MR. CHAIRMAN, COMMISSIONERS,  THE NEXT ITEM ON YOUR AGENDA IS  PRESENTED BY THE ENFORCEMENT  BUREAU, TRAVIS, CHIEF OF THE  BUREAU, WILL GIVE THE  INTRODUCTION.  

 CHAIRMAN WHEELER: MR. LE  BLANC.  

 GOOD MORNING, MR. CHAIRMAN  AND COMMISSIONERS.  I AM PLEASED TO PRESENT YOU AN  ORDER THAT RESTRUCTURES THE  ENFORCEMENT BUREAU'S FIELD  OPERATIONS.  THE ENFORCEMENT BUREAU CURRENTLY  HAS APPROXIMATELY TWO DOZEN  FIELD LOCATIONS.  THESE OFFICES RESOLVE  INTERFERENCE ISSUES, ASSIST WITH  DISASTER RECOVERY, DEVELOP  DIRECTION FINDING TECHNOLOGY,  AND ENFORCE COMPLIANCE WITH THE  COMMISSION'S RULES.  OUR FIELD EMPLOYEES PERFORM  VALUABLE WORK.  MANY HAVE SERVED THE COMMISSION  FOR DECADE.  THIS MORNING, IN THE PRESENCE OF  ALL OUR COMMISSIONERS AND  AMERICAN PUBLIC, I WANT TO TAKE  A MOMENT OF PERSONAL PRIVILEGE  TO ACKNOWLEDGE THE DEDICATION  THAT OUR FIELD PERSONNEL HAVE  SHOWN TO THE COMMISSION, AND I  WANT TO SALUTE THEIR PUBLIC  SERVICE.  IT HAS BEEN NEARLY TWO DECADES  SINCE OUR FIELD OPERATIONS HAVE  BEEN THOROUGHLY EXAMINED.  THE PROPOSAL BEFORE YOU ALIGNS  THE BUREAU'S FIELD OPERATIONS TO  ENABLE FIELD AGENTS TO FOCUS  MORE EFFICIENTLY ON PRIORITIES,  PARTICULARLY ENFORCEMENT OF THE  RULES GOVERNING RADIO FREQUENCY  INTERFERENCE ISSUES.  THE PROPOSAL IS FISCALLY  RESPONSIBLE.  IT STREAMLINES THE FIELD'S  MANAGEMENT STRUCTURE AND SAVES  MILLIONS OF DOLLARS IN OFFICE  AND PERSONNEL EXPENSES.  ON BEHALF OF THE ENFORCEMENT  BUREAU, I WOULD LIKE TO THANK  THE MANY PEOPLE WHO PROVIDED  INPUT IN THIS PROCESS, INCLUDING  OUR COLLEAGUES IN THE FIELD AND  THROUGHOUT THE COMMISSION, OTHER  FEDERAL AGENCIES AND EXTERNAL  STAKEHOLDERS.  I ALSO WOULD LIKE TO THANK JOHN  WILKINS, BILL DAVENPORT, JOE  MOONEY, TOM GREEN, AND BRAD FOR  THEIR WORK ON THIS PROJECT.  WITH ME TO PRESENT THE ORDER IS  BILL DAVENPORT, DEPUTY CHIEF  ENFORCEMENT BUREAU.  ALSO JOHN WILKINS, MANAGING  DIRECTOR, OFFICE OF THE MANAGING  DIRECTOR.  BILL DAVENPORT WILL NOW PRESENT  THE ITEM.  

