Rules and Regulations Implementing the Telephone Consumer Protection Act of 1991, 31889-31895 [2016-12025]
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Federal Register / Vol. 81, No. 98 / Friday, May 20, 2016 / Proposed Rules
safety risks subject to Executive Order
13045 (62 FR 19885, April 23, 1997);
• is not a significant regulatory action
subject to Executive Order 13211 (66 FR
28355, May 22, 2001);
• is not subject to requirements of
Section 12(d) of the National
Technology Transfer and Advancement
Act of 1995 (15 U.S.C. 272 note) because
application of those requirements would
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• does not provide EPA with the
discretionary authority to address, as
appropriate, disproportionate human
health or environmental effects, using
practicable and legally permissible
methods, under Executive Order 12898
(59 FR 7629, February 16, 1994).
In addition, this proposed rule,
pertaining to the regulations and
requirements for the control of
emissions from various processes and
fuel-burning equipment from Kraft pulp
mills, does not have tribal implications
as specified by Executive Order 13175
(65 FR 67249, November 9, 2000),
because the SIP is not approved to apply
in Indian country located in the state,
and EPA notes that it will not impose
substantial direct costs on tribal
governments or preempt tribal law.
List of Subjects in 40 CFR Part 52
Environmental protection, Air
pollution control, Incorporation by
reference, Nitrogen dioxide, Ozone,
Reporting and recordkeeping
requirements, Volatile organic
compounds.
Authority: 42 U.S.C. 7401 et seq.
Dated: May 3, 2016.
Shawn M. Garvin,
Regional Administrator, Region III.
[FR Doc. 2016–11844 Filed 5–19–16; 8:45 am]
BILLING CODE 6560–50–P
FEDERAL COMMUNICATIONS
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47 CFR Part 64
[CG Docket No. 02–278; FCC 16–57]
Rules and Regulations Implementing
the Telephone Consumer Protection
Act of 1991
Federal Communications
Commission.
ACTION: Proposed rule.
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AGENCY:
In this document, the Federal
Communications Commission
(Commission) invites comment on
proposed revisions to its rules under the
Telephone Consumer Protection Act
(TCPA) to implement a provision of the
Bipartisan Budget Act of 2015 that
SUMMARY:
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excepts from the TCPA’s prior-expressconsent requirement autodialed and
prerecorded calls ‘‘made solely to
collect a debt owed to or guaranteed by
the United States.’’
DATES: Comments are due on or before
June 6, 2016. Reply comments are due
on or before June 21, 2016.
ADDRESSES: You may submit comments
identified by CG Docket No. 02–278 by
any of the following methods:
• Electronic Filers: Comments may be
filed electronically using the Internet by
accessing the Commission’s Electronic
Comment Filing System (ECFS), through
the Commission’s Web site: https://
apps.fcc.gov/ecfs/. Filers should follow
the instructions provided on the Web
site for submitting comments. For ECFS
filers, in completing the transmittal
screen, filers should include their full
name, U.S. Postal service mailing
address, and CG Docket No. 02–278.
• Paper Filers: Parties who choose to
file by paper must file an original and
one copy of each filing. Filings can be
sent by hand or messenger delivery, by
commercial overnight courier, or by
first-class or overnight U.S. Postal
Service mail (although the Commission
continues to experience delays in
receiving U.S. Postal Service mail). All
filings must be addressed to the
Commission’s Secretary, Office of the
Secretary, Federal Communications
Commission.
For detailed instructions for
submitting comments and additional
information on the rulemaking process,
see the SUPPLEMENTARY INFORMATION
section of this document.
FOR FURTHER INFORMATION CONTACT:
Kristi Thornton, Consumer Policy
Division, Consumer and Governmental
Affairs Bureau, Federal
Communications Commission, 445 12th
Street SW., Washington, DC 20554 by
phone at (202) 418–2467 or by email at:
Kristi.Thornton@fcc.gov.
SUPPLEMENTARY INFORMATION: This is a
summary of the Commission’s Notice of
Proposed Rulemaking (NPRM), Rules
and Regulations Implementing the
TCPA of 1991, CG Docket No. 02–278,
FCC 16–57, adopted May 24, 2016, and
released May 6, 2016. A copy of
document FCC 16–57 and any
subsequently filed documents in this
matter will be available during regular
business hours at the FCC Reference
Center, Portals II, 445 12th Street SW.,
Room CY–A257, Washington, DC 20554,
(202) 418–0270. The full text of
document FCC 16–57 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.,
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31889
Room CY–A257, Washington, DC 20554.
A copy of document FCC 16–57 and any
subsequently filed documents in this
matter may also be found by searching
ECFS at: https://apps.fcc.gov/ecfs/ (insert
CG Docket No. 02–278 into the
Proceeding block).
Pursuant to 47 CFR 1.415, 1.419,
interested parties may file comments
and reply comments on or before the
dates indicated on the first page of this
document. Comments may be filed
using ECFS. See Electronic Filing of
Documents in Rulemaking Proceedings,
63 FR 24121 (1998).
• All hand-delivered or messengerdelivered paper filings for the
Commission’s Secretary must be
delivered to FCC Headquarters at 445
12th Street SW., Room TW–A325,
Washington, DC 20554. All hand
deliveries must be held together with
rubber bands or fasteners. Any
envelopes must be disposed of before
entering the building.
• Commercial Mail sent by overnight
mail (other than U.S. Postal Service
Express Mail and Priority Mail) must be
sent to 9300 East Hampton Drive,
Capitol Heights, MD 20743.
• U.S. Postal Service first-class,
Express, and Priority mail should be
addressed to 445 12th Street SW.,
Washington, DC 20554.
Pursuant to § 1.1200 of the
Commission’s rules, 47 CFR 1.1200, this
matter shall be treated as a ‘‘permit-butdisclose’’ proceeding in accordance
with the Commission’s ex parte rules.
Persons making oral ex parte
presentations are reminded that
memoranda summarizing the
presentations must contain summaries
of the substances of the presentations
and not merely a listing of the subjects
discussed. More than a one or two
sentence description of the views and
arguments presented is generally
required. See 47 CFR 1.1206(b). Other
rules pertaining to oral and written ex
parte presentations in permit-butdisclose proceedings are set forth in
§ 1.1206(b) of the Commission’s rules,
47 CFR 1.1206(b).
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). Document FCC 16–57 can also be
downloaded in Word or Portable
Document Format (PDF) at: https://
www.fcc.gov/cgb/policy.
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Federal Register / Vol. 81, No. 98 / Friday, May 20, 2016 / Proposed Rules
Initial Paperwork Reduction Act of
1995 Analysis
Document FCC 16–57 seeks comment
on proposed rule amendments that may
result in modified information
collection requirements. If the
Commission adopts any modified
information collection requirements, the
Commission will publish another notice
in the Federal Register inviting the
public to comment on the requirements,
as required by the Paperwork Reduction
Act. Public Law 104–13; 44 U.S.C.
3501–3520. In addition, pursuant to the
Small Business Paperwork Relief Act of
2002, the Commission seeks comment
on how it might further reduce the
information collection burden for small
business concerns with fewer than 25
employees. Public Law 107–198; 44
U.S.C. 3506(c)(4).
Synopsis of the Notice of Proposed
Rulemaking
1. In the NPRM, the Commission
seeks comment on implementation of
the Bipartisan Budget Act of 2015
(Budget Act) amendments. Among other
things, the Commission seeks comment
on a number of implementation
questions, such as which calls are
covered by the phrase ‘‘solely to
collect,’’ how it should restrict the
number and duration of such calls, and
how to implement such restrictions.
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Background
A. Covered Calls
2. At what point is a call to collect a
debt a covered call? The Commission
turns first to the phrase ‘‘solely to
collect a debt’’ and seeks comment
regarding the parameters of that phrase,
including how the Commission should
interpret ‘‘solely’’ and ‘‘collect.’’ The
Commission’s proposal, to ensure that
debtors do not receive non-consent calls
before failing to make a timely payment,
is to interpret ‘‘solely to collect a debt’’
to mean only those calls made to obtain
payment after the borrower is
delinquent on a payment. The
Commission seeks comment on this
proposal, including how the
Commission should interpret
‘‘delinquent’’ for these purposes, and
any alternative approaches. The
Commission also seeks comment on the
alternative that covered calls may only
be made after the debtor is in default,
how the Commission should define
‘‘default,’’ and whether it should
distinguish between default caused by
non-payment and a default resulting
from a different cause under the terms
of the debt instrument.
3. Are debt servicing calls covered?
The Commission notes that debt
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servicing calls may provide a valuable
service by offering information about
options and programs designed to keep
at-risk debtors from defaulting or
becoming delinquent on their loans.
Helping a debtor avoid delinquency or
default can preserve the person’s
payment history and credit rating, and
help maintain eligibility for future
loans. The potential value of these debt
servicing calls, and the probability that
servicing calls will create conditions for
debtors that allow debts to be more
readily collected by the United States,
leads the Commission to propose that
servicing calls should be included in
covered calls. The Commission seeks
comment on this proposal and, if
adopted, how to ensure it does not
result in the types of calls consumers
would not want, such as marketing
calls. The Commission seeks comment
on what initiating event should enable
a creditor or entity acting on a creditor’s
behalf to begin making covered calls to
convey debt servicing information. Its
proposal, above, is that covered calls
begin when a borrower is delinquent on
a payment; should delinquency also be
the initiating event for debt servicing
calls, or should some other event trigger
a caller’s ability to make servicing calls
under the exception? What should the
trigger event be?
4. The Commission seeks comment on
the definition of ‘‘servicing’’ that should
guide its analysis in this regard. Should
servicing calls include calls informing
debtors how to reduce payment
amounts; consolidate, modify, or
restructure loans; change payment
dates; or other matters indirectly related
to seeking payment? The Commission
proposes that permissible ‘‘servicing’’
calls only refer to calls made by the
creditor and those entities acting on
behalf of the creditor. The Commission
seeks comment on this proposal.
