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Before the
Federal Communications Commission
Washington, D.C. 20554
)
)
File No.: EB-09-IH-1946
In the Matter of )
Acct. No.: 201232080014
StanaCard, LLC )
FRN: 0018463380
)
))
ORDER
Adopted: February 22, 2012 Released: February 22, 2012
By the Chief, Enforcement Bureau:
1. In this Order, we adopt the attached Consent Decree entered between
the Enforcement Bureau (Bureau) of the Federal Communications
Commission (Commission) and StanaCard, LLC (StanaCard). The Consent
Decree terminates an investigation by the Bureau against StanaCard for
possible violations of Sections 214 and 225 of the Communications Act
of 1934, as amended (Act) and Sections 63.18, 64.604(c)(5)(iii)(A),
and 64.1195(a) of the Commission's rules (Rules) concerning
authorization to provide facilities-based and resold international
common carrier communications services, contributions to the
Telecommunications Relay Services Fund, and registration with the
Commission.
2. A copy of the Consent Decree negotiated by the Bureau and StanaCard is
attached hereto and incorporated herein by reference.
3. After reviewing the terms of the Consent Decree and evaluating the
facts before us, we find that the public interest would be served by
adopting the Consent Decree and terminating the investigation.
4. In the absence of material new evidence relating to this matter, we
conclude that our investigation raises no substantial or material
questions of fact as to whether StanaCard possesses the basic
qualifications, including those related to character, to hold or
obtain any Commission license or authorization.
5. Accordingly, IT IS ORDERED that, pursuant to Section 4(i) of the Act
and Sections 0.111 and 0.311 of the Rules, the Consent Decree attached
to this Order IS ADOPTED.
6. IT IS FURTHER ORDERED that the above-captioned investigation IS
TERMINATED.
7. IT IS FURTHER ORDERED that a copy of this Order and Consent Decree
shall be sent by certified mail, return receipt requested, to Mr.
Cheng Yi Liu, Esq., Counsel to StanaCard, LLC, Law Offices of Thomas
K. Crowe, P.C., 1250 24th Street, NW, Suite 300, Washington DC 20037.
FEDERAL COMMUNICATIONS COMMISSION
P. Michele Ellison
Chief, Enforcement Bureau
Before the
Federal Communications Commission
Washington, D.C. 20554
)
)
File No.: EB-09-IH-1946
In the Matter of )
Acct. No.: 201232080014
StanaCard, LLC )
FRN: 0018463380
)
)
CONSENT DECREE
1. The Enforcement Bureau of the Federal Communications Commission and
StanaCard, LLC, by their authorized representatives, hereby enter into
this Consent Decree for the purpose of terminating the Bureau's
investigation into whether the Company violated Sections 214 and 225
of the Communications Act of 1934, as amended, and Sections 63.18,
64.604(c)(5)(iii)(A), and 64.1195(a) of the Commission's rules,
concerning authorization to provide facilities-based and resold
international common carrier communications services, contributions to
the Telecommunications Relay Services Fund, and registration with the
Commission.
I. DEFINITIONS
2. For the purposes of this Consent Decree, the following definitions
shall apply:
a. "Act" means the Communications Act of 1934, as amended, 47 U.S.C. S:
151 et seq.
b. "Adopting Order" means an Order of the Bureau adopting the terms of
this Consent Decree without change, addition, deletion, or
modification.
c. "Bureau" means the Enforcement Bureau of the Federal Communications
Commission.
d. "Commission" and "FCC" mean the Federal Communications Commission and
all of its bureaus and offices.
e. "Communications Laws" means collectively, the Act, the Rules, and the
published and promulgated orders and decisions of the Commission to
which StanaCard is subject by virtue of its business activities.
f. "Compliance Officer" means the individual designated as the person
responsible for administration of the Compliance Plan.
g. "Compliance Plan" means the compliance obligations and program
described in this Consent Decree at paragraph 12.
h. "Effective Date" means the date on which the Commission releases the
Adopting Order.
i. "Investigation" means the investigation commenced by the Bureau in
response to StanaCard's disclosure e-mail of August 20, 2009,
regarding the Company's compliance with Section 214 of the Act and
Part 63 of the Rules concerning StanaCard's obligation to obtain
Commission authorization before providing facilities-based or resold
international common carrier services, compliance with Part 64 of the
Rules regarding registration by interstate telecommunications
carriers, and compliance with Section 225 of the Act and Part 64 of
the Rules regarding interstate telecommunication carrier contributions
to the TRS Fund.
j. "Parties" means StanaCard and the Bureau, each of which is a "Party."
k. "Rules" means the Commission's regulations found in Title 47 of the
Code of Federal Regulations.
l. "StanaCard" or the "Company" means StanaCard, LLC and its
predecessors-in-interest and successors-in-interest.
m. "TRS Fund" means Telecommunications Relay Services Fund.
