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tv   U.S. House of Representatives Legislative Business  CSPAN  May 10, 2016 2:00pm-4:01pm EDT

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the house for one-minute speeches. work today on opioid addiction, drug trafficking, and law enforcement. the speaker pro tempore: the house will be in order. the prayer will be offered by the chaplain, father con you. -- conroy. chaplain conroy: let us pray. almighty and merciful god we give you thanks for giving us another day. you are the shepherd of souls. during the 114th congressmark guest chaplains have led the house in prayer. today we wish to lift up these leaders and their faith communities across this country. their prayer for this nation and this government lingers in this room. bless them for their efforts to
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renew people and -- people in faith, hope and love, inspire them as they preach and guide your people in so many districts of this nation. may they never lord it over those assigned to them but instead be examples of servant leadership to all in the flock. and when your glory is revealed, cheep shepherd of us all, may all leaders in faith and government receive the unfading crown of glory. bless us this day and every day and may all we do be for your greater honor and glory, amen. the speaker pro tempore: the chair has examined the journal of the the speaker pro tempore: the chair has examined the journal of the last day's proceedings and announces to the house his approval thereof. pursuant to clause 1 of rule 1, the journal stands approved. the pledge of allegiance will be led by the gentleman from michigan, mr. kildee. mr. kildee: thank you, mr. speaker. i would invite all present to
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join us in the pledge. i pledge allegiance to the flag of the united states of america and to the republic for which it stands, one nation under god, indivisible, with liberty and justice for all. the speaker pro tempore: the chair will entertain requests for one-minute speeches. for what purpose does the gentleman from south carolina rise? mr. wilson: mr. speaker, i ask unanimous consent to address the house for one minute. revise and extend my remarks. the speaker pro tempore: without objection. the gentleman is recognized. mr. wilson: mr. speaker, last friday, may 6, marked vietnam veterans appreciation day, a day set aside by law in south carolina to remember and thank our brave soldiers that fought heroically in the vietnam war. to mark the day the combat veterans group held a day of remembrance ceremony to honor local vietnam veterans across the state for their service. i was grateful to join them and pay tribute to the courage and sacrifice of our veterans. i appreciate the service of
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commander of the south carolina combat veterans group, tommy, featured speaker retired captain walter, and executive director renee joy. the program was inspiring and uplifting for our dedicated vietnam veterans. while serving as chairman of the military personnel subcommittee of the house armed services committee, i have visited vietnam twice to honor joint vietnamese efforts to recover m.i.a.'s. i was surprised to find a deep affection by the vietnamese for american service members and desire for stronger american vietnamese relationships of friendship. in conclusion, god bless our troops and may the president by his actions never forget september 11 and the global war on terrorism. the speaker pro tempore: the time of the gentleman has expired. for what purpose does the gentleman from michigan rise? mr. kildee: mr. speaker, i seek unanimous consent to address the house for one minute. the speaker pro tempore: without objection. mr. kildee: thank you, mr. speaker. here we are back again. another week in congress where
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republican leadership, republicans in congress, continue to fail to do their job to act to protect american families in crisis. whether it's the ongoing water crisis in my hometown of flint or the threat of the zika virus, the american people look to us for action. they deserve action to protect american families. in my hometown of 100,000 people, the people still cannot drink their water. it's a disaster. typically as americans we come together to act. and it's this body that brings us together as a congress to act to protect americans in their moment of greatest need. yet republicans in congress, leadership, fails to do their job. my bill, the families of flint act, which would provide relief
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evenly divided between the federal and state government, no hearings in committee. no votes on the floor of the house of representatives. the american people deserve a congress that will do its job and will act on their interests. mr. speaker, i ask that we take that up immediately. with that i yield back. the speaker pro tempore: for what purpose does the gentleman from texas, mr. poe, rise? mr. poe: mr. speaker, i ask unanimous consent to address the house for one minute. revise and extend my rksthe eak without objection. mr. speaker, last thursday a chemical warehouse in my texas district exploded nto a start thing -- startling inferno. chemicals shot into the air like rockets. the smoke and heat were intense. but the houston fire department quickly answered the alarm. mr. speaker, over 200 firefighters from 32 fire stations responded to the
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hellish inferno. spring branch elementary and nearby homes were evacuated. but the smoke and fire was conquered. the school and homes were saved. not one person was injured. mr. speaker, firefighters are a special breed. they risk their lives to save our lives. they restore order from bay kaye yoss. and these firefighters are to be thanked and appreciated. firefighter courage and dedication to protecting us is part of what makes them a special breed. while others flee in haste of imblend pending danger, the firefighter with sirens, red lights, horns, red and white trucks charge into the jaws of heat, smoke, and fire, to defeat and conquer dangerous danger. mr. speaker, houston firefighters answered the alarm. they always answer the alarm. and that's just the way it is. i yield back. the speaker pro tempore: for what purpose does the gentlelady from texas rise? ms. jackson lee: mr. speaker, i ask unanimous consent to
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address the house for one minute. the speaker pro tempore: without objection, so ordered. mr. speaker, i rise to salute a caring mayor, the mayor of the city of houston, over the last couple of months, which is the first of his term, many challenges have confronted his administration. one of which was the terrible devastating floods of mid april when so many thousands, many of them mothers and children, were displaced in my congressional district because of those terrible storms. $400 million, people lost their jobs, businesses destroyed. and mayor turner continued to be that he caring, steady hand. working across political lines, working with the county judge, working with council members and the federal government. but one thing he did do, steady in listening to the council and advice of his staff as i said in meeting, taking ideas,
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establishing a relief fund, joining now with the olesteins in lakewood and having this wonderful concert to continue to provide relief. yet showing the caring and loving nurturing of a father. in the midst of all of this, he lost a dear brother. a vietnam vet. but steady, strong, and determined he continued to nurture those who could not help themselves. what a pleasure to be able to work with a mayor, one who is ready to listen and to be able to answer the concerns of a constituency but make hard decisions. i salute you, mayor turner, as someone who cares about our city and works with all of us to make their lives better. and our city the best w that i yield back. the speaker pro tempore: for what purpose does the gentleman from texas, mr. smith, rise? mr. smith: i ask unanimous consent to address the house for one minute. revise and extend my remarks. the speaker pro tempore: without objection. mr. smith: mr. speaker, americans' confidence in the national media continues to erode.
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a media inside project poll found that only 6% now say they have a great deal of confidence in the media. americans are rightfully skeptical of the news they receive as they believe it is ridiculed and riddled with inaccuracies and bias. nearly 90% say it is important for the media to get their facts correct in their news reports, which they often do not. many said the media coverage of a particular event was one-sided. one respondent commented that, quote, i'm also a bit scared for what other things they have gotten wrong or only given half truths to, end quote. media bias is both real and unfortunate. americans will continue to disstruss the national lib bra media until the media stops telling them what to think. the speaker pro tempore: the chair lays before the house a communication. the clerk: the honorable the speaker, house of representatives.
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sir, pursuant to the permission granted in clause 2-h of rule 2 of the rules of the u.s. house of representatives, the clerk received the following message from the secretary of the senate on may 10, 2016, at 9:26 a.m. that the senate passed without amendment h.r. 4230838. that the senate passed senate 546. that the senate agreed to senate resolution 457, senate resolution 458. signed, sincerely, karen l. haas. the speaker pro tempore: pursuant to clause 12-a of rule 1, the chair declares the house in recess until approximately 3:30 p
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>> a week away from the democratic primary in kentucky,
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hillary clinton is holding a live event tonight in louisville. and at 10:00 tonight, bernie sanders in oregon, the oregon primary also a week away. daryl issa was part of a conversation about interconnected vehicles, devices and buildings and we'll hear from represent i haves of the f.c.c., at&t and video is a. this is an hour and 10 minutes. >> good morning, everyone. welcome to the newseum. i'm amy stoddard with "the hill." we're happy to be sponsoring this talk. in addition to our audience we're, we're live streaming on if you're interested in engaging, use the #the-- the
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hilltechforum. congressman issa sits on the house committee on the courts, internet and the media. the joined with representative delbene to form the caucus and we'll talk to him about the work he hopes to accomplish there. please help me welcome congressman issa. hank you, congressman. mr. issa: thank you for having a place to put my coffee. >> i know, that's key, i was looking for the table when i arrived. there are vastly different estimates about what we'll have in the next five years between 21 billion and 50 billion connected devices. why don't we open with kind of, since you know about it than me what that looks like and how our
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lives are going to shift? mr. issa: the definition of connected today is rather simple. it's a radio frequency product that is active, that transmits and receives. that's pretty much what we're looking at. much of it a great deal of it, 80211, in the low gigahertz bands. some of it we look at, sometimes we look at bluetooth a slave device, but we look at a connection between sort of you and me. where we're going when we have those billions is a connection between all of us that isn't just between you and me but inherently is between you and all of them and i'm all sanes you by because i'm connected to you i'm connected to all of them that meshed network version of the internet of thing, one in which everything is available based on certain rights, is the next generation of the internet of things.