5. ‘‘Owed to or guaranteed by the
United States.’’ The Commission seeks
comment on the meaning of the phrase
‘‘a debt owed to or guaranteed by the
United States.’’ What is a debt ‘‘owed
to’’ the United States and a debt
‘‘guaranteed by’’ the United States? Does
the phrase ‘‘owed to or guaranteed by’’
include debts insured by the United
States? Should the Commission look to
or adopt the definition of ‘‘debt’’ in the
DCIA? Why or why not?
6. The Commission also seeks
comment on whether there are any
circumstances under which a party
other than the federal government
obtains a pecuniary interest in a debt
such that the debt should no longer be
considered to be ‘‘owed to . . . the
United States.’’ Basic contract principles
dictate that when an owner sells an
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item, it no longer belongs to the original
owner, but to the purchaser. Likewise,
the purchaser of a debt is owed the
repayment obligation, not the prior
obligee. For example, would a debt still
be ‘‘owed to . . . the United States’’ if
the right to repayment is transferred in
whole or part to anyone other than the
United States, or a collection agency
collects the funds and then remits to the
federal government a percentage of the
amount collected? Are there specific
types of debts that are covered or not
covered by the phrase ‘‘debt owed to or
guaranteed by the United States,’’ such
as federal student loans, Small Business
Administration loans, and federally
guaranteed mortgages? Are there any
other factors the Commission should
consider in determining which types of
debts should be included or excluded
from this phrase for purposes of
implementing the Budget Act
amendments to the TCPA? If so, what
are those factors? Consistent with the
focus of the amended statutory language
on debts ‘‘owed to or guaranteed by the
United States,’’ should the Commission
also require that the content of covered
calls be limited to such debts, and that
such calls not be permitted to include
content concerning other debts or
matters about which the caller may
want to speak with the debtor?
Similarly, can the Commission and
should the Commission place any limits
on a covered caller using or transferring
(such as by sale) information (such as
the debtor’s location or phone number)
obtained during covered calls in order
to collect other debts or to address other
matters?
7. Who can be called? The
Commission seeks comment on the
person or persons to whom covered
calls may be made. The Commission
believes the most reasonable way to
read the phrase ‘‘solely to collect a
debt’’ is to include only calls to the
person or persons obligated to pay the
debt because it appears impossible that
calls to non-debtors by their nature
would directly result in collection from
the debtor. The Commission believes
this approach will ensure that a debtor’s
family, friends, and other acquaintances
will not be subject to non-consent
robocalls seeking information about the
debtor. The Commission seeks comment
on this proposal and the related
question of whether it should limit
covered calls to the cellular telephone
number the debtor provided to the
creditor, e.g., on a loan application.
8. The Commission seeks comment on
whether calls to persons the caller does
not intend to reach, that is persons
whom the caller might believe to be the
debtor but is not, are covered by the
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Federal Register / Vol. 81, No. 98 / Friday, May 20, 2016 / Proposed Rules
exception. Parties seeking debtors’
current telephone numbers often use
techniques such as skip tracing, which
are not guaranteed to identify the
debtor. The Commission proposes to
exclude such calls from the exception to
encourage callers to avoid robocalling
unwitting individuals who have no
connection to the debtor. Similarly, and
consistent with its recent robocalls
decision, the Commission proposes that
calls to a wireless number a debtor
provided to a creditor, but which has
been reassigned unbeknownst to the
caller, are not covered by the exception,
but have the same one-call window the
Commission has found to constitute a
reasonable opportunity to learn of
reassignment. The Commission seeks
comment on its proposals and any
alternatives.
9. Who may call? The Commission
next seeks comment on who may make
the covered calls at issue. As amended,
the relevant portion of the TCPA reads:
‘‘It shall be unlawful for any person . . .
to make any call . . . using any
[autodialer] or an artificial or
prerecorded voice to any [wireless
number] unless such call is made solely
to collect a debt owed to or guaranteed
by the United States.’’ This provision is
not clear as to who may make calls
covered by the exception. The
Commission believes the most
reasonable way to interpret this
language is to include calls made by
creditors and those calling on their
behalf, including their agents. Is there a
limiting principle to determining who
should be deemed to be acting on behalf
of the creditor? The Commission seeks
comment on its interpretation and
whether it should interpret the statute to
include other callers and, if so, who.
Alternatively, should the Commission
interpret the statute to apply more
narrowly to only the creditor or to the
creditor and its agents acting within the
actual scope of their authority?
10. The Commission notes that
petitions pending before the
Commission seek clarification regarding
the meaning of ‘‘person’’ and whether
the federal government or its agents are
persons for purposes of the TCPA,
among other things. The Commission
seeks comment on whether the Budget
Act amendments imply that the federal
government is a person for TCPA
purposes and whether the Commission
must resolve these questions in order to
complete this rulemaking. The
Commission also seeks comment on
whether and, if so, how the Supreme
Court’s recent decision in CampbellEwald Co. v. Gomez should inform the
implementation of the Budget Act
amendments to the TCPA.
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B. Limits on Number and Duration of
Covered Calls
11. Need for restrictions. In
considering the need for restrictions on
covered calls, the Commission notes the
volume of consumer complaints, as set
forth above. These factors, along with
Congress’ explicit statement that the
Commission ‘‘shall prescribe regulations
to implement the amendments made
by’’ the Budget Act, and Congress’
authorization that the Commission
‘‘may restrict or limit the number and
duration of calls made to a telephone
number assigned to a cellular telephone
service to collect a debt owed to or
guaranteed by the United States,’’ lead
the Commission to propose that it does
so here. The Commission seeks
comment on its proposal and on what
types of number and duration
restrictions it should adopt for the
covered calls. Apart from its specific
proposals and questions below, the
Commission seeks comment generally
on what other actions it should consider
to reduce unwanted debt collection
robocalls to consumers.
12. If adopted, the nature of
restrictions. The Commission seeks
comment on how it should restrict or
limit the number and duration of
covered calls, including both collection
calls and debt servicing calls. Consistent
with the conditions the Commission has
adopted when granting exemptions to
permit certain free-to-end-user robocalls
to be made without consent of the called
party, and regardless of whether the
caller leaves a prerecorded or artificialvoice message or whether the call is an
autodialed call resulting in a live
conversation, the Commission proposes
to restrict the number of covered calls
to three per month, per delinquency
only after delinquency. The
Commission believes three calls per
month provides an adequate
opportunity to convey necessary
information about the debt, repayment,
and other matters the caller wishes to
communicate without the consent of the
called party and, in any case, affords
callers an opportunity to obtain the
debtor’s consent to make additional
calls beyond any limit the Commission
adopts. The Commission proposes that
the limit on the number of calls should
be for any initiated calls, even if
unanswered by a person, because many
consumers may choose not to answer
calls from unfamiliar numbers. These
limits would apply to autodialed,
prerecorded, or artificial voice calls to
wireless numbers. In the case of
autodialed calls, the limits apply
whether they use a prerecorded or
artificial voice or instead attempt to
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connect the called debtor with a live
agent. The Commission sees potential
value, however, in debtors hearing from
a live agent to discuss the debt and
potential servicing options and seeks
comment on whether and how it should
encourage that approach. The
Commission seeks comment on these
proposals. The Commission also seeks
comment on the maximum duration of
a voice call, and whether the
Commission should adopt different
duration limits for prerecorded- or
artificial-voice calls than for autodialed
calls with a live caller. Should there be
a limit on the length of text messages?
What should that limit be? The
Commission also seeks comment on
how to count debt servicing calls for
purposes of the proposed three-call
limit per month or any other limit on
the number of calls.
13. Should the Commission look to
other standards or precedents for
guidance? For example, should the
Commission restrict calls to the hours of
8:00 a.m. to 9:00 p.m. (local time at the
called party’s location), similar to the
rule that now applies to telemarketing
calls? Should the Commission consider
any limits on the number of calls
pursuant to the Fair Debt Collection
Practices Act if it adopts such limits
here? How should the Commission take
account of any limits adopted by the
Consumer Financial Protection Bureau?
Are there other standards or precedents,
including restrictions that might exist
under either federal or state debt
collection laws, the Commission should
consider? Are calls covered by the
Budget Act exception subject to other
laws and rules that more generally
govern debt collection and, if so, how
should the Commission harmonize any
overlapping requirements?
14. Consumer ability to stop covered
calls. The Commission has determined
that an ability to stop unwanted calls is
critical to the TCPA’s goal of consumer
protection. That right may be more
important here, where consumers need
not consent to the calls in advance in
order for a caller to make the calls. The
Commission proposes, therefore, that
consumers should have a right to stop
such calls at any point the consumer
wishes. The Commission seeks
comment on its proposal. For example,
does the amended law allow the
Commission to require that a caller limit
covered calls to the first of (1) a specific
number (perhaps within a set period of
time) or (2) until the consumer says
‘‘stop’’? The Commission proposes that
stop-calling requests should apply to a
subsequent collector of the same debt.
The Commission seeks comment on this
proposal and how it might ensure that
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a request to stop such calls be honored
if later transferred to other collectors.
Should the Commission require that
callers making covered calls record any
request to stop calling and provide a
record of such a request to subsequent
callers along with other information
about the debt?
15. The Commission also proposes, so
that consumers fully understand any
right it adopts to stop calls, to require
callers to inform debtors of their right to
make such a request. The Commission
seeks comment on this proposal and on
when and how callers should provide
such notice. For example, should the
permissible ways to opt out of further
calls under the TCPA—i.e., any
reasonable method, including orally or
in response to a text message—apply
here? Should the Commission require
callers making artificial- or prerecordedvoice calls to include an automated,
interactive voice- and/or key pressactivated opt-out mechanism for
stopping future excepted calls?
C. Other Implementation Issues
16. Covered Calls to Residential Lines.
The Commission noted that under its
current rules, artificial- or prerecordedvoice calls to residential lines that are
made for the purpose of collecting a
debt are currently not subject to the
prior express consent requirement.