II. BACKGROUND
3. Section 214(a) of the Act prohibits any carrier from constructing,
extending, acquiring, or operating any line, and from engaging in
transmission through any such line, without first obtaining a
certificate of authorization from the Commission. While the Commission
has granted "blanket" Section 214 authority to carriers providing
domestic service, meaning that such carriers need not apply to the
Commission for such authority before providing domestic service, the
Commission has not done the same for providers of international
telecommunications services. Section 63.18 of the Rules requires any
carrier that seeks Section 214 authority "for provision of common
carrier communication services between the United States, its
territories or possessions, and a foreign point" to request such
authority by application. The application requirement applies to
carriers that provide facilities-based service or that resell the
service of another authorized carrier.
4. The Commission has been charged by Congress to establish, administer
and maintain various telecommunications regulatory programs, and to
fund these programs through assessments on the telecommunications
providers that benefit from them. To accomplish these goals, the
Commission established "a central repository of key facts about
carriers" through which it monitors the entry and operation of
interstate telecommunications providers to ensure, among other things,
that they are qualified to provide telecommunications service, do not
engage in fraud, and do not evade oversight. The Rules require that
upon entry or anticipated entry into interstate telecommunications
markets, telecommunications carriers register by submitting
information on FCC Form 499-A, also known as the Annual
Telecommunications Reporting Worksheet (Annual Worksheet or Form
499-A).
5. Section 225(b)(1) of the Act, which codifies Title IV of the Americans
with Disabilities Act of 1990, directs the Commission to "ensure that
interstate and intrastate telecommunications relay services are
available, to the extent possible and in the most efficient manner, to
hearing-impaired and speech-impaired individuals in the United
States." To that end, the Commission established the TRS Fund to
reimburse TRS providers for the costs of providing interstate
telecommunications relay services. Pursuant to Section
64.604(c)(5)(iii)(A) of the Rules, every provider of interstate
telecommunications services must contribute to the TRS Fund based upon
its end-user revenues.
6. StanaCard, a Delaware limited liability company, is a resale provider
primarily of international pre-paid telecommunications services. On
August 20, 2009, StanaCard disclosed to the Bureau that it apparently
had failed to comply with Sections 214 of the Act and Sections 63.18
and 64.1195(a) of the Rules because it had failed to obtain
authorization for the provision of international common carrier
communications services, and it had not timely registered with the
Commission. In response, the Bureau launched an investigation.
7. StanaCard registered with the Commission in February 2009, 23 months
after it commenced service. The Company made its 2008 contribution to
the TRS Fund approximately nine months late, and filed an application
for international Section 214 authorization 27 months after it had
started offering international service. On February 01, 2010, the
International Bureau of the Commission granted StanaCard's application
for the provision of global facilities-based and global resale
services.
III. TERMS OF AGREEMENT
8. Adopting Order. The Parties agree that the provisions of this Consent
Decree shall be subject to final approval by the Bureau by
incorporation of such provisions by reference in the Adopting Order.
9. Jurisdiction. StanaCard agrees that the Bureau has jurisdiction over
it and the matters contained in this Consent Decree and has the
authority to enter into and adopt this Consent Decree.
10. Effective Date: Violations. The Parties agree that this Consent Decree
shall become effective on the Effective Date. Upon release, the
Adopting Order and this Consent Decree shall have the same force and
effect as any other order of the Bureau. Any violation of the Adopting
Order or of the terms of this Consent Decree shall constitute a
separate violation of a Bureau order, entitling the Bureau to
exercise any rights and remedies attendant to the enforcement of a
Commission order.
11. Termination of Investigation. In express reliance on the covenants
and representations in this Consent Decree and to avoid further
expenditure of public resources, the Bureau agrees to terminate the
Investigation. In consideration for the termination of the
Investigation, StanaCard agrees to the terms, conditions, and
procedures contained herein. The Bureau further agrees that in the
absence of new material evidence, the Bureau will not use the facts
developed in the Investigation through the Effective Date of the
Consent Decree, or the existence of this Consent Decree, to institute,
on its own motion, any new proceeding, formal or informal, or take any
action on its own motion against StanaCard concerning the matters that
were the subject of the Investigation. The Bureau also agrees that in
the absence of new material evidence it will not use the facts
developed in the Investigation through the Effective Date of this
Consent Decree, or the existence of this Consent Decree, to institute
on its own motion any proceeding, formal or informal, or take any
action on its own motion against StanaCard with respect to StanaCard's
basic qualifications, including its character qualifications, to be a
Commission licensee or hold Commission authorizations.