 GOOD MORNING, MR. CHAIRMAN  AND COMMISSIONERS.  THE COMMISSION LAST HE EXAMINED  THE ENFORCEMENT BUREAU'S FIELD  OPERATIONS APPROXIMATELY 20  YEARS AGO.  SINCE THEN, WE HAVE SEEN  SUBSTANTIAL CHANGES IN  COMMUNICATIONS TECHNOLOGY AND  INVESTIGATIVE CAPABILITIES.  AT THE SAME TIME, THE COMMISSION  HAS BEEN WORKING WITH FLAT OR  DECREASED BUDGETS IN RECENT  YEARS.  IT IS CLEAR THAT THE FIELD  NEEDED TO BE REORGANIZED TO  BETTER ENABLE OUR FIELD AGENTS  TO RESPOND EFFECTIVELY TO THE  SPECTRUM ENFORCEMENT CHALLENGES  OF THE 21ST CENTURY.  THE ITEM BEFORE YOU REORGANIZES  THE ENFORCEMENT BUREAU'S FIELD  OPERATIONS.  SOME OF THE KEY ELEMENTS OF THE  PLAN ARE AS FOLLOWS: THE  COMMISSION WILL CONTINUE TO  OPERATE FIELD OFFICES IN  ATLANTA, BOSTON, CHICAGO,  COLUMBIA, MARYLAND, DALLAS,  DENVER, HONOLULU, LOS ANGELES,  MIAMI, NEW ORLEANS, NEW YORK  CITY, PORTLAND, OREGON, AND  S   SAN FRANCISCO.  WE WILL CLOSE FIELD OFFICES IN  ANCHORAGE, BUFFALO, DETROIT,  HOUSTON, KANSAS CITY, NORFOLK,  PHILADELPHIA, SAN DIEGO, SAN  JUAN, SEATTLE, AND TAMPA.  WE WILL MAINTAIN A FIELD  PRESENCE IN ALASKA AND PUERTO  RICO BY WORKING WITH  CREDENTIALED LOCAL CONTRACTORS  TO ASSIST ON TIME SENSITIVE  INTERFERENCE MATTERS.  THE COMMISSION WILL IMPLEMENT A  NATIONWIDE OUTPLACEMENT EFFORT  TO ASSIST ANY DISPLACED  EMPLOYEES WITH FINDING NEW  POSITIONS.  FINALLY, WE WANT TO SAY HOW MUCH  WE APPRECIATE THE HARD WORK AND  FEDERAL SERVICE OF OUR FIELD  EMPLOYEES.  MANY OF THE PEESM AFFECTED BY  THESE CHANGES ARE LONG TERM FCC  EMPLOYEES, AND WE RECOGNIZE THE  STRESS THAT THIS PROCEEDING HAS  GENERATED FOR THEM AND THEIR  FAMILIES.  FOLLOWING RELEASE OF THIS ORDER,  THE OFFICE OF THE MANAGING  DIRECTOR WILL PROVIDE FORMAL  NOTICE TO BEGIN NE GOASH YAIGS  OVER THE IMPACT AND  IMPLEMENTATION OF THIS PLAN.  THE ENFORCEMENT BUREAU  RECOMMENDS THE COMMISSION'S  ADOPTION OF THIS ITEM.  THANK YOU.  

 CHAIRMAN WHEELER: THANKS,  MR. DAVENPORT.  COMMISSIONER CLYBURN.  

 COMMISSIONER CLYBURN: THANK  YOU, MR. CHAIRMAN.  FACING US THIS MORNING IS A  DECISION THAT IS BOTH DIFFICULT  AND PAINFUL.  WE FIND OURSELVES AT A  CROSSROADS, FORCED TO COME T TERMS  WITH STARK BUDGET DRI REALITIES  DIRECTED AND ENFORCED BY  CONGRESS, AND ITS ULTIMATE  IMPACT ON SOME OF THE MOST  INTELLIGENT AND DEDICATED  PERSONS IN FEDERAL GOVERNMENT  WHO PROUDLY AND ABLY ENFORCE  COMPLIANCE RULES FOR OUR AGENCY  IN THE FIELD.  BUT THE DIFFICULT PAINFUL TRUTH  IS THIS: EXCEPT FOR AWBTIONS  FUNDING, THE FCC HAS BEEN  OPERATING UNDER A FLAT BUDGET  FOR THE PAST FIVE FISCAL YEARS,  AND IF WE FACTOR IN INFLATION  AND THE IMPACT OF THE SEQUESTER,  OUR PURCHASING POWER HAS  CONTINUED TO DECREASE STEADILY  OVER TIME.  I SAW THIS FIRSTHAND AS ACTING  CHAIR, MR. CHAIRMAN, WHEN IN THE  MIDDLE OF SEQUESTRATION,  $17 MILLION OF OUR LICENSEES'  FUNDS WERE TAKEN FROM OUR BUDGET  FOR GOVERNMENT WIDE DEFICIT  REDUCTION.  AS A RESULT, WE HAVE BEEN  DELIBERATING THIS ITEM FOR  MONTHS.  AND NOW MUST DECIDE HOW TO COME  TO TERMS WITH THIS UNCOMFORTABLE  FISCAL REALITY.  NO ONE IN OUR POSITION, NO ONE  EVER WANTS TO FIND THEMSELVES  HERE.  BUT AS I CAST MY VOTE TODAY, I  COMMIT TO EVERYONE IMPACTED,  THAT THEY WILL CONTINUE TO HAVE  THIS AGENCY'S FULLEST SUPPORT IN  THE WEEKS AND MONTHS AHEAD.  THANK YOU.  

 CHAIRMAN WHEELER: THANK  YOU.  COMMISSIONER ROSENWORCEL?  

 COMMISSIONER ROSENWORCEL:  THE FIELD'S REORGANIZATION WE  HAVE BEFORE US IS NOT PERFECT,  BUT IT REPRESENTS A SIGNIFICANT  IMPROVEMENT OVER THE FIRST  PROPOSAL THAT WAS PLACED BEFORE  US BACK IN APRIL.  WITH WE OPENED MORE OFFICES AND  RETAIN RELATIONSHIPS IN SOME OF  OF THE HARDEST TO REACH AREAS OF  THE COUNTRY.  FOR THIS REASON, IT HAS MY  SUPPORT.  BUT AS WE MOVE FORWARD TO  MODERNIZE THE FIELD AND MANAGE  THE HARD BUDGETARY REALITIES  THAT MY COLLEAGUE COMMISSIONER  CLYBURN JUST SPOKE SO ELOQUENTLY  ABOUT.  WE NEED TO BE MINDFUL OF OLD  PROBLEMS, LIKE PIRATE RADIO, AND  WE ALSO NEED TO DO A BETTER JOB  OF INTEGRATING THE TERRIFIC  SMART EFFORTS AND WORK OF OUR  FIELD AGENTS INTO OUR WORK HERE  IN WASHINGTON.  

