The basic structure of the Telecom Act of 1996 is “actually quite good” from the perspective of being technology-neutral, state regulators told members of the House Commerce Committee, which is considering overhauling the act. “The problem in many instances is not the Act, but the broad, and some might argue, unwarranted discretion the judiciary has given the FCC to implement it,” NARUC said in joint comments submitted by NARUC President Colette Honorable of Arkansas and Telecom Committee Chairman Chris Nelson, of the South Dakota Public Utilities Commission (http://bit.ly/1dp0bbu). Comments were due to House Commerce Friday, and NARUC released its comments Tuesday. NARUC attacked the way the agency has handled the distinction between telecom and information services, suggesting it has caused problems. NARUC said there are places where the act may need updates but it hasn’t collected its members’ views for any major official positions. Flexibility is already present in the statute, NARUC said: “It is hard to construct a scenario where these existing authorities cannot provide the requisite flexibility.” NARUC said state roles should be preserved in such areas as interconnection: “If VoIP were classified as a ’telecommunications service’ it would be clear that [Communications Act] Sections 251-2 apply to IP interconnections and the arbitration option would be available to smaller carriers that cannot get large carriers to the table to discuss interconnection,” NARUC said. The state regulators flagged the federalism principles that their telecom task force put together as one relevant resource for Congress. The Minority Media and Telecommunications Council, meanwhile, made four recommendations, in comments it released this week. Congress should look at the ways to prioritize and increase opportunities for minority and women’s business enterprise ownership and participation and to promote the goals of broadcast diversity, MMTC said. It emphasized what it called “first-class digital citizenship for people of color” and highlighted broadband access and adoption and called for clarification of laws that may affect broadband infrastructure development. Universal service also plays a role, it said.

The U.S. “may not be as far behind the curve on virtual currencies” as previously thought, said Senate Governmental Affairs Committee Chairman Tom Carper, D-Del., in a news release in response to a Law Library of Congress report (http://bit.ly/1eladR1) on digital currencies released Monday. The report surveyed the legal standing of virtual currencies, like Bitcoin, in 40 countries and the EU. “Significantly, this report shows that other countries have addressed how virtual currencies are taxed, and I urge the Internal Revenue [Service] to glean the findings from this survey to help determine its own treatment of virtual currencies,” said Carper.

At least two members will vie for the top Democrat spot on the House Commerce Committee, as some expected last week when ranking member Henry Waxman, D-Calif., announced plans to retire at the end of his term (CD Jan 31 p5). In order of seniority, the next Democrats on the committee are John Dingell, Mich.; Frank Pallone, N.J.; Bobby Rush, Ill.; and Anna Eshoo, Calif., ranking member of the Communications Subcommittee. Since Waxman’s retirement announcement, “I have received the encouragement of members of the Committee and the Caucus to seek this position,” Eshoo said in a statement Monday (http://1.usa.gov/1aWCMUm). “I do so with great enthusiasm because it is the ‘Committee of the Future’ and the most dynamic by its jurisdictions. It is key to shaping America’s future, just as my Silicon Valley congressional district is.” But Pallone, more senior than Eshoo on House Commerce, is also interested. After learning of Waxman’s retirement, “I began the process of calling my colleagues to let them know of my intentions,” Pallone also said in a statement Monday (http://1.usa.gov/1fp3O3B). He believes himself the committee Democrat with “the most effective voice” to lead the committee. “Having a leader with strong relationships on both sides of the aisle will be crucial to moving forward a meaningful agenda,” Pallone said. Dingell, a former House Commerce chairman and ranking member, still did not weigh in on his decision Monday. “I'm boarding a flight back to Washington now, but nothing has changed since my statement last week,” Dingell told us in a statement, saying he looks “forward to continuing to give this thoughtful consideration, speaking with my colleagues upon my return, and from there I will find the absolute best ways” to serve constituents.

The House Homeland Security Committee will mark up the National Cybersecurity and Critical Infrastructure Protection Act (HR-3696) Wednesday. The bill would primarily codify the Department of Homeland Security’s existing authority on cybersecurity issues, but not give DHS new powers. The House Cybersecurity Subcommittee passed the bill in a mid-January markup, which added new language on data breaches, cybersecurity workforce development and DHS’s SAFETY Act office (CD Jan 16 p6). The markup is set to begin at 10 a.m. in 311 Cannon.

