Federal Updates

Federal Update -- Week of January 12, 2012

Chair of Senate Judiciary Committee comments on the Protect IP ACT.  On Thursday, January 12, 2012, Senator Leahy(D-Vt.) released a statement, as a key sponsor of the Protect IP Act, that he will propose that further study be given to the bill's provisions relating to Internet Service Providers' (ISP's) requirement to prevent online infringement and the sale of counterfeit goods.

The bill was unanimously approved by the Senate Judiciary Committee and is scheduled for initial action on the Senate Floor in late January.

One of the key provisions of the legislation allows law enforcement to secure a court order asking ISP's to use the Domain NAME SYSTEM to prevent access for foreign rogue websites.  This provision which remains contentious was drafted according to the Leahy statement "in response to concerns that law enforcement has remedies it can take against domestic websites but does not currently have the power to stop foreign rogue websites.  I worked closely with the ISP's to ensure they were comfortable with how it would work and appreciate their support."

21st Century Communications and Video Accessibility ACT of 2010(CVAA).  Congressman Ed Markey(D-Ma) and Senator Mark Pryor(D-Ark.), authors of the CVAA, sent a letter to the FCC expressing their strong belief that the legislation requires closed captioning of programming using IP which has been broadcast on television and then is posted on line.

In their letter to the FCC, which is implementing rules to the CVAA, the Members of Congress state "it was our intent that full-length programming that has been broadcast on television with captions after the effective date of the Commissions rule be shown with captions when the programming is delivered using IP even if such programming is shown on the Internet in segments and even when some but not all segments are posted on line" They conclude that exclusion of such programming from captioning obligations would be inconsistent with the CVAA's purpose to "help ensure that individuals with disabilities are able to fully utilize communications services and equipment and better access video programming."

Two California House Republicans Announce Retirement.  Two long term Republican members of the California Congressional delegation this week announced that they will not run for re-election.

In Northern California Congressman Wally Herger who was first elected to the House in 1987 announced his retirement at the end of this session and endorsed State Senator Doug LaMalfa to take his place.  LaMalfa, a rice farmer and previously served in the State Assembly is strongly favored to win this seat in November.

In Southern California Congressman Jerry Lewis of Redlands who has represented Riverside and San Bernardino Counties for 33 years announced Wednesday that this will be his last term in Congress.  Lewis was the first Californian to serve as Chairman of the powerful House Appropriations Committee.

Several potential candidates are looking at this seat including Representative Gary Miller who prior to the Lewis announcement was looking at running against fellow Republican Ed Royce due to the newly drawn district maps.  Also said to be looking at this seat are Congressman David Dreier, State Senator Bob Dutton and Assembly Member Paul Cook.

Federal Update -- Week of October 21, 2011

Baldwin continues to gain momentum. Congressional Research Service releases report on PEG.  Proponents of Representative Baldwin's(D-WI) H.R 1746 The Community Access Preservation Act (CAP ACT) continue to push hard for co-sponsorship by members of our Congressional delegation. Members need to hear from you that we oppose this bill and do not want them to co-sponsor it. If you have not heard back from a Member on this issue re-contact them to confirm that they will not be a co-sponsor.
 
On October 14th Anna Eshoo(D-Palo Alto) added her name to the list of co-sponsors joining fellow California Representatives Stark, Speier, and Woolsey as co-sponsors. Given her position as ranking member on the Telecommunications Subcommittee we need to re-enforce our opposition with Democrats. Particular, but not exclusive attention should be given to Representatives Farr, McNerney, Lofgren, and Thompson who co-sponsored similar legislation in the last session of Congress.
 
Giving the legislation additional possible momentum is a report released this week by the Congressional Research Service entitled "Public, Educational, and Governmental (PEG) Access Cable Television Channels: Issues for Congress."  The report is generally favorable to the PEG community and can be viewed as sympathetic to the Baldwin legislation.
 
The Congressional Research Service works exclusively for the United States Congress providing policy and legal analysis to committees and Members of both the House and Senate.

Universal Service Reform.  While the House has been away from Washington this week on a constituent work week, letters have continued to flow into the Federal Communications Commission (FCC) in anticipation of the Commissions October 27th action on Universal Service Reform.
 
At least five letters were sent to the Commission from the Hill this week encouraging the FCC to act in a specific manner on the 27th when this issue is scheduled to be voted on. Senator Dan Inouye(D-Hawaii) encouraged the FCC to recognize the unique challenges facing remote, rural and insular areas particularly areas with high Native populations, including Native Hawaiian communities, Tribal Lands, and Alaska Native regions. Inouye a long time member of the Senate Commerce Committee expressed concern that the Commission did not appear to be recognizing the challenges of these communities.
 
In an October 18th letter Representative Jay Inslee(D-Wa) urged the Commission to focus on the fundamental tenets of reform which would ease the financial burden on rate payers , provide support only where necessary and be competitively neutral. A day later on October 19th in a letter Representative Bobby Scott(R-Va) emphasized the need for broadband to reach rural and agricultural areas but did not endorse a specific plan. On the 21st the Iowa Congressional delegation sent a letter in a similar vein which as the Scott letter and said the FCC reforms must take into account the impact on rural providers and customers and while encouraging deployment to unserved areas the letter said any action should not harm rural customers who already have broadband service. Also on October 21st Senator Mark Warner(D-Va) wrote the Commission a letter strongly emphasizing the need for competitive neutrality and expressed his concern that the reform proposals under consideration by the FCC appear to award the vast majority of funding to incumbents. 
 
Federal Update -- Week of October 14, 2011

Hearing Held on "Understanding Consumer Attitudes About Privacy".  On Thursday October 13th the House Subcommittee on Commerce, Manufacturing, and Trade held a hearing on "Understanding Consumer Attitudes About Privacy"
 
Witnesses included Barbara Lawler, Chief Privacy Officer, Intuit; Michael Hintze, Associate General Counsel, Microsoft; Linda Woolley, Executive Vice President, Direct Marketing Association, Alessandro Acquisti, Associate Professor, Carnegie Mellon University and Pam Dixon, Executive Director, World Privacy Forum.
 
Excerpts from Congressional Statements:
 
Mary Bono Mack(R-California)  When it comes to online privacy consumer attitudes are the bits and bytes that matter the most. Do Americans believe enough is being done today to protect their online privacy? Are they taking advantage of the tools currently available to them? Do they even know about these tools and if not why not? And do these privacy features for the most part really work? Or is it time for Congress to finally legislate in this area. When it comes to the Internet , how do we-as Congress and as Americans balance the need to remain innovative with the need to protect privacy? I still remain somewhat skeptical right now of both industry and government. Frankly I don't believe industry has proven it has done enough to protect American consumers, while government unfortunately tends to overreach when it comes to new regulations. That's why I'm so anxious to hit the "refresh key" to learn about the latest about consumer attitudes and expectations.
 
Butterfield(D-North Carolina ) One thing is clear. Consumers are not clamoring for tailored advertising. The finding of one study showed that 64% of participants agree that someone keeping track of our activity online is invasive and only 4% disagree. I believe customers have the right to know upfront when they are being tracked and have the option to opt out entirely. A strong national baseline privacy law is the best way to ensure consumers have control over their information.
 
Joe Barton(R-Texas) The third amendment said that no soldier in time of peace should be quartered involuntarily in a house without the consent of the owner. If the founding fathers had the Internet, instead of saying without the consent of owners they'd have said without the consent of the Internet user they couldn't collect data. I think it is time Congress passes a strong explicit privacy protection law.  Apparently individuals exist primarily to be marketed to and not as individuals who have rights under the constitution.  Every week we hear an additional outrage about the Internet. I was told yesterday that Amazon is going to create its own server and collect information on all those people without their knowledge. Enough is enough.
 
Witness testimony:
 
Lawler (Intuit) It is the customers data not ours. Data privacy matters to consumers. They care deeply about how their data is used. Customers prefer simple and easy to read information. Confidence increases when consumers understand how the data can be used to benefit them. When data driven benefits are outlined to consumers their attitude changes.
 