12. Compliance Plan. StanaCard agrees that it will implement a
comprehensive Compliance Plan for the purpose of ensuring its
compliance with the Communications Laws. The Compliance Plan shall
include, at a minimum, the following components:
a. Compliance Officer. StanaCard shall designate a Compliance Officer,
as defined in paragraph two of this Consent Decree, within thirty
(30) calendar days of the Effective Date. The Compliance Officer
shall administer the Compliance Plan, supervise StanaCard's
compliance with the Communications Laws, and serve as the point of
contact on behalf of StanaCard for all FCC-related compliance
matters.
b. Compliance Manual. Within sixty (60) calendar days of the Effective
Date, the Compliance Officer shall develop and distribute a
Compliance Manual to StanaCard employees and others who perform
StanaCard's federal regulatory reporting and compliance-related
tasks, all of whom shall follow the procedures detailed in the
Compliance Manual. The Compliance Manual will include at a minimum
(i) an overview of the Commission's requirements, including the need
for international Section 214 authorization prior to providing
international common carrier telecommunications services; (ii) a
description of the regulatory requirements applicable to the accurate
and timely contributions to the TRS Fund pursuant to Section 225 of
the Act and Section 64.604 of the Rules; and (iii) instructions
regarding the Commission's registration requirement pursuant to
Section 64.1195 of the Rules, including the obligation to notify the
Commission of any changes to the information required as part of
registration.
c. Compliance Training Program. Within ninety (90) calendar days of the
Effective Date, and annually thereafter, StanaCard shall implement
and conduct a training program for all employees who perform duties
at StanaCard that trigger or may trigger compliance-related
responsibilities. StanaCard shall ensure that training and compliance
materials are provided to new and reassigned employees who are
responsible for fulfilling those obligations within the first thirty
(30) calendar days of employment or reassignment.
d. Review and Monitoring. StanaCard shall review the Compliance Manual
and Compliance Training Program at least annually to ensure they are
maintained in a proper manner and continue to address StanaCard's
compliance with federal regulatory reporting obligations. StanaCard
shall update the Compliance Manual and Compliance Training Program in
the event of changes and/or additions to the Communications Laws.
e. Compliance Reports. StanaCard shall file compliance reports with the
Commission ninety (90) calendar days after the Effective Date, twelve
(12) months after the Effective Date, twenty-four (24) months after
the Effective Date, and upon expiration of this Compliance Plan,
thirty-six (36) months after the Effective Date. Each compliance
report shall include a compliance certificate from the Compliance
Officer, as an agent of and on behalf of the Company, stating that
the Compliance Officer has personal knowledge that the Company: (i)
has established operating procedures intended to ensure compliance
with the terms and conditions of this Consent Decree and Sections 214
and 225 of the Act and Sections 63.18, 64.604(c)(5)(iii)(A), and
64.1195(a) of the Rules, together with an accompanying statement
explaining the basis for the Compliance Officer's certification; (ii)
has been utilizing those procedures since the previous Compliance
Report was submitted; and (iii) is not aware of any instances of
non-compliance. The certification must comply with Section 1.16 of
the Rules and be subscribed to as true under penalty of perjury in
substantially the form set forth therein. If the Compliance Officer
cannot provide the requisite certification, the Compliance Officer,
as an agent of and on behalf of the Company, shall provide the
Commission with a detailed explanation of: (i) any instances of
non-compliance with this Consent Decree and Sections 214 and 225 of
the Act and Sections 63.18, 64.604(c)(5)(iii)(A), and 64.1195(a) of
the Rules, and (ii) the steps that the Company has taken or will take
to remedy each instance of non-compliance and ensure future
compliance, and the schedule on which proposed remedial actions will
be taken. All compliance reports shall be submitted to the Chief,
Investigations and Hearings Division, Enforcement Bureau, Federal
Communications Commission, Room 4-C330, 445 12th Street, S.W.,
Washington, D.C. 20554, with a copy submitted electronically to
Theresa Z. Cavanaugh at Terry.Cavanaugh@fcc.gov, Pamela S. Kane at
Pamela.Kane@fcc.gov and to Robert B. Krinsky at
Robert.Krinsky@fcc.gov.
f. Reporting Non-Compliance. StanaCard shall report any non-compliance
with this Consent Decree, Sections 214 and 225 of the Act, Parts 63
and 64 of the Rules, and related Commission orders to the Bureau
within 30 calendar days after the discovery of non-compliance.
g. Termination Date of Compliance Plan. The requirements relating to
the Compliance Plan shall expire three (3) years after the Effective
Date, unless stated otherwise.
