5/26. The Internal Revenue Service (IRS) publicly disclosed on May 26, 2015 the "unauthorized access to information on approximately 100,000 tax accounts".

The IRS also stated in its release that the unauthorized accesses "appear to have started in February and ran through mid-May". The IRS publicly disclosed this while both the House and Senate are in recess, and nearly every Member of Congress, and many Washington DC reporters, are out of town.

The IRS stated that unidentified "third parties" used the IRS online "Get Transcript" function to access tax accounts.

The IRS also asserted that it "takes the security of taxpayer data extremely seriously".

Rep. Paul Ryan (R-WI) stated in a release on May 26 that "it's deeply concerning that taxpayer information has been compromised. Protecting the taxpayer is supposed to be the IRS's top priority, and we need answers from them".

Rep. Ryan is the Chairman of the House Ways and Means Committee (HWMC), which oversees the IRS.

Rep. Sander Levin (D-MI), the ranking Democrat on the HWMC, stated in a release that "It is important that members of Congress work together to ensure that the IRS has adequate resources to carry out the vital priority of protecting confidential taxpayer information."

Sen. Orrin Hatch (R-UT), the Chairman of the Senate Finance Committee (SFC), sent a letter to John Koskinen, head of the IRS, that propounds numerous questions, to be answered in a closed "briefing" to conducted by SFC staff "no later than June 5".

Sen. Hatch also disclosed that "In April of this year, Ranking Member Ron Wyden and I quietly launched an investigation into the methods by which computer and online tax preparation services, as well as major prepaid debit card providers, screen for stolen identity refund fraud (SIRF). We will be writing to you on that matter separately in the coming days, but a key concern of the Committee is the growing threat of SIRF to tax administration. This concern will only be amplified due to the recent IRS breach."

The SFC will hold a public hearing, at which Koskinen will testify, at 10:00 AM on Tuesday, June 2.

5/21. The Department of Commerce's (DOC) Bureau of Industry and Security (BIS) published a notice in the Federal Register (FR) that announces, recites, describes, and set the comment deadline for, its proposed changes to its Export Administration Regulations (EAR) regarding intrusion software.

Intrusion software, as defined by these proposed rules, is software that is specially designed or modified to avoid detection by monitoring tools, or to defeat protective countermeasures, of a computer or network-capable device, and performing either (1) the extraction of data or information, from a computer or network-capable device, or the modification of system or user data, or (2) the modification of the standard execution path of a program or process in order to allow the execution of externally provided instructions.

This FR notice states that the BIS "proposes a license requirement for the export, reexport, or transfer (in-country) of these cybersecurity items to all destinations, except Canada. Although these cybersecurity capabilities were not previously designated for export control, many of these items have been controlled for their ``information security'' functionality, including encryption and cryptanalysis. This rule thus continues applicable Encryption Items (EI) registration and review requirements, while setting forth proposed license review policies and special submission requirements to address the new cybersecurity controls, including submission of a letter of explanation with regard to the technical capabilities of the cybersecurity items."

The BIS regulates the export of dual use items, including things such as software, computers, and encryption products, that may also have military uses. The BIS also regulates activities that do not involve exportation, but which the BIS deems to be exports. For example, the BIS in certain situations deems there to be exports in the semiconductor, computer, telecommunications, and other industry sectors when U.S. companies employ foreign nationals.

The deadline to submit comments is July 20, 2015. See, FR, Vol. 80, No. 97, May 20, 2015, at Pages 28853-28863.

5/26. Charter Communications, Time Warner Cable (TWC), and Bright House Networks (BHN) announced in joint release that Charter and TWC "have entered into a definitive agreement for Charter to merge with Time Warner Cable", and that Charter and BHN have amended their March 31, 2015 agreement, under which Charter is to acquire BHN.

This release states that "The deal values Time Warner Cable at $78.7 billion. Charter will provide $100.00 in cash and shares of a new public parent company ... equivalent to 0.5409 shares of CHTR for each Time Warner Cable share outstanding. The deal values each Time Warner Cable share at approximately $195.71 based on Charter’s market closing price on May 20, or approximately $200 based on Charter’s 60-trading day volume weighted average price.