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that sounds exciting and a little scary. mr. issa: isn't that what the internet is? i'm connected to the internet and to everybody on the internetful we think of our appliances as bound between two points. the best would be our bluetooth head seth and our phone, that to us, that's our personal internet. but there won't be a personal internet. everything will be bound to everything and in some cases, in the best cases, our communication systems will aid each other so there won't be empty spots because ult ma -- ultimately with limited spectrum our challenge will be to make sure that all of us can find sufficient band width for communication and sufficient signal in a crowded world to be able to message in and out and to do that we're going to have to cooperate in a way we don't urrently with radio frequency.
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>> we're going to get into that. mr. issa south carolina: i got into it early. >> how is it, including auto, going to help us? mr. issa: the automobile is the knee an derthoofl the internet of things. of the eanderthal internet of things. in order to work in an automobile we think of ourselves as, one, we have to be much more robust. the number of tcheerns side of the road is minimal and half of them is because they deferred maintenance or ran out of gas. if you look at the reliability of an automobile it has to be technology that's extremely well tested. it has to operate in minus 40 to plus 100 degrees or beyond or it's useless in a typical automotive environment. so they're coming late to the party. i always say don't look to them
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for the leading edge because what they're describing is something that's very doable and they're applying it to the automobile. that's not to disparage the automobile because automobiles have the greatest -- and that includes motorcycles, bicycles and people in mobility in a sense. we have the greatest opportunity to create vast networks of information that all of us can use. that's where this internet of things goes to the next generation because the current generation is, i say alexa and it tells me the temperature and that's great or it play mismusic. the next generation is every appliance so going to have in a sense, at least some sensing, particularly automobiles. so now how long will it take me to get crosstown new york now? to get that information in realtime every automobile has to be part of a lattice network that is in fact producing the raw material to estimate how long will it take? and by the way, i want to be
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updated that the route i was on has deteriorated and an alternate route can occur. that's where software behind automobiles that become fully part of the internet of things are going to really change our lives. and not just for people going places. sometimes it could be, i've got goinger party, are people oto slow up on time. >> and what about, is our bathroom scale and refrigerator going to tell our insurance company that we weigh too much and are eating bad things? mr. issa: yes but only if you want it to. the question of who owns the data is always yours. at some point all of us sign away the rights. this is truly a judiciary question, what is your right to know and understand what you're signing away?
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now -- >> you have to read the little small things. mr. issa: one of the challenges is we have a generation that says i don't care and don't read it. then we have a lot of legislator -- legislators and we're say, wait a second. we've got to find a way to make this document simple. how many have got an home loan lone? -- have goten a home loan? that was a simplification of truth in lending. it ain't simple. the fact is that what we need and don't have is an industry that's developing, if you will, standards for these contracts, so that i read a contract one time and it's a, i'll go to my old alma mater, it's a consumer technology association standard 101 for document release or information release and i know if i've read it once, that will comply with it. or it's standard document with
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one exception. and that exception says that they canning a regate some information that otherwise wouldn't be able to. so the question is are we going to develop standards? when i plug something in to an hdmi or into an old fashioned parallel port, i have an expectation it's going to work a certain way because industry, private sector industry developed standards we can rely on. we need a standard of what is my information being used for? and by the way, if we say no everything then all the real benefit of the internet of things come crumbling down because we want that aggregated information to be available. >> can you talk more about the challenge to the congress, what your goals are for safeguarding data with your encryption working group and the internet of things caucus? i know that you and the congresswoman are probably a little ahead of your creags on this, i'm sure there's a will
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the of educating to do. how do you make this a priority? mr. issa -- . issa: spst -- it's interesting, we're here at the museum. the first amendment is an interesting term, it means multiple things. the right to be heard and the right to privacy are interlaced in that question. my first amendment rights include my freedom of association without big brother looking at it. so when the word encryption is used, the real request goes back to 240 years ago. what is my right to privacy? and what define mishome? so if my right to have a conversation if as thomas jefferson thought we should do every generation or so, and that conspire and tear down our government if my ability to have that conversation is protected, and thomas jefferson certainly thought it should be, then my
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ability to actually have conspiracy talk, talk about hypothetically taking down the government with a -- not violence but with a series of political attacks, you will, that's protected. and if one piece of free speech is protected, then all free speech is protected. so i'm one of those that understands, you know, that there's not such a thing as a little bit of encryption. you either have privacy or you don't. does a court have a right to order certain things? yes. but our founding fours never an dissipated that if i talk to the gentleman in the second row there, an hour later they never anticipated being able to hear our conversation. they anticipated that they would talk to me and they could talk to him system of the idea that big brother can get all the conversations that occur all the time throughout all of history
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whether they're written or oral, is a -- an intrusion that our founding fathers never anticipated. they anticipated the ability for the court to order documents and, which of course were public conveyance in many ways, and the individuals, and compel them to answer questions honestly under threat of pergeru and they even gave them the ability to not answer. so in a sense, what suzanne and many of russ trying to do is teach new the very old, which is that, let's not be so afraid of a relatively small group of people meaning us harm around the world that we give up the very liberty that brought us here and caused us to have a very different life. >> in erm terms of regulation, you are a businessman. this is an industry that's way
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ahead of the regulation. mr. issa: thank you god it is. if the regulation catches up to the industry, the industry will cover. >> what's the motivation for the x factor to secure these devices? in a meaningful way. you know, when you read about the internet of things, they describe devices that will not be able to be updated over time. that pose long-term security threats. because this is an unprecedented amount of pressure on the system, connectivity, and at some point, what is the regulatory landscape you envision? that's reasonable? mr. issa: it's an interesting question and it's been -- again you go back to history in a way. we have had times in which we've said it would become too
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obsolete. let's assume you have a model t ford. you can take your model t ford out on certain roads but a model t ford can't really keep up with interstate highway speed we can prohibit it from going out on the turnpike. we can also prohibit your little motorbike, or pedal bike or bicycle. so if today the latest internet of things product is in fact a moped and if a generation from now, generation being five years, we -- that's always good for at least a little while, but if a generation from now that product simply can't keep up in the lanes, that we have an ability to say, you can participate in the lanes that are legacy lanes but you're not going to, for example, be part of the mesh network that we're all in because you lack the speed, you lack the security, maybe you lack the updateability. that's one of the challenges for our industry. everyone in this room probably, i hope at least, everyone in
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this room has a flat screen tv at has probably a linux thin client microcomputer on board. that's what most of these products we use have. they're a computer screen with a very thin client behind them. one of the challenges for that industry, and i came out of the consumer industry, those tv's are great and they will do exactly what we ask them to do, including connect to the internet and update their time but they won't be able to, their processors simply won't be able to keep up with the demands of just a few years from now. so the answer to your question is, we need to have an orderly anticipation of some products being continuously updated until their microprocessors and memory reaches a point where it can't make that next jump and then have them pushed into a slow lane that lets them enjoy the utility that they can but recognize they're going to go away. i'm running on but let me just
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give you a really old example. there's probably three people in the room that will remember it. there used to be something called a citizens band radio. and i bought my first car by trading a tuned citizen band radio that used crystals, had three crystals in it, it could hold up to six of them, i would be able to have six channels. if i changed crystals i could have all 29 chams. what happened was the f.c.c. determined that there was ability to have more channels so in the 1970's they made a transition from a whole group of c.b. radios that had x amount of channels to the new ones. you know what? they announced that as of a certain date, i can't remember, it was like january 1, 1978, that the old ones couldn't be sold anymore. you should have seen the fire sale for the old ones at the consumer electronics show. you could have bought -- the packaging would have cost you more than the profit. we do have to realize we're going to have that.
