Federal Communications Commission

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FEDERAL COMMUNICATIONS COMMISSION

The Federal Communications Commission (FCC) is an independent regulatory agency that executes and enforces the provisions of the Communications Act of 1934 and its amendments. It has the statutory authority to create and execute administrative law such as rules, policies, and regulations. It also has the authority to investigate and penalize violators of these laws. Its jurisdiction covers interstate wire and wireless communication as well as international communication originating in or transmitted from the United States. It does not, however, regulate government communications.

The FCC is considered an independent agency because it does not fall directly under the executive branch of government. However, it is a "creature of Congress" in that the U.S. Congress created the agency through the Communications Act of 1934. Therefore, through legislation, Congress may alter or abolish the FCC if it so chooses. Congress also approves the selection of commissioners, appropriates the budget, and reauthorizes the existence of the FCC every two years.

The president of the United States also holds some influence over the FCC. For example, the president appoints the five FCC commissioners, subject to approval by Congress. The president may also take control of FCC-regulated media during wartime and national emergencies. Other government regulatory organizations that play a role in media regulation are the Federal Trade Commission (FTC), which is responsible for advertising and antitrust oversight, and the Equal Employment Opportunity Commission (EEOC), which monitors compliance of affirmative action and equal employment laws. In concert with these agencies, the FCC regulates the communications industry to ensure that the public interest is being served.

Powers and Procedures of the Commission

Perhaps the most visible function of the commission is to assign frequencies and issue licenses to broadcasters. However, it also makes rules, regulations, and policies that uphold U.S. domestic laws and international agreements. To do this, the FCC receives proposals for new rules, which are evaluated by the appropriate bureau. If the proposal survives this step, it goes to the FCC commissioners, who may employ one of four actions.

First, the commission may submit a Notice of Proposed Rule Making (NPRM), in which the rule is proposed and comments are solicited. The commission will then take written statements from interested parties and, perhaps, hold a hearing to discuss relevant issues. After comments are obtained, the commission will issue a Report and Order (R&O) that either adopts the proposed rule, alters and then adopts the rule, or makes no change.

Second, the commission may issue a Notice of Inquiry (NOI), which states the issue and invites comments regarding potential solutions. Public comment is then gathered from written statements or hearings, allowing the commission to decide whether to proceed with an NPRM or to forego adoption of rules or changes with a Memorandum Opinion and Order (MO&O). If the commission does choose to issue an NPRM, then the rule-making process continues as if an NPRM was originally issued.

Third, the commission may skip an NPRM or an NOI and make unsubstantial changes in existing rules using a Report and Order Adopting Change. However, if the commission does not wish to adopt any rules or changes, the commission may exercise its fourth option and issue an MO&O, thus ending the rule-making process.

The FCC also has at its disposal a legal device that can be used to remove an uncertainty or terminate a controversy. This device is a declaratory ruling, made possible by the Administrative Procedures Act, and it can be used to clarify legal definitions, solidify regulatory concepts, or otherwise explicitly explain a controversial element or issue. However, even these declaratory rulings are subject to court decisions.

Hearings, presided over by an administrative law judge (ALJ), not only provide a forum for public comment but also test the constitutionality of FCC decisions. According to the Communications Act of 1934, hearings can be held to appeal FCC rules, and must be held in license denial or revocation actions. During these hearings, the ALJ hears comments from all interested parties, including the FCC, and issues an initial decision. The decision may then be reviewed by the five commissioners. If any parties are dissatisfied with the final decision, they may appeal the case to an appellate court and possibly to the U.S. Supreme Court. It is through this appeals process that the judicial system checks the constitutionality and legal authority of FCC rulings.

To enforce its existing rules, regulations, and policies, the FCC can choose from nine methods of enforcement. The most commonly used method is the forfeiture, or the fine. The FCC may levy up to $25,000 per day for violations of license terms, the Communications Act of 1934, the U.S. Criminal Code, or any FCC regulation or U.S. treaty. There is, however, a $250,000 maximum penalty for each individual station in violation.

The Communications Act of 1934 also authorizes the FCC to pursue court action against violators of the act. This involves obtaining a court order demanding that the violator either comply with the act, obey an FCC order, or comply with a previous court order. Similar to this is the consent order, which begins with an allegation by the FCC that some party has violated an FCC rule, regulation, or policy. A hearing is then held during which the party in question and the FCC negotiate a consent order, an agreement to comply with a specified ruling.