 CHAIRMAN WHEELER: HEAR,  HEAR.  COMMISSIONER PAI.  

 COMMISSIONER PAI: THE  ENFORCEMENT BUREAU'S FIELD  AGENTS PERFORM ESSENTIAL WORK.  THEY RESOLVE INTERFERENCE --  THEY FERRET OUT PIRATE RADIO  OPERATORS AND THEY PLAY A  CRITICAL ROLE IN ENSURING THAT  EVERYONE COMPLIES WITH THE  COMMISSION'S RULES.  DURING THE OCTOBER 2013  GOVERNMENT SHUTDOWN, OVER 25% OF  FCC EMPLOYEES WHO REMAINED ON  THE JOB WERE FIELD PERSONNEL.  EVEN THOUGH THEY REPRESENTED  LESS THAN 7% OF THE COMMISSION'S  WORKFORCE.  UNFORTUNATELY THE PROCESS  LEADING TO TODAY'S VOTE HAS NOT  BEEN OPTIMAL.  THE ORIGINAL FIELD OFFICE  REORGANIZATION PLAN WAS  DEVELOPED WITHOUT ADEQUATE INPUT  FROM EITHER FIELD PERSONNEL OR  KEY OUTSIDE STAKEHOLDERS.  MANY HAVE TOLD ME THEY BELIEVE  THE FCC'S LEADERSHIP COMMISSION  TO REPORT NOR TO JUSTIFY  PREDETERMINED OUTCOME.  THE END RESULT, OF COURSE, WAS A  PLAN THAT PROVOKED WIDESPREAD  OPPOSITION.  WIRELESS CARRIERS, BROADCASTERS  AND PUBLIC SAFETY OFFICIALS,  ALONG WITH DEMOCRATS AND  REPUBLICANS ON CAPITOL HILL, ALL  SPOKE OUT AGAINST IT.  AND I AGREE THAT THE ORIGINAL  PLAN WAS FLAWED.  TO POINT OUT JUST ONE OF THE  PROBLEMS, IT WOULD HAVE LEFT US  WITHOUT ANY FCC FIELD PRESENCE  IN EITHER THE ROCKY MOUNTAIN OR  GREAT PLAINS REGIONS.  A VOID WHICH WOULD HAVE MADE IT  IMPOSSIBLE TO RESPOND IN A  TIMELY WAY TO AN EMERGENCY, IN A  VAST SWATH OF OUR NATION.  I'M THEREFORE GRATEFUL TO THE  LEADERSHIP OF THE HOUSE ENERGY  AND COMMERCE COMMITTEE FOR  STEPPING UP TO THE PLATE.  THE COMMITTEE'S INTERVENTION  YIELDED REAL IMPROVEMENTS.  IN PARTICULAR, BECAUSE WE ARE  NOW MAINTAINING A FIELD PRESENCE  IN THE PACIFIC NORTHWEST, THE  ROCKY MOUNTAINS, THE GULF COAST,  NEW ENGLAND, ALASKA, HAWAII AND  PUERTO RICO, THE FCC WILL BE  ABLE TO ADDRESS INSTANCES IN  THOSE AREAS MORE QUICKLY THAN  WOULD HAVE BEEN POSSIBLE UNDER  THE ORIGINAL PLAN.  TO BE SURE WERE IT SOLELY UP TO  ME, THIS PLAN WOULD LOOK  SIGNIFICANTLY DIFFERENT.  FOR EXAMPLE, THE FRONT OFFICE  HERE IN WASHINGTON, D.C. HAS  MORE THAN DOUBLED SINCE 2008.  I BELIEVE THAT'S A MISTAKE TO  CONTINUE TO GROW THE BUREAU'S  FRONT OFFICE WHILE SUBSTANTIALLY  CUTTING THE NUMBER OF FIELD  AGENTS.  I WORRY THAT IT'S A SIGN OF A  GREATER INTEREST IN PRESS  HEADLINES THAN BREAD AND BUTTER  ENFORCEMENT WORK.  WORK THAT IS LESS GLAMOROUS BUT  NONE LESS CRITICAL.  NOT WITHSTANDING MY RESERVATION,  I'LL VOTE TO CONCUR ON THIS  ITEM.  THANKS TO THE HOUSE ENERGY AND  COMMERCE COMMITTEE'S  INVOLVEMENT, THANKS TO  COMMISSIONER O'RIELLY'S HARD  WORK, AND THANKS TO INPUT FROM  STAKEHOLDERS INCLUDING THE  NATIONAL ASSOCIATION OF  BROADCASTERS AND CTIA, WE HAVE  MADE TANGIBLE PROGRESS IN  IMPROVING THIS PLAN.  MY VOTE TODAY IS A VOTE TO  SUPPORT THAT PROGRESS.  AS WE MOVE FORWARD IN  IMPLEMENTING THIS PLAN, THERE  ARE CHALLENGES AHEAD.  MOST NOTABLY, WE NEED TO REPAIR  THE RELATIONSHIP BETWEEN THE HE  ENFORCEMENT BUREAU'S FRONT  OFFICE AND ITS FIELD AGENT.  IN RECENT MONTHS, I HAVE  RECEIVED NUMEROUS EMAILS FROM  FIELD PERSONNEL AND THE MESSAGE  WAS CLEAR, THEY DO NOT BELIEVE  THAT THEIR WORK IS VALUED.  THEY DO NOT BELIEVE THAT THERE'S  ADEQUATE COMMUNICATION BETWEEN  FCC HEADQUARTERS AND THE FIELD.  AND THEY DO NOT BELIEVE THAT THE  FCC'S FIELD OPERATIONS ARE W WELL  MANAGED.  IN THE MONTHS AHEAD, WE NEED TO  DO WHAT WE CAN TO IMPROVE THIS  SITUATION.  AND GIVE FIELD AGENTS THE  SUPPORT THAT THEY NEED TO CARRY  OUT THIS IMPORTANT MISSION.  THANK YOU, MR. CHAIRMAN.  

