Today's Regulatory Mix:  FTC and DOJ Hart-Scott Rodino Act Changes, US Senate Small Business Broadband and Emerging Information Technology Enhancement Act, FCC And NARUC Urge Governors To Lower State ICS Rates

FTC and DOJ Hart-Scott Rodino Act Changes

The Federal Trade Commission, with the concurrence of the Antitrust Division of the U.S. Department of Justice, has issued a Notice of Proposed Rulemaking and an Advance Notice of Proposed Rulemaking regarding proposed changes to the rules and interpretations implementing the Hart-Scott-Rodino Act (HSR).  The HSR Act and its implementing rules require the parties to certain mergers and acquisitions to file notifications with the antitrust agencies and to wait a specified period of time before consummating such transactions.   Comments are due 60 days after publication.

The Notice of Proposed Rulemaking proposes two changes to the existing rules. The first would require filers to disclose additional information about their associates and to aggregate acquisitions in the same issuer across those entities. The second change is a new proposed rule that would exempt the acquisition of 10% or less of an issuer’s voting securities unless the acquiring person already has a competitively significant relationship with the issuer.

The Advance Notice of Public Rulemaking seeks to gather information on seven topics that will help determine the path for future amendments to the HSR rules and interpretations of those rules. These topics include: the size of transaction; real estate investment trusts; non-corporate entities; acquisitions of small amounts of voting securities; influence outside the scope of voting securities; transactions or devices for avoiding the HSR Act requirements; and issues pertaining to the HSR filing process.

US Senate Small Business Broadband and Emerging Information Technology Enhancement Act

US Senators Shaheen (D-NH),  Kennedy (R-LA), Ernst (R-IA), Hirono (D-HI), Risch (R-ID) and Markey (D-MA) announced they have reintroduced legislation aimed at improving programs operated by the Small Business Administration (SBA) to address problems associated with a lack of broadband internet and other emerging information technology resources, and better assist small businesses in accessing and successfully adopting these tools.  The Senators agreed that access to broadband services, especially in in rural areas, has become a top concern amid the COVID-19 pandemic, as businesses and workers continue working remotely.

The Act would make the following improvements to the SBA’s approach to broadband:

• Directing the SBA Office of Investment and Innovation to designate a senior employee to serve as the broadband and emerging information technology (BEIT) coordinator;
• Providing SBA employees BEIT training to assist small businesses in the use of such technologies;
• Reporting on a biennial basis regarding the programs and activities of the SBA relating to broadband and other emerging information technologies;
• Requiring the SBA Chief Counsel for Advocacy to evaluate the impact of broadband speed and price on small businesses; and
• Making services such as assistance in accessing and using BEIT an authorized activity of small business development centers (SBDCs).

FCC and NARUC Urge Governors to Lower State ICS Rates

FCC Chairman Ajit Pai and NARUC President Brandon Presley, have written to the leadership of the National Governors Association urging governors to take action to ensure incarcerated individuals can maintain vital community connections by addressing the too-often exorbitant rates and fees charged for inmates to make intrastate phone calls.  The letter includes a list of every prison and jail in the country that, according to an FCC information collection, charged intrastate rates above the interstate caps last year, with some exceeding $20 for a 15-minute call.  The letter also states that the FCC’s analysis shows that “intrastate rates for debit or prepaid calls substantially exceed existing interstate rates in 45 states. The FCC has also identified instances in which a 15-minute intrastate debit or prepaid call costs nearly seven times more than an interstate call of the same duration. And 27 states allow excessive “first-minute” charges that are up to 26 times that of the first minute of an interstate call. This situation is unacceptable, especially as the overwhelming majority of calls from incarcerated individuals—roughly 80%—are billed as intrastate.”

The letter notes that the FCC is prohibited from regulating intrastate ICS rates and that some state regulators lack jurisdiction to regulate intrastate ICS rates.  Such authority, instead, falls to Governors, legislators, or state corrections officials.  The letter concludes that “the statutory limitations on the state and federal authority prevent us from squarely addressing unjust and unreasonable intrastate rates. Until there is Congressional or state legislative action, neither the FCC nor state commissions can cap the excessive intrastate rates that lie beyond our authority. As such, we urge each of you to examine the rates and related fees that are currently charged in your state and to take much-needed action… Prompt and meaningful action on intrastate rates is critical to ensuring that incarcerated individuals and their loved ones can maintain vital connections during the COVID-19 pandemic and beyond.”

The letter also notes the FCC’s recent proposal to further reduce interstate and international ICS rates and clarification on assessment of ancillary service charges. See the Regulatory Mix dated 8/6/20.

Inteserra Briefing Service subscribers see Briefings dated 8/25/20 and 8/19/20.

Recent Briefing Headlines from Inteserra:

FCC Announces Effective Date Of Call Blocking Safe Harbor And Single Point of Contact Rules

FCC RDOF Information Collections Become Effective

FCC Requests Comment on Rural Call Completion Report

Nevada Seeks Comment On Late Fees Rule

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The Regulatory Mix, Inteserra’s blog of telecom related regulatory activities, is a snapshot of PUC, FCC, legislative, and occasionally court issues that our regulatory monitoring team uncovers each day. Depending on their significance, some items may be the subject of an Inteserra Briefing.