i2Coalition January 2024 Legislative Update

OUTLOOK

On January 18, Congress avoided another federal government shutdown threat by passing phased legislation to secure temporary funding of departments and agencies through March 1 (for Agriculture, Energy & Water, Transportation-HUD, and Military Construction) and March 8 (for Commerce, Justice & Science; Financial Services and General Government (which includes FCC, FTC); DOD; Interior; Legislative Branch; Foreign Operations; Homeland; and Labor-HHS). This stopgap measure, which President Biden signed into law, gives Congress more time to negotiate the final details of the twelve FY 2024 appropriations bills that are essential for providing updated 2024 budgets to federal government departments and agencies. If the twelve individual appropriations bills are not enacted by April 2024, an automatic 1% across-the-board cut is triggered under the budget deal signed into law in the spring of 2023. Separately, Congressional leaders have been occupied with ongoing, complex negotiations on a supplemental national security funding package seeking, among its major components, more aid to Ukraine and Israel and stronger security at the U.S.-Mexico border. House Republicans are pursuing impeachment proceedings against Department of Homeland Security Secretary Alejandro Mayorkas (based on his alleged failure to manage the southern border) and President Biden (alleging corruption involving his family’s foreign business dealings while Biden was Vice President). The states’ primary elections and caucus processes to determine the official Republican party and Democratic party Presidential nominees kicked off in January. Many more state primary elections lie ahead before the Republican National Convention in July and the Democratic National Convention in August. Former President Donald Trump has maintained frontrunner Republican Presidential candidate status while he defends himself in multiple pending legal cases. President Biden, the expected Democratic nominee in 2024, will deliver the State of the Union address before a joint session of Congress on March 7.

TECH POLICY PRIORITIES

Section 230/Intermediary Liability/Content Moderation. The Senate Judiciary Committee held a contentious Jan. 31 hearing at which the CEOs from five prominent social media platforms (Meta, X, Snap, TikTok, and Discord) testified about the continuing risks and prevalence of child sexual abuse material (CSAM) online. By holding this high-profile hearing, Senate Judiciary Chair Durbin (D-IL) and other Judiciary Committee members aim to build momentum for moving a package of child online protection and safety bills to the Senate floor for a vote. The package could include the Kids Online Safety Act (KOSA) and the STOP CSAM Act. Judiciary Committee Ranking Member Lindsey Graham (R-SC) has announced his intention to help efforts to pass that package of bills this year. Sen. Grahan seeks inclusion of the EARN IT Act in that package and also plans to introduce and seek rapid Senate approval of legislation that would repeal Section 230.

Federal Privacy.  Plans for passing comprehensive federal consumer data privacy and security legislation during this Congress have not been revealed to date by the House or Senate. In this Presidential election year, the legislative calendar for doing so is limited. It remains to be seen how the growing use and visibility of artificial intelligence technologies will affect the prospects for comprehensive federal privacy legislation. State legislatures have dominated action on consumer data privacy and security legislation and the enactment of new laws. Meanwhile, the FTC is accepting comments by March 11 on proposed amendments to its rules implementing the Children’s Online Privacy Protection Act (COPPA) in response to changes in technology and online practices.

Copyright/IP. Legislation has been introduced, and hearings are underway to address the implications of AI on IP rights. The NO AI FRAUD Act of 2024 was introduced in the House to prevent the unauthorized use of an individual’s likeness or voice by creating a property right, akin to a form of IP rights, in such items. The House Judiciary IP Subcommittee will hold a field hearing in Los Angeles on Feb. 2, addressing identity protection in the age of AI. In late December, The New York Times filed a copyright infringement lawsuit in federal district court against OpenAI and Microsoft for allegedly using millions of the TImes’ newspaper articles without permission to help train chatbots.

Antitrust/Competition. The U.S. Dept. of Justice (DOJ) and the Federal Trade Commission have issued updated guidance to companies regarding the preservation of documents sought in government investigations. The DOJ reportedly plans to file a lawsuit against Apple in the near future, alleging that the company has imposed software and hardware limitations on its iPhones and iPads to impede rivals from effectively competing.

Broadband. The FCC received reply comments in its Open Internet rulemaking on January 17 and is working to develop the final rules and a report and order to be voted on by the full Commission later this year, after which federal litigation is anticipated. Congress is grappling with the future of the Affordable Connectivity Program (ACP), which has assisted nearly 23 million low-income households in paying their monthly Internet bills and was codified as part of the 2021 infrastructure law. The funding for the ACP will expire this spring, and the FCC has started winding down the program. The ACP reportedly needs at least $6 billion to keep running through the end of 2024. The NTIA accepted comments on the National Spectrum Strategy (NSS) in early January and expects to release an implementation plan for the NSS sometime in March.

ISSUES

Section 230/Intermediary Liability/Content Moderation 

Senate: Judiciary Committee CSAM Hearing – The Senate Judiciary Committee held a contentious hearing on January 31 at which CEOs from five major social media platforms (Meta, X, TikTok, Snap, and Discord) testified about the ongoing prevalence and risks of online child sexual abuse material (CSAM) and what is being done to address this crisis. Judiciary Chairman Durbin (D-IL) plans to use this hearing to build momentum for Senate floor action before July on a package of online child safety measures that could include bills passed by both the Judiciary and Commerce Committees (including the Kids Online Safety Act, sponsored by Sens. Blumenthal (D-CT) and Blackburn (R-CT); the EARN IT Act, sponsored by Sen. Lindsey Graham (R-SC); and Chair Durbin’s STOP CSAM Act).

