[Congressional Record Volume 145, Number 114 (Thursday, August 5, 1999)]
[Extensions of Remarks]
[Pages E1775-E1776]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                      INTRODUCTION OF LEGISLATION

                                 ______
                                 

                   HON. CHARLES W. ``CHIP'' PICKERING

                             of mississippi

                    in the house of representatives

                        Thursday, August 5, 1999

  Mr. PICKERING. Mr. Speaker, I rise today to address one of the many 
reforms I believe are necessary to improve the administrative processes 
of the Federal Communications Commission (FCC). The issue that I 
believe needs to be addressed immediately relates to the proliferation 
of merger activity in the telecommunications industry.
  Since passage of the Telecommunications Act of 1996, the industry has 
seen massive upheaval as companies try to position themselves for the 
new Information Age economy. Many of these companies are attempting to 
combine their strengths to better position themselves to compete in a 
deregulated marketplace. One of the problems these companies have faced 
recently is the regulatory uncertainty of the FCC's merger review 
process.

[[Page E1776]]

  As we all know, the telecommunications industry is one of the key 
driving forces of our economy. As such, we in the Congress need to 
ensure that unnecessary government intervention doesn't cause needless 
delay in bringing new and innovative products to the market. Even more 
so, we must ensure that the business community is not competitively 
disadvantaged by an endless regulatory review process.
  Whenever a company is required to seek approval of the government, 
there is some uncertainty, particularly as it relates to the length of 
merger review. My bill is narrowly crafted to remedy this situation. My 
bill would require the FCC to approve or deny a merger application 
within 60 days of being on public notice, the FCC can extend this by 30 
days with a majority vote by the Commissioners. When reviewing mergers 
or acquisitions by small- or mid-sized companies the time frame is 
limited to 45 days with no extensions. It's that simple--no delays, no 
foot-dragging.
  When Congress passed the Telecommunications Act of 1996, the Congress 
imposed a variety of time constraints on the FCC. I believe that many 
of us who were involved in that process did not think that we would 
subject the business community to these lengthy and uncertain delays at 
the FCC. One of the biggest problems that some of my constituents have 
raised with me is not knowing if a merger will take 3 months, 9 months 
or even 16 months. There is simply no logic or rationale to the FCC's 
lengthy process.
  The uncertainty of the regulatory process can have devastating 
effects on both large and small companies. This potential for lengthy 
reviews can force companies to miss product roll-outs, miss a window of 
opportunity to raise venture capital, and at times has been manipulated 
by competitors to forestall a decision by the agency. We simply cannot 
allow these scenarios to continue.
  This legislation will do what all legislation should do--it requires 
the processes of government to work for the community they are meant to 
serve. Giving a definite time period for reviewing a merger will allow 
companies to better plan their entries into new markets. It will give 
Wall Street more certainty in making investment decisions. And finally, 
it will remove the oftentimes subjective nature of the review process 
and require the agency to reach a decision in a fair and efficient 
manner.

                                H.R. --

       Be it enacted by the Senate and House of Rep-resentatives 
     of the United States of America in Congress assembled,

     SECTION 1. TIME LIMITS ESTABLISHED.

       Title IV of the Communications Act of 1934 is amended by 
     adding after section 416 (47 U.S.C. 416) the following new 
     section:

     ``SEC. 417. TIME LIMITS FOR COMMISSION ACTIONS.

       ``(a) Public Interest Determinations.--
       ``(1) Deadline for action.--The Commission shall make a 
     determination with respect to the public interest, 
     convenience, and necessity in connection with any application 
     for the transfer or assignment of any license under title 
     III, or with respect to an application for the acquisition or 
     operation of lines under title II, not later than 60 days 
     after the date of submittal of such application to the 
     Commission, except as provided in paragraphs (2) and (3).
       ``(2) Extension.--The deadline for such determination may 
     be extended for a single additional 30 days by order of the 
     Commission approved by a majority of its members.
       ``(3) Shorter deadline for certain acquisitions involving 
     small local exchange carriers.--In connection with the 
     acquisition, directly or indirectly, by one local exchange 
     carrier or its affiliate of the securities or assets of 
     another local exchange carrier or its affiliates where the 
     acquiring carrier or its affiliate does not, or by reason of 
     the acquisition will not, have direct or indirect ownership 
     or control of more than 2 percent of the subscriber lines 
     installed in the aggregate in the United States--
       ``(A) the deadline under paragraph (1) shall be 45 days 
     after the date of submittal of the application; and
       ``(B) the deadline shall not be subject to extension under 
     paragraph (2).
       ``(b) Approval Absent Action.--If the Commission does not 
     approve or deny an application described in subsection (a) by 
     the end of the period specified in such subsection (including 
     any extension thereof permitted under subsection (a)(2)), the 
     application shall be deemed approved on the day after the end 
     of such period. Any such application deemed approved under 
     this subsection shall be deemed approved without 
     conditions.''

     SEC. 2. EFFECTIVE DATE.

       (a) In General.--The amendment made by section 1 shall 
     apply with respect to any application described in section 
     417(a)(1) of the Communications Act of 1934 (as added by this 
     Act) that is submitted to the Federal Communications 
     Commission on or after the date of enactment of this Act.
       (b) Pending Applications.--With respect to any application 
     pending before the Federal Communications Commission for more 
     than 60 days as of the date of enactment of this Act, the 
     Commission shall approve or deny such application with or 
     without conditions within 30 days after such date of 
     enactment. If the Commission fails to approve or deny such 
     applications within such 30-day period, such pending 
     applications shall be deemed approved without condition. 
     Section 417(a)(2) of the Communications Act of 1934 (as added 
     by this Act) shall not apply to such pending applications.

     

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