Republican leaders of the House and Senate Commerce committees asked the FCC to refer any expansion of the E-rate program to the FCC Federal-State Joint Board on Universal Service. E-rate has received especially high-profile attention lately, with a prominent mention in President Barack Obama’s State of the Union speech Tuesday and again Thursday afternoon at a high school in Nashville. Last summer, Obama announced a desire to revamp E-rate in an initiative the White House calls ConnectED, focused on bringing faster broadband speeds to U.S. schools. The Republicans sent a letter to FCC Chairman Tom Wheeler Thursday, emphasizing the need “to ensure money is spent wisely,” signed by Senate Commerce Committee ranking member John Thune, S.D.; Senate Communications Subcommittee ranking member Roger Wicker, Miss.; House Commerce Committee Chairman Fred Upton, Mich.; and House Communications Subcommittee Chairman Greg Walden, Ore. The joint board “should be used as a tool” to make sure any major changes happen “in an effective and appropriately tailored way,” the Republicans said. Obama spoke about a wide range of education priorities Thursday. “There’s not going to be a child in a school in America that does not have the kind of wireless connection that allows them to stream in the information they need that can power their education,” Obama said of ConnectED. “That’s going to be a priority.”

A data security hearing will be held by the Senate Banking Committee’s Finance Subcommittee on Monday, said the office of subcommittee Chairman Mark Warner, D-Va., in a news release Friday (http://1.usa.gov/1hfNUKN). Reported data breaches at Target, Neiman Marcus and Michaels have raised concerns about the security of consumer data, it said. “It is important that the Banking Committee uses its oversight responsibility to examine whether retailers are taking every appropriate action to safeguard their customer’s personal financial information, and explore ways to minimize the harm that can be caused by this type of fraud and identity theft,” said Warner in the release. The hearing’s witnesses include Jessica Rich, FTC Bureau of Consumer Protection director; Mallory Duncan, National Retail Federation general counsel; and James Reuter, FirstBank executive vice president. Data security hearings will also be held by the Senate Judiciary Committee Tuesday (http://1.usa.gov/1eGfBf1) and the House Commerce Committee Wednesday (http://1.usa.gov/1hYsbXM).

House Republicans want answers from the FCC on its budget and operations. Republican members of the House Commerce Committee’s Communications and Oversight subcommittees sent the agency a letter Friday laying out several questions (http://1.usa.gov/1fsydQj). The letter emphasized fiscal responsibility. “In our committee’s oversight role, we are looking at the operating budget of the FCC with a focus on expenditures designated as [spectrum] auction-related expenses, as well as employee distribution and compensation more generally,” the Republicans said. They seek more information about how the FCC contracts out work. The agency is reviewing the letter now, a spokesman said.

Enacting the FCC Process Reform Act, HR-3675, “would increase direct spending by $197 million over the 2014-2023 period,” according to a four-page Congressional Budget Office analysis last week. The House Commerce Committee cleared the bill in December in a unanimous voice vote after reaching bipartisan compromise (CD Dec 12 p2). Senate Commerce Committee Chairman Jay Rockefeller, D-W.Va., has said he prefers such process updates happen internally at the agency. CBO said pay-as-you-go procedures would apply and that the proposed law wouldn’t affect revenue. “Further, CBO estimates that implementing H.R. 3675 to amend the FCC’s operating procedures would cost $15 million over the next five years, assuming appropriation of the necessary amounts,” CBO added. “However, the FCC is authorized to collect fees sufficient to offset the cost of its regulatory activities each year.” So net costs for those provisions “would not be significant, assuming annual appropriation actions consistent with the agency’s authorities,” it said.

Senate Majority Leader Harry Reid, D-Nev., filed cloture Thursday on the conference report accompanying HR-2642, known as the farm bill. The House passed the bill Wednesday (CD Jan 30 p19). It contains provisions on rural broadband funding and funding for a pilot program on rural gigabit networks.

A House bill on low-power TV is still in the works. Communications Subcommittee Chairman Greg Walden, R-Ore., and Rep. Joe Barton, R-Texas, are putting together a draft, as Barton said during a December hearing. “That’s something on the plate,” Barton told us last week, confirming he and Walden are still putting together legislation. A Republican aide also confirmed the interest when asked. “Chairman Walden and Mr. Barton are both interested in ensuring that TV translators, which are crucial for providing over-the-air reception in parts of rural America, are accommodated as much as possible without compromising the incentive auction or access to over-that-air television,” the aide said. It’s possible the bill could get wrapped into a broader Communications Act overhaul if the House Commerce Committee leadership deems that the wisest course, Barton added.