Senate: Graham Section 230 Repeal Legislation – Senate Judiciary Committee Ranking Member Lindsey Graham (R-SC) announced in January that he intends to introduce legislation to repeal Section 230 in the near future, following the Senate Judiciary Committee’s CEO-level hearing on the online CSAM crisis. Graham has reiterated that he does not believe that social media platforms’ promises to self-reform in areas such as CSAM are effective. Allowing the platforms to be sued through a repeal of Section 230 is Graham’s preferred approach. Senator Graham has pledged to go to the Senate floor once a week to ask for an expedited unanimous consent vote on his Section 230 repeal legislation as well as on other bills providing for CSAM carve-outs to Section 230 protection. Graham also wants to promote the legislation he sponsored with Senator Elizabeth Warren  (S. 2597 – the Digital Consumer Protection Commission Act) that would create a new federal agency to regulate tech platforms.

Congress: Invest in Child Safety Act Re-Introduced – On January 30, Reps. Anna Eshoo  (D-CA), Brian Fitzpatrick (R-PA), and Sen. Ron Wyden (D-OR) reintroduced the Invest in Child Safety Act, which would direct more than $5 billion to fund investigations into the creation and sharing of child sexual abuse material online. It would also create an office within the Department of Justice to coordinate efforts across federal agencies.

House: Judiciary Chair Jordan Subpoenas Director of National Intelligence Over Alleged Social Media Censorship – House Judiciary Chair Jim Jordan issued a subpoena to Director of National Intelligence Avril Haines, seeking communications between ODNI and tech groups. The investigation is related to alleged censorship by social media companies regarding false claims about COVID-19 and the 2020 election. The subpoena was issued after ODNI ignored several requests.

California: New Law Will Force Online Platforms to Reveal How They Moderate Hate Speech – Last November, Gov. Newsom signed AB 587 into law.  Among other things, the new law requires social media companies with over $100 million in annual revenue to disclose their terms of service publicly, including information about how content is moderated on their platform. Citing free speech concerns, X recently sued to stop the law from going into effect.  U.S. District Judge William Shubb denied

X’s request for a preliminary injunction. In denying the motion, Judge Shubb agreed that the new law places a substantial compliance burden on social media companies but suggested that the new requirements were not unduly burdensome within the context of First Amendment law.

i2Coalition’s Perspective – i2Coalition will continue its work to educate policymakers about the complexities of the Section 230 debate and threats posed to the entire Internet ecosystem beyond the largest tech social media platforms if uninformed legislation is adopted or legal cases are wrongly decided. In 2023, the i2Coalition joined other prominent tech trade associations in a letter and related efforts directed to the Senate Judiciary Committee to oppose the ill-advised, re-introduced EARN IT Act. The i2Coalition continues to build on its collaboration with key allies in the library and higher education communities to promote a full understanding of the scope of Section 230. The i2Coalition filed an amicus brief with the U.S. Supreme Court in Gonzalez v. Google on Jan. 18, 2023, to advance the Court’s accurate understanding of the scope and impact of Section 230’s immunity protections for Internet intermediary providers. Similarly, in the 118th Congress, the i2Coalition will continue to inform and educate policymakers if misplaced enforcement and procedural approaches to other online problems are proposed (e.g., the DRUGs Act).

Privacy

FTC: Children’s Privacy-COPPA Rule Proposed Amendments – The Federal Trade Commission held a virtual open meeting on January 18, 2024, to discuss proposed changes to the Children’s Online Privacy Protection Rule. The FTC announced proposing amendments to the COPPA Rule to strengthen the protection of personal information collected from children. The proposed changes include expanding coverage to websites with large numbers of child users, changing the definition of “website directed to children,” and allowing general audience platforms to rebut the presumption that all users of uploaded child-directed content are children. Comments on the proposed rule changes are due on March 11. 

 Iowa: Lawsuit Against TikTok for Misleading Content Available to Kids – Iowa is suing TikTok for allegedly hosting inappropriate content for children. The lawsuit accuses the platform of misleading parents about its content and failing to filter out mature content. States like Montana, Indiana, Arkansas, and Utah have also taken legal action against TikTok over similar concerns.

Ohio: NetChoice Files Lawsuit to Block Ohio Online Parental Consent Law – The tech trade group NetChoice has filed a lawsuit against an Ohio law that mandates parental consent for children under 16 to join social media platforms. This is the fourth lawsuit filed by NetChoice against state laws aimed at improving children’s online safety. The group argues that the law violates the First Amendment.

 Senate: Wyden Letter Addresses NSA Purchase of Commercial Browsing Data – The NSA purchases U.S. browsing data for cybersecurity and foreign intelligence purposes. The agency confirmed that it buys commercially available data for its cybersecurity mission and takes steps to minimize the collection of U.S. personal information. Senator Ron Wyden issued a Jan. 25 press release about the matter and called in a letter for new policies to ensure that intelligence agencies lawfully purchase data on Americans.  

