House Telecom Subcommittee Holds Hearing on NTIA Reauthorization

(May 11, 1999) The House Telecommunications Subcommittee held a hearing May 11 on reauthorization of the NTIA. The controversial topics addressed at the hearing included the NTIA's authorized funding level, the TIIAP grant program, spectrum management issues, and whether the NTIA's research laboratory should be privatized.

Background on the NTIA
The National Telecommunications and Information Administration (NTIA) is a part of the Department of Commerce. It is the principal adviser on telecommunications and information issues in the executive branch.

Recently, the NTIA has been been involved with many Internet related issues, including domain name system and ICANN, use of software to filter out Internet porn in schools and libraries subsidized by the e-rate, and online privacy.

The NTIA is also responsible for managing the federal use of radio spectrum. The NTIA coordinates spectrum use by Federal agencies, working to avoid potential interference between users and to ensure that spectrum is available for future needs. Such spectrum coordination includes public safety efforts, air traffic control, national defense, national resource management, and other government functions. The NTIA also operates a telecommunications research laboratory in Boulder, Colorado.

Finally, the NTIA manages two federal grant programs which help expand access to new technologies. The Telecommunications and Information Infrastructure Assistance Program (TIIAP) provides matching grants to non-profits and public entities that are using new technologies to reach rural, low-income, and traditionally underserved areas. The NTIA's Public Telecommunications Facilities Program (PTFP) supports the maintenance and improvement of public broadcasting facilities.

Larry Irving, an Assistant Secretary of Commerce, runs the NTIA. He is former House Commerce Committee staffer.

Rep. Billy Tauzin (R-LA), the Chairman of the House Telecommunications Subcommittee, has prepared a "discussion draft" of a bill to reauthorize the NTIA. However, he has not yet introduced it.  He stated that it "tries to help reform NTIA to be more efficient and better equipped to handle the ever changing world of communications." He added that it is "a discussion draft upon which we hope to base some dialogue." He said that it will be introduced "soon."

Congress last authorized the NTIA seven years ago. It has been acting without express authorization since 1994.

The "discussion draft" would, among other things, privatize the NTIA's research laboratory, and end the TIIAP grant program.

"The discussion draft does not mention the grant programs that operate under NTIA, its largest expenditure, and its area of largest controversy," said Tauzin. "It is my hope that this hearing can examine whether these programs are already allocated with similar programs in other agencies."

Rep. Tauzin also expressed concern that grants were being given to entities that compete against private firms.

The draft would also require the "NTIA to receive full reimbursement from the other federal agencies for the spectrum management duties that NTIA performs." Tauzin added that "the other agencies will only pay about 80% of what they owe."

Ranking Minority Member of the House Commerce Committee, John Dingell (D-MI), praised both the NTIA and its administrator, Larry Irving. He also mentioned that "this Committee does not hold such high enthusiasm for the FCC."

Rep. Dingell said that the discussion draft "contains some apparent serious defects." He pointed out the lack of funding for TIIAP, which he described as "arguably the most effective information technology grant program available today." He also protested the proposed sale of the NTIA's research laboratory.

Rep. Fred Upton (R-MI) said that "the discussion draft that has been circulated should serve as a good starting point."

Rep. John Shimkus (R-IL) said that the draft "is a very good start in the reauthorization of the agency." He expressed concern about duplication of efforts by different government grant programs. He also said "that there are programs at TIIAP that we need to take a close look at before any authorization language is added to the bill."

The subcommittee heard from one panel of witnesses:

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Larry Irving

Larry Irving testified that the "NTIA's programs would be significantly curtailed by the Discussion Draft "NTIA Reauthorization Act of 1999." Among other things, the Discussion Draft does not authorize funding for TIIAP. It would also privatize NTIA's research labs, eliminating an important resource for Federal agencies. And it would change the funding ratio for NTIA's spectrum management program, eliminating funds to conduct spectrum management functions on behalf of the national interest. The Administration therefore opposes the Discussion Draft."

Harris Miller, the President of the Information Technology Association of America (ITAA), testified in favor of NTIA reauthorization. He devoted most of his testimony to the role of the NTIA in critical information infrastructure protection (CIIP). Miller testified that information technology is threatened with disruption from many sources: "Mischief minded hackers. Disgruntled employees. Corporate spies. Cyber criminals. Terrorists. Unfriendly nations."

"Assessing the ultimate CIIP roles for NTIA, other government agencies and the private sector is really very simple: our new information-based assets must be protected and preserved," said Miller. "Participants and users must understand that along with the obvious benefits of information technology are corresponding commitments to protect IT. The societal stakes involved in critical information protection compel government and industry to seek common ground on the issue."

Referring to the CIIP work ahead, Miller stated that the NTIA has "been asked to do their job without the necessary resources. They lack even the minimum funding and support that is necessary for them to carry out their mission."

