Short title

This Act may be cited as the

FCC Merging Entities Regulatory Guidance and Ethical Reform Act of 2011

or as the

FCC MERGER Act

FCC Rules for Hidden Conflicts of Interest

Section 554 of title 5, United States Code, is amended by adding at the end the following:

(f)The Federal Communications Commission shall create and implement rules requiring public disclosure of contributions received by any party that submits to the Commission facts, arguments, offers of settlement, or proposals of adjustment (either electronically or in writing), whenever such contributions may constitute a potential conflict of interest. The rules shall apply to all Commission proceedings, including rulemaking proceedings, transfers of licenses, mergers, combinations, and adjudicatory proceedings. Contributions subject to these rules must include but need not be limited to financial contributions, contributions in-kind, language to be filed, and offers of employment. Contributions may constitute a potential conflict of interest if made by a party which has a direct financial interest in the outcome of a pending Commission proceeding. Such rules implemented by the Commission shall include a requirement of a description of any contributions received from any party or applicant within one year of a merger, combination, transfer of licenses, rulemaking, or adjudicatory proceeding pending before the Commission, where such contributions may constitute a conflict of interest.

Prohibition on Former Officials’ Acceptance of Employment

(a)A former official of the Federal Communications Commission may not accept employment from a regulated entity as an employee, officer, director, or consultant of the regulated entity within a period of one year after such former official— (1)presided over a proceeding in the transfer of licenses acquired or formerly held by the entity offering employment to the officer; (2)presided over a merger, combination, or adjudicatory proceeding in which the entity offering employment was a party to the proceeding; or (3)issued for the Commission— (A)a decision to approve a transfer of licenses to the entity offering employment; (B)a decision in a complaint or other adjudicatory proceeding in which the entity offering employment was a party; (b)A former official of the Commission who knowingly accepts compensation in violation shall be subject to administrative actions and penalties as set forth in section 4. (c)A regulated entity that offers employment to a former or current official of the Commission knowing that such offer is accepted by the former or current official in violation of this subsection shall be subject to administrative actions and penalties as set forth in section 4. (d)Regulations implementing this subsection shall include procedures for an official or former official of the Commission to request advice from the appropriate designated Commission ethics official regarding whether the official or former official would be precluded by this subsection from accepting compensation from a particular regulated entity.

Penalties and Administrative Actions

The Attorney General may bring civil action in an appropriate United States District Court against any person who engages in conduct constituting a violation of section 3. Upon proof of such conduct by a preponderance of the evidence, the person is subject to a civil penalty. An individual who engages in such conduct is subject to a civil penalty of not more than $50,000 for each violation plus twice the amount of compensation which the individual was offered for the prohibited conduct. An organization that engages in such conduct is subject to a civil penalty of not more than $500,000 for each violation plus twice the amount of compensation which the organization received or offered for the prohibited conduct.