 CHAIRMAN WHEELER: THANK  YOU, MR. PAI.  COMMISSIONER O'RIELLY.  

 COMMISSIONER O'RIELLY:  REORGANIZING THE ENFORCEMENT  BUREAU'S FIELD STRUCTURE HAS  BEEN TRUMPETED AS A MECHANISM TO  IMPROVE EFFICIENCY AND MAKE  BETTER USE OF LIMITED RESOURCES  ON A MORE CONSTRAINED BUDGET.  THAT IS THE COMMISSION WILL DO  MORE WITH LESS.  I'M ALL FOR EFFORTS THAT REALIZE  EFFICIENCIES BUT GIVEN THE  CIRCUITOUS ROUTE THIS PLAN HAS  TAKEN AS COMMISSIONER PAI AND  OTHERS HAVE INDICATED AND  SEVERAL OUTSTANDING ISSUES, I DO  WONDER IF EXPECTATIONS WILL  BEING SET TOO HIGH.  AS SUCH, I CONCUR WITH THIS  PLAN.  ITEM REQUIRES THAT ALL FIELD  AGENTS MUST NOW HAVE AN  ELECTRICAL ENGINEERING  BACKGROUND.  IN DOING, SO IT EYE LIMB NAITS  THE COMPLIANCE SPECIALIST  POSITION.  WHILE AN ENGINEERING IT DEGREE  MAY PROVIDE A VALUABLE  BACKGROUND FOR THE FIELD  OFFICES, ON THE JOB KNOW-HOW,  MANAGEMENT EXPERIENCE AND  WORKING RELATIONSHIPS CULTIVATED  OVER YEARS IN THE COMMUNITY VERY  WELL MAY PROVE TO BE EVEN MORE  IMPORTANT IN DELIVERING REAL  RESULTS.  EVEN IF IT'S REALLY NECESSARY TO  IMPOSE AN ELECTRICAL ENGINEERING  PREREQUISITE, MORE THOUGHT  SHOULD HAVE GONE INTO  GRANDFATHERING THIS CURRENT SIX  EMPLOYEES WHOSE POSITIONS WILL  BE ELIMINATED.  THE FIELD OFFICES ARE THE  COMMISSION'S FRONT LINE ON  ENFORCEMENT, INEVITABLY, THE  PROPOSAL TO STREAMLINE FIELD  OPERATIONS GENERATED SERIOUS  CONCERNS REGARDING THE FUTURE  ENFORCEMENT OF OUR RADIO  FREQUENCY INTERFERENCE RULES.  TAKE AS AN EXAMPLE PIRATE RADIO  STATIONS, WHICH MY COLLEAGUES  HAVE MENTIONED, WHICH IN SEVERAL  AREAS ARE PROLIFERATING WILDLY  UNCHECKED BY THE FCC, AFTER  REPEATED REQUESTS, SOME LANGUAGE  WAS EVENTUALLY ADDED TO THIS  ITEM, COMMITTING TO  DEVELOPING -- TO DEVELOP A  COMPREHENSIVE POLICY AND  ENFORCEMENT APPROACH TO PIRATE  RADIO.  HOWEVER, IT DOES NOT GO NEARLY  FAR ENOUGH TO GIVE ME ANY  CONFIDENCE THAT THE COMMISSION  WILL ACTUALLY DO SOMETHING ANY  TIME SOON ABOUT THE ONGOING  ESCALATING ASSAULT ON THE  INTEGRITY OF OUR AIRWAVES.  WE ALREADY HAVE A COMPREHENSIVE  POLICY ON PIRATE RADIO.  THE POLICY IS THAT IT'S ILLEGAL.  THE ONLY ACCESSIBLE ENFORCEMENT  APPROACH IS THAT WE GO AFTER  ILLEGAL BROADCASTING OPERATIONS  AND SHUT THEM DOWN.  FULL STOP.  SO ON THAT, I WAS HOPING TO ASK  SOME QUESTIONS OF PEOPLE IT AT  THE TABLE IF I COULD.  MR. LEBLANC, IN PARAGRAPHS 9 AND  18, AND I REFERENCE THIS, WE'RE  GOING TO DEVELOP A COMPREHENSIVE  POLICY AND ENFORCEMENT APPROACH  TO THE ISSUE OF UNLICENSED RADIO  BROADCASTING.  THIS SHOULD BE SOMETHING WE  SHOULD BE ABLE TO DO WITHIN A  COUPLE MONTHS.  IS THERE ANY REASON WE CANNOT DO  THIS BY THE END OF THE SUMMER?  