This release also states that "Charter and Advance/Newhouse Partnership (a parent of Bright House Networks, LLC) today announced that the two companies have amended the agreement which the two parties signed and announced on March 31, 2015, whereby Charter will acquire Bright House Networks ... for $10.4 billion. That agreement, as amended, provides for Charter and Advance/Newhouse to form a new partnership ... of which New Charter will own between approximately 86% and 87% and of which Advance/Newhouse will own between approximately 13% and 14%, ..." (Parentheses in original.)

On March 31, 2015, Charter and BHN announced in a release that "the companies have reached a definitive agreement ... whereby Charter will acquire" BHN for $10.4 Billion.

Sen. Al Franken (D-MN) sent a letter to the Department of Justice (DOJ) and Federal Communications Commission (FCC), which exercise redundant antitrust merger review authority, urging them to "carefully review" Charter's planned merger with TWC, and planned acquisition of BHN.

On February 13, 2014 Comcast and TWC announced merger plans. On April 8, 2014 Comcast and TWC filed with the FCC an application [181 pages in PDF, redacted] for approval of their proposed merger.

Comast and TWC offer BIAS, video and voice service in distinct geographic areas, and hence, do not compete with each other in these offerings. Nevertheless, on April 24, 2015, the two companies announced in a joint release that they "mutually agreed to terminate their merger agreement" in the face of regulatory opposition.

The DOJ and Federal Trade Commission (FTC) have antitrust merger review authority under the Clayton Act. The DOJ stated in an April 24 release that "Comcast abandoned its plans" to acquire TWC "after the Department of Justice informed the companies that it had significant concerns that the merger would make Comcast an unavoidable gatekeeper for Internet-based services that rely on a broadband connection to reach consumers."

The FCC also conducts antitrust merger reviews. It did not issue an order blocking the Comcast TWC merger. However, FCC Chairman Tom Wheeler stated in an April 24 release that the two companies' "decision to end Comcast's proposed acquisition of Time Warner Cable is in the best interests of consumers. The proposed transaction would have created a company with the most broadband and video subscribers in the nation alongside the ownership of significant programming interests. Today, an online video market is emerging that offers new business models and greater consumer choice. The proposed merger would have posed an unacceptable risk to competition and innovation especially given the growing importance of high-speed broadband to online video and innovative new services."

Derek Turner of the Free Press stated in a May 26 release that "These potential mergers won't make Charter as massive as a merged Comcast-Time Warner Cable would have been but they raise similar public interest concerns, and the FCC should apply the lessons learned in its prior review here. The cable platform is quickly becoming America's local monopoly broadband infrastructure. Charter will have a tough time making a credible argument that consolidating local monopoly power on a nationwide basis will benefit consumers. Indeed, the issue of the cable industry's power to harm online video competition, which is what ultimately sank Comcast’s consolidation plans, are very much at play in this deal."

Comcast, TWC, Charter, Cox, Cablevision, and BHN are the six largest cable based broadband internet access service (BIAS) providers. While they have distinct geographic territories, and do not compete with each other in offering BIAS, video programming, or voice communications to consumers, they do compete with phone companies in all three services, and with direct broadcast satellite (DBS) providers Directv and Dish.

5/26. Rep. Bob Goodlatte (R-VA) and Sen. Patrick Leahy (D-VT) released a joint statement regarding HR 2048 [LOC | WW], the "USA PATRIOT Act".

The two wrote that "Because the Senate failed to complete its work last Saturday, passage of the USA Freedom Act remains the only viable legislative option that will bring real reform and ensure no lapse in intelligence authorities. The House-passed bill is the only bill the Senate can pass and send to the President before Sunday night’s deadline."

