Tech Law Journal Daily E-Mail Alert
Tuesday, February 11, 2014, Alert No. 2,627.
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Senate Confirms Baucus to Be Ambassador to PRC

2/6. The Senate confirmed Sen. Max Baucus (D-MT) to be Ambassador to the People's Republic of China (PRC) by a vote of 96-0-1. See, Roll Call No. 25.

Max BaucusSen. Baucus (at right) voted present. Three prairie state Republicans did not vote -- Sen. Tom Coburn (R-OK), Sen. Jerry Moran (R-KS), and Sen. Pat Roberts (R-KS).

Sen. Baucus was elected to the House with the post Watergate class of 1974. He has served in the Senate since 1978.

See also, story titled "Obama to Name Baucus Ambassador to the PRC" in TLJ Daily E-Mail Alert No. 2,622, December 18, 2013, and Sen. Baucus Will Not Seek Re-Election in 2014" in TLJ Daily E-Mail Alert No. 2,552, April 22, 2013.

Sen. Baucus stated in the Senate on February 6 that "The United States-China relationship I believe is one of the most important bilateral relationships in the world that will shape global affairs for generations. We must get it right. Thirty-eight years ago, Mike Mansfield said farewell to this institution by simply declaring: ``There is a time to stay and a time to go.´´ Now, as I face my own crossroads, I am humbled to have the opportunity to follow in his footsteps. As America's ambassador to Japan, Mansfield worked hard to strengthen and improve America's relationship throughout history. I will try to do the same." See, Congressional Record, February 6, 2014, at page S800.

Sen. Carl Levin (D-MI) stated in the Senate that "Our relationship with China is more important than ever. Decisions made today will affect that relationship for decades to come. We are seeking to cement a positive relationship, one in which China joins with our friends and allies in the Asia-Pacific Region to support collective security and economic growth, and fosters stability through adhering to international norms. As the representative of the American people in Beijing, MAX will be instrumental in getting and keeping the U.S.-China relationship on a positive footing. He will be in a crucial position to help open Chinese markets to American goods."

Sen. Wyden Set to Become Chairman of Senate Finance Committee

2/6. Sen. Max Baucus (D-MT), who as just been confirmed as Ambassador to the People's Republic of China (PRC), served as either the Chairman or ranking Democrat on the Senate Finance Committee (SFC) since the retirement of the late Sen. Patrick Moynihan (D-NY) in 2000. Sen. Ron Wyden (D-OR) is now set to become the next Chairman of the SFC.

Both providers and consumers of many technology related goods and services have reason to be enthusiastic about Sen. Wyden's elevation. He is the sponsor or lead cosponsor of several tech related tax or trade bills over which the SFC has jurisdiction. However, whether he will be able to win passage of these bills is another matter.

Sen. Ron WydenSen. Wyden (at right) has served in the Congress since 1981. During his House years he sat on the House Commerce Committee (HCC), and was active on information technology related issues. He and former Rep. Chris Cox (R-CA) were instrumental in winning passage of the original Internet Tax Freedom Act (ITFA) in 1998.

He played a similar role in his early years in the Senate, when he served on the Senate Commerce Committee (SCC). However, he soon gave up his seat on the SCC to obtain his seat on the SFC. This reduced his opportunities for shaping information and communications technology law and policy.

On the SFC his views on major tax issues are in line with many liberal Democrats. However, he diverges on some tech related tax issues.

Sen. Wyden was an opponent of S 743 [LOC | WW], a bill to authorize states to compel out of state retailers to collect sales taxes on internet and other remote sales. The Senate passed this bill on May 6, 2013.

See, stories titled "Senate Invokes Cloture on Internet Sales Tax Bill" in TLJ Daily E-Mail Alert No. 2,552, April 22, 2013, "Senate Adjourns Until May 6 Without Passing Internet Sales Tax Bill" in TLJ Daily E-Mail Alert No. 2,554, April 24, 2013, and Senate Passes Internet Sales Tax Bill in TLJ Daily E-Mail Alert No. 2,557, May 6, 2013. (The House has not taken up the Senate bill, and is highly unlikely to pass the Senate's bill.)

