Policy Resolution TST-15-20

WHEREAS, the National Black Caucus of State Legislators (NBCSL) recognizes the economic opportunity created by ownership of commercial wireless spectrum;

WHEREAS, more than 80 percent of African Americans and other minorities are avid users of wireless service and devices;

WHEREAS, the U.S. Department of Commerce’s Minority Business Development Agency (MBDA) has found that minority-owned businesses significantly contribute to U.S. innovation and the economy;

WHEREAS, Congress required the Federal Communications Commission (FCC) to promote the participation of small, minority, and women-owned businesses (MWBEs), and rural telephone companies in wireless spectrum auctions through the Designated Entity (DE) program, which incentivizes diverse ownership of commercial wireless spectrum;

WHEREAS, a recent white paper published by the Minority Media and Telecommunications Council (MMTC), “Digital Déjà vu: A Road Map for Promoting Minority Ownership in the Wireless Industry,” showed that as a result of judicial, legislative, and regulatory actions, the DE program has dwindled to ineffectiveness, particularly in encouraging new entry and MWBE participation in the wireless industry;

WHEREAS, key rule changes to the DE program the FCC enacted in 2006 were later vacated by a federal court of appeals for “serious” violations of the notice and comment obligations under the Administrative Procedure Act;

WHEREAS, the FCC’s 2006 rule changes increased barriers to DE participation in spectrum auctions by limiting the ability of DEs to create flexible business plans and gain access to capital;

WHEREAS, when the playing field is level, DEs and MWBEs have successfully proven their ability to raise capital and significantly contribute to the wireless spectrum; and

WHEREAS, the FCC is currently planning two new, large wireless spectrum auctions AWS-3 and the DTV incentive auction which, combined, are expected to generate more than $28 billion in revenue over the next 10 years.

THEREFORE BE IT RESOLVED, that the National Black Caucus of State Legislators (NBCSL) supports and applauds the Federal Communications Commission’s (FCC) efforts to reinvigorate the FCC’s Designated Entities program;

BE IT FURTHER RESOLVED, that NBCSL supports prompt FCC action to foster meaningful participation of Designated Entities, especially those that are minority-owned, in time for the remaining auctions AWS-3 and the DTV incentive auction;

BE IT FURTHER RESOLVED, that NBCSL supports the elimination of the Attributable Relationship Material (AMR) Rule, the last of the 2006 DE rules that hampers effective participation of new entrants and small incumbents;

BE IT FURTHER RESOLVED, that NBCSL supports increasing small business bidding credits and incorporating diversity and inclusion into the FCC’s analysis of mergers and acquisitions, and secondary market spectrum transactions to facilitate new DE entry in an industry with well-financed, entrenched incumbents; and

BE IT FINALLY RESOLVED, that copies of this resolution be transmitted to the President of the United States, the Vice President of the United States, members of the United States House of Representatives and United States Senate, the Secretary of the U.S. Department of Commerce, the Director of the Minority Business Development Agency, the Chairman and Commissioners of the Federal Communications Commission, and other federal and state government officials as appropriate.

• SPONSOR: Senator Catherine E. Pugh (MD)
• Committee of Jurisdiction: Telecommunications, Science, and Technology Policy Committee
• Certified by Committee Chair: Delegate Michael Vaughn (MD)
• Ratified in Plenary Session: Ratification Date is December 12, 2014
• Ratification is certified by: Representative Joe Armstrong (TN), President