Hintze (Microsoft) There is no silver bullet because privacy means different things to different people and context also matters. As technology evolves customers view of privacy evolves with it. More than 435,000 consumers visit our website monthly that deals with privacy protection and 20 percent take an action mostly opting out.  No company can do consumer privacy on its own. We need both industry self regulation and baseline federal privacy legislation. Self regulation is generally better and we need better consumer education. Microsoft has over 40 people exclusively working on privacy and over 400 who have it as a defined part of their job. We are seeing more awareness of privacy. It is a challenge to get the right information in front of people. In response to a question from Bono-Mack who said she received an email from a friend she did gymnastics with 40 years ago and then found she was receiving advertising about tumbling mats Hintze said that Microsoft does not do deep packet inspection and does not target based on email content but does not think Congress should legislate based on a specific technology.
 
Wooley (Direct Marketing Association) Expenditures on Internet marketing should be over $30 billion this year. Industry self regulation is sufficient and there is not a need for government regulation. Industry can do a better job because it is quicker and nimbler than government. Consumers can find preference based advertising more relevant than the random message they would see otherwise.
 
Acquisti (Carnegie Mellon) Most Americans believe privacy is a right and that it is under threat. They are especially troubled by tracking technology and have significant distrust of targeted advertising. Consumers cannot predict how innocuous information gathered today can be combined in the future with other data to become sensitive information tomorrow.
 
Dixon (World Privacy Forum) Consumers don't know what the risks are out there. We all drive cars but we are not all mechanics. Likewise, we are all on the Internet but are not technology experts. Consumers are almost completely unaware of the risks we face. We support legislation that will protect consumers but don't see that happening in the near future so we want to reform self regulation to make it more effective and give it more transparency and greater consumer involvement.

Federal Update -- Week of September 13, 2011

**ALERT** IMMEDIATELY ASK YOUR MEMBER OF CONGRESS TO CONTACT THE FCC ON UNIVERSAL SERVICE REFORM AND SUPPORT COMPETITVELY NETURAL AND FISCALLY RESPONSIBLE REFORM.  It is critically important that you immediately contact your Members of Congress to express your concerns regarding the proposal USTelecom submitted to the FCC regarding changes to the existing Universal Service (USF) and intercarrier compensation rules.  If they share our concerns we would like them to communicate those concerns to the FCC.  At a minimum we want to make sure they do not communicate to the FCC support for the Telco's plan. The phone companies are very actively working this issue on the Hill and Congress to hear from you.

Attached is the NCTA's Key Contact alert which many of you received last Thursday. While we need to contact the entire California delegation it is particularly important to reach the following California Members:  Thompson (D-1 Napa), Lungren (R-3 Gold River), Matsui (D-5 Sacramento), Woolsey (D-6 Marin), McNerney (D-11 Pleasanton), Eshoo (D-14 Palo Alto), Farr (D-17 Salinas), Cardoza (D-18 Modesto), Costa (D-20 Fresno), Capps (D-23 Santa Barbara), Gallegly (R-24 Camarillo), Dreier (R-26 San Dimas), Berman (D-28 Van Nuys), Waxman , Becerra, Roybal-Allard, Richardson, Sanchez (Linda), Sanchez (Loretta), Lewis, Baca, Campbell, Issa.

Given the timing of FCC on this matter we need to complete our communications on this issue by next Friday, September 22, 2011, at the latest.  Please let us know what feedback you get as you contact offices.

Jerry Yanowitz will be in DC next Monday and Tuesday meeting with offices on this issue.  Please contact him if you have any questions.

SEPTEMBER CONGRESSIONAL HEARINGS OF INTEREST

House Agriculture Committee Hearing
Rural Development Subcommittee hearing on "Examination of USDA Rural Development Programs"
Tuesday, September 13, 2011, at 10 am
1300 Longworth House Office Building
            Witnesses:
            Jonathan S. Adelstein, Administrator, Rural Utilities Services, USDA
Judith A. Canales, Administrator, Rural Business and Cooperative Services, USDA
Tammye H. Treviño, Administrator, Rural Housing Services, USDA

House Financial Services Committee Hearing
Financial Institutions and Consumer Credit Subcommittee hearing on "Cybersecurity: Threats to the Financial Sector"
Wednesday, September 14, 2011, at 10 am
2128 Rayburn House Office Building
            Witnesses:
            Panel I
Alvin T. Smith, Assistant Director, United States Secret Service
Gordon Snow, Assistant Director, Federal Bureau of Investigation
Greg Schaffer, Acting Deputy Under Secretary, Department of Homeland Security
Panel II
William B. Nelson, President & CEO, Information Sharing and Analysis Center
Bryan Sartin, Director, Investigative Response, Verizon
Brian Tillett, Chief Security Strategist, Symantec
Greg Garcia, Partnership Executive for Cybersecurity & Identity Management, BoA
Greg Shannon, Chief Scientist, Carnegie Mellon' Software Engineering Institute CERT Liaison Program
Marc Rotenberg, President, Electronic Privacy Information Center

House Energy & Commerce Committee Hearing
CMT Subcommittee hearing on privacy and what to learn from the EU
Thursday, September 15, 2011, at 9:30 am
            Witnesses:
            Nicole Lamb-Hale, International Trade Association
            Representative from Massachusetts Institute of Technology
            Representative from Data Brokers Association

Senate Judiciary Committee Markup
Full Committee markup of S.1151, Personal Data Privacy and Security Act of 2011; S.1408, Data Breach Notification Act; and S. 1535, Personal Data Protection and Breach Accountability Act of 2011
Thursday, September 15, 2011, at 10 am
226 Dirksen Senate Office Building

Senate Judiciary Committee Hearing
Antitrust Subcommittee hearing on "The Power of Google: Serving Consumers or Threatening Competition?"
Wednesday, September 21, 2011, at 2 pm
226 Dirksen Senate Office Building
            Witnesses:
            Eric Schmidt, Executive Chairman, Google
 
House Agriculture Committee Field Hearing
Rural Development Subcommittee hearing on rural broadband
Saturday, September 24, 2011
Likely in Springfield, IL

Federal Update -- Week of August 26, 2011

California Tribe receives $1.1 million Community Connect Grant.   The Karuk Tribe in Orleans California received a Community Connect grant to provide Internet services to 570 tribe members in Orleans, California. The tribe has a total of 3583 Members.  The grant which was announced on Monday by Agriculture Secretary Tom Vilsack is part of a program intended to bring broadband services to unserved and underserved rural communities. The $1,141,870 granted to the tribe was part of total $103 million in funding for 23 projects which was announced on Monday.

Cable takes aim at Telco Universal Services Fund proposals at the Federal Communications Commission.   NCTA this week filed both comments and a letter in the FCC's universal service/intercarrier compensation reform proceeding.  In its communications, NCTA expressed support for the Commissions efforts to modernize the high-cost universal service program and said that it was long overdue. NCTA pointed out that the cable industry competes directly with LEC's that receive around $3billion annually in high cost subsidies.
 
NCTA said that the incumbent LEC proposals do not satisfy the four principles that the Commission has established to guide this process: (1) modernizing USF and intercarrier compensation for broadband; (2) fiscal responsibility; (3)greater accountability from companies that receive money; and (4)market driven policies such as competitive bidding to award support to the most efficient provider.
 
NCTA stated that it is necessary for the Commission, as it nears the finish line of this process, to "focus on the larger responsibility it bears to the continued development of a competitive broadband marketplace and a fiscally responsible support regime that does not unduly burden American consumers. "
 
 
Congress on Recess - Please report on any meetings.  Congress is moving towards the conclusion of its August recess. If you have had any meetings with Members which have dealt with the PEG or DBS legislation please let NCTA or CCTA know the results of these conversations

Federal Update -- Week of July 1, 2011

House and Senate Hearings on Online Privacy.