 Federal Chief Data Officers Council: New Leadership Announced – Kirsten Dalboe and Robert King are the new Federal Chief Data Officers Council leaders. The council, established by the Foundations for Evidence-Based Policymaking Act of 2018, will end next January unless its charter is extended. They replace Ted Kaouk and Dan Morgan.

Federal Chief Data Officer Council: Input on Synthetic Data Generation – The Federal Chief Data Officers Council has published a request for information (RFI) seeking input on synthetic data generation. The RFI asks for comments on defining synthetic data generation, its applications, challenges, and ethics. Synthetic data generation creates artificial data with characteristics similar to real data to improve model performance, protect privacy, and enhance datasets. President Biden’s executive order on artificial intelligence mentioned synthetic data generation as a privacy-enhancing technology. 

 FTC: Order Prohibits Data Broker from Selling Location Data – X-Mode Social and Outlogic have settled with the Federal Trade Commission over allegations of selling sensitive location data without appropriate safeguards. The companies are prohibited from sharing or selling sensitive location data and must delete previously collected data. The settlement requires them to develop comprehensive privacy programs and ensure informed consent for collecting and using location data. The proposed order will be subject to public comment before finalization.

i2Coalition’s Perspective – i2Coalition works closely with U.S. policymakers to educate about and maximize understanding of the business impacts of privacy and data collection legislation and regulation affecting the technology sector in the U.S. and globally. On Oct. 6, 2022, in Washington, and on Dec. 6 in Brussels, the i2Coalition and eco hosted timely webinars on the status of the EU-US Data Privacy Framework, with panelists from government, industry, and civil society. The i2Coalition will continue to follow EU-US efforts on transatlantic data flows policy making and engage with the responsible U.S. Department of Commerce officials and staff and with our EU allies and partners. In the 118th Congress, we will continue to focus on presenting substantive updates and educational resources to Congress and federal policymakers about the work we are doing and the progress being made with ICANN and NTIA on the development of a sound, workable global access model for domain name registration data meeting the requirements of the GDPR and federal and state laws, and the needs of law enforcement agencies. In Congress and before the Biden Administration, we will continue to emphasize the need to combine enhanced privacy policies with the ability to deploy strong encryption, unencumbered by backdoors, as primary tools we leverage to keep people safe online.

Copyright/IP

House: Legislation Introduced to Prevent the Use of an Individual’s Likeness or Voice – Reps. Salazar (R-FL) and Dean (D-PA) introduced the No Artificial Intelligence Fake Replicas and Unauthorized Duplications (“No AI FRAUD”) Act of 2024.  The legislation seeks to prevent the unauthorized use of an individual’s likeness or voice by creating a property right, akin to a form of IP rights, in such items. The bill allows for a few affirmative defenses; otherwise, violators of the legislation would be subject to statutory damages.

House: Feb. 2 Los Angeles Field Hearing on AI and Identity Protection – The House Judiciary Subcommittee on Courts, Intellectual Property, and the Internet will hold a field hearing ( 9 am PT, 12 pm ET) in Los Angeles on February 2 entitled  “Artificial Intelligence and Intellectual Property: Part II – Identity in the Age of AI.” Knowing that AI is presenting major concerns for artists and the creative community, the hearing location and timing were selected to coincide with activities around the 2024 Grammy Awards to be held on Sunday, Feb. 4.

 Senate: Judiciary IP Subcommittee Hearing on Patent Eligibility Legislation – The Senate Judiciary IP Subcommittee held a Jan. 23 hearing on the Patent Eligibility Restoration Act (PERA). The legislation (S. 2140) seeks to overturn current Supreme Court precedent by eliminating judicial exceptions to patent eligibility, making essentially “any process that cannot be practically performed without the use of a machine” or “manufacture” eligible for patent protection. At the hearing, Senators Thom Tillis (R-NC) and Chris Coons (D-DE), who introduced the bill in the summer of 2023, spoke in support of the legislation.  However, critics of the bill were quick to point out how the bill’s new standard could lead to a considerable amount of gamesmanship in the patenting process.

Federal Court: NY Times Sues OpenAI for Copyright Infringement – In late December in a federal district court, The New York Times sued OpenAI and Microsoft for allegedly using millions of their newspaper articles without permission to help train chatbots. In the past, OpenAI has argued that using copyrighted works to train AI products is permitted under the fair use doctrine.  If successful, it is estimated that the Times could win billions of dollars in damages. Additionally, the Times is requesting that OpenAI be required to destroy its chatbot models and any training sets that have ingested the company’s materials.

i2Coalition’s Perspective – i2Coalition will continue to actively fight for the preservation of Section 512 safe harbors of the DMCA that its members have relied upon, including particularly the conduit provisions, to launch and operate their businesses successfully without being deluged with litigation threats. We will work to educate policymakers in Congress and the Biden administration to ensure balanced policy outcomes for our members. In addition, the i2Coalition will engage through outreach, dialog, and the public comments process in any future Canadian copyright consultations to urge continuity of balanced approaches in consideration of any reforms of Canada’s safe harbor framework for online intermediaries.

