Senator John McCain (R, AZ), chairman of the Senate’s Committee on Commerce, Science, and Transportation, introduced a “FCC Reauthorization Act of 2003” aimed at reinvigorating the mission of the FCC. McCain said the FCC should be responsible for a wide range of duties, including establishing regulatory policies that promote competition, innovation, and investment in broadband services; ensuring that a comprehensive and sound national competitive framework for communications services exists; encouraging the best use of spectrum domestically and internationally; and providing leadership for the rapid restoration of the nation’s communications infrastructure in the event of disruption. Among the changes introduced by this proposed legislation are:
- authorizes the FCC to allocate sufficient funds to be used for an audit of the e-rate program to determine the specific fraud or abuse that has occurred during the operation of the program. Serious allegations of fraud in the operation of the e-rate fund have been raised in recent months.
- the FCC would be required to report the results of such audits to the Senate’s Committee on Commerce, Science, and Transportation
- clarifies the FCC’s review process of its own media ownership rules. Specifically, the bill sets forth the timing and the standard the FCC will use for reviewing its broadcast ownership rules. Currently, the FCC is required to review its broadcast ownership rules every two years. The bill lengthens the duration between reviews from two years to five years. At a recent hearing, all five FCC Commissioners recommended this change.
- modifies the media review standard to specifically allow the FCC to repeal, strengthen, limit, or retain media ownership rules if it determines such changes are in the public interest.
- increases the statutory cap on FCC fines and forfeitures by a factor of ten. FCC commissioners have complained in the past that large corporations simply absorb fines as a cost of doing business rather than modifying their behavior. The FCC would also be given the authority to assess fines against direct broadcast satellite (DBS) operators just as they do against cable operators
- clarifies that a party injured by a common carrier’s violation of FCC rules or orders may recover damages for such injury in an action before the FCC or before a United States District Court
- gives the FCC the power to seize broadcasting equipment where one engages in malicious interference to radio communications.
- allows the FCC to preclude a successful bidder in a spectrum auction from using bankruptcy to avoid its obligation to pay for its spectrum license.
- bans the payment or reimbursement to the FCC of travel costs for FCC officials or staff from a nongovernmental sponsor of a convention, conference, or meeting.
- imposes a one-year lobbying ban on high-level FCC staffers who leave the FCC’s employment
- provides the FCC with the authority to require video descriptions of television programming to assist those who are visually impaired.
- reauthorizes the FCC through the fiscal year 2007.
In a separate written statement, FCC Chairman Michael K. Powell applauded the legislation saying he supports many of these proposed changes.http://commerce.senate.gov/newsroom/printable.cfm?id=205012
- In August 2002, Senator John McCain (R, AZ) proposed a new Consumer Broadband Deregulation Act of 2002 (S.2863) that sought to deregulate the retail provision of residential broadband services and dictate a hands-off approach to the deployment of new facilities by telephone companies while maintaining competitors’ access to legacy systems
- In October 2002, Senator John McCain (R-AZ) proposed a Telecommunications Ownership Diversification Act of 2002 (S. 3112) aimed at leveling the playing field between small business owners and CEOs of huge corporations trying to purchase a telecommunications business.
- Neither bill has been enacted into law.