House Representatives Bono-Mack (R-Palm Springs) and Greg Waldon (R-Oregon) announced on Wednesday that their respective subcommittees of the House Energy and Commerce Committee will hold a series of hearings in the coming months on how information is collected, protected, and utilized in the online environment.  The Commerce, Manufacturing, and Trade Subcommittee and Communications and Technology Subcommittee will hold a joint hearing on July 14th and will hear from federal regulators to discuss existing federal laws and practices designed to protect on line privacy.

During the announcement, Bono Mack stated that the committee would examine what needs to be done on U.S. Internet privacy policy, noting that most Americans are concerned about how personal information is handled on the internet. Congress needs to determine what role the federal government should play in protecting personal information. Bono-Mack is currently developing data security legislation to implement safeguards against data breach and public notification in case a breach occurs.

 Federal Update -- Week of June 24, 2011

"Reforming FCC Process."  On Wednesday the House Energy and Commerce Communications Subcommittee held a hearing on "Reforming FCC Process."  Subcommittee Chairman Walden open the hearing by saying his draft legislation was a starting point for a necessary conversation to modernize the processes of the FCC. He said the steps FCC Chairman Genachowski outlined at a previous committee hearing regarding steps that the FCC already has already taken to improve the transparency and processes showed positive direction but needed to be formalized. He said it was not his intent to micro-manage the Commission but to strike a balance between appropriate Congressional input and oversight and the Commissions need for flexibility.
 
Anna Eshoo(D-Palo Alto), the ranking member of the Subcommittee in her opening statement thanked Chairman Walden for incorporating her "FCC Collaboration Act" in the bill which would allow three or more commissioners to meet at one time to discuss issues outside of a commission meeting. All six witnesses when asked by Eshoo during the hearing stated they believed that change would be positive. Eshoo said it is important to keep pressing ahead on the reform issue but cautioned against legislation that is overly prescriptive.
 
Henry Waxman(D-Los Angeles) the ranking member of the full committee came out strongly opposed to the legislation in its current form despite what he said were some promising aspects of the bill.  In his opening statement, he said that it had serious defects and would make the FCC less effective and would undermine the agency's ability to move promptly in the public interest. He said the proposed legislation would put an undue burden on the FCC and that it would have to do a cost benefit analysis on every proposed regulation which is unnecessary.
 
While Chairman Walden did not announce a timetable for this FCC reform legislation he did say the committee was making progress on spectrum legislation and would move a bill soon.
 
 
Universal Service:  FCC Information.  On June 22nd Chairman Upton, Ranking Member Waxman, Chairman Walden and Ranking Member Eshoo sent a detailed two page letter to FCC Chairman Genachowski requesting specific data on the Universal Service Fund.  Included in the letter was a request for:

• A state by state list of total disbursements of USF support and a list of net contributor states and net recipient states.
• A list of states that have a state-wide universal service fund.
• A state-by-state list of competitive eligible telecommunication carriers and the names of such entities grouped by holding companies.
• A list of the top ten recipients by holding company of high cost support for each of the last three years.

The Chairman was asked to provide the information by July 22nd. 
 
 "Next Generation Wireless Disclosure Act."On Wednesday Anna Eshoo (D-Palo Alto), the top Democrat on the House Energy and Commerce Subcommittee on Communications and Technology, introduced the "Next Generation Wireless Disclosure Act."
 
The bill would require the FCC to evaluate the speed and price of 4G wireless data service provided by the ten largest wireless carriers in order to provide consumers with access to side-by side comparison in their service area. In addition the legislation would provide consumers at the point of sale and in all billing material information on network reliability, coverage area maps, pricing and guaranteed minimum speed.

Federal Update -- Week of June 17, 2011

Matsui Re-introduces Broadband Affordability Bill.  Representative Doris Matsui (D-CA), a member of the House Commerce Committee, has re-introduced legislation that would expand the Universal Service Fund to include broadband by offering subsidies to low income households in both urban and rural America for Internet access services. Matsui first introduced similar legislation in 2009. The bill finds that price is one of the barriers to broadband adoption by low income households and directs the FCC to establish a broadband lifeline program within 270 days of the legislations enactment. The bill is technology neutral and the provider does not necessarily have to be an eligible telecommunication carrier to receive support.
 
In a statement NCTA President and CEO Michael Powell said "We support Rep. Matsui's efforts and look forward to working with her and other members on new ideas that will improve digital literacy and help low-income households realize the benefits of broadband."
 
 
Data Security Activity in House and Senate.  On Wednesday, June 15, 2011, Senators Pryor(D-ARK) an Rockefeller(D.W-Va) reintroduced legislation to require businesses that store consumers personal information to put strong security features in place to safeguard sensitive data and to alert consumers when this data has been breached.
 
In their press release announcing the legislation the Senators stated "The consequences of data breaches can be grave: identity theft, depleted savings accounts, a ruined credit score, and trouble getting loans for cars, homes and children's education are just some of the effects."They pointed to significant breaches at Epsilon, Sony, TJ Maxx, and ATT as examples of the problem they seek to address.
 
In the House, the House Energy and Commerce Subcommittee on Commerce, Manufacturing, and Trade met to hear testimony on draft legislation called the SAFE Data ACT, a bill to require greater protection for sensitive consumer data and timely notification in case of breach. In her opening statement Committee Chairman Mary Bono Mack (D-CA) said sophisticated cyber attacks are becoming the greatest threat to electronic commerce and that Congress must take immediate steps to protect the online information of American citizens. Representative Henry Waxman(D-LA) ranking member of the full Commerce Committee said that data security is not a partisan issue and that all members should care about it.
 
The House passed a Cybersecurity bill in the last Congress which was not voted on by the Senate. This bill has many of the features of that legislation. However some Members who spoke felt that provisions of this year's bill went too far while others felt provisions needed to be strengthened. The bill has not yet been set for a vote. 
 
 Federal Upate -- Week of June 3, 2011

Promoting Broadband, Jobs and Economic Growth Through Commercial Spectrum Auctions:  On June 1, the House Energy and Commerce Committee Subcommittee on Communications and Technology held a hearing entitled, Promoting Broadband, Jobs and Economic Growth Through Commercial Spectrum.  Chairman Greg Walden (R-OR) expressed his support for voluntary incentive-based auctions of broadcaster spectrum conducted by the FCC (a view widely shared by Members from both sides of the aisle). He also articulated his concern with allocating versus auctioning D-block spectrum to public safety. Ranking Member Anna Eshoo (D-CA) also supported voluntary incentive-based auctions and expressed support for the efficient use of unlicensed spectrum.  The National Association of Broadcasters (NAB) supports the Committee's goal to promote wireless broadband and incentive-based auctions on the condition that they are truly voluntary. For an auction process to be truly voluntary, broadcasters must not be coerced into participating in an incentive auction, nor should they face penalties for not participating. Such penalties would include reduced interference protection, relocation to inferior channel allotments, diminished service areas, or onerous taxes in the form of spectrum fees.

Promoting Investment and Protecting Commerce Online: The ART Act, the NET Act and Illegal Streaming:  On June 1, the House Judiciary Subcommittee on Intellectual Property, Competition, and the Internet held a hearing entitled,  Promoting Investment and Protecting Commerce Online:  The ART Act, the NET Act and Illegal Streaming.  Subcommittee Chairman Bob Goodlatte (R-VA) and Ranking Member Mel Watt (D-NC) agreed that the NET and ART Acts 1) closed a loophole to better protect copyrighted acts on line; 2) recognized that copyright owners are disproportionately harmed by online distribution of their works; and 3) asserted that prosecutors should have the authority to pursue felony indictments against infringers, but had been passed before large-scale streaming existed. They now believe that new authority should be given to broaden the scope to include illicit online streaming.

Federal Upate -- Week of May 13, 2011

DBS Tax bill reintroduced.  On Tuesday H.R. 1804 (State Video Tax Fairness Act) was introduced by Representative Sensenbrenner (R-WI) with two co-sponsors.  Representative John Conyers (D-MI) the former Chair of the House Judiciary Committee introduced identical legislation in the previous session of Congress. The bill would pre-empt the ability of states to ensure that all multichannel video providers pay similar taxes and fees.