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particularly when we look at band width. because we're going to reallocate some band width today to more mundane things. i'm ct, you know, today, looking forward to 28 gigahertz communication, something satellites are doing, being used terrestrially. just to give you perspective, when i came to congress, the idea that we would be using five gigahertz hadn't yet come out. when i was a kid, even when i was an adult, we only thing we could be gigahertz used for was cooking food in our radar range and the police pulling us over. today that's one of the key band widths for 80211. >> the internet of things is going to depend largely on unlicensed spectrum, are we
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going to have enough consumers expect connectivity at a low price? can we continue to expect that long-term? mr. issa: that's the greatest challenge for the f.c.c. they have an obligation to allocate band width to the highest and best use. and they need to fight stronger to tell congress, particularly some of the budget hawks in congress, that the highest and best use is not always determined by who will pay the most money. the fact is, cellular auctions have given us a lot of money but the connectivity we depend, include, quite frankly, the cellular data, if it wasn't for 80211 there isn't enough band width. it's free speck rum moving more data than cellular data. it could all be free if we can coexist and business models shouldn't be based on exclusive band width, it should be based
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on what you add in value to what is in fact free to the people. that's pretty high falutin' and it's not going to happen overnight but with respect to historic broadcast channels, most next generation radio sfreektcy will be smart, they'll be able to detect that the noise floor is unacceptable at n one place at a particular nano second but acceptable at another place, and they'll be able to send your data through an ever greater and busier world. if we don't do that if we don't look at what people think of as c.m.a. technology and cellular if we don't look at putting more and more onto existing band width, we will by definition run out much sooner. if we auction it off to users who are trying to monetize but in fact are not sharing, we won't get nearly the depth of use. ms. stoddard: thank you,
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congressman. [applause] ok this time i'd like to introduce two industry representatives, i'd like to welcome to our stage jim mccarthy, executive vice president for innovation and strategic partnerships at visa, jim will sit down with linda moore. i. ms. moore: that was a great conversation. thanks for being here with us so early this morning. it's fun to talk about the internet of things, we got a good high level discussion for the policy surrounding about it but to me the most fun part of these is to talk to people like jim, visa is a member of technet, i'll tell you a little birt about technet. we represent 70 companies in a
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cool tech system. we represent visa which underpins so many of our great ountries like uber, lyft and ambingsbnb. e have facebook, oracle, and everything you can think of, and clean kata processing that make everything visa does every single day work. i want to talk a little bit about the history of the visa card. i was talking to jim about this as we were listening to congressman issa, right before he started i asked when was the visa card developed? it seems like ancient history but it's actually in our lifetime. mr. moore:: 195 , bank of america did what they called the fresno drop to test what would become the first generation general purpose credit card. ms. moore: what was it like?
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mr. mccarthy: d of a did this test, of,000 pieces of mail by 1960, they had a million customers, primarily in the state of california. by 1966, they were up to two million. that's when they desaied to open what was their effectively closed network that became visa at that point. from 1966 to 1970, they went from two million cards to 100 million cards on the network. ms. moore: technology fueled all of that too. mr. mccarthy: there's the internet of things discussion, the congressman talked about innovation and opening, a lot of the most successful companies uber be, as you mentioned, and abnb have been small and disruptive. ms. moore: you think -- when you think about the amazing growth and how people think about money and commerce in the last 10
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years, what's the biggest point you'd make about that? mr. mccarthy: i love the way the congressman talked about it. for me, to date myself, search to purpose, started off with my throwing all four of us in a&p, r and going to the screaming up and down the isles searching. now when we look for surge to purpose, you have google, the convergence is real. in the case of uber and abnb, they consolidated what used to be serial step into one action. an app saying, i want a car. you don't think about -- about payments or anything. in the case of payment what we're finding is the serial steps are combining, taking friction out of the the process.
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effectively through software, mobile and the internet of things. ms. moore: one of the things that is fun about talking to someone like jim, you take a peek around the corner at what's coming in your life. we talked about autonomous vehicles and things like that with congressman issa. i'd like to talk more about how it's going to impact you personally. olympics coming up. we remember the ads, with visa sponsoring the olympics. every few years i look forward to it. i look forward to the ads. one of the things that visa is doing this year is rolling out a lot of really cool gadgets and gear they'll hand out to all the people in the olympic village. could you talk a little bit about that? it gives us a goodwin doe into, this is what people in the olympic village will experience this year this summer, but that's what all of us will be experiencing soon.
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mr. mccarthy: we try to use the olympics as a mini ecosystem to test some things. again, i think the world, we're all used to carrying cards. as the congressman talked about the next generation being five years. i don't think we realize how much is occurring as we sit here today. i brought several devices, when i think about mobile payments or devices, in between my iphone, samsung phone, these devices are payment devices. i've got probably at this point nine, 10 different ways i can pay. as you mentioned the olympics is a chance to push that envelope a lyttle further. we have sponsored athletes there and one of the things we want to do, obviously payment, something they do, while they're in rio, they're consumers as well. so we're going to be testing another revision of internet of things, which is effectively this ring i've got on is an nfc ring we'll be giving to visa athletes they'll be able to wear and do payment with. when you think about wearables and all the devices that will
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soon be enabled for payments, this is one we'll be testing. ms. moore: how does that work when you think about how you secure payments. you think of the clothes you wear, the watch you wear, the ring you wear, is going to be able to handle all of that data and purchg does that work? >> it's an important point. it's not just about convenience. clearly electronic payments, security, trust, even the privacy issue to some degree the congressman talked about are wrapped up in that. in the case of all of these devices that i have as well as this ring, the key concept that was introduced a little over two years ago was something call tokenization. we know the card, the debit card or credit card that was issued by your bank, the challenges in the connected world the congressman described. i probably don't know the places that that card has been stored at this point. that credential has been out, it's on a numb of internet sites, in apps, different
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hardware devices like my iphone and my samsung device. in a world that's connected you have to assume bad things are going to happen, unfortunately. the pace of change, the numb of devices, the number of places where there's potential compromise points, it's difficult to manage if you're trying to lock them all down. so the ingoing assumption is bad things will happen so how do you protect against those when they do happen? the tokenization was one where, your bank issues that one piece of plastic and one account number, all the devices i have here, this ring, we have been digitally send a different credential to each device that's unique. it's bound to that device crypt graphically -- cryptographically so that when it's used we look at data to ensure it's that device. it's a software card account number bound to that device system of if and when something bad does happen with that device or someone tries to take the
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device or steal that information, we know that it's actually supposed to come off that device, whether it's your car or refrigerator or this ring. we will kill the transaction in realtime if we don't see the data we expect to see. the original credential issued by your bank is protected. if something bad happens, we can kill that software based credential and reissue in realtime. the consumer is protected, and the trust is ensured. ms. moore: you were talking a little bit about biometrics and the future of where that is headed. can you talk a little bit about that with the audience too? mr. mccarthy: when you start to think about things and devices, there's a couple of dimensions. biometrics, we've seen a real ramp in the capability of biometrics to do identification and authentication in realtime. the congressman talked about cars as an example. we do believe that there's actually a real potential,
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commercial potential for the connectivity for cars for all sorts of commerce applications that solve paying points for merchants and consumers. none of us likes to get out of the car and dip cards to start to pay for fuel or in the case of quick service restaurant like mcdonald's, where the inside of the store has become much faster because of the electronification of payment bus the outside hasn't changed because where are you going to automate? so the connectivity will drive the opportunity for new commerce applications where the car participates in that experience and can transmit payment data. but the problem is identifying the car is one thing but identifying the driver is anotherng so we do think biometrics will become a much bigger part of the payment process where something about you identifies you you and winds you to the device and the device to the payment credential system of that's all beginning to come online.