They added that "We remain disappointed that despite broad support for the USA Freedom Act, the Senate has blocked it from consideration. The Senate has another chance to act responsibly this Sunday by taking up and passing the House-passed USA Freedom Act before the sunset takes effect on Sunday night."

The House passed HR 2048 on May 13, 2015 by a vote of 338-88. See, Roll Call No. 224. See, stories titled "House Passes USA FREEDOM Act" and "Summary of the USA FREEDOM Act" in TLJ Daily E-Mail Alert No. 2,724, May 18, 2015.

The Senate did not take up this matter until just before midnight on Friday, May 22, 2015. The Senate rejected a motion to invoke cloture on HR 2048 by a vote of 57-42. See, Roll Call No. 194. It then failed to pass a motion to invoke cloture on S 1357 [LOC | WW] by a vote of 45-54. See, Roll Call No. 195. It then recessed until Sunday, May 31, 2015.

See, story titled "Senate Recesses Without Passing Surveillance Bill, But Will Return on May 31" and related stories in TLJ Daily E-Mail Alert No. 2,728, May 23, 2015.

Three provisions of surveillance law are scheduled to sunset at the end of May 31. S 1357 would provide short term extensions of the sunsets on Section 215, lone wolf, and roving wiretap authority to July 31, 2015, without any modifications. HR 2048 would extend these three provisions to December 15, 2019. It would also provide statutory authority for the National Security Agency's (NSA) bulk phone records collection program, but impose some limits on the program.

5/26. Josh Earnest, Press Secretary to President Obama, spoke to reporters on May 26, 2015 regarding numerous topics, including reform and extension of various provisions of surveillance law. See, transcript.

He said that there is a "need for the Senate to take decisive action to pass the USA Freedom Act before the end of the day on this coming Sunday. They’re facing an important upcoming deadline, and the President is hopeful that for the sake of our country’s security and for the sake our citizens’ privacy that the Senate will meet that deadline."

Josh Earnest also stated on May 26 that the House, "with the strong support of a large number of Republicans, passed the USA Freedom Act, which does two things. One is it makes sure that our national security professionals have the tools they need to keep us safe, while at the same time building in greater protections to protect the civil liberties of the American people."

"That is the kind of solution that the President called for a year and a half ago.  And because of the very good work of the President’s national security team and Democrats and Republicans in the Congress, this bipartisan compromise in the form of the USA Freedom Act was hammered out. And it’s a credit to the leadership of the Speaker of the House that he was able to build bipartisan support for this compromise and to get it passed in a timely fashion."

"Unfortunately", said Earnest, "we haven’t seen that similar kind of effort in the United States Senate. And the President has been very clear that if the United States Senate doesn't act by the end of the day on Sunday, there are critically important national security tools that will no longer be available. And that will put -- there is some risk associated with taking those tools away from our national security professionals."

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The House will not meet the week of May 25-29, except for pro forma sessions.

The Senate will not meet the week of May 25-29, except for pro forma sessions. See, 2015 Senate Schedule. The Senate will meet at 4:00 PM in pro forma session.

12:15 - 1:30 PM. The Federal Communications Commission (FCC) will host an event titled "Meet the FCC Enforcement Bureau Front Office". The speakers will be Travis LeBlanc (Chief of the FCC's Enforcement Bureau), William Davenport (Deputy Chief), Paula Blizzard (Deputy Chief), and Phillip Rosario (Deputy Chief). The Federal Communications Bar Association (FCBA) asserts that this is event of its Enforcement Committee. No webcast. No CLE credits. Bring your own lunch. Free. See, notice. Location: Wiley Rein, 1776 K St., NW.

12:30 - 2:00 PM. The American Bar Association (ABA) will host a panel discussion titled "Trade Legislation and Policy Update". The speakers will be Angela Ellard (Republican Chief International Trade Counsel, House Ways and Means Committee), Jason Kearns (Democratic Chief Trade Counsel, HWMC), Everett Eissenstat (Republican Chief International Trade Counsel, Senate Finance Committee), and Jayme White (Democratic Chief Adviser for International Competitiveness and Innovation, SFC). The price to attend ranges from $15 to $25. No CLE credits. No webcast. Lunch will be served. See, notice. Location: Barnes & Thornburg, 1717 Pennsylvania Ave., NW.

