order to
be eligible to receive compensation from the TRS Fund, obtain written
certification provided and signed by an independent third-party
professional, except as provided in paragraph (c)(9)(v)(D) of this
section .
(A) In instances where certification from an independent third-
party professional is required, such professionals must be qualified to
evaluate an individual's hearing loss in accordance with applicable
professional standards, and may include, but are not limited to,
community-based social service providers, hearing related
professionals, vocational rehabilitation counselors, occupational
therapists, social workers, educators, audiologists, speech
pathologists, hearing instrument specialists, and doctors, nurses, and
other medical or health professionals.
(B) In instances where certification from an independent third-
party professional is required, such third-party professionals must
certify in writing that the IP CTS consumer is an individual with
hearing loss who needs IP CTS to communicate in a manner that is
functionally equivalent to telephone service experienced by individuals
without hearing disabilities.
(C) In instances where certification from an independent third-
party professional is required, such third-party professional must
provide his or her name, title, and contact information, including
address, telephone number, and email address.
(D) In instances where the new consumer has obtained equipment from
a governmental program, the new consumer may present documentation to
the IP CTS provider demonstrating that the equipment was obtained
through one of these programs, in lieu of providing an independent,
third-party certification.
(vi) Each IP CTS provider shall maintain the confidentiality of any
registration and certification information obtained by the provider,
and may not disclose such registration and certification information or
the content of such registration and certification information except
as required by law or regulation.
(vii) [Reserved].
(10) IP CTS default settings. (i) IP CTS providers must ensure that
equipment and software used in conjunction with their service have a
default setting of captions off, so that new and existing IP CTS users
must affirmatively turn on captioning for each telephone call initiated
or received before captioning is provided.
(ii) [Reserved].
[FR Doc. 2013-02369 Filed 2-1-13; 4:15 pm]
BILLING CODE 6712-01-P