Blackburn, Latta to Lead Key House Panels Overseeing FCC, FTC

“She is and has been a hard-driving person who embraced communications policy when she was first assigned to the committee and made it a priority,” an unsurprised former Rep. Lee Terry, R-Neb., told us. “She understands the policies. She is high energy and tenacious. There are so many issues to work in that space, she may be one of the few who can handle that load.” He anticipated one of the big challenges is the mix of issues meriting attention, from spectrum value to net neutrality to video policy. He expects she may take up USF and particularly the Lifeline program, a source of frequent GOP critique. Terry, now at Kelley Drye, is a former Communications Subcommittee vice chairman and former chairman of the Commerce Manufacturing and Trade Subcommittee who lost his re-election bid in 2014.

Days earlier, Free Press Policy Director Matt Wood told us Blackburn stands apart from other contenders in a bad way. “Congresswoman Blackburn is one of the most combative figures on the subcommittee -- a marked contrast to the cooperative tone that Congressman Walden sometimes tried to strike,” said New America Open Technology Institute policy counsel Josh Stager. “There could be less interest in bipartisanship on the subcommittee now.”

Blackburn “is quite hostile to local authority to build Internet networks,” emailed Institute for Local Self-Reliance Community Broadband Networks Director Christopher Mitchell. “Though conservatives often talk about the importance of local decision-making, she seems to oppose it in these matters -- supporting measures by AT&T and Comcast among others to limit local Internet choice. I will be curious to see what her main focus is as chair -- whether it will be to push legislation that will improve Internet access or simply to hand AT&T and Comcast the keys to the kingdom.” He said he fears Blackburn believes competition is letting the big companies write the rules, what he dubbed “crony capitalism,” and bad for independent businesses that “can't write her campaign the same checks that big cable and telephone companies can.”

Free State Foundation President Randolph May believes Blackburn will “make an excellent chair,” citing his personal experience working with her: “I know firsthand how passionately she feels about reorienting communications and Internet policy in a free market direction. And I know she wants to see the net neutrality regulations curtailed. She obviously understands the issues in a substantive way and will be ready to get right to work.”

Telecom and media industry officials, who will soon be under the purview of these leaders, lauded the choice of Blackburn. Said USTelecom President Jonathan Spalter: “A longtime and tireless advocate for broadband issues, particularly in rural areas." Telecommunications Industry Association Senior Vice President-Government Affairs James Reid touted Blackburn’s “tremendous experience” on these issues: “She is keenly aware of the need for increased investment in our nation’s telecommunications infrastructure, and for policies that encourage private sector investment.” NAB President Gordon Smith said he wants to work with Blackburn to ensure “our communications law and a reformed FCC enable a competitive media marketplace.” Wireless Infrastructure Association President Jonathan Adelstein said Blackburn “has proven herself to have a deep understanding of and appreciation for the vital role wireless infrastructure plays.”

Other contenders for the spot were believed to be Latta and Rep. John Shimkus, R-Ill. House Commerce Republicans shifted many top positions. Rep. Leonard Lance, R-N.J., will be the vice chairman of the Communications Subcommittee under Blackburn. Shimkus, who competed against Walden for the full committee chair in November, will remain chairman of the Environment Subcommittee, averting a six-term term limit by a modified subcommittee jurisdiction now overseeing the Clean Air Act. Rep. Joe Barton, R-Texas, also attempted to return to the full committee chairmanship and will now become Walden’s Commerce vice chairman, a position previously held by Blackburn.

Latta Overseeing FTC

Latta assumes another key Commerce subcommittee chairmanship for telecom and tech policy -- the subcommittee formerly known as Commerce Manufacturing and Trade and now the Digital Commerce and Consumer Protection Subcommittee, which oversees the FTC. His vice chairman will be Rep. Gregg Harper, R-Miss. A committee aide assured us there would be no major changes in jurisdiction, a speculation earlier last year (see 1607270043). “Chairman Walden wanted the name to better reflect Energy and Commerce’s commitment to innovation and the forward-looking nature of the subcommittee’s work,” the aide said. Latta "will be meeting with Chairman Walden in the coming days to discuss subcommittee priorities and where their focus will be," his spokesman said.