1:00 - 5:00 PM. Day one of a two day meeting of the National Science Foundation's (NSF) Business and Operations Advisory Committee. See, notice in the Federal Register, Vol. 80, No. 93, May 14, 2015, at Page 27709. Location: NSF, 4201 Wilson Boulevard, Arlington, VA.

5:00 PM. Extended deadline to submit comments to the Department of Commerce's (DOC) National Telecommunications and Information Administration (NTIA) regarding its "Stakeholder Engagement on Cybersecurity in the Digital Ecosystem". See, notice in the Federal Register, Vol. 80, No. 92, May 13, 2015, at Pages 27292-27293.

The Senate will meet at 4:00 PM in pro forma session.

Supreme Court conference day. See, 2014-2015 calendar. Closed to the public.

9:00 AM - 12:00 NOON. Day two of a two day meeting of the National Science Foundation's (NSF) Business and Operations Advisory Committee. The agenda for May 28 includes a briefing on the "NSF's Use of Cooperative Agreements to Support Large Scale Investments in Science and Technology". See, notice in the Federal Register, Vol. 80, No. 93, May 14, 2015, at Page 27709. Location: NSF, 4201 Wilson Boulevard, Arlington, VA.

10:30 AM - 12:00 NOON. The Brookings Institution (BI) will host a panel discussion titled "The Digital Single Market: Implications for the Transatlantic Relationship ". The speakers will be Andrus Ansip (European Commission), Miriam Sapiro (BI), and Cameron Kerry (BI). See, notice. Location: JHU School of Advanced International Studies, 1740 Massachusetts Ave., NW.

12:00 NOON. The Cato Institute will host a panel discussion titled "Removing Barriers to Online Medical Care". The speakers will be Rene Quashie (Epstein Becker & Green), Jeff Rowes (Institute for Justice), Josh Sharfstein (Johns Hopkins University), and Simon Lester (Cato). Free. Open to the public. Webcast. See, notice. Location: Cato, 1000 Massachusetts Ave., NW.

12:00 NOON. The National Economists Club (NEC) will host an event titled "Digital Currencies Based on Bitcoin’s Block Chain". The speaker will be Norbert Michel (Heritage Foundation). Open to the public. Lunch will be served. The price to attend ranges from $16 to $25. See, notice and registration page. Location: Chinatown Garden, 618 H St., NW.

12:00 NOON - 1:30 PM. The DC Bar Association will host a presentation titled "Hot Apps and Tech for the Modern Lawyer". The price to attend ranges from free to $30. No CLE credits. For more information, call 202-626-3463. The DC Bar has a history of barring reporters from its events. See, notice. Location: DC Bar Conference Center, 1101 K St., NW.

12:15 - 1:30 PM. The Federal Communications Bar Association's (FCBA) International Telecommunications Committee will host a panel discussion titled "Celebrating the ITU’s 150th Anniversary and the 50th Anniversary of the Creation of INTELSAT". The speakers will be Henry Goldberg (Goldberg Godles Weiner & Wright), Brian Fontes (National Emergency Numbering Association), David Leive, and Jennifer Manner (EchoStar). No webcast. No CLE credits. Bring your own lunch. Free. See, notice. Location: Wiley Rein, 1776 K St., NW.

1:00 PM. The US Telecom will host a webcast presentation titled "Telecom Cyber Frameworks, Policies and Business Processes". The speakers will be Jeff Goldtrop (FCC/PSHSB Associate Chief for Cybersecurity and Communications Reliability) and Adam Sedgewick (DOC/NIST Senior Information Technology Policy Advisor). See, notice.