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but even the concept of the internet of things, i certainly go to the place where we think about things, meaning inanimate objects, cars, appliances, clothe, wearables, yet i would argue that we and the congressman describes it, that we are part of the mesh. and so we've already done pilots where actually working with underarmour at an event we did last year, we created a retail store. we had visa employees and some compliants actually register their hand print with some tech naling that's very fast, very quick, you stan your fingers over a reader. then what we did was put a payment credential in the cloud. so uber, you're not carrying a device but you've identified yourself. so the store front we created, when you checked out at the store, twipe your -- swipe your hand across the scanner. it identified me and because the payment credential was in the cloud we authorized the transaction base odd then
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ecredential you uploadedle when you think internet of of thins, biometrics, the devices we carry could fade away and you could become the payment credential yourself. ms. moore: can you give us a good sense of the growth of using payments. how much we've seen in the past two or three years and where it's headed? mr. mccarthy: starting with 60,000 potential clients in 1958, we were sitting here in 2016 with three billion visa cards issued worldwide. 40 million merchants on the network, we did 100 billion ransactions last year. by any stretch of the imagination it's a success story. you can see on the horizon, 50 billion connected devices, all of which are yapped in software
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that allows for personalization. we get excited about the opportunity. remember in the case of visa, while the network has always been electronic, the actual physical device we carry, that analog piece of plastic, only works, predominantly, where you see wired line telepa thi, you've got some telecommunication signal, still plugged into a terminal that requires good electricity. the way i tried to mention that in the opportunity writ large, think about the map of the world at night, the sat slight flyover where you see dark and light. our franchise is historically constrained by where you see light. that's the only place visa cards would work today because of the requirement for electricity to power that magnetic stripe. yet in a world moving to mobile devices, seven billion plus smart phones and feature phones going to 20 billion to 50 billion internet connected devices, albeit like i said on cars and wearables, etc., the by an ity just grows
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order of magny tuesday. the personalization could become more unique and customized. the opportunity is, we're just scratching the surface for electronic payments. ms. moore: when you think about 10 years down the road how do you think we'll be interacting with gadgets in our home? mr. mccarthy: we've built a home, connected home setup around commerce in our one market center innovation facility. when you think about it, we express our preferences all the time. i told me the major hotel chains what my preferences are. yet you have to tell them when you get there, i'd like this paper and this and that. it hasn't carried all the way to
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the personalized experience. in the connected home, you're starting to see the capabilities, whether it's opening the door, the lightingses, the temperature, the music that you like, all coming online. as the congressman also said it requires standards. it's still a little too hard to connect that i.o.t. hub and mesh inside the house. but we're already seeing what that could look like, where you'll start to see preferences that you have, whether it's your home or when you travel, effectively set up for you when you open the door. but the interfaces are going to get better. today we have the smart phone or tablet to set these things up, we're seeing with chat bots and human interfaces, like you mentioned the amazon echo and alexa, voice becoming prevalent. more human interface in terms of natural language whether it's chatting to something via a text-like interface or talking to things. more importantly, the real trick is always data that you have about yourself that these
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machines can actually start to inform a better experience through artificial intelligence. so as computing power increases, as the interfaces get better, what will happen is, and again we already have this, your refrigerator, your egg carton will tell you when the eggs have gone bad, what you need to order, it'll be delivered to your house. the early days of the amazon dash of pushing a button is now me talking to the echo saying, alexa sending -- send these to me. then it will be the refrigerator doing it for you. these possibilities are all real, it's just's of use and mainstreaming it. ms. moore: and you talked about the car, the purpose recognizing our car. mr. mccarthy: we talk about technology to solve problems,
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the congressman was talking about 80211 stab dards and bluetooth, but while those things still have a ways to go with stan sardization -- standardization and the reliability you need, we've actually again created some experiments where we've actually taken a gas pump and for those, you know, who know the industry, the pumps are fairly closed systems. they're not i.o.t. like in the sense that they're open internet devices. we've actually with some of our developers, we've actually been able to open up the device, create -- turn it into a cloud-based twice to store payment credentials in the cloud. then you need to identify the ar, we actually use cameras to identify the using license plate technology. most of you use fast pass or something where you can drive through the toll without the transponder. using that technology, which you wouldn't think of as state of
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the art, yet it works better than current state of the art, we are able to identify the car and turn the pump on. when you think about it from the fuel retailer perspective, time is money. from getting people through and not losing customers drive big and getting them into the convenience store. all these things are real. then it's a matter of how do you continue to improve on them? ms. moore: when you think about what congress can do to pave the way for this and make this smoother, even more secure, what would your advice to congress be? mr. mccarthy: the congressman did a nice job laying it out. but a couple of things, standards. without standards you fight over the wrong things. if you listen to him in may, we spent a will the of times talking about device and technology you don't hear a lot about what's in it for the consumer and merchant. even in the mobile payment space which has been around and discussed for 15 to 17 years,
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you know in the u.s. in particular we've always talked about the technology. is it going to be n.f.c.? is it going to be bluetooth? beacons? q.r. codes? and lost in that is the consumer and merchant. the reason i would argue that to a large degree visa has been as skesm as it's been, is because for a long time we qupted with our competitors. mastercard, american express, discover, china union pay. we don't compete by confusing consumers and merchants. we don't swipe a visa down, a mastercard up, and amex sideways. there's an experience that allows it to be grounded and as a result the industry flourished. when you start to compete on closing things down, becoming proprietary you often lose sight of the consumer-merchant benefit and things slow down. standards are important and encouraging standard -- standardization is something.
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i think the other thing quite honestly is don't legislate technology changes. because as you said if the regulators get ahead of the industry, worry about industry, he ouse frankly, in my 17 years thing i refused to do is predict the future. you know, if we sat here five years ago and had this conversation, i don't think any of us would have predicted the next major disruption if the internet would have been in the taxi industry yet uber is a hot flash point for a lot of discussions. in the hotel business, abnb is the hot point for discussion. the technology they used happened as a result of smart people testing things in the market and going back to the early days of mankamericard, that was an experiment the bank came up with. we know the tech ex-- technology is changing quickly and there are a lot of smart people out
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there. to the extent we legislate things, one of the thing us worry about is the data space. the whole business of payments is predicated on being able to see data. if you get bad actors create a situation on marketing site, a question about who owns the data, i agree that the consumer owns the data. if pima nip late that in such a way that there's legislation that rolls back the ability of a company to use data for good, taking fraud out of the system, it could have a detrimental impact on the consumer and merchant. ms. moore: we do state policy advocacy too, so we try to protect visa, the tech community and others from bad legislation that's popping up in state capitols across the country. well-intentioned legislators are trying to create legislation in the space and they are trying to , you know, protect consumers but at the same time they're
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making all kinds of unintended consequences and things that would hold this back and be detrimental to security. if you've never got an chance to see visa's data processing cent for the virginia, it's -- the volume and security of that facility is incredible and your san francisco innovations center too. i'm looking forward to seing that. because then you get to interact with the home in a home experience. so for all of you, thank you so much for being here. we're going to have a panel now moderated by "the hill" but i'm so excited to get a chance to talk to you jim and i'm excited to see all of this in rio in realtime. thank you. [applause]
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>> i am pleased this morning to the director of policy investigation and research at s.e.c. and the lead principal architect in internet of things security at at&t. welcome, guys, glad you all are here. i'm going to be honest, i'm wearing a connected device today so if you guys scare me too much with the security risks, somebody is reimbursing me. >> fair enough. >> let's start with talking about the scope of internet of things. depending on which study you reference, by 2020 there are 28 to 30 billion devices connected. what kinds of devices are we talking about here and what is that going to look like? >> thanks for having me this morning, to start with. but that number varies because areas themultitude of
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devices will be used in. we talked about consumer side of things but there's also industry and -- industrial and manufacturing plants. health care. so there's a lot of different verticals these are going to come up with. that really, you know, creates a bit of ambiguity with the number, but the fact is, it's a large number. >> so first, thanks for having me, second of all, standard c.c. disclaimer, these thoughts are my own, not necessarily those of the f.c.c. this is a question of cost. the sensors are cheaper, connectivity is cheaper. we have the ability to test more things than we ever did before. 10 years ago it would have cost $100 to make something, now it costs $20. so now we have a smart toaster.
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what are the extra concerns that we have around that? what are consumers expecting out of a smart toaster? we have buckets of concerns, one is privacy this device can collect more information about me, transmit information about me, i have young kids, i go through a lot of toast at home. so am i going to start seeing ads for bread on facebook? what information -- is that a good thing? i might like that. the second and i think probably the biggest is security. once you connect something to the internet you've created an attack surface that can be attacked. it can be probed, it can be perhaps configured to heat up our toasting element, could be dangerous. and are you going to agree to service that toaster for a lifetime? will you be able to patch it? and the third bucket, related to that, is the issue of control. is this still really your toaster? you own the toaster but all the
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software inside it, you have control over it, can you fix it? will it be supported? it's security but also if there's some sort of cloud thinking that powers this toaster, remember my personal toast settings, what happens if the server gets turned off? what do consumers expect out of this? i think we're in the early days figuring out how these things will work. >> this discussion, what sort of impact is the fact that there are lots of different ways to connect these to the internet, having all three of the buckets. what are the implications of the fact that there are different ways and what are the different ways? >> security is the first piece. the i.d.c. came up with a study a year, year and a half ago where we talked about 50 billion devices and how do maybe 10% was connecting over some sort of
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network, about 50% were connected over wi-fi, and the rest was over unlicensed spectrum. so what that means is, sangele device can connect different technologies, we have a multitude of devices connecting over different technologies. security becomes very important because the way to implement security on a server network is how you do it on a wi-fi network. security becomes a very big concern and it's -- it becomes worse with the different types devices and different types of connectivity. >> so my fobe here connects through cellular, wi-fi, bluetooth. the microphone can be on. there's all sorts of ways it can be attacked. in the mobile phone area, where there were a lot of sophisticated companies, it's hard to get security right.
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for example, i have -- i paid full price for this phone two years ago. ing -- of danger of get not getting the latest updates. how safe is it? i don't really know. actually, with the f.c.c., one thing we announced yesterday, we're actually doing a study of mobile phone security because of the -- because of this issue. whose responsibility is it to update the software of this phone. is it google because it's an an droid fine? -- phone? is it samsung? is it tmobile who configures a lot of information on here? is it t.i. who makes the chip? when all these devices are created by four or five different companies and different ones providing software for it, it does make the security picture more
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complicated. >> most of these devices are low power so the ability to put an update and manage the software that adds another piece of complexity. >> what expectations do consumers have that manufactures will continue to provide support for a given device? and are those expectations being met right now? >> i think it depends on the vertical again. everybody is switching over in a they're ok rs, so updating phones for a few years. like a car.ething manufactures have to ensure that for an average of 17 years those codes are updated securely and kept safe and secure.