“Technology is changing the face of commerce, and this subcommittee will give us the opportunity to ensure that manufacturers and consumers across the country receive the benefits and protections needed to grow our economy,” said Latta, who replaces Rep. Michael Burgess, R-Texas, as chairman. “I’m excited to continue to serve in a role that helps shape policy relating to the Internet of Things and data security. There is incredible potential in new technology and ensuring that the Federal government takes the right approach to allow the private sector to innovate is essential.”

Latta “is a hard worker but quietly,” said his former colleague Terry, suggesting he has the leadership ability to run the subcommittee “without any hesitation.” He said Latta’s subcommittee primarily will have to tackle oversight for how the National Highway Traffic Safety Administration implements the many new rules from the Fixing America's Surface Transportation Act and the FTC. He cited the FTC’s reduction in numbers and FTC Chairwoman Edith Ramirez “is rumored to have a private sector job and will leave the FTC soon,” Terry said, which will mean several new commissioners and chairman. The trade commission didn't comment.

“We’ve worked closely with him over the years and have confidence he will seek policies that allow IoT to reach its full potential,” said TIA’s Reid. “The recent IoT report issued by the IoT Working Group he co-chaired is a positive sign that its members understand the enormous economic and societal benefits of connected technologies.” Latta released that report Wednesday.

Several experts said they think the House Commerce Committee and Latta’s subcommittee in particular may give more deference to an FTC under a Republican majority and leader. They “will be more in sync with the House,” said Venable attorney Randal Shaheen, who has represented several clients in dealings with the FTC. “The FTC I don’t think as a general rule tends to make dramatic policy swings back and forth when different administrations come in,” he said in an interview Friday. “Congress is likely to be even more deferential to what a Republican chairperson thinks about legislative activity than they might with a Democratic chairperson.”

“The renaming of Latta's subcommittee is also curious,” Stager said. “It suggests that subcommittee may shift its focus to some of the consumer privacy issues that the FCC and FTC have been working on.”

Under Burgess, the subcommittee reviewed autonomous vehicle issues (see 1611140049), digital currency, IoT and wearable devices (see 1611160051 and 1503240040), online consumer reviews (see 1607130023) and robotics. The subcommittee advanced controversial legislation that would have changed FTC enforcement power, reporting requirements and economic analysis, which Ramirez testified could burden the agency (see 1605240042 and 1607140051).

“Another sticky issue is how does the chairman divide or share jurisdiction on cyber issues like IoT?” Terry said. “It’s not that clear any more what agency has what jurisdiction, as FTC will be more involved in cybersecurity and privacy as the FCC works some of the same issues. Can the Communications and the [Subcommittee on Digital Commerce and Consumer Protection] have overlapping jurisdiction on those issues?”

FTC Process Legislation?

Shaheen said he doubted that House lawmakers would try to pursue similar FTC process legislation. Whether under Democratic or Republican control, the FTC likes to have more discretion in enforcing a general statute -- tending to provide nonbinding guidance -- rather than “a Federal Register full of very specific statutes that say you can’t do this, you can’t do that, you can’t do this other thing,” he said. But House lawmakers may push for issues the commission may favor such as removal of a common-carrier exemption and be more active in privacy and data security, which the subcommittee’s name change suggests, he said.

John Breyault, National Consumers League vice president-public policy, telecom and fraud, told us he wouldn’t be surprised if Latta and his subcommittee pursued similar FTC process legislation. It might depend on who the Trump administration picks to lead the commission. Commissioner Maureen Ohlhausen’s name has been floated as a potential pick, but Breyault said he wouldn’t be surprised if former FTC Commissioner Joshua Wright, who's helping with the FTC transition for the Trump team, returned to lead that agency.

“I think it would be smart for a Republican Congress to kind of give deference to a Republican chair to find out what their plans are for the commission before changing the structure of the commission by legislation,” said Breyault. He said a new FTC chair would likely pursue a “regulatory humility” approach and could likely make changes the subcommittee had pursued through legislation last year. Breyault said he was pleased to see Latta made IoT privacy and security a priority but was unclear about his other areas of focus or what agenda he might pursue.

National Association of Consumer Advocates Executive Director Ira Rheingold said he didn’t think congressional action such as the FTC process legislation considered last year will be necessary because the agency under a Republican leader and majority will “self-censor” and be “less interested in big enforcement or setting rules through enforcement.” Even if House Commerce advances legislation like the FTC process legislation that was opposed by Democrats, he said Senate Commerce works more collaboratively and seeks bipartisan consensus. “What passes in the House may not meet the collaborative standard that the Senate it looking for,” he said.