OFFICE OF THE CHAIRMAN FEDERAL COMMUNICATIONS COMMISSION WASHINGTON November 15, 2017 The Honorable Elijah E. Cummings Ranking Member Committee on Oversight and Government Reform U.S. House of Representatives 2471 Rayburn House Office Building Washington, D.C. 20515 Dear Congressman Cummings: On September 14, 2017, the Government Accountability Office (GAO) publicly released a report entitled FCC Updated Its Enforcement Program, but Improved Transparency is Needed - GAO-i 7-72 7 (GAO Enforcement Report or Report). The report examines (1) actions taken by the FCC in the last five years to update its enforcement program; (2) performance goals and measures for FCC's enforcement program; and (3) selected stakeholders' views on the FCC's enforcement program and the FCC's communication with these stakeholders. The Report includes two recommendations for Executive Action. First, the Report recommends that the Chairman of the FCC should establish quantifiable goals and related measures - performance indicators, targets, and timeframes - for its enforcement program and annually publish the results to demonstrate the performance of the program and improve transparency regarding FCC enforcement. Second, the Report recommends that the Chairman of the FCC should establish, and make publicly available, a communications strategy outlining the agency's enforcement program for external stakeholders to improve engagement with the telecommunications community on the purposes, objectives, and processes the Enforcement Bureau employs to achieve its mission. In the August 25, 2017 response to the draft report, the Chief of the Enforcement Bureau agreed with the Report's recommendations for Commission action, and I intend to ensure that Commission staff are able under my Chairmanship to follow through on implementing these actions. First, we will develop and publish performance goals and measures for FCC enforcement practices in accordance with the Government Performance and Results Act (GPRA) Modernization Act of 2010. As Chairman, I've implemented reforms to the Commission's processes to increase transparency and accountability in the FCC's operations. Prior to the release of the Report, for example, I directed the Office of the Managing Director to work with the Commission's Bureaus and Offices to develop performance goals consisting of a performance indicator, a measurable target, and a timeframe for meeting that target, and to include these performance goals in the Annual Performance Plan that the Commission submits with its annual budget. The Report's analysis and recommendations confirm the need for quantifiable, measurable, and public performance targets. I look forward to developing future performance goals for FY2020 and beyond consistent with the GAO Enforcement Report. Page 2-The Honorable Elijah E. Cummings Second, we will develop and make publicly available a communications strategy for external stakeholders outlining the FCC' s enforcement program. Transparency in the FCC's operations has been one of my primary concerns during my tenure at the FCC. In one of my first acts as Chairman, for example, I implemented a pilot program to make public the full text of draft items in advance of the Commission's public meetings, and I view the Report's recommendations to clarify our enforcement strategy as another opportunity to shed light on the FCC's operations. I appreciate GAO's thorough analysis and recommendations, and I reiterate the Commission's commitment to implementing measures to address GAO's findings. Thank you for the opportunity to respond to the GAO Enforcement Report, and I look forward to discussing this issue further if you have any questions. cc: The Honorable Greg Walden The Honorable Fred Upton The Honorable Bob Latta Sincerely, Ajit V. Pai O F F I C E O F T H E C H A I R M A N F E D E R A L C O M M U N I C A T I O N S C O M M I S S I O N W A S H I N G T O N N o v e m b e r 1 5 , 2 0 1 7 T h e H o n o r a b l e T r e y G o w d y C h a i r m a n C o m m i t t e e o n O v e r s i g h t a n d G o v e r n m e n t R e f o r m U . S . H o u s e o f R e p r e s e n t a t i v e s 2 1 5 7 R a y b u r n H o u s e O f f i c e B u i l d i n g W a s h i n g t o n , D . C . 2 0 5 1 5 D e a r C h a i r m a n G o w d y : O n S e p t e m b e r 1 4 , 2 0 1 7 , t h e G o v e r n m e n t A c c o u n t a b i l i t y O f f i c e ( G A O ) p u b l i c l y r e l e a s e d a r e p o r t e n t i t l e d F C C U p d a t e d I t s E n f o r c e m e n t P r o g r a m , b u t I m p r o v e d T r a n s p a r e n c y i s N e e d e d - G A O - i 7 - 7 2 7 ( G A O E n f o r c e m e n t R e p o r t o r R e p o r t ) . T h e r e p o r t e x a m i n e s ( 1 ) a c t i o n s t a k e n b y t h e F C C i n t h e l a s t f i v e y e a r s t o u p d a t e i t s e n f o r c e m e n t p r o g r a m ; ( 2 ) p e r f o r m a n c e g o a l s a n d m e a s u r e s f o r F C C ' s e n f o r c e m e n t p r o g r a m ; a n d ( 3 ) s e l e c t e d s t a k e h o l d e r s ' v i e w s o n t h e F C C ' s e n f o r c e m e n t p r o g r a m a n d t h e F C C ' s c o m m u n i c a t i o n w i t h t h e s e s t a k e h o l d e r s . T h e R e p o r t i n c l u d e s t w o r e c o m m e n d a t i o n s f o r E x e c u t i v e A c t i o n . F i r s t , t h e R e p o r t r e c o m m e n d s t h a t t h e C h a i r m a n o f t h e F C C s h o u l d e s t a b l i s h q u a n t i f i a b l e g o a l s a n d r e l a t e d m e a s u r e s - p e r f o r m a n c e i n d i c a t o r s , t a r g e t s , a n d t i m e f r a m e s - f o r i t s e n f o r c e m e n t p r o g r a m a n d a n n u a l l y p u b l i s h t h e r e s u l t s t o d e m o n s t r a t e t h e p e r f o r m a n c e o f t h e p r o g r a m a n d i m p r o v e t r a n s p a r e n c y r e g a r d i n g F C C e n f o r c e m e n t . S e c o n d , t h e R e p o r t r e c o m m e n d s t h a t t h e C h a i r m a n o f t h e F C C s h o u l d e s t a b l i s h , a n d m a k e p u b l i c l y a v a i l a b l e , a c o m m u n i c a t i o n s s t r a t e g y o u t l i n i n g t h e a g e n c y ' s e n f o r c e m e n t p r o g r a m f o r e x t e r n a l s t a k e h o l d e r s t o i m p r o v e e n g a g e m e n t w i t h t h e t e l e c o m m u n i c a t i o n s c o m m u n i t y o n t h e p u r p o s e s , o b j e c t i v e s , a n d p r o c e s s e s t h e E n f o r c e m e n t B u r e a u e m p l o y s t o a c h i e v e i t s m i s s i o n . I n t h e A u g u s t 2 5 , 2 0 1 7 r e s p o n s e t o t h e d r a f t r e p o r t , t h e C h i e f o f t h e E n f o r c e m e n t B u r e a u a g r e e d w i t h t h e R e p o r t ' s r e c o m m e n d a t i o n s f o r C o m m i s s i o n a c t i o n , a n d I i n t e n d t o e n s u r e t h a t C o m m i s s i o n s t a f f a r e a b l e u n d e r m y C h a i r m a n s h i p t o f o l l o w t h r o u g h o n i m p l e m e n t i n g t h e s e a c t i o n s . F i r s t , w e w i l l d e v e l o p a n d p u b l i s h p e r f o r m a n c e g o a l s a n d m e a s u r e s f o r F C C e n f o r c e m e n t p r a c t i c e s i n a c c o r d a n c e w i t h t h e G o v e r n m e n t P e r f o r m a n c e a n d R e s u l t s A c t ( G P R A ) M o d e r n i z a t i o n A c t o f 2 0 1 0 . A s C h a i r m a n , I ' v e i m p l e m e n t e d r e f o r m s t o t h e C o m m i s s i o n ' s p r o c e s s e s t o i n c r e a s e t r a n s p a r e n c y a n d a c c o u n t a b i l i t y i n t h e F C C ' s o p e r a t i o n s . P r i o r t o t h e r e l e a s e o f t h e R e p o r t , f o r e x a m p l e , I d i r e c t e d t h e O f f i c e o f t h e M a n a g i n g D i r e c t o r t o w o r k w i t h t h e C o m m i s s i o n ' s B u r e a u s a n d O f f i c e s t o d e v e l o p p e r f o r m a n c e g o a l s c o n s i s t i n g o f a p e r f o r m a n c e i n d i