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>> like a refrigerator, that's powered by the cloud, refrigerators last 10, 15 years, i don't know. there's a story about how samsung decided to create a screen on the device and it had a way to phone home to google and bring up the google calendar on the fridge. that's cool. but google changed the a.p.i. and then now it's a blue screen of death on injure samsung refrigerator. samsung didn't initially have a way to update the software. thinking through these issues, i think we're still in early days. how would you make sure that you can deal with the fact that you're supporting google software that you have various ways to connect to the internet that people are constantly probing, trying to find holes in. both white hat and gray hat, malicious people. how you think about that going forward, is, i think at the
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f.c.c., we have security and internet of things is not quite there yet. even when companies invest like millions and millions of dollars into it like the mobile phone, and easy and lenging. it's chp security is hard and security is expensive and how people will grapple will be a challenge of things. >> you have hinted at the fact what the security standard is, what is considered adequate protection is going to vary from vertical to vertical and device and device. my niece's smart barbie doesn't need the smart protection presumably that somebody's smart car does. >> you're probably right. it is sensitive information for my kid. smart and barbie could [inaudible] that's absolutely right. every device does not need to have perfect security. i think we're still in relatively early days of thinking what is the reasonable
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standard, though. our job is to enforce what a reasonable standard is and i think so far we're mostly picking the very low-hanging fruit, right? we brought cases against connected baby monitors that just had their software misconfigured so everybody in the world could watch a baby monitor. this is a pervasive problem. the people are familiar with shoden which is a search engine to the internet of things and you can see connected devices that have open ports, that you can find a lot of websites that just collect all the exposed cameras in the world. some which may intended to be opened but i think a lot of them probably not. >> security is the main deterrent to people launching successful devices because of i.o.t., there is not a lot of standards around
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it? we are seeing more deployments move to the simulated stage because they have compatible to wi-fi. >> there is regulatory certainty? >> it's going to get stronger as we move forward, you know, as we go into 5-g and all the new technologies will go stronger. with all the different kecktift options, you know, getting an l.t.e. connection is a closed loop from your device other than running it through the open internet, as he mentioned, the attacks are huge. >> it's part of the risk for consumers because it's so much cheaper to build a connected device now you have manufacturers that aren't traditional software manufacturers, is that -- >> absolutely. you'll be surprised some of the products people bring to our team and say, hey, we want to sell this, and they have no experience building these devices.
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even, you know, major manufacturers, there was a hack i think a couple months ago, one of the big three out in detroit. their mobile app was hacked and you could pull off, you know, user credentials from it and then use it to unlock your car and get full access. they were not using simple software like security 101 and that's very surprising. for major company can do that, the smaller companies that are just trying to get their products out just have [inaudible] >> the consumer electronic show in las vegas. two years ago, 3-d tv will take over the world and it didn't quite work out. then it was warebles and then the internet of things. the product like connected pregnancy test. the bluetooth pregnancy test. i don't -- maybe it's very good. maybe -- there could well be
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value there. i think there is this friend to connect everything. i am not sure it's always well-considered. the security side is one thing and there is the privacy side too, right? so another example, news from last year around this time was people read the samsung smart tv privacy policy and it sounded like they were listening to everything you did, right? samsung listens to stuff in your home for voice recognition and people were like, what? is it really listening to every single word i say around my samsung tv? there is an argument for it, right? i probably speak too quickly and samsung should listen to more of what i say to make voice recognition better. but a lot of people were saying i don't necessarily want everything i say sent home to samsung servers and all of samsung's friends, whoever their service providers are, i have no idea who they are, they have a log of what happens in my living room and bedroom.
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samsung actually was not doing that. the privacy policy was written sloppyly. it's when you hit the big green voice recognition button that it would listen and that is part of user expectation. there is a drive, we can collect stuff, let's collect stuff. there are other stories in the smart tv space where before a couple years ago a tv was just a big box that showed me pictures. now it has software it can do a lot more things. some is really good. i can connect to netflix or hulu with my tv which i do and i love. it has the potential to collect information about me and do people understand this new tv i bought may be sending to, i don't know, advertisers? someone else? all the stuff that i watch? one more blog at f.t.c., we're having a workshop on smart tv's in december of this year. we'll be looking into these issues there's a far amount of
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apprehension of what these smart devices are doing. >> is there a gap between consumer expectation for how their data will be used and collected and sort of the box they're ticking on the privacy policy terms of agreement saying, yeah, i won't read 300 pages of this but i'll accept this? is there -- >> it's right. there's been a lot of discussion of how privacy policies are imperfect devices. at the very least they should be detailed and provide transparency of what's going on for those who do happen to read regulators or advocates. i think a lot of times lawyers are by nature risk adverse and they don't necessarily know what people will be doing so they might just say, we're going to collect stuff for reasons and then even a very conscientious consumers going through reading that might might necessarily know what's going on. the f.t.c. has said, put it in
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your privacy policy but sometimes data collection can be sort of surprising that even putting it in paragraph 40 of the terms of service or privacy policy isn't going to be sufficient. it would be so shocking or contrary to normal expectations. so the case i think back in 2010 or so against sierras because sierras said in-- sears because sears said install the tool bar. why not? it said deep in the policy saying, everything you do in your browser will be phoned home to sears. we will watch i don't know what. including credit card information. in that case the f.t.c. said, that's well beyond consumer expectation of what a tool bar will be do. you have a full obligation to say that up front. in the i.t. space, expectations are changing all the time, we're still trying to figure out what our smart toasters will say about us. what we expect our smart tv to do about us and a lot of times
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they don't have screens. the fit bit has a privacy policy. a lot of times you don't have any way to fine out easyly what's going on. you have a -- easily what's going on. you have a balance of evolving expectations. >> let's talk about the control issue that you mentioned earlier. using the smart car, for example. right now it's legal for an owner of a car to change his own oil or tinker with the transmission. what will legal rights will the consumer obtain if it's written in code? >> like michigan passed a -- considering passing a a lot about hacking a car -- criminal offense. >> with very stiff penalties. >> hacking a car veers off a highway, sure, that sounds bad. is now changing your oil hacking your car? this is an issue i think last year both g.m. and john deere
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filed comments to the copyrights office you may own the physical car or the tractor but we own copyright in all the stuff which is increasingly more and more of the car is all the stuff inside. do you have a right to repair your car? do you have a right to configure your car in new ways? and there are safety concerns there. maybe we don't want necessarily peoplebecause that could be incredibly dangerous on the highway. on the other hand, a car is a personal thing. this is my car. i should be able to do with it what i want. i think that's also an area where there will be conflict between normal expectations of what people have always done with their own stuff and the fact increasingly their stuff is run by algorithms and often cloud data processing that may be opaque and not changeable to them. >> people have been doing it
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for decades. ever since we had e.c.u.'s in cars, they've been doing it so it's been going on. it is going to be a complex issue because some of these systems are very critical to the vehicles. so that's where stuff like encryption and, you know, tamper proofing software comes into and things have changed in the last five, 10 years, two generations where technologies evolved so much that we can try to keep some of these, you negotiation software or code very private from both the software and hardware level. there are certain pieces where consumers, a general consumer won't be able to get in and mess with it. of course there will be nation state and militia parties that will try to. other than the policy piece there is a technology piece that will help keep this
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[inaudible] >> so, talk to me about the implications there for security research. even just going beyond specifically cars, is the industry evolving in such the way in the regulatory environment that surrounds it, evolving in such a way that's friendly to white house hackers that are reporting flaws? >> it is. it's a lot -- i don't want to say it's easier for hackers and i.o.t. but when companies and, you know, developers implement security in i.o.t. ecosystems, they're still thinking of the traditional i.t. cybersecurity, firewalls, intrusion protection systems. but those don't really ranslate into i.o.t. it's a lot more easier to break into an i.t.o. device which are bringing hackers into the field which is a good thing because now you're able to quickly identify and, you know, patch
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issues. and justin mentioned it. this is my personal opinion. the ability to update your software on any device is going to be the most important security function that you can have because one at the f.b.i. put it -- i love this quote. there are two types of companies, one that's already been hacked and one that's going to be hacked. that's true with i.o.t. devices. with these long life spans someone will find a way to break into it. we have to evolve those security functionalitys with those devices and ecosystems and the only way to do it, as justin mentioned, is to be able to update the software, program on that device. justin: i think there are some legal challenges to white hackers that are written like the computer fraud anand abuse hack. it's a very broadly written law that can be interpreted in a lot of different ways.