A related enforcement tool is the cease and desist order. This order demands that a party stop exhibiting a specific action that violates the Communications Act of 1934, the U.S. Criminal Code, an FCC regulation or U.S. treaty, or a license agreement. This method, although useful to many agencies, has been used the least by the FCC.

Another little used method is the revocation of a license before renewal. Revocation has mostly occurred in cases of misrepresentation or technical engineering violations by a station. Other, less harsh enforcement methods are the denial of license renewal, short-term license renewal, and conditional license renewal. All of these pertain to cases concerning violations of the license agreement, violations of FCC regulations, or petitions to deny renewal.

The regulatory tool that the FCC uses with frequency is the letter, or "raised eyebrow" approach. In these cases, the FCC simply sends the party in question a letter that either admonishes the party or asks the party to explain an alleged act. This method, though not a sanction, is very effective in that it cannot be appealed or challenged in court, and yet it warns the party of the FCC's knowledge of the possible violation. Usually, this threat of sanction is persuasive enough to gain compliance.

Organization of the Commission

The FCC is organized into three levels. At the top level, five commissioners create and review regulation. Beneath the commissioners are the offices, which perform various managerial, service, and auxiliary functions. At the third level, six bureaus develop and implement regulatory programs, process license applications, conduct investigations, and hear citizen comments and complaints. These levels cover the breadth of telecommunication and facilitate the commission's operation as an independent agency.

The Commissioners

With the advice and consent of the U.S. Senate, the president of the United States appoints five commissioners, choosing one as chairman. These commissioners hold five-year fixed terms, which are staggered so that not all five positions will be vacant at once. The commissioners must be U.S. citizens and must not hold a financial interest in any industry that the FCC regulates. Also, no more than three commissioners may be from the same political party, although all may hold the same philosophies. Each commissioner selects a small personal staff that will leave when the commissioner leaves office. The chairman is allowed a larger personal staff and serves as chief executive of the commission.

The chairman presides over the commission meetings, which must be held at least once a month. Usually, the commissioners meet weekly, and they submit documents to each other for approval between meeting times, a process called circulation. The commissioners also go before Congress to request operating funds and reauthorization. However, the chairman may also serve as the sole representative of the FCC before Congress and other entities in various matters.

The Offices

The Office of Inspector General was created by the Inspector General Amendments Act of 1988. This office ensures that the FCC operates internally in an efficient, effective, and legal fashion. It initiates internal audits and investigations of programs or operations in response to complaints, and it keeps the commissioners and Congress informed of any problems at the agency.

The Office of Managing Director is the primary operations manager of the agency. It creates and executes managerial and administrative policies, and it provides direction to the offices and bureaus underneath it. It is the central link in the organization of the FCC.

The Office of Legislative and Intergovernmental Affairs serves as the FCC's liaison to Congress and other governmental organizations. In addition to informing others about FCC decisions, the office prepares FCC responses to legislative proposals and feedback. The Office of Media Relations performs similar tasks in dealing with the news media, and it also manages the website of the FCC.

The Office of Plans and Policy advises the commission on economic and technical matters. It develops long-term policy planning, conducts research, and manages the budget for research funded by the FCC. The Office of the Secretary also keeps records, except that its focus is in managing the movement of documents filed through electronic and paper-based systems.

The Office of Workplace Diversity is the principal adviser to the commission on issues such as workplace diversity, affirmative action, and equal employment opportunity. It trains and counsels employees on fair treatment, and it also develops and implements programs that encourage fair treatment, affirmative recruitment, and understanding and acceptance of diversity in the work-place. The Office of Communications Business Opportunities counsels the commission on diversity in the national landscape, advising on issues and policies concerning female and minority ownership of communication businesses. In addition, the office represents small-business interests in all FCC rule-making proceedings.

The Office of Administrative Law Judges and the Office of General Counsel serve as the legal arm of the FCC. The Office of Administrative Law Judges houses the judges who preside over hearings and issue adjudicatory decisions that are reviewed by the commissioners. The Office of General Counsel advises the FCC on legal matters, represents the commission before the courts, recommends decisions in adjudicatory cases, and provides insight on promoting competition and deregulation in the marketplace.

The final office is the Office of Engineering and Technology. This office is the primary manager of the nongovernmental use of the electromagnetic spectrum. It advises the FCC on technical matters, the allocation of frequencies, and new technologies. The office also establishes technical standards for operating stations. In short, the Office of Engineering and Technology provides scientific leadership and guidelines on which the technological backbone of electronic media is built.