c a t o r , a m e a s u r a b l e t a r g e t , a n d a t i m e f r a m e f o r m e e t i n g t h a t t a r g e t , a n d t o i n c l u d e t h e s e p e r f o r m a n c e g o a l s i n t h e A n n u a l P e r f o r m a n c e P l a n t h a t t h e C o m m i s s i o n s u b m i t s w i t h i t s a n n u a l b u d g e t . T h e R e p o r t ' s a n a l y s i s a n d r e c o m m e n d a t i o n s c o n f i r m t h e n e e d f o r q u a n t i f i a b l e , m e a s u r a b l e , a n d p u b l i c p e r f o r m a n c e t a r g e t s . I l o o k f o r w a r d t o d e v e l o p i n g f u t u r e p e r f o r m a n c e g o a l s f o r F Y 2 0 2 0 a n d b e y o n d c o n s i s t e n t w i t h t h e G A O E n f o r c e m e n t R e p o r t . Page 2-The Honorable Trey Gowdy Second, we will develop and make publicly available a communications strategy for external stakeholders outlining the FCC's enforcement program. Transparency in the FCC's operations has been one of my primary concerns during my tenure at the FCC. In one of my first acts as Chairman, for example, I implemented a pilot program to make public the full text of draft items in advance of the Commission's public meetings, and I view the Report's recommendations to clarify our enforcement strategy as another opportunity to shed light on the FCC's operations. I appreciate GAO's thorough analysis and recommendations, and I reiterate the Commission's commitment to implementing measures to address GAO's findings. Thank you for the opportunity to respond to the GAO Enforcement Report, and I look forward to discussing this issue further if you have any questions. JCv Sincerely, Ajit V. Pai cc: The Honorable Greg Walden The Honorable Fred Upton The Honorable Bob Latta OFFICE OF THE CHAIRMAN FEDERAL COMMUNICATIONS COMMISSION WASHINGTON November 15, 2017 The Honorable Claire McCaskill Ranking Member Committee on Homeland Security and Governmental Affairs United States Senate 340 Dirksen Senate Office Building Washington, D.C. 20510 Dear Congresswoman McCaskill: On September 14, 2017, the Government Accountability Office (GAO) publicly released a report entitled FCC Updated Its Enforcement Program, but Improved Transparency is Needed - GAO-i 7-727 (GAO Enforcement Report or Report). The report examines (1) actions taken by the FCC in the last five years to update its enforcement program; (2) performance goals and measures for FCC's enforcement program; and (3) selected stakeholders' views on the FCC's enforcement program and the 's communication with these stakeholders. The Report includes two recommendations for Executive Action. First, the Report recommends that the Chairman of the FCC should establish quantifiable goals and related measures - performance indicators, targets, and timeframes - for its enforcement program and annually publish the results to demonstrate the performance of the program and improve transparency regarding FCC enforcement. Second, the Report recommends that the Chairman of the FCC should establish, and make publicly available, a communications strategy outlining the agency's enforcement program for external stakeholders to improve engagement with the telecommunications community on the purposes, objectives, and processes the Enforcement Bureau employs to achieve its mission. In the August 25, 2017 response to the draft report, the Chief of the Enforcement Bureau agreed with the Report's recommendations for Commission action, and I intend to ensure that Commission staff are able under my Chairmanship to follow through on implementing these actions. First, we will develop and publish performance goals and measures for FCC enforcement practices in accordance with the Government Performance and Results Act (GPRA) Modernization Act of 2010. As Chairman, I've implemented reforms to the Commission's processes to increase transparency and accountability in the FCC's operations. Prior to the release of the Report, for example, I directed the Office of the Managing Director to work with the Commission's Bureaus and Offices to develop performance goals consisting of a performance indicator, a measurable target, and a timeframe for meeting that target, and to include these performance goals in the Annual Performance Plan that the Commission submits with its annual budget. The Report's analysis and recommendations confirm the need for quantifiable, measurable, and public performance targets. I look forward to developing future performance goals for FY2020 and beyond consistent with the GAO Enforcement Report. Page 2-The Honorable Claire McCaskill Second, we will develop and make publicly available a communications strategy for external stakeholders outlining the FCC's enforcement program. Transparency in the FCC's operations has been one of my primary concerns during my tenure at the FCC. In one of my first acts as Chairman, for example, I implemented a pilot program to make public the full text of draft items in advance of the Commission's public meetings, and I view the Report's recommendations to clarify our enforcement strategy as another opportunity to shed light on the FCC's operations, I appreciate GAO's thorough analysis and recommendations, and I reiterate the Commission's commitment to implementing measures to address GAO's findings. Thank you for the opportunity to respond to the GAO Enforcement Report, and I look forward to discussing this issue further if you have any questions. Sincerely, .c. • 1 (v Ajit V. Pai cc: The Honorable Greg Walden The Honorable Fred Upton The Honorable Bob Latta O F F I C E O F T H E C H A I R M A N F E D E R A L C O M M U N I C A T I O N S C O M M I S S I O N W A S H I N G T O N N o v e m b e r 1 5 , 2 0 1 7 T h e H o n o r a b l e F r a n k P a l l o n e R a n k i n g M e m b e r C o m m i t t e e o n E n e r g y a n d C o m m e r c e U . S . H o u s e o f R e p r e s e n t a t i v e s 2 3 2 2 A R a y b u r n H o u s e O f f i c e B u i l d i n g W a s h i n g t o n , D . C . 2 0 5 1 5 D e a r C o n g r e s s m a n P a l l o n e : O n S e p t e m b e r 1 4 , 2 0 1 7 , t h e G o v e r n m e n t A c c o u n t a b i l i t y O f f i c e ( G A O ) p u b l i c l y r e l e a s e d a r e p o r t e n t i t l e d F C C U p d a t e d I t s E n f o r c e m e n t P r o g r a m , b u t I m p r o v e d T r a n s p a r e n c y i s N e e d e d - G A O - i 7 7 2 7 ( G A O E n f o r c e m e n t R e p o r t o r R e p o r t ) . T h e r e p o r t e x a m i n e s ( 1 ) a c t i o n s t a k e n b y t h e F C C i n t h e l a s t f i v e y e a r s t o u p d a t e i t s e n f o r c e m e n t p r o g r a m ; ( 2 ) p e r f o r m a n c e g o a l s a n d m e a s u r e s f o r F C C ' s e n f o r c e m e n t p r o g r a m ; a n d ( 3 ) s e l e c t e d s t a k e h o l d e r s ' v i e w s o n t h e F C C ' s e n f o r c e m e n t p r o g r a m a n d t h e F C C ' s c o m m u n i c a t i o n w i t h t h e s e s t a k e h o l d e r s . T h e R e p o r t i n c l u d e s t w o r e c o m m e n d a t i o n s f o r E x e c u t i v e A c t i o n . F i r s t , t h e R e p o r t r e c o m m e n d s t h a t t h e C h a i r m a n o f t h e F C C s h o u l d e s t a b l i s h q u a n t i f i a b l e g o a l s a n d r e l a t e d m e a s u r e s - p e r f o r m a n c e i n d i c a t o r s , t a r g e t s , a n d t i m e f r a m e s - f o r i t s e n f o r c e m e n t p r o g r a m a n d a n n u a l l y p u b l i s h t h e r e s u l t s t o d e m o n s t r a t e t h e p e r f o r m a n c e o f t h e p r o g r a m a n d i m p r o v e t r a n s p a r e n c y r e g a r d i n g F C C e n f o r c e m e n t . S e c o n d , t h e R e p o r t r e c o m m e n d s t h a t t h e C h a i r m a n o f t h e F C C s h o u l d e s t a b l i s h , a n d m a k e p u b l i c l y a v a i l a b l e , a c o m m u n i c a t i o n s s t r a t e g y o u t l i n i n g t h e a g e