 SO AS YOU KNOW, COMMISSIONER  O'RIELLY, THE CHAIRMAN, ALONG  WITH THE MEDIA BUREAU AND  ENFORCEMENT BUREAU HAVE BEEN  WORKING WITH THE BROADCASTERS TO  DEVELOP AND IMPLEMENT POLICY AND  ENFORCEMENT CHANGES THAT WOULD  MAKE OUR ACTIVITIES AROUND  PIRATE RADIO ENFORCEMENT MORE  EFFECTIVE AND MORE EFFICIENT.  WE JUST HAD THE FIRST MEETING OF  THAT GROUP APPROXIMATELY TWO  WEEKS AGO.  

 COMMISSIONER O'RIELLY:, I  WAS THERE.  

 I'M HOPEFUL WE WILL BE ABLE  TO HAVE ANOTHER MEETING SOON AND  THAT WE WILL BE ABLE TO  IMPLEMENT CHANGES.  SOME OF THEM ARE MORE LONG TERM,  I THINK WE DISCUSSED, SOME ARE  SHORTER TERM.  MY HOPE IS THAT THE SHORTER TERM  ONES, WE COULD BEGIN TO  IMPLEMENT SOONER, BUT THE LONGER  TERM ONES, I THINK WOULD TAKE --  

 COMMISSIONER O'RIELLY: I  DON'T MEAN TO CUT YOU OFF BUT I  WASN'T ASKING ON IMPLEMENTATION  TIME FRAME, I WAS ASKING  DEVELOPING A COMPREHENSIVE  POLICY AND ENFORCEMENT APPROACH,  WHICH I KNOW IS ALREADY ONGOING,  CAN WE DO THAT IN THE NEXT SIX  WEEKS, BY THE END OF THE SUMMER?  BY THE END OF AUGUST, CAN WE  HAVE THAT DONE?  

 I WOULD HOPE SO.  THERE'S NO GUARANTEE, WE HAVE A  LOT OF PEOPLE THAT HAVE TO WORK  TOGETHER, THERE'S A LOT THAT  NEEDS TO BE DONE, BUT I THINK  THAT THERE'S A COMMITMENT AMONG  THE SENIOR LEADERSHIP IN THE  COMMISSION AS WELL AS THE  COMMISSIONERS TO TRY TO IDENTIFY  SOLUTIONS TO ASSIST WITH PIRATE  RADIO ENFORCEMENT GOING FORWARD.  

 COMMISSIONER O'RIELLY:  OKAY, THANK YOU.  

 CHAIRMAN WHEELER: CAN I  JUMP IN FOR A SECOND?  

 COMMISSIONER O'RIELLY:  SURE.  

 CHAIRMAN WHEELER: THIS IS  NOT AS THOUGH PIRATE RADIO HAS  BEEN IGNORE.  I THINK SINCE I'VE BEEN HERE,  WE'VE HAD 200 OR SO ACTIONS  AGAINST PIRATE RADIO.  AND WE WILL CERTAINLY CONTINUE  THAT.  

 COMMISSIONER O'RIELLY: I'M  LOOKING FORWARD TO A  COMPREHENSIVE POLICY AND  ENFORCEMENT APPROACH IN THE NEXT  SIX WEEKS.  MR. SALA, PURSUANT TO  ADMINISTRATIVE PROCEDURES ACT,  THE IS THE COMMISSION REQUIRED  TO EXPLAIN ITS REASONING AND  RATIONALE FOR EACH DECISION IT  MAKES IN AN ITEM?  IF YOU COULD, YES OR NO.  

 IT IS REQUIRED TO PROVIDE  JUSTIFICATION REQUIRED FOR  JUDICIAL REVIEW.  

 COMMISSIONER O'RIELLY: IS  IT TRUE THAT IF THE COMMISSION  DOES NOT DO THIS, IT CAN PROVIDE  A POTENTIAL LITIGATION RISK FOR  A COURT TO OVERTURN A COMMISSION  DECISION?  YES OR NO?  

 THE STANDARD REEF VIEW IS NOT  THE SAME IN EVERY INSTANCE,  COMMISSIONER, AND DEPENDING ON  THE STANDARD OF REVIEW, THE  OBLIGATION ON THE COMMISSION CAN  DIFFER.  

 COMMISSIONER O'RIELLY:  SURE, AND POTENTIAL LITIGATION  RISK IS WHAT I WAS SAYING, YES?  

