Tech Law Journal Daily E-Mail Alert
May 21, 2010, Alert No. 2,086.
Home Page | Calendar | Subscribe | Back Issues | Reference
House to Take Up Tax Bill with Tech Provisions

5/20. Rep. Steny Hoyer (D-MD), the House Majority Leader, stated in a release on May 20, 2010, that "The American Jobs, Closing Tax Loopholes and Preventing Outsourcing Act will come to the House Floor for a vote next week".

The title of this bill is not helpful in understanding its technology related provisions. This is a huge bill that mostly addresses tax issues. It includes numerous tax and non-tax related technology provisions, including satellite television legislation and an extension of the R&D tax credit.

Title V of the Senate version of this bill is also known as the "Satellite Television Extension and Localism Act of 2010". This bill, among other things, extends the compulsory copyright license for satellite television providers, which is codified at 17 U.S.C. § 119.

Section 131 of the Senate version of this bill would extend the research and development tax credit for one year, through December 31, 2010. It is codified at 26 U.S.C. § 41. For decades the Congress has not enacted a permanent R&D tax credit. Rather, it has enacted a series of short term credits, often after the expiration of the previous credit provision.

Section 143 of the Senate version of this bill would extend the special provisions for contributions of computer technology and equipment for educational purposes for one year, through December 31, 2010. It is codified at 26 U.S.C. § 170(e)(6).

Section 145 of the Senate version of this bill would extend the special expensing provisions for certain film and television productions for one year, through December 31, 2010. It is codified at 26 U.S.C. § 181.

This bill is HR 4213 [LOC | WW]. Rep. Charles Rangel (D-NY) introduced it on December 7, 2009. The House passed it two days later, on December 9, by a vote of 241-181. See, Roll Call No. 943. It was a nearly straight party line vote.

The Senate adopted numerous amendments to this bill in early March of 2010, and then passed the bill by a vote of 62-36. See, Roll Call No. 48. Voting was partisan. All but five Republicans voted against the bill. All Democrats voted for the bill, except for two who did not vote.

House Rejects America Competes Reauthorization Act

5/19. The House failed to pass HR 5325 [LOC | WW], the "America COMPETES Reauthorization Act of 2010". The House voted 261-148 under suspension of the rules. See, Roll Call No. 277. A two thirds majority was required for passage. All of the votes against the bill were cast by Republicans.

The proponents of this bill argued that it would promote innovation, new technologies, and economic growth. The bill is a collection of authorizations for appropriations to the National Science Foundation (NSF), National Institute of Standards and Technology (NIST), Department of Energy (DOE) and other agencies. The bill's proponents sought to promote innovation and growth through government subsidized research. The bill did not pursue other approaches, such as incenting private sector research by making the R&D tax credit permanent, reforming patent law, or reducing regulatory burdens on tech companies.

The initial version of this legislation was HR 5116 [LOC | WW], introduced by Rep. Bart Gordon (D-TN) on April 22, 2010. The House Science Committee (HSC), which Rep. Gordon chairs, reported the bill on May 7, 2010.

The full House considered HR 5116 on May 12 and 13, and adopted amendments. However, many members opposed the bill. On May 13, 2010, the House adopted a motion to recommit by a vote of 292-126. See, Roll Call No. 270.

Rep. Bart GordonRep. Gordon (at left) introduced a scaled down version, HR 5325, on May 18. Rep. Gordon stated that "the bill differs in two respects. One, it includes language from the motion to recommit barring money from going to agency employees who were disciplined for viewing pornography at work, and two, the authorization period for all programs in the bill has been changed from 5 years to 3 years." See, Congressional Record, May 19, 2010, at Page H3578.

The Democratic leadership brought this bill to the floor, but under suspension of the rules. The House rejected it.

Only fifteen Republicans voted for this bill. Four of the fifteen are members of the HSC (Bartlett, Ehlers, Biggert, and McCaul).

Rep. Dana Rohrabacher (R-CA) stated in the House on May 12, 2010, that "The theoretical purpose of the America COMPETES Reauthorization Act is to enhance the Nation's long-term economic competitiveness through investments in science and technology. I support this laudable goal, as I have for more than 21 years as a member of the Committee on Science and Technology, including 10 years in which I was a subcommittee chairman. But I cannot support this legislation which, simply put, authorizes too much funding in too many wrongheaded ways." See, Congressional Record, May 12, 2010, at Page H3360.

