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I have read with great interest the testimony submitted to the Task Force by Professor

Dave Welborn and found it persuasive.

As you know, a few years ago Dave did an

especially valuable study for the Administrative Conference on the subject of the

structure and management of the collegial regulatory agencies and I commend that study

to your attention.

of course, revising the structure of the FEC to provide for a strong chairman,

whether with a fixed term or serving at the pleasure of the President, is an obvious

prescription for a more activist, more effectively run Commission. In a sense, this begs

the major question, which is, What kind of Commission does Congress want? The Federal

Election Campaign Act reflects an obvious and an understandable concern that the Act

not be administered in such a manner as to serve the interests of one political party over another. Therefore, Congress provided, quite deliberately, one must conclude, for a "weak" Commission, in which every action of any significance commands a substantial consensus among the members. There are certain inescapable costs of such a governing

structure in an agency. At a minimum there is a substantial risk that the attention of

the members will be diverted from long term planning and the resolution of hard policy

questions. They will get involved, and probably bogged down, in routine matters and

administrative details that could better be handled by the chairman individually or even

delegated to staff. I cannot say that this has in fact occurred at the FEC, merely that

the statutory structure, and, particularly, the provisions of section 437c(c) make it very

likely.

If the Federal Election Commission can be analogized to an automobile, any

consideration of the Election Campaign Act must conclude that

more legislative

attention was lavished on the brakes than on the engine.

Without endorsing any

particular design change, we suggest that is the Task Force determines that performance has been inadequate, adding more power to the engine is the way to go.

We are grateful for the opportunity to appear today and will be very glad to attempt

to answer your questions.

This possible draft legislation reflects the opinion of the Chairman only. Commissioner Ray does not concur and will subsequently submit his comments on these issues.

Staff of the Tribunal

SEC. 102. (a) Section 805 of title 17, United States Code,

is to be amended by deleting section 895 (a) and replacing it with

the following new subsections:

*(a)

The Chairman, subject to the approval of the Commis

sion shall appoint and fix appropriate compensation for a general counsel and a chief economist and sufficient staff to carry out

the functions of said offices."

(b)

The appointments required by section 895 (a) of

title 17, United States Code, as amended by subsection (a) of this

section, shall be effective no earlier than

SEC. 192 (b) Section (b) of 895 of Title 17 is redesignated as

section (c).

This possible draft legislation reflects the opinion of the Chairman only. Commissioner Ray concurs with sections (a) & (b) but may submit subsequent comments.

Judicial Review of Tribunal Decisions

SEC. 103. (a) Section 810 of Title 17, United States Code,

is amended by inserting after the second sentence the following:

"Such judicial review shall not be affected by the creation of

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(b)

The amendment made by subsection (a) of this section

shall not apply to appeals filed before the date of the enactment

of this Act.

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This possible draft legislation reflects the opinion of the Chairman only. Commissioner Ray does not concur and will subsequently submit his comments on these issues.

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Language in Section 104 (b) may be superfluous. It serves reinforce the language in Section 201 (a) which the Chairman endorses.

Tribunal Guidelines

SEC. 104 (a) Section 801 (b) (B) of title 17, United States

Code, is amended in the second sentence by striking out "In" and

all that follows through "users:" and inserting in lieu thereof

the following: "In determining the reasonableness of rates pro

posed following an amendment of Federal Communications Commis

sion rules and regulations, and any subsequent adjustment to those rates pursuant to section 884 (b), The Copyright Royalty Tribunal shall consider the broad policy objectives set forth in

clause (1) of subsection 801 (b) and shall apply said policy by

considering, among other factors, (1) the extent to which

television broadcast stations compensate copyright owners for

the secondary transmission of their signals by. çable systems located outside their respective local service areas, (2) the

extent to which television broadcast stations are compensated by

advertisers for the secondary transmission of their signals by cable systems, (3) the competitive harm to television broadcast stations by the importation of distant television signals into their markets, (4) the extent to which the value to cable systems of additional distant signals decreases or increases as such signals are carried, (5) the impact of the rates on cable

subscribers both as to the availability and as to cost of receiving, copyrighted materials, (6) the impact of the rates on

competition between cable and television broadcast stations, and

(7) the impact of rates on the economies of industries, with regard to availability, marketability and cost of delivery of

copyrighted works to viewers.".

SEC. 104 (b).

Section 891 (2) (B) shall be amended by adding

the following language at the end thereof:

"However the protection embodied in the aforementioned pro-
viso shall not be used to mandate adjustment for those sig-

nals not specifically exempted by the Federal Communication

1

Commission as described under (i) and (ii) of this subsec

'tion.".

(c) Section 801 (b) (2) (C) of title 17, United States Code, is

amended by adding at the end thereof the following new sentence:
"In determining the reasonableness of such rates, and any subse-
quent adjustment to those rates pursuant to section 894 (b), the
Copyright Royalty Tribunal shall consider the broad policy objec-
tives set forth in clause (1) of this subsection: 881(b) and the
factors set forth in subclause (B) of this clause.".

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