 CORRECT.  

 COMMISSIONER O'RIELLY: YES.  

 FOE TENSION RISK NEEDS TO BE  MEASURED BETWEEN THE RECORD AND  THE STANDARD OF REVIEW.  

 COMMISSIONER O'RIELLY: GOT  YOU.  IT'S YES OR NO.  SIMILARLY, YOU MADE THE ARGUMENT  TO THE COMMISSION EVEN MUST  CONSIDER AND RESPOND TO EACH  ARGUMENT REMAINED IN RESUMMONS  TO AN ITEM, IS THAT CORRECT?  POINTS THAT WE MAKE?  

 YES, WE'VE TAKEN THE POSITION  THAT COMMISSIONER ISSUES  DISSENTING STATEMENT CASE LAW  SUGGESTS THAT THE COMMISSION  NEED RESPOND TO IT.  

 COMMISSIONER O'RIELLY: SO  GENERAL COUNSEL, DID YOU HAVE A  CHANCE TO READ THE FIELD  MODERNIZATION ITEM?  

 I'M FAMILIAR WITH IT, YES.  

 COMMISSIONER O'RIELLY: ALL  RIGHT.  SO IS IT ACCURATE THAT THE ITEM  DOES NOT EXPLAIN OR PROVIDE ANY  RATIONALE FOR THE STATUTORY  AUTHORITY CLAIMED BY THE  COMMISSION TO CONDUCT THE  CHANGES AUTHORIZED?  

 I DON'T BELIEVE -- WITH ALL  DUE RESPECT, COMMISSIONER, I  WOULD NOT CONCUR IN THAT  JUDGMENT.  I BELIEVE THE ITEM DOES PROVIDE  THE SUPPORT NECESSARY TO SUPPORT  THE USE OF STATUTORY --  

 COMMISSIONER O'RIELLY: AND  EXPLAIN OR PROVIDE THE  RATIONALE, DOES IT DO THAT?  

 IT PROVIDES THE RATIONALE SES  SAIR EE TO A REVIEWING COURT  SHOULD THAT EVER COME TO PASS  BUT THE BASIS IS STATUTORY  AUTHORITY.  

 COMMISSIONER O'RIELLY:  WHICH PARAGRAPH WOULD THAT BE  WHERE EXPLAINS THE RATIONALE?  

 COMMISSIONER, THE ORDER, I  BELIEVE, EXPLAINS, FOR EXAMPLE,  IN PARAGRAPH 2, THAT THE  COMMISSION IS DETERMINED TO MAKE  CHANGES IN THE FIELD IN ORDER TO  CREATE A MORE EFFECTIVE  ORGANIZATION WITHIN THE LIMIT OF  THE BUDGETARY CONSTRAINTS.  AND GOES ON AND TALKS ABOUT HOW  TO BETTER ALIGN THE FIELD --  WITH PRIORITIES OF THE  COMMISSION, AND CREATES  EFFICIENCY AND ABLE UPDATING OF  EMPLOYEES' SKILL SETS --  

 COMMISSIONER O'RIELLY: SURE  AND STATUTORY AUTHORITY  EXPLANATION.  

 ALL RIGHT.  IT PROVIDES A BASIS FOR THE  INVOCATION OF STATUTORY  AUTHORITY THROUGH THE  EXPLANATION OF THE RATIONALE AND  THE PUBLIC POLICIES ADVANCED BY  THE COMMISSION'S ORDERS.  

 COMMISSIONER O'RIELLY:  THANK YOU FOR YOUR TIME.  I HAVE A COUPLE PROBLEM WITH  THAT DIALOGUE.  RECENT ITEMS, HAD ORDER CLAIMS  WE HAVE STATUTORY AUTHORITY TO  IMPLEMENT THIS PLAN PURSUANT TO  SECTION 4I OF THE COMMUNICATIONS  ACT, AMONG OTHERS.  NOW I DO NOT VIEW SECTION 4I AS  AN INDEPENDENT GRANT OF  AUTHORITY PERMITTING THE  COMMISSION TO DO ANYTHING THAT  IT IS NOT ALREADY AUTHORIZED TO  DO UNDER OTHER STATUTORY  PROVISIONS.  EVEN IF ONE TAKES A DIFFERENT  VIEW, THE APPLICATION OF SOME  SORT OF SUPPOSED CATCH ALL 4I  AUTHORITY IS UNNECESSARY.  IN FACT, THE COMMISSION HAS  DIRECT STATUTORY AUTHORITY TO  ORGANIZE AND STAFF, THE ENTIRE  AGENCY, INCLUDING THE FIELD  OFFICES.  FURTHER, WE HAVE SPECIFIC  AUTHORITY TO ENFORCE OUR RULES  AGAINST PIRATE RADIO OPERATIONS  AND CHANGE HOW A COMPLAINT FILED  WITH THE FIELD OFFICE WOULD BE  ESCALATED.  MOREOVER, 4I IS PROBLEMATIC  BECAUSE IT'S ABUSING THE  DEFINITION AND PURPOSE OF  AUXILIARY AUTHORITY.  SECOND, INCLUDING REFERENCES TO  SECTION 4I AND OTHER VAGUE  PROVISIONS, RAISES ALARGER ISSUE  BECAUSE THEY HAVE BEEN CREEPING  UP AS PART OF BOILERPLATE LIST  OF AUTHORITIES AND OTHER ITEMS.  STATUTORY AUTHORITY IS  IMPERATIVE FOR EVERYTHING WE DO,  AND ACCORDINGLY, I IF I WERELY  BELIEVE THAT A DETAILED ANALYSIS  MATCHING EACH ACTION TO A  STATUTORY PROVISION SHOULD BE  INCLUDED IN ITEMS WE CONSIDER.  INSTEAD, WE ARE SEEING A PATTERN  OF INCLUDING DISCUSSION OF THE  TOP TWO OR THREE PERTINENT  PROVISIONS, THEN INCLUDING A  LAUNDRY LIST OF OTHER ASSERTED  AUTHORITY WITHOUT DISCUSSING ANY  OF THE JUSTIFICATION.  I JUST HAVE A BIG PROBLEM WITH  THAT AND I'M GOING TO TELL YOU,  I'M GOING TO PUSH THAT THIS BE  CORRECTED AND I WILL BE TALKING  ABOUT THIS IN THE COMING MONTHS.  THANK YOU, MR. CHAIRMAN.  

