House of Representatives Commerce Committee

The House Communications and Technology Subcommittee, chaired by Rep Greg Walden (R-OR), held a hearing examining the Improving Rural Call Quality and Reliability Act (H.R. 2566), introduced by Rep David Young (R-IA). Members examined the persistent problems many Americans living in rural areas have when it comes to receiving long distance or wireless calls on their landline telephones. Despite attempts made by the Federal Communications Commission to address the lingering issues problems still persist. H.R. 2566 would require intermediate providers to register with the FCC and comply with the service quality standards set by the agency.

Commerce Committee Chairman Fred Upton (R-MI) and Ranking Member Frank Pallone, Jr. (D-NJ) sent a letter to Federal Communications Commission Chairman Tom Wheeler urging the FCC to take action to ensure that the United States maintains its global leadership in mobile broadband distribution and innovation. The committee leaders applaud Chairman Wheeler and the FCC for taking action in the Spectrum Frontiers proceeding and urge the commission to “adopt Spectrum Frontier service rules that will enable rapid investment and innovation in these [higher frequency] bands.”

Reps Upton and Pallone noted, “In the US these bands will pave the way for investment and innovation in both licensed and unlicensed offerings, providing consumers with much faster and more responsive broadband, and delivering connectivity to many more devices including in the developing Internet of Things market.” The bipartisan committee leaders also urged the FCC to take steps to improve the siting process in order for 5G to be a success, writing, “5G will involve more densified wireless networks, with smaller antennas that have a more limited physical presence and lesser impact. ... The FCC, therefore, should promptly complete its nationwide programmatic agreement proceeding to eliminate unnecessary review processes for collecting small wireless antennas.”

This interim report reviews the veracity of recent allegations of waste, fraud, and abuse in the Lifeline program. Additionally, this report seeks to examine what has been done – and what more can be done – by the Federal Communications Commission and the Universal Service Administrative Company (USAC) to address waste, fraud, and abuse. This review has included requests for information from USAC, a review of relevant documents, communications, and briefings with numerous Lifeline experts, including: non-confidential communications with officials from the FCC’s Wireline Bureau, Wireless Bureau, Enforcement Bureau, Office of the General Counsel, and Office of the Inspector General; officials from USAC; and representatives from five companies that offer Lifeline service. The following are preliminary findings:

• The evidence does not show $500 million of abuse of “IEH Overrides.” The evidence does confirm that a key assumption underlying this allegation—that every IEH Worksheet resulted in a duplicate phone being fraudulently subsidized—is wrong.
• Lack of adequate safeguards in the 2008 Lifeline expansion created the environment that led to increased waste, fraud, and abuse.
• Since 2010 the FCC and USAC have reined in a billion dollars in waste, fraud, and abuse. Nonetheless, more can be done.
• Lifeline continues to provide essential service to low-income Americans.
• The report makes the following recommendations:
• USAC should continue targeted audits and In-Depth Data Validations (IDVs).
• The FCC should periodically review Lifeline program data for new trends.
• The FCC and USAC should work to ensure that the National Verifier implementation adequately addresses misuse of eligibility documentation as seen in the Total Call Mobile case.
• The FCC and USAC should review the use of the IEH worksheet and trends related to its use.
• The FCC should consider possible revisions to program safeguards.
• The FCC Office of General Counsel and the FCC Office of Inspector General should continue the investigation into these allegations.

The House Commerce Committee has eight questions about universal service it would like input on as it considers a rewrite of telecommunications law:

1. How should Congress define the goals of the Universal Service Fund? Should Congress alter or eliminate any of the six statutory principles, codify either of the principles adopted by the Federal Communications Commission, or add any new principles in response to changes in technology and consumer behavior?
2. Universal service was created to fund buildout in areas incapable of economically supporting network investment. How should our policies address the existence of multiple privately funded networks in many parts of the country that currently receive support?
3. What is the appropriate role of states and state commissions with respect to universal service policy?
4. What is the appropriate role of the Federal-State Joint Board on Universal Service in a broadband, IP-enabled, largely interstate world? What is the appropriate role of related joint boards, such as the Federal-State Joint Board on Separations or the Federal-State Conference on Advanced Services?
5. The Universal Service Fund is one of several federal programs that support buildout of communications facilities. Are current programs at other federal agencies, like the National Telecommunications and Information Administration (which oversaw the Broadband Technology Opportunities Program) or the Rural Utility Service (which oversees lending programs and oversaw the Broadband Initiatives Program) necessary?
6. How can we ensure that the Universal Service Fund is sufficiently funded to meet its stated goals without growing the fund beyond fiscally responsible levels of spending?
7. Are all of the funds and mechanisms of the current Universal Service Fund necessary in the modern communications marketplace?
8. In lieu of the current support mechanisms, could any of the programs be better managed or made more efficient by conversion to: a. A state block grant program; b. A consumer-focused voucher program; c. A technology-neutral reverse auction; or, d. Any other mechanism?

