​For those interested in the aggressive give and take between the Democrat FCC Commissioners Wheeler, Rosenworcel and Clyburn and the two Republicans, Pai and O'Rielly here is a somewhat bad transcript of the FCC Enforcement Bureau Restructuring discussion of this morning's FCC open meeting. Note especially O'Rielly's statutory authority argument which is interesting but unfortunately, to me and others, not overly convincing. A lot of promises to do pirate broadcasting enforcement but nothing on a five year old New York City unlicensed jammer of Amateur, GMRS, Broadcast Auxiliary and Land Mobile Public Safety frequencies. Startling statement from Chairman Wheeler who claims that during HIS TENURE at FCC there have been some 200 pirate broadcast busts. If so, they sure have not publicized many of them. 73, Chris W3KD P.S. Thanks to NAB for this transcript.​ *Subject: *Today's FCC meeting - Enforcement Modernization Item Transcript (from live captioning): 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. -- Christopher D. Imlay Booth, Freret & Imlay, LLC 14356 Cape May Road Silver Spring, Maryland 20904-6011 (301) 384-5525 telephone (301) 384-6384 facsimile W3KD@ARRL.ORG