Although the TCPA allows for broad
application of the prior express consent
requirement to all non-emergency
artificial- and prerecorded-voice calls to
residential lines, the Commission has
exercised its statutory exemption
authority so as to apply the consent
requirement only to calls that include or
introduce an advertisement or constitute
telemarketing. The Commission has also
found that debt collection calls do not
constitute telemarketing. Accordingly,
the consent exception under the Budget
Act currently does not appear to affect
whether artificial- or prerecorded-voice
calls to residential lines for the purpose
of collecting a covered debt require
prior express consent.
17. The Commission nonetheless
proposes to revise its rule concerning
artificial- or prerecorded-voice calls to
residential lines to reflect the exception
contained in the Budget Act. The
Commission does not believe, however,
that it is necessary at the present time
to determine the exact contours of the
statutory exception for covered calls to
residential lines, including, for example,
determining the specific impact of the
somewhat different language in the
Budget Act amendments with regard to
covered calls to residential lines and to
wireless numbers. The Commission
seeks comment on these views, and on
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whether it should consider any
additional issues concerning covered
calls. For example, should any limits on
the number and duration of covered
calls also apply to covered calls to
residential lines, even though such calls
would not have required prior express
consent even before the Budget Act
amendments to the TCPA?
18. Restrictions on Calls to Cellular
Telephone Service. Congress authorized
the Commission to ‘‘restrict or limit the
number and duration of calls made to a
telephone number assigned to a cellular
telephone service to collect a debt owed
to or guaranteed by the United States.’’
Yet, the amendment to the TCPA,
authorizing calls made to collect a debt
owed to or guaranteed by the United
States, is broader, applying to ‘‘any
telephone number assigned to a paging
service, cellular telephone service,
specialized mobile radio service, or
other radio common carrier service, or
any service for which the called party is
charged for the call.’’ Considering the
identical language in the prior
delegation of authority in 47 U.S.C.
227(b)(2)(C), the Commission proposes
that Congress delegated the Commission
authority to limit the number and
duration of all calls made pursuant to
the debt collection exception in 47
U.S.C. 227(b)(1)(A)(iii).
19. Congress, in granting the
Commission authority to limit the
number and duration of calls, used
identical language to the language it
used in the separate delegation of
authority in 47 U.S.C. 227(b)(2)(C). The
identical language in these two
delegations of authority indicates that
Congress intended the two provisions to
apply to the same services.
20. The Commission has interpreted
47 U.S.C. 227(b)(2)(C) to apply to all
services mentioned in 47 U.S.C.
227(b)(1)(A)(iii). In so doing, it has
interpreted ‘‘cellular telephone service’’
by asking whether services are
functionally equivalent from the
consumer perspective rather than on
technical or regulatory differences, such
as which spectrum block is used to
provide the service. This avoids, for
example, consumers receiving wireless
voice service from being treated
differently depending on which
spectrum block their carriers use and
callers having to determine which
spectrum block is used for a particular
consumer’s service in order to know
which requirements apply.
21. Applying the canon of statutory
construction that Congress knows the
law, including relevant agency
interpretations, at the time it adopts a
statute, the Commission presumes that
Congress knew of the Commission’s
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interpretation of this key language.
Congress used the same language in the
recent delegation of authority without
taking any action to alter the
Commission’s interpretation of identical
language elsewhere in the same statute.
The Commission therefore proposes that
the authority delegated to it in the new
47 U.S.C. 227(b)(2)(H) added by the
Budget Act applies to all services to
which amended 47 U.S.C.
227(b)(1)(A)(iii) applies. The
Commission seeks comment on this
proposal.
22. Application of Other TCPA
Restrictions to Covered Calls. The
Commission believes the most
reasonable interpretation is that calls
must be in compliance with all other
legal requirements—for example, the
requirement that artificial- or
prerecorded-voice calls contain certain
identifying information—in order for
the Budget Act consent exception to
apply. The Commission seeks comment
on this proposal, as well as on whether
and how compliance with other legal
requirements should affect the
application of the Budget Act exception.
Initial Regulatory Flexibility Analysis
23. As required by the Regulatory
Flexibility Act of 1980, as amended,
(RFA), the Commission has prepared
this Initial Regulatory Flexibility
Analysis (IRFA) of the possible
significant economic impact on a
substantial number of small entities by
the policies and rules proposed in the
NPRM. Written public comments are
requested on the IRFA. Comments must
be identified as responses to the IRFA
and must be filed by the deadlines for
comments on the NPRM provided on
the first page of this document. The
Commission will send a copy of the
NPRM, including the IRFA, to the Chief
Counsel for Advocacy of the Small
Business Administration.
A. Need for, and Objectives of, the
Proposed Rules
24. The NPRM contains proposals
regarding how to modify the
Commission’s rules to align them with
the amended statutory language of the
TCPA enacted by Congress in the
Bipartisan Budget Act of 2015 (Budget
Act). The NPRM seeks comment
generally on all entities that make
autodialed or prerecorded- or artificialvoice calls to collect debts owed to or
guaranteed by the United States. The
NPRM seeks comment on covered calls.
Specifically, the Commission seeks
comment on the parameters of the
phrase ‘‘solely to collect a debt.’’ The
Commission seeks comment on whether
debt servicing calls are covered. The
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Commission seeks comment on the
meaning of the phrase ‘‘owed to or
guaranteed by the United States,’’
including the applicability of the
exception to debt insured by or
purchased from the United States. The
Commission seeks comment on the
person or persons to whom covered
calls can be made and it seeks comment
on who is entitled to make calls under
the exception Congress created in the
Budget Act.
25. The NPRM seeks comment on
limits on the number and duration of
covered calls. Specifically, the
Commission seeks comment on the need
for restrictions on covered calls,
including types of number and duration
restrictions. The Commission seeks
comment on the nature of the
restrictions, if adopted, including
looking to other standards or precedents
for guidance. The Commission seeks
comment on the consumer’s ability to
stop covered calls.
26. The NPRM seeks comment on
other implementation issues.
Specifically, the Commission seeks
comment on the applicably of the
exception to residential lines. The
Commission seeks comment on whether
the authority delegated to it in the new
47 U.S.C. 227(b)(2)(H) added by the
Budget Act applies to all services to
which amended 47 U.S.C.
227(b)(1)(A)(iii) applies. The
Commission seeks comment on the
application of other TCPA restrictions to
covered calls. The Commission’s
underlying concern is to protect small
businesses by giving them ample
opportunity to comment on the
proposed rules under consideration.
27. The Commission’s rules restricting
the use of automated telephone dialing
equipment and artificial or prerecorded
voice to call wireless numbers apply to
a wide range of entities, including all
entities that make such calls or texts to
wireless telephone numbers to collect
debts owed to or guaranteed by the
federal government. Thus, the
Commission expects that the proposals
in this proceeding could have a
significant economic impact on a
substantial number of small entities in
a wide range of categories.
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B. Legal Basis
28. The proposed and anticipated
rules are authorized under sections 1–4,
201(b), 227, and 303(r) of the
Communications Act of 1934, as
amended, 47 U.S.C. 151–154, 201(b),
227, 303(r); and the Bipartisan Budget
Act of 2015, Public Law 114–74, 129
Stat. 584.
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C. Description and Estimate of the
Number of Small Entities to Which the
Proposed Rules Will Apply
29. The RFA directs agencies to
provide a description of, and where
feasible, an estimate of the number of
small entities that will be affected by the
proposed rules, if adopted. The RFA
generally defines the term ‘‘small
entity’’ as having the same meaning as
the terms ‘‘small business,’’ ‘‘small
organization,’’ and ‘‘small governmental
jurisdiction.’’ In addition, the term
‘‘small business’’ has the same meaning
as the term ‘‘small business concern’’
under the Small Business Act. Under
the Small Business Act, a ‘‘small
business concern’’ is one that: (1) Is
independently owned and operated; (2)
is not dominant in its field of operation;
and (3) meets any additional criteria
established by the Small Business
Administration (SBA).
30. Collection Agencies. This industry
comprises establishments primarily
engaged in collecting payments for
claims and remitting payments collected
to their clients. The SBA has
determined that Collection Agencies
with $15 million or less in annual
receipts qualify as small businesses.
Census data for 2007 indicate that 4,532
establishments in this category operated
throughout that year. Of those, 4,288
establishments operated with annual
receipts of less than $10 million. The
Commission concludes that a
substantial majority of businesses in this
category are small under the SBA
standard.
31. Telemarketing Bureaus and Other
Contact Centers. This U.S. industry
comprises establishments primarily
engaged in operating call centers that
initiate or receive communications for
others—via telephone, facsimile, email,
or other communication modes—for
purposes such as (1) promoting clients
products or services, (2) taking orders
for clients, (3) soliciting contributions
for a client, and (4) providing
information or assistance regarding a
client’s products or services. The SBA
has determined that Telemarketing
Bureaus and other Contact Centers with
$15 million or less in annual receipts
qualify as small businesses. U.S. Census
data for 2007 indicate that 2,100 firms
in this category operated throughout
that year. Of those, 1,909 operated with
annual receipts of less than $10 million.
The Commission concludes that a
substantial majority of businesses in this
category are small under the SBA
standard.
32. Commercial Banks and Savings
Institutions. Commercial banks are
establishments primarily engaged in
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31893
accepting demand and other deposits
and making commercial, industrial, and
consumer loans. Commercial banks and
branches of foreign banks are included
in this industry. Savings institutions are
establishments primarily engaged in
accepting time deposits, making
mortgage and real estate loans, and
investing in high-grade securities.
Savings and loan associations and
savings banks are included in this
industry. The SBA has determined that
Commercial Banks and Savings
Institutions with $500 million or less in
assets qualify as small businesses.
December 2013 Call Report data
compiled by SNL Financial indicate that
6,877 firms in this category operated
throughout that year. Of those, 5,533
qualify as small entities. Based on this
data, the Commission concludes that a
substantial number of businesses in this
category are small under the SBA
standard.
