[Federal Register Volume 62, Number 45 (Friday, March 7, 1997)]
[Rules and Regulations]
[Pages 10466-10473]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 97-5349]


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FEDERAL COMMUNICATIONS COMMISSION

47 CFR Part 2

[ET Docket No. 94-45; FCC 97-31]


Marketing and Equipment Authorizations

AGENCY: Federal Communications Commission

ACTION: Final rule

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SUMMARY: By this Report and Order, the Commission amends its 
regulations to consolidate and harmonize the marketing rules, as 
proposed in the Notice of Proposed Rule Making in this proceeding. This 
amendment permits radio frequency devices, prior to authorization or a 
determination of compliance with the technical standards, to be 
announced, advertised, displayed, and operated for compliance testing, 
demonstrated at trade shows, or evaluated at the manufacturer's 
facilities. In addition, non-consumer devices that have not been tested 
or authorized can be offered for conditional sale or supplied to the 
user for evaluation or compliance testing. The equipment authorizations 
regulations are also amended to provide clarification, to resolve 
inconsistencies, to remove unnecessary restrictions and obsolete 
regulations, and to incorporate several interpretations. These 
amendments will stimulate economic growth by permitting products to be 
developed on a cooperative basis by manufacturers and retailers, and by 
potentially decreasing the time for a product to reach the marketplace.

EFFECTIVE DATE: April 7, 1997.

FOR FURTHER INFORMATION CONTACT: John A. Reed, Office of Engineering 
and Technology, (202) 418-2455.

SUPPLEMENTARY INFORMATION: This is a summary of the Commission's Report 
and Order in ET Docket No. 94-45, adopted February 3, 1997, and 
released February 12, 1997.
    The complete text of this Report and Order is available for 
inspection and copying during normal business hours in the FCC 
Reference Center (Room 239), 1919 M Street, N.W., Washington, D.C., and 
also may be purchased from the Commission's copy contractor, 
International Transcription Services, Inc., (202) 857-3800, 2100 M 
Street, NW, Suite 140, Washington, D.C. 20037.

Summary of the Report and Order

    1. In the Report and Order, the Commission amended Part 2 of its 
rules regarding the marketing and operation of radio frequency (RF) 
devices.

[[Page 10467]]

Marketing includes the sale or lease, offer for sale or lease, 
including advertising for sale or lease, and importation, shipment or 
distribution for the purpose of sale or lease or offering for sale or 
lease. Previously, the rules prohibited the marketing and operation of 
an RF device unless it complies with all of the standards and the 
equipment authorization procedures. Certain exceptions to these rules 
were provided for verified digital devices and non-consumer ISM 
products operated under Part 18 of the rules.
    2. The order harmonizes the marketing rules by permitting RF 
devices, prior to authorization or a determination of compliance with 
the technical standards, to be announced, advertised, displayed, and, 
if compliant with any Commission license requirements, operated for 
compliance testing, demonstrated at trade shows, or evaluated at the 
manufacturer's facilities. In addition, non-consumer RF devices, i.e., 
products employed at business, commercial, industrial, scientific or 
medical sites, prior to testing or authorization, may be offered for 
conditional sale or supplied to the user for evaluation or compliance 
testing. As under the previous rules, no products may be marketed or 
supplied to the general public prior to testing or authorization. 
Further, these products must be designed with the intent of complying 
with all applicable regulations.
    3. On its own motion, the Commission also adopted several 
additional changes to the equipment authorization rules to resolve 
inconsistencies, to provide clarification, to remove unnecessary 
restrictions and obsolete regulations, and to incorporate several 
interpretations. Specifically, the Commission amended the rules to 
indicate, explicitly, that, as with any request for authorization, an 
anti-drug abuse statement is required with requests for permissive 
changes. In addition, the rules now state that proper labelling of a 
product is a condition of the grant of equipment authorization and is 
required prior to marketing. The Commission also clarified that a 
product is considered to be ``electrically identical'' if no changes 
are made to the product or if any changes to the product could be 
treated as Class I permissive changes. Further, duplicative or outdated 
regulations, e.g., references to type approval which is no longer 
employed, were removed, and erroneous rule citations were corrected.
    4. The Commission amended its rules to state that any party that 
modifies an authorized RF device becomes responsible for ensuring that 
the modified product continues to comply with the appropriate standards 
and must maintain whatever records are required to demonstrate such 
compliance. In order to facilitate identification, the Commission also 
stated that a product modified by someone other than the original 
responsible party be labelled with the name, address and telephone 
number of the new responsible party along with a statement that the 
product has been modified. Alternatively, the party modifying the 
equipment could obtain a new equipment authorization.
    5. Finally, the Commission amended the regulations regarding 
authorization under the verification procedure to clarify what 
information needs to be retained by the responsible party, to indicate 
the time period within which requests by the Commission for product 
samples must be submitted, and to identify the party that is 
responsible for submitting those samples.

