House GOP Backtracks on Funding Prohibition for FCC Political File Rule

House Appropriations Subcommittee on Financial Services Chair Jo Ann Emerson, R-Mo., offered an amendment to remove the provision to defund the FCC’s political file disclosure rule despite her “strong reservations.” The commission adopted the rule in April to require TV stations affiliated with the Big Four broadcast networks in the top-50 markets to post on a website run by the commission their political file information, including who’s buying airtime at government-mandated rates. Broadcasters are legally required to maintain data on political ad spending, but the information is only available in paper form at the TV stations.

"I recognize that the FCC-run database on political television advertising will likely be set up beginning in fiscal year 2013 and consequently our bill might not be enacted until after the election,” Emerson said. “The election poses a certain quandary. So a funding prohibition prohibiting putting the political file online might not work under the circumstances.”

Members approved Emerson’s amendment to replace language in the bill that would have stripped funding for the political file disclosure rule and instead ordered the GAO to determine if the FCC is duplicating the work of the Federal Election Commission; to analyze whether the FCC’s database is used for price signaling or market manipulation; and analyze the operational costs to broadcasters who comply with the rule.

Emerson warned that the committee may need to address the political file disclosure rule in the FY14 appropriations bill. “I find it somewhat perplexing that the FCC is getting mixed up in federal election disclosure matters and placing the burden on private broadcasters, particularly the mom and pop smaller broadcasters,” she said. “I personally wish the commission would continue its work to expand access to broadband and spectrum in order to help the economy.”

Committee Ranking Member Jose Serrano, D-N.Y., said the removal of the provision was “an important step in favor of disclosure and transparency.” “Striking this provision is a good move, this is the proper way to go. … Anytime you say to the public you can get information on how our elections are being conducted, who’s paying for them, what kind of money is being spent, that is a good thing.”

Rep. Norm Dicks, D-Wash., said he was delighted that Emerson “corrected the problem.” “Transparency,” he said, “that is what the American people want. … They want to put it on the record instead of in somebody’s locker in some office in some media place, or TV station. Put it on the record.”

FCC Commissioner Robert McDowell said during a subcommittee hearing in March the agency’s political file rule is a “tool for examining transparency in campaign spending rather than broadcaster behavior,” (CD March 20 p1). He told appropriators in March that the proposed political file requirement could cost TV broadcasters $15 million upfront to implement, and $140,000 per year in recurring costs to maintain the information in real-time.

NAB said there’s a “fundamental unfairness in requiring local TV stations -- and only local TV stations -- to disclose online our individual political advertising rates when our cable, satellite and Internet competitors are exempted.” Free Press Action Fund Senior Policy Counsel Corie Wright said the group was pleased that lawmakers “sided with the public and chose transparency over secrecy, accessibility over inconvenience.” “Voters deserve to know who is trying to influence their choice on election day, and the FCC’s online political file rule will shine a brighter light on that process."

The committee approved Emerson’s manager’s amendment which included a provision to encourage the commission to update the methodology it uses to derive its regulatory fees.

The bill orders the FCC to review the agency’s organizational structure with the goal of submitting a proposal for “improvement that reflects today’s technology landscape and competitive marketplace.” The committee said that the commission’s current organizational and management structure “does not reflect the convergence in today’s telecommunications market. The increase in market-based competition should result in a smaller commission with fewer staff,” the report language said.

The committee approved an amendment offered by Rep. James Moran, D-Va., related to the impact that the FCC’s planned terrestrial broadband operations in the L band could have on commercially available GPS. The amendment would encourage the FCC to provide other spectrum to deploy broadband services while heeding the concerns about potential GPS interference. Emerson agreed to the provision with reservations: “I'm not sure the FCC should be reallocating spectrum for this. I think it deserves more attention and we can look at this more in Congress."

The committee agreed to an amendment offered by Rep. Cynthia Lummis, R-Wyo., to address local residential telephone rate re-balancing for some local exchange carriers. The amendment encourages the FCC to allow long-term relief to states that adopted USF rate re-balancing structures prior to the commission’s USF reform order. Serrano opposed the amendment which he said was an attempt to “stop the reform of the universal service fund.”