33. Credit Unions. This industry
comprises establishments primarily
engaged in accepting members’ share
deposits in cooperatives that are
organized to offer consumer loans to
their members. The SBA has determined
that Credit Unions with $500 million or
less in assets qualify as small
businesses. The December 2013
National Credit Union Administration
Call Report data indicate that 6,687
firms in this category operated
throughout that year. Of those, 6,252
qualify as small entities. Based on this
data, the Commission concludes that a
substantial number of businesses in this
category are small under the SBA
standard.
34. Other Depository Credit
Intermediation. This industry comprises
establishments primarily engaged in
accepting deposits and lending funds
(except commercial banking, savings
institutions, and credit unions).
Establishments known as industrial
banks or Morris Plans and primarily
engaged in accepting deposits, and
private banks (i.e., unincorporated
banks) are included in this industry.
The SBA has determined that Other
Depository Credit Intermediation
entities with $500 million or less in
assets qualify as small businesses.
Census data for 2007 indicate that 29
firms in this category operated
throughout that year. Due to the nature
of this category, the Commission
concludes that a substantial number of
businesses in this category are small
under the SBA standard.
35. Sales Financing. This industry
comprises establishments primarily
engaged in sales financing or sales
financing in combination with leasing.
Sales financing establishments are
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primarily engaged in lending money for
the purpose of providing collateralized
goods through a contractual installment
sales agreement, either directly from or
through arrangements with dealers. The
SBA has determined that Sales
Financing entities with $7 million or
less in annual receipts qualify as small
businesses. Census data for 2007
indicate that 2,267 firms in this category
operated throughout that year. Of those,
1,806 operated with annual receipts of
less than $5 million. The Commission
concludes that a substantial majority of
businesses in this category are small
under the SBA standard.
36. Consumer Lending. This U.S.
industry comprises establishments
primarily engaged in making unsecured
cash loans to consumers. The SBA has
determined that Consumer Lending
entities with $7 million or less in
annual receipts qualify as small
businesses. Census data for 2007
indicate that 3,234 firms in this category
operated throughout that year. Of those,
2,969 operated with annual receipts of
less than $5 million. The Commission
concludes that a substantial majority of
businesses in this category are small
under the SBA standard.
37. Real Estate Credit. This U.S.
industry comprises establishments
primarily engaged in lending funds with
real estate as collateral. The SBA has
determined that Real Estate Credit
entities with $7 million or less in
annual receipts qualify as small
businesses. Census data for 2007
indicate that 5,791 firms in this category
operated throughout that year. Of those,
5,036 operated with annual receipts of
less than $5 million. The Commission
concludes that a substantial majority of
businesses in this category are small
under the SBA standard.
38. International Trade Financing.
This U.S. industry comprises
establishments primarily engaged in
providing one or more of the following:
(1) working capital funds to U.S.
exporters; (2) lending funds to foreign
buyers of U.S. goods; and/or (3) lending
funds to domestic buyers of imported
goods. The SBA has determined that
International Trade Financing entities
with $38.5 million or less in annual
receipts qualify as small businesses.
Census data for 2007 indicate that 125
firms in this category operated
throughout that year. Of those, 118
operated with annual receipts of less
than $25 million. The Commission
concludes that a substantial majority of
businesses in this category are small
under the SBA standard.
39. Secondary Market Financing. This
U.S. industry comprises establishments
primarily engaged in buying, pooling,
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and repackaging loans for sale to others
on the secondary market. The SBA has
determined that Secondary Market
Financing entities with $7 million or
less in annual receipts qualify as small
businesses. Census data for 2007
indicate that 105 firms in this category
operated throughout that year. Of those,
74 operated with annual receipts of less
than $5 million. The Commission
concludes that a substantial majority of
businesses in this category are small
under the SBA standard.
40. All Other Nondepository Credit
Intermediation. This U.S. industry
comprises establishments primarily
engaged in providing nondepository
credit (except credit card issuing, sales
financing, consumer lending, real estate
credit, international trade financing, and
secondary market financing). Examples
of types of lending in this industry are:
short-term inventory credit, agricultural
lending (except real estate and sales
financing), and consumer cash lending
secured by personal property. The SBA
has determined that All Other
Nondepository Credit Intermediation
entities with $38.5 million or less in
annual receipts qualify as small
businesses. Census data for 2007
indicate that 4,590 firms in this category
operated throughout that year. Of those,
4,494 operated with annual receipts of
less than $25 million. The Commission
concludes that a substantial majority of
businesses in this category are small
under the SBA standard.
41. Mortgage and Nonmortgage Loan
Brokers. This industry comprises
establishments primarily engaged in
arranging loans by bringing borrowers
and lenders together on a commission or
fee basis. The SBA has determined that
Mortgage and Nonmortgage Loan
Brokers with $7 million or less in
annual receipts qualify as small
businesses. Census data for 2007
indicate that 17,702 firms in this
category operated throughout that year.
Of those, 17,393 operated with annual
receipts of less than $5 million. The
Commission concludes that a
substantial majority of businesses in this
category are small under the SBA
standard.
42. Other Activities Related to Credit
Intermediation. This industry comprises
establishments primarily engaged in
facilitating credit intermediation (except
mortgage and loan brokerage; and
financial transactions processing,
reserve, and clearinghouse activities).
The SBA has determined that Other
Activities Related to Credit
Intermediation entities with $7 million
or less in annual receipts qualify as
small businesses. Census data for 2007
indicate that 5,494 firms in this category
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operated throughout that year. Of those,
5,277 operated with annual receipts of
less than $5 million. The Commission
concludes that a substantial majority of
businesses in this category are small
under the SBA standard.
D. Description of Projected Reporting,
Recordkeeping, and Other Compliance
Requirements
43. Under the current rules, all
artificial or prerecorded voice calls to a
wireless telephone number are
prohibited without prior express
consent. The NPRM contains proposals
regarding how to modify the
Commission’s rules to align them with
the amended statutory language of the
TCPA enacted by Congress in the
Budget Act, creating an exception that
allows calls to wireless telephones made
solely pursuant to the collection of a
debt owed to or guaranteed by the
United States.
44. The proposals under
consideration could result in additional
costs to regulated entities. If the
Commission imposes restrictions on the
number and duration of calls to wireless
numbers as proposed for comment in
the NPRM, then calling entities might
incur some additional costs in tracking
that information. For example, calling
entities might need to modify software,
develop tracking procedures, and train
staff in order to keep within the
restrictions on the number and duration
of calls to wireless numbers. However,
some calling entities may already track
calls and call durations, and therefore,
no additional compliance efforts would
be required. Calling entities may also be
relieved of tracking the consent of the
called party, which could offset any
new burdens.
45. If the Commission determines that
a called party may stop future calls
concerning collection of a debt owed to
or guaranteed by the United States as
proposed for comment in the NPRM,
then calling entities might incur some
additional cost in maintaining do-notcall lists for wireless numbers. Such
costs could include software
modification, development of
procedures, and training. However,
some calling entities may already have
procedures in place for maintaining donot-call lists, and therefore, no
additional compliance efforts will be
required.
E. Steps Taken To Minimize Significant
Economic Impact on Small Entities, and
Significant Alternatives Considered
46. The RFA requires an agency to
describe any significant alternatives that
it has considered in reaching its
proposed approach, which may include
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the following four alternatives (among
others): (1) The establishment of
differing compliance or reporting
requirements or timetables that take into
account the resources available to small
entities; (2) the clarification,
consolidation, or simplification of
compliance or reporting requirements
under the rule for small entities; (3) the
use of performance, rather than design,
standards; and (4) an exemption from
coverage of the rule, or any part thereof,
for small entities.
47. The Commission believes that any
economic burden these proposed rules
may have on carriers is outweighed by
the benefits to consumers. The
compliance costs identified in Section D
are small. The Commission seeks
comment on how to minimize the
economic impact of these proposals. For
instance, the Commission seeks
comment on the specific costs of the
measures discussed in the NPRM and
ways to mitigate any implementation
costs. The Commission also seeks
comment on the overall economic
impact these proposed rules may have
because it seeks to minimize all costs
associated with these proposed rules.
Finally, the Commission seeks comment
on whether to consider the size of the
calling entity or the type of debt being
collected in determining the appropriate
timeframes for implementation.
F. Federal Rules That May Duplicate,
Overlap, or Conflict With the Proposed
Rules
48. None.
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Ordering Clauses
49. Pursuant to the authority
contained in sections 1–4, 227, and
303(r) of the Communications Act of
1934, as amended, 47 U.S.C. 151–154,
227, 303(r); and the Telephone
Consumer Protection Act as amended by
the Bipartisan Budget Act of 2015,
Public Law 114–74, 129 Stat. 584,
document FCC 16–57 is adopted.
50. The Commission’s Consumer and
Governmental Affairs Bureau, Reference
Information Center, shall send a copy of
document FCC 16–57, including the
Initial Regulatory Flexibility Analysis,
to the Chief Counsel for Advocacy of the
Small Business Administration.
Federal Communications Commission.
Gloria J. Miles,
Federal Register Liaison Officer, Office of the
Secretary.
DEPARTMENT OF DEFENSE
For the reasons discussed in the
preamble, the Federal Communications
Commission proposes to amend 47 CFR
part 64 as follows:
NATIONAL AERONAUTICS AND
SPACE ADMINISTRATION
PART 64—MISCELLANEOUS RULES
RELATING TO COMMON CARRIERS
1. The authority citation for part 64 is
revised 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, the
Middle Class Tax Relief and Job Creation Act
of 2012, Pub. L. 112–96, and Sec. 301, Pub.
L. 114–74, 129 Stat. 584 (47 U.S.C. 227)
unless otherwise noted.
2. Section 64.1200 is amended by
revising paragraphs (a)(1)(iii) and
(a)(3)(v), and adding paragraph (a)(3)(vi)
to read as follows:
■
§ 64.1200
Delivery restrictions.
(a) * * *
(1) * * *
(iii) To any telephone number
assigned to a paging service, cellular
telephone service, specialized mobile
radio service, or other radio common
carrier service, or any service for which
the called party is charged for the call,
unless such call is made solely to collect
a debt owed to or guaranteed by the
United States.