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interpreted in cases like just lying in terms of service on facebook or myspace can be considered a computer -- hacking, right? should people -- should there be that cloud of suspicion that i will potentially serve jail time for doing something i think should be seen in many cases a real public benefit? similarly, the dmca has anti-circumvention provisions in it which i think could chill legit mate research into security holes. i think these are things way on the mind of some i think legit mate researchers making the i.o.t. work more efficiently. a lot of companies i think have kind of embraced external researchers so they have bug bounty programs. like google and facebook and a lot of their companies that will pay researchers if you find holes in their code and work with them to get them addressed in a meaningful way, i think that's a positive trend. i think there's been some research companies that do that do tend to have better security
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results. now, can any one of these guys who has a new connected whatever, you know, can they afford that sort of thing? maybe not. it may not be scalable for a lot of devices. but i think for a lot of companies, it does make sense to encourage folks to come to them with problems. >> that brings us to standards. there's no security standards where you can say this product meets certain security requirements and so we can allow it into the market. and i think s.a.e. is developing something for the connected car. enthil: our your health care or fitbit device. it will evolve with different verticals and different devices. justin: there are security standards and interoperability standards which we have not talked by with which is a concern. if i buy the samsung smart hub
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or h.g.c. smart hub for my house, if i have a smart bosch washing machine, will they talk to each other? will it be an insentive for pushing me to having the all-h.t.c. connected home? a competition lawyer but this is something we need to think about. the basic infrastructure for these sort of things can be really expensive. if i have an h.t.c. home which only has h.t.c. plugs in the wall which has connectivity, i think people would, again, wouldn't know what to expect when they buy a smart home these days. that will be another challenge how all these devices with talk to each other. because right now there's -- unlike the web which is built on open standards -- you can go to any website you want, that's kind of competing proprietary standards in the i.o.t. space, they're evolving and could evolve in interoperable ways.
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there's uncertainty right now how that will end up. senthil: even with common protocols, google has thrown out weave. qualcomm set up, you know, a consortium with a bunch of companies but they're still discreet. they still don't talk to each other. it doesn't comprise with most of the ecosystem. kate: you touched on this on whether this would be an incentives to create a closed platform. how big of a concern is that? justin: i'm not -- i have not done anything on the competition side. i can see an economic incentive. you want buy-in. you want everybody to buy as major products you want to i can see an incentive not talking to other products and the countervailing example would be, then maybe if you try to make it too closed then people won't adopt it. i think that's probably something that folks are
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resting with right now how to -- those two competing concerns. senthil: to interoperability, the security piece, again. now you have two, three different systems talking to each other so they have to, you know, establish a level of trust between that mesh network for them to be able to talk to each other. again, we call to that main point of, these devices need to be secure before, you know, they're deployed on a wide scale. today it's a very different field, i.o.t. there is not of connected pill box or connected water bottles. i can remember that stuff. i don't need a connected device. the bluetooth pregnancy test. i think as these cases become more mature and we actually see valuable use of these i.o.t. devices, that's when interoperability needs to
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absolutely happen. kate: it's critical. justin: sorry. one little thing. that message is probably the most important message. step one, get security. and keep getting security rights. it's a constant struggle. kate: well, gentlemen, that's all the time we have for today but i thank you for both of your comments. that was terrific. so i appreciate your time. take care. [applause] kate: y'all can step off now. and i'd like to turn things back over to close it out. >> thanks, kate. thanks, everyone. this brings us to the end of our program this morning. on behalf of "the hill" and our sponsor, visa, i'd like to thank the live audience joining us and those who tuned in on the live stream. the full event video will be available on shortly. thanks, everybody, and have a great day.
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kapp kapp [captions copyright national cable satellite corp. 2016] -- appingscappings [captioning performed by the national captioning institute, which is responsible for its caption content and accuracy. visit]
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>> and we'll take you back live
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to the floor of the u.s. house shortly. gaveling in 3:30 eastern time. debating measures dealing with opioid addiction. proposals to help veterans with addiction and good samaritan laws for people who intervene in drug overdoses. also, drug trafficking measures d allowing furloughed police carrying concealed weapons. and the kentucky primary a week away and tonight hillary clinton is holding a rally in louisville. we'll take you live there starting at 6:15 p.m. eastern tonight over on c-span2. at 10:00 we'll be live with the bernie sanders campaign in salem, oregon. the oregon presidential primary is also a week today. today, west virginia is holding its primary. we talked to a reporter earlier about what to expect. >> david is a political reporter for the charleston gazette mail in west virginia. what's expected today and who will come up on top according to polling? guest: well, as we're looking at
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the mt.ial race, i would expect a big victory for donald trump o is -- who's led by significant margins in every oll. he's looking at a big victory although on the republican side, the process is a little bit confusing, that you do vote for a presidential candidate but that vote is pretty much entirely symbolic. farther down the ballot, republican voters will choose the specific delegates to the republican national convention. and those votes, they'll choose i think 22 of them, each open court. those votes are the ones that actually matter. but mr. trump has a full slate f delegates. and i think he can win 31 out of the 34 possible delegates.
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over the on democratic side, probably going to be much closer. bernie sanders has led most of the polling recently although there haven't been that much polling. i think just two polls or so in the last two months. and they both been within, i would say five to eight points. so he's probably a slight favorite, but it's anyone's guess over on the democratic side. host: what do you think are the driving issues in west virginia and who they'll choose? guest: well, the polling industry is a huge issue here in west virginia. all three candidates had campaign rallies here last week. hillary clinton and bill clinton both saw big protests at the campaign events they had in southern west virginia. protests are partly organized by
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the coal industry but a lot of people upset over comments she made a month or two ago where in a question about -- in a question about what was going to happen to kind of lower income white workers, she talked about her plan to transition away from coal and to reinvest in coal communities with a multi-billion plan but she also said we're going to put a lot of coal miners and a lot of coal companies out of business and that did not go well here. when donald trump was in town, much of his rally was spent talking about how much he loves coal miners and he's going to put coal miners back to work. although he doesn't have any plan how to do so but he did promise to do so. i guess despite most every
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industry analysis which says that no, the coal industry is not going back to boom times in west virginia. host: and even mr. trump getting endorsements came out on stage with a hard hat, if i remember. guest: yeah, the leadership of the state coal association came out to -- for a little photo on on stage with mr. trump and handed him a hard hat. he's saying the shoveling and the crowd went wild. behind him during his speech -- miners and they waved trump digs coal signs. that's absolutely a driving issue in the election.
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we've got a 10-day early voting period and they are way up. the highest we've ever seen. 106,000 people have already voted, which is close to 10% of the voting population. that was like way back in 2008. that was only 66,000 people. so an increase of 40,000 over the last time we saw a contested primary in the presidential race here in west virginia. host: that was david gutman talking about today's primary and the importance of >> madam secretary, we proudly give 72 of our delegate votes to the next president of the united states.
