House lawmakers cautioned against handing over Internet governance regulations to the ITU, while affirming their commitment to the multistakeholder model, in an essay on the Re/code site last week. House Commerce Committee Chairman Fred Upton, R-Mich., ranking member Henry Waxman, D-Calif., and member Eliot Engel, D-N.Y., signed the essay, along with House Foreign Affairs Committee Chairman Ed Royce, R-Calif. “Many countries joined the U.S. in recognizing that multi-stakeholder governance will ensure the resilience of the Internet, and enable commerce and economic development,” it said. “They are increasingly seeing the self-interest and incentives of resisting an ITU-centric model, because it could empower countries to censor the free flow of information and suppress dissent, as well as stifle broadband investment in both e-commerce and network infrastructure.”
Claims that reclassifying broadband would mean new state and local taxes are “baloney,” Sen. Ron Wyden, D-Ore.,wrote in a blog post Thursday. The Internet Tax Freedom Act “broadly defined the term ‘Internet access,’” making it “illegal to tax the internet,” Wyden wrote. “Under Title II or otherwise, the FCC could define the Internet as a series of tubes and ITFA would still prohibit taxes.” The grandfathering clause in ITFA “will not allow cities to suddenly open the Internet up to telecom taxes,” Wyden wrote. A Progressive Policy Institute study said reclassification would lead to $15 billion more nationally in state and local taxes (see 1412150053). PPI Senior Fellow Hal Singer, who co-wrote the study with Brookings Institution Senior Fellow Robert Litan, said Friday that IFTA does shield broadband from general sales taxes, and he has reduced the annual estimated increase to $11 billion. “Perhaps Wyden is missing the larger point: Since state-based telecom-based FEES are already on the books, reclassifying broadband as telecom makes it EASIER for states to apply those same fees to broadband,” Singer emailed. “Rather than having to pass new legislation, an unelected bureaucrat in some local or state tax office can simply grab a new source of revenues for taxation, citing the FCC’s new definition of broadband.” The study didn't include the grandfathering issue, Singer said. NCTA, which has run ads warning of tax and fee increases under a Title II net neutrality approach, supports ITFA and its permanent extension, an association spokesman said. "ITFA does provide protection from many state and local taxes. However it does not close the door on the full range of taxes and fees -- including Universal Service Fund fees – that could be imposed if broadband were reclassified as a telecommunications service," the spokesman said.
Six new subcommittees, including the Information Technology Subcommittee, will be added to the House Oversight Committee in the next Congress, incoming committee Chairman Jason Chaffetz, R-Utah, said in a news release Wednesday. Rep.-elect Will Hurd, R-Texas, will chair the IT subcommittee, the release said. Hurd is a former Central Intelligence Agency official, according to his website. “Each of the incoming Chairs brings valuable knowledge and experience to the subcommittees they have been selected to lead and I am grateful for their commitment to bringing vigorous oversight to the federal government,” Chaffetz said in the release. The IT subcommittee will focus on “IT procurement, Cybersecurity, IT infrastructure, emerging technologies, and intellectual property, among other issues,” the release said.
The Senate approved FCC Commissioner Mike O’Rielly’s renomination for a full five-year term as commissioner Tuesday before adjourning the 113th Congress. The term runs through June 30, 2019. Confirmation was accomplished through a bigger year-end package of nominees by unanimous consent, as expected (see 1412160048). O’Rielly, a Republican, “has proven to be an engaged, thoughtful, and principled member of the Commission,” Senate Commerce Committee ranking member John Thune, R-S.D., said in a statement. “I expect he will continue to be a passionate advocate for both consumers and a free market.” FCC Commissioner Ajit Pai, the agency’s other Republican member, congratulated O’Rielly, saying he “has proven to be a hardworking, principled advocate for free markets, the rule of law, and the consumer interest.” Industry leaders also congratulated O’Rielly. “Exceptionally honored to be confirmed for a new term,” O’Rielly tweeted. “Much work ahead.” Commissioner Jessica Rosenworcel's term is next to expire on June 30.
The $1.1-trillion FY2015 omnibus funding package Congress approved “reflects investments in many of our Committee’s important programs that are vital to our nation,” said Senate Commerce Committee Chairman Jay Rockefeller, D-W.Va., in a statement Tuesday. He voted for the bill Saturday. A Rockefeller news release flagged the funding it secured for education in science, technology, engineering and math and the funding for several National Institute of Standards and Technology programs. “Rockefeller helped increase funding for NIST’s Manufacturing Extension Partnership (MEP); sustained funding for NIST’s Advanced Manufacturing Technology Consortia; and continued funding for forensic science programs and research at NIST,” the news release said.
The FCC’s ongoing AWS-3 spectrum auction is “the most successful wireless spectrum auction ever, a sign of the tremendous potential that stands to be unleashed as a result of these steps,” the White House said Tuesday. Chairman of the Council of Economic Advisers Jason Furman wrote a blog post focused on the economy in 2014 and mentioned the auction when describing how the Obama administration seeks to catalyze technological innovation. “The President signed into law the most sweeping patent reform in decades, made significant investments in research and development, and will nearly double the amount of wireless spectrum available for mobile broadband,” Furman said.
Sen. John Thune, R-S.D., said Commerce Committee lawmakers soon will start determining specifics of Commerce subcommittees. He will chair the Commerce Committee in the next Congress and told reporters at the Capitol Tuesday that sorting out those committee details will dominate much of his coming two weeks. “With Republican and Democrat senators now named to the Commerce Committee, the subcommittee selection process will begin, enabling the committee to be formalized as early as the first full week of January, after the 114th Congress convenes,” Thune said in a statement Monday. A news release included all the Republicans and Democrats in the 114th Congress (see 1412150052), and Thune cited Internet policy and consumer protection among his priorities. He told us he sees a strong role for the Communications Subcommittee (see 1412120057).
The Senate signed off on the Consolidated and Further Continuing Appropriations Act, 2015 (HR-83) in a 56-40 vote Saturday night. The House had passed the omnibus funding package Thursday. It would slate money for 11 of the 12 parts of the government through FY2015, including $340 million for the FCC. Funding had initially expired Thursday, then Saturday and now lasts through Wednesday. Congress has passed two short-term continuing resolutions to keep the government funded. The Senate vote was not along party lines, with 31 Democrats and 24 Republicans backing the measure and 21 Democrats and 18 Republicans opposing it. Four senators didn't vote, and one independent voted for it while one opposed it. The package includes several telecom provisions (see 1412100041) and would extend the Internet Tax Freedom Act for one year, compel a report from the FCC about call completion problems and force the agency to clarify the waiver process for broadcaster joint sales agreements. The White House tentatively backs the package but the president hadn't yet signed it as of our deadline.
Antitrust law can work “in tandem” with FCC rules to protect net neutrality, FCC Chairman Tom Wheeler countered in a Dec. 9 letter to House Judiciary Committee Chairman Bob Goodlatte, R-Va. Goodlatte had written in opposition to net neutrality rules. “We must take the time to get the job done correctly, once and for all,” Wheeler said, stressing that the FCC is keeping multiple options of legal authority on the table.
Mobile Future Chairman Jonathan Spalter congratulated Congress in a news release Monday for extending the Internet Tax Freedom Act through Sept. 30. “Congress must now bring certainty to consumers early next year and pass legislation to keep Internet access services free from state and local taxes permanently as well as ensure that e-commerce is not burdened by discriminatory and unfair taxes,” said Spalter. The ITFA extension was included in Congress’ bicameral funding bill, which passed Saturday.