The FCC and Congress: Is Everything ‘Fine’?

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RBR + TVBR featured columnist Ken Benner is perhaps one of the staunchest advocates of fair FCC fines and cost to broadcasters. In his view, the Commission continues to turn to broadcasters to fund much of its operations. This has been going on for more than a decade, he believes, and powerful members of Congress have now questioned whether or not the FCC is overstepping its legislative power. If Congress isn’t pleased with the FCC’s fund funnel, what do broadcasters who have to pay climbing fees and costly fines think?  


 

Back in 2002, I stumbled upon a bizarre item published by the FCC. It was MM Docket No. 98-204.

At the time, it was the most disturbing item I had ever seen in my life.

It was soon to become one of the most time-consuming, burdensome and costly items ever imposed on the broadcasting profession.

Issued by then-FCC Chairman Michael Powell, along with Commissioners Abernathy, Copps and Martin, this 184-page opus is officially called the “Second Report and Order and Third Notice of Proposed Rule Making.”

It addresses equal employment opportunity (EEO) matters and was to become USC Part 73.2080 — yielding a litany of forms to complete “random” audit reports required then during the report period.

This included job openings filled during the period, and detailed recruitment sources; the number of interviewees; on-air recruitment ads, as well as local newspaper classified ads; non vacancy-specific recruitment activities involving scholarship programs, job fairs, internship programs; and a host of other tasks — all costing substantial amounts of time, legal costs and frustration.

Let me be clear: Race, religion, gender, sexual orientation, or any other form of real or perceived form of discrimination has no place in any employment. The problem is that discrimination is a state of mind, and is virtually impossible to regulate or legislate. As I have illustrated in previous columns, there is money to be had in keeping things complicated, and preferably beyond comprehension. In this case, it exists in a 184+-page document.

Fast-forward to late October 2016. Just a week or so ago, the 2016 FCC regulatory fees plaguing licensees this year was revealed to be $384 million. This is in addition to another $44 million to cover the move of the FCC to new quarters. Add this to the fines collected — in many cases, for inadvertent licensee missteps — and we’re talking real money here for broadcasters.

For this column, I opted to focus on a five-page single-spaced letter dated February 18, 2015 that is addressed to FCC Chairman Tom Wheeler. It is co-signed by three members of the 114th U.S. Congress House Committee on Energy and Commerce — specifically, Chairman Fred Upton; Tim Murphy, Chairman Subcommittee on Oversight and Investigations; and Greg Walden, Chairman on Subcommittee on Communications and Technology.

I respectfully share a few partial quotes from that letter:

“…. we have had longstanding concerns with the fairness, openness and transparency of several of the…(FCC) administrative and rulemaking processes under your leadership.

One area of ongoing concern is your office’s use of so called ‘delegated authority’

Finally, we witnessed a series of actions that call into question the openness and fairness of the Commission’s rule-making processes.”

The Commission’s disregard for openness and transparency has also manifested itself in the agency’s direct dealings with Congress.

Considered together, these issues lead us to conclude that the Commission under your leadership is not sufficiently committed to fulfilling its obligation to operate independently, with processes that are open, fair and transparent.

These selected quotes and partial quotes are submitted solely to illustrate the tone of the letter referenced and not to imply any degree of analysis.

By mail, phone and email, I have contacted the office for each of the four gentlemen referenced requesting comment in my capacity as Senior Research Analyst for the Coalition For Transparency, Clarification of Regulations Pertaining to American Broadcasting.  As expected, no response was received.

If members of the House Energy and Commerce Committee have issues with the FCC, imagine what the average broadcaster thinks. Penalties for egregious behavior is fine, but the fines after fines have done more to give the Commission a rosy budget while putting broadcasters in peril of losing the last cent in their shrinking operating budgets.


RBR + TVBR featured columnist Ken Benner is an independent Alternative FCC Compliance Certification Inspector and a research analyst for the Coalition for Transparency, Clarification and Simplification of Regulations pertaining to American Broadcasting. Benner has more than 55 years of experience providing service to the broadcast industry.

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