Rep. Ralph Hall (R-TX), the ranking Republican on the HSC, stated on may 19 that "I believe long-term investment in science and technology, coupled with policies that reduce tax burdens, streamline Federal regulations, and balance the Federal budget are very vital for our Nation to remain competitive in the global marketplace. However, we must also put our fiscal house in order to ensure that we're not leveraging the future of our children and our grandchildren."

He added that "the bill before us today continues to take us in a much more costly direction and authorizes a number of new programs which have little to do with prioritizing investments in basic science, technology, engineering, and math research and development." See, Congressional Record, May 19, 2010, at Page H3578.

Rep. Hall concluded that Rep. Gordon "changed this bill from an $86 billion bill to a $47 billion from 5 years to 3 years".

Robert Atkinson, head of the Information Technology and Innovation Foundation (ITIF), stated in a release that "At a moment in history when the United States is slipping as an innovation leader, it is regrettable the House has stumbled so badly and failed to reauthorize the few programs focused on national innovation."

He continued that "Changing the reauthorization from five years to three years would not have saved money. The programs in COMPETES have broad bipartisan support and will be reauthorized by future Congresses. Pretending otherwise is shortsighted and hinders the development of a long-term innovation strategy that this country needs. Just as uncertainty and inconsistency erode the value of the R&D tax credit and impede long-term planning, so it is now with vitally important innovation policy."

He added that lawmakers "need to differentiate between spending and investment. The former produces few, if any, long-term returns to society and should be the focus of policymakers' scrutiny. The latter, like the investments made in COMPETES, produce returns for the society in the long term and, in an era of intense global competition, need to be increased."

Rep. Gordon stated after the vote in a release that "I'm disappointed, but not deterred" and "this bill is too important to let fall by the way-side".

HR 5325 may have failed to win passage, in part, because of public reaction to other spending bills, such as HR 1 [LOC | WW], titled the "American Recovery and Reinvestment Act of 2009".

Sen. Rockefeller Introduces Bill to Regulate Aggressive Sales Tactics on Internet

5/19. Sen. John Rockefeller (D-WV), the Chairman of the Senate Commerce Committee (SCC), introduced S 3386 [LOC | WW], the "Restore Online Shoppers' Confidence Act".

In addition, the SCC released report [25 pages in PDF] prepared by the majority staff of the SCC titled "Supplemental Report on Aggressive Sales Tactics on the Internet".

This bill recites in its findings that "the aggressive sales tactics many companies use against their online customers have undermined consumer confidence in the Internet".

It elaborates that "in exchange for `bounties´ and other payments, hundreds of reputable online retailers and websites shared their customers' billing information, including credit card and debit card numbers, with third party sellers through a process known as `data pass´. These third party sellers in turn used aggressive, misleading sales tactics to charge millions of American consumers for membership clubs the consumers did not want."

Sen. John RockefellerSen. Rockefeller (at right) stated in a release that Affinion, Vertrue, and Webloyalty are the companies that used aggressive sales tactics to enroll online consumers in services without their consent.

He stated that "Tricking consumers into buying goods and services they do not want is completely unacceptable.  It’s not ethical, it’s not right, and it is not the way business should be done in America."

The bill provides that "It shall be unlawful for any post-transaction third party seller to charge or attempt to charge any consumer's credit card, debit card, bank account, or other financial account for any good or service sold in a transaction effected on the Internet, unless ... before obtaining the purchaser's billing information, the post-transaction third party seller has clearly and conspicuously disclosed to the purchaser all material terms of the transaction ... and ... the post-transaction third party seller has received the express informed consent for the charge from the consumer whose credit card, debit card, bank account, or other financial account will be charged by ... obtaining from the consumer ... the full account number of the account to be charged".

The bill further provides that "It shall be unlawful for an initial merchant to disclose a credit card, debit card, bank account, or other financial account number, or to disclose other billing information that is used to charge a customer of the initial merchant, to any post-transaction third party seller for use in an Internet-based sale of any goods or services from that post-transaction third party seller".

The bill also provides that "It shall be unlawful for any person to charge or attempt to charge any consumer for any goods or services sold in a transaction effected on the Internet through a negative option feature, unless" the seller has met numerous requirements enumerated in the bill regarding disclosure, consent, and termination.

The bill would give the Federal Trade Commission (FTC) authority to write rules, pursuant to Administrative Procedure Act (APA) procedure. The FTC would also be given authority to enforce violations as unfair or deceptive acts or practices. The bill would also give enforcement authority to state attorneys general.

The original cosponsors of the bill are Sen. Mark Pryor (D-AR), Sen. Bill Nelson (D-FL), Sen. Amy Klobuchar (D-MN), Sen. Claire McCaskill (D-MO), and Sen. George LeMieux (R-FL). The bill was referred to the SCC.