*
*
*
*
*
(3) * * *
(v) Delivers a ‘‘health care’’ message
made by, or on behalf of, a ‘‘covered
entity’’ or its ‘‘business associate,’’ as
those terms are defined in the HIPAA
Privacy Rule, 15 CFR 160.103;
(vi) Is made solely pursuant to the
collection of a debt owed to or
guaranteed by the United States.
*
*
*
*
*
[FR Doc. 2016–12025 Filed 5–19–16; 8:45 am]
BILLING CODE 6712–01–P
List of Subjects in 47 CFR Part 64
Claims, Communications common
carriers, Credit, Reporting and
recordkeeping requirements,
Telecommunications, Telephone.
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GENERAL SERVICES
ADMINISTRATION
48 CFR Parts 2, 4, 7, 9, 12, 13, 17, 18,
19, 22, 25, 26, 28, 32, 44, and 52
[FAR Case 2015–005; Docket No. 2015–
0005, Sequence No. 1]
RIN 9000–AN19
Federal Acquisition Regulation:
System for Award Management
Registration
Department of Defense (DoD),
General Services Administration (GSA),
and the National Aeronautics and Space
Administration (NASA).
ACTION: Proposed rule.
AGENCY:
DoD, GSA, and NASA are
proposing to amend the Federal
Acquisition Regulation (FAR) to update
the instructions for System for Award
Management (SAM) registration
requirements and to correct an
inconsistency with offeror
representation and certification
requirements.
DATES: Interested parties should submit
written comments to the Regulatory
Secretariat Division at one of the
addresses shown below on or before
July 19, 2016 to be considered in the
formation of the final rule.
ADDRESSES: Submit comments in
response to FAR case 2015–005 by any
of the following methods:
• Regulations.gov: https://
www.regulations.gov. Submit comments
via the Federal eRulemaking portal by
searching ‘‘FAR Case 2015–005’’. Select
the link ‘‘Comment Now’’ that
corresponds with ‘‘FAR Case 2015–
005.’’ Follow the instructions provided
on the screen. Please include your
name, company name (if any), and
‘‘FAR Case 2015–005’’ on your attached
document.
• Mail: General Services
Administration, Regulatory Secretariat
Division (MVCB), ATTN: Ms. Flowers,
1800 F Street NW., 2nd Floor,
Washington, DC 20405.
Instructions: Please submit comments
only and cite FAR Case 2015–005, in all
correspondence related to this case. All
comments received will be posted
without change to https://
www.regulations.gov, including any
personal and/or business confidential
information provided.
FOR FURTHER INFORMATION CONTACT: Mr.
Curtis E. Glover, Sr., Procurement
SUMMARY:
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Agencies
[Federal Register Volume 81, Number 98 (Friday, May 20, 2016)]
[Proposed Rules]
[Pages 31889-31895]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2016-12025]
=======================================================================
-----------------------------------------------------------------------
FEDERAL COMMUNICATIONS COMMISSION
47 CFR Part 64
[CG Docket No. 02-278; FCC 16-57]
Rules and Regulations Implementing the Telephone Consumer
Protection Act of 1991
AGENCY: Federal Communications Commission.
ACTION: Proposed rule.
-----------------------------------------------------------------------
SUMMARY: In this document, the Federal Communications Commission
(Commission) invites comment on proposed revisions to its rules under
the Telephone Consumer Protection Act (TCPA) to implement a provision
of the Bipartisan Budget Act of 2015 that excepts from the TCPA's
prior-express-consent requirement autodialed and prerecorded calls
``made solely to collect a debt owed to or guaranteed by the United
States.''
DATES: Comments are due on or before June 6, 2016. Reply comments are
due on or before June 21, 2016.
ADDRESSES: You may submit comments identified by CG Docket No. 02-278
by any of the following methods:
Electronic Filers: Comments may be filed electronically
using the Internet by accessing the Commission's Electronic Comment
Filing System (ECFS), through the Commission's Web site: https://apps.fcc.gov/ecfs/. Filers should follow the instructions provided on
the Web site for submitting comments. For ECFS filers, in completing
the transmittal screen, filers should include their full name, U.S.
Postal service mailing address, and CG Docket No. 02-278.
Paper Filers: Parties who choose to file by paper must
file an original and one copy of each filing. Filings can be sent by
hand or messenger delivery, by commercial overnight courier, or by
first-class or overnight U.S. Postal Service mail (although the
Commission continues to experience delays in receiving U.S. Postal
Service mail). All filings must be addressed to the Commission's
Secretary, Office of the Secretary, Federal Communications Commission.
For detailed instructions for submitting comments and additional
information on the rulemaking process, see the SUPPLEMENTARY
INFORMATION section of this document.
FOR FURTHER INFORMATION CONTACT: Kristi Thornton, Consumer Policy
Division, Consumer and Governmental Affairs Bureau, Federal
Communications Commission, 445 12th Street SW., Washington, DC 20554 by
phone at (202) 418-2467 or by email at: Kristi.Thornton@fcc.gov.
SUPPLEMENTARY INFORMATION: This is a summary of the Commission's Notice
of Proposed Rulemaking (NPRM), Rules and Regulations Implementing the
TCPA of 1991, CG Docket No. 02-278, FCC 16-57, adopted May 24, 2016,
and released May 6, 2016. A copy of document FCC 16-57 and any
subsequently filed documents in this matter will be available during
regular business hours at the FCC Reference Center, Portals II, 445
12th Street SW., Room CY-A257, Washington, DC 20554, (202) 418-0270.
The full text of document FCC 16-57 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. A copy of document FCC 16-57 and
any subsequently filed documents in this matter may also be found by
searching ECFS at: https://apps.fcc.gov/ecfs/ (insert CG Docket No. 02-
278 into the Proceeding block).
Pursuant to 47 CFR 1.415, 1.419, interested parties may file
comments and reply comments on or before the dates indicated on the
first page of this document. Comments may be filed using ECFS. See
Electronic Filing of Documents in Rulemaking Proceedings, 63 FR 24121
(1998).
All hand-delivered or messenger-delivered paper filings
for the Commission's Secretary must be delivered to FCC Headquarters at
445 12th Street SW., Room TW-A325, Washington, DC 20554. All hand
deliveries must be held together with rubber bands or fasteners. Any
envelopes must be disposed of before entering the building.
Commercial Mail sent by overnight mail (other than U.S.
Postal Service Express Mail and Priority Mail) must be sent to 9300
East Hampton Drive, Capitol Heights, MD 20743.
U.S. Postal Service first-class, Express, and Priority
mail should be addressed to 445 12th Street SW., Washington, DC 20554.
Pursuant to Sec. 1.1200 of the Commission's rules, 47 CFR 1.1200,
this matter shall be treated as a ``permit-but-disclose'' proceeding in
accordance with the Commission's ex parte rules. Persons making oral ex
parte presentations are reminded that memoranda summarizing the
presentations must contain summaries of the substances of the
presentations and not merely a listing of the subjects discussed. More
than a one or two sentence description of the views and arguments
presented is generally required. See 47 CFR 1.1206(b). Other rules
pertaining to oral and written ex parte presentations in permit-but-
disclose proceedings are set forth in Sec. 1.1206(b) of the
Commission's rules, 47 CFR 1.1206(b).
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).
Document FCC 16-57 can also be downloaded in Word or Portable Document
Format (PDF) at: https://www.fcc.gov/cgb/policy.
[[Page 31890]]
Initial Paperwork Reduction Act of 1995 Analysis
Document FCC 16-57 seeks comment on proposed rule amendments that
may result in modified information collection requirements. If the
Commission adopts any modified information collection requirements, the
Commission will publish another notice in the Federal Register inviting
the public to comment on the requirements, as required by the Paperwork
Reduction Act. Public Law 104-13; 44 U.S.C. 3501-3520. In addition,
pursuant to the Small Business Paperwork Relief Act of 2002, the
Commission seeks comment on how it might further reduce the information
collection burden for small business concerns with fewer than 25
employees. Public Law 107-198; 44 U.S.C. 3506(c)(4).
Synopsis of the Notice of Proposed Rulemaking
1. In the NPRM, the Commission seeks comment on implementation of
the Bipartisan Budget Act of 2015 (Budget Act) amendments. Among other
things, the Commission seeks comment on a number of implementation
questions, such as which calls are covered by the phrase ``solely to
collect,'' how it should restrict the number and duration of such
calls, and how to implement such restrictions.
Background
A. Covered Calls
2. At what point is a call to collect a debt a covered call? The
Commission turns first to the phrase ``solely to collect a debt'' and
seeks comment regarding the parameters of that phrase, including how
the Commission should interpret ``solely'' and ``collect.'' The
Commission's proposal, to ensure that debtors do not receive non-
consent calls before failing to make a timely payment, is to interpret
``solely to collect a debt'' to mean only those calls made to obtain
payment after the borrower is delinquent on a payment. The Commission
seeks comment on this proposal, including how the Commission should
interpret ``delinquent'' for these purposes, and any alternative
approaches. The Commission also seeks comment on the alternative that
covered calls may only be made after the debtor is in default, how the
Commission should define ``default,'' and whether it should distinguish
between default caused by non-payment and a default resulting from a
different cause under the terms of the debt instrument.
3. Are debt servicing calls covered? The Commission notes that debt
servicing calls may provide a valuable service by offering information
about options and programs designed to keep at-risk debtors from
defaulting or becoming delinquent on their loans. Helping a debtor
avoid delinquency or default can preserve the person's payment history
and credit rating, and help maintain eligibility for future loans. The
potential value of these debt servicing calls, and the probability that
servicing calls will create conditions for debtors that allow debts to
be more readily collected by the United States, leads the Commission to
propose that servicing calls should be included in covered calls. The
Commission seeks comment on this proposal and, if adopted, how to
ensure it does not result in the types of calls consumers would not
want, such as marketing calls. The Commission seeks comment on what
initiating event should enable a creditor or entity acting on a
creditor's behalf to begin making covered calls to convey debt
servicing information. Its proposal, above, is that covered calls begin
when a borrower is delinquent on a payment; should delinquency also be
the initiating event for debt servicing calls, or should some other
event trigger a caller's ability to make servicing calls under the
exception? What should the trigger event be?