Final Regulatory Flexibility Analysis

    6. As required by Section 603 of the Regulatory Flexibility Act, 5 
U.S.C. 603 (``RFA''), an Initial Regulatory Flexibility Analysis 
(``IRFA'') was incorporated into the Notice of Proposed Rule Making 
(``NPRM''), in ET Docket No. 94-45.<SUP>1 The Commission sought written 
public comments on the proposals in the Notice, including the IRFA. The 
Commission's Final Regulatory Flexibility Analysis (``FRFA'') in this 
Report and Order conforms to the RFA, as amended by the Contract With 
America Advancement Act of 1996 (CWAAA), Public Law 104-121, 110 Stat. 
847 (1996).<SUP>2
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    \1\ See 9 FCC Rcd 2702 (1994), 59 FR 31966, June 21, 1994.
    \2\ Subtitle II of the CWAAA is ``The Small Business Regulatory 
Enforcement Fairness Act of 1996'' (SBREFA), codified at 5 U.S.C. 
601 et seq.
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7. Need For and Objective of the Rules

    Our objectives are to facilitate the marketing and early use of 
radio frequency (RF) devices by permitting vendors, manufacturers, and 
importers to market such devices prior to a demonstration of compliance 
with applicable technical standards and equipment authorization 
procedures, and to promote efficiency and equity in our rules by 
requiring that any party that modifies an RF device be responsible for 
ensuring compliance with applicable technical standards. This action 
will also facilitate the retrieval of RF device test records by the 
Commission, remove outdated regulations, and correct existing errors 
and ambiguities in the rules.

8. Summary of Significant Issues Raised by Public Comments in Response 
to the IRFA

    No comments were submitted in direct response to the IRFA. However, 
Alcatel Network Systems, Inc. (ANS), AT&T Corp., Computer and Business 
Equipment Manufacturer's Association (CBEMA) and International Business 
Machines Corp. (IBM) suggested changes to our proposed reporting and 
record keeping requirements for modified RF devices. ANS and CBEMA 
oppose the proposal that a party modifying equipment be required to 
label the modified equipment with additional information, i.e., the 
name, address and telephone number of the party performing the 
modifications. AT&T, with support from ANS, CBEMA and IBM, requests 
that the party modifying the equipment not be required to obtain and 
retain the original equipment design drawings.

9. Description and Estimate of the Number of Small Entities to Which 
the Rules Will Apply

    For the purposes of this Order, the RFA defines a ``small 
business'' to be the same as a ``small business concern'' under the 
Small Business Act, 15 U.S.C. 632, unless the Commission has developed 
one or more definitions that are appropriate to its activities.<SUP>3 
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).<SUP>4 These new rules will 
apply to computer manufacturers and other RF device manufacturers as 
well as those entities that modify and market RF equipment.
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    \3\ See 5 U.S.C. 601(3) (incorporating by reference the 
definition of ``small business concern'' in 5 U.S.C. 632).
    \4\ See 15 U.S.C. 632.
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    (a) Computer Manufacturers: According to SBA regulations, a 
computer manufacturer must have 1,000 or fewer employees in order to 
qualify as a small entity.<SUP>5 Census Bureau data indicates that 
there are 716 firms that manufacture electronic computers and of those, 
659 have fewer than 500 employees and qualify as small entities.<SUP>6 
The remaining 57 firms have 500 or more employees; however, we are 
unable to determine how many of those have fewer than 1,000 employees

[[Page 10468]]

and therefore also qualify as small entities under the SBA definition.
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    \5\ See 13 CFR 121.201, (SIC) code 3571.
    \6\ See U.S. Small Business Administration 1995 Economic Census 
Industry and Enterprise Report, Table 3, SIC Code 3571, (Bureau of 
the Census data adapted by the Office of Advocacy of the U.S. Small 
Business Administration).
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    (b) RF Equipment Manufacturers: The Commission has not developed a 
definition of small entities applicable to RF equipment manufacturers. 
Therefore, we will utilize the SBA definition applicable to 
manufacturers of Radio and Television Broadcasting and Communications 
Equipment. According to the SBA's regulations, an RF equipment 
manufacturer must have 750 or fewer employees in order to qualify as a 
small business concern.<SUP>7 Census Bureau data indicates that there 
are 858 U.S. companies that manufacture radio and television 
broadcasting and communications equipment, and that 778 of these firms 
have fewer than 750 employees and would be classified as small 
entities.<SUP>8 The Census Bureau category is very broad, and specific 
figures are not available as to how many of these firms are 
manufacturers of RF devices. However, we believe that many of them may 
qualify as small entities.
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    \7\ See 13 CFR 121.201, (SIC) Code 3663.
    \8\ See U.S. Dept. of Commerce, 1992 Census of Transportation, 
Communications and Utilities (issued May 1995), SIC category 3663.
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    10. The Commission has not developed a definition of small entities 
applicable to services which are related specifically to RF devices. 
Therefore, the applicable definition of small entity is the definition 
under the Small Business Administration (SBA) rules applicable to 
Communications Services, Not Elsewhere Classified. This definition 
provides that a small entity is expressed as one with $11.0 million or 
less in annual receipts.<SUP>9 The Census Bureau data indicates that of 
the 848 firms in the ``Communications Services, Not Elsewhere 
Classified'' category, 775 are small businesses.<SUP>10 We estimate 
that under this definition the majority of entities that market and 
modify RF devices may be small entities.
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    \9\ See 13 CFR 121.201, Standard Industrial Classification (SIC) 
Code 4899.
    \10\ See U.S. Small Business Administration 1995 Economic Census 
Industry and Enterprise Report, Table 2D, SIC Code 3571, (Bureau of 
the Census data adapted by the Office of Advocacy of the U.S. Small 
Business Administration).
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11. Description of Projected Reporting, Recordkeeping and Other 
Compliance Requirements