n c y ' s e n f o r c e m e n t p r o g r a m f o r e x t e r n a l s t a k e h o l d e r s t o i m p r o v e e n g a g e m e n t w i t h t h e t e l e c o m m u n i c a t i o n s c o m m u n i t y o n t h e p u r p o s e s , o b j e c t i v e s , a n d p r o c e s s e s t h e E n f o r c e m e n t B u r e a u e m p l o y s t o a c h i e v e i t s m i s s i o n . I n t h e A u g u s t 2 5 , 2 0 1 7 r e s p o n s e t o t h e d r a f t r e p o r t , t h e C h i e f o f t h e E n f o r c e m e n t B u r e a u a g r e e d w i t h t h e R e p o r t ' s r e c o m m e n d a t i o n s f o r C o m m i s s i o n a c t i o n , a n d I i n t e n d t o e n s u r e t h a t C o m m i s s i o n s t a f f a r e a b l e u n d e r m y C h a i r m a n s h i p t o f o l l o w t h r o u g h o n i m p l e m e n t i n g t h e s e a c t i o n s . F i r s t , w e w i l l d e v e l o p a n d p u b l i s h p e r f o r m a n c e g o a l s a n d m e a s u r e s f o r F C C e n f o r c e m e n t p r a c t i c e s i n a c c o r d a n c e w i t h t h e G o v e r n m e n t P e r f o r m a n c e a n d R e s u l t s A c t ( G P R A ) M o d e r n i z a t i o n A c t o f 2 0 1 0 . A s C h a i r m a n , I ' v e i m p l e m e n t e d r e f o r m s t o t h e C o m m i s s i o n ' s p r o c e s s e s t o i n c r e a s e t r a n s p a r e n c y a n d a c c o u n t a b i l i t y i n t h e F C C ' s o p e r a t i o n s . P r i o r t o t h e r e l e a s e o f t h e R e p o r t , f o r e x a m p l e , I d i r e c t e d t h e O f f i c e o f t h e M a n a g i n g D i r e c t o r t o w o r k w i t h t h e C o m m i s s i o n ' s B u r e a u s a n d O f f i c e s t o d e v e l o p p e r f o r m a n c e g o a l s c o n s i s t i n g o f a p e r f o r m a n c e i n d i c a t o r , a m e a s u r a b l e t a r g e t , a n d a t i m e f r a m e f o r m e e t i n g t h a t t a r g e t , a n d t o i n c l u d e t h e s e p e r f o r m a n c e g o a l s i n t h e A n n u a l P e r f o r m a n c e P l a n t h a t t h e C o m m i s s i o n s u b m i t s w i t h i t s a n n u a l b u d g e t . T h e R e p o r t ' s a n a l y s i s a n d r e c o m m e n d a t i o n s c o n f i r m t h e n e e d f o r q u a n t i f i a b l e , m e a s u r a b l e , a n d p u b l i c p e r f o r m a n c e t a r g e t s . I l o o k f o r w a r d t o d e v e l o p i n g f u t u r e p e r f o r m a n c e g o a l s f o r F Y 2 0 2 0 a n d b e y o n d c o n s i s t e n t w i t h t h e G A O E n f o r c e m e n t R e p o r t . Page 2-The Honorable Frank Pallone Second, we will develop and make publicly available a communications strategy for external stakeholders outlining the FCC's enforcement program. Transparency in the FCC's operations has been one of my primary concerns during my tenure at the FCC. In one of my first acts as Chairman, for example, I implemented a pilot program to make public the full text of draft items in advance of the Commission's public meetings, and I view the Report's recommendations to clarify our enforcement strategy as another opportunity to shed light on the FCC's operations. I appreciate GAO's thorough analysis and recommendations, and I reiterate the Commission's commitment to implementing measures to address GAO's findings. Thank you for the opportunity to respond to the GAO Enforcement Report, and I look forward to discussing this issue further if you have any questions. Sincerely, Ajit V. Pai C cc: The Honorable Greg Walden The Honorable Fred Upton The Honorable Bob Latta O F F I C E O F T H E C H A I R M A N F E D E R A L C O M M U N I C A T I O N S C O M M I S S I O N W A S H I N G T O N N o v e m b e r 1 5 , 2 0 1 7 T h e H o n o r a b l e G r e g W a l d e n C h a i r m a n C o m m i t t e e o n E n e r g y a n d C o m m e r c e U . S . H o u s e o f R e p r e s e n t a t i v e s 2 1 2 5 R a y b u r n H o u s e O f f i c e B u i l d i n g W a s h i n g t o n , D . C . 2 0 5 1 5 D e a r C h a i r m a n W a l d e n : O n S e p t e m b e r 1 4 , 2 0 1 7 , t h e G o v e r n m e n t A c c o u n t a b i l i t y O f f i c e ( G A O ) p u b l i c l y r e l e a s e d a r e p o r t e n t i t l e d F C C U p d a t e d I t s E n f o r c e m e n t P r o g r a m , b u t I m p r o v e d T r a n s p a r e n c y i s N e e d e d - G A O - i 7 - 7 2 7 ( G A O E n f o r c e m e n t R e p o r t o r R e p o r t ) . T h e r e p o r t e x a m i n e s ( 1 ) a c t i o n s t a k e n b y t h e F C C i n t h e l a s t f i v e y e a r s t o u p d a t e i t s e n f o r c e m e n t p r o g r a m ; ( 2 ) p e r f o r m a n c e g o a l s a n d m e a s u r e s f o r F C C ' s e n f o r c e m e n t p r o g r a m ; a n d ( 3 ) s e l e c t e d s t a k e h o l d e r s ' v i e w s o n t h e F C C ' s e n f o r c e m e n t p r o g r a m a n d t h e F C C ' s c o m m u n i c a t i o n w i t h t h e s e s t a k e h o l d e r s . T h e R e p o r t i n c l u d e s t w o r e c o m m e n d a t i o n s f o r E x e c u t i v e A c t i o n . F i r s t , t h e R e p o r t r e c o m m e n d s t h a t t h e C h a i r m a n o f t h e F C C s h o u l d e s t a b l i s h q u a n t i f i a b l e g o a l s a n d r e l a t e d m e a s u r e s - p e r f o r m a n c e i n d i c a t o r s , t a r g e t s , a n d t i m e f r a m e s - f o r i t s e n f o r c e m e n t p r o g r a m a n d a n n u a l l y p u b l i s h t h e r e s u l t s t o d e m o n s t r a t e t h e p e r f o r m a n c e o f t h e p r o g r a m a n d i m p r o v e t r a n s p a r e n c y r e g a r d i n g F C C e n f o r c e m e n t . S e c o n d , t h e R e p o r t r e c o m m e n d s t h a t t h e C h a i r m a n o f t h e F C C s h o u l d e s t a b l i s h , a n d m a k e p u b l i c l y a v a i l a b l e , a c o m m u n i c a t i o n s s t r a t e g y o u t l i n i n g t h e a g e n c y ' s e n f o r c e m e n t p r o g r a m f o r e x t e r n a l s t a k e h o l d e r s t o i m p r o v e e n g a g e m e n t w i t h t h e t e l e c o m m u n i c a t i o n s c o m m u n i t y o n t h e p u r p o s e s , o b j e c t i v e s , a n d p r o c e s s e s t h e E n f o r c e m e n t B u r e a u e m p l o y s t o a c h i e v e i t s m i s s i o n . I n t h e A u g u s t 2 5 , 2 0 1 7 r e s p o n s e t o t h e d r a f t r e p o r t , t h eC h i e f o f t h e E n f o r c e m e n t B u r e a u a g r e e d w i t h t h e R e p o r t ' s r e c o m m e n d a t i o n s f o r C o m m i s s i o n a c t i o n , a n d I i n t e n d t o e n s u r e t h a t C o m m i s s i o n s t a f f a r e a b l e u n d e r m y C h a i r m a n s h i p t o f o l l o w t h r o u g h o n i m p l e m e n t i n g t h e s e a c t i o n s . F i r s t , w e w i l l d e v e l o p a n d p u b l i s h p e r f o r m a n c e g o a l s a n d m e a s u r e s f o r F C C e n f o r c e m e n tp r a c t i c e s i n a c c o r d a n c e w i t h t h e G o v e r n m e n t P e r f o r m a n c e a n d R e s u l t s A c t ( G P R A ) M o d e r n i z a t i o n A c t o f 2 0 1 0 . A s C h a i r m a n , I ' v e i m p l e m e n t e d r e f o r m s t o t h e C o m m i s s i o n ' s p r o c e s s e s t o i n c r e a s e t r a n s p a r e n c y a n d a c c o u n t a b i l i t y i n t h e F C C ' s o p e r a t i o n s . P r i o r t o t h e r e l e a s e o f t h e R e p o r t , f o r e x a m p l e , I d i r e c t e d t h e O f f i c e o f t h e M a n a g i n g D i r e c t o r t o w o r k w i t h t h e C o m m i s s i o n ' s B u r e a u s a n d O f f i c e s t o d e v e l o p p e r f o r m a n c e g o a l s c o n s i s t i n g o f a p e r f o r m a n c e i n d i c a t o r , a m e a s u r a b l e t a r g e t , a n d a t i m e f r a m e f o r m e e t i n g t h a t t a r g e t , a n d t o i n c l u d e t h e s e p e r f o r m a n c e g o a l s i n t h e A n n u a l P e r f o r m a n c e P l a n t h a t t h e C o m m i s s i o n s u b m i t s w i t h i t s a n n u a l b u d g e t . T h e R e p o r t ' s a n