4. The Commission seeks comment on the definition of ``servicing''
that should guide its analysis in this regard. Should servicing calls
include calls informing debtors how to reduce payment amounts;
consolidate, modify, or restructure loans; change payment dates; or
other matters indirectly related to seeking payment? The Commission
proposes that permissible ``servicing'' calls only refer to calls made
by the creditor and those entities acting on behalf of the creditor.
The Commission seeks comment on this proposal.
5. ``Owed to or guaranteed by the United States.'' The Commission
seeks comment on the meaning of the phrase ``a debt owed to or
guaranteed by the United States.'' What is a debt ``owed to'' the
United States and a debt ``guaranteed by'' the United States? Does the
phrase ``owed to or guaranteed by'' include debts insured by the United
States? Should the Commission look to or adopt the definition of
``debt'' in the DCIA? Why or why not?
6. The Commission also seeks comment on whether there are any
circumstances under which a party other than the federal government
obtains a pecuniary interest in a debt such that the debt should no
longer be considered to be ``owed to . . . the United States.'' Basic
contract principles dictate that when an owner sells an item, it no
longer belongs to the original owner, but to the purchaser. Likewise,
the purchaser of a debt is owed the repayment obligation, not the prior
obligee. For example, would a debt still be ``owed to . . . the United
States'' if the right to repayment is transferred in whole or part to
anyone other than the United States, or a collection agency collects
the funds and then remits to the federal government a percentage of the
amount collected? Are there specific types of debts that are covered or
not covered by the phrase ``debt owed to or guaranteed by the United
States,'' such as federal student loans, Small Business Administration
loans, and federally guaranteed mortgages? Are there any other factors
the Commission should consider in determining which types of debts
should be included or excluded from this phrase for purposes of
implementing the Budget Act amendments to the TCPA? If so, what are
those factors? Consistent with the focus of the amended statutory
language on debts ``owed to or guaranteed by the United States,''
should the Commission also require that the content of covered calls be
limited to such debts, and that such calls not be permitted to include
content concerning other debts or matters about which the caller may
want to speak with the debtor? Similarly, can the Commission and should
the Commission place any limits on a covered caller using or
transferring (such as by sale) information (such as the debtor's
location or phone number) obtained during covered calls in order to
collect other debts or to address other matters?
7. Who can be called? The Commission seeks comment on the person or
persons to whom covered calls may be made. The Commission believes the
most reasonable way to read the phrase ``solely to collect a debt'' is
to include only calls to the person or persons obligated to pay the
debt because it appears impossible that calls to non-debtors by their
nature would directly result in collection from the debtor. The
Commission believes this approach will ensure that a debtor's family,
friends, and other acquaintances will not be subject to non-consent
robocalls seeking information about the debtor. The Commission seeks
comment on this proposal and the related question of whether it should
limit covered calls to the cellular telephone number the debtor
provided to the creditor, e.g., on a loan application.
8. The Commission seeks comment on whether calls to persons the
caller does not intend to reach, that is persons whom the caller might
believe to be the debtor but is not, are covered by the
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exception. Parties seeking debtors' current telephone numbers often use
techniques such as skip tracing, which are not guaranteed to identify
the debtor. The Commission proposes to exclude such calls from the
exception to encourage callers to avoid robocalling unwitting
individuals who have no connection to the debtor. Similarly, and
consistent with its recent robocalls decision, the Commission proposes
that calls to a wireless number a debtor provided to a creditor, but
which has been reassigned unbeknownst to the caller, are not covered by
the exception, but have the same one-call window the Commission has
found to constitute a reasonable opportunity to learn of reassignment.
The Commission seeks comment on its proposals and any alternatives.
9. Who may call? The Commission next seeks comment on who may make
the covered calls at issue. As amended, the relevant portion of the
TCPA reads: ``It shall be unlawful for any person . . . to make any
call . . . using any [autodialer] or an artificial or prerecorded voice
to any [wireless number] unless such call is made solely to collect a
debt owed to or guaranteed by the United States.'' This provision is
not clear as to who may make calls covered by the exception. The
Commission believes the most reasonable way to interpret this language
is to include calls made by creditors and those calling on their
behalf, including their agents. Is there a limiting principle to
determining who should be deemed to be acting on behalf of the
creditor? The Commission seeks comment on its interpretation and
whether it should interpret the statute to include other callers and,
if so, who. Alternatively, should the Commission interpret the statute
to apply more narrowly to only the creditor or to the creditor and its
agents acting within the actual scope of their authority?
10. The Commission notes that petitions pending before the
Commission seek clarification regarding the meaning of ``person'' and
whether the federal government or its agents are persons for purposes
of the TCPA, among other things. The Commission seeks comment on
whether the Budget Act amendments imply that the federal government is
a person for TCPA purposes and whether the Commission must resolve
these questions in order to complete this rulemaking. The Commission
also seeks comment on whether and, if so, how the Supreme Court's
recent decision in Campbell-Ewald Co. v. Gomez should inform the
implementation of the Budget Act amendments to the TCPA.
B. Limits on Number and Duration of Covered Calls
11. Need for restrictions. In considering the need for restrictions
on covered calls, the Commission notes the volume of consumer
complaints, as set forth above. These factors, along with Congress'
explicit statement that the Commission ``shall prescribe regulations to
implement the amendments made by'' the Budget Act, and Congress'
authorization that the Commission ``may restrict or limit the number
and duration of calls made to a telephone number assigned to a cellular
telephone service to collect a debt owed to or guaranteed by the United
States,'' lead the Commission to propose that it does so here. The
Commission seeks comment on its proposal and on what types of number
and duration restrictions it should adopt for the covered calls. Apart
from its specific proposals and questions below, the Commission seeks
comment generally on what other actions it should consider to reduce
unwanted debt collection robocalls to consumers.
12. If adopted, the nature of restrictions. The Commission seeks
comment on how it should restrict or limit the number and duration of
covered calls, including both collection calls and debt servicing
calls. Consistent with the conditions the Commission has adopted when
granting exemptions to permit certain free-to-end-user robocalls to be
made without consent of the called party, and regardless of whether the
caller leaves a prerecorded or artificial-voice message or whether the
call is an autodialed call resulting in a live conversation, the
Commission proposes to restrict the number of covered calls to three
per month, per delinquency only after delinquency. The Commission
believes three calls per month provides an adequate opportunity to
convey necessary information about the debt, repayment, and other
matters the caller wishes to communicate without the consent of the
called party and, in any case, affords callers an opportunity to obtain
the debtor's consent to make additional calls beyond any limit the
Commission adopts. The Commission proposes that the limit on the number
of calls should be for any initiated calls, even if unanswered by a
person, because many consumers may choose not to answer calls from
unfamiliar numbers. These limits would apply to autodialed,
prerecorded, or artificial voice calls to wireless numbers. In the case
of autodialed calls, the limits apply whether they use a prerecorded or
artificial voice or instead attempt to connect the called debtor with a
live agent. The Commission sees potential value, however, in debtors
hearing from a live agent to discuss the debt and potential servicing
options and seeks comment on whether and how it should encourage that
approach. The Commission seeks comment on these proposals. The
Commission also seeks comment on the maximum duration of a voice call,
and whether the Commission should adopt different duration limits for
prerecorded- or artificial-voice calls than for autodialed calls with a
live caller. Should there be a limit on the length of text messages?
What should that limit be? The Commission also seeks comment on how to
count debt servicing calls for purposes of the proposed three-call
limit per month or any other limit on the number of calls.
13. Should the Commission look to other standards or precedents for
guidance? For example, should the Commission restrict calls to the
hours of 8:00 a.m. to 9:00 p.m. (local time at the called party's
location), similar to the rule that now applies to telemarketing calls?
Should the Commission consider any limits on the number of calls
pursuant to the Fair Debt Collection Practices Act if it adopts such
limits here? How should the Commission take account of any limits
adopted by the Consumer Financial Protection Bureau? Are there other
standards or precedents, including restrictions that might exist under
either federal or state debt collection laws, the Commission should
consider? Are calls covered by the Budget Act exception subject to
other laws and rules that more generally govern debt collection and, if
so, how should the Commission harmonize any overlapping requirements?
14. Consumer ability to stop covered calls. The Commission has
determined that an ability to stop unwanted calls is critical to the
TCPA's goal of consumer protection. That right may be more important
here, where consumers need not consent to the calls in advance in order
for a caller to make the calls. The Commission proposes, therefore,
that consumers should have a right to stop such calls at any point the
consumer wishes. The Commission seeks comment on its proposal. For
example, does the amended law allow the Commission to require that a
caller limit covered calls to the first of (1) a specific number
(perhaps within a set period of time) or (2) until the consumer says
``stop''? The Commission proposes that stop-calling requests should
apply to a subsequent collector of the same debt. The Commission seeks
comment on this proposal and how it might ensure that
[[Page 31892]]
a request to stop such calls be honored if later transferred to other
collectors. Should the Commission require that callers making covered
calls record any request to stop calling and provide a record of such a
request to subsequent callers along with other information about the
debt?
15. The Commission also proposes, so that consumers fully
understand any right it adopts to stop calls, to require callers to
inform debtors of their right to make such a request. The Commission
seeks comment on this proposal and on when and how callers should
provide such notice. For example, should the permissible ways to opt
out of further calls under the TCPA--i.e., any reasonable method,
including orally or in response to a text message--apply here? Should
the Commission require callers making artificial- or prerecorded-voice
calls to include an automated, interactive voice- and/or key press-
activated opt-out mechanism for stopping future excepted calls?
C. Other Implementation Issues
16. Covered Calls to Residential Lines. The Commission noted that
under its current rules, artificial- or prerecorded-voice calls to
residential lines that are made for the purpose of collecting a debt
are currently not subject to the prior express consent requirement.