Cybersecurity

U.S. Secret Service: Plans to Reestablish Cyber Investigations Advisory Board – The United States Secret Service has decided to revive the Cyber Investigations Advisory Board, a federal committee initially established in 2020 to enhance the agency’s investigative practices. The board will offer guidance on cybercrime and cybersecurity issues and will serve as a forum for industry experts to interact with and advise the Secret Service.

CISA: Agencies Ordered to Mitigate Exposure to Software Bugs – The Cybersecurity and Infrastructure Security Agency ordered all civilian government agencies to address critical software bugs in the widely used Connect Secure VPN by Ivanti. Up to 1,700 devices in the US have been exploited, and multiple threat actors are now using the bug. 

Biden Administration Announces Deal with EU on Cyber Trust Mark – The Biden Administration has announced a plan to secure smart devices from cyberattacks. The plan includes a U.S. Cyber Trust Mark label and a collaboration with the EU to create a standardized system. Companies like Best Buy, Amazon, Samsung, and LG Electronics will educate consumers about the new system. This initiative addresses concerns about the security of Internet-connected devices after cyberattacks on U.S. water facilities.

 Biden Admin.: Relaxing the Requirements for Federal Cyber Contracting Jobs – The National Cyber Director is working to eliminate the requirement for four-year degrees for certain federal cybersecurity contracting jobs to increase hiring and diversity. There is a significant shortage of cybersecurity professionals, and the Biden administration plans to recruit from community colleges to fill open positions. The goal is to improve cybersecurity education and grow the federal cybersecurity workforce.

FCC: Industry Urges FCC To Keep Cyber Trust Mark Voluntary – Trade associations are urging that the Cyber Trust Mark IoT security labeling program should remain voluntary and focus initially on device-level certification. They recommend leveraging existing standards and allowing self-attestation. The associations also emphasize the importance of consumer education and suggest implementing preemption and safe harbors for program success.

FCC: Cybersecurity Pilot for Schools – The FCC is proposing a pilot program for cybersecurity in schools and libraries. Comments were requested by January 29th, and replies by February 27th. The program aims to enhance cybersecurity measures in educational institutions.

GAO Report: State Dept. Bureau of Cyberspace and Digital Policy Faces Challenges Hindering Effective Cyber Efforts – A report by the Government Accountability Office concluded that the State Department’s Bureau of Cyberspace and Digital Policy is struggling to clarify roles and responsibilities due to the lack of a global agreement on cyber diplomacy. The report also updates previous recommendations to involve other federal agencies and use data and evidence in developing the cyber bureau.

GAO Report: FDA Cyber Agreement on Medical Devices Needs Updating – According to a recent GAO report, medical devices have cybersecurity vulnerabilities that pose risks to hospital networks and patients. The FDA needs to update its five-year-old cybersecurity agreement with CISA to improve coordination and clarify responsibilities. The report recommends updating the FDA-CISA agreement to reflect organizational and procedural changes, a recommendation agreed upon by both agencies.

i2Coalition’s Perspective – As policymaker concerns and efforts intensify around how to improve cybersecurity and guard against growing attacks and threats, the i2Coalition has increased its monitoring of this area. We will continue to engage in targeted policy matters and proceedings where the i2Coalition’s participation can enhance understanding and support improvements. In this regard, on November 14, 2022, the i2Coalition filed comments with CISA in response to the RFI on CIRCIA implementation. On March 3, 2023, the i2Coalition filed comments on NIST’s Cybersecurity Framework 2.0 Concept Paper. On November 6, 2023, the i2Coalition filed comments on the public draft of NIST’s Cybersecurity Framework 2.0.

Antitrust/Competition

DOJ/FTC: Updated Guidance Regarding the Preservation of Documents Sought in Government Investigations – The Federal Trade Commission (FTC) and Department of Justice (DOJ) stated that companies must preserve communications for government investigations, even when using messaging platforms or other collaboration tools that automatically delete such messages. This requirement applies to various forms of legal requests, and companies may face penalties if they fail to retain the necessary documents. The FTC has taken action against companies for not complying with these preservation requirements.

DOJ: Apple Expected to Face Antitrust Lawsuit – According to press reports, the Justice Department is preparing to file an antitrust lawsuit against Apple as early as March. Sources report that the complaint will echo concerns raised by such companies as Spotify, Tile, and Beeper by alleging that Apple has imposed software and hardware limitations on its iPhones and iPads to impede rivals from effectively competing.

FTC: Public Comments Invited on Consumers’ Right to Repair – The FTC is seeking public comment on a petition by the U.S. Public Interest Research Group and iFixit to protect consumers’ right to repair products. The petition aims to make independent repair more accessible and ensure the availability of replacement parts. It also calls for consumers to have the freedom to choose their repair providers and to fix products themselves. The public comment period ends on February 2.

FTC: Victory in Court Ruling to Temporarily Block Healthcare Data Provider – The acquisition of DeepIntent by healthcare data provider IQVIA has been temporarily blocked by the Federal Trade Commission (FTC). The FTC believes that the acquisition would create a dominant position for IQVIA in the market for pharmaceutical advertising aimed at doctors, harming rivals and potentially increasing costs for drugmakers. IQVIA is evaluating its options and may continue to pursue the merger after further proceedings with the FTC.

i2Coalition’s Perspective – i2Coalition monitors but has not actively engaged on this issue.

