Republicans look to slow FCC's regulatory output

House Republicans next week plan to move legislation that would slow the ability of the Federal Communications Commission (FCC) to release regulations affecting the communications industry, mostly by requiring the agency to study the market more carefully and giving the industry more time to react to and comment on new rules.

The Federal Communications Process Reform Act (HR 3309) was approved by the House Commerce Committee earlier this month and is seen by Republicans as a way to ensure that the communications industry continues to grow with as few hurdles as possible from federal regulators. "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," Republican supporters wrote in report language accompanying the bill. "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," they added. Under the bill, the FCC would have to conduct a detailed survey of the industry before issuing rules that increase business costs, publish rules in advance to provide time for industry and consumer feedback, and identify a specific market failure or harm and conduct a cost-benefit analysis before issuing rules that cost more than $100 million.

The Congressional Budget Office estimates it 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.