a l y s i s a n d r e c o m m e n d a t i o n s c o n f i r m t h e n e e d f o r q u a n t i f i a b l e , m e a s u r a b l e , a n d p u b l i c p e r f o r m a n c e t a r g e t s . I l o o k f o r w a r d t o d e v e l o p i n g f u t u r ep e r f o r m a n c e g o a l s f o r F Y 2 0 2 0 a n d b e y o n d c o n s i s t e n t w i t h t h e G A O E n f o r c e m e n t R e p o r t . Page 2-The Honorable Greg Walden Second, we will develop and make publicly available a communications strategy for external stakeholders outlining the FCC's enforcement program. Transparency in the FCC's operations has been one of my primary concerns during my tenure at the FCC. In one of my first acts as Chairman, for example, I implemented a pilot program to make public the full text of draft items in advance of the Commission's public meetings, and I view the Report's recommendations to clarify our enforcement strategy as another opportunity to shed light on the FCC's operations. I appreciate GAO's thorough analysis and recommendations, and I reiterate the Commission's commitment to implementing measures to address GAO's findings, Thank you for the opportunity to respond to the GAO Enforcement Report, and I look forward to discussing this issue further if you have any questions. cc: The Honorable Greg Walden The Honorable Fred Upton The Honorable Bob Latta (1 Sincerely, Ajit V. Pai O F F I C E O F T H E C H A I R M A N F E D E R A L C O M M U N I C A T I O N S C O M M I S S I O N W A S H I N G T O N N o v e m b e r 1 5 , 2 0 1 7 T h e H o n o r a b l e B i l l N e l s o n R a n k i n g M e m b e r C o m m i t t e e o n C o m m e r c e , S c i e n c e , a n d T r a n s p o r t a t i o n U n i t e d S t a t e s S e n a t e 4 2 5 H a r t S e n a t e O f f i c e B u i l d i n g W a s h i n g t o n , D . C . 2 0 5 1 0 D e a r S e n a t o r N e l s o n : O n S e p t e m b e r 1 4 , 2 0 1 7 , t h e G o v e r n m e n t A c c o u n t a b i l i t y O f f i c e ( G A O ) p u b l i c l y r e l e a s e d a r e p o r t e n t i t l e d F C C U p d a t e d I t s E n f o r c e m e n t P r o g r a m , b u t I m p r o v e d T r a n s p a r e n c y i s N e e d e d - G A O - i 7 - 7 2 7 ( G A O E n f o r c e m e n t R e p o r t o r R e p o r t ) . T h e r e p o r t e x a m i n e s ( 1 ) a c t i o n s t a k e n b y t h e F C C i n t h e l a s t f i v e y e a r s t o u p d a t e i t s e n f o r c e m e n t p r o g r a m ; ( 2 ) p e r f o r m a n c e g o a l s a n d m e a s u r e s f o r F C C ' s e n f o r c e m e n t p r o g r a m ; a n d ( 3 ) s e l e c t e d s t a k e h o l d e r s ' v i e w s o n t h e F C C ' s e n f o r c e m e n t p r o g r a m a n d t h e F C C ' s c o m m u n i c a t i o n w i t h t h e s e s t a k e h o l d e r s . T h e R e p o r t i n c l u d e s t w o r e c o m m e n d a t i o n s f o r E x e c u t i v e A c t i o n . F i r s t , t h e R e p o r t r e c o m m e n d s t h a t t h e C h a i r m a n o f t h e F C C s h o u l d e s t a b l i s h q u a n t i f i a b l e g o a l s a n d r e l a t e d m e a s u r e s - p e r f o r m a n c e i n d i c a t o r s , t a r g e t s , a n d t i m e f r a m e s - f o r i t s e n f o r c e m e n t p r o g r a m a n d a n n u a l l y p u b l i s h t h e r e s u l t s t o d e m o n s t r a t e t h e p e r f o r m a n c e o f t h e p r o g r a m a n d i m p r o v e t r a n s p a r e n c y r e g a r d i n g F C C e n f o r c e m e n t . S e c o n d , t h e R e p o r t r e c o m m e n d s t h a t t h e C h a i r m a n o f t h e F C C s h o u l d e s t a b l i s h , a n d m a k e p u b l i c l y a v a i l a b l e , a c o m m u n i c a t i o n s s t r a t e g y o u t l i n i n g t h e a g e n c y ' s e n f o r c e m e n t p r o g r a m f o r e x t e r n a l s t a k e h o l d e r s t o i m p r o v e e n g a g e m e n t w i t h t h e t e l e c o m m u n i c a t i o n s c o m m u n i t y o n t h e p u r p o s e s , o b j e c t i v e s , a n d p r o c e s s e s t h e E n f o r c e m e n t B u r e a u e m p l o y s t o a c h i e v e i t s m i s s i o n . I n t h e A u g u s t 2 5 , 2 0 1 7 r e s p o n s e t o t h e d r a f t r e p o r t , t h eC h i e f o f t h e E n f o r c e m e n t B u r e a u a g r e e d w i t h t h e R e p o r t ' s r e c o m m e n d a t i o n s f o r C o m m i s s i o n a c t i o n , a n d I i n t e n d t o e n s u r e t h a t C o m m i s s i o n s t a f f a r e a b l e u n d e r m y C h a i r m a n s h i p t o f o l l o w t h r o u g h o n i m p l e m e n t i n g t h e s e a c t i o n s . F i r s t , w e w i l l d e v e l o p a n d p u b l i s h p e r f o r m a n c e g o a l s a n d m e a s u r e s f o r F C C e n f o r c e m e n tp r a c t i c e s i n a c c o r d a n c e w i t h t h e G o v e r n m e n t P e r f o r m a n c e a n d R e s u l t s A c t ( G P R A ) M o d e r n i z a t i o n A c t o f 2 0 1 0 . A s C h a i r m a n , I ' v e i m p l e m e n t e d r e f o r m s t o t h e C o m m i s s i o n ' s p r o c e s s e s t o i n c r e a s e t r a n s p a r e n c y a n d a c c o u n t a b i l i t y i n t h e F C C ' s o p e r a t i o n s . P r i o r t o t h e r e l e a s e o f t h e R e p o r t , f o r e x a m p l e , I d i r e c t e d t h e O f f i c e o f t h e M a n a g i n g D i r e c t o r t o w o r k w i t h t h e C o m m i s s i o n ' s B u r e a u s a n d O f f i c e s t o d e v e l o p p e r f o r m a n c e g o a l s c o n s i s t i n g o f a p e r f o r m a n c e i n d i c a t o r , a m e a s u r a b l e t a r g e t , a n d a t i m e f r a m e f o r m e e t i n g t h a t t a r g e t , a n d t oi n c l u d e t h e s e p e r f o r m a n c e g o a l s i n t h e A n n u a l P e r f o r m a n c e P l a n t h a t t h e C o m m i s s i o n s u b m i t s w i t h i t s a n n u a l b u d g e t . T h e R e p o r t ' s a n a l y s i s a n d r e c o m m e n d a t i o n s c o n f i r m t h e n e e d f o r q u a n t i f i a b l e , m e a s u r a b l e , a n d p u b l i c p e r f o r m a n c e t a r g e t s . I l o o k f o r w a r d t o d e v e l o p i n g f u t u r ep e r f o r m a n c e g o a l s f o r F Y 2 0 2 0 a n d b e y o n d c o n s i s t e n t w i t h t h e G A O E n f o r c e m e n t R e p o r t . Page 2-The Honorable Bill Nelson Second, we will develop and make publicly available a communications strategy for external stakeholders outlining the FCC's enforcement program. Transparency in the FCC's operations has been one of my primary concerns during my tenure at the FCC. In one of my first acts as Chairman, for example, I implemented a pilot program to make public the full text of draft items in advance of the Commission's public meetings, and I view the Report's recommendations to clarify our enforcement strategy as another opportunity to shed light on the FCC's operations. I appreciate GAO's thorough analysis and recommendations, and I reiterate the Commission's commitment to implementing measures to address GAO's findings. Thank you for the opportunity to respond to the GAO Enforcement Report, and I look forward to discussing this issue further if you have any questions. Sincerely, I L' ifr AjitV.Pai cc: The Honorable Greg Walden The Honorable Fred Upton The Honorable Bob Latta I 1.' O F F I C E O F T H E C H A I R M A N F E D E R A L C O M M U N I C A T I O N S C O M M I S S I O N W A S H I N G T O N N o v e m b e r 1 5 , 2 0 1 7 T h e H o n o r a b l e J o h n T h u n e C h a i r m a n C o m m i t t e e o n C o m m e r c e , S c i e n c e , a n d T r a n s p o r t a t i o n U n i t e d S t a t e s S e n a t e 5 1 2 D i r k s e n S e n a t e O f f i c e B u i l d i n g W a s h i n g t o n , D . C . 