Trade/Tax

USTR: 2023 Notorious Markets List – On January 30. the USTR released the 2023 Review of Notorious Markets for Counterfeiting and Piracy (NML). The report’s highlights included calling out a number of Chinese-based markets and a Chinese cloud storage company for failing to protect U.S. intellectual property. The agency’s annual Notorious Markets report also included seven physical markets in China that USTR said are known for the manufacture, distribution, and sale of counterfeit goods. Altogether, the report identifies 39 online markets and 33 physical markets that are reported to engage in or facilitate substantial trademark counterfeiting or copyright piracy. As in its prior reports from the past few years, the USTR made clear that the focus of the NML is on the actions of owners, operators, or users that engage in or facilitate infringement using the technologies, not on the underlying technologies themselves.

WTO: Digital Transmissions Customs Duties – Nearly 170 global industry groups and organizations — including BSA-The Software Alliance, the Motion Picture Association and the U.S. Chamber of Commerce — issued a joint statement calling on the World Trade Organization to extend an agreement to prohibit customs duties on digital transmissions. The extension is set to expire on March 31 unless all members agree to extend it at the WTO’s Thirteenth Ministerial Conference at the end of February.

House: Bipartisan Tax Deal Clears Ways and Means – On January 19, the House Ways and Means Committee passed a bipartisan tax package out of committee on a 40 to 3 vote after a markup that lasted over four hours as Democrats unsuccessfully attempted to strengthen deductions for families and individuals. H.R. 7024, as amended, expands the Child Tax Credit and provides a trio of relief for businesses, including the deductibility of domestic research and development investments in year one rather than over five years, retroactive to January 1. Only three Democrats ultimately voted against the measure on final passage. The House targeted passing the bill during the week of Jan. 29. A strong vote in the House should help the odds of Senate passage, given that the White House has endorsed the deal.  

i2Coalition’s Perspective – i2Coalition continues to work for balanced trade agreements that foster digital trade, and we generally support efforts to put trade with China on a more level footing. We support the global digital trade principles articulated in the global industry letter to the G20. We will continue our engagement with USTR in support of those principles and against non-tariff trade barriers. The i2Coalition will also continue our work with our EU-based members on the DSA, DMA, and the NIS2 Directive toward balanced and transparent regulations, including providing input on major relevant U.S. policy discussions having an impact on evolving global intermediary liability principles (e.g., the Section 230 debate in the U.S. Congress). The i2Coalition will continue to underscore and educate USTR officials in the Special 301 proceedings about the key point that USTR should not confuse “notorious markets” with neutral intermediaries such as Internet infrastructure providers. The i2Coalition’s efforts before USTR are succeeding, as demonstrated in the 2023 Review of Notorious Markets for Counterfeiting and Piracy report issued on January 30, 2024, in which not one of our Internet intermediary members or any other traditional Internet infrastructure company was cited in the online markets list.

Artificial Intelligence

FTC:  Inquiry Into AI Developers – The FTC announced on Jan. 25 that it will investigate partnerships and investments between AI developers. The FTC aims to assess whether these agreements affect AI industry competition. The FTC says it will prioritize business incentives and establish clear rules for using and managing AI inputs. The agency aims to use its authority to question providers and developers, and remedies may include deleting AI models and unlawfully collected data. The FTC’s stated goal is to prevent law violations, protect privacy and security, and ensure fair competition. The FTC cited Section 6(b) of the FTC Act in launching the investigation.

FTC: Tech Summit Focusing on AI – The FTC Tech Summit on January 25, 2024, facilitated discussions on the impact of artificial intelligence (AI) across various technology layers. The event brought together diverse perspectives from academia, industry, civil society, and government agencies to explore the potential and risks associated with AI. The summit also focused on real-world impacts of AI on consumers and competition.

NSF: New public research infrastructure for AI – As required by the Biden Executive Order on AI, on Jan. 24, the National Science Foundation (NSF) announced a two-year pilot project to implement the National AI Research Resource, or NAIRR. The NAIRR pilot will provide American researchers and educators with access to advanced computing, datasets, powerful AI models, and user support.

NTIA: Administrator Davidson Notes Huge Risks and Benefits of AI – At the 2024 CES in Las Vegas, NTIA Administrator Alan Davidson discussed the risks and benefits of AI. He highlighted the potential benefits of AI for the economy but also mentioned the risks of safety, security, privacy, bias, disinformation, and impact on the labor market. Davidson emphasized the need for policymakers to address these risks and mentioned President Biden’s executive order on AI. The NTIA has launched an accountability initiative to examine AI openness and risks associated with different AI models.

Senate: Bipartisan Group Supports Creating New Agency to Regulate AI – As the U.S. Senate prepares to develop a comprehensive legislative solution regulating future uses of AI, a group of bipartisan Senators, including Michael Bennett, Elizabeth Warren, Peter Welch, and Lindsey Graham, is urging Senate Majority Leader Chuck Schumer to include a proposal that would create a new federal agency to regulate future uses. They believe such an agency is necessary to protect consumers, foster competition, and safeguard the public interest. This proposal comes amidst growing concerns about AI’s potential to disrupt the job market and outperform humans in various fields.

