TERRY BILL WOULD CREATE RURAL BOARD TO ANALYZE FCC ACTIONS
Draft of Rep. Terry (R-Neb.) bill to create Rural Issues Advisory Board in FCC circulated Thurs., although Hill and industry sources said legislation wasn’t likely to be introduced until after Aug. recess. Both Terry and Sen. Harkin (D-Ia.) have proposed legislation to create rural advocacy within FCC. OPASTCO said it liked parts of proposal, although its board hadn’t officially considered measure. OPASTCO Legislative Dir. Don Erickson said Terry’s proposal was “commonsense” approach to problem perceived by rural interests that FCC didn’t take cost-benefit analysis into account when considering rules that affected rural carriers. Erickson said Commission wasn’t following Regulatory Flexibility Act, which requires agency to take cost-benefit into account when issuing rules. He said many regulations weren’t designed to cope with nature of small carriers.
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Under Terry plan, Rural Issues Advisory Board wouldn’t have rulemaking authority but would issue guidance to FCC on rulemakings. Board, which would be given annual budget of $5 million, would conduct cost-benefit analyses of FCC rules that affected rural carriers. In cases where board’s analysis wasn’t factored into rule, FCC would have to justify rejecting its view. Board would have 5 members, 4 from rural telephone companies and 1 from rural wireless company. Erickson said plan would enhance rural representation without increasing bureaucratic oversight.
Board would advise Commission on impact of its decisions on rural markets and customers through Rural Impact Analysis (RIA) statements. Board would have discretion to decide, through majority vote, rules, orders and decisions on which RIA would be needed. Board also could develop other advisory opinions for submission to FCC or other federal agencies. Board and staff also would serve as point of review for complaints, criticisms and suggestions involving rural telephone service. It would examine FCC’s biennial review and have general authority to consult with experts, trade associations and others who had expertise.
RIAs would outline potential effects of FCC rulings. Commission would have to justify in rulemaking why any RIA was rejected. RIAs would come in 2 forms: (1) Initial RIA would be issued when rule was proposed. It would describe rural impact of proposed decision. Each initial RIA would contain specific recommendations for FCC and potential alternatives. (2) Final RIA, which would be issued when Commission promulgated final rules. Final RIA would include specific details on rules, such as how many companies would be affected and how rule or action would affect universal service. Any rule for which RIA was prepared could be challenged in court by rural telephone company or wireless carrier.
Each board member would be appointed to 3-year term by President, but wouldn’t be paid. Chmn. would be elected by board, serve 3-year term and control all board funds. Board wouldn’t have to work at Commission hq or even in Washington. However, it would hold open meetings at least once per quarter. It could conduct other meetings as often as it chose, and they wouldn’t have to be open to public. Commission would have to provide space for board staff, which could be appointed without regard to provisions governing appointees in civil service and without regard to general schedule pay rates.
Legislation would also require FCC to issue biennial report to Congress on progress measuring costs and other effects of regulations on rural telephone and wireless carriers. Report would include status of universal service, advanced services, competition in rural areas and regulatory burdens facing rural telecom carriers.