The Bureaus

There are seven FCC bureaus: (1) the Cable Services Bureau, (2) the Common Carrier Bureau, (3) the Wireless Telecommunications Bureau, (4) the International Bureau, (5) the Mass Media Bureau, (6) the Enforcement Bureau, and (7) the Consumer Information Bureau. Each of these bureaus covers a distinct area of FCC responsibility.

The Cable Services Bureau, established in 1993, was formed to execute and enforce the Cable Television Consumer Protection and Competition Act of 1992. It promotes competition in local markets and between multichannel program distributors and monitors the deployment of new cable technologies. The Cable Services Bureau also monitors trends and developments in the cable industry. It evaluates compliance to such mandates as broadcast signal carriage, program access, and potential cable interference with over-the-air signal reception capability. In addition, the bureau resolves issues concerning cable franchise agreements and related fees.

The Common Carrier Bureau oversees common carriers such as telephony and cellular telephony. The bureau licenses transmission circuits, assigns frequencies, and approves construction for new common-carrier operations. It also regulates the practices and charges of interstate and international communication carriers such as long-distance telephone companies. Related to the regulation of practices, the bureau receives applications for mergers and dictates proper accounting practices for common carriers.

The Wireless Telecommunications Bureau is similar to the Common Carrier Bureau in that it regulates radio-wave communication that serves the needs of businesses, individuals, governmental entities, and nonprofit organizations. These communications include private microwave, private land mobile, marine and aviation, amateur, cellular, paging, and personal communications service (PCS) transmissions. The bureau ensures that these and other wireless telecommunication service providers comply with the Communications Act of 1934 and FCC regulations.

The International Bureau, established in 1994, regulates all FCC international communications and satellite programs. Its functions include the regulation of rates, the development of standards, international safety measures, and space-and earth-station communications. The bureau also represents the commission in international matters and oversees the domestic implementation of relevant treaties and agreements between the United States and other countries.

Perhaps the most familiar bureau is the Mass Media Bureau, which regulates radio and television broadcasting. It assigns frequencies, call letters, and licenses to applicants. It also ensures that licensees are in compliance with the current rules and provisions of the Communications Act of 1934, the FCC, and other federal laws. In the event of noncompliance, the bureau is authorized to investigate and ultimately issue sanctions.

The Enforcement Bureau is charged with improving the effectiveness of the enforcement measures of the various laws. Established in 1999, it joins the enforcement forces of the various bureaus and acts on potential violations of the Communications Act of 1934 and FCC rules, regulations, and orders.

The Consumer Information Bureau, the official liaison to the general public, handles all consumer inquiries and complaints.

Evolution of the Commission

The FCC grew out of the Federal Radio Commission (FRC), which was created by the Radio Act of 1927. The FRC, a five-member commission, began with a limited and temporary role— the U.S. Department of Commerce maintained most of the regulatory responsibility for the communication industry. The original intent of the FRC was to solve growing station interference problems, set standard broadcast bands, and reduce the total number of operating stations within one year. This, however, was not accomplished, and the FRC became permanent in 1929.

In 1934, President Franklin D. Roosevelt asked Congress to create a single agency with broad authority over all nongovernmental communication. Consequently, Congress passed the Communications Act of 1934, which combined aspects of the FRC and the U.S. Department of Commerce and created the FCC as an independent regulatory agency that would have jurisdiction over all wire and wireless communication, both interstate and international.

The FCC derives its powers, duties, procedures, enforcement methods, and organizational setup from Titles I and V of the Communications Act of 1934, a blueprint that has changed little over time. For example, the number of commissioners has varied from five to three to seven, but a 1982 amendment set the number back at five. The only other significant change is that the commission, due to a 1981 amendment, is once again a temporary agency that must be reauthorized by Congress every two years. Other amendments have altered the rules, policies, regulations, and provisions that the FCC executes and enforces. However, the commission continues to function very much in the tradition that was established in 1934.

Bibliography

Federal Communications Commission. (2001). "Federal Communications Commission." <http://www.fcc.gov>.

Kahn, Frank J., ed. (1978). Documents of American Broadcasting, 3rd edition. Englewood Cliffs, NJ: Prentice-Hall.

Smith, F. Leslie; Meeske, Milan; and Wright, John W., II.(1995). Electronic Media and Government: The Regulation of Wireless and Wired Mass Communication in the United States. White Plains, NY: Longman.

Francesca Dillman Carpentier

Encyclopedia of Communication and Information