1:00 - 2:30 PM.The American Bar Association (ABA) will host a webcast panel discussion titled "Online Privacy & Data Security Soup to Nuts: A Primer and Update on Important Developments for the Business Lawyer". The speakers will be Lisa Lifshitz, Richard Balough, Theodore Claypoole, and Jonathan Rubens. Prices vary. Prices vary. CLE credits. See, notice.

1:00 - 2:30 PM. The American Bar Association (ABA) will host a webcast panel discussion titled "The New EU Unitary Patent & Unified Patent Court: Strategic Considerations for US Applicants/Patentees". The speakers will be Bernd Aechter, Brad Hattenbach, Charles Larsen, Willard Jones, and Margaret Welsh. Prices vary. CLE credits. See, notice.

1:00 - 2:30 PM. The American Bar Association (ABA) will host a webcast panel discussion titled "Dealing With Cybersecurity Threats & Breaches". The speakers will be Henry Talavera (Polsinelli PC), Brian Johnston (Polsinelli PC), Lisa Sotto (Hunton & Williams), Lisa Van Fleet (Bryan Cave). Prices vary. CLE credits. See, notice.

9:00 - 10:30 AM. The Information Technology and Innovation Foundation (ITIF) will host a panel discussion titled "Uncle Sam’s Broadband Plan: Which Way Forward for the New Interagency Broadband Council?". The speakers will be Doug Brake (ITIF), Blair Levin (Brookings Institute), and Thomas Power (CTIA Wireless Association). Free. Open to the public. Live and archived webcast. See, notice. Location: ITIF/ITIC, Suite 610, 1101 K St., NW.

Deadline to submit comments to the Executive Office of the President's (EOP) Office of Science and Technology Policy's (OSTP) National Science and Technology Council (NSTC) regarding the draft [15 pages in PDF] titled "2015 National Space Weather Strategy". This draft addresses, among other things, the effect of solar flares, solar energetic particles, and coronal mass ejections upon telecommunications. See, notice in the Federal Register, Vol. 80, No. 83, April 30, 2015, at Pages 24296-24297.

The Senate will return from it Memorial Day recess at 4:00 PM to consider legislation to extend and/or revise three provisions of surveillance law (Section 215, lone wolf FISA authority, and roving wiretap). There will be no votes before 6:00 PM.

12:00 MIDNIGHT. Three provisions of surveillance law (Section 215, lone wolf FISA authority, and roving wiretap) sunset.

The House will return from its Memorial Day recess.

Deadline to submit comments to the National Institute of Standards and Technology's (NIST) Computer Security Division (CSD) regarding its draft NIST IR 8058 [42 pages in PDF] titled "Security Content Automation Protocol (SCAP) Version 1.2 Content Style Guide: Best Practices for Creating and Maintaining SCAP 1.2 Content".

9:30 AM. The Senate Commerce Committee (SCC) will hold a hearing titled "Lifeline: Improving Accountability and Effectiveness". The witnesses will be Randolph May (Free State Foundation), Michael Clements (GAO), Scott Bergmann (CTIA Wireless Association), Ronald Brisé (Florida Public Service Commission, National Association of Regulatory Utility Commissioners (NARUC), Jessica Gonzalez (National Hispanic Media Coalition). Webcast. Location: Room 253, Russell Building.

10:00 AM. The House Judiciary Committee's (HJC) Subcommittee on Regulatory Reform, Commercial and Antitrust Law will hold a hearing on HR 2315 [LOC | WW], the "Mobile Workforce State Income Tax Simplification Act of 2015", HR 1643 [LOC | WW], the "Digital Goods and Services Tax Fairness Act of 2015", and HR __ the "Business Activity Tax Simplification Act of 2015". Webcast. See, notice. Location: Room 2141, Rayburn Building.

10:00 AM. The Senate Finance Committee (SFC) will hold a hearing titled "Internal Revenue Service Data Theft Affecting Taxpayer Information". The witnesses will be John Koskinen (head of the IRS) and Russell George (Treasury Inspector General for Tax Administration). See, notice. Location: Room 215, Dirksen Building.