Sen. Baucus opposed this bill as well. Sen. Harry Reid (D-NV) brought the bill to the Senate floor, without allowing the SFC to consider it first. This deprived Sen. Baucus of the opportunity to use his Chairmanship to block, delay, or revise the bill.

There is no reason to expect to Sen. Wyden to be any more effective on this issue than Sen. Baucus was.

Sen. John ThuneThere are also several other tech or trade related issues within jurisdiction of the SFC that Sen. Wyden might press during the remainder of the 113th Congress. He and Sen. John Thune (R-SD) (at right) have formed a partnership, similar to the Wyden Cox partnership in the House. Both are members of the SFC.

There are four key tech related tax bills over which the SFC has jurisdiction, and which Sen. Wyden is sponsoring. However, this article offers no predictions regarding whether Sen. Wyden will be successful in moving all or any of these bills

Internet Tax Freedom Extension Bill. Sen. Wyden, Sen. Thune and others introduced S 1431 [LOC | WW], the "Internet Tax Freedom Forever Act" on August 1, 2013. It was referred to the SFC.

For a summary of the history of the ITFA, and bills pending in the 113th Congress, see story titled "House Members Introduce Internet Tax Freedom Act Extension Bill" in TLJ Daily E-Mail Alert No. 2,600, September 12, 2013. There are several pending bills that would make the ITFA permanent. S 1431 is different in that it also contains a list of seven Congressional findings.

The key House bill is HR 3086 [LOC | WW], the "Permanent Internet Tax Freedom Act", sponsored by Rep. Bob Goodlatte (R-VA). It has a total of 91 sponsors, but has not yet been approved by the House Judiciary Committee (HJC), which has jurisdiction.

The current ban provides that "No State or political subdivision thereof may impose ... Taxes on Internet access" or "Multiple or discriminatory taxes on electronic commerce". There are, however, grandfathered taxes, and numerous exceptions. This ban is codified in the notes to 47 U.S.C. § 151. It is set to expire on November 1, 2014.

Digital Goods and Services Tax Fairness Act. Sen. Wyden and Sen. Thune introduced S 1364 [LOC | WW], the "Digital Goods and Services Tax Fairness Act" on July 25, 2013. It too was referred to the SFC.

This bill would prohibit state and local governments from imposing multiple or discriminatory taxes on the sale or use of a digital good or service delivered or transferred electronically to a customer.

Sen. Wyden and Sen. Thune also introduced S 971 [LOC | WW], the predecessor bill in the 112th Congress, on May 12, 2011. See, story titled "Representatives and Senators Introduce Digital Goods and Services Tax Fairness Act" in TLJ Daily E-Mail Alert No. 2,241, May 14, 2011.

The SFC took no action of S 971 in the last Congress. The SFC has taken no action on S 1364 in the current Congress.

Rep. Lamar Smith (R-TX) has unsuccessfully led efforts to move companion legislation through the HJC.

Digital Trade Act. Sen. Thune and Sen. Wyden introduced S 1788 [LOC | WW], the "Digital Trade Act of 2013", on December 10, 2013. It too was referred to the SFC.

This bill would express the sense of the Congress. For example, it states that the Office of the U.S. Trade Representative (OUSTR) "should be staffed with experts and leaders to fulfill the mission of promoting an open, global Internet that facilitates commerce and digital trade".

This bill would also establish numerous negotiating principles for all "negotiations for a bilateral, plurilateral, or multilateral agreement, and in multi-stakeholder fora". The OUSTR should "seek the inclusion of binding and enforceable provisions that promote and enhance Internet-enabled commerce and digital trade".

For example, the OUSTR should seek "preventing or eliminating barriers to the movement of electronic information across borders, including by encouraging interoperability of data protection regimes and eliminating barriers to accessing, processing, transferring, or storing information".

Wireless Tax Fairness Act. Sen. Wyden introduced S 1235 [LOC | WW], the "Wireless Tax Fairness Act", on June 26, 2013. It too was referred to the SFC.

However, Sen. Pat Toomey (R-PA) is the lead cosponsor. Sen. Thune is not a cosponsor.

This bill would prohibit state and local governments from imposing new discriminatory tax on mobile services, mobile service providers, or mobile service property, such as phones, for five years.

Rep. Zoe Lofgren (D-CA) has long unsuccessfully led efforts to move companion legislation through the HJC.

Sen. Schumer Introduces Robocalling Bill

1/27. Sen. Charles Schumer (D-NY) introduced S 1959 [LOC | WW], the "Quell Unnecessary, Intentional, and Encroaching Telephone Calls Act of 2014", or "QUIET Act". This bill would prohibit certain commercial robocalling practices, but exempt many of the most annoying calls.

The regulation of telecommunications is ordinarily accomplished through amendment to the Communications Act, and/or by rulemaking or adjudicatory proceedings of the Federal Communications Commission (FCC). The Communications Act, and oversight of the FCC, lie within the jurisdiction of the Senate Commerce Committee (SCC). However, neither the SCC nor the FCC have heretofore been inclined to protect consumers from annoying robocalling practices.

Sen. Schumer's bill would amend the criminal code, which falls within the jurisdiction of the Senate Judiciary Committee (SCC), of which he is a member.

This bill provides that "It shall be unlawful for a person within the United States, or a person outside the United States if the recipient is within the United States, to knowingly initiate a commercial robocall without the prior express written consent of the recipient."

However, the bill also contains several exemptions, both in its definition of "commercial robocall", and in an enumeration of exemptions.

The bill defines "commercial robocall" as "a telephone call made for the purpose of soliciting or encouraging the purchase or rental of, or investment or enrollment in, property, goods, or services, using an automatic telephone dialing system or an artificial or prerecorded voice".

There is also an exemption for any "tax-exempt nonprofit organization".

Thus, political candidates, political entities, religious organizations, pollsters and survey researchers, debt collectors, and solicitors for schools and charities would remain free to make robocalls.

The bill also exempts robocalls made for "emergency purposes", robocalls made by commercial mobile radio service (CMRS) providers to their subscribers without charge, and certain health care robocalls.

This bill does not address any fraudulent or annoying caller identification practices, such as caller ID spoofing.

The Federal Trade Commission (FTC) hosted a event on October 18, 2012 titled "Robocalls: All the Rage: An FTC Summit". See, event web site.

There is also pending legislation that would create an office at the FTC that would monitor fraud that targets seniors, including via robocalls. See, S 1358 [LOC | WW] and HR 1953 [LOC | WW], the "Seniors Fraud Prevention Act of 2013".

See also, stories titled "FCC Prohibits Robocalls to PSAPs" in TLJ Daily E-Mail Alert No. 2,463, October 17, 2012, "Sen. Feinstein and Sen. Durbin Introduce Bill to Regulate Political Robocalling" in TLJ Daily E-Mail Alert No. 2,268, July 24, 2011, "Rep. Lofgren Introduces Political Robocalls Bill" in TLJ Daily E-Mail Alert No. 2,054, March 3, 2010, and "FCC Adopts NPRM Regarding Limiting Some Robocalls" in TLJ Daily E-Mail Alert No. 2,037, January 20, 2010.

In This Issue
This issue contains the following items:
 • Senate Confirms Baucus to Be Ambassador to PRC
 • Sen. Wyden Set to Become Chairman of Senate Finance Committee
 • Sen. Schumer Introduces Robocalling Bill
Washington Tech Calendar
New items are highlighted in red.
Tuesday, February 11

The House will meet at 10:00 AM for morning hour, and at 12:00 NOON for legislative business. See, Rep. Cantor's schedule.

The Senate will meet at 10:00 AM.

10:00 AM. The House Financial Services Committee will hold a hearing titled "Monetary Policy and the State of the Economy". The witness will be Janet Yellen (Chairman of the Federal Reserve Board), John Taylor (Stanford University), Mark Calabria (Cato Institute), Abby McCloskey (American Enterprise Institute), and Donald Kohn (Brookings Institution). See, notice. Location: Room 2128, Rayburn Building.

POSTPONED. 10:30 AM. The House Commerce Committee's (HCC) Subcommittee on Communications and Technology will hold a hearing titled "Lessons Learned from the Broadband Stimulus". See, notice. Location: Room 2123, Rayburn Building.

12:15 - 1:30 PM. The Federal Communications Commission (FCC) will host a meeting titled "Meet the Audio Division". The speakers will include Peter Doyle (Chief of the FCC's Audio Division). The agenda includes discussion of AM radio revitalization, LPFM, FM translators, processing line issues, and other matters pending before the FCC. The FCBA asserts that this is an FCBA event. Bring your own lunch. Location: Squire Sanders, 3rd floor, 1200 19th St., NW.

12:15 - 5:00 PM. The New America Foundation (NAF) will host a panel discussion titled "Cryptocurrencies: The New Coin of the Realm?" Free. Open to the public. Lunch will be served. See, notice. Location: NAF, Suite 400, 1899 L St., NW.

1:00 PM. The House Small Business Committee (HSBC) will hold a hearing titled "Building on the Wireless Revolution: Opportunities and Barriers for Small Firms". The witnesses will be Michael Feldman (BigBelly Solar), Brian Marshall (Missouri Farm Bureau Federation and National Farm Bureau Federation), Leo McCloskey (Intelligent Transportation Society of America), and Darrell West (Brookings Institution). See, notice. Location: Room 2360, Rayburn building.

2:30 PM. The Senate Intelligence Committee (SIC) will hold a closed hearing on undisclosed matters. See, notice. Location: Room 219, Hart Building.

3:00 - 5:00 PM. The Brookings Institution (BI) will host an event titled "TPP and RCEP: Competing or Complementary Models of Economic Integration?". The US is a party to Trans Pacific Partnership (TPP) negotiations, but not Regional Comprehensive Economic Partnership (RCEP) negotiations. The speakers will include Kenichiro Sasae (Japan's ambassador to the US). Japan is a party to both TPP and RCEP. See, notice. Location: BI, 1775 Massachusetts Ave., NW.

Wednesday, February 12

The House will meet at 9:00 AM for legislative business. See, Rep. Cantor's schedule.

9:00 AM. The House Homeland Security Committee (HHSC) will hold a hearing titled "The Secretary’s Vision for the Future -- Challenges and Priorities". The witness will be Secretary of Homeland Security Jeh Johnson. See, notice. Location: Room 311, Cannon Building.

9:00 - 10:30 AM. The Information Technology & Innovation Foundation (ITIF) will host a panel discussion titled "The Value of Brands and Reputation in the Global Marketplace". The speakers will include Robert Atkinson (ITIF), Carsten Fink (WIPO), and Sanal Mazvancheryl (American University). Free. Open to the public. See, notice. Location: ITIF/ITIC, Room 610A, 1101 K St., NW.

9:00 AM - 1:00 PM. The Center for Strategic and International Studies (CSIS) will host an event titled "U.S.-Japan Development Summit". See, notice. Location: CSIS, 1616 Rhode Island Ave., NW.

10:00 AM. The Senate Judiciary Committee (SJC) will hold a hearing titled "The Report of the Privacy and Civil Liberties Oversight Board on Reforms to the Section 215 Telephone Records Program and the Foreign Intelligence Surveillance Court". The witnesses will be David Medine, Patricia Wald, Rachel Brand, James Dempsey, and Elisebeth Cook. Webcast. See, notice. Location: Room 226, Dirksen Building.

12:15 - 1:30 PM. The DC Bar Association's Media Law Committee will host an event titled "Media Law Committee Brown Bag Lunch Series". The speakers will be Jim McLaughlin (Washington Post) and Ashley Messenger (NPR). Free. No CLE credits. For more information, call 202-626-3463. The DC Bar has a history of barring reporters from its events. See, notice. Location: Washington Post, 1150 17th St., NW.

Thursday, February 13

Rep. Cantor's schedule states that "no votes are expected in the House".

8:00 AM - 6:00 PM. The George Mason University law school's Law and Economics Center (LEC) will host an event titled "100 Years of Competition Policy at the FTC" and "17th Annual Law Review Symposium on Antitrust Law". See, notice. For more information, call Jeff Smith at jsmithq at gmu dot edu or 703-993-8382. Location: GMU law school, 3301 Fairfax Drive, Arlington, VA.

10:30 AM - 12:30 PM. The Senate Banking Committee (SBC) will hold a hearing on the Federal Reserve Board's (FRB) "Semiannual Monetary Policy Report to the Congress". The witness will be Janet Yellen (Chairman of the FRB). See, notice. Location: Room 538, Dirksen Building.

9:30 AM. The U.S. International Trade Commission (USITC) will hold a public hearing regarding preparation of a report for Congressional committees regarding India's industrial policies that create barriers to U.S. imports and investment. See, notice in the Federal Register, Vol. 78, No. 172, September 5, 2013, at Pages 54677-54678. This proceeding is Investigation No. 332-543. Location: USITC, 500 E St., SW.

10:00 AM. The Senate Judiciary Committee (SJC) will hold an executive business meeting. The agenda includes consideration of S 149 [LOC | WW], the "STOP Identity Theft Act of 2013". The agenda also again includes consideration of six nominations for the U.S. District Court (DAriz). Webcast. See, notice. Location: Room 226, Dirksen Building.

2:30 PM. The Senate Intelligence Committee (SIC) will hold a hearing on the nomination of John Carlin to be Assistant Attorney General in charge of the Department of Justice's (DOJ) National Security Division. Open to the public. See, notice. Location: Room 219, Hart Building.

Friday, February 14

Rep. Cantor's schedule states that "no votes are expected in the House".

Monday, February 17

Washington's Birthday. This is a federal holiday. See, Office of Personnel Management's (OPM) 2014 calendar of federal holidays.

The House will not meet the week of February 17-21. See, 2014 House calendar.

Tuesday, February 18

9:30 AM - 3:00 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 meet. See, notice in the Federal Register, Vol. 78, No. 243, December 18, 2013, at Page 76627-76628.

11:00 AM - 2:00 PM. The National Science Foundation's (NSF) Networking and Information Technology Research and Development (NITRD) Program's Large Scale Networking Joint Engineering Team (LSN/JET) meets the third Tuesday of each month. See, notice in the Federal Register, Vol. 78, No. 226, November 22, 2013, at Page 70076. Location: NSF, 4201 Wilson Boulevard, Arlington, VA.

RESCHEDULED FROM JANUARY 22. 12:30 – 1:45 PM. The Federal Communications Commission (FCC) will host a meeting at which David Simpson, the new Chief of the FCC's Public Safety and Homeland Security Bureau, will preside. Bring your own lunch. The FCBA asserts that this is an FCBA event. Location: FCC, Room 7-B516, 445 12th St., SW.

2:00 - 3:30 PM. The Brookings Institution (BI) will host an event titled "Social Physics: How Human Social Networks Spread Ideas". The speakers will be Darrell West (BI), Cameron Kerry (BI), Sandy Pentland (MIT), and Aneesh Chopra. See, notice. Location: BI, 1775 Massachusetts Ave., NW.

Deadline to submit reply comments to the Federal Communications Commission (FCC) in response to its Notice of Proposed Rulemaking (NPRM) regarding resiliency and transparency of mobile wireless networks. This NPRM is FCC 13-125 in PS Docket No. 13-239 and PS Docket No. 11-60. The FCC adopted this NPRM on September 26, 2013, and released it on September 27, 2013. See, notice in the Federal Register, Vol. 78, No. 222, November 18, 2013, at Pages 69018-69033.

Deadline to submit reply comments to the Federal Communications Commission (FCC) in response to its Further Notice of Proposed Rulemaking (FNPRM) regarding rural call completion. The FCC adopted this item on October 28, 2013, and released it on November 8, 2013. It is FCC 13-135 in WC Docket No. 13-39. See, notice in the Federal Register, Vol. 78, No. 242, December 17, 2013, at Pages 76257-76265.

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