CCTA has written a letter to all members of the California Congressional delegations asking them to oppose this legislation and not to be cosponsors.

Baldwin and LaTourette legislation would impose new PEG obligations on cable operators.  Representatives Baldwin (D-WI) and LaTourette(R-OH) recently introduced H.R. 1746 (the Community Preservation Act) that would impose new PEG obligations on cable operators.  In those states like California, with state franchising legislation, H.R. 1804 would pre-empt decisions made by the state authority and give a local entity authority over certain aspects of PEG including the imposition of a PEG fee of up to 2% of gross revenues to be used for any PEG related purpose.

CCTA has sent a letter to the entire California Congressional delegation asking them to oppose this legislation and not to join as a co-sponsor.

Do Not Track Legislation Proposed in House and Senate.  Senator Jay Rockefeller (D-WV) this week introduced S. 913 which would require the Federal Trade Commission to enact within one year rules which establish a mechanism by which consumers can direct whether they want to have online service providers collect personal information.  Online service providers may collect and use information of individuals who decline to be tracked if it is necessary to provide an individual with a service they have requested so long as the information is later deleted.

House Representatives Markey and (D-MA and Joe Barton (T-TX) introduced a discussion draft of the "Do No Track Kids Online" bill. The proposed legislation would establish restrictions on the collection and use of personal information of children and minors.  The legislation would build on the current Children's Online Privacy Protection Act of 1998 (COPPA) which now pertains to children only under the age of 13.

Both legislative proposals give wide authority to the Federal Trade Commission to establish and enforce new rules.

Federal Update -- Week of May 6, 2011

Eshoo Introduces Broadband Deployment Bill.  On Tuesday Representative Anna Eshoo (D-Palo Alto), the top Democrat on the Energy and Commerce Subcommittee on Communications and Technology introduced legislation which would require the inclusion of broadband conduit during the construction of federal highways.

In her press release announcing the "Broadband Conduit Deployment Act of 2011" Eshoo said "This legislation is a creative approach to more rapidly deploy broadband service, promote competition, and do so with limited federal dollars.  This "dig once" policy would expand broadband at a fraction of the cost by including conduit as roads are being built."

In a statement following the introduction of the Eshoo legislation NCTA President and CEO Michael Powell said "We applaud Representative Eshoo for introduction of the Broadband Conduit Deployment Act of 2011 which will facilitate the further deployment of broadband service throughout the U.S. We look forward to working with Representative Eshoo..."

Original co-sponsors include California Representatives Henry Waxman, Doris Matsui, and Lynn Woolsey. The legislation has been referred to the House Transportation and Infrastructure Subcommittee on Highways and Transit.

Federal Update -- Week of April 8, 2011

House Approves Resolution Blocking FCC Net-Neutrality Rules.  After a partisan and contentious debate on the House Floor Friday, April 8, 2011, the Republican controlled body voted 240-179 to invalidate the FCC's net neutrality rules adopted by the agency in late December 2010. Six Democrats voted with the Republicans for the bill while only two Republicans voted against it.
 
The vote on H.J. Res.37 was the only vote scheduled on the House calendar for April 8, 2011, as negotiations took place behind the scenes on passing a third continuing resolution or adoption of a budget to avoid a midnight shut-down of the government. During the debate Minority Whip Steny Hoyer tried to attach an amendment to the Resolution dealing with the budget stalemate but it was opposed by the Republican majority and ruled non-germane.
 
Republicans speaking in favor of the resolution said the Internet had been successful because it had not been regulated by the government and these FCC's rules are an attempt by the government to regulate and take over the Internet. Democratic opponents who spoke against the resolution including Californian's Eshoo, Waxman, Capps, and Matsui focused on the importance of an open Internet and that the absence of these regulations would bring uncertainty to the marketplace and give large corporations inordinate power and influence over the Internet.
 
The resolution now goes to the Democratically controlled Senate where it faces a very uncertain future.

House Energy and Commerce Committee Approves Broadband Stimulus Clarification Bill.  On Tuesday, April 5, 2011, the House Energy and Commerce Committee unanimously approved legislation to clarify that unused broadband stimulus funds would be returned to the Treasury and not kept by NTIA or RUS for additional projects.
 
While some committee Democrats felt the language was unnecessary as it was already the practice to return funds to the Treasury Sub-Committee Chairman Walden wanted certainty that the policy would not change.
 
Former Committee Chairman Waxman praised the bi-partisan nature of the work on the bill after its introduction as did Anna Eshoo the ranking member of the Communications Subcommittee.

Federal Update -- Week of April 1, 2011

Committee Approves Legislation on Return of Unused Stimulus Money.  The House Communications Subcommittee on Friday, April 1, 2011, unanimously approved a bill favored by the Republican majority that would clarify that any unused money from the broadband stimulus program would be promptly returned to the Treasury. Democrats on the Committee led by ranking member Anna Eshoo (D-Ca.) said the bill was unnecessary and redundant as current legislation already did what the bill required, but would not oppose it.
 
Committee Chairman Walden moved quickly through the hearing and mark-up due to pending votes on the House floor. The Committee Members present heard testimony from Jonathan Adelstein, Administrator of the Rural Utilities Service and Lawrence Strickling, head of the National Telecommunications and Information Administration (NTIA).  Both witnesses testified that they had adequate resources to oversee the grants they had given out and that the provisions of the legislation mirrored their current practices and they were not opposed.
 
Henry Waxman(D-LA), ranking member of the Commerce Committee, while echoing the concern that the bill was not necessary commended the legislative process by which the Republican majority reached out to the Democrats to reach a bipartisan agreement on the legislation and hoped that it was a precursor of how the Committee would function going forward. 
 

Federal Update -- Week of March 18, 2011 

House Energy and Commerce Committee approves H. Res. 37. Next Stop House Floor.   Tuesday on a 30-23 vote which broke along party lines the House Energy and Commerce Committee approved H.J. Res. 37. The resolution would rescind the Federal Communication Commission regulations on net-neutrality which were adopted in December. The resolution is expected to be scheduled for a vote by the full House soon and will then be sent to the Senate for its consideration where it faces an uncertain future.

Federal Update -- Week of March 11, 2011

House Subcommittee on Communications and Technology votes 15-8 to block FCC Net Neutrality Rules.   On Tuesday, March 8, 2011, the House Energy and Commerce Subcommittee on Communications and Technology held a hearing and markup of H.J. Res 37, which disapproves of the Federal Communications Commission's Open Internet Order approved by the Commission last December. The hearing had originally been scheduled for last week, but was postponed.   During the hearing the Committee heard from 6 witnesses who both supported and opposed the FCC Order.

In his opening statement, full Committee Ranking Member Waxman (D-Los Angeles) stated that even broadband providers did not support the proposed resolution and pointed to the letter submitted by Kyle McSlarrow of NCTA supporting the FCC's action and noted that AT&T was also in support of the FCC Order.  Anna Eshoo (D-Palo Alto) Ranking Member of the Subcommittee also pointed out that many of the business stakeholders were in support of the Commission's Compromise Order and that the Republican sponsored resolution would create uncertainty and was a threat to transparency and the economy. She went on to say that this effort was not just about net-neutrality but was a virus that was an attack on all government regulation.  Brian Bilbray(R-San Diego) a new member of the Committee spoke strongly in support of the Resolution.

While Committee Chairman Walden allowed the Democrats to offer and briefly discuss a series of amendments, he ruled all of them non-germane and did not allow a vote on any amendments. H.J. Res 37 was the approved on a 15-8 party line vote. It will next be heard in the full Energy and Commerce Committee on March 15, 2011.

Eshoo, Shimkus, and Doyle introduce legislation to allow greater FCC internal communications.   Representative Anna Eshoo (D-Palo Alto), the ranking Member of the House Communications and Technology Subcommittee, along with two of her colleagues, has introduced legislation that would allow more than two FCC Commissioners to meet privately outside of public meetings.

