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Merger Fee Language Revised

House to Vote Friday on FY23 Omnibus; ICS, LPTV Bills Head to Biden

The House is set to vote Friday on passing the FY 2023 appropriations omnibus package (HR-2617), which would extend the FCC’s spectrum auction authority through March 9 in lieu of a spectrum legislative deal that got objections (see 2212200077) from Sen. Mike Rounds, R-S.D. The Senate voted 69-29 Thursday to pass the omnibus, which also includes increases in federal funding for the FCC, FTC, NTIA, other Commerce Department agencies, the DOJ Antitrust Division and CPB (see 2212210077). The House, meanwhile, passed the Martha Wright-Reed Just and Reasonable Communications Act (S-1541) and Low Power Protection Act (S-3405) on voice votes a day after the Senate cleared both measures.

The Senate voted 88-8 to attach an amendment to HR-2617 that includes a revised Merger Filing Fee Modernization Act (HR-3843/S-228), which raises fees for larger transactions and lowers the fee for small and medium deals in a bid to increase funding for FTC and DOJ merger reviews. The revised version eliminates a two-year delay in changing the fees and specifies that state venue provisions won’t apply retroactively. The revisions are aimed at “simply restoring the language that passed in the Senate and passed in the House before this bill went through the Mixmaster that is called the omnibus,” Sen. Amy Klobuchar, D-Minn., said on the floor.

S-1541 and S-3405 were late additions to the House's Thursday agenda, after Senate approval of the two measures the previous day, lobbyists told us. S-1541 requires the FCC to factor industry-wide average costs for telephone and advanced communication services, along with safety and security costs, in new rate-setting cycles. S-3405 requires the FCC open a window to allow low-power television stations to upgrade to better-protected Class A status (see 2206220070). President Joe Biden is expected to sign both measures.

FCC Chairwoman Jessica Rosenworcel said Thursday she’s “committed to working with my colleagues on the Commission to expeditiously move new rules forward to fix” problems S-1541 sought to address. “The FCC has for years moved aggressively to address this terrible problem, but we have been limited in the extent to which we can address rates for calls made within a state’s borders,” she said: Now, the commission “will be granted the authority to close this glaring, painful, and detrimental loophole in our phones rate rules for incarcerated people.”

Rep. Bobby Rush, D-Ill., who sponsored the Martha Wright Prison Phone Justice Act (HR-2489), praised passage of the substantially similar S-1541. "Charging families exorbitant costs to call incarcerated loved ones" is "inhumane & immoral, which is why I have been working with advocates for years to stop it," he tweeted. "This practice serves only to fatten profits & harm families, and once [Biden] signs the bill, we will put a stop to it." S-1541’s prospects appeared to improve after the Senate Commerce Committee advanced a revised version of the measure in March (see 2203220077).

Color of Change and seven other groups backing S-1541 also jointly hailed its passage Thursday. "It is vital that we end carceral profiteering once and for all,” said Sakira Cook, Color of Change vice president-government affairs. “The predatory correctional telecom industry has avoided regulation for too long, and families have paid the exorbitant price,” said Worth Rises Executive Director Bianca Tylek: “This legislation will bring extraordinary relief to families with incarcerated loved ones -- parents and children especially -- who need to stay connected. Those connections are important to the strength of families, well-being of people inside, and their mutual success upon reentry.”

NAB lauded passage of S-3405, which it strongly backed amid opposition from some low-power television groups (see 2206220070). The measure “will enable innovation and local investment for the low power television stations that serve the millions of Americans living in small and rural markets,” said CEO Curtis LeGeyt: “These broadcast stations play a critical role in keeping their viewers informed with community-centered journalism, public affairs programming and lifeline information during times of emergency.”

In addition to the bipartisan S-228 the Senate passed Thursday, it passed the State Antitrust Enforcement Venue Act (S-1787) (see 2209260060).