S. HRG. 113–630 Senate Hearings Before the Committee on Appropriations Financial Services and General Government Appropriations Fiscal Year 2015 113th CONGRESS, SECOND SESSION H.R. 5016 COMMODITY FUTURES TRADING COMMISSION DEPARTMENT OF THE TREASURY FEDERAL COMMUNICATIONS COMMISSION INTERNAL REVENUE SERVICE PRESIDENT’S FISCAL YEAR 2015 FUNDING REQUEST FOR AND OVERSIGHT OF FEDERAL INFORMATION TECHNOLOGY INVESTMENTS SECURITIES AND EXCHANGE COMMISSION SMALL BUSINESS ADMINISTRATION TREASURY INSPECTOR GENERAL FOR TAX ADMINISTRATION Financial Services and General Government Appropriations, 2015 (H.R. 5016) S. HRG. 113–630 FINANCIAL SERVICES AND GENERAL GOVERNMENT APPROPRIATIONS FOR FISCAL YEAR 2015 HEARINGS BEFORE A SUBCOMMITTEE OF THE COMMITTEE ON APPROPRIATIONS UNITED STATES SENATE ONE HUNDRED THIRTEENTH CONGRESS SECOND SESSION ON H.R. 5016 AN ACT MAKING APPROPRIATIONS FOR FINANCIAL SERVICES AND GENERAL GOVERNMENT FOR THE FISCAL YEAR ENDING SEPTEMBER 30, 2015, AND FOR OTHER PURPOSES Commodity Futures Trading Commission Department of the Treasury Federal Communications Commission Internal Revenue Service President’s Fiscal Year 2015 Funding Request for and Oversight of Federal Information Technology Investments Securities and Exchange Commission Small Business Administration Treasury Inspector General for Tax Administration Printed for the use of the Committee on Appropriations ( Available via the World Wide Web: http://www.gpo.gov/fdsys/browse/ committee.action?chamber=senate&committee=appropriations U.S. GOVERNMENT PUBLISHING OFFICE 87–215 PDF WASHINGTON : 2015 For sale by the Superintendent of Documents, U.S. Government Publishing Office Internet: bookstore.gpo.gov Phone: toll free (866) 512–1800; DC area (202) 512–1800 Fax: (202) 512–2104 Mail: Stop IDCC, Washington, DC 20402–0001 COMMITTEE ON APPROPRIATIONS BARBARA A. MIKULSKI, Maryland, Chairwoman PATRICK J. LEAHY, Vermont RICHARD C. SHELBY, Alabama, Vice TOM HARKIN, Iowa Chairman PATTY MURRAY, Washington THAD COCHRAN, Mississippi DIANNE FEINSTEIN, California MITCH McCONNELL, Kentucky RICHARD J. DURBIN, Illinois LAMAR ALEXANDER, Tennessee TIM JOHNSON, South Dakota SUSAN M. COLLINS, Maine MARY L. LANDRIEU, Louisiana LISA MURKOWSKI, Alaska JACK REED, Rhode Island LINDSEY GRAHAM, South Carolina MARK L. PRYOR, Arkansas MARK KIRK, Illinois JON TESTER, Montana DANIEL COATS, Indiana TOM UDALL, New Mexico ROY BLUNT, Missouri JEANNE SHAHEEN, New Hampshire JERRY MORAN, Kansas JEFF MERKLEY, Oregon JOHN HOEVEN, North Dakota MARK BEGICH, Alaska MIKE JOHANNS, Nebraska CHRISTOPHER A. COONS, Delaware JOHN BOOZMAN, Arkansas CHARLES E. KIEFFER, Staff Director WILLIAM D. DUHNKE III, Minority Staff Director SUBCOMMITTEE ON FINANCIAL SERVICES AND GENERAL GOVERNMENT TOM UDALL, New Mexico, Chairman RICHARD J. DURBIN, Illinois MIKE JOHANNS, Nebraska CHRISTOPHER A. COONS, Delaware JERRY MORAN, Kansas BARBARA A. MIKULSKI, Maryland RICHARD C. SHELBY, Alabama (ex officio) (ex officio) Professional Staff MARIANNE CLIFFORD UPTON DIANA GOURLAY HAMILTON EMILY SHARP DALE CABANISS (Minority) ANDREW NEWTON (Minority) Administrative Support COLIN MACDERMOTT LASHAWNDA SMITH (Minority) (II) CONTENTS THURSDAY, MARCH 27, 2014 Page Federal Communications Commission ................................................................... 1 WEDNESDAY, APRIL 2, 2014 Department of the Treasury ................................................................................... 59 WEDNESDAY, APRIL 30, 2014 Department of the Treasury ................................................................................... 101 Internal Revenue Service ........................................................................................ 187 Treasury Inspector General for Tax Administration ............................................ 211 WEDNESDAY, MAY 7, 2014 President’s Fiscal Year 2015 Funding Request for and Oversight of Federal Information Technology Investments ................................................................. 275 General Services Administration .................................................................... 285 Government Accountability Office .................................................................. 293 Office of Management and Budget .................................................................. 280 Office of Personnel Management ..................................................................... 290 WEDNESDAY, MAY 14, 2014 Securities and Exchange Commission ................................................................... 361 Commodity Futures Trading Commission ............................................................. 373 WEDNESDAY, MAY 21, 2014 Small Business Administration .............................................................................. 