The bill would allow three or more Commissioners to meet for discussions as long as no actions were taken at the meeting and as long as a member of each political party was present at the discussion.  The FCC's current rules prohibit meetings of more than two Commissioners so that negotiations on items are held through staff members or emails.

FCC Commissioner Michael Copps came out in strong support of the legislation. Commissioner Copps has long said that this policy has stifled collaboration and delayed action by the Commission and that it could be the single most effective reform that would increase the effectiveness of the Commission.

Federal Update -- Week of March 4, 2011

The Subcommittee on Communications has scheduled a hearing on H.J. Res 37, disapproving the rules adopted by the FCC December 21, 2010, on regulation of the Internet and broadband industry practices. H.J. Res.37 was introduced on February 16th by Subcommittee Chairman Walden. The Resolution states "Congress disapproves the rule submitted by the Federal Communications ... and such rule shall have no force or effect."

Chairman Walden introduced the resolution pursuant to the Congressional Review Act under which Congress can nullify agency rules by passing a joint resolution of disapproval that requires only a simple majority in both chambers and is filibuster proof in the Senate. The rarely used process is subject to rigid rules relative to the time frame for action and as a result few measures have moved through Congress under this procedure.

The hearing was originally scheduled to take place on March 2 with 48 hours notice. In response to the short notice Full Committee Ranking Member Henry Waxman (D-Ca) and Subcommittee Ranking Member Anna Eshoo(D-Ca) sent a letter to the respective Committee Chairman calling the short notice a serious mistake and suggesting that the Committee should hold hearings to hear from those who supported the FCC's action and thinks the resolution is a serious threat to the economy.

This will be the second hearing the Committee has held on the subject. On February 16th all five FCC Commissioners testified about the adoption of their rules. 

The March 9th hearing is scheduled for 7:30 am (PST).  The witness list has not yet been finalized.

Federal Update -- Week of August 13

Congress in Recess until week of September 13th.  Congress is in recess until the week of September 13th.  If you are meeting with Members during the break and would like assistance with preparation for a meeting or CCTA staff to join you at a meeting please contact Jerry Yanowitz.

Federal Update -- Week of August 6

Senate Passes Disabilities Bill.  Thursday night the Senate passed S.3304, the disabilities legislation.  S.3304 would update the communications accessibility provisions of the 1996 Communications Act.  In late July the House approved its version of the legislation. The two bodies must now consider how to reconcile the differences in the two versions of the legislation.

Dingell tells FCC Chairman of Concern Over Third Way Proposal.  On Wednesday Congressman John Dingell (D-MI) in a letter to FCC Chairman Genachowski expressed his concern over the Commissions “third way” proposal for regulation of broadband services. Two days earlier the FCC Chairman had responded to a letter Dingell sent May 27th asking four questions about the “third way” proposal and the Commissions Notice of Inquiry on the subject.
 
In his letter this week Dingell said Genachowski’s two page letter had a “paucity of substantive responses” and “substantiates my fear that the Commissions proposed path with respect to the regulation of the broadband is based on unsound reasoning and an incomplete record, and thus fraught with legal risk.” He urged the Commission to abandon its reclassification effort and to work with Congress on legislation. In his May letter Dingell said that while he supported an open Internet and had voted in favor of net neutrality in the past that “for both legal and policy reasons, however, I have strong reservations with respect to the regulation of broadband access services.”
 
In addition, several other Members of Congress this week expressed concern over the direction the FCC was heading on broadband regulation including Senator Kay Hagan (D-NC), Representative Alan Grayson (D-FL.), and Representative Ben Chandler (D-KY) 
 
Senate Commerce Committee Holds Hearing on Online Privacy. Kerry to Propose Legislation.  Senator John Kerry (D-Mass) Chairman of the Commerce Subcommittee on Communications, Technology, and the Internet, Tuesday released a statement saying he would pursue on-line privacy legislation to give consumers more control over how their personal information is collected and distributed. In his press release announcing the legislation Kerry said “protecting the privacy of consumers online involves much more than the targeted advertising to which they are subjected.” Kerry went on to say that “we need new baseline standards for privacy protection that ensure that people’s identity is treated with the respect it deserves.” He said he would work with his colleagues in the Senate and House who have introduced legislation on the subject.
 
The announcement came as the full Commerce Committee was holding a hearing on “Consumer Online Privacy” Chaired by Committee Chairman Rockefeller (D-VA). In his opening statement Rockefeller expressed a need for protections for people who are not computer whizzes but average users. He said that the previous day he had a robust discussion about the issue with his children who took the position that consumers needed to take more responsibility for their own on line privacy than Rockefeller thought was appropriate. He said he left them his briefing material to read.
 
During their testimony before the Committee, Federal Trade Commission Chairman Leibowitz and FCC Chairman Genachowski outlined the steps their respective agencies were taking to protect on line privacy and their complementary regulatory roles. Leibowitz expressed his overall preference for opt-in over opt-out programs. Their opening statements and responses to questions were generally well received by the Senators present.
 
In addition, representatives from Apple, Goggle, and Face book testified on a second panel about their companies efforts in the privacy arena. In response to a question, Bret Taylor from Face book said there was a companywide commitment to privacy and that any information published on Face book could be deleted and would not reside anywhere on the Face book network, and that the company never sells data to third parties. In response to a question from Senator Rockefeller of how they would produce deleted information if there was a court order for that information Taylor said he was not sure.
 
All three companies said that cyber attacks were a serious daily problem they had to deal with. In response to a question from Senator Begich (D-Alaska) as to what they could do to improve their security, Dorothy Attwood from ATT said that while each company may have good practices there needed to be better coordination among companies as users move from company to company on the Internet.
 

Federal Update -- Week of July 23

Boucher, Terry Introduce bill to Reform Universal Service.  Representative Rich Boucher(D-Va) Chairman of the Subcommittee on Communications, Technology, and the Internet, and Lee Terry(R-NE) introduced the Universal Service Reform Act of 2010 which is intended to modernize the universal service fund . The legislation follows up on a discussion draft that Boucher released earlier. One of the goals of the proposed legislation is to use universal service funds to promote broadband deployment. Included in the bill are provisions that would reduce the support to incumbent phone companies in areas where at least 75% of the households have competitive choices and would require wireless carriers to bid for USF support.

Federal Update -- Week of July 2

House Subcommittee approves Disability Access Legislation.  The Commerce, Technology, and Internet Subcommittee Wednesday approved on a voice vote HR 3101, the 21st Century Communications and Video Accessibility Act. The bill would update the communications accessibility provisions of the 1996 Communications Act and is expected to be heard in the next several weeks in the full Committee.

Federal Update -- Week of June 25

Twenty-two Californians join industry colleagues from around the country in Washington.   Twenty-two Californians joined over 200 of their cable industry colleagues from around the country for the annual NCTA Key Contact Conference. The California delegation had fifty meetings on the Hill with most being with the Members themselves in addition to their telecommunications staff person. 

Some of the Members met with included Commerce Committee Chairman Henry Waxman (D-LA), and Commerce Committee Members McNerney (D-Pleasanton), Anna Eshoo (D-Palo Alto), and Lois Capps (D-San Luis Obispo). Judiciary Committee Members constituents met with included Howard Berman (D-LA), Brad Sherman (D-Sherman Oaks) and Adam Schiff (D-Glendale).

Federal Update -- Week of June 18

FCC Adopts Anticipated NOI.  On Thursday, June 17th, the Federal Communications Commission (FCC) adopted its anticipated Notice of Inquiry (NOI) to three approaches for regulating facilities based broadband services.  The NOI was adopted on a 3-2 party line vote.  There was little surprise in comments leading up to the NOI release or immediately following it.