House: Bipartisan Lawmakers Introduce Legislation to Regulate AI by Federal Agencies – A group of House lawmakers introduced the Federal Artificial Intelligence Risk Management Act to regulate the use of AI by federal agencies. The act would require agencies to follow the National Institute for Standards and Technology’s AI Risk Management Framework and ensure contractors comply. The initiative aims to safeguard against the potential risks of AI as the government expands its use of the technology.

House: Employment Standards Hurting Government AI Workforce – The House Oversight Subcommittee on Cybersecurity discussed how federal employment standards for AI-trained employees discourage workers from diverse educational backgrounds. Subcommittee Chair Nancy Mace emphasized the need to recognize the qualifications of upskilled employees who may possess practical skills and certifications, especially in fields like cybersecurity, where there is a significant shortage of workers.

House: Financial Services Committee Forms AI Working Group – The House Financial Services Committee has created an AI working group to study the impact of AI on the finance and housing sectors. Led by Representatives French Hill and Stephen Lynch, the group aims to explore the potential and risks of AI technology, leverage it for a more inclusive financial system, and make the US a leader in AI development.

House: Rep. Khanna Calls for Economic Security for Workers from AI – Rep. Ro Khanna from California has warned about the potential risks of AI on the working class. He emphasized the need for federal policy that would give workers a say in AI decisions and ensure their economic security. Khanna proposed that workers should receive a share in company profits and compensation based on the company’s performance. He also called for active worker participation in decision-making related to AI in public companies.

NIST: Reports Find AI Risk When Exposed to Untrustworthy Data – AI systems can malfunction from untrustworthy data, according to NIST. Cybercriminals can intentionally corrupt AI by feeding bad data, leading to unintended behavior. According to NIST, AI systems can malfunction due to unreliable data. Such issues are caused by poisoning and abuse attacks. Poisoning attacks occur during AI training, caused by feeding bad data, while abuse attacks occur during AI operations, caused by providing deceptive input.

GAO Report: Federal Agencies Must Enhance Tech Info Sharing with Congress – The GAO recommended federal agencies document changes in laws while implementing emerging technologies like AI-powered medical devices and drones. The FDA, DOT, and FCC accepted their three recommendations and are working to regulate emerging technologies domestically and internationally, including AI and 5G and 6G networks. The report also emphasized the rapid pace of technological development and its potential impact on innovation, economic growth, and public safety. 

OPM:  Authorization of Direct Hire Authority to Support Biden AI EO – Federal agencies can now use direct hire authority and temporary excepted service appointments to support President Biden’s executive order on artificial intelligence (AI). The Office of Personnel Management (OPM) has issued a memo authorizing government-wide direct hire authority for four AI-related positions and temporary excepted service appointments for tasks related to the order. OPM will also coordinate a pooled-hiring action to recruit AI talent and issue guidance on pay flexibilities for AI and other technical positions.

U.S. Dept. of Labor: Chief AI Officer Named – Louis Charlier has recently been named as the Chief AI Officer for the Labor Department. As part of his new role, he will manage and coordinate the department’s use of Artificial Intelligence, promote AI innovations, and mitigate any risks associated with this technology. Charlier’s appointment comes after President Joe Biden’s AI executive order, which prompted federal agencies to appoint their own CAIOs. 

i2Coalition’s Perspective – i2Coalition monitors but has not actively engaged on this issue.

Telecommunications

FCC: Open Internet NPRM – The FCC accepted reply comments in its Open Internet rulemaking on January 17.  Similar to the opening comments, on reply some parties that oppose the FCC’s proposed classification of BIAS as a Title II “telecommunications service” previewed the legal arguments that will eventually be made in expected federal court challenges of the future FCC rules and report and order to be issued on a fast track later this year. Those arguments include that the FCC lacks authority for the rulemaking because the issue of BIAS regulation is governed by the “major questions doctrine” and thus subject to Congressional authority. The FCC reportedly hopes to issue a report and order in the rulemaking in the spring of 2024, and the vote by the Democrat-controlled FCC  is expected to be 3-2 along party lines.

FCC: Comments on Broadband Data Collection Due February 19 – The Federal Communications Commission (FCC) is seeking public comments by Feb. 19 and replies by March 5 regarding its broadband data collection challenge process. The FCC is required to submit a report to Congress on the data collection process and determine if any tools are necessary to improve data accuracy.   

Congress: Bipartisan-Bicameral Bill to Fund ACP; FCC Starts Process for ACP Shutdown – Rep. Yvette Clarke and Sen. Peter Welch introduced the Affordable Connectivity Program Extension Act, which proposes to allocate $7 billion for FY 2024. The FCC estimates the program may run out of its original $14.2 billion allocation by April. However, Congress’ willingness to provide more funding is uncertain, given concerns among top Republicans. Nonetheless, several Republicans have signed on as sponsors, including Sen. J.D. Vance, Sen. Kevin Cramer, Rep. Brian Fitzpatrick, and NY Reps. Anthony D’Esposito, Mike Lawler, and Marc Molinaro. On the other hand, the FCC is winding down the ACP and has issued guidance to providers. The final date of the ACP will be announced about 60 days before the end of its last fully funded month. New enrollments will be frozen on February 8.