2 0 5 1 0 D e a r C h a i r m a n T h u n e : O n S e p t e m b e r 1 4 , 2 0 1 7 , t h e G o v e r n m e n t A c c o u n t a b i l i t y O f f i c e ( G A O ) p u b l i c l y r e l e a s e d a r e p o r t e n t i t l e d F C C U p d a t e d I t s E n f o r c e m e n t P r o g r a m , b u t I m p r o v e d T r a n s p a r e n c y i s N e e d e d - G A O - i 7 - 7 2 7 ( G A O E n f o r c e m e n t R e p o r t o r R e p o r t ) . T h e r e p o r t e x a m i n e s ( 1 ) a c t i o n s t a k e n b y t h e F C C i n t h e l a s t f i v e y e a r s t o u p d a t e i t s e n f o r c e m e n t p r o g r a m ; ( 2 ) p e r f o r m a n c e g o a l s a n d m e a s u r e s f o r F C C ' s e n f o r c e m e n t p r o g r a m ; a n d ( 3 ) s e l e c t e d s t a k e h o l d e r s ' v i e w s o n t h e F C C ' s e n f o r c e m e n t p r o g r a m a n d t h e F C C ' s c o m m u n i c a t i o n w i t h t h e s e s t a k e h o l d e r s . T h e R e p o r t i n c l u d e s t w o r e c o m m e n d a t i o n s f o r E x e c u t i v e A c t i o n . F i r s t , t h e R e p o r t r e c o m m e n d s t h a t t h e C h a i r m a n o f t h e F C C s h o u l d e s t a b l i s h q u a n t i f i a b l e g o a l s a n d r e l a t e d m e a s u r e s - p e r f o r m a n c e i n d i c a t o r s , t a r g e t s , a n d t i m e f r a m e s - f o r i t s e n f o r c e m e n t p r o g r a m a n d a n n u a l l y p u b l i s h t h e r e s u l t s t o d e m o n s t r a t e t h e p e r f o r m a n c e o f t h e p r o g r a m a n d i m p r o v e t r a n s p a r e n c y r e g a r d i n g F C C e n f o r c e m e n t . S e c o n d , t h e R e p o r t r e c o m m e n d s t h a t t h e C h a i r m a n o f t h e F C C s h o u l d e s t a b l i s h , a n d m a k e p u b l i c l y a v a i l a b l e , a c o m m u n i c a t i o n s s t r a t e g y o u t l i n i n g t h e a g e n c y ' s e n f o r c e m e n t p r o g r a m f o r e x t e r n a l s t a k e h o l d e r s t o i m p r o v e e n g a g e m e n t w i t h t h e t e l e c o m m u n i c a t i o n s c o m m u n i t y o n t h e p u r p o s e s , o b j e c t i v e s , a n d p r o c e s s e s t h e E n f o r c e m e n t B u r e a u e m p l o y s t o a c h i e v e i t s m i s s i o n . I n t h e A u g u s t 2 5 , 2 0 1 7 r e s p o n s e t o t h e d r a f t r e p o r t , t h e C h i e f o f t h e E n f o r c e m e n t B u r e a u a g r e e d w i t h t h e R e p o r t ' s r e c o m m e n d a t i o n s f o r C o m m i s s i o n a c t i o n , a n d I i n t e n d t o e n s u r e t h a t C o m m i s s i o n s t a f f a r e a b l e u n d e r m y C h a i r m a n s h i p t o f o l l o w t h r o u g h o n i m p l e m e n t i n g t h e s e a c t i o n s . F i r s t , w e w i l l d e v e l o p a n d p u b l i s h p e r f o r m a n c e g o a l s a n d m e a s u r e s f o r F C C e n f o r c e m e n t p r a c t i c e s i n a c c o r d a n c e w i t h t h e G o v e r n m e n t P e r f o r m a n c e a n d R e s u l t s A c t ( G P R A ) M o d e r n i z a t i o n A c t o f 2 0 1 0 . A s C h a i r m a n , I ' v e i m p l e m e n t e d r e f o r m s t o t h e C o m m i s s i o n ' s p r o c e s s e s t o i n c r e a s e t r a n s p a r e n c y a n d a c c o u n t a b i l i t y i n t h e F C C ' s o p e r a t i o n s . P r i o r t o t h e r e l e a s e o f t h e R e p o r t , f o r e x a m p l e , I d i r e c t e d t h e O f f i c e o f t h e M a n a g i n g D i r e c t o r t o w o r k w i t h t h e C o m m i s s i o n ' s B u r e a u s a n d O f f i c e s t o d e v e l o p p e r f o r m a n c e g o a l s c o n s i s t i n g o f a p e r f o r m a n c e i n d i c a t o r , a m e a s u r a b l e t a r g e t , a n d a t i m e f r a m e f o r m e e t i n g t h a t t a r g e t , a n d t o i n c l u d e t h e s e p e r f o r m a n c e g o a l s i n t h e A n n u a l P e r f o r m a n c e P l a n t h a t t h e C o m m i s s i o n s u b m i t s w i t h i t s a n n u a l b u d g e t . T h e R e p o r t ' s a n a l y s i s a n d r e c o m m e n d a t i o n s c o n f i r m t h e n e e d f o r q u a n t i f i a b l e , m e a s u r a b l e , a n d p u b l i c p e r f o r m a n c e t a r g e t s . I l o o k f o r w a r d t o d e v e l o p i n g f u t u r e p e r f o r m a n c e g o a l s f o r F Y 2 0 2 0 a n d b e y o n d c o n s i s t e n t w i t h t h e G A O E n f o r c e m e n t R e p o r t . P a g e 2 - T h e H o n o r a b l e J o h n T h u n e S e c o n d , w e w i l l d e v e l o p a n d m a k e p u b l i c l y a v a i l a b l e a c o m m u n i c a t i o n s s t r a t e g y f o r e x t e r n a l s t a k e h o l d e r s o u t l i n i n g t h e F C C ' s e n f o r c e m e n t p r o g r a m . T r a n s p a r e n c y i n t h e F C C ' s o p e r a t i o n s h a s b e e n o n e o f m y p r i m a r y c o n c e r n s d u r i n g m y t e n u r e a t t h e F C C . I n o n e o f m y f i r s t a c t s a s C h a i r m a n , f o r e x a m p l e , I i m p l e m e n t e d a p i l o t p r o g r a m t o m a k e p u b l i c t h e f u l l t e x t o f d r a f t i t e m s i n a d v a n c e o f t h e C o m m i s s i o n ' s p u b l i c m e e t i n g s , a n d I v i e w t h e R e p o r t ' s r e c o m m e n d a t i o n s t o c l a r i f y o u r e n f o r c e m e n t s t r a t e g y a s a n o t h e r o p p o r t u n i t y t o s h e d l i g h t o n t h e F C C ' s o p e r a t i o n s . I a p p r e c i a t e G A O ' s t h o r o u g h a n a l y s i s a n d r e c o m m e n d a t i o n s , a n d I r e i t e r a t e t h e C o m m i s s i o n ' s c o m m i t m e n t t o i m p l e m e n t i n g m e a s u r e s t o a d d r e s s G A O ' s f i n d i n g s . T h a n k y o u f o r t h e o p p o r t u n i t y t o r e s p o n d t o t h e G A O E n f o r c e m e n t R e p o r t , a n d I l o o k f o r w a r d t o d i s c u s s i n g t h i s i s s u e f u r t h e r i f y o u h a v e a n y q u e s t i o n s . S i n c e r e l y , 1 ] c / ( L ' A j i t V . P a i c c : T h e H o n o r a b l e G r e g W a l d e n T h e H o n o r a b l e F r e d U p t o n T h e H o n o r a b l e B o b L a t t a O F F I C E O F T H E C H A I R M A N F E D E R A L C O M M U N I C A T I O N S C O M M I S S I O N W A S H I N G T O N N o v e m b e r 1 5 , 2 0 1 7 T h e H o n o r a b l e C h r i s C o o n s R a n k i n g M e m b e r S u b c o m m i t t e e o n F i n a n c i a l S e r v i c e s a n d G e n e r a l G o v e r n m e n t C o m m i t t e e o n A p p r o p r i a t i o n s U n i t e d S t a t e s S e n a t e 1 2 5 H a r t S e n a t e O f f i c e B u i l d i n g W a s h i n g t o n , D . C . 2 0 5 1 0 D e a r S e n a t o r C o o n s : O n S e p t e m b e r 1 4 , 2 0 1 7 , t h e G o v e r n m e n t A c c o u n t a b i l i t y O f f i c e ( G A O ) p u b l i c l y r e l e a s e d a r e p o r t e n t i t l e d F C C U p d a t e d I t s E n f o r c e m e n t P r o g r a m , b u t I m p r o v e d T r a n s p a r e n c y i s N e e d e d - G A O - ] 7 - 7 2 7 ( G A O E n f o r c e m e n t R e p o r t o r R e p o r t ) . T h e r e p o r t e x a m i n e s ( 1 ) a c t i o n s t a k e n b y t h e F C C i n t h e l a s t f i v e y e a r s t o u p d a t e i t s e n f o r c e m e n t p r o g r a m ; ( 2 ) p e r f o r m a n c e g o a l s a n d m e a s u r e s f o r F C C ' s e n f o r c e m e n t p r o g r a m ; a n d ( 3 ) s e l e c t e d s t a k e h o l d e r s ' v i e w s o n t h e F C C ' s e n f o r c e m e n t p r o g r a m a n d t h e F C C ' s c o m m u n i c a t i o n w i t h t h e s e s t a k e h o l d e r s . T h e R e p o r t i n c l u d e s t w o r e c o m m e n d a t i o n s f o r E x e c u t i v e A c t i o n . F i r s t , t h e R e p o r t r e c o m m e n d s t h a t t h e C h a i r m a n o f t h e F C C s h o u l d e s t a b l i s h q u a n t i f i a b l e g o a l s a n d r e l a t e d m e a s u r e s - p e r f o r m a n c e i n d i c a t o r s , t a r g e t s , a n d t i m e f r a m e s - f o r i t s e n f o r c e m e n t p r o g r a m a n d a n n u a l l y p u b l i s h t h e r e s u l t s t o d e m o n s t r a t e t h e p e r f o r m a n c e o f t h e p r o g r a m a n d i m p r o v e t r a n s p a r e n c y r e g a r d i n g F C