More Capitol Hill News

5/20. The Senate amended and passed S 920 [LOC | WW], the "Information Technology (IT) Investment Oversight Enhancement and Waste Prevention Act of 2009", a bill to amend 40 U.S.C. § 11317 regarding spending by federal agencies on IT projects. The Senate amended and passed this bill without debate, without objection. The House has yet to pass this bill. It was referred to the House Oversight and Government Committee (HOGRC) and House Armed Services Committee (HASC). Sen. Tom Carper (D-DE), the sponsor, stated in a release that "At a time when our country is facing record deficits it is simply unacceptable that federal agencies continue to waste billions of dollars by mismanaging information technology investments". He added that "federal agencies are dropping the ball when it comes to deploying the right technology in a timely and cost-effective manner. ... This legislation will provide the planning and oversight needed to reduce waste and improve the federal government's information technology operations."

5/20. The House Oversight and Government Committee (HOGRC) amended and approved HR 4900 [LOC | WW], the "Federal Information Security Amendments Act of 2010". See, HOGRC release. This bill would create a National Office for Cyberspace (NOC) within the Executive Office of the President (EOP). It would also create a Federal Cybersecurity Practice Board (FCPB) within this new NOC. The bill would give the NOC responsibilities with respect to information security at federal agencies. The bill would give rulemaking authority to the NOC.

5/20. The House Oversight and Government Committee (HOGRC) amended and approved HR 2142 [LOC | WW], the "Government Efficiency, Effectiveness, and Performance Improvement Act of 2009". See, HOGRC release.

5/18. The House passed S 1782 [LOC | WW], the "Federal Judiciary Administrative Improvements Act of 2010", under suspension of the rules by voice vote. Previously, the Senate passed this bill on March 17, 2010. It is ready to be signed into law by President Obama. This bill amends 18 U.S.C. § 2519, regarding "Reports concerning intercepted wire, oral, or electronic communications". It makes minor changes to the statistical reporting schedule for Title 18 wiretap orders. Rep. Hank Johnson (D-GA) stated in the House that "the bill adjusts the deadline for both State and Federal judges to file their wiretap totals with the Administrative Office of the Courts so that the annual wiretap report to Congress is accurate and does not later require a later addendum". See, Congressional Record, May 18, 2010, at Page H3500. Rep. Johnson introduced a related bill in the House, HR 3632 [LOC | WW], on September 23, 2009. The House passed that bill on October 28, 2009.

In This Issue
This issue contains the following items:
 • House to Take Up Tax Bill with Tech Provisions
 • House Rejects America Competes Reauthorization Act
 • Sen. Rockefeller Introduces Bill to Regulate Aggressive Sales Tactics on Internet
 • More Capitol Hill News
Washington Tech Calendar
New items are highlighted in red.
Friday, May 21

The House will meet briefly at 9:00 AM. There will be no votes. See, Rep. Hoyer's schedule for the week of May 17.

The Senate will not meet.

8:30 AM - 5:00 PM. The Executive Office of the President's (EOP) Office of Science and Technology Policy's (OSTP) President's Council of Advisors on Science and Technology (PCAST) will hold a partially closed meeting. See, notice in the Federal Register, April 29, 2010, Vol. 75, No. 82, at Pages 22635-22636. Location: Keck Center of the National Academies, Room Keck 100, 500 5th St., NW.

9:30 AM - 5:00 PM. The Federal Communications Commission's (FCC) North American Numbering Council (NANC) will meet. See, notice in the Federal Register, May 5, 2010, Vol. 75, No. 86, at Pages 24700-24701. Location: FCC, Commission Meeting Room.

10:00 - 12:00 NOON. The Department of Health and Human Services' (DHHS) Office of the National Coordinator for Health Information Technology's (ONCHIT) HIT Standards Committee's Clinical Quality Workgroup will hold a webcast meeting. See, notice in the Federal Register, April 26, 2010, Vol. 75, No. 79, at Page 21629. The ONCHIT publishes inconsistent information about its meetings in the Federal Register and its web site.

Deadline to submit initial comments to the Federal Communications Commission (FCC) in response to its Notice of Proposed Rulemaking (NPRM) regarding robocalls, and revisions to FCC rules under the Telephone Consumer Protection Act (TCPA) that would harmonize those rules with the Federal Trade Commission's (FTC) recently amended Telemarketing Sales Rule (TSR). This FCC adopted this NPRM on January 20, 2010, and released the text [37 pages in PDF] on January 22, 2010. It is FCC 10-18 in CG Docket No. 02-278. See, notice in the Federal Register, March 22, 2010, Vol. 75, No. 54, at Pages 13471-13482. See also, story titled "FCC Adopts NPRM Regarding Limiting Some Robocalls" in TLJ Daily E-Mail Alert No. 2,037, January 20, 2010.

