H.R. 3309 (112^th): Federal Communications Commission Process Reform Act of 2012

GovTrack’s Bill Summary

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Library of Congress Summary

The summary below was written by the Congressional Research Service, which is a nonpartisan division of the Library of Congress.

House Republican Conference Summary

The summary below was written by the House Republican Conference, which is the caucus of Republicans in the House of Representatives.

This summary can be found at http://www.gop.gov/bill/112/2/hr3309.

Background

According to the House Energy and Commerce Committee Report 112-414, the communications and technology sector is among the most competitive and innovative of our economy.  From fiber optics to 4G wireless service, from the smartphone to the tablet to the connected TV, this sector has been creating new services and new devices—and the high-quality jobs that come with high-tech innovation and investment—despite the economic doldrums our country is caught in.  In 2010, the industry invested $66 billion to deploy broadband infrastructure, $3 billion more than in 2009, totaling more than half a trillion dollars invested to upgrade their networks over the past eight years.  America is now the world leader in wireless LTE network deployment. To ensure it doesn't stall that economic engine, the FCC should not only strive to be the most open and transparent agency in the federal government, but should also engage in rigorous analyses demonstrating the need for regulation before intervening in the marketplace.

The communications industry is one of the few sectors still firing on all cylinders in this economy; the market is more competitive than it has ever been before, and the underlying technologies and business models are evolving at a rapid and accelerating pace. The FCC cannot know if intervention is appropriate unless it has rigorously examined the marketplace and afforded the public and affected parties adequate opportunity to review proposals and provide input. Consumers, small businesses, and outside-the-beltway stakeholders in particular do not have the regulatory lawyers needed for rushed review of proceedings; the only way to get their input is to give them time to provide feedback on well delineated proposals. Before it starts intervening, the FCC should make sure it has a full understanding of the state of competition and current technologies.

Summary

H.R. 3309 would require the Federal Communications Commission (FCC) to be more transparent and methodical in determining whether to intervene in the communications marketplace, in dealing with consumers and regulated parties, and in reviewing transactions.  Specifically, the bill would require the FCC to do the following:

• Survey the marketplace through a notice of inquiry before proposing new rules that would increase costs for businesses and consumers;
• Conduct another notice of inquiry before proposing rules if three years have elapsed since the last inquiry, to make sure the FCC does not act on a stale record;
• Publish the specific text of proposed rules, so the public and industry know what is being considered and have adequate information to provide input;
• Allow the public and industry adequate time both to review proposed rules, ex parte filings and reports, as well as to provide comment;
• Identify a market failure or consumer harm and conduct a cost benefit analysis before adopting economically significant rules that cost more than $100 million;
• Create performance measures to evaluate the effectiveness of large programs that cost more than $100 million, such as the Universal Service Fund; and
• Set time limits and schedules for issuing decisions and to report to Congress on how well it is abiding by them, so the public and industry know when issues will be resolved.

Cost

Based on information from the FCC, the Congressional Budget Office (CBO) estimates that the agency would require 20 additional staff positions to handle the new rulemaking, reporting, and analysis activities required under the bill.  CBO estimates that implementing the provisions of H.R. 3309 would cost $26 million over the 2013-2017 period, assuming appropriation of the necessary amounts, for additional personnel and information technology expenses.  Under current law, the FCC is authorized to collect fees sufficient to offset the cost of its regulatory activities each year; therefore, CBO estimates that the net cost to implement the provisions of H.R. 3309 would not be significant, assuming annual appropriation actions consistent with the agency's authorities.  Enacting H.R. 3309 would not affect direct spending or revenues; therefore, pay-as-you-go procedures do not apply.

House Democratic Caucus Summary

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So, yes, we display the House Republican Conference’s summaries when available even if we do not have a Democratic summary available. That’s because we feel it is better to give you as much information as possible, even if we cannot provide every viewpoint.

We’ll be looking for a source of summaries from the other side in the meanwhile.