10:00 AM. The U.S. Court of Appeals (FedCir) will hear oral argument in Personalized User Model v. Google, App. Ct. No. 14-1841. Panel  D. This is an appeal from the U.S. District Court (DDel) in a patent infringement case involving personal web portals.This case is the third of four on the schedule. See, oral arguments schedule. No live webcast. Archived audio webcast. Location: Courtroom 201, 717 Madison Place, NW.

12:00 NOON - 9:00 PM ET. Day one of a two day meeting of the Department of Commerce's (DOC) National Telecommunications and Information Administration's (NTIA) First Responder Network Authority. This meeting is in California, but will be webcast. On Tuesday, June 2, there will be meetings of four committees: Governance and Personnel, Technology, Outreach, and Finance. See, notice in the Federal Register, Vol. 80, No. 94, May 15, 2015, at Pages 27928-27929. Free. Open to the public.

12:00 NOON - 1:00 PM. The DC Bar Association will host a closed event at which Jonathan Sallet (FCC General Counsel) speak. The price to attend ranges from $10 to $20. No CLE credits. No webcast. No reporters. For more information, call 202-626-3463. See, notice. Location: Hogan Lovells, 555 13th St., NW.

1:00 - 5:00 PM. The Federal Communications Bar Association (FCBA) will host an event titled "19th Annual FCBA Foundation Golf Tournament". See, notice. Location: Westfields Golf Club, 13940 Balmoral Greens Avenue, Clifton, VA.

Deadline to submit written submissions to the U.S. International Trade Commission (USITC) following its May 5, 2015 hearing titled "Trade and Investment Policies in India, 2014-2015". See, notice in the Federal Register, Vol. 80, No. 38, February 26, 2015, at Page 10513.

9:00 - 11:45 AM. The Center for Strategic and International Studies (CSIS) will host a panel discussion titled "Korea Going Forward". The speakers will be __. Webcast. See, notice. Location: CSIS, 1616 Rhode Island Ave., NW.

10:00 AM. The U.S. Court of Appeals (FedCir) will hear oral argument in Syntest Technologies v. Cisco Systems, App. Ct. No. 14-1569. This is an appeal from the U.S. District Court (NDCal) in a patent infringement case involving technology for testing the logic of application specific integrated circuits. Panel H. This case is the second of four on the schedule. See, oral arguments schedule. No live webcast. Archived audio webcast. Location: Courtroom 402, 717 Madison Place, NW.

11:00 AM - 1:00 PM ET. Day two of a two day meeting of the Department of Commerce's (DOC) National Telecommunications and Information Administration's (NTIA) First Responder Network Authority. This meeting is in California, but will be webcast. On Wednesday, June 3, the FirstNet Board will meet. See, notice in the Federal Register, Vol. 80, No. 94, May 15, 2015, at Pages 27928-27929. Free. Open to the public.

2:30 - 3:30 PM. The Center for Strategic and International Studies (CSIS) will host a panel discussion titled "Tsai Ing-wen 2016: Taiwan Faces the Future". The main speaker will be Tsai Ing-wen, Chair of the Democratic Progressive Party (DPP), and the DPP's candidate in the Taiwan 2016 Presidential elections. The other speakers will be Bonnie Glaser (CSIS) and Kurt Campbell (The Asia Group). Webcast. See, notice. Location: CSIS, 1616 Rhode Island Ave., NW.

Deadline to submit comments to the Federal Communications Commission (FCC) in response to its Public Notice (PN) regarding the FCC Incentive Auction Task Force's announcement of results of staff simulations of the initial clearing target optimization procedure proposed in the Auction 1000 Comment PN. This PN is DA 15-606 in AU Docket No. 14-252 and GN Docket No. 12-268. The FCC released it on May 20, 2015. See also, appendix to this PN, and notice in the Federal Register, Vol. 80, No. 100, May 26, 2015, at Pages 30021-30030. Commissioner Pai wrote in a statement that this PN "presents misleading data". Commissioner O'Reilly also wrote a statement criticizing this PN.