    Our new rules transfer the responsibility for ensuring that a 
modified RF device complies with our technical standards from the 
vendor, manufacturer, or importer to the modifying party. However, 
requirements to measure the equipment to show that it continues to 
comply with these standards are consistent with the former rules. 
Further, even under the former rules--while they were not clearly 
defined--a party modifying an RF device was required to retain its 
measurement data showing that the modified device complied with these 
standards. A modifying party must also label the equipment with its 
name, address and telephone number, unless it obtains a new 
authorization for the modified equipment. The type of skills needed to 
label equipment is usually clerical.
    12. Under our new rules greater flexibility will be provided to 
vendors, manufacturers, and importers, thus decreasing the regulatory 
burden on such entities. Further, when an RF device is modified, any 
increased reporting and record keeping requirement imposed on the 
modifying party will be offset by a decreased reporting requirement on 
the vendor, manufacturer, or importer. Moreover, there is no 
requirement that any RF device be modified. Therefore, to the extent 
that a small entity chooses to modify an RF device, it is because that 
entity believes the benefits of modifying the device outweigh its 
costs, including reporting and record keeping requirements.

13. Significant Alternatives and Steps Taken to Minimize Significant 
Economic Impact on a Substantial Number of Small Entities Consistent 
with Stated Objectives

    As proposed in the NPRM, any entity that remanufactures or 
otherwise modifies an authorized RF device would be designated as 
responsible for ensuring that the device continues to comply with our 
applicable technical standards, and would be required to retain records 
of its modification relative to the original design drawings. However, 
after reviewing comments, we conclude that it is unnecessary for the 
modifying party to obtain the original design drawings. Accordingly, in 
this Report and Order, we are requiring only that the modifying party 
retain records showing the changes made to the device, together with 
test records demonstrating that the device continues to comply with the 
applicable standards.<SUP>11 We also are changing another proposal in 
the NPRM by not requiring that a modified RF device be labelled with 
the name, address, and telephone number of the modifying party, 
provided the party performing the modifications obtains a new equipment 
authorization. These changes will reduce the impact of our new 
regulations on small entities.
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    \11\ See paras. 28-29 of this Report and Order.
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14. Report to Congress

    The Commission shall send a copy of this Final Regulatory 
Flexibility Analysis, along with this Report and Order, in a report to 
Congress pursuant to the Small Business Regulatory Enforcement Fairness 
Act of 1996, 5 U.S.C. 801(a)(1)(A).

List of Subjects in 47 CFR Part 2

    Communications equipment, Radio, Reporting and recordkeeping 
requirements.

Federal Communications Commission.
William F. Caton,
Acting Secretary.

Rule Changes

    Title 47 of the Code of Federal Regulations, Part 2, is amended as 
follows:

PART 2--FREQUENCY ALLOCATIONS AND RADIO TREATY MATTERS; GENERAL 
RULES AND REGULATIONS

    1. The authority citation for Part 2 continues to read as follows:

    Authority: Sections 4, 302, 303, and 307 of the Communications 
Act of 1934, as amended, 47 U.S.C. Sections 154, 302, 303, and 307, 
unless otherwise noted.

    2. Section 2.803 is revised to read as follows:


Sec. 2.803  Marketing of radio frequency devices prior to equipment 
authorization.

    (a) Except as provided elsewhere in this section, no person shall 
sell or lease, or offer for sale or lease (including advertising for 
sale or lease), or import, ship, or distribute for the purpose of 
selling or leasing or offering for sale or lease, any radio frequency 
device unless:
    (1) In the case of a device subject to type acceptance, 
certification, or notification, such device has been authorized by the 
Commission in accordance with the rules in this chapter and is properly 
identified and labelled as required by Sec. 2.925 and other relevant 
sections in this chapter; or
    (2) In the case of a device that is not required to have a grant of 
equipment authorization issued by the Commission, but which must comply 
with the specified technical standards prior to use, such device also 
complies with all applicable administrative (including verification of 
the equipment or authorization under a Declaration of Conformity, where 
required), technical, labelling and identification requirements 
specified in this chapter.
    (b) The provisions of paragraph (a) of this section do not prohibit 
conditional sales contracts between manufacturers

[[Page 10469]]

and wholesalers or retailers where delivery is contingent upon 
compliance with the applicable equipment authorization and technical 
requirements, nor do they prohibit agreements between such parties to 
produce new products, manufactured in accordance with designated 
specifications.
    (c) Notwithstanding the provisions of paragraphs (a), (b), (d) and 
(f) of this section, a radio frequency device may be advertised or 
displayed, e.g., at a trade show or exhibition, prior to equipment 
authorization or, for devices not subject to the equipment 
authorization requirements, prior to a determination of compliance with 
the applicable technical requirements provided that the advertising 
contains, and the display is accompanied by, a conspicuous notice 
worded as follows:

    This device has not been authorized as required by the rules of 
the Federal Communications Commission. This device is not, and may 
not be, offered for sale or lease, or sold or leased, until 
authorization is obtained.