C e n f o r c e m e n t . S e c o n d , t h e R e p o r t r e c o m m e n d s t h a t t h e C h a i r m a n o f t h e F C C s h o u l d e s t a b l i s h , a n d m a k e p u b l i c l y a v a i l a b l e , a c o m m u n i c a t i o n s s t r a t e g y o u t l i n i n g t h e a g e n c y ' s e n f o r c e m e n t p r o g r a m f o r e x t e r n a l s t a k e h o l d e r s t o i m p r o v e e n g a g e m e n t w i t h t h e t e l e c o m m u n i c a t i o n s c o m m u n i t y o n t h e p u r p o s e s , o b j e c t i v e s , a n d p r o c e s s e s t h e E n f o r c e m e n t B u r e a u e m p l o y s t o a c h i e v e i t s m i s s i o n , I n t h e A u g u s t 2 5 , 2 0 1 7 r e s p o n s e t o t h e d r a f t r e p o r t , t h e C h i e f o f t h e E n f o r c e m e n t B u r e a u a g r e e d w i t h t h e R e p o r t ' s r e c o m m e n d a t i o n s f o r C o m m i s s i o n a c t i o n , a n d I i n t e n d t o e n s u r e t h a t C o m m i s s i o n s t a f f a r e a b l e u n d e r m y C h a i r m a n s h i p t o f o l l o w t h r o u g h o n i m p l e m e n t i n g t h e s e a c t i o n s . F i r s t , w e w i l l d e v e l o p a n d p u b l i s h p e r f o r m a n c e g o a l s a n d m e a s u r e s f o r F C C e n f o r c e m e n t p r a c t i c e s i n a c c o r d a n c e w i t h t h e G o v e r n m e n t P e r f o r m a n c e a n d R e s u l t s A c t ( G P R A ) M o d e r n i z a t i o n A c t o f 2 0 1 0 . A s C h a i r m a n , I ' v e i m p l e m e n t e d r e f o r m s t o t h e C o m m i s s i o n ' s p r o c e s s e s t o i n c r e a s e t r a n s p a r e n c y a n d a c c o u n t a b i l i t y i n t h e F C C ' s o p e r a t i o n s . P r i o r t o t h e r e l e a s e o f t h e R e p o r t , f o r e x a m p l e , I d i r e c t e d t h e O f f i c e o f t h e M a n a g i n g D i r e c t o r t o w o r k w i t h t h e C o m m i s s i o n ' s B u r e a u s a n d O f f i c e s t o d e v e l o p p e r f o r m a n c e g o a l s c o n s i s t i n g o f a p e r f o r m a n c e i n d i c a t o r , a m e a s u r a b l e t a r g e t , a n d a t i m e f r a m e f o r m e e t i n g t h a t t a r g e t , a n d t o i n c l u d e t h e s e p e r f o r m a n c e g o a l s i n t h e A n n u a l P e r f o r m a n c e P l a n t h a t t h e C o m m i s s i o n s u b m i t s w i t h i t s a n n u a l b u d g e t . T h e R e p o r t ' s a n a l y s i s a n d r e c o m m e n d a t i o n s c o n f i r m t h e n e e d f o r P a g e 2 - T h e H o n o r a b l e C h r i s C o o n s q u a n t i f i a b l e , m e a s u r a b l e , a n d p u b l i c p e r f o r m a n c e t a r g e t s . I l o o k f o r w a r d t o d e v e l o p i n g f u t u r e p e r f o r m a n c e g o a l s f o r F Y 2 0 2 0 a n d b e y o n d c o n s i s t e n t w i t h t h e G A O E n f o r c e m e n t R e p o r t . S e c o n d , w e w i l l d e v e l o p a n d m a k e p u b l i c l y a v a i l a b l e a c o m m u n i c a t i o n s s t r a t e g y f o r e x t e r n a l s t a k e h o l d e r s o u t l i n i n g t h e F C C ' s e n f o r c e m e n t p r o g r a m . T r a n s p a r e n c y i n t h e F C C ' s o p e r a t i o n s h a s b e e n o n e o f m y p r i m a r y c o n c e r n s d u r i n g m y t e n u r e a t t h e F C C . I n o n e o f m y f i r s t a c t s a s C h a i r m a n , f o r e x a m p l e , I i m p l e m e n t e d a p i l o t p r o g r a m t o m a k e p u b l i c t h e f u l l t e x t o fd r a f t i t e m s i n a d v a n c e o f t h e C o m m i s s i o n ' s p u b l i c m e e t i n g s , a n d I v i e w t h e R e p o r t ' s r e c o m m e n d a t i o n s t o c l a r i f y o u r e n f o r c e m e n t s t r a t e g y a s a n o t h e r o p p o r t u n i t y t o s h e d l i g h t o n t h e F C C ' s o p e r a t i o n s . I a p p r e c i a t e G A O ' s t h o r o u g h a n a l y s i s a n d r e c o m m e n d a t i o n s , a n d I r e i t e r a t e t h e C o m m i s s i o n ' s c o m m i t m e n t t o i m p l e m e n t i n g m e a s u r e s t o a d d r e s s G A O ' s f i n d i n g s . T h a n k y o uf o r t h e o p p o r t u n i t y t o r e s p o n d t o t h e G A O E n f o r c e m e n t R e p o r t , a n d I l o o k f o r w a r d t o d i s c u s s i n g t h i s i s s u e f u r t h e r i f y o u h a v e a n y q u e s t i o n s . S i n c e r e l y , - , \ , . L ' \ - A j i t V . P a i c c : T h e H o n o r a b l e G r e g W a l d e n T h e H o n o r a b l e F r e d U p t o n T h e H o n o r a b l e B o b L a t t a O F F I C E O F T H E C H A I R M A N F E D E R A L C O M M U N I C A T I O N S C O M M I S S I O N W A S H I N G T O N N o v e m b e r 1 5 , 2 0 1 7 T h e H o n o r a b l e S h e l l e y M o o r e C a p i t o C h a i r w o m a n S u b c o m m i t t e e o n F i n a n c i a l S e r v i c e s a n d G e n e r a l G o v e r n m e n t C o m m i t t e e o n A p p r o p r i a t i o n s U n i t e d S t a t e s S e n a t e 1 2 5 H a r t S e n a t e O f f i c e B u i l d i n g W a s h i n g t o n , D . C . 2 0 5 1 0 D e a r C h a i r w o m a n C a p i t o : O n S e p t e m b e r 1 4 , 2 0 1 7 , t h e G o v e r n m e n t A c c o u n t a b i l i t y O f f i c e ( G A O ) p u b l i c l y r e l e a s e d a r e p o r t e n t i t l e d F C C U p d a t e d I t s E n f o r c e m e n t P r o g r a m , b u t I m p r o v e d T r a n s p a r e n c y i s N e e d e d - G A O - i 7 - 7 2 7 ( G A O E n f o r c e m e n t R e p o r t o r R e p o r t ) . T h e r e p o r t e x a m i n e s ( 1 ) a c t i o n s t a k e n b y t h e F C C i n t h e l a s t f i v e y e a r s t o u p d a t e i t s e n f o r c e m e n t p r o g r a m ; ( 2 ) p e r f o r m a n c e g o a l s a n d m e a s u r e s f o r F C C ' s e n f o r c e m e n t p r o g r a m ; a n d ( 3 ) s e l e c t e d s t a k e h o l d e r s ' v i e w s o n t h e F C C ' s e n f o r c e m e n t p r o g r a m a n d t h e F C C ' s c o m m u n i c a t i o n w i t h t h e s e s t a k e h o l d e r s . T h e R e p o r t i n c l u d e s t w o r e c o m m e n d a t i o n s f o r E x e c u t i v e A c t i o n . F i r s t , t h e R e p o r t r e c o m m e n d s t h a t t h e C h a i r m a n o f t h e F C C s h o u l d e s t a b l i s h q u a n t i f i a b l e g o a l s a n d r e l a t e d m e a s u r e s p e r f o r m a n c e i n d i c a t o r s , t a r g e t s , a n d t i m e f r a m e s - f o r i t s e n f o r c e m e n t p r o g r a m a n d a n n u a l l y p u b l i s h t h e r e s u l t s t o d e m o n s t r a t e t h e p e r f o r m a n c e o f t h e p r o g r a m a n d i m p r o v e t r a n s p a r e n c y r e g a r d i n g F C C e n f o r c e m e n t . S e c o n d , t h e R e p o r t r e c o m m e n d s t h a t t h e C h a i r m a n o f t h e F C C s h o u l d e s t a b l i s h , a n d m a k e p u b l i c l y a v a i l a b l e , a c o m m u n i c a t i o n s s t r a t e g y o u t l i n i n g t h e a g e n c y ' s e n f o r c e m e n t p r o g r a m f o r e x t e r n a l s t a k e h o l d e r s t o i m p r o v e e n g a g e m e n t w i t h t h e t e l e c o m m u n i c a t i o n s c o m m u n i t y o n t h e p u r p o s e s , o b j e c t i v e s , a n d p r o c e s s e s t h e E n f o r c e m e n t B u r e a u e m p l o y s t o a c h i e v e i t s m i s s i o n . I n t h e A u g u s t 2 5 , 2 0 1 7 r e s p o n s e t o t h e d r a f t r e p o r t , t h e C h i e f o f t h e E n f o r c e m e n t B u r e a u a g r e e d w i t h t h e R e p o r t ' s r e c o m m e n d a t i o n s f o r C o m m i s s i o n a c t i o n , a n d I i n t e n d t o e n s u r e t h a t C o m m i s s i o n s t a f f a r e a b l e u n d e r m y C h a i r m a n s h i p t o f o l l o w t h r o u g h o n i m p l e m e n t i n g t h e s e a c t i o n s . F i r s t , w e w i l l d e v e l o p a n d p u b l i s h p e r f o r m a n c e g o a l s a n d m e a s u r e s f o r F C C e n f o r c e m e n t p r a c t i c e s i n a c c o r d a n c e