Federal Update --Week of June 11

Senate Commerce Committee Approves S.2847 Commercial Advertisement Loudness Mitigation Act (CALM ACT).  On Wednesday, June 9, 2010, the Senate Commerce Committee, by voice vote, approved the CALM ACT, which requires the Federal Communications Commission to prescribe a standard to preclude commercials from being delivered at louder volume than the programs they accompany. The bill now goes to the Senate floor.

Federal Update -- Week of May 28

Waxman seeks information from Google on Street View.  House Energy and Commerce Committee Chairman Henry Waxman (D-Los Angeles) has joined the inquiry into whether Google violated privacy laws by gathering information from wireless networks.
 
In a letter sent Wednesday to Google CEO Eric Schmidt, Waxman asked a series of questions regarding the fleet of cars that Google uses to collect images for its Street View map application.  Waxman said Google may have violated federal law in its practices. Waxman wrote “We are interested in the nature of this data collection, the underlying technology your fleet of cars employed, the use of the information collected, and the impact it can have on consumer privacy.”
 
Waxman gave Google until June 7th to respond and was joined on the letter by committee ranking member Joe Barton (R-Texas) and Ed Markey (D-Mass.). 
 
Key Lawmakers seek to update 1996 Telecommunications Act.  On Monday, May 24th, four Key Democrats said they are seeking to update the federal telecommunication laws.
 
In a brief statement Senate Commerce Committee Chairmen John D. Rockefeller (D-W.Va) and Rep. Henry Waxman(D-Los Angeles) said they would “start a process to develop proposals” to update the 1996 Telecommunications Act.
 
Beginning in June the lawmakers plan to invite stakeholders to participate in a series of bi-partisan meetings to address issues related to federal oversight of the internet. Their offices plan to release a full list of topic areas and details on the process soon. 
 
Americans with Disabilities Act in Digital Age.  On Wednesday, May 26th, the Senate Commerce Committee Communications, Technology, and Internet Subcommittee held a hearing on “Innovation and Inclusion: The Americans with Disabilities Act (ADA) at 20”
 
In his opening statement, Committee Chairman John Kerry (D-Ma.) stated that the purpose of the hearing was to make sure that people with disabilities have full access to the benefits of the communications revolution that is taking place, and that while innovation by companies needs to be encouraged these companies need to make sure all Americans have access to new services and applications.

Federal Updates -- Week of May 21

Governor Sends letter to the FCC.  On May 11th Governor Schwarzenegger sent a letter to Federal Communications Commission Chairman Julius Genachowski expressing his concern over the Chairman’s proposal to change the regulatory classification of broadband.  In his letter to the Chairman, the Governor said “Your attempt to saddle broadband services with a new regulatory scheme will only serve to stifle investment in the wired and wire line broadband networks...”  The Governor concluded his letter by asking the Chairman to consider the impact that regulating the internet would have on California and the country.

Two Californians testify before House Committee on Broadband Adoption.  On Thursday Rachelle Chong, Special Counsel, Office of the Chief Information Officer, State of California and Rivkah Sass, Director, Sacramento  Public Library system were among the witnesses who appeared before the House Energy and Commerce, Subcommittee on Communications, Technology, and the Internet to speak about promoting broadband adoption. The hearing was the fourth in a series examining the recommendations of the Federal Communications Commission’s (FCC’s) National Broadband Plan.

Committee Chairman Waxman and Rockefeller send letter to Federal Communications Commission (FCC) urging response to court decision.  On Thursday, May 6, 2010, House Energy and Commerce Committee Chairman Henry Waxman (D-Los Angeles) and Senate Chairman John D. Rockefeller sent a letter to FCC Chairman Genachowski urging the FCC to use all its existing authority to protect broadband consumers and implement the National Broadband Plan. One of the options the Chairman raised was for the FCC to change the regulatory classification of broadband and they offered as Committee Chairman to provide a new regulatory framework through legislation if that was necessary. The Chairman’s letter was sent in response to the recent U.S. Court of Appeals decision in Comcast Corporation v. Federal Communications Commission.

Federal Upates - Week of April 30

National Broadband Plan: Competitive Availability of Navigation Devices. The House Energy and Commerce Subcommittee on Communications, Technology, and the Internet held a hearing on Thursday on “The National Broadband Plan: Competitive Availability of Navigation Devices.”  Witnesses included Kyle McSlarrow, President and CEO, National Cable & Telecommunications Association, Matt Zinn, Senior Vice President, TIVO, and Eric Shanks, Executive Vice President, Direct TV.

Federal Updates - Week of April 23

House Energy and Commerce Committee holds hearing on National Broadband Plan.  The House Energy and Commerce Subcommittee on Communications, Technology, and the Internet held a hearing Wednesday, April 22, 2010, on “The National Broadband Plan (NBP): Deploying Quality Broadband Services to the Last Mile.”

Federal Updates - Week of April 16

Federal Communications Commission (FCC) Chairman Genachowski testifies before Senate Commerce Committee.  On April 13, the Senate Commerce Committee held a hearing on the National Broadband Plan.  During the hearing, Senator Jay Rockefeller (D-W-Va.) , the Chairman of the Senate Commerce Committee expressed frustration with the FCC and Chairman Genachowski for its slow pace in implementing the recommendations in the National Broadband Plan.   Chairman Rockefeller noted that the report makes over 200 recommendations without an action plan and asked Genachowski what is priorities were.

Court Rules FCC Lacks Authority to Set Internet Rules.  The United States Court of Appeals for the District of Columbia Circuit (“D.C. Circuit”) has ruled that the Federal Communications Commission (“FCC”) lacks “ancillary” jurisdiction under the Communications Act to regulate the network  management practices of an Internet service provider (“ISP”).  The decision vacates an order adopted by the FCC that found that an Internet provider had violated the FCC’s “Internet Policy Statement” by interfering with the use of peer-to-peer networking applications on their broadband network. The court’s decision calls into question the legal approach taken by the FCC regarding its authority to exercise jurisdiction over Internet and broadband and will likely complicate the FCC’s efforts to regulate network management and promote “network neutrality.” The FCC released a statement shortly after the release of the D.C. Circuit decision indicating that they intended to find a way to regulate broadband.   

Hearing Held on the Federal Communications Commission (FCC) National Broadband Plan.  On Thursday, March 25th the House Energy and Commerce Subcommittee on Communications, Technology and the Internet held a hearing on the FCC National Broadband Plan.  Appearing before the Committee were all five Commissioners of the FCC.  Below is a summary of the opening statement, comments, and questions of the California Members of the Committee.

Congress has been on its State and District Presidents Day Work Period this week. During the past week CCTA and its Members met with several Members of Congress while they were home.  Next week Congress will return to Washington and several hearings relevant to cable have been scheduled.

A couple of Members expressed concerns about the CALM Act, particularly its impact on small cable television operators. Eshoo said these were last minute concerns that had not been raised during any debate or discussion of the bill and that she thought that the two one year waivers available in the legislation should address the issues of smaller operators. Eshoo did say she would continue to work with those concerned about the legislation as it moved forward for consideration at the full committee level

Federal Update 9-25-09

Matsui introduces legislation to help low income Americans access broadband.  On Thursday, Representative Doris Matsui (CA-05) a member of the Energy and Commerce Subcommittee on Communications, Technology, and the Internet, introduced legislation to expand the Universal Service Fund’s (USF) Lifeline Assistance program for expanded nationwide broadband adoption. The bill, entitled the Broadband Affordability Act of 2009, directs the FCC to establish a broadband program that provides assistance for low income Americans to subscribe to broadband service.

As she had at several Committee hearings, Matsui pointed out in her press release that while 96% of Californian’s have access to broadband, only 58% of Californians earning under $40,000 have subscribed to an Internet service at their home, while 97% of those earning over $80,000 subscribed to a service.

Matsui’s press release also stated that “In today’s economic climate, more and more hardworking Americans simply cannot afford to pay up to $60 a month for broadband services.”  The Matsui bill would allow USF funds to be used to offer discounted Internet service.

 The bill will be referred to the House Committee on Energy and Commerce. CCTA will work with the author as the bill moves forward in the process.