Monday, May 24

The House will meet at 12:30 PM.

The Senate will meet at 2:00 PM. It will resume consideration of HR 4899 [LOC | WW], a huge supplemental appropriations bill.

12:00 NOON - 2:00 PM. The Progress & Freedom Foundation (PFF) will host a panel discussion titled "Nuts & Bolts of Online Privacy, Advertising, Notice & Choice". The speakers will be Lorrie Cranor, Ari Schwartz (Center for Democracy and Technology), Shane Wiley (Yahoo), and Berin Szoka (PFF). Lunch will be served. Location: Rooom 2123, Rayburn Building.

Deadline to submit comments to the Office of Management and Budget's (OMB) Office of Information and Regulatory Affairs regarding the Department of Homeland Security's (DHS) National Protection and Programs Directorate's (NPPD) Office of Emergency Communications' (OEC) Information Collection Request (ICR) to the OMB. See, notice in the Federal Register, April 22, 2010, Vol. 75, No. 77, at Page 21011.

Deadline for applicants for new analog low power television and TV translator stations to submit to the Federal Communications Commission's (FCC) Media Bureau (MB) amendments to pending applications to specify digital operations. See, Public Notice.

Deadline to submit initial comments to the Federal Communications Commission (FCC) in response to its Notice of Proposed Rulemaking (NPRM) regarding amending the FCC's amateur radio service rules with respect to amateur radio operations during government sponsored emergency preparedness and disaster readiness drills and tests. The FCC adopted its NPRM on March 18, 2010, and released the text [8 pages in PDF] on March 24, 2010. It is FCC 10-45 in WP Docket No. 10-72. See, notice in the Federal Register, April 22, 2010, Vol. 75, No. 77, at Pages 20951-20954.

Tuesday, May 25

RESCHEDULED FOR JUNE 15. Federal Communications Commission (FCC) Auction 87, for the lower and upper paging bands, is scheduled to begin. See, Public Notice (DA 09-2416), notice of error in Public Notice, and notice in the Federal Register, December 18, 2009, Vol. 74, No. 242, at Pages 67221-67226. This is AU Docket No. 09-205. See also, Public Notice (DA 10-588) regarding postponement.

9:00 - 11:00 AM. The Department of Health and Human Services' (DHHS) Office of the National Coordinator for Health Information Technology's (ONCHIT) HIT Standards Committee's Clinical Operations Workgroup/Vocabulary Task Force will hold a webcast meeting. See, notice in the Federal Register, April 26, 2010, Vol. 75, No. 79, at Page 21629. The ONCHIT publishes inconsistent information about its meetings in the Federal Register and its web site.

1:00 - 2:30 PM. The American Bar Association (ABA) will host a seminar titled "Digital Platforms 101". The speakers will be Melissa Devita (FLO TV), Steve Gordon (author of the book [Amazon] titled "The Future of Music Business: How to Succeed with the New Digital Technologies"), and Gary Greenstein (Wilson Sonsini Goodrich & Rosati). See, notice. Prices vary. This event qualifies for continuing legal education (CLE) credits. The ABA will teleconference and webcast this event.

5:00 PM. Deadline to submit "Letters of Understanding" to the National Institute of Standards and Technology (NIST) regarding participation in the NIST's "Phase III of the benchmark research for voting equipment used in an election in 2008". See, notice in the Federal Register, March 26, 2010, Vol. 75, No. 58, at Page 14575.

5:00 PM. Deadline to submit comments to the Office of the U.S. Trade Representative (OUSTR) and the Department of Commerce's (DOC) International Trade Administration (ITA) in response to the joint request for comments regarding the Industry Trade Advisory Committee (ITAC) component of the trade advisory committee system. See, notice in the Federal Register, April 27, 2010, Vol. 75, No. 80, at Pages 22121-22122.

6:00 - 8:30 PM. The Federal Communications Bar Association's (FCBA) Video Programming and Distribution Committee will host an event titled "Emerging Issues in the Distribution of Video Programming". This event qualifies for continuing legal education credits. The price to attend ranges from $25 to $150. The deadline to register is May 21. See, registration form. Location: Wiley Rein, 1776 K St., NW.