 CHAIRMAN WHEELER: THANK  YOU, MR. O'RIELLY, FOR THE LEGAL  SEMINAR HERE.  LET'S CONTINUE IT.  I MEAN, DO YOU WANT TO OPINE --  I BELIEVE THE LINE WAS "I DO NOT  VIEW," I'M NOT SURE THAT'S  NECESSARILY A BINDING CONCLUSION  OF THE AGENCY, BUT LET'S ASK THE  GENERAL COUNSEL --  

 COMMISSIONER O'RIELLY: I  DIDN'T THINK I SAID IT WAS.  

 CHAIRMAN WHEELER: WHAT ARE  YOUR OBSERVATIONS INSOFAR AS  THIS 4I AUTHORITY THAT THE  COMMISSIONER HAS RAISED?  

 WELL, FOR THOSE FOR YOU IN  THE ROOM WHO HAVE NOT PERHAPSED  MEMORIZED THE COMMUNICATIONS  ACT, PERHAPS I COULD JUST, FOR  THE PURPOSE OF THE CONVERSATION,  QUOTE THE LANGUAGE.  SECTION 4I SAYS, THE COMMISSION  MAY PERFORM ANY AND ALL ACTS,  MAKE SUCH RULES AND REGULATIONS,  AND ISSUE SUCH ORDERS NOT  INCONSISTENT WITH THIS CHAPTER  AS MAY BE NECESSARY IN THE  EXECUTION OF ITS FUNCTIONS.  THAT IS LANGUAGE THAT WAS  INCLUDED IN THE ORIGINAL  COMMUNICATIONS ACT OF 1934.  AS BEST I KNOW, IT'S BEEN -- BY  THE COMMISSION AS BASIS OF  STATUTORY AUTHORITY GOING BACK  TO 1949.  THAT'S NOT SURPRISING.  IT EXISTS IN A WORLD IN WHICH  CONGRESS WAS FAMILIAR WITH  NECESSARY AND PROPER CLAUSES.  THE MOST FAMOUS CASE OF WHICH  UNDOUBTEDLY WAS THE SUPREME  COURT DECISION IN MU CAN YOU LA  VERSUS MARYLAND.  IN FACT, THE SUPREME COURT HAS  CITED 4I IN UPHOLDING COMMISSION  AUTHORITY, MOST NOTABLY IN THE  SOUTHWESTERN CABLE CASE.  THE DC CIRCUIT IS RECENTLY AS  2010 GAVE AN EXAMPLE OF THE  PERMISSIBLE USE OF 4I, SAID, FOR  EXAMPLE, THE COMMISSION HAS  GIVEN THE O OBLIGATION TO RELEASE  A REPORT, AND THE D.C. CIRCUIT  SAID IN AN EXAMPLE 4I WOULD BE  COMMISSIONER REQUIREMENT -- TO  GATHER THE INFORMATION NECESSARY  TO MAKE THE RECORD IN ORDER TO  FULFILL THE STATUTORY  REQUIREMENT.  NOW, LIKE EVERY SECTION OF THE  STATUTE, SECTION 4I IS NOT  WITHOUT LIMITS.  THERE ARE OBLIGATIONS THAT MUST  BE MET.  BUT WITHIN ITS STATUTORY REACH,  IT PROVIDES A BASIS CONFIRMED BY  COMMISSION PRECEDENT COURT  ORDERS, AND I WOULD SAY RECENT  USAGE.  MY UNDERSTANDING IS THAT THIS  YEAR ALONE, OF COURSE AS I SAY,  4I HAS BEEN USED BACK FOR A VERY  LONG TIME, BUT THIS YEAR ALONE,  THE FULL COMMISSION AS I  UNDERSTAND IT HAS ADOPTED 47  ITEMS IN WHICH 4I WAS USED AS A  BASIS OF STATUTORY AUTHORITY, 40  OF WHICH HAVE BEEN ADOPTED  UNANIMOUSLY.  