    (1) If the product being displayed is a prototype of a product that 
has been properly authorized and the prototype, itself, is not 
authorized due to differences between the prototype and the authorized 
product, the following disclaimer notice may be used in lieu of the 
notice stated in paragraph (c) introductory text of this section:

    Prototype. Not for sale.

    (2) Except as provided elsewhere in this chapter, devices displayed 
under the provisions of paragraphs (c) introductory text, and (c)(1) of 
this section may not be activated or operated.
    (d) Notwithstanding the provisions of paragraph (a) of this 
section, the offer for sale solely to business, commercial, industrial, 
scientific or medical users (but not an offer for sale to other parties 
or to end users located in a residential environment) of a radio 
frequency device that is in the conceptual, developmental, design or 
pre-production stage is permitted prior to equipment authorization or, 
for devices not subject to the equipment authorization requirements, 
prior to a determination of compliance with the applicable technical 
requirements provided that the prospective buyer is advised in writing 
at the time of the offer for sale that the equipment is subject to the 
FCC rules and that the equipment will comply with the appropriate rules 
before delivery to the buyer or to centers of distribution. If a 
product is marketed in compliance with the provisions of this 
paragraph, the product does not need to be labelled with the statement 
in paragraph (c) of this section.
    (e)(1) Notwithstanding the provisions of paragraph (a) of this 
section, prior to equipment authorization or determination of 
compliance with the applicable technical requirements any radio 
frequency device may be operated, but not marketed, for the following 
purposes and under the following conditions:
    (i) Compliance testing;
    (ii) Demonstrations at a trade show provided the notice contained 
in paragraph (c) of this section is displayed in a conspicuous location 
on, or immediately adjacent to, the device;
    (iii) Demonstrations at an exhibition conducted at a business, 
commercial, industrial, scientific, or medical location, but excluding 
locations in a residential environment, provided the notice contained 
in paragraphs (c) or (d) of this section, as appropriate, is displayed 
in a conspicuous location on, or immediately adjacent to, the device;
    (iv) Evaluation of product performance and determination of 
customer acceptability, provided such operation takes place at the 
manufacturer's facilities during developmental, design, or pre-
production states; or
    (v) Evaluation of product performance and determination of customer 
acceptability where customer acceptability of a radio frequency device 
cannot be determined at the manufacturer's facilities because of size 
or unique capability of the device, provided the device is operated at 
a business, commercial, industrial, scientific, or medical user's site, 
but not at a residential site, during the development, design or pre-
production stages. A product operated under this provision shall be 
labelled, in a conspicuous location, with the notice in paragraph (c) 
of this section.
    (2) For the purpose of paragraphs (e)(1)(iv) and (e)(1)(v) of this 
section, the term ``manufacturer's facilities'' includes the facilities 
of the party responsible for compliance with the regulations and the 
manufacturer's premises, as well as the facilities of other entities 
working under the authorization of the responsible party in connection 
with the development and manufacture, but not marketing, of the 
equipment.
    (3) The provisions of paragraphs (e)(1)(i), (e)(1)(ii), 
(e)(1)(iii), (e)(1)(iv), and (e)(1)(v) of this section do not eliminate 
any requirements for station licenses for products that normally 
require a license to operate, as specified elsewhere in this chapter. 
Manufacturers should note that station licenses are not required for 
some products, e.g., products operating under part 15 of this chapter 
and certain products operating under part 95 of this chapter.
    (4) Marketing, as used in this section, includes sale or lease, or 
offering for sale or lease, including advertising for sale or lease, or 
importation, shipment, or distribution for the purpose of selling or 
leasing or offering for sale or lease.
    (5) Products operating under the provisions of this paragraph (e) 
shall not be recognized to have any vested or recognizable right to 
continued use of any frequency. Operation is subject to the conditions 
that no harmful interference is caused and that any interference 
received must be accepted. Operation shall be required to cease upon 
notification by a Commission representative that the device is causing 
harmful interference and shall not resume until the condition causing 
the harmful interference is corrected.
    (f) For radio frequency devices subject to verification and sold 
solely to business, commercial, industrial, scientific, and medical 
users (excluding products sold to other parties or for operation in a 
residential environment), parties responsible for verification of the 
devices shall have the option of ensuring compliance with the 
applicable technical specifications of this chapter at each end user's 
location after installation, provided that the purchase or lease 
agreement includes a proviso that such a determination of compliance be 
made and is the responsibility of the party responsible for 
verification of the equipment. If the purchase or lease agreement 
contains this proviso and the responsible party has the product 
measured to ensure compliance at the end user's location, the product 
does not need to be labelled with the statement in paragraph (c) of 
this section.
    (g) The provisions in paragraphs (b) through (f) of this section 
apply only to devices that are designed to comply with, and to the best 
of the responsible party's knowledge will, upon testing, comply with 
all applicable requirements in this chapter. The provisions in 
paragraphs (b) through (f) of this section do not apply to radio 
frequency devices that could not be authorized or legally operated 
under the current rules. Such devices shall not be operated, 
advertised, displayed, offered for sale or lease, sold or leased, or 
otherwise marketed absent a license issued under part 5 of this chapter 
or a special temporary authorization issued by the Commission.