Satellite Television Modernization Act of 2009.  The Senate Judiciary Committee Thursday passed by voice vote S.1670, Satellite Television Modernization Act of 2009. The legislation included an agreement that was reached by the content and cable industry related to the phantom signals.  In his statement following the Committee vote NCTA President Kyle McSlarrow said, “We strongly support the bill’s effort to promote continuity and to include important language that resolves the so-called phantom signal issue.”  An amendment to the bill directed the copyright office to report within a year on how to phase out the compulsory license was adopted unanimously.   Senator Feinstein (D-CA) a member of the Committee, said she was happy to see the study of the compulsory license included and wanted to work with the Chairman to see that the study did not favor any one alternative. The bill will next be taken up by the Commerce Committee in the Senate.

Satellite Home Viewer Update and Reauthorization Act (SHVURA).  This week the House Judiciary Committee passed the Satellite Home Viewer Update and Reauthorization Act (SHVURA) on a strong bi-partisan vote of 34-0.

 CCTA and its Members worked closely with Members of the Judiciary Committee over the last couple of months to communicate our concerns over the "phantom signal" issue and its potential impact on consumers. The industry believes the bill as approved by the Committee reflects a fair compromise.

Howard Berman stated that he felt the legislation should deal with the phasing out of the compulsory license and that neither the cable or satellite industries were nascent industries and that the compulsory license which in his view should be eliminated had in fact been expanded over the years. He said that while an elimination of the compulsory license would not be easy, these negotiations should be handled by the free market. He pointed out that many such negotiations between programmers and operators are now handled by the marketplace. He said that this five year extension of the compulsory license should be the last. CCTA's worked closely with Mr. Berman’s office in addition to others explaining the industries concerns with any changes to the Chairman’s bill which was a carefully crafted compromise. 

Congressman Issa echoed many of Mr. Berman’s concerns and offered and then withdrew an amendment that would have reauthorized the program for only two years.

House Commerce Committee's Subcommittee on Communications;  FCC Oversight Hearing.  On Thursday the House Commerce Committee's Subcommittee on Communications held an FCC oversight hearing with all five FCC Commissioners. Below are selected comments made by California Members during their opening statements:

• Commerce Committee Chairman Waxman.  Waxman stated that he had asked Mr. Markey to add him as a co-sponsor of HR 3458 the net neutrality legislation introduced by Mr. Markey and Ms. Eshoo. He stated that he did not think net neutrality impeded innovation nor that net neutrality and strong copyright protection were mutually exclusive. He stated that President Obama had made an open internet a "vital part of his platform" and that he supported that. He also said the Commission should consider ways to expedite construction of additional wireless broadband.
• Mr.McNerney.  McNerney stated he had several areas of concern. The first was the special access market and he wanted to make sure the Commission went forward with a balanced policy. He also said he was interested in the amount of time the FCC gave for comments in its various proceedings. Finally he said cyber security and net neutrality were areas of interest to him.
• Ms. Matsui.  Matsui said the urban underserved should be a priority for broadband and that the affordability of broadband needed to be enhanced. She repeated that she was going to introduce legislation that would expand the universal service fund to include broadband.
• Ms. Eshoo.  Eshoo said we need high speeds for broadband that rank with world class standards. She also said we needed a truly competitive environment not one where "the big fish eat the small fish"

U.S. House Commerce Subcommittee on Communications, Technology, and the Internet.  On Thursday, September 10th the U.S. House Commerce Subcommittee on Communications, Technology, and the Internet held an oversight hearing on the broadband loan and grant program created by the Stimulus Act. The hearing lasted approximately 3 hours including a break in the middle for a series of votes on the floor. The two witnesses were Rural Utility Services (RUS) Administrator Jonathan Adelstein and the National Telecommunications and Information Administration (NTIA) Assistant Secretary for Communications andInformation, Lawrence Strickling. 

Thirteen Members of the Subcommittee participated in the hearing. The four Californians in attendance were Full Committee Chairman Henry Waxman, Congressman Jerry McNerney, Congresswoman Doris Matsui, and Congresswoman Anna Eshoo. 

Chairman Boucher in his opening remarks and subsequent questions expressed his concerns about several aspects of the way the first round has evolved. First, the Chairman was concerned that that there needed to be increased access to grant funding for rural areas that were excluded from the first round due to the definition of remote  which has been defined as further than 50 miles from a town of 20,000 or more. The Chairman held up a map of the country which showed that most of the Eastern United States is excluded under the agencies definitions while large portions of the West outside of California seemed eligible for funds. Another of the Chairman’s concerns was that the current process forces applicants who are applying to both agencies to first go through RUS before the NTIA could make an award. He expressed concern that if RUS rejected an applicant that timing issues might put those applicants at a disadvantage relative to other NTIA applicants. The Chairman also expressed a concern that came from his home state of Virginia that they had not been expecting all the Virginia applications that had been forward to the State by NTIA and RUS and inquired what the expectations were of the States by the two federal agencies. In subsequent statements and questions many of the other Committee Members expressed similar concerns.

Full Committee Chairman Henry Waxman complimented both NTIA and RUS for issuing the application guidelines in a timely manner. He said that while there had been  skeptics who said that Congress had placed so many conditions on the funds that there would not been enough applicants the fact that over 2200 applications were submitted with requests for over $28 billion dollars made it clear that the public interest obligations "did not stifle applicants." At the end of his opening statement the Chairman did note that the agencies should be ready "to receive constructive criticism from both sides of the aisle." The Chairman did not ask questions after the witnesses’ testimony. 

Congresswoman Doris Matsui said that broadband adoption was a great problem which in most cases was related to income. She pointed out that while the 96% of Californians had access to broadband and over 80% of wealthier Californians had broadband in their homes that the numbers dropped dramatically when it came to poorer Californians and that only 58% of Californians who make less $40,000 have access to broadband.  She said we needed to address the issue "of affordability for all" and that she would soon be introducing legislation to expand universal service fund to include affordable lifeline broadband. She emphasized that urban low income populations should be considered "underserved" in regards to broadband grants. Matsui also noted that particularly in this economic climate that many people rely on "anchor institutions" such as schools and libraries for broadband access and that these institutions need to be supported. 

Congresswoman Anna Eshoo agreed with Representative Matsui that the community anchor institutions need to be supported. In both her opening statement and subsequent questions Eshoo emphasized that "a priority should be advanced capability and speed." She expressed concern that the rules do not "encourage higher speeds in rural areas." She expressed concern over the process by which incumbents would challenge applicants and did not want that process used to stifle competition.

Strickling also announced that the grants for broadband mapping would start to be announced in September. He also said that the next two rounds of grants could be merged into one thereby saving administrative expenses. He also assured the Committee that they would be hiring enough people to make sure they could do proper oversight to make sure there was not waste, fraud or abuse in the program. In response to Representative Matsui's question on low income he said a big focus was on adoption and that an area with less than 40% adoption was consider underserved. 

Adelstein said those who were unsuccessful in the first round would be able to reapply in the next round. Both he and Strickling acknowledged the Chairs and other Members concerns about the definition of rural and said it would be looked at prior to the next round of applications. They also said that they were sharing applications with the respective states to get the states view on overall priorities for the applications filed but not specific comment on individual applications. A state would also be free not to comment if that was its desire.

The House Small Business Committee plans to hold a broadband hearing, tentatively scheduled for September 23rd. This is planned to be an NTIA/RUS Oversight hearing with a focus on small business concerns with the BTOP and BIP funding and application process. Two panels are planned. Lawrence Strickling (NTIA) and Jonathan Adelstein(RUS) would testify on the first panel and the second panel would be comprised of small business executives who have submitted applications or plan to.

FCC Chairman Comes to California.  Newly Confirmed FCC Chairman Julius Genachowski will be in Palo Alto Monday and is scheduled to appear with Representative Anna Eshoo to promote the increased use of broadband which is a top priority of both officials. That evening the Chairman will have dinner with key technology leaders and others including representatives of the cable television industry.