 COMMISSIONER O'RIELLY:  SURE, AND TO FOLLOW UP, MY POINT  WAS THAT WITH ALL THAT  UNDERSTANDING, WHY WE COULDN'T  EXPLAIN THE USE AS IT RELATES TO  THE ITEMS THEMSELVES IN THE  ITEM.  IF IT'S SO PREVALENT, WHY  COULDN'T WE INCLUDE A PARAGRAPH  EXPLAINING THAT IN THE ITEMS,  AND THAT'S WHERE I WOULD LIKE TO  SEE GOING FORWARD.  THAT IS NOT THE VIEW OF THE  ENTIRE COMMISSION, THAT IS MY  VIEW, BUT I WOULD LIKE TO SEE  THAT GOING FORWARD AND PLAN TO  SPEAK ON THAT FURTHER.  THANK YOU, MR. CHAIRMAN.  

 CHAIRMAN WHEELER: LET US  RETURN TO THE ISSUE OF FIELD  OFFICES, AND I WANT TO SPEAK TO  MY FELLOW FCC EMPLOYEES AND  SPECIFICALLY LOOK AT THAT CAMERA  OUT THERE, BECAUSE I'M SPEAKING  TO YOU OUT IN THE FIELD.  THIS WAS A TOUGH DECISION.  BUT WE HAVE TO LIVE WITHIN OUR  REALITIES.  CONGRESS HAS ORDERED THAT WE  SPEND LESS.  THIS IS THE BEGINNING OF A  PROCESS THAT WE'LL SEE THAT  EVERYONE IS TREATED FAIRLY IN A  DIFFICULT SITUATION.  THE NEXT STEP, THE REFERENCE  WHERE WE FORMALLY NOTIFY THE  CONGRESS AND THE UNION, BOTH OF  WHICH WE HAVE INFORMALLY ALREADY  BEEN IN CONVERSATION WITH,  INCLUDING ME PERSONALLY.  WE WILL WORK WITH EVERY AFFECTED  EMPLOYEE TO MITIGATE THE IMPACT.  NOW I UNDERSTAND THAT WE TALK  ABOUT THIS IN TERMS OF A NUMBER  OF OFFICES THAT GET CLOSED.  BUT WE'RE NOT TALKING ABOUT  OFFICES, THESE ARE INDIVIDUAL  LIVES THAT ARE BEING A AFFECTED,  AND WE ARE PAINFULLY AWARE OF  THAT REALITY.  WHILE MANY OF THE AFFECTED  INDIVIDUALS WILL BE ELIGIBLE FOR  RETIREMENT, I RECOGNIZE THAT  RETIREMENT ISN'T EVERYBODY'S  GOAL.  AND SO WE WILL RETAIN  OUTPLACEMENT SERVICES AND  DEVELOP OTHER SERVICES TO HELP  WITH THESE INDIVIDUALS WHO HAVE,  AS A RESULT OF OUR ACTIONS, BEEN  PLACED IN THIS SITUATION.  WE'VE BEEN TOLD BY CONGRESS, AND  LET ME QUOTE HERE, TO DO LESS  WITH LESS.  I UNDERSTAND THAT CONGRESS WON'T  FUND OUR REQUESTS.  AS COMMISSIONER CLYBURN POINTED  OUT, EVEN A FLAT BUDGET IS A  REDUCTION.  IN FIVE YEARS OF FLAT BUDGET IS  A SERIOUS REDUCTION.  BUT I DO REJECT THE "DO LESS"  IDEA.  SO WE HAVE TO LOOK AT NEW  APPROACHES TO DO MORE WITH LESS.  TO THE EMPLOYEES WHO WILL REMAIN  IN THE FIELD, I'VE MET WITH YOU,  I'VE HEARD YOUR STORIES ABOUT  HOW YOUR EQUIPMENT WAS OUT OF  DATE BUT WE DIDN'T HAVE THE  MONEY TO PAY FOR IT.  WE'LL FIX THAT.  WE WILL GIVE YOU THE TOOLS TO  INCREASE YOUR DEDICATED  PRODUCTIVITY IT.  WE'VE HEARD YOU.  AND TO THOSE WHO COUNT ON OUR  FIELD PRESENCE, WE'LL BE THERE.  WE'LL BE THERE FOR YOU.  THE GOAL ISN'T TO MAINTAIN OUR  SERVICES.  THE GOAL IS TO IMPROVE THEM.  GIVEN THE REALITIES THAT WE HAVE  TO EXIST IN.  AND SO WITH THAT, I WILL CALL  FOR THE VOTE.  ALL IN FAVOR, SAY AYE.  AYE.  OPPOSED?  THE AYES HAVE IT.  THE ITEM CARRIES.  EDITORIAL PRIVILEGES ARE GRANTED  AND THE EXCEPTION IS NOTED.