The committee requests input by September 9, 2014.

Federal Communications Commissioner Michael O’Rielly’s call for increased transparency and better process at the commission could not be more timely.

The FCC’s last few open meetings have been marred by bad process and insufficient sharing of information among the commissioners -- underscoring the need for reform.

With bipartisan support, the House approved FCC process reform legislation in March. But despite its unanimous passage through the House, this commonsense legislation has hit a roadblock in the Senate. In both the FCC and the Senate, the American people deserve better -- the time for reform is now.

House Commerce Committee Leaders opened an investigation into the Federal Communications Commission’s decision-making process ahead of granting a waiver of auction rules to Grain Management. The leaders have requested documents from the commission related to the following questions by August 15, 2014:

• Copies of all draft versions of the order granting Grain Management a waiver of the AMR (attributable material relationship) rule.
• All communications from November 4, 2013, to present between Grain Management and the Commission.
• All communications from November 4, 2013, to present between or among the members or employees of the Commission relating to Grain Management, the application of the AMR rule, or the Commission’s designated entity rules, or to the grant of the waiver of the AMR rule for Grain Management. This request includes all communications regarding the use of delegated authority, options memos, and timelines for Commission action.
• All materials maintained or produced by the FCC’s Electronic Chairman’s Lifecycle Agenda Tracking System (eCLAS) related to the Grain Management waiver.
• All written and electronic communications from April 25, 2006, to present between Grain Management and the Commission regarding the FCC's auction rules or procedures.
• All documents created by the FCC or submitted to the Commission on or after April 25, 2006, relating to the AMR rule.

The House of Representatives approved bipartisan legislation to reauthorize the nation’s satellite television law to ensure that millions of satellite subscribers continue to receive broadcast programming.

H.R. 4572, the Satellite Television Extension and Localism Act (now christened the STELA Reauthorization, or STELAR, act) of 2014, which was approved by voice vote, reauthorizes the communications and copyright provisions of existing law for five years and makes a number of narrow reforms to better meet the needs of today’s video marketplace.

The legislation is a joint product of the House Commerce and Judiciary Committees. Authored by Upton, Walden, full committee Ranking Member Henry A. Waxman (D-CA), and Subcommittee Ranking Member Anna Eshoo (D-CA), H.R. 4572 makes the following targeted reforms to the video marketplace:

• Prohibits joint retransmission consent negotiations;
• Provides broadcasters additional time to unwind business arrangements deemed no longer in the public interest by the FCC through its recent changes in how it calculates ownership interests under the media ownership rules;
• Eliminates the “sweeps” week prohibition on signal change; and
• Eliminates the set-top box integration ban.

The Subcommittees on Communications and Technology and Health, chaired by Reps Greg Walden (R-OR) and Joe Pitts (R-PA), respectively, have scheduled a joint hearing for July 17, 2014.

The hearing is entitled “21st Century Technology for 21st Century Cures.” Witnesses to be announced.

“Remarkable advancements in technology are transforming health care as we know it. Companies embracing telemedicine and mHealth solutions can bring patients, researchers, and doctors together in ways we never could have imagined just a decade ago. Learning how we can update our laws to foster new technologies and harness the power of these innovations to accelerate and strengthen the discovery, development, and delivery cycle of new cures and treatments is exactly what our #CommActUpdate and 21st Century Cures initiatives are all about,” said full committee Chairman Fred Upton (R-MI). “The collaboration of the Health and Communications and Technology Subcommittees allows for an exciting conversation about what’s next and how we can best leverage our nation’s technological leadership to improve our health care system.”

House Commerce Committee Chairman Fred Upton (R-MI) released a report on the accomplishments of the committee in the first six months of 2014.

The mid-year review continues the tradition of status reports issued throughout the tenure of Chairman Upton on the committee’s legislative and oversight work under the current Republican majority. The updates are part of the committee’s effort to increase transparency and ensure the public has easy and ready access to the panel’s work.

The Communications and Technology Subcommittee, led by Chairman Greg Walden (R-OR) and Vice Chairman Bob Latta (R-OH), is a hub of activity related to job creation and economic growth.

The communications sector remains an economic bright spot, attracting both investment and innovation as new technologies translate to new jobs and entirely new industries. As part of its effort to explore and foster these opportunities, the subcommittee explored a range of issues from media ownership to oversight designed to protect the freedom of the global Internet, which is itself a major driver of economic growth in the US and around the world.

House Communications and Technology Subcommittee Chairman Greg Walden (R-OR) responded to Federal Communications Commission Chairman Tom Wheeler’s latest proposal regarding the Universal Service Fund’s Schools and Library and Program, expressing his support.