[[Page 10470]]

    (h) The provisions in subpart K of this part continue to apply to 
imported radio frequency devices.


Sec. 2.805  [Removed]

    3. Section 2.805 is removed.


Sec. 2.806  [Removed]

    4. Section 2.806 is removed.
    5. Section 2.807 is amended by revising the introductory paragraph 
to read as follows:


Sec. 2.807  Statutory exceptions.

    As provided by Section 302(c) of the Communications Act of 1934, as 
amended, Sec. 2.803 shall not be applicable to:
* * * * *


Sec. 2.809  [Removed]

    6. Section 2.809 is removed.
    7. Section 2.811 is revised to read as follows:


Sec. 2.811  Transmitters operated under part 73 of this chapter.

    Section 2.803(a) through (d) shall not be applicable to a 
transmitter operated in any of the Radio Broadcast Services regulated 
under part 73 of this chapter, provided the conditions set out in part 
73 of this chapter for the acceptability of such transmitter for use 
under licensing are met.
    8. Section 2.813 is revised to read as follows:


Sec. 2.813  Transmitters operated in the Instructional Television Fixed 
Service.

    Section 2.803(a) through (d) shall not be applicable to a 
transmitter operated in the Instructional Television Fixed Service 
regulated under part 74 of this chapter, provided the conditions in 
Sec. 74.952 of this chapter for the acceptability of such transmitter 
for licensing are met.
    9. Section 2.815 is amended by revising paragraphs (d) and (e) to 
read as follows:


Sec. 2.815  External radio frequency power amplifiers.

* * * * *
    (d) The proscription in paragraph (b) of this section shall not 
apply to the marketing, as defined in paragraph (b) of this section, by 
a licensed amateur radio operator to another licensed amateur radio 
operator of an external radio frequency power amplifier fabricated in 
not more than one unit of the same model in a calendar year by that 
operator provided the amplifier is for the amateur operator's personal 
use at his licensed amateur radio station and the requirements of 
Secs. 97.315 and 97.317 of this chapter are met.
    (e) The proscription in paragraph (c) of this section shall not 
apply in the marketing, as defined in paragraph (c) of this section, by 
a licensed amateur radio operator to another licensed amateur radio 
operator of an external radio frequency power amplifier if the 
amplifier is for the amateur operator's personal use at his licensed 
amateur radio station and the requirements of Secs. 97.315 and 97.317 
of this chapter are met.


Sec. 2.901  [Amended]

    10. Section 2.901 is amended by removing the words in paragraphs 
(a) and (b) ``type approval,''.


Sec. 2.903  [Removed]

    11. Section 2.903 is removed.
    12. Section 2.909 is amended by adding a last sentence to 
paragraphs (a) and (b) and by adding new paragraphs (c)(3) and (d) to 
read as follows:


Sec. 2.909  Responsible party.

* * * * *
    (a) * * * If the radio frequency equipment is modified by any party 
other than the grantee and that party is not working under the 
authorization of the grantee pursuant to Sec. 2.929(b), the party 
performing the modification is responsible for compliance of the 
product with the applicable administrative and technical provisions in 
this chapter.
    (b) * * * If subsequent to manufacture and importation, the radio 
frequency equipment is modified by any party not working under the 
authority of the responsible party, the party performing the 
modification becomes the new responsible party.
    (c) * * *
    (3) If the radio frequency equipment is modified by any party not 
working under the authority of the responsible party, the party 
performing the modifications, if located within the U.S., or the 
importer, if the equipment is imported subsequent to the modifications, 
becomes the new responsible party.
    (d) If, because of modifications performed subsequent to 
authorization, a new party becomes responsible for ensuring that a 
product complies with the technical standards and the new party does 
not obtain a new equipment authorization, the equipment shall be 
labelled, following the specifications in Sec. 2.925(d), with the 
following: ``This product has been modified by [insert name, address 
and telephone number of the party performing the modifications].''
    13. Section 2.913 is amended by revising paragraph (a) to read as 
follows:


Sec. 2.913  Submittal of equipment authorization application or 
information to the Commission.

    (a) Unless otherwise directed, applications with fees attached for 
the equipment authorization, pursuant to Sec. 1.1103 of this chapter, 
must be submitted following the procedures described in Sec. 0.401(b) 
of this chapter. The address for applications submitted by mail is: 
Federal Communications Commission, Equipment Approval Services, P. O. 
Box 358315, Pittsburgh, PA 15251-5315. If the applicant chooses to make 
use of an air courier/package delivery service, the following address 
must appear on the outside of the package/envelope: Federal 
Communications Commission, c/o Mellon Bank, Three Mellon Bank Center, 
525 William Penn Way, 27th floor, Room 153-2713, Pittsburgh, 
Pennsylvania 15259-0001, Attention: Wholesale Lockbox Supervisor.
* * * * *


Sec. 2.915  [Amended]

    14. Section 2.915 is amended by removing the words ``type 
approval,'' in paragraphs (a) introductory text and (c).


Sec. 2.917  [Amended]

    15. Section 2.917 is amended by removing paragraph (d).
    16. Section 2.924 is revised to read as follows:


Sec. 2.924  Marketing of electrically identical equipment having 
multiple trade names and models or type numbers under the same FCC 
Identifier.