Miller concluded: "While the IT industry is frequently uncomfortable in working with government agencies on policy issues, the agency we are usually most comfortable with is DOC. It is for this reason that the ITAA and the information technology industry support the selection and continued mission of NTIA, within DOC, as the lead agency for and primary liaison to our industry for CIIP."

Jim Rogers, of United Parcel Service (UPS), testified regarding spectrum management. UPS, which bids in spectrum auctions, is disturbed that its competitor, the U.S. Postal Service, receives preferential treatment in spectrum allocation.

Kenneth Crawford testified regarding one TIIAP grant.

George Ross, Assistant Inspector General for Auditing at the Department of Commerce testified regarding its audits of the NTIA, NTIA grantees, and the TIIAP grant program. He reported that "NTIA is generally a well-managed agency whose leadership has responded positively to our recommendations for improvements."

He also said that the "NTIA's criteria, procedures, and practices for soliciting, reviewing, and selecting FY 1997 discretionary awards under the PTFP and TIIAP grant programs generally complied with statutory, departmental, and agency requirements and appeared designed to promote merit-based funding decisions."

However, he also testified that "there is relatively little cooperation between NTIA and the International Trade Administration. In fact, ITA's Office of Telecommunications within the Office of Trade Development has its own staff working on many of the same issues as NTIA's staff. Not only is there an overlap of duties, but the roles and responsibilities of each agency for telecommunications policy initiatives and the advancement and promotion of U.S. telecommunication interests abroad have not been clearly defined."

Rep. Billy Tauzin (R-LA) presided at the hearing. Other members who participated included John Dingell (D-MI), William Luther (D-MN), Ed Markey (D-MA), John Shimkus (R-IL), and Fred Upton (R-MI).

Statement by Rep. Tom Bliley (R-VA).
Re: hearing on NTIA reauthorization.
Date: May 11, 1999.
Source: House Commerce Committee.

Editor's Note: Rep. Tom Bliley, the Chairman of the House Commerce Committee, was unable to attend the hearing. He had prepared the following statement.
"I thank Chairman Tauzin for yielding me the time and for holding this hearing. Reauthorizing the agencies and departments under our jurisdiction is a high priority for the Committee this Congress.

"Today, the Subcommittee considers the reauthorization of the National Telecommunications and Information Administration, or better known as NTIA. The Subcommittee last looked at this issue two years ago. NTIA plays an important role in formulating telecommunications policy.

"I want to take a moment to thank my good friends -- Mr. Deal, Mr. Shimkus, and Mr. Upton -- for agreeing to take the lead on these issues on the Committee's behalf. They have been very helpful, and I appreciate their insight on these issues.

"In April 1997, we held a hearing that highlighted a number of serious problems with NTIA. The hearing pointed out flaws in the grant making programs, including the lack of legal authority to conduct one of the grant programs. In fact, in some instances, grantees were using their grants to compete with private companies.

"Two years later, we return to the subject of NTIA. And what I see is an agency that has taken some steps to resolve the concerns raised. Some questions, however, remain and that is why we have the hearing process.

"The discussion draft before us is a balanced approach to start the process. The draft would reauthorize NTIA salaries and expenses at the same level appropriated for Fiscal Year 1999. It would also require NTIA to collect the full amount from other federal agencies for performing spectrum management functions. This will do two things. First. It will increase the reimbursement now received from agencies to 100%. NTIA shouldn't be subsidizing other agencies spectrum functions. More importantly, reimbursement makes agencies focus on their spectrum needs and improve efficiency.

"We need further information on whether the labs operated by NTIA should remain as part of NTIA. This is not necessarily NTIA's responsibility to provide such information but I have held the belief that the NTIA labs may not be an essential part of NTIA's mission. There are a number of private telecommunications labs that may be more than capable of performing the work that the NTIA labs do today. We need to explore this option closer.

"The bill includes no language on the grant programs. I am concerned about converting the PTFP into the public broadcasting funding mechanism for digital television sought by the Clinton Administration. I also expect that the flaws in TIIAP will be fully addressed before any attempt is made to authorize it. If we do go down that road, we need to fully explore appropriate conditions or limitations on the program.

"On a similar note, one major element that the Administration has requested additional NTIA funding is for critical infrastructure protection. This funding may be appropriate; however, no attempt has been made to consult or involve Congress on this project. We are not going to allocate money for this purpose without sound reasons.

"With that said, I want to thank NTIA and specifically Larry Irving for his work on two important issues: local telephone competition and international satellite reform. NTIA has aligned itself more often on the right side of the debates -- more competition and reduced monopoly or incumbent unfair advantages.

"I again thank the Chairman and look forward to a healthy debate over the coming weeks or months on how best to reauthorize NTIA. I stand ready to work with all interested parties on our side, as well as Mr. Markey and the Members on that side of the aisle, to bring a consensus reauthorization bill forward as soon as possible."