w i t h t h e G o v e r n m e n t P e r f o r m a n c e a n d R e s u l t s A c t ( G P R A ) M o d e r n i z a t i o n A c t o f 2 0 1 0 . A s C h a i r m a n , I ' v e i m p l e m e n t e d r e f o r m s t o t h e C o m m i s s i o n ' s p r o c e s s e s t o i n c r e a s e t r a n s p a r e n c y a n d a c c o u n t a b i l i t y i n t h e F C C ' s o p e r a t i o n s . P r i o r t o t h e r e l e a s e o f t h e R e p o r t , f o r e x a m p l e , I d i r e c t e d t h e O f f i c e o f t h e M a n a g i n g D i r e c t o r t o w o r k w i t h t h e C o m m i s s i o n ' s B u r e a u s a n d O f f i c e s t o d e v e l o p p e r f o r m a n c e g o a l s c o n s i s t i n g o f a p e r f o r m a n c e i n d i c a t o r , a m e a s u r a b l e t a r g e t , a n d a t i m e f r a m e f o r m e e t i n g t h a t t a r g e t , a n d t o i n c l u d e t h e s e p e r f o r m a n c e g o a l s i n t h e A n n u a l P e r f o r m a n c e P l a n t h a t t h e C o m m i s s i o n s u b m i t s w i t h i t s a n n u a l b u d g e t . T h e R e p o r t ' s a n a l y s i s a n d r e c o m m e n d a t i o n s c o n f i r m t h e n e e d f o r Page 2-The Honorable Shelley Moore Capito quantifiable, measurable, and public performance targets. I look forward to developing future performance goals for FY2020 and beyond consistent with the GAO Enforcement Report. Second, we will develop and make publicly available a communications strategy for external stakeholders outlining the FCC' s enforcement program. Transparency in the FCC's operations has been one of my primary concerns during my tenure at the FCC. In one of my first acts as Chairman, for example, I implemented a pilot program to make public the full text of draft items in advance of the Commission's public meetings, and I view the Report's recommendations to clarify our enforcement strategy as another opportunity to shed light on the FCC's operations. I appreciate GAO's thorough analysis and recommendations, and I reiterate the Commission's commitment to implementing measures to address GAO's findings. Thank you for the opportunity to respond to the GAO Enforcement Report, and I look forward to discussing this issue further if you have any questions. cc: The Honorable Greg Walden The Honorable Fred Upton The Honorable Bob Latta Sincerely, dC V Ajit V. Pai O F F I C E O F T H E C H A I R M A N F E D E R A L C O M M U N I C A T I O N S C O M M I S S I O N W A S H I N G T O N N o v e m b e r 1 5 , 2 0 1 7 T h e H o n o r a b l e M i k e Q u i g l e y R a n k i n g M e m b e r S u b c o m m i t t e e o n F i n a n c i a l S e r v i c e s a n d G e n e r a l G o v e r n m e n t C o m m i t t e e o n A p p r o p r i a t i o n s U . S . H o u s e o f R e p r e s e n t a t i v e s 1 0 1 6 L o n g w o r t h H o u s e O f f i c e B u i l d i n g W a s h i n g t o n , D . C . 2 0 5 1 5 D e a r C o n g r e s s m a n Q u i g l e y : O n S e p t e m b e r 1 4 , 2 0 1 7 , t h e G o v e r n m e n t A c c o u n t a b i l i t y O f f i c e ( G A O ) p u b l i c l y r e l e a s e d a r e p o r t e n t i t l e d F C C U p d a t e d I t s E n f o r c e m e n t P r o g r a m , b u t I m p r o v e d T r a n s p a r e n c y i s N e e d e d - G A O - i 7 - 7 2 7 ( G A O E n f o r c e m e n t R e p o r t o r R e p o r t ) . T h e r e p o r t e x a m i n e s ( 1 ) a c t i o n s t a k e n b y t h e F C C i n t h e l a s t f i v e y e a r s t o u p d a t e i t s e n f o r c e m e n t p r o g r a m ; ( 2 ) p e r f o r m a n c e g o a l s a n d m e a s u r e s f o r F C C ' s e n f o r c e m e n t p r o g r a m ; a n d ( 3 ) s e l e c t e d s t a k e h o l d e r s ' v i e w s o n t h e F C C ' s e n f o r c e m e n t p r o g r a m a n d t h e F C C ' s c o m m u n i c a t i o n w i t h t h e s e s t a k e h o l d e r s . T h e R e p o r t i n c l u d e s t w o r e c o m m e n d a t i o n s f o r E x e c u t i v e A c t i o n . F i r s t , t h e R e p o r t r e c o m m e n d s t h a t t h e C h a i r m a n o f t h e F C C s h o u l d e s t a b l i s h q u a n t i f i a b l e g o a l s a n d r e l a t e d m e a s u r e s - p e r f o r m a n c e i n d i c a t o r s , t a r g e t s , a n d t i m e f r a m e s - f o r i t s e n f o r c e m e n t p r o g r a m a n d a n n u a l l y p u b l i s h t h e r e s u l t s t o d e m o n s t r a t e t h e p e r f o r m a n c e o f t h e p r o g r a m a n d i m p r o v e t r a n s p a r e n c y r e g a r d i n g F C C e n f o r c e m e n t . S e c o n d , t h e R e p o r t r e c o m m e n d s t h a t t h e C h a i r m a n o ft h e F C C s h o u l d e s t a b l i s h , a n d m a k e p u b l i c l y a v a i l a b l e , a c o m m u n i c a t i o n s s t r a t e g y o u t l i n i n g t h e a g e n c y ' s e n f o r c e m e n t p r o g r a m f o r e x t e r n a l s t a k e h o l d e r s t o i m p r o v e e n g a g e m e n t w i t h t h e t e l e c o m m u n i c a t i o n s c o m m u n i t y o n t h e p u r p o s e s , o b j e c t i v e s , a n d p r o c e s s e s t h e E n f o r c e m e n tB u r e a u e m p l o y s t o a c h i e v e i t s m i s s i o n . I n t h e A u g u s t 2 5 , 2 0 1 7 r e s p o n s e t o t h e d r a f t r e p o r t , t h eC h i e f o f t h e E n f o r c e m e n t B u r e a u a g r e e d w i t h t h e R e p o r t ' s r e c o m m e n d a t i o n s f o r C o m m i s s i o n a c t i o n , a n d I i n t e n d t o e n s u r e t h a t C o m m i s s i o n s t a f f a r e a b l e u n d e r m y C h a i r m a n s h i p t o f o l l o wt h r o u g h o n i m p l e m e n t i n g t h e s e a c t i o n s . F i r s t , w e w i l l d e v e l o p a n d p u b l i s h p e r f o r m a n c e g o a l s a n d m e a s u r e s f o r F C C e n f o r c e m e n tp r a c t i c e s i n a c c o r d a n c e w i t h t h e G o v e r n m e n t P e r f o r m a n c e a n d R e s u l t s A c t ( G P R A )M o d e r n i z a t i o n A c t o f 2 0 1 0 . A s C h a i r m a n , I ' v e i m p l e m e n t e d r e f o r m s t o t h e C o m m i s s i o n ' sp r o c e s s e s t o i n c r e a s e t r a n s p a r e n c y a n d a c c o u n t a b i l i t y i n t h e F C C ' s o p e r a t i o n s . P r i o r t o t h e r e l e a s e o f t h e R e p o r t , f o r e x a m p l e , I d i r e c t e d t h e O f f i c e o f t h e M a n a g i n g D i r e c t o r t o w o r k w i t h t h e C o m m i s s i o n ' s B u r e a u s a n d O f f i c e s t o d e v e l o p p e r f o r m a n c e g o a l s c o n s i s t i n g o f ap e r f o r m a n c e i n d i c a t o r , a m e a s u r a b l e t a r g e t , a n d a t i m e f r a m e f o r m e e t i n g t h a t t a r g e t , a n d t oi n c l u d e t h e s e p e r f o r m a n c e g o a l s i n t h e A n n u a l P e r f o r m a n c e P l a n t h a t t h e C o m m i s s i o n s u b m i t s w i t h i t s a n n u a l b u d g e t . T h e R e p o r t ' s a n a l y s i s a n d r e c o m m e n d a t i o n s c o n f i r m t h e n e e d f o r Page 2-The Honorable Mike Quigley quantifiable, measurable, and public performance targets. I look forward to developing future performance goals for FY2020 and beyond consistent with the GAO Enforcement Report. Second, we will develop and make publicly available a communications strategy for external stakeholders outlining the FCC's enforcement program, Transparency in the FCC's operations has been one of my primary concerns during my tenure at the FCC. In one of my first acts as Chairman, for example, I implemented a pilot program to make public the full text of draft items in advance of the Commission's public meetings, and I view the Report's recommendations to clarify our enforcement strategy as another opportunity to shed light on the FCC's operations. I appreciate GAO's thorough analysis and recommendations, and I reiterate the Commission's commitment to implementing measures to address GAO's findings. Thank you for the