Congress: 174 Mayors Send Letter Urging Congress to Extend ACP – Over 170 mayors from U.S. cities are urging Congress to renew funding for the FCC’s ACP program, which is expected to run out of its current $14.2 billion allocation in April. The mayors emphasize the success and wide support for the ACP in bridging the digital divide and call for an extension to help Americans access resources and strengthen the economy.

Senate: Democrat Support for E-Rate Schools and Social Media Limitation Legislation  – Sen. John Fetterman  (D-PA) has announced he supports GOP-led legislation to limit the ability of children to access social media in schools that receive federal broadband subsidies. Fetterman’s support could help the prospects of this legislation, which Senate Commerce ranking member Ted Cruz (R-TX) and other Republicans introduced last fall. He is the first Democrat to back the bill, S. 3074, known as the Eyes on the Board Act. The legislation specifically focuses on schools that receive broadband subsidies from the Federal Communications Commission’s long-running E-Rate program, which subsidizes Internet connectivity for schools and libraries using funds from the agency’s Universal Service Fund.

House: E&C Ranking Member Pallone Robocall Legislation – On January 29,  Energy and Commerce Committee Ranking Member Frank Pallone, Jr. (D-NJ) introduced the Do Not Disturb Act, comprehensive legislation to protect consumers from the bombardment of dangerous and unwanted calls and texts that have been exacerbated by the Supreme Court’s decision in Facebook, Inc. v. Duguid which undermined anti-robocall consumer protections. The legislation was cosponsored by Reps. Jan Schakowsky (D-IL), Doris Matsui (D-CA), Darren Soto (D-FL), and Eric Sorensen (D-IL), who are each leading specific provisions in the legislation.

FCC:  Pole Attachment Order in Effect on February 12 – The FCC announced that a new order regarding pole attachment dispute resolutions will go into effect on February 12. This order aims to expedite the resolution of disputes related to the use of utility poles for attaching communication equipment. The FCC also adopted additional measures on transparency requirements and has invited comments on rules that could speed up the deployment of communication infrastructure.

FCC: Rosenworcel asks Autos and Wireless Providers to Help Protect Domestic Abuse Survivors – FCC Chairwoman Jessica Rosenworcel contacted automakers and wireless service providers, urging them to help protect domestic violence survivors from connected car tools misuse. She asked companies like Ford, General Motors, Honda, and others to provide details on their connected car systems and support for survivors. Rosenworcel also contacted AT&T, Verizon, and T-Mobile on their connected car services and geolocation data handling.

FCC: Five Telecom Providers Complete Rip-and-Replace – The FCC reports that only five telecom providers have completed the process of removing Huawei and ZTE equipment from their networks. Participants have cited lack of funding, supply chain issues, labor shortages, and delays in review times as major obstacles. The FCC has approved $396.5 million in disbursements and granted deadline extensions for some participants, but no deal has been reached yet on the requested $3.1 billion allocation for full reimbursement. 

FCC: Comments Deadline on Early Termination Fee Ban Due February 5 – The Federal Communications Commission (FCC) is seeking comments on a proposal to ban early termination fees for cable TV and satellite services. The proposal also requires companies to provide prorated refunds for canceled services. Comments are due by February 5th, with replies due by March 5th.

FCC: Chair Rosenworcel 2023 in Review – FCC Chairwoman Jessica Rosenworcel praised the agency’s broadband and mobile achievements in 2023, including enrolling 7 million households in the Affordable Connectivity Program. She emphasized the need for continued progress and support from Congress. Rosenworcel also highlighted the FCC’s work in broadband mapping, closing the homework gap, and space innovation. Additionally, she expressed excitement about using satellites to improve mobile phone operations in areas without terrestrial service and the FCC’s focus on consumer protection and optimizing limited spectrum resources through AI initiatives.

NTIA: All States and Territories Submit BEAD Proposals – All 56 states and territories have submitted initial proposals for the broadband, equity, access, and deployment (BEAD) program to the National Telecommunications and Information Administration (NTIA). Once NTIA approves the volume 1 proposal of an entity, they can begin the BEAD challenge process.

NTIA: BEAD Rules Modified To Align with Other Agencies – The NTIA has modified its BEAD program rules to align with Treasury Department and FCC policies. Providers can use program support without restriction, upgrade equipment without prior approval, and stakeholders can issue subawards to reduce administrative costs. Industry groups provided positive feedback, appreciating the balance between accountability and flexibility.

Commerce Dept. Seeks Comment on Public Wireless Supply Chain Fund – The Department of Commerce extended the period for the Public Wireless Supply Chain Innovation Fund Grant Program forms by 30 days. The program aims to promote open radio access networks and advanced spectrum sharing with a $1.5B federal fund. The department is inviting feedback from the general public and other agencies to assess the impact of the proposed information collections and minimize the reporting burden.

