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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
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 if 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 Commission 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
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 the Tribunal in the legislative branch.".
(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.
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.
Language in Section 104 (b) may be superfluous. It serves to reinforce the language in Section 201 (a) which the Chairman endorses.
SEC. 194 (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 proposed following an amendment of Federal Communications Commission rules and regulations, and any subsequent adjustment to those rates pursuant to section 804 (b), The Copyright Royalty Tribunal shall consider the broad policy objectives set forth in clause (1) of subsection 891(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 cable 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 17) 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 801 (2) (B) shall be amended by adding the following language at the end thereof:
"However the protection embodied in the aforementioned proviso shall not be used to mandate adjustment for those signals not specifically exempted by the Federal Communication
Commission as described under (i) and (ii) of this subsec
(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 subsequent adjustment to those rates pursuant to section 894 (b), the Copyright Royalty Tribunal shall consider the broad policy objectives set forth in clause (1) of this subsection: 891 (b) and the factors set forth in subclause (B) of this clause.".