    The grantee of an equipment authorization may market devices having 
different model/type numbers or trade names without additional 
authorization from the Commission, provided that such devices are 
electrically identical and the equipment bears an FCC Identifier 
validated by a grant of equipment authorization. A device will be 
considered to be electrically identical if no changes are made to the 
device authorized by the Commission, or if the changes made to the 
device would be treated as class I permissive changes within the scope 
of Secs. 2.1001(b)(1) and 2.1043(b)(1). Changes to the model number or 
trade name by anyone other than the grantee, or under the authorization 
of the grantee, shall be performed following the procedures in 
Sec. 2.933.
    17. Section 2.925 is amended by removing paragraph (g) and by 
revising paragraphs (b)(4), (d) introductory text and (f) to read as 
follows:


Sec. 2.925  Identification of equipment.

* * * * *
    (b) * * *

[[Page 10471]]

    (4) For a transceiver, the receiver portion of which is subject to 
verification pursuant to Sec. 15.101 of this chapter, the FCC 
Identifier required for the transmitter portion shall be preceded by 
the term ``FCC ID''.
* * * * *
    (d) In order to validate the grant of equipment authorization, the 
nameplate or label shall be permanently affixed to the equipment and 
shall be readily visible to the purchaser at the time of purchase.
* * * * *
    (f) The term ``FCC ID'' and the coded identification assigned by 
the Commission shall be in a size of type large enough to be readily 
legible, consistent with the dimensions of the equipment and its 
nameplate. However, the type size for the FCC Identifier is not 
required to be larger than eight-point.


Sec. 2.926  [Amended]

    18. Section 2.926 is amended by removing the reference in paragraph 
(e) ``Sec. 15.69'' and adding in its place ``Sec. 15.101 of this 
chapter''.
    19. Section 2.927 is amended by removing paragraph (d) and by 
revising paragraphs (a) and (b) to read as follows:


Sec. 2.927  Limitations on grants.

    (a) A grant of equipment authorization is valid only when the FCC 
Identifier is permanently affixed on the device and remains effective 
until revoked or withdrawn, rescinded, surrendered, or a termination 
date is otherwise established by the Commission.
    (b) A grant of an equipment authorization signifies that the 
Commission has determined that the equipment has been shown to be 
capable of compliance with the applicable technical standards if no 
unauthorized change is made in the equipment and if the equipment is 
properly maintained and operated. The issuance of a grant of equipment 
authorization shall not be construed as a finding by the Commission 
with respect to matters not encompassed by the Commission's rules, 
especially with respect to compliance with 18 U.S.C. 2512.
* * * * *
    20. Section 2.929 is amended by revising paragraph (b)(1) and its 
Note to read as follows:


Sec. 2.929  Nonassignability of an equipment authorization.

* * * * *
    (b) * * *
    (1) The equipment manufactured by such second party bears the 
identical FCC Identifier as set out in the grant of the equipment 
authorization.

    Note to paragraph (b)(1): Any change in the FCC Identifier desired 
as a result of such production or marketing agreement will require the 
filing of a new application for an equipment authorization as specified 
in Sec. 2.933.
* * * * *
    21. Section 2.931 is revised to read as follows:


Sec. 2.931  Responsibility of the grantee.

    In accepting a grant of an equipment authorization, the grantee 
warrants that each unit of equipment marketed under such grant and 
bearing the identification specified in the grant will conform to the 
unit that was measured and that the data (design and rated operational 
characteristics) determined by the grantee for notification or filed 
with the application for type acceptance or certification continues to 
be representative of the equipment being produced under such grant 
within the variation that can be expected due to quantity production 
and testing on a statistical basis.
    22. Section 2.932 is amended by adding new paragraph (f) to read as 
follows:


Sec. 2.932  Modification of equipment.

* * * * *
    (f) All requests for permissive changes submitted to the Commission 
must be accompanied by the anti-drug abuse certification required under 
Sec. 1.2002 of this chapter.
    23. Section 2.933 is amended by revising paragraphs (a), (b)(7) and 
(c) to read as follows:


Sec. 2.933  Change in identification of equipment.

    (a) A new application for equipment authorization shall be filed 
whenever there is a change in the FCC Identifier for the equipment with 
or without a change in design, circuitry or construction. However, a 
change in the model/type number or trade name performed in accordance 
with the provisions in Sec. 2.924 is not considered to be a change in 
identification and does not require additional authorization from the 
Commission.
    (b) * * *
    (7) In the case of certified equipment, the photographs required by 
Sec. 2.1033(b)(7) showing the exterior appearance of the equipment, 
including the operating controls available to the user and the 
identification label. Photographs of the construction, the component 
placement on the chassis, and the chassis assembly are not required to 
be submitted unless specifically requested by the Commission.
    (c) If the change in the FCC Identifier also involves a change in 
design or circuitry which falls outside the purview of a permissive 
change described in Secs. 2.977, 2.1001 or 2.1043, a complete 
application shall be filed pursuant to Sec. 2.911.


Sec. 2.934  [Amended]

    24. Section 2.934 is amended by removing the reference 
``Sec. 2.910(b)'' and adding in its place ``Sec. 2.913(b)''.
    25. Section 2.936 is revised to read as follows:


Sec. 2.936  FCC inspection.