Although the TCPA allows for broad application of the prior express
consent requirement to all non-emergency artificial- and prerecorded-
voice calls to residential lines, the Commission has exercised its
statutory exemption authority so as to apply the consent requirement
only to calls that include or introduce an advertisement or constitute
telemarketing. The Commission has also found that debt collection calls
do not constitute telemarketing. Accordingly, the consent exception
under the Budget Act currently does not appear to affect whether
artificial- or prerecorded-voice calls to residential lines for the
purpose of collecting a covered debt require prior express consent.
17. The Commission nonetheless proposes to revise its rule
concerning artificial- or prerecorded-voice calls to residential lines
to reflect the exception contained in the Budget Act. The Commission
does not believe, however, that it is necessary at the present time to
determine the exact contours of the statutory exception for covered
calls to residential lines, including, for example, determining the
specific impact of the somewhat different language in the Budget Act
amendments with regard to covered calls to residential lines and to
wireless numbers. The Commission seeks comment on these views, and on
whether it should consider any additional issues concerning covered
calls. For example, should any limits on the number and duration of
covered calls also apply to covered calls to residential lines, even
though such calls would not have required prior express consent even
before the Budget Act amendments to the TCPA?
18. Restrictions on Calls to Cellular Telephone Service. Congress
authorized the Commission to ``restrict or limit the number and
duration of calls made to a telephone number assigned to a cellular
telephone service to collect a debt owed to or guaranteed by the United
States.'' Yet, the amendment to the TCPA, authorizing calls made to
collect a debt owed to or guaranteed by the United States, is broader,
applying to ``any telephone number assigned to a paging service,
cellular telephone service, specialized mobile radio service, or other
radio common carrier service, or any service for which the called party
is charged for the call.'' Considering the identical language in the
prior delegation of authority in 47 U.S.C. 227(b)(2)(C), the Commission
proposes that Congress delegated the Commission authority to limit the
number and duration of all calls made pursuant to the debt collection
exception in 47 U.S.C. 227(b)(1)(A)(iii).
19. Congress, in granting the Commission authority to limit the
number and duration of calls, used identical language to the language
it used in the separate delegation of authority in 47 U.S.C.
227(b)(2)(C). The identical language in these two delegations of
authority indicates that Congress intended the two provisions to apply
to the same services.
20. The Commission has interpreted 47 U.S.C. 227(b)(2)(C) to apply
to all services mentioned in 47 U.S.C. 227(b)(1)(A)(iii). In so doing,
it has interpreted ``cellular telephone service'' by asking whether
services are functionally equivalent from the consumer perspective
rather than on technical or regulatory differences, such as which
spectrum block is used to provide the service. This avoids, for
example, consumers receiving wireless voice service from being treated
differently depending on which spectrum block their carriers use and
callers having to determine which spectrum block is used for a
particular consumer's service in order to know which requirements
apply.
21. Applying the canon of statutory construction that Congress
knows the law, including relevant agency interpretations, at the time
it adopts a statute, the Commission presumes that Congress knew of the
Commission's interpretation of this key language. Congress used the
same language in the recent delegation of authority without taking any
action to alter the Commission's interpretation of identical language
elsewhere in the same statute. The Commission therefore proposes that
the authority delegated to it in the new 47 U.S.C. 227(b)(2)(H) added
by the Budget Act applies to all services to which amended 47 U.S.C.
227(b)(1)(A)(iii) applies. The Commission seeks comment on this
proposal.
22. Application of Other TCPA Restrictions to Covered Calls. The
Commission believes the most reasonable interpretation is that calls
must be in compliance with all other legal requirements--for example,
the requirement that artificial- or prerecorded-voice calls contain
certain identifying information--in order for the Budget Act consent
exception to apply. The Commission seeks comment on this proposal, as
well as on whether and how compliance with other legal requirements
should affect the application of the Budget Act exception.
Initial Regulatory Flexibility Analysis
23. As required by the Regulatory Flexibility Act of 1980, as
amended, (RFA), the Commission has prepared this Initial Regulatory
Flexibility Analysis (IRFA) of the possible significant economic impact
on a substantial number of small entities by the policies and rules
proposed in the NPRM. Written public comments are requested on the
IRFA. Comments must be identified as responses to the IRFA and must be
filed by the deadlines for comments on the NPRM provided on the first
page of this document. The Commission will send a copy of the NPRM,
including the IRFA, to the Chief Counsel for Advocacy of the Small
Business Administration.
A. Need for, and Objectives of, the Proposed Rules
24. The NPRM contains proposals regarding how to modify the
Commission's rules to align them with the amended statutory language of
the TCPA enacted by Congress in the Bipartisan Budget Act of 2015
(Budget Act). The NPRM seeks comment generally on all entities that
make autodialed or prerecorded- or artificial- voice calls to collect
debts owed to or guaranteed by the United States. The NPRM seeks
comment on covered calls. Specifically, the Commission seeks comment on
the parameters of the phrase ``solely to collect a debt.'' The
Commission seeks comment on whether debt servicing calls are covered.
The
[[Page 31893]]
Commission seeks comment on the meaning of the phrase ``owed to or
guaranteed by the United States,'' including the applicability of the
exception to debt insured by or purchased from the United States. The
Commission seeks comment on the person or persons to whom covered calls
can be made and it seeks comment on who is entitled to make calls under
the exception Congress created in the Budget Act.
25. The NPRM seeks comment on limits on the number and duration of
covered calls. Specifically, the Commission seeks comment on the need
for restrictions on covered calls, including types of number and
duration restrictions. The Commission seeks comment on the nature of
the restrictions, if adopted, including looking to other standards or
precedents for guidance. The Commission seeks comment on the consumer's
ability to stop covered calls.
26. The NPRM seeks comment on other implementation issues.
Specifically, the Commission seeks comment on the applicably of the
exception to residential lines. The Commission seeks comment on whether
the authority delegated to it in the new 47 U.S.C. 227(b)(2)(H) added
by the Budget Act applies to all services to which amended 47 U.S.C.
227(b)(1)(A)(iii) applies. The Commission seeks comment on the
application of other TCPA restrictions to covered calls. The
Commission's underlying concern is to protect small businesses by
giving them ample opportunity to comment on the proposed rules under
consideration.
27. The Commission's rules restricting the use of automated
telephone dialing equipment and artificial or prerecorded voice to call
wireless numbers apply to a wide range of entities, including all
entities that make such calls or texts to wireless telephone numbers to
collect debts owed to or guaranteed by the federal government. Thus,
the Commission expects that the proposals in this proceeding could have
a significant economic impact on a substantial number of small entities
in a wide range of categories.
B. Legal Basis
28. The proposed and anticipated rules are authorized under
sections 1-4, 201(b), 227, and 303(r) of the Communications Act of
1934, as amended, 47 U.S.C. 151-154, 201(b), 227, 303(r); and the
Bipartisan Budget Act of 2015, Public Law 114-74, 129 Stat. 584.
C. Description and Estimate of the Number of Small Entities to Which
the Proposed Rules Will Apply
29. The RFA directs agencies to provide a description of, and where
feasible, an estimate of the number of small entities that will be
affected by the proposed rules, if adopted. The RFA generally defines
the term ``small entity'' as having the same meaning as the terms
``small business,'' ``small organization,'' and ``small governmental
jurisdiction.'' In addition, the term ``small business'' has the same
meaning as the term ``small business concern'' under the Small Business
Act. Under the Small Business Act, a ``small business concern'' is one
that: (1) Is independently owned and operated; (2) is not dominant in
its field of operation; and (3) meets any additional criteria
established by the Small Business Administration (SBA).
30. Collection Agencies. This industry comprises establishments
primarily engaged in collecting payments for claims and remitting
payments collected to their clients. The SBA has determined that
Collection Agencies with $15 million or less in annual receipts qualify
as small businesses. Census data for 2007 indicate that 4,532
establishments in this category operated throughout that year. Of
those, 4,288 establishments operated with annual receipts of less than
$10 million. The Commission concludes that a substantial majority of
businesses in this category are small under the SBA standard.
31. Telemarketing Bureaus and Other Contact Centers. This U.S.
industry comprises establishments primarily engaged in operating call
centers that initiate or receive communications for others--via
telephone, facsimile, email, or other communication modes--for purposes
such as (1) promoting clients products or services, (2) taking orders
for clients, (3) soliciting contributions for a client, and (4)
providing information or assistance regarding a client's products or
services. The SBA has determined that Telemarketing Bureaus and other
Contact Centers with $15 million or less in annual receipts qualify as
small businesses. U.S. Census data for 2007 indicate that 2,100 firms
in this category operated throughout that year. Of those, 1,909
operated with annual receipts of less than $10 million. The Commission
concludes that a substantial majority of businesses in this category
are small under the SBA standard.
32. Commercial Banks and Savings Institutions. Commercial banks are
establishments primarily engaged in accepting demand and other deposits
and making commercial, industrial, and consumer loans. Commercial banks
and branches of foreign banks are included in this industry. Savings
institutions are establishments primarily engaged in accepting time
deposits, making mortgage and real estate loans, and investing in high-
grade securities. Savings and loan associations and savings banks are
included in this industry. The SBA has determined that Commercial Banks
and Savings Institutions with $500 million or less in assets qualify as
small businesses. December 2013 Call Report data compiled by SNL
Financial indicate that 6,877 firms in this category operated
throughout that year. Of those, 5,533 qualify as small entities. Based
on this data, the Commission concludes that a substantial number of
businesses in this category are small under the SBA standard.
33. Credit Unions. This industry comprises establishments primarily
engaged in accepting members' share deposits in cooperatives that are
organized to offer consumer loans to their members. The SBA has
determined that Credit Unions with $500 million or less in assets
qualify as small businesses. The December 2013 National Credit Union
Administration Call Report data indicate that 6,687 firms in this
category operated throughout that year. Of those, 6,252 qualify as
small entities. Based on this data, the Commission concludes that a
substantial number of businesses in this category are small under the
SBA standard.
