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DISCUSSION DRAFT: NATIONAL TELECOMMUNI- CATIONS AND INFORMATION ADMINISTRATION REAUTHORIZATION ACT OF 2018 HEARING BEFORE THE SUBCOMMITTEE ON COMMUNICATIONS AND TECHNOLOGY OF THE COMMITTEE ON ENERGY AND COMMERCE HOUSE OF REPRESENTATIVES ONE HUNDRED FIFTEENTH CONGRESS SECOND SESSION JUNE 26, 2018 Serial No. 115–146 ( Printed for the use of the Committee on Energy and Commerce energycommerce.house.gov U.S. GOVERNMENT PUBLISHING OFFICE 35–141 WASHINGTON : 2019 VerDate Nov 24 2008 12:54 Mar 01, 2019 Jkt 037690 PO 00000 Frm 00001 Fmt 5011 Sfmt 5011 U:\MY DOCS\HEARINGS 115\HEARINGS\115-146 CHRIS COMMITTEE ON ENERGY AND COMMERCE GREG WALDEN, Oregon Chairman JOE BARTON, Texas FRANK PALLONE, JR., New Jersey Vice Chairman Ranking Member FRED UPTON, Michigan BOBBY L. RUSH, Illinois JOHN SHIMKUS, Illinois ANNA G. ESHOO, California MICHAEL C. BURGESS, Texas ELIOT L. ENGEL, New York MARSHA BLACKBURN, Tennessee GENE GREEN, Texas STEVE SCALISE, Louisiana DIANA DEGETTE, Colorado ROBERT E. LATTA, Ohio MICHAEL F. DOYLE, Pennsylvania CATHY MCMORRIS RODGERS, Washington JANICE D. SCHAKOWSKY, Illinois GREGG HARPER, Mississippi G.K. BUTTERFIELD, North Carolina LEONARD LANCE, New Jersey DORIS O. MATSUI, California BRETT GUTHRIE, Kentucky KATHY CASTOR, Florida PETE OLSON, Texas JOHN P. SARBANES, Maryland DAVID B. MCKINLEY, West Virginia JERRY MCNERNEY, California ADAM KINZINGER, Illinois PETER WELCH, Vermont H. MORGAN GRIFFITH, Virginia BEN RAY LUJA´ N, New Mexico GUS M. BILIRAKIS, Florida PAUL TONKO, New York BILL JOHNSON, Ohio YVETTE D. CLARKE, New York BILLY LONG, Missouri DAVID LOEBSACK, Iowa LARRY BUCSHON, Indiana KURT SCHRADER, Oregon BILL FLORES, Texas JOSEPH P. KENNEDY, III, Massachusetts SUSAN W. BROOKS, Indiana TONY CA´ RDENAS, California MARKWAYNE MULLIN, Oklahoma RAUL RUIZ, California RICHARD HUDSON, North Carolina SCOTT H. PETERS, California CHRIS COLLINS, New York DEBBIE DINGELL, Michigan KEVIN CRAMER, North Dakota TIM WALBERG, Michigan MIMI WALTERS, California RYAN A. COSTELLO, Pennsylvania EARL L. ‘‘BUDDY’’ CARTER, Georgia JEFF DUNCAN, South Carolina SUBCOMMITTEE ON COMMUNICATIONS AND TECHNOLOGY MARSHA BLACKBURN, Tennessee Chairman LEONARD LANCE, New Jersey MICHAEL F. DOYLE, Pennsylvania Vice Chairman Ranking Member JOHN SHIMKUS, Illinois PETER WELCH, Vermont STEVE SCALISE, Louisiana YVETTE D. CLARKE, New York ROBERT E. LATTA, Ohio DAVID LOEBSACK, Iowa BRETT GUTHRIE, Kentucky RAUL RUIZ, California PETE OLSON, Texas DEBBIE DINGELL, Michigan ADAM KINZINGER, Illinois BOBBY L. RUSH, Illinois GUS M. BILIRAKIS, Florida ANNA G. ESHOO, California BILL JOHNSON, Ohio ELIOT L. ENGEL, New York BILLY LONG, Missouri G.K. BUTTERFIELD, North Carolina BILL FLORES, Texas DORIS O. MATSUI, California SUSAN W. BROOKS, Tennessee JERRY MCNERNEY, California CHRIS COLLINS, New York FRANK PALLONE, JR., New Jersey (ex KEVIN CRAMER, North Dakota officio) MIMI WALTERS, California RYAN A. COSTELLO, Pennsylvania GREG WALDEN, Oregon (ex officio) (II) VerDate Nov 24 2008 12:54 Mar 01, 2019 Jkt 037690 PO 00000 Frm 00002 Fmt 5904 Sfmt 5904 U:\MY DOCS\HEARINGS 115\HEARINGS\115-146 CHRIS C O N T E N T S Page Hon. Marsha Blackburn, a Representative in Congress from the State of Tennessee, opening statement ............................................................................ 1 Prepared statement .......................................................................................... 3 Hon. Michael F. Doyle, a Representative in Congress from the Commonwealth of Pennsylvania, opening statement ................................................................... 3 Prepared statement .......................................................................................... 5 Hon. Leonard Lance, a Representative in Congress from the State of New Jersey, opening statement ................................................................................... 6 Prepared statement .......................................................................................... 7 Hon. Frank Pallone, Jr., a Representative in Congress from the State of New Jersey, opening statement .......................................................................... 41 Prepared statement .......................................................................................... 42 WITNESSES Michael D. Gallagher, CEO, Entertainment Software Association ..................... 8 Prepared statement .......................................................................................... 10 Answers to submitted questions ...................................................................... 94 John Kneuer, President, JKC Consulting ............................................................. 20 Prepared statement .......................................................................................... 23 Answers to submitted questions ...................................................................... 97 Joanne S. Hovis, President, CTC Technology and Energy ................................... 29 Prepared statement .......................................................................................... 31 Answers to submitted questions ...................................................................... 99 SUBMITTED MATERIAL Statement of the Computer & Communications Industry Association ............... 64 The Entertainment Software Association’s Motion for Leave to Intervene in Support of Petitioners .......................................................................................... 66 Statement of the Coalition for a Secure and Transparent Internet .................... 73 Statement of the Telecommunications Industry Association ............................... 74 Article entitled, ’’Wired to Fail,’’ Politico, June 28, 2015 ..................................... 80 Statement of Organizations fighting against human trafficking ......................... 91 Letter of May 11, 2018, from Messrs. Shimkus and Ruiz to Alphabet, Inc. ....... 92 Statement of the Telecommunications Industry Association ............................... 74 (III) VerDate Nov 24 2008 12:54 Mar 01, 2019 Jkt 037690 PO 00000 Frm 00003 Fmt 5904 Sfmt 5904 U:\MY DOCS\HEARINGS 115\HEARINGS\115-146 CHRIS VerDate Nov 24 2008 12:54 Mar 01, 2019 Jkt 037690 PO 00000 Frm 00004 Fmt 5904 Sfmt 5904 U:\MY DOCS\HEARINGS 115\HEARINGS\115-146 CHRIS DISCUSSION DRAFT: NATIONAL TELE- COMMUNICATIONS AND INFORMATION AD- MINISTRATION REAUTHORIZATION ACT OF 2018 TUESDAY, JUNE 26, 2018 HOUSE OF REPRESENTATIVES, SUBCOMMITTEE ON COMMUNICATIONS AND TECHNOLOGY, COMMITTEE ON ENERGY AND COMMERCE, Washington, DC. The subcommittee met, pursuant to call, at 1:15 p.m., in room 2322 Rayburn House Office Building, Hon. Marsha Blackburn (chairman of the subcommittee) presiding. Members present: Representatives Blackburn, Lance, Shimkus, Latta, Guthrie, Bilirakis, Johnson, Flores, Brooks, Collins, Walters, Costello, Doyle, Welch, Loebsack, Ruiz, Eshoo, Butterfield, Matsui, McNerney, and Pallone (ex officio). Staff present: Jon Adame, Policy Coordinator, Communications and Technology; Robin Colwell, Chief Counsel, Communications and Technology; Kristine Fargotstein, Detailee, Communications and Technology; Sean Farrell, Professional Staff Member, Commu- nications and Technology; Adam Fromm, Director of Outreach and Coalitions; Elena Hernandez, Press Secretary; Paul Jackson, Pro- fessional Staff, Digital Commerce and Consumer Protection; Tim Kurth, Deputy Chief Counsel, Communications and Technology; Lauren McCarty, Counsel, Communications and Technology; Aus- tin Stonebraker, Press Assistant; Evan Viau, Legislative Clerk, Communications and Technology; Jeff Carroll, Minority Staff Direc- tor; Jennifer Epperson, Minority FCC Detailee; Alex Hoehn-Saric, Chief Counsel, Communications and Technology, Jerry Leverich, Minority Counsel; Dan Miller, Minority Policy Analyst; Jon Mon- ger, Minority Counsel; Andrew Souvall, Minority Director of Com- munications, Outreach and Member Services; C.J. Young, Minority Press Secretary. OPENING STATEMENT OF HON. MARSHA BLACKBURN, A REP- RESENTATIVE IN CONGRESS FROM THE STATE OF TEN- NESSEE Mrs. BLACKBURN. The Subcommittee on Communications and Technology will now come to order. The chair now recognizes her- self for 5 minutes for an opening statement. And I want to welcome you to our hearing on reauthorizing the NTIA. This should be a very familiar topic to everyone in the room as NTIA reauthorization was also my very first hearing as chair of (1) VerDate Nov 24 2008 12:54 Mar 01, 2019 Jkt 037690 PO 00000 Frm 00005 Fmt 6633 Sfmt 6633 U:\MY DOCS\HEARINGS 115\HEARINGS\115-146 CHRIS 2 this subcommittee on February 2nd of 2017. Since then, we have held nine hearings related to the work of the NTIA, including an oversight hearing this spring with the new NTIA administrator. I’d like to thank our witnesses for being here. Ms. Hovis has been particularly generous with her time, as this is her third ap- pearance before the subcommittee this Congress on NTIA-related topics. We welcome Mr. Kneuer back to the subcommittee as well, and are pleased to welcome Mr. Gallagher as the fourth former NTIA administrator that we have heard from. We appreciate your perspectives on the agency and also what music you might have been listening to when the NTIA was last reauthorized. Of course, as somebody coming from middle Tennessee, I’ll give you a little hint. Mr. Doyle was dancing the line dance in Pittsburgh to the music of Billy Ray Cyrus and ‘‘Achy Breaky Heart.‘‘ I know it. Mr. DOYLE. I kind of doubt that but—— [Laughter.] Mrs. BLACKBURN. I