Senate: Lujan Advocates for ACP/Talks Rolling Into USF – In a recent podcast interview, Senate Broadband Subcommittee Chair Ben Ray Lujan (D-NM) advocated for the bipartisan Affordable Connectivity Program Extension Act to extend the program through the end of the year with a proposed budget of $7 billion. He also aims to integrate the ACP’s future with reforms to the Universal Service Fund for better internet access in rural and low-income communities.

FCC:  Approves Jan. Agenda & Releases February Agenda – The FCC approved mandatory outage reporting, orbital debris mitigation, and misrouted 911 call prevention. The commission also proposed and approved pirate radio fines against five Florida broadcasters. The outage reporting order mandates the use of the disaster information reporting system. The orbital debris order addresses concerns about increasing satellite applications. The FCC released draft proposals for its February meetings which aim to simplify emergency alerts in multiple languages, codify robocall rules, license in-space servicing missions, mitigate orbital debris, and promote efficient spectrum use for wireless microphones.

FCC: Comments on 24 GHz Spectrum Due on February 29 – The FCC wants feedback on a proposal to align rules for the 24 GHz band with decisions made at the 2019 World Radiocommunication Conference. The proposal aims to protect passive sensors for weather forecasting and scientific research in the 23.6 GHz-24.0 GHz band while promoting commercial use of the 24.25-24.45 GHz and 24.75-25.25 GHz bands. Comments are due by Feb. 28, and replies by March 14.  

i2Coalition’s Perspective – The i2Coalition filed comments in the FCC’s Open Internet proceeding on December 14, 2023, to protect the interests of our members that provide VPN, stand-alone DNS, CDN services, web hosting, and data storage services. Our comments pointed out that none of those services are within the scope of broadband Internet access service (BIAS), as defined by the FCC. We will carefully monitor the course of the rulemaking and participate actively as necessary before the agency over the next several months as the FCC develops a proposed decision.

Energy/Environment

Biden Admin.: Funding to Advance Net-Zero Projects for Federal Facilities – The U.S. Department of Energy has announced $104 million in funding for clean energy projects at 31 Federal facilities, in line with President Biden’s sustainability goals. The projects aim to reduce greenhouse gas emissions, save taxpayers money, and create a healthier environment. The program also aims to leverage private investment and promote public-private partnerships.

Biden Admin.: Slate of Climate Rules by March/April 2024 – The Biden Administration has signaled it will issue a slate of climate-focused regulations by April to avoid the potential of a new Administration from repealing them under the Congressional Review Act. Rules under development include EPA’s new climate rule for power plants, updated rules to reduce soot pollution, stronger water pollution standards for coal plants, new tailpipe emission and fuel economy rules for cars and trucks through the end of the decade, an overhaul of oil and gas leasing rules, and the SEC’s long-awaited corporate climate disclosure rule.

i2Coalition’s Perspective – i2Coalition monitors but has not actively engaged on this issue.

RELEVANT HEARINGS & EVENTS TRACKED BY i2COALITION IN JANUARY 

January 10 

• Senate Homeland Security, Full Committee, “Harnessing AI to Improve Government Services and Customer Experience.” 
• Senate Judiciary, Subcommittee on Privacy, Technology, and the Law, “Oversight of AI: The Future of Journalism.”

January 11 

• House Energy and Commerce, Subcommittee on Communications and Technology, “Safeguarding Americans’ Communications: Strengthening Cybersecurity in a Digital Era.” 

January 17

• House Energy and Commerce, Subcommittee on Communications and Technology, “Leveraging American Communications Leadership with Open Radio Access Networks.” 
• Senate Oversight, Full Committee, “The Cyber Safety Review Board:  Expectations, Outcomes, and Enduring Questions.” 
• House Oversight, Subcommittee on Cybersecurity, Information Technology, and Government Innovation, “Toward an AI-Ready Workforce.” 

January 18 

• Senate Banking, Full Committee, “National Security Challenges: Outpacing China in Emerging Technology.”
• House Education and Workforce, Subcommittee on Early Childhood, Elementary, and Secondary Education, “Preparing Students for Success in the Skills-Based Economy.” 

January 23

• Senate Judiciary, Subcommittee on Intellectual Property,  “The Patent Eligibility Restoration Act–Restoring Clarity, Certainty, and Predictability to the U.S. Patent System.” 

January 24

• Senate Judiciary, Subcommittee on Criminal Justice and Counterrorism, “AI in Criminal Investigations and Prosecutions.” 

January 31

• Senate Banking, Subcommittee on Housing, Transportation, and Community Development, “Artificial Intelligence and Housing: Exploring Promise and Peril.” 
• Senate Judiciary, Full Committee, “Big Tech and the Online Child Sexual Exploitation Crisis.”
• Senate Homeland, Business Meeting (Markup)
  • S.3594, “Source code Harmonization And Reuse in Information Technology Act” (SHARE IT Act)
  • S.3635 , a bill to improve the President’s Cup Cybersecurity Competitions.
• House Energy and Commerce, Subcommittee on Communications and Technology, “TV Timeout: Understanding Sports Media Rights.”
• House Select Committee on the Chinese Communist Party (CCP), “The CCP Cyber Threat to the American Homeland and National Security.”