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>> the campaign 2016 bus continues its travels to honor winners from the student cam competition. it made a trip to cherry high school east in new jersey to recognize six-time student cam winner for her second prize video "when the house becomes a home ", madeline was honored in front of her classmates, community members. the bus traveled to west scranton intermediate school in pennsylvania to honor eighth graders for their second prize winning video "national immigration issues. during the ceremony, they
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donated $500 of their $1,500 winnings a local charity. following this event, the bus drove to quinton township middle school in new jersey, "the next big problem." over 250 classmates, teachers, family members and elected officials, including congressman leonard lance, joined in the ceremony for zachary. a special thanks to our cable partner comcast for helping coordinate these community visits. and you can view all the winning documentries at >> we'll take you back to the floor of the u.s. house of representatives back at 3:30 eastern time, debating measures today dealing with opioid addiction as well as drug trafficking and law enforcement. a number of proposals to help veterans with opioid addiction and also a good samaritan law for people who intervene in drug overdoses. plus, prosecuting drug traffickers and allowed furloughed police to continue
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carrying their concealed weapons. the speaker pro tempore: the house will be in order. pursuant to clause 8 of rule 20, the chair will postpone further proceedings today on motions to suspend the rules on which a
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recorded vote or the yeas and nays are ordered, or on which the vote incurs objection under clause 6 of rule 20. record votes on postponed questions will be taken later. for what purpose does the gentleman from florida seek recognition? >> mr. speaker, i move the house suspend the rules and pass senate bill 2755. the speaker pro tempore: the clerk will report the title of the bill. the clerk: senate 2755, an act to provide capitol flown flags to the immediate families of firefighters, law enforcement officials, members of rescue squads or ambulance crews, or public safety officers -- officers killed in the line of duty. the speaker pro tempore: the gentleman, mr. nugent and the gentleman from california, mr. pascrell each will control 20 minutes. mr. nugent: i ask that all members have five legislative days to revise and extend their remarks and include extraneous
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matter in the record on the consideration of the bill. the speaker pro tempore: without objection, so ordered. mr. nugent: i yield myself such time as i may consume. the speaker pro tempore: the gentleman is recognized for such time. mr. nugent: thank you, mr. speaker. i rise today in support of the senate bill 2755, the fallen heroes flag act. the bill before us would allow members of congress to honor our heros with the united states flag flown over this capitol. these brave individuals include firefighters, law enforcement officers, members of rescue squads and ambulance crews. the measure gives us the opportunity express our nation's gratitude toward those who have answered the call to serve and protect our communities. our nation's flag flown in their honor would also include congressional certificates signed by the speaker of the house an the individual representative or the president pro tem of the senate and the senator providing the flag to the family. when
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when most people are running away from danger, our nation's first responders runs towards it. whether it's a firefighter rushing into a burning building, an e.m.t. responding at high speed to save someone's life or a police officer pursuing a routine traffic stop, the job puts these individuals in harm's way on a daily basis. as our local communities well know all too well, in far too many cases, brave men and women paid the local sacrifice to keep us safe in america. i stand here today with my colleagues to thank each responder for their service and to the dedication to their communities. hey answer our calls for help. as an institution of this nation and as a nation, it's a right for us to remember the sacrifice and honor these individuals do for american families. as a 38-year veteran of law enforcement myself, it's a special honor to be able to
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stand here today and usher this legislation forward. i want to thank all those who helped make this possible, and i reserve the balance of my time. the speaker pro tempore: the gentleman from florida reserves the balance of his time. for what purpose does the gentleman from new jersey seek recognition? mr. pascrell: good afternoon, mr. speaker. i yield myself such time as i may consume. the speaker pro tempore: the gentleman is recognized for such time. mr. pascrell: i thank my friend from florida, former sheriff himself. i rise today in strong support of s. 2755, the fallen heroes flag act of 2016. i want to thank, also, congressman peter king, who has been a strong supporter of the first responder community, and for championing this issue for many, many years. want to thank senator roy blunt and senator chuck shumer for moving this bill through the -- senator chuck schummer for moving this bill through
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the senate. and this bill would allow flags flown over the united states capitol to members who are killed in the line of duty as no cost to the family. our first responders make tremendous sacrifices to keep our communities safe. should one of those brave men or women make the ultimate sacrifice, the least we can do to recognize their contributions to society, to show our gratitude for their service and express our sympathy to their families, for the loss, is presented with a flag flown over the united states capitol. this bill has the strong support of the national fraternal order of police and sergeant's benevolent association. i urge my colleagues to support swift passage of this bipartisan legislation so we can send it on to the president for his signature. mr. speaker, as the co-chair of
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law enforcement issues in the congress, i cannot support this enough. this is a very important piece of legislation that will do a lot in terms of good will and i yield back the rest of my time. the speaker pro tempore: the gentleman from new jersey yields back the balance of his time. the gentleman from florida is recognized. mr. nugent: mr. speaker, i want to thank the gentleman from new jersey for your support. we in law enforcement and i still say we in law enforcement do appreciate it. anytime congress reaches out and does something positive for our law enforcement families even though it's after the fact -- this is one of those times where as sheriff i had to preside over in the line of duty deaths. as a rookie police officer outside of chicago, my first year on the job, one of the guys i went to the academy with was killed, shot and killed. i moved to florida and became a deputy sheriff and rose up
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through the ranks as sheriff. and one of the things that i always worried about as a ther and as a husband was, what am i leaving to my family? how are they going to be taken care of in the future? and today, you know, in this -- what's going on in this country today in regards to belittling law enforcement and, trust me, we make mistakes and i think that reasonable people understand that. but when you condemn a whole profession, it's on conscionable and i think this is the type of things that we need to do and i do appreciate and this is very bipartisan in nature. it's really lifting up all of our first responders. we think back to 9/11 when those firemen and police officers rushed in to the twin towers and those that lost their lives as others were leaving the towers to safety.
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they did the unthinkable and that is to rush into a burning building or rush in somewhere where they know san armed intruder and they do it -- is an armed intruder and they do it on a daily basis. they don't ask much. but us, members of congress, really stand up for them and their families by this simple act. this is not a huge, huge thing, but i tell you what. to a grieving family, it is a small token of the appreciation that the united states of america, this congress and the senate can bestow on a family at their deepest sorrow. it's not going to bring back their loved one, but i tell you, they're going to look at that flag and remember the allen and how great a person they were. and so it's not just what we do oday, it is really about
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what's happened -- and the gentleman from new jersey talked about the senate and mr. king from this house from new york moved this legislation through. it has been a pleasure to stand here today, to come here today and talk for all those that can't talk for themselves, they can't speak for themselves. i said 38 years in law enforcement was probably the best time of my life because you actually were doing something and protecting people on a regular basis. and i can't think of a greater honor than to fly a flag of this nation over this capitol and give that to the grieving family of a fallen first responder. and so, mr. speaker, knowing that this institution is behind them so stands the american people. so i urge my colleagues to support this legislation, and i
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yield back the balance of my time. the gentleman from florida yields -- the speaker pro tempore: the gentleman from florida yields back the balance of his time. all time having expired on this legislation, the question is will the house suspend the rules and pass senate 2755. those in favor say aye. those opposed, no. in the opinion of the chair, 2/3 having responded in the affirmative, the rules are suspended, the bill is passed, and without objection the motion to reconsider is laid on the table.
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the speaker pro tempore: for what purpose does the gentleman from florida seek recognition? >> mr. speaker, i move to suspend the rules and pass the manager's amendment to h.r. 063, as amended. the speaker pro tempore: is the gentleman calling the bill up, as amendd? mr. miller: yes. the speaker pro tempore: the clerk will report the title of the bill. bill to : h.r. 4063, a improve the use by the secretary of veterans affairs of opioids in treating veterans, to improve patient advocacy by the secretary, and to expand the availability of complementary and integrative ealth, and for other purposes. the speaker pro tempore: pursuant to the rule, the gentleman from florida, mr. miller, and the gentleman from north carolina, mr. butterfield, each will control 20 minutes. the chair now recognizes the gentleman from florida. mr. miller: mr. speaker, i ask unanimous consent that all members may have five legislative days to revise and and any ir remarks any extraneous material to
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their remarks. -- and add any extraneous material to their remarks. the speaker pro tempore: without objection. mr. miller: mr. speaker, i yield myself such time as i may consume. the speaker pro tempore: the gentleman is recognized. mr. miller: i rise in support to the manager's amendment to , the 63, as amended jason simcakoski promise act. our nation's service members transition from military life to civilian life, they carry with them the skills, the experiences and memories in relationships that will last a lifetime. unfortunately, many of them also carry significant pain as a result of injuries they incurred to service of this great nation. veterans in general experience chronic pain at a higher rate than their nonveteran counterparts. what's more chronic pain is one of the most frequent conditions facing the veterans of iraq and of afghanistan. effectively managing this pain,
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which offer occurs alongside a number of other co-morbid conditions is a challenge that the department of veterans affairs has been increasingly turning to opioid-based medications to meet that challenge. while opioids when used effectively can be used to treat pain, medications are extremely high risk and unfortunately v.a.'s own research has found that veterans are at an increased risk for many adverse outcomes that may accompany open yode use, including substance -- oipyode use, including substance abuse, -- opioid use, including substance abuse. and opioid use to manage veteran pain is alarming. according to a cbs news report, the number of opioid prescription data written by v.a. providers rose an
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astonishing 259% from 2002 to 2013. during that same time period, v.a.'s total patient population increased only 29%. the sad reality behind an overreliance on opioids became apparent at the v.a. medical center in toma, wisconsin, last year. in response to a series of complaints made in may of 2011 and 2012, the v.a. office of inspector general conducted a review of alleged inappropriate prescribing of controlled substances and abuse of authority at the toma v.a. medical center. the i.g. found that the number f opioids prescribed was, as i quote, at considerable variance, end quote, with the other v.a. medical facilities in that region and was a cause for, and i quote, potentially
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serious concerns, closed quote. it's no wonder that the veterans being treated in toma commonly referred to it as candy land and to the facility chief of staff as the candy man. jason simcakoski was one veteran who was being treated by the toma v.a. medical center. in august of 2014, jason died from the combined effect of the multiple prescription medications he received as an in-patient. he put his trust in a system that ultimately failed him. he left behind a young daughter family, some who are with us today. unfortunately, the failures in toma, the failures that led to jason's death are not isolated d there are countless others just like him in the v.a.