    Upon reasonable request, each responsible party shall submit the 
following to the Commission or shall make the following available for 
inspection:
    (a) The records required by Secs. 2.938, 2.955, and 2.1075.
    (b) A sample unit of the equipment covered under an authorization.
    (c) The manufacturing plant and facilities.
    26. Section 2.938 is revised to read as follows:


Sec. 2.938  Retention of records.

    (a) For each equipment subject to the Commission's equipment 
authorization standards, the responsible party shall maintain the 
records listed as follows:
    (1) A record of the original design drawings and specifications and 
all changes that have been made that may affect compliance with the 
standards and the requirements of Sec. 2.931.
    (2) A record of the procedures used for production inspection and 
testing to ensure conformance with the standards and the requirements 
of Sec. 2.931.
    (3) A record of the test results that demonstrate compliance with 
the appropriate regulations in this chapter.
    (b) The provisions of paragraph (a) of this section shall also 
apply to a manufacturer of equipment produced under the provisions of 
Sec. 2.929(b). The retention of the records by the manufacturer under 
these circumstances shall satisfy the grantee's responsibility under 
paragraph (a) of this section.
    (c) The records listed in paragraph (a) of this section shall be 
retained for one year for equipment subject to authorization under the 
type acceptance or certification procedure, or for two years for 
equipment subject to authorization under any other procedure, after the 
manufacture of said equipment has been permanently discontinued, or 
until the conclusion of an investigation or a proceeding if the 
responsible party (or under paragraph (b) of this section the 
manufacturer) is officially notified that an investigation

[[Page 10472]]

or any other administrative proceeding involving its equipment has been 
instituted.
    (d) If radio frequency equipment is modified by any party other 
than the original responsible party, and that party is not working 
under the authorization of the original responsible party, the party 
performing the modifications is not required to obtain the original 
design drawings specified in paragraph (a)(1) of this section. However, 
the party performing the modifications must maintain records showing 
the changes made to the equipment along with the records required in 
paragraphs (a)(3) of this section. A new equipment authorization may 
also be required. See, for example, Secs. 2.909, 2.924, 2.933, and 
2.1043.
    27. Section 2.941 is revised to read as follows:


Sec. 2.941  Availability of information relating to grants.

    (a) Grants of equipment authorization, other than for receivers and 
equipment authorized for use under parts 15 or 18 of this chapter, will 
be publicly announced in a timely manner by the Commission. Information 
about the authorization of a device using a particular FCC Identifier 
may be obtained by contacting the Commission's Office of Engineering 
and Technology Laboratory.
    (b) Information relating to equipment authorizations, such as data 
submitted by the applicant in connection with an authorization 
application, laboratory tests of the device, etc., shall be available 
in accordance with Secs. 0.441 through 0.470 of this chapter.
    28. Section 2.953 is amended by revising the section heading and 
paragraphs (a), (b) and (d) to read as follows:


Sec. 2.953  Responsibility for compliance.

    (a) In verifying compliance, the responsible party, as defined in 
Sec. 2.909 warrants that each unit of equipment marketed under the 
verification procedure will be identical to the unit tested and found 
acceptable with the standards and that the records maintained by the 
responsible party continue to reflect the equipment being produced 
under such verification within the variation that can be expected due 
to quantity production and testing on a statistical basis.
    (b) The importer of equipment subject to verification may upon 
receiving a written statement from the manufacturer that the equipment 
complies with the appropriate technical standards rely on the 
manufacturer or independent testing agency to verify compliance. The 
test records required by Sec. 2.955 however should be in the English 
language and made available to the Commission upon a reasonable 
request, in accordance with Sec. 2.956.
* * * * *
    (d) Verified equipment shall be reverified if any modification or 
change adversely affects the emanation characteristics of the modified 
equipment. The party designated in Sec. 2.909 bears responsibility for 
continued compliance of subsequently produced equipment.
    29. Section 2.954 is revised to read as follows:


Sec. 2.954  Identification.

    Devices subject only to verification shall be uniquely identified 
by the person responsible for marketing or importing the equipment 
within the United States. However, the identification shall not be of a 
format which could be confused with the FCC Identifier required on 
certified, notified or type accepted equipment. The importer or 
manufacturer shall maintain adequate identification records to 
facilitate positive identification for each verified device.
    30. Section 2.955 is amended by revising the introductory text of 
paragraph (a) and paragraph (a)(3) to read as follows:


Sec. 2.955  Retention of records.

    (a) For each equipment subject to verification, the responsible 
party, as shown in Sec. 2.909 shall maintain the records listed as 
follows:
* * * * *
    (3) A record of the measurements made on an appropriate test site 
that demonstrates compliance with the applicable regulations in this 
chapter. The record shall:
    (i) Indicate the actual date all testing was performed;
    (ii) State the name of the test laboratory, company, or individual 
performing the verification testing. The Commission may request 
additional information regarding the test site, the test equipment or 
the qualifications of the company or individual performing the 
verification tests;
    (iii) Contain a description of how the device was actually tested, 
identifying the measurement procedure and test equipment that was used;
    (iv) Contain a description of the equipment under test (EUT) and 
support equipment connected to, or installed within, the EUT;
    (v) Identify the EUT and support equipment by trade name and model 
number and, if appropriate, by FCC Identifier and serial number;
    (vi) Indicate the types and lengths of connecting cables used and 
how they were arranged or moved during testing;
    (vii) Contain at least two drawings or photographs showing the test 
set-up for the highest line conducted emission and showing the test 
set-up for the highest radiated emission. These drawings or photographs 
must show enough detail to confirm other information contained in the 
test report. Any photographs used must be focused originals without 
glare or dark spots and must clearly show the test configuration used;
    (viii) List all modifications, if any, made to the EUT by the 
testing company or individual to achieve compliance with the 
regulations in this chapter;
    (ix) Include all of the data required to show compliance with the 
appropriate regulations in this chapter; and
    (x) Contain, on the test report, the signature of the individual 
responsible for testing the product along with the name and signature 
of an official of the responsible party, as designated in Sec. 2.909.
* * * * *
    31. Section 2.956 is revised to read as follows:


Sec. 2.956  FCC inspection and submission of equipment for testing.

    (a) Each responsible party shall upon receipt of reasonable 
request:
    (1) Submit to the Commission the records required by Sec. 2.955.
    (2) Submit one or more sample units for measurements at the 
Commission's Laboratory.
    (i) Shipping costs to the Commission's Laboratory and return shall 
be borne by the responsible party.
    (ii) In the event the responsible party believes that shipment of 
the sample to the Commission's Laboratory is impractical because of the 
size or weight of the equipment, or the power requirement, or for any 
other reason, the responsible party may submit a written explanation 
why such shipment is impractical and should not be required.
    (b) Requests for the submission of the records in Sec. 2.955 or for 
the submission of sample units are covered under the provisions of 
Sec. 2.946.


Sec. 2.957  [Removed]

    32. Section 2.957 is removed.


Secs. 2.961, 2.963, 2.965, 2.967, 2.969  [Removed]

    33. The undesignated centerheading preceding Sec. 2.961 and 
Sec. 2.961 are removed.
    34. Section 2.963 is removed.
    35. Section 2.965 is removed.
    36. Section 2.967 is removed.
    37. Section 2.969 is removed.

[[Page 10473]]

    38. Section 2.975 is amended by revising paragraphs (b) and (g) to 
read as follows:


Sec. 2.975  Application for notification.

* * * * *
    (b) The statement required in paragraph (a)(6) of this section 
shall be signed pursuant to Sec. 2.911(c).
* * * * *
    (g) The records of measurement data, measurement procedures, 
photographs, circuit diagrams, etc. for a device subject to 
notification shall be retained for two years after the manufacture of 
said equipment has been permanently discontinued, or, if the 
responsible party is officially notified that an investigation or any 
other administrative proceeding involving the equipment has been 
instituted prior to the expiration of such two year period, until the 
conclusion of that investigation or proceeding.


Sec. 2.979  [Removed]

    39. Section 2.979 is removed.


Sec. 2.983  [Amended]

    40. Section 2.983 is amended by removing and reserving paragraph 
(h) and by removing the reference ``subpart C of part 97'' in the last 
sentence of paragraph (i) and adding in its place ``subpart D of part 
97''.


Sec. 2.1003  [Removed]

    41. Section 2.1003 is removed.
    42. Section 2.1005 is amended by revising paragraph (a), the 
introductory text of paragraphs (c) and (c)(4) and paragraph (d) to 
read as follows:


Sec. 2.1005  Equipment for use in the Amateur Radio Service.

    (a) The general provisions of Secs. 2.981, 2.983, 2.991, 2.993, 
2.997, 2.999, and 2.1001 shall apply to applications for, and grants 
of, type acceptance for equipment operated under the requirements of 
part 97 of this chapter, the Amateur Radio Service.
* * * * *
    (c) Any supplier of an external radio frequency power amplifier kit 
as defined by Sec. 97.3(a)(17) of this chapter shall comply with the 
following requirements:
* * * * *
    (4) The identification label required by Sec. 2.925 shall be 
permanently affixed to the assembled unit and shall be of sufficient 
size so as to be easily read. The following information shall be shown 
on the label:
* * * * *
    (d) Type acceptance of external radio frequency power amplifiers 
and amplifier kits may be denied when denial serves the public 
interest, convenience and necessity by preventing the use of these 
amplifiers in services other than the Amateur Radio Service. Other uses 
of these amplifiers, such as in the Citizens Band Radio Service, are 
prohibited (Sec. 95.411 of this chapter). Examples of features which 
may result in the denial of type acceptance are contained in 
Sec. 97.317 of this chapter.


Sec. 2.1033  [Amended]

    43. Section 2.1033 is amended by removing and reserving paragraph 
(b)(10) and by removing the reference ``Sec. 15.257(e)'' in paragraph 
(b)(11) and adding in its place ``Sec. 15.247(e)''.


Sec. 2.1045  [Removed]

    44. Section 2.1045 is removed.
    45. Section 2.1300 is revised to read as follows:


Sec. 2.1300  Cross reference.

    The general provisions of this part, Secs. 2.911, 2.923, 2.929, 
2.935, 2.936, and 2.946 shall apply to applications for and grants of 
registration for telephone terminal equipment pursuant to part 68 of 
this chapter.
[FR Doc. 97-5349 Filed 3-5-97; 8:45 am]
BILLING CODE 6712-01-P