Wednesday, May 26

9:00 AM - 5:15 PM. The Department of Justice's (DOJ) Antitrust Division, Federal Trade Commission (FTC), and the U.S. Patent and Trademark Office (USPTO) will hold a joint public workshop on "the intersection of patent policy and competition policy and its implications for promoting innovation". See, notice. Location: USPTO, Madison Building Auditorium, 600 Dulany Street, Alexandria, VA.

? 9:00 AM - 1:00 PM. The Department of Health and Human Services' (DHHS) Office of the National Coordinator for Health Information Technology's (ONC/HIT) HIT Standards Committee will a webcast meeting. See, notice in the Federal Register, April 26, 2010, Vol. 75, No. 79, at Pages 21628-21629. The ONCHIT publishes inconsistent information about its meetings in the Federal Register and its web site.

2:30 PM. The Senate Commerce Committee's (SCC) Subcommittee on Communications, Technology, and the Internet will hold a hearing titled "Innovation and Inclusion: The Americans with Disabilities Act at 20". See, SCC notice. See also, story titled "Senate Commerce Committee to Hold Hearing on ADA Like Regulation of the Internet, Software, and Consumers Electronics" in TLJ Daily E-Mail Alert No. 2,085, May 20, 2010. And see, story titled "DOJ CRD May Write Regulations to Expand the ADA to Cover the Internet and Information Technologies", and related stories, in TLJ Daily E-Mail Alert No. 2,080, April 26, 2010. Location: Room 253, Russell Building.

11:59 PM. Extended deadline to submit to the Executive Office of the President's (EOP) Office of Science and Technology Policy (OSTP) responses to OSTP's Request for Information regarding commercialization of university research. See, original notice in the Federal Register, March 25, 2010, Vol. 75, No. 57, at Pages 14476-14478, and notice of extension of deadline in the Federal Register, April 26, 2010, Vol. 75, No. 79, at Page 21686.

Thursday, May 27

10:00 AM. The Senate Judiciary Committee (SJC) will hold an executive business meeting. The agenda includes consideration of the nominations Robert Chatigny to be a Judge of the U.S. Court of Appeals (2ndCir) and John Gibney to be a Judge of the U.S. District Court (EDVa). The SJC rarely follows its published agendas. The SJC will webcast this event. See, notice. Location: Room 226, Dirksen Building.

12:15 - 1:30 PM. The Federal Communications Bar Association's (FCBA) Judicial Practice Committee will host a brown bag lunch titled "Citizens United and Media Companies -- What are the Practical and Political Implications of the Supreme Court's Decision for Media Companies?" The speakers will be Caleb Burns (Wiley Rein), Meredith McGehee (Campaign Legal Center), and Mark Schneider (Service Employees Int'l Union). Location: Wiley Rein, 1776 K St., NW.

2:30 PM. The Federal Trade Commission's (FTC) Bureau of Economics will host a presentation by Adair Morse (University of Chicago business school). For more information, contact Loren Smith at lsmith2 at ftc dot gov or Tammy John at tjohn at ftc dot gov. Location: FTC, ground floor Conference Center, 601 New Jersey Ave., NW.

5:00 PM. Deadline to submit comments to the National Institute of Standards and Technology's (NIST) Computer Security Division (CSD) regarding its draft SP 800-85 A 2 [156 pages in PDF] titled "PIV Card Application and Middleware Interface Test Guidelines".

Friday, May 28

Effective date of the Federal Communications Commission's (FCC) Order on Reconsideration [94 pages in PDF] eliminating the home roaming exclusion. The FCC adopted and released this item on April 21, 2010. It is FCC 10-59 in WT Docket No. 05-265. See also, notice in the Federal Register, April 28, 2010, Vol. 75, No. 81, Pages 22263-22276.

About Tech Law Journal

Tech Law Journal publishes a free access web site and a subscription e-mail alert. The basic rate for a subscription to the TLJ Daily E-Mail Alert is $250 per year for a single recipient. There are discounts for subscribers with multiple recipients.

Free one month trial subscriptions are available. Also, free subscriptions are available for journalists, federal elected officials, and employees of the Congress, courts, and executive branch. The TLJ web site is free access. However, copies of the TLJ Daily E-Mail Alert are not published in the web site until two months after writing.

For information about subscriptions, see subscription information page.

Tech Law Journal now accepts credit card payments. See, TLJ credit card payments page.

Solution Graphics

TLJ is published by David Carney
Contact: 202-364-8882.
carney at techlawjournal dot com
P.O. Box 4851, Washington DC, 20008.

Privacy Policy
Notices & Disclaimers
Copyright 1998-2010 David Carney. All rights reserved.