Representatives Markey and Eshoo unveil net neutrality bill.  According to the Congressional Daily as reported in their publication the Tech Daily Dose Representatives Markey and Eshoo introduced net-neutrality legislation (H.R. 3458) on Friday that would prevent internet service providers such as telephone and cable companies from interfering with Web content that passes through their pipes. The publication reported that the bill would essentially bar ISP's from using the claim of network management to impose their own priorities on data traffic based on financial arrangements or other considerations. 

Congress is breaking for its Summer District Work Period and is scheduled to return September 3rd. CCTA may ask you to set up meetings with select Members of the Judiciary Committee during this period to discuss the Satellite Home Viewer Digital Television Act.

House Judiciary Committee Discussion Draft on SHVERA. The House Judiciary Committee has decided not to mark-up the Satellite Home Viewer Digital Television Act (SHVERA) of 2009 prior to the August Congressional recess. The draft of the bill has several areas which were problematic for the cable television industry particularly as it relates to “phantom” signals. 

CCTA sent out information to it Members who serve areas represented by Members of the Judiciary Committee. CCTA staff contacted the offices of California Judiciary Committee Members to inform them of our concerns. We may be asking Judiciary Committee Key Contacts to set up district meeting during the August recess period. In the next week we should be furthering additional information to you in preparation for further activity. 

July 17, 2009
Federal Update

House Judiciary Committee Releases Discussion Draft on SHVERA.  On Tuesday, House Judiciary Committee Chairman John Conyers released a discussion draft on the Satellite Home Viewer Television Act (SHVERA). The Chairman plans to soon introduce a formal bill and intends to mark-up the bill as early as July 29th. NCTA has sent a letter to the Chairman in response to the discussion draft pointing out areas of concern in the draft that include, the need to resolve the phantom signal issue; giving any “interested party” the right to engage in intrusive “audits” of the highly sensitive financial data on  each cable operator; requiring cable operators to pay royalties for each digital “multicast” stream carried at the same level established for a broadcaster’s primary programming channel bases its royalty payments; and  “phase out “of  the cable compulsory license if a broadcaster certifies that it has the rights needed for a “single source” license..
 
If you do not have a copy of the NCTA letter to the Chairman and would like a copy, please contact Jerry Yanowitz or Toni Irwin.

July 10, 2009
Federal Update

Point Smart Click Safe.  On Wednesday a diverse coalition of technology companies, including the cable television industry, along with educators, parents groups, and researchers announced a comprehensive set of recommendations that companies involved with the Internet can adopt as best practices to help keep children safe when they are on line. The coalition was joined by U.S. Representatives Debbie Wasserman Schultz(D-FL) and John Shimkus(R-IL.) who spoke as part of the group’s report.  In addition to these two Congressional speakers, eleven other Members of Congress made statements of support including two Californians, Mary Bono Mack (R-Palm Springs) and George Radanovich (R-Fresno). The complete report along with the Congressional statements can be found at www.pointsmartreport.org and www.ncta.com

U.S. House Commerce Subcommittee on Communications, Technology, and the Internet.  On Thursday, September 10th the U.S. House Commerce Subcommittee on Communications, Technology, and the Internet held an oversight hearing on the broadband loan and grant program created by the Stimulus Act. The hearing lasted approximately 3 hours including a break in the middle for a series of votes on the floor. The two witnesses were Rural Utility Services (RUS) Administrator Jonathan Adelstein and the National Telecommunications and Information Administration (NTIA) Assistant Secretary for Communications andInformation, Lawrence Strickling.

Chairman Boucher in his opening remarks and subsequent questions expressed his concerns about several aspects of the way the first round has evolved. First, the Chairman was concerned that that there needed to be increased access to grant funding for rural areas that were excluded from the first round due to the definition of remote  which has been defined as further than 50 miles from a town of 20,000 or more. The Chairman held up a map of the country which showed that most of the Eastern United States is excluded under the agencies definitions while large portions of the West outside of California seemed eligible for funds. Another of the Chairman’s concerns was that the current process forces applicants who are applying to both agencies to first go through RUS before the NTIA could make an award. He expressed concern that if RUS rejected an applicant that timing issues might put those applicants at a disadvantage relative to other NTIA applicants. The Chairman also expressed a concern that came from his home state of Virginia that they had not been expecting all the Virginia applications that had been forward to the State by NTIA and RUS and inquired what the expectations were of the States by the two federal agencies. In subsequent statements and questions many of the other Committee Members expressed similar concerns.

Full Committee Chairman Henry Waxman complimented both NTIA and RUS for issuing the application guidelines in a timely manner. He said that while there had been  skeptics who said that Congress had placed so many conditions on the funds that there would not been enough applicants the fact that over 2200 applications were submitted with requests for over $28 billion dollars made it clear that the public interest obligations "did not stifle applicants." At the end of his opening statement the Chairman did note that the agencies should be ready "to receive constructive criticism from both sides of the aisle." The Chairman did not ask questions after the witnesses’ testimony.

Congresswoman Anna Eshoo agreed with Representative Matsui that the community anchor institutions need to be supported. In both her opening statement and subsequent questions Eshoo emphasized that "a priority should be advanced capability and speed." She expressed concern that the rules do not "encourage higher speeds in rural areas." She expressed concern over the process by which incumbents would challenge applicants and did not want that process used to stifle competition. 

Congressman McNerney made only a brief opening statement about the process and did not ask questions following the witness’s testimony. 

During both their testimony and subsequent answering of questions the two witnesses seldom disagree with each other and emphasized the close cooperation between their agencies. In response to questions they emphasized that 768kbps was a floor for speed and that additional points were would be given for higher speeds. Strickling said that the 768kbps was used so that if 3G was the only option for an area that it could at least be considered for funding. Regarding challenges to applications he said that a disagreeing party would have to provide substantive information to rebut information in an application and that the final decision on any application would rest with NTIA and RUS. Adelstein also stated that on challenges the agencies had created unprecedented transparency which would allow comments on applications from a wide variety of people and institutions. 

Strickling also announced that the grants for broadband mapping would start to be announced in September. He also said that the next two rounds of grants could be merged into one thereby saving administrative expenses. He also assured the Committee that they would be hiring enough people to make sure they could do proper oversight to make sure there was not waste, fraud or abuse in the program. In response to Representative Matsui's question on low income he said a big focus was on adoption and that an area with less than 40% adoption was consider underserved.

Adelstein said those who were unsuccessful in the first round would be able to reapply in the next round. Both he and Strickling acknowledged the Chairs and other Members concerns about the definition of rural and said it would be looked at prior to the next round of applications. They also said that they were sharing applications with the respective states to get the states view on overall priorities for the applications filed but not specific comment on individual applications. A state would also be free not to comment if that was its desire. 

Boucher closed the hearing by reiterating his some of his concerns and stated that the subcommittee would hold at least one more hearing. 

The House Small Business Committee plans to hold a broadband hearing, tentatively scheduled for September 23rd. This is planned to be an NTIA/RUS Oversight hearing with a focus on small business concerns with the BTOP and BIP funding and application process. Two panels are planned. Lawrence Strickling (NTIA) and Jonathan Adelstein(RUS) would testify on the first panel and the second panel would be comprised of small business executives who have submitted applications or plan to.

Federal Update 9-18-0

Federal Update -- Week of March 12, 2010

 Two California House Commerce Committee Members Introduce Legislation.  This week two California Members of the House Commerce Committee introduced pieces of legislation. Representative Anna Eshoo (D–Palo Alto) introduced H.R. 4829 to "further upgrade public safety answering point capabilities and related functions in receiving 9-1-1 calls, and to support in the construction and operation of a ubiquitous and reliable citizen activated network."    Representative McNerney (D – Pleasanton) introduced H.R. 4909 "to provide greater technical resources to FCC Commissioners." The text of either bill is not yet available. Both bills have been referred to the House Commerce Committee.