34. Other Depository Credit Intermediation. This industry comprises
establishments primarily engaged in accepting deposits and lending
funds (except commercial banking, savings institutions, and credit
unions). Establishments known as industrial banks or Morris Plans and
primarily engaged in accepting deposits, and private banks (i.e.,
unincorporated banks) are included in this industry. The SBA has
determined that Other Depository Credit Intermediation entities with
$500 million or less in assets qualify as small businesses. Census data
for 2007 indicate that 29 firms in this category operated throughout
that year. Due to the nature of this category, the Commission concludes
that a substantial number of businesses in this category are small
under the SBA standard.
35. Sales Financing. This industry comprises establishments
primarily engaged in sales financing or sales financing in combination
with leasing. Sales financing establishments are
[[Page 31894]]
primarily engaged in lending money for the purpose of providing
collateralized goods through a contractual installment sales agreement,
either directly from or through arrangements with dealers. The SBA has
determined that Sales Financing entities with $7 million or less in
annual receipts qualify as small businesses. Census data for 2007
indicate that 2,267 firms in this category operated throughout that
year. Of those, 1,806 operated with annual receipts of less than $5
million. The Commission concludes that a substantial majority of
businesses in this category are small under the SBA standard.
36. Consumer Lending. This U.S. industry comprises establishments
primarily engaged in making unsecured cash loans to consumers. The SBA
has determined that Consumer Lending entities with $7 million or less
in annual receipts qualify as small businesses. Census data for 2007
indicate that 3,234 firms in this category operated throughout that
year. Of those, 2,969 operated with annual receipts of less than $5
million. The Commission concludes that a substantial majority of
businesses in this category are small under the SBA standard.
37. Real Estate Credit. This U.S. industry comprises establishments
primarily engaged in lending funds with real estate as collateral. The
SBA has determined that Real Estate Credit entities with $7 million or
less in annual receipts qualify as small businesses. Census data for
2007 indicate that 5,791 firms in this category operated throughout
that year. Of those, 5,036 operated with annual receipts of less than
$5 million. The Commission concludes that a substantial majority of
businesses in this category are small under the SBA standard.
38. International Trade Financing. This U.S. industry comprises
establishments primarily engaged in providing one or more of the
following: (1) working capital funds to U.S. exporters; (2) lending
funds to foreign buyers of U.S. goods; and/or (3) lending funds to
domestic buyers of imported goods. The SBA has determined that
International Trade Financing entities with $38.5 million or less in
annual receipts qualify as small businesses. Census data for 2007
indicate that 125 firms in this category operated throughout that year.
Of those, 118 operated with annual receipts of less than $25 million.
The Commission concludes that a substantial majority of businesses in
this category are small under the SBA standard.
39. Secondary Market Financing. This U.S. industry comprises
establishments primarily engaged in buying, pooling, and repackaging
loans for sale to others on the secondary market. The SBA has
determined that Secondary Market Financing entities with $7 million or
less in annual receipts qualify as small businesses. Census data for
2007 indicate that 105 firms in this category operated throughout that
year. Of those, 74 operated with annual receipts of less than $5
million. The Commission concludes that a substantial majority of
businesses in this category are small under the SBA standard.
40. All Other Nondepository Credit Intermediation. This U.S.
industry comprises establishments primarily engaged in providing
nondepository credit (except credit card issuing, sales financing,
consumer lending, real estate credit, international trade financing,
and secondary market financing). Examples of types of lending in this
industry are: short-term inventory credit, agricultural lending (except
real estate and sales financing), and consumer cash lending secured by
personal property. The SBA has determined that All Other Nondepository
Credit Intermediation entities with $38.5 million or less in annual
receipts qualify as small businesses. Census data for 2007 indicate
that 4,590 firms in this category operated throughout that year. Of
those, 4,494 operated with annual receipts of less than $25 million.
The Commission concludes that a substantial majority of businesses in
this category are small under the SBA standard.
41. Mortgage and Nonmortgage Loan Brokers. This industry comprises
establishments primarily engaged in arranging loans by bringing
borrowers and lenders together on a commission or fee basis. The SBA
has determined that Mortgage and Nonmortgage Loan Brokers with $7
million or less in annual receipts qualify as small businesses. Census
data for 2007 indicate that 17,702 firms in this category operated
throughout that year. Of those, 17,393 operated with annual receipts of
less than $5 million. The Commission concludes that a substantial
majority of businesses in this category are small under the SBA
standard.
42. Other Activities Related to Credit Intermediation. This
industry comprises establishments primarily engaged in facilitating
credit intermediation (except mortgage and loan brokerage; and
financial transactions processing, reserve, and clearinghouse
activities). The SBA has determined that Other Activities Related to
Credit Intermediation entities with $7 million or less in annual
receipts qualify as small businesses. Census data for 2007 indicate
that 5,494 firms in this category operated throughout that year. Of
those, 5,277 operated with annual receipts of less than $5 million. The
Commission concludes that a substantial majority of businesses in this
category are small under the SBA standard.
D. Description of Projected Reporting, Recordkeeping, and Other
Compliance Requirements
43. Under the current rules, all artificial or prerecorded voice
calls to a wireless telephone number are prohibited without prior
express consent. The NPRM contains proposals regarding how to modify
the Commission's rules to align them with the amended statutory
language of the TCPA enacted by Congress in the Budget Act, creating an
exception that allows calls to wireless telephones made solely pursuant
to the collection of a debt owed to or guaranteed by the United States.
44. The proposals under consideration could result in additional
costs to regulated entities. If the Commission imposes restrictions on
the number and duration of calls to wireless numbers as proposed for
comment in the NPRM, then calling entities might incur some additional
costs in tracking that information. For example, calling entities might
need to modify software, develop tracking procedures, and train staff
in order to keep within the restrictions on the number and duration of
calls to wireless numbers. However, some calling entities may already
track calls and call durations, and therefore, no additional compliance
efforts would be required. Calling entities may also be relieved of
tracking the consent of the called party, which could offset any new
burdens.
45. If the Commission determines that a called party may stop
future calls concerning collection of a debt owed to or guaranteed by
the United States as proposed for comment in the NPRM, then calling
entities might incur some additional cost in maintaining do-not-call
lists for wireless numbers. Such costs could include software
modification, development of procedures, and training. However, some
calling entities may already have procedures in place for maintaining
do-not-call lists, and therefore, no additional compliance efforts will
be required.
E. Steps Taken To Minimize Significant Economic Impact on Small
Entities, and Significant Alternatives Considered
46. The RFA requires an agency to describe any significant
alternatives that it has considered in reaching its proposed approach,
which may include
[[Page 31895]]
the following four alternatives (among others): (1) The establishment
of differing compliance or reporting requirements or timetables that
take into account the resources available to small entities; (2) the
clarification, consolidation, or simplification of compliance or
reporting requirements under the rule for small entities; (3) the use
of performance, rather than design, standards; and (4) an exemption
from coverage of the rule, or any part thereof, for small entities.
47. The Commission believes that any economic burden these proposed
rules may have on carriers is outweighed by the benefits to consumers.
The compliance costs identified in Section D are small. The Commission
seeks comment on how to minimize the economic impact of these
proposals. For instance, the Commission seeks comment on the specific
costs of the measures discussed in the NPRM and ways to mitigate any
implementation costs. The Commission also seeks comment on the overall
economic impact these proposed rules may have because it seeks to
minimize all costs associated with these proposed rules. Finally, the
Commission seeks comment on whether to consider the size of the calling
entity or the type of debt being collected in determining the
appropriate timeframes for implementation.
F. Federal Rules That May Duplicate, Overlap, or Conflict With the
Proposed Rules
48. None.
Ordering Clauses
49. Pursuant to the authority contained in sections 1-4, 227, and
303(r) of the Communications Act of 1934, as amended, 47 U.S.C. 151-
154, 227, 303(r); and the Telephone Consumer Protection Act as amended
by the Bipartisan Budget Act of 2015, Public Law 114-74, 129 Stat. 584,
document FCC 16-57 is adopted.
50. The Commission's Consumer and Governmental Affairs Bureau,
Reference Information Center, shall send a copy of document FCC 16-57,
including the Initial Regulatory Flexibility Analysis, to the Chief
Counsel for Advocacy of the Small Business Administration.
List of Subjects in 47 CFR Part 64
Claims, Communications common carriers, Credit, Reporting and
recordkeeping requirements, Telecommunications, Telephone.
Federal Communications Commission.
Gloria J. Miles,
Federal Register Liaison Officer, Office of the Secretary.
For the reasons discussed in the preamble, the Federal
Communications Commission proposes to amend 47 CFR part 64 as follows:
PART 64--MISCELLANEOUS RULES RELATING TO COMMON CARRIERS
0
1. The authority citation for part 64 is revised 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, the Middle Class Tax Relief
and Job Creation Act of 2012, Pub. L. 112-96, and Sec. 301, Pub. L.
114-74, 129 Stat. 584 (47 U.S.C. 227) unless otherwise noted.
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2. Section 64.1200 is amended by revising paragraphs (a)(1)(iii) and
(a)(3)(v), and adding paragraph (a)(3)(vi) to read as follows:
Sec. 64.1200 Delivery restrictions.
(a) * * *
(1) * * *
(iii) To any telephone number assigned to a paging service,
cellular telephone service, specialized mobile radio service, or other
radio common carrier service, or any service for which the called party
is charged for the call, unless such call is made solely to collect a
debt owed to or guaranteed by the United States.
* * * * *
(3) * * *
(v) Delivers a ``health care'' message made by, or on behalf of, a
``covered entity'' or its ``business associate,'' as those terms are
defined in the HIPAA Privacy Rule, 15 CFR 160.103;
(vi) Is made solely pursuant to the collection of a debt owed to or
guaranteed by the United States.
* * * * *
[FR Doc. 2016-12025 Filed 5-19-16; 8:45 am]
BILLING CODE 6712-01-P