13. Section 208 Complaints; Subsequent Investigations. Nothing in this
Consent Decree shall prevent the Commission or its delegated authority
from adjudicating complaints filed pursuant to Section 208 of the Act
against StanaCard or its affiliates for alleged violations of the Act,
or for any other type of alleged misconduct, regardless of when such
misconduct took place. The Commission's adjudication of any such
complaint will be based solely on the record developed in that
proceeding. Except as expressly provided in this Consent Decree, this
Consent Decree shall not prevent the Commission from investigating new
evidence of noncompliance by StanaCard with the Communications Laws.
14. Voluntary Contribution. StanaCard agrees that it will make a
voluntary contribution to the United States Treasury in the amount of
one hundred thirty-six thousand dollars ($136,000.00), with an initial
payment of thirty-six thousand dollars ($36,000.00) and four (4)
quarterly installment payments of twenty-five thousand dollars
($25,000.00) paid over the course of a twelve-month period. The
initial payment of $36,000.00 shall be made within thirty (30)
calendar days of the Effective Date. The first $25,000 installment
shall be made within one hundred twenty (120) calendar days of the
Effective Date, the second $25,000 installment shall be made within
two hundred ten (210) calendar days of the Effective Date, the third
$25,000 installment shall be made within three hundred (300) calendar
days of the Effective Date, and the fourth $25,000 installment shall
be made within three hundred ninety (390) calendar days of the
Effective Date. The payments must include the Account Number and FRN
referenced in the caption to the Adopting Order. Payments by check or
money Order may be mailed to the Federal Communications Commission,
P.O. Box 979088, St. Louis, MO 63197-9000. Payments by overnight mail
may be sent to U.S. Bank - Government Lockbox #979088, SL-MO-C2-GL,
1005 Convention Plaza, St. Louis, MO 63101. Payments by wire transfer
may be made to ABA Number 021030004, receiving bank TREAS/NYC, and
account number 27000001. For payments by credit card, an FCC Form 159
(Remittance Advice) must be submitted. When completing the FCC Form
159, enter the Account number in block number 23A (call sign/other
ID), and enter the letters "FORF" in block number 24A (payment type
code). StanaCard shall send electronic notification of each
installment payment to Robert B. Krinsky at Robert.Krinsky@fcc.gov on
the dates payments are made.
15. Waivers. StanaCard waives any and all rights it may have to seek
administrative or judicial reconsideration, review, appeal or stay, or
to otherwise challenge or contest the validity of this Consent Decree
and the Adopting Order, provided the Bureau issues an Adopting Order,
adopting the Consent Decree without change, addition, modification, or
deletion. StanaCard shall retain the right to challenge Commission
interpretation of the Consent Decree or any terms contained herein. If
either Party (or the United States on behalf of the Commission) brings
a judicial action to enforce the terms of the Adopting Order, neither
StanaCard nor the Commission shall contest the validity of the Consent
Decree or the Adopting Order, and StanaCard shall waive any statutory
right to a trial de novo. StanaCard hereby agrees to waive any claims
it may have under the Equal Access to Justice Act, 5 U.S.C. S: 504,
and 47 C.F.R. S: 1.1501 et seq., relating to the matters addressed in
this Consent Decree.
16. Invalidity. In the event that this Consent Decree in its entirety is
rendered invalid by any court of competent jurisdiction, it shall
become null and void and may not be used in any manner in any legal
proceeding.
17. Subsequent Rule or Order. The Parties agree that if any provision of
the Consent Decree conflicts with any subsequent Rule or order adopted
by the Commission (except an order specifically intended to revise the
terms of this Consent Decree to which StanaCard does not expressly
consent) that provision will be superseded by such Commission Rule or
Order.
18. Successors and Assigns. StanaCard agrees that the provisions of this
Consent Decree shall be binding on its successors, assigns, and
transferees.
19. Final Settlement. The Parties agree and acknowledge that this Consent
Decree shall constitute a final settlement between the Parties with
respect to the matters set forth herein. The Parties further agree
that this Consent Decree does not constitute either an adjudication on
the merits or a factual or legal finding or determination regarding
any compliance or noncompliance with the requirements of the
Communications Laws.
20. Modifications. This Consent Decree cannot be modified without the
advance written consent of both Parties.
21. Paragraph Headings. The headings of the paragraphs in this Consent
Decree are inserted for convenience only and are not intended to
affect the meaning or interpretation of this Consent Decree.