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across this country. chronic pain and the conditions accompanying are undoubtedly complex and concerns about an overreliance on opioids are not unique to the department of veterans' affairs. but v.a. alone has a responsibility to treat our nation's most rehoik citizens, meaning v.a. has a unique responsibility to act responsible. the bill before us would help the department do just that, by improving and expanding opioid safety initiatives, strengthening the v.a.-department of defense joint working group, mandating v.a. medical facilities,ties close information to state controlled substance monitoring programs, and requiring v.a. reviewte and use of open yoids among veteran tissue opioids among veteran
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patients. it would the department and d.o.d. to update their guidelines for the management of opioid therapy to reflect the late oast of--- of medical practices. it would direct v.a. to require that every physician who prescribes opioids have training on safe practices and every v.a. facility has a designated pain management team. it would further require v.a. to maximize the availability of food and drug administration approved opioid receptor antigens to ensure that veterans most at risk of opioid overdose have access and training on potentially life-saving drugs that can counter the devastating effects of an open yode overdose. i'm grateful to the vice chairman of the full veterans
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affairs committee, gus bilirakis, for sponsoring this legislation and i would urge all of my colleagues to join me in supporting it. with that,ry e-- i reserve the balance of my time. the speaker pro tempore: the gentleman if florida reserves. for what purpose does the gentleman from north carolina seek recognition? >> i ask permission to manage the time on this bill on our side. the speaker pro tempore: the gentleman is recognized for 20 minutes. mr. butterfield: i'm going to yield myself such time as i may consume. the speaker pro tempore: the gentleman is recognized. mr. butterfield: i rise in support of h.r. 4063 as amended, the jason simcakoski promise act. i'd like to thank my friend from florida, the vice chair of the committee, congressman gus bilirakis, for introducing this bill and for his passionate leadership on this very important issue. mr. speaker, i also would like to take a moment to thank chairman miller for his extraordinary leadership on this bill and on issues that pertain to veterans generally.
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thank you so much mr. chairman for all of your work. in fact the rumor is among our colleagues that you run the most bipartisan committee on capitol hill and i thank you for your leadership. the epidemic of opiate addiction and deaths is a national problem. it is a public health crisis, mr. speaker, that affects constituents living in all of our districts and all of our states. opiate use dised orer is a chronic, relapsing disease of the brain, yet the stigma associated with opioid use disorder keeps people from seek, accessing, or maintaining treatment. in 2015, according to "the new york times," over 47,000 people died from drug overdose. that's 125 americans each day who lost their lives due to addiction or abuse. of these, more than 61% involve opiates. across the country, mr. speaker,
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nearly 260 million prescriptions are written for opiates, enough, according to the centers for disease control, for every american adult to have their own bottle of pills that can be highly, highly addictive. in my home state of north carolina, fatal drug overdoses ave jumped 75% since 2002. according to an article in february from the "charlotte observer" nearly half of the accidental drug overdose deaths for associated with prescriptions that had been filled within 60 days of death. it is estimated that north carolina has spent over $582 million in health care costs, stemming from opiate abuse. this is nearly $59 for each man, woman, and child in my home state of north carolina. this is a health care problem,
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mr. speaker, that affects all levels of our society. one of the main drivers is the overprescription of opiates to manage pain. veterans are at an even greater risk. the statistics on veterans experiencing chronic pain are absolutely staggering. over 50% of all veterans enrolled and receiving care at v.a. medical facilities experience chronic pain, with over half a million veterans managing pain with prescribed opiates. and compared to the general population, veterans are prescribed opiates as a much, much higher rate. but there's a growing awareness that the long-term prescription of opiates to manage chronic pain can have severe and sometimes tragic, yes, tragic, consequences. it's been reported that veterans, our beloved veterans, are twice as likely to die from
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accidental overdose compared to nonveterans. as a member of congress, that represents the nation's most military friendly state and we like to say that all the time and as an army veteran, as i am myself, i am alarmed and committed to bringing about a solution. but addressing this crisis will not be easy and the veterans affairs committee members know that well, it's not going to be easy. it will take the work of all of us working together, it will take education and research into more effective and less aticketive ways to treat chronic pain. it will take the combined work of all of our states and the federal government to address what the centers for disease control in our country -- let me try that again. it will take the combined work of our et -- of our states and the federal government to address what the c.d.c. has termed the worst drug addiction
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epidemic in the country's history, end of quote, and the chief medical officer of my state's medical board has called it, quote, an unequivocal health crisis. this bill, mr. speaker, we're debating today marks a major step forward and it will go a very long way in helping to lessen this public health emergency. thank you, mr. speaker, i will reserve the balance of my time. the speaker pro tempore: the gentleman from florida reserves the balance of his time. the gentleman from florida is recognized. mr. miller: i yield to the vice chairman of the committee, someone who has been a stalwart on this and many other veteran issue, mr. bilirakis for five minutes. the speaker pro tempore: the gentleman is recognized for five minutes. mr. bilirakis: thank you, mr. speaker. i thank the chairman and ranking member. it.eciate
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i rise in support of my bill h.r. 4063, the promoting responseable opioid management and incorporating scientific expertise, or the jason simcakoski promise act. this informed bill helps us fulfill our promise to pass current and future veterans, our troo american heroes, mr. speaker. i introduced the promise act in response to the tragic death of marine corps corporate jason simcakoski at the toma, wisconsin, v.a. facility. jason's death, caused by mixed drug toxicity and the combination of various medicines, was an avoidable tragedy. my colleagues and i work with local veterans, veterans organizations, and other stake holders to get this done right. i'm honored to discuss the need for this bill in the presence of jason's family who join us in the capitol on this memorable day. we could not do it without them. the promise act can't bring jason and others like him back.
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but like jason's family expressed to me, this will ensure future veterans get the treatment they need for their physical and invisible wounds. currently, v.a. treatment for chronic pain is largely the prescription of open yoids without consideration of a patient's personal history or preferences. unfortunately, there's a lack of data on veteran opioid use. there are also inefficiencies in the v.a. identifying abuse of open yodes and with patient followup to determine effectiveness of these drugs on a case-by-case basis. the promise act is the congressional action needed to rectify these problems. the promise act increases safety for opioid therapy and pain management, ensures more transparency at the v.a. and encourages more outreach and
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aware ovepbs the patient advocacy program for veterans. my bill also acknowledges that v.a. patient services do not stop at the initial consultation. it requires the v.a. to maintain realtime tracking of data on opioid use to help prevent overmedication and misuse or overuse of medication. i want to thank again speaker ryan, representative butterfield, of course, our great chairman, mr. miller from florida, real good friend of mine. representative kind as well, and representative rice and many others who supported this bill and worked to make this happen. i urge my colleagues to support this bill, uphold our commitment and promise to those that pay the ultimate sacrifice. i thank you, mr. speaker. i yield back. the speaker pro tempore: the gentleman yields back this -- the gentleman from north
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carolina is recognized. mr. butterfield: i yield to mr. kind, ron kind of wisconsin, such time as he may consume to speak to this bill. thank you, mr. kind, for coming to the floor. there's not a member of this body who works harder than you on issues pertaining to veterans. the speaker pro tempore: the gentleman from wisconsin is recognized for such time as he may consume. mr. kind: thank you, mr. speaker. i thank my good friend from north carolina for yielding me this time. mr. speaker, i rise in strong support of the jason simcakoski promise act. jason was a veteran who unfortunately saw his life end way too soon while receiving treatment at the toma v.a. medical center in the heart of my congressional district. i want to thank subcommittee chairman bilirakis for the leadership and support he's shown this legislation. he's been a joy to work with. i want to thank chairman miller for the leadership you provided the committee and the concern and attention you've given to our veterans throughout our country.
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i want to thank representative butterfield and other members of the committee for the strong bipartisan support that this legislation enjoys on the floor today. jason was born in stevens point, wisconsin, in 1978 in my congressional district fpble he's the son of marvin and linda simcakoski. he's a graduate of stevens point high school. shortly after his graduation he, joined the marine corps where he reached the rank of corporal, receiving the sea service deployment ribbon, the first star certificate of commendation, rifle sharp shooters badge, good conduct medal. he was honorably discharged in february of twoosm he loved bag marine and he was proud to serve his country. he married heather in 2010 in stevens point and they had a beautiful daughter. i'm proud that many members of jason's family came out to see passage of this bill today.
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his mother linda, his wife heather, his daughter ania, his father marvin who is also intimately involved in helping draft this legislation and see it through was unfortunately unable to attend but i commend all of them. this is how legislation is meant to work. by reaching out to veterans' organizations, getting direct feedback from veterans themselves, their families, health care providers. we've known for some time we've had a pain management problem, not just in the v.a. system but throughout our entire health care system. this unfortunately came to light through numerous investigations at the tomah v.a. center over the course of the last few years which helped and precipitated the legislation we have before us today. their guiding star in all of this, jason's family, and based on the numerous conversations that i had with them, that they had with chairman bilirakis and even speaker ryan is they wanted
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to see the care and treatment that our veterans receive be enhanced, no veteran, no family, would have to go through or encure what -- endure what they did while jason was receiving pain management and under opioid medication at tomah. this legislation, i think, advances the bar. i don't think anyone can be here with absolute certitude and promise the family or future veterans that mistakes won't happen in the future but i think what's contained in this legislation definitely is a significant step in the right direction with the understanding that more work is needed. the bill would require reviewing the updid of the v.a.'s clinical practice guideline for management of opioid therapy and chronic pain that requires all opiate prescribers at the v.a. to have enhanced pain management and safe opioid prescribing information and training. it requires realtime tracking of on opioid use of veterans to prevent overmedication.


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