opportunity to respond to the GAO Enforcement Report, and I look forward to discussing this issue further if you have any questions. Sincerely, 1 / AjitV.Pai cc: The Honorable Greg Walden The Honorable Fred Upton The Honorable Bob Latta OFFICE OF THE CHAIRMAN FEDERAL COMMUNICATIONS COMMISSION WASHINGTON November 15, 2017 The Honorable Tom Graves Chairman Subcommittee on Financial Services and General Government Committee on Appropriations U.S. House of Representatives B-300 Rayburn House Office Building Washington, D.C. 20515 Dear Chairman Graves: On September 14, 2017, the Government Accountability Office (GAO) publicly released a report entitled FCC Updated Its Enforcement Program, but Improved Transparency is Needed - GAO-i 7-727 (GAO Enforcement Report or Report). The report examines (1) actions taken by the FCC in the last five years to update its enforcement program; (2) performance goals and measures for FCC's enforcement program; and (3) selected stakeholders' views on the FCC's enforcement program and the FCC's communication with these stakeholders. The Report includes two recommendations for Executive Action. First, the Report recommends that the Chairman of the FCC should establish quantifiable goals and related measures - performance indicators, targets, and timeframes - for its enforcement program and annually publish the results to demonstrate the performance of the program and improve transparency regarding FCC enforcement. Second, the Report recommends that the Chairman of the FCC should establish, and make publicly available, a communications strategy outlining the agency's enforcement program for external stakeholders to improve engagement with the telecommunications community on the purposes, objectives, and processes the Enforcement Bureau employs to achieve its mission. In the August 25, 2017 response to the draft report, the Chief of the Enforcement Bureau agreed with the Report's recommendations for Commission action, and I intend to ensure that Commission staff are able under my Chairmanship to follow through on implementing these actions. First, we will develop and publish performance goals and measures for FCC enforcement practices in accordance with the Government Performance and Results Act (GPRA) Modernization Act of 2010. As Chairman, I've implemented reforms to the Commission's processes to increase transparency and accountability in the FCC's operations. Prior to the release of the Report, for example, I directed the Office of the Managing Director to work with the Commission's Bureaus and Offices to develop performance goals consisting of a performance indicator, a measurable target, and a timeframe for meeting that target, and to include these performance goals in the Annual Performance Plan that the Commission submits with its annual budget. The Report's analysis and recommendations confirm the need for Page 2-The Honorable Tom Graves quantifiable, measurable, and public performance targets. I look forward to developing future performance goals for FY2020 and beyond consistent with the GAO Enforcement Report. Second, we will develop and make publicly available a communications strategy for external stakeholders outlining the FCC' s enforcement program. Transparency in the FCC's operations has been one of my primary concerns during my tenure at the FCC. In one of my first acts as Chairman, for example, I implemented a pilot program to make public the full text of draft items in advance of the Commission's public meetings, and I view the Report's recommendations to clarify our enforcement strategy as another opportunity to shed light on the FCC's operations. I appreciate GAO's thorough analysis and recommendations, and I reiterate the Commission's commitment to implementing measures to address GAO's findings. Thank you for the opportunity to respond to the GAO Enforcement Report, and I look forward to discussing this issue further if you have any questions. Sincerely, AjitV.Pai cc: The Honorable Greg Walden The Honorable Fred Upton The Honorable Bob Latta OFFICE OF THE CHAIRMAN FEDERAL COMMUNICATIONS COMMISSION WASHINGTON November 15, 2017 The Honorable Ron Johnson Chairman Committee on Homeland Security and Governmental Affairs United States Senate 340 Dirksen Senate Office Building Washington, D.C. 20510 Dear Chairman Johnson: On September 14, 2017, the Government Accountability Office (GAO) publicly released a report entitled FCC Updated Its Enforcement Program, but Improved Transparency is Needed - GAO-i 7-727 (GAO Enforcement Report or Report). The report examines (1) actions taken by the FCC in the last five years to update its enforcement program; (2) performance goals and measures for FCC's enforcement program; and (3) selected stakeholders' views on the FCC's enforcement program and the FCC's communication with these stakeholders. The Report includes two recommendations for Executive Action. First, the Report recommends that the Chairman of the FCC should establish quantifiable goals and related measures - performance indicators, targets, and timeframes - for its enforcement program and annually publish the results to demonstrate the performance of the program and improve transparency regarding FCC enforcement. Second, the Report recommends that the Chairman of the FCC should establish, and make publicly available, a communications strategy outlining the agency's enforcement program for external stakeholders to improve engagement with the telecommunications community on the purposes, objectives, and processes the Enforcement Bureau employs to achieve its mission. In the August 25, 2017 response to the draft report, the Chief of the Enforcement Bureau agreed with the Report's recommendations for Commission action, and I intend to ensure that Commission staff are able under my Chairmanship to follow through on implementing these actions. First, we will develop and publish performance goals and measures for FCC enforcement practices in accordance with the Government Performance and Results Act (GPRA) Modernization Act of 2010. As Chairman, I've implemented reforms to the Commission's processes to increase transparency and accountability in the FCC's operations. Prior to the release of the Report, for example, I directed the Office of the Managing Director to work with the Commission's Bureaus and Offices to develop performance goals consisting of a performance indicator, a measurable target, and a timeframe for meeting that target, and to include these performance goals in the Annual Performance Plan that the Commission submits with its annual budget. The Report's analysis and recommendations confirm the need for quantifiable, measurable, and public performance targets. I look forward to developing future performance goals for FY2020 and beyond consistent with the GAO Enforcement Report. Page 2-The Honorable Ron Johnson Second, we will develop and make publicly available a communications strategy for external stakeholders outlining the FCC's enforcement program. Transparency in the FCC's operations has been one of my primary concerns during my tenure at the FCC. In one of my first acts as Chairman, for example, I implemented a pilot program to make public the full text of draft items in advance of the Commission's public meetings, and I view the Report's recommendations to clarify our enforcement strategy as another opportunity to shed light on the FCC's operations. I appreciate GAO's thorough analysis and recommendations, and I reiterate the Commission's commitment to implementing measures to address GAO's findings. Thank you for the opportunity to respond to the GAO Enforcement Report, and I look forward to discussing this issue further if you have any questions. Sincerely, . AjitV.Pai cc: The Honorable Greg Walden The Honorable Fred Upton The Honorable Bob Latta