22. Authorized Representative. The individual signing this Consent Decree
on behalf of StanaCard represents and warrants that he is authorized
by StanaCard to execute this Consent Decree and to bind StanaCard to
the obligations set forth herein. The FCC signatory represents that
she is signing this agreement in her official capacity and that she is
authorized to execute this Consent Decree.
23. Counterparts. This Consent Decree may be signed in any number of
counterparts (including by facsimile), each of which, when executed
and delivered, shall be an original, and all of which counterparts
together shall constitute one and the same fully executed instrument.
________________________________
P. Michele Ellison
Chief
Enforcement Bureau
Federal Communications Commission
________________________________
Date
________________________________
Manlio Carrelli
Chief Executive Officer
StanaCard, LLC
________________________________
Date
47 U.S.C. S:S: 214, 225.
47 C.F.R. S:S: 63.18, 64.604(c)(5)(iii)(A), 64.1195(a).
47 U.S.C. S: 154(i).
47 C.F.R. S:S: 0.111, 0.311.
47 U.S.C. S:S: 214, 225.
47 C.F.R. S:S: 63.18, 64.604(c)(5)(iii)(A), 64.1195(a).
E-mail from Thomas K. Crowe, Partner, Law Offices of Thomas K. Crowe,
P.C., Counsel to StanaCard, LLC, to Trent B. Harkrader, Deputy Chief,
Investigations & Hearings Division, FCC Enforcement Bureau (Aug. 20, 2009,
17:50 EDT).
47 U.S.C. S:S: 214, 225; 47 C.F.R. Parts 63-64.
47 U.S.C. S: 214(a).
47 C.F.R. S: 63.01(a) ("Any party that would be a domestic interstate
communications common carrier is authorized to provide domestic,
interstate services to any domestic point and to construct or operate any
domestic transmission line as long as it obtains all necessary
authorizations from the Commission for use of radio frequencies.").
See Implementation of Section 402(b)(2)(A) of the Telecomm. Act of 1996,
Report and Order in CC Docket No. 97-11, Second Memorandum Opinion & Order
in AAD File No. 98-43, 14 FCC Rcd 11364, para. 2 (1999) ("Specifically, we
grant `blanket' entry certification to all carriers seeking to construct,
operate, or engage in transmission over domestic lines of communication,
to the extent such authority is required under the statute.").
47 C.F.R. S: 63.18.
Id. S: 63.18(e)(1)-(2).
See Implementation of the Subscriber Carrier Selection Changes Provisions
of the Telecommunications Act of 1996, Third Report and Order and Second
Order on Reconsideration, 15 FCC Rcd 15996, 16024-26, paras. 59-62 (2000)
(Carrier Selection Order).
47 C.F.R. S: 64.1195. See also FCC Form 499-A Telecommunications Reporting
Worksheet - Annual Filing, available at
http://transition.fcc.gov/Forms/Form499-A/499a-2008.pdf (February 2008).
47 U.S.C. S: 225(b)(1).
See Telecommunications Relay Services and the Americans with Disabilities
Act of 1990, Third Report and Order, 8 FCC Rcd 5300, 5301, para. 7 (1993).
Telecommunications relay services enable persons with hearing and speech
disabilities to communicate by telephone with voice-telephone users. Such
services provide telephone access to a significant number of Americans
who, without it, might not be able to make calls to or receive calls from
voice-telephone users. See Telecommunications Relay Services and
Speech-to-Speech Services for Individuals with Hearing and Speech
Disabilities, Report and Order, 15 FCC Rcd 5140, 5143 P: 5 (2000). See
also 64.601(a)(21)(definition of "telecommunications relay services").
47 C.F.R. S: 64.604(c)(5)(iii)(A).
47 U.S.C. S:S: 214, 225.
47 C.F.R. S:S: 63.18, 64.604(c)(5)(iii)(A), 64.1195(a).
See supra note 3.
See IBFS File No. ITC-214-20090624-00301.
International Authorizations Granted, Public Notice, 25 FCC Rcd 1860
(FCC/IB 2010). During the pendency of this application for international
Section 214 authorization, StanaCard was granted special temporary
authority to provide international service. See IBFS File Nos.
ITC-STA-20090625-00304, ITC-STA-20090902-00407, ITC-STA-20091106-00467,
ITC-STA-20100105-00005.
47 C.F.R. S: 64.1195(g).
47 U.S.C. S:S: 214, 225.
47 C.F.R. S:S: 63.18, 64.604(c)(5)(iii)(A), 64.1195(a).
Id. S: 1.16.
47 U.S.C. S:S: 214, 225.
47 C.F.R. S:S: 63.18, 64.604(c)(5)(iii)(A), 64.1195(a).
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