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Bipartisan Amendment Passed

Thune, Verizon's McAdam Press Hill to Negotiate on Bipartisan Open Internet Legislation

Senate Commerce Committee Chairman John Thune, R-S.D., said the successful passage of his bipartisan net neutrality amendment -- ultimately nonbinding and attached to a budget resolution (S.Con.Res-11) -- is a sign that Congress should legislate on net neutrality. Verizon CEO Lowell McAdam sent a letter to Thune and other Commerce leaders Friday that also encouraged bipartisan net neutrality legislation to sidestep the FCC net neutrality order. Thune’s symbolic amendment received the backing of Senate Commerce Committee ranking member Bill Nelson, D-Fla., and Sen. Joe Manchin, D-W.Va., another Commerce member. The amendment passed by voice vote, as Nelson predicted Thursday (see 1503260050). It was one of the few out of many telecom amendments that advanced to passage.

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This amendment underscores that Congress has a role and responsibility to set policy for protecting an open Internet,” Thune said in a statement Friday. “Passage of this amendment is a good omen that Congress can come together, on a bipartisan basis, to address uncertainty facing the Internet and consumers.”

Thune originally crafted a more-partisan version warning against regulatory overreach and “public utility regulations.” The revised amendment text made no such mentions.

Congress should come together on a bipartisan basis and pass a bill that protects the open Internet in a way that avoids the collateral damage that will result from the FCC’s actions,” Verizon’s McAdam told Thune, Nelson and their House counterparts Friday. “The courts inevitably will find that the FCC’s actions were improper, or a future FCC will reverse course again, so Congress will have to address this issue one way or another, sooner or later. It is better to do so now, proactively.” Also Friday, FCC Chairman Tom Wheeler likened net neutrality rules to insurance for the Internet (see 1503270044">1503270044).

McAdam urged a “21st century policy framework” to address the underlying jurisdictional issues and lamented the “two decades since the last meaningful update of the laws” for telecom. His call for net neutrality legislation echoed recent remarks from Verizon General Counsel Craig Silliman (see 1503240057). McAdam also pressed the Commerce leaders to act on spectrum policy, slamming Dish Network’s use of designated entities in the recent AWS-3 auction. McAdam cited the FCC's “contemplating rules for the upcoming incentive auction that will intentionally withhold spectrum from the very companies that are investing, creating jobs and serving customers,” he wrote. “Congress should ensure that our spectrum policies are aligned with the overall economic interests of the country and are not subject to abuse to serve the interests of particular entities.”

A harder-line amendment from Senate Judiciary Antitrust Subcommittee Chairman Mike Lee, R-Utah, failed to advance but Lee “seems like he would like to” pursue further legislation attacking the FCC order, his spokeswoman told us Friday. Lee’s symbolic amendment outlined a preference for prohibiting Communications Act Title II reclassification of broadband, a key feature of the FCC order.

Other senators floated symbolic telecom amendments amid the hundreds proposed. Sens. Dianne Feinstein, D-Calif., and Mark Kirk, R-Ill., succeeded in passing by unanimous consent an amendment on “detection, investigation, and prosecution of the owners and operators of websites who knowingly allow such websites to be used to advertise commercial sex with children over the Internet.” Sens. Al Franken, D-Minn., and Deb Fischer, R-Neb., successfully advanced an amendment on “programs that expedite the deployment of broadband to rural areas.” Sen. Mark Warner, D-Va., secured passage by unanimous consent of an amendment on “protecting the personal information of consumers from data breaches, which may include providing notification to affected consumers or enhancing data security programs.” Warner’s amendment had three co-sponsors: Sens. Mike Crapo, R-Idaho; Angus King, I-Maine; and Kirk. Sen. Dan Coats, R-Ind., succeeded with a cybersecurity amendment by unanimous consent. Coats’ amendment called for “increased sharing of cybersecurity threat information while protecting individual privacy and civil liberties interests” and had Warner's backing.

Many other amendments didn't advance, lost in a process that kept the Senate in session until after midnight Thursday. Sen. Marco Rubio, R-Fla., offered what his spokeswoman termed a “failed” amendment “to support Internet freedom and the current multi-stakeholder governance of the Internet.” Lee had another amendment on the U.S. maintaining oversight over ICANN, advising for “the governance of the Internet and maintaining United States oversight over the management of the Internet until Congress votes to end such oversight by the amounts provided in such legislation for those purposes.” Sen. Ted Cruz, R-Texas, pushed an amendment to prevent Internet taxes and another that would have called for prohibiting restrictions on political speech on the Internet. Thune and Sen. Ron Wyden, D-Ore., wrote amendment text “to permanently extent the Internet Tax Freedom Act and to establish rules for taxation of digital goods and services.” Manchin crafted an amendment on modernizing the FCC Lifeline program.

Fischer was responsible for two other unsuccessful amendments dealing with the FCC. One would have revised FCC transparency policies on the regulatory fees and cost recovery, making fees better correspond to the benefits for those that pay them. Another amendment from Fischer and Sen. Roy Blunt, R-Mo., would have sought to “prohibit FCC research on certain news/editorial decision making.” A GOP aide provided a summary saying this amendment emanated from concerns surrounding the FCC’s canceled Critical Information Needs study. Fischer believes that despite that study’s cancelation, Congress needs to impose “additional safeguards” to prevent FCC studies that would violate free speech, the aide said.

Thune and Sen. Jerry Moran, R-Kan., used the marathon voting session to experiment with Periscope, a new social media video application. “We want to make sure we have the right rules of the road in place,” Thune said in one video from the Capitol, saying his amendment “would put Congress on record” in support of open Internet legislation.

The National Association of Manufacturers sent a letter to senators Thursday praising Thune’s net neutrality amendment and the cybersecurity amendment from Coats. The group “supports Congressional action to establish clear rules preserving an open Internet,” said Senior Vice President-Policy and Government Relations Aric Newhouse. “This legal certainty will drive more investment in our telecommunications infrastructure leading to innovation across the manufacturing sector.”