415 Department of the Treasury, Office of Financial Institutions ............................. 422 BACK MATTER List of Witnesses, Communications, and Prepared Statements .......................... 439 Subject Index ............................................................................................................ 441 Commodity Futures Trading Commission ...................................................... 441 Department of the Treasury ............................................................................ 441 Office of Terrorism and Financial Intelligence ....................................... 441 Office of the Secretary .............................................................................. 442 Federal Communications Commission ............................................................ 442 Internal Revenue Service ................................................................................. 444 Government Accountability Office ........................................................... 445 Internal Revenue Service Oversight Board ............................................. 447 National Taxpayer Advocate—Nina E. Olson ......................................... 448 National Treasury Employees Union ....................................................... 448 President’s Fiscal Year 2015 Funding Request for and Oversight of Fed- eral Information Technology Investments .................................................. 449 Securities and Exchange Commission ............................................................ 451 Small Business Administration ....................................................................... 452 Treasury Inspector General for Tax Administration ..................................... 453 (III) FINANCIAL SERVICES AND GENERAL GOV- ERNMENT APPROPRIATIONS FOR FISCAL YEAR 2015 THURSDAY, MARCH 27, 2014 U.S. SENATE, SUBCOMMITTEE OF THE COMMITTEE ON APPROPRIATIONS, Washington, DC. The subcommittee met at 10:02 a.m. in room SD–138, Dirksen Senate Office Building, Hon. Tom Udall (chairman) presiding. Present: Senators Udall, Johanns, and Moran. FEDERAL COMMUNICATIONS COMMISSION STATEMENT OF HON. TOM WHEELER, CHAIRMAN ACCOMPANIED BY: HON. AJIT PAI, COMMISSIONER OPENING STATEMENT OF SENATOR TOM UDALL Senator UDALL. Good morning. I am pleased to convene this hearing of the Appropriations Subcommittee on Financial Services and General Government. First, I want to welcome my ranking member, Senator Mike Johanns. We don’t have anybody else here, but we expect a few to show up. But great to be here with you and share this opportunity to learn from our Federal Communications Commission (FCC) members that are here. I also want to—— Senator JOHANNS. Mr. Chairman, sometimes it is about quality, not quantity. Senator UDALL. Yes, that is right. That is very, very well put. Yes. We have got real quality here. There is no doubt about it. And I also want to welcome our witnesses. Chairman Tom Wheeler, who recently was confirmed as the new chairman of the FCC. I want to thank you for your service and look forward to your testimony today. And also with us is Commissioner Ajit Pai. Really good to have you with us again and look forward to your testimony as well. The FCC has been very busy on a number of initiatives, initia- tives that are critical to many Americans. And these are initiatives that I strongly support. The FCC is modernizing the almost $9 billion Universal Service Fund to expand access to vital communications systems for every- one in America. The United States invented the Internet, but now we lag behind many countries in broadband access. This is especially so in rural parts of New Mexico. So I am pleased to see new broadband and (1) 2 wireless investments in my home State and on tribal lands. And that is all thanks to universal service reforms. The FCC is also updating and streamlining the E-Rate program to support Internet access at schools. In New Mexico, E-Rate al- ready makes a big difference, benefiting over 350 schools and li- braries and more than 370,000 school children. There is no doubt, as you both know, that we live in an Internet age. And as Chairman Wheeler has noted, every student in Amer- ica should have access to state-of-the-art tools for education. E-Rate helps make that possible. In 2012, Congress authorized the FCC to conduct spectrum auc- tions to make more spectrum available for mobile broadband use. This fuels innovation in wireless technologies. It helps build FirstNet, our Nation’s public safety broadcast network for first re- sponders. And it will generate significant revenue for the U.S. Treasury. The FCC also has a crucial safety